Agenda of Council Controlled Organisation Oversight Committee

Terms of Reference

Responsibilities

The purpose of the committee is to:

· have a general overview and insight into the strategy, direction and priorities of all Council Controlled Organisations (CCO)

· set policy relating to CCO governance

· approve CCO Statements of Intent

· monitor performance of CCOs and other entities in which the council has an equity interest (such as CRLL, Tāmaki Regeneration Company and Haumaru Housing).

Key responsibilities include:

· monitoring the financial and non-financial performance targets, key performance indicators, and other measures of each CCO and the performance of each organisation

· advising the mayor on the content of the annual Letters of Expectations (LoE) to CCOs and Ports of Auckland Limited

· exercising relevant powers under Schedule 8 of the Local Government Act 2002, which relate to the Statements of Intent of CCOs

· exercising relevant powers under Part 1 of the Port Companies Act 1988, which relate to the Statements of Corporate Intent for port companies

· exercising Auckland Council’s powers as a shareholder or given under a trust deed, including but not limited to modification of constitutions and/or trust deeds, granting shareholder approval of major transactions where required, exempting CCOs, and approving policies relating to CCO and CO governance

· approval of a work programme which includes a schedule of quarterly reporting of each CCO to balance reporting across the meetings.

Powers

(i) All powers necessary to perform the committee’s responsibilities.

Except:

(a) powers that the Governing Body cannot delegate or has retained to itself (section 2)

(b) where the committee’s responsibility is limited to making a recommendation only

(ii) Power to establish subcommittees.

Code of conduct

For information relating to Auckland Council’s elected members code of conduct, please refer to this link on the Auckland Council website - https://www.aucklandcouncil.govt.nz/about-auckland-council/how-auckland-council-works/elected-members-remuneration-declarations-interest/Pages/elected-members-code-conduct.aspx

Auckland Plan Values

The Auckland Plan 2050 outlines a future that all Aucklanders can aspire to. The values of the Auckland Plan 2050 help us to understand what is important in that future:

Exclusion of the public – who needs to leave the meeting

Members of the public

All members of the public must leave the meeting when the public are excluded unless a resolution is passed permitting a person to remain because their knowledge will assist the meeting.

Those who are not members of the public

General principles

· Access to confidential information is managed on a “need to know” basis where access to the information is required in order for a person to perform their role.

· Those who are not members of the meeting (see list below) must leave unless it is necessary for them to remain and hear the debate in order to perform their role.

· Those who need to be present for one confidential item can remain only for that item and must leave the room for any other confidential items.

· In any case of doubt, the ruling of the chairperson is final.

Members of the meeting

· The members of the meeting remain (all Governing Body members if the meeting is a Governing Body meeting; all members of the committee if the meeting is a committee meeting).

· However, standing orders require that a councillor who has a pecuniary conflict of interest leave the room.

· All councillors have the right to attend any meeting of a committee and councillors who are not members of a committee may remain, subject to any limitations in standing orders.

Independent Māori Statutory Board

· Members of the Independent Māori Statutory Board who are appointed members of the committee remain.

· Independent Māori Statutory Board members and staff remain if this is necessary in order for them to perform their role.

Staff

· All staff supporting the meeting (administrative, senior management) remain.

· Other staff who need to because of their role may remain.

Local Board members

· Local Board members who need to hear the matter being discussed in order to perform their role may remain. This will usually be if the matter affects, or is relevant to, a particular Local Board area.

Council Controlled Organisations

· Representatives of a Council Controlled Organisation can remain only if required to for discussion of a matter relevant to the Council Controlled Organisation.

1 Apologies

At the close of the agenda no apologies had been received.

2 Declaration of Interest

Members are reminded of the need to be vigilant to stand aside from decision making when a conflict arises between their role as a member and any private or other external interest they might have.

3 Confirmation of Minutes

That the Council Controlled Organisation Oversight Committee:

a) confirm the ordinary minutes of its meeting, held on Tuesday, 24 August 2021, as a true and correct record.

4 Petitions

At the close of the agenda no requests to present petitions had been received.

5 Public Input

Standing Order 7.7 provides for Public Input. Applications to speak must be made to the Governance Advisor, in writing, no later than one (1) clear working day prior to the meeting and must include the subject matter. The meeting Chairperson has the discretion to decline any application that does not meet the requirements of Standing Orders. A maximum of thirty (30) minutes is allocated to the period for public input with five (5) minutes speaking time for each speaker.

At the close of the agenda no requests for public input had been received.

6 Local Board Input

Standing Order 6.2 provides for Local Board Input. The Chairperson (or nominee of that Chairperson) is entitled to speak for up to five (5) minutes during this time. The Chairperson of the Local Board (or nominee of that Chairperson) shall wherever practical, give one (1) day’s notice of their wish to speak. The meeting Chairperson has the discretion to decline any application that does not meet the requirements of Standing Orders.

This right is in addition to the right under Standing Order 6.1 to speak to matters on the agenda.

At the close of the agenda no requests for local board input had been received.

7 Extraordinary Business

Section 46A(7) of the Local Government Official Information and Meetings Act 1987 (as amended) states:

“An item that is not on the agenda for a meeting may be dealt with at that meeting if-

(a) The local authority by resolution so decides; and

(b) The presiding member explains at the meeting, at a time when it is open to the public,-

(i) The reason why the item is not on the agenda; and

(ii) The reason why the discussion of the item cannot be delayed until a subsequent meeting.”

Section 46A(7A) of the Local Government Official Information and Meetings Act 1987 (as amended) states:

“Where an item is not on the agenda for a meeting,-

(a) That item may be discussed at that meeting if-

(i) That item is a minor matter relating to the general business of the local authority; and

(ii) the presiding member explains at the beginning of the meeting, at a time when it is open to the public, that the item will be discussed at the meeting; but

(b) no resolution, decision or recommendation may be made in respect of that item except to refer that item to a subsequent meeting of the local authority for further discussion.”

Council Controlled Organisation Oversight Committee

21 September 2021

Quarter Four Performance Reports 2020/2021 Substantive Council-controlled Organisations

File No.: CP2021/13552

Te take mō te pūrongo

Purpose of the report

1. To receive a high-level summary of the substantive Council-Controlled Organisation (CCO) fourth quarter reports, for the period ending 30 June 2021.

Whakarāpopototanga matua

Executive summary

2. Under Auckland Council’s accountability framework, each substantive CCO must provide a quarterly report to the Council-Controlled Organisation Oversight Committee. The reports for the fourth quarter of 2020/2021 are contained in Attachments A to E and are measured against the updated (previous) 10-year Budget and the 2020-2023 Statements of Intent (SOIs).

Eke Panuku

3. Eke Panuku reported a $12.5m favourable net direct expenditure result (including the managed property portfolio). Capital expenditure delivered was $78.2m against a budget of $100m. Note that of this capital variance of $21.8m, $15.2m is committed to property acquisitions that are not recognised under accounting treatment at year end.

4. Eke Panuku achieved 16 of their 19 statement of intent performance targets this year. Two targets were not met and one was not measured. Of the two targets that were not met, transform and unlock net sales were $21 million against a target of $39 million, due to a significant property sale that did not proceed. Secondly, the performance target for the percentage of Aucklanders who visited the city centre waterfront in the last year was narrowly missed due to Covid-19 lockdowns and the impact of physical works around the area.

Auckland Unlimited

5. Auckland Unlimited’s performance has been generally very good. While several indicators have not been met, these are all the result of Covid-19 related impacts, particular in relation to visitation at institutions, venues not being able to host events, and impacts on construction activity.

Auckland Transport

6. Performance against targets is generally very good, with lower than predicted patronage on rail and rapid transit, and fewer cycle movements than expected. Both of these may reflect trends related to Covid-19 and (in the case of rail) the ongoing effects of the KiwiRail track disruptions.

7. AT identifies a number of risks for the coming period, many related to Covid-19. These include an increase in deaths and injuries as higher traffic volumes resume, potential ongoing shortfalls in operational revenue from public transport, and bus driver retention.

Watercare

8. Good progress has been made over the year on key infrastructure projects, despite the impacts of Covid-19.

9. Auckland’s ongoing drought has had an impact on expenditure. These have, however, been offset by favourable revenue variances.

10. Watercare has successfully met 14 of its 16 SOI measures. The measures not met are sewerage overflows and real water loss from the reticulated system (leakage).

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Oversight Committee:

a) receive the fourth quarter reports of the substantive Council-Controlled Organisations, provided as attachments A to E of the report.

Horopaki

Context

11. Each substantive CCO must provide a quarterly report to the Council-Controlled Organisation Oversight Committee. They are required to:

· summarise the CCO’s performance against the approved budget and agreed targets in the 10-year Budget and statement of intent (SOI)

· provide a forecast of the CCO’s performance

· identify the cause of major variances

· highlight major achievements for the quarter

· signal any potential or developing issues.

12. The reports for the fourth quarter of 2020/2021 are contained in attachments A to E.

Tātaritanga me ngā tohutohu

Analysis and advice

Eke Panuku

Financial performance

13. Eke Panuku, including the property portfolio it manages, reported a $12.5m favourable net direct expenditure result. Direct revenue for the year is $4.0m favourable to budget, due to Covid-19 related assumptions for reduced income, which have not fully materialised. Direct expenditure is $8.5m favourable compared to budget, due to decreased marina expenditure (due to the Covid-19 impact on the America’s Cup regatta) and reduced corporate and staff costs.

14. Capital expenditure delivered was $78.2m against a budget of $100m. Note that of this capital variance, $15.2m is committed to three property acquisitions that are not recognised under accounting treatment at year end. If these property acquisitions are taken into account, Eke Panuku can be said to have spent and committed $93.4m (93 per cent) of its capital budget at the end of the financial year. The remaining capital expenditure variance is $6.6m, largely due to timing of contamination payments to Waterfront development partners and a further delay in the PWA process in Northcote.

Performance indicators and other issues

15. Eke Panuku achieved 16 of their 19 statement of intent performance targets this year. Two targets were not met and one was not measured. Of the two targets that were not met, transform and unlock net sales were $21 million against a target of $39 million, due to a significant sale that did not proceed. Secondly, the performance target for the percentage of Aucklanders who visited the city centre waterfront in the last year was narrowly missed due to Covid-19 lockdowns and the impact of physical works around the area. The transform and unlock priority areas are all reported as on track.

Auckland Unlimited

Financial performance

16. Net direct expenditure has a favourable variance of $27.2m, reflecting the receipt of unbudgeted grants, delayed programmes expenditure and cost reductions. Direct revenue has a favourable variance of $15.3m, primarily due to receiving unbudgeted grants. Cancelled events and venue closures due to lockdowns has offset these to some extent. Capital delivery has an unfavourable variance of $3.9m, due to Covid-19 delays to the capital programme.

Performance indicators and other issues

17. Of a total of 22 statement of intent performance measures, 17 have met their targets at year end and five have not been met. Of the 17 that have met their targets, for seven of these the target was to set a baseline, and that baseline has now been established (and therefore the target met).

18. For the five performance measures that did not meet their targets, Covid-19 is identified as the key reason, due to:

· events being cancelled or postponed (contribution to regional GDP from major events and business events attracted or supported; number of visitor nights resulting from an Auckland Unlimited intervention and; number of events achieve Carbon Zero (Auckland Unlimited delivered events – Diwali, Lantern, Pasifika and Tāmaki Herenga Waka Festivals));

· the impact of lockdowns on venue visitation (number of people who experience Regional Facilities Auckland's arts, environment and sports venues and events); and

· the impact of lockdowns on construction activity (value of capital improvements to Auckland Unlimited venues).

Auckland Transport

Financial performance

19. Auckland Transport’s capital delivery is $28m lower than budget, reflecting a range of timing challenges but also some cost savings. Nonetheless, significant progress has been made on significant network projects, such as the first stage of the Eastern Busway. Operational revenue is higher than budget, reflecting Waka Kotahi funding PT shortfalls. Overall, the net operating deficit position is favourable to budget, though this does reflect extra funding for AT in the emergency budget, and other aspects related to the pandemic context.

Performance indicators and other issues

20. AT’s performance overall has been excellent. It is worth noting that overall public transport patronage exceeded the (adjusted, lower) target but within that some of the component parts have not recovered as anticipated. Farebox recovery, rail patronage, and rapid transit boardings have all been affected by both the ongoing pandemic situation and KiwiRail works in 2020 which depressed numbers. These are only slowly recovering.

21. The other measure not achieved is cycleway movements, which AT attributes to increased working from home.

22. On the other hand, there has been strong progress with strategic projects, including Eastern Busway Part 1 and completion of the Puhinui Interchange. The Regional Fuel Tax programme is showing good progress, with many projects already complete or well-underway.

23. There are also promising signs in terms of delivery of cycling infrastructure, which should be a good basis for the expected increase in delivery in the 2021/22 Statement of Intent. Reinforcing what would be expected, AT has reported good growth on routes with recently delivered projects. The Innovating Streets and Pop-up programmes are both very active with multiple projects underway, and some major projects well-progressed, such as the Northwestern Dual Path designs, which are completed and ready for construction in 2021/22.

Watercare

Financial performance

24. Watercare’s net direct revenue is $33.5m favourable to budget. Increased direct expenditure is unfavourable to budget by $26.7m due to higher water production costs associated with managing Auckland’s historically low dam levels (additional treatment and energy costs of water from Waikato and alternative dam sources), drought management costs and higher than budgeted maintenance costs. These increased costs are partially offset by favourable revenue variances of $120.2m due to higher than budgeted infrastructure growth charges (IGCs) associated with new developments.

25. Capital delivery was $764.8m against a budget of $710m. The overspend mainly relates to the Waikato 50MLD project to secure additional water supply ($16.4m), and a higher spend on water service connections and meters to address reported network leaks ($16.3m).

Performance measures and other issues

26. Despite the impacts of Covid-19, Watercare has made good progress with infrastructure projects during the fourth quarter, notably the Waikato 50 plant and works to support the operation of the tunnel boring machine for the Central Interceptor. Delay continues to be forecast for the Hunua 4 project due to the issue with grout egress. However, water supply is not affected. Delay to the Whenuapai Redhills package continues to be noted.

27. Watercare has also updated its operational greenhouse gas reduction target to 50 per cent by 2030 aligned with Te Tāruke-ā-Tāwhiri, Auckland's Climate Plan. Government support for heavy electric vehicles to haul spoilage was successfully applied for (through the Low Emissions Vehicle Fund) and delivery is expected in early 2022.

28. Watercare has a total of 14 LTP measures and 16 SOI measures. Watercare met 14 of its 16 SOI measures. Attendance at sewerage overflows has increased to 63 minutes (target 60 minutes). Watercare indicated that they have put in place measures to address resourcing issues here and the July results are now within target. Real water loss from the reticulated system (a result of 13.69 per cent against a target of 13.0 per cent) continues to exceed targets. Watercare has adopted a new way of measuring this and staff will work with Watercare over the coming year to agree measures and targets.

29. The report notes the transitional agreement for Watercare’s service contract with Waikato District Council until there is clarity on the impact of the Three Waters reform. Watercare should still seek the council’s endorsement before any commitment is made to an operational contract (resolution FIN/2019/48).

30. The biggest risk to Watercare is a skills shortage for construction work, which is proving very challenging. Covid-19 is not only making immigration and international travel more difficult, it is also prompting many countries around the world to invest heavily in infrastructure projects as part of their economic recovery programmes. This means there is great competition for engineers, project managers and skilled construction workers around the globe. There is significant demand for engineers and experienced tunnel workers, with a number of large tunnelling projects underway across the Tasman Sea.

Tauākī whakaaweawe āhuarangi

Climate impact statement

31. The quarterly performance reports are a key tool to monitor the progress of each CCO in action on climate change. The CCOs quarterly reports contain commentary on activities relating to climate change. Two aspects of note are discussed below.

32. Auckland Transport’s report discusses a range of ways in which it is mitigating climate change through its projects. More broadly, it has undertaken a process to identify climate-related risks for its staff, customers and networks. It is expected that this, along with work on the Emissions Reduction Plan in the coming year, will see the prominence of climate issues increase through these reports.

33. With respect to Auckland Unlimited, funding for Auckland’s Climate Innovation Hub (CIH) has been approved via the Climate Lane of the Long-Term Plan (LTP). A draft model for Auckland’s CIH has been developed on the basis of a desktop research exercise analysing and understanding international climate change innovation hub models (e.g., Climate-Kic EU). Auckland Unlimited has started engaging key stakeholders to gauge interest of becoming a core partner. The Connective has been engaged to support Auckland Unlimited with the initial development of the Climate Innovation Hub.

34. Through the Low Emissions Vehicle Fund, Watercare successfully applied support for heavy electric vehicles to haul spoilage. Three trucks will be used to transport a minimum of 66,627 tonnes of spoil and avoid a minimum of 306 tonnes of CO2e (79 per cent less CO2 emissions than diesel trucks). These are the first road worthy heavy electric vehicles for the construction sector in New Zealand and is leading industry awareness and interest in pursuing such initiatives.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

35. Each CCOs quarterly report contains information on how they are contributing to the council’s outcomes and objectives.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

36. The governance of substantive CCOs is a responsibility delegated to the CCO Oversight Committee. We have not sought the views of local boards. CCOs provide six-monthly progress and performance reports to local boards. The quarterly reports also provide a summary of the engagement that CCOs have carried out with local boards during the quarter.

Tauākī whakaaweawe Māori

Māori impact statement

37. Each CCO reports on their contribution towards achieving Māori Outcomes in their quarterly report. Two aspects of note are discussed below.

38. Auckland Transport’s report outlines a significant programme of engagement with mana whenua on projects, te reo promotion (both on the transport network and internally within its organisation), and safety programmes.

39. Auckland Unlimited provided sponsorship for Tohunga Tūmau – a celebration of Māori kai, which was held on 1 July at Shed 10 in the Auckland CBD. The event also launched Kauta – a nation-wide digital platform housing Māori kai developers. Auckland Unlimited hosted key stakeholders at the event. Auckland Unlimited has also identified a supplier to provide bilingual signage and wayfinding for key facilities. The first phase of this relates to Aotea Centre, the Civic and Town Hall. Finally, it has developed an internal capability programme – Kete Akonga on Te Tiriti, Māori Arts and Culture – and this has delivered training sessions for all Art Gallery staff and volunteers.

40. Watercare is working with their key supply partners to achieve their targets with Māori businesses, and have increased engagement with iwi and man whenua, including in the Waikato. During 2020 and coupled with the pressures of Covid-19, iwi representation and engagement declined and Watercare are working with iwi to ensure that they are building sustainable relationships.

Ngā ritenga ā-pūtea

Financial implications

41. Each of the CCO’s quarterly reports contain information regarding their financial performance.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

42. Each of the CCOs quarterly reports contain information regarding their key risks and issues. Where these are particularly important to note, they are discussed above in the individual CCO sections.

Ngā koringa ā-muri

Next steps

43. This report is primarily for information purposes. The next quarterly reports (Quarter One, July to September 2021) will be provided to the CCO Oversight Committee in late 2021.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇩	Eke Panuku Quarter Four Report 2020/21	17
b ⇩	Auckland Unlimited Quarter Four Report 2020/21	39
c ⇩	Auckland Transport Quarter Four Report 2020/21 Chair cover letter	53
d ⇩	Auckland Transport Quarter Four Report 2020/21	55
e ⇩	Watercare Quarter Four Report 2020/21	71

Ngā kaihaina

Signatories

Authors

Edward Siddle - Principal Advisor

Chris Levet - Principal Advisor

Authoriser

Alastair Cameron - Manager - CCO Governance & External Partnerships

Council Controlled Organisation Oversight Committee

21 September 2021

CCO Review: Implementation Programme Update

File No.: CP2021/13283

Te take mō te pūrongo

Purpose of the report

1. To provide the monthly update on the implementation of the Council-controlled Organisations (CCO) Review (the Review).

Whakarāpopototanga matua

Executive summary

2. The Review investigated the effectiveness of the council’s CCO model; whether the council has adequate accountability measures and is using them effectively, and accountability to Māori and the public; and CCO culture.

3. There continues to be good progress overall implementing the recommendations of the Review. New group brand guidelines were approved by this committee in August 2021. Sixteen of the 64 recommendations are now fully implemented.

4. Implementation of 36 recommendations are underway and many are well advanced.

5. Recent progress has slowed on a few recommendations due to the operational prioritisation of the COVID-19 response.

Ngā tūtohunga

Recommendation

That the Council Controlled Organisation Oversight Committee:

a) receive the update on the implementation programme for the Council-controlled Organisations Review.

Horopaki

Context

6. The independent panel highlighted that their recommendations are interrelated and should be considered as a package. Implementation of recommendations is about improving accountability to the community and the council. The focus is on increasing collaboration and trust across the group.

Tātaritanga me ngā tohutohu

Analysis and advice

7. Sixteen of the 64 recommendations of the Review are now fully implemented.

8. Implementation is underway for 36 of the review 64 recommendations and many are well advanced.

9. Six recommendations have not progressed to or beyond scoping at this stage but will be initiated in 2021/2022.

10. Eight recommendations have a RAG status of Amber and one has a RAG status of Red, due to delay against timeframes.

11. The RAG status of the two recommendations that are part of the Better Faster Consents work (recommendations 17 and 18) has moved from ‘Amber’ to ‘Green’ reflecting the progress being made against the updated timeframe for this aspect of the programme.

12. As a result of the recent move to COVID-19 Alert Level 4, a delay in progress was reported by three recommendations due to a focus on the lockdown response and managing operational constraints. Monitoring of COVID-19 impacts on the Review implementation programme will continue.

Chart 1: Status of review recommendations

Recent progress

13. Recent progress on the implementation programme is summarised below. Commentary on each recommendation is provided in Attachment A.

Auckland Unlimited

14. Auckland Unlimited has established a relationship with Eden Park Trust. Together they are exploring joint operating models for Auckland’s four stadiums. Due to the commercial nature of these conversations, an update on the work is scheduled in a confidential workshop for this committee on 22 September 2021.

15. Auckland Unlimited is working with MOTAT to explore how the Review recommendation on bringing MOTAT into Auckland Unlimited might be implemented in practice.

Auckland Transport

16. Auckland Transport and council staff have established a joint project team to clearly delineate bylaw-making powers between the two organisations. Current and future state analyses have been completed and the next steps are to finalise the drivers for change and actions to be undertaken.

17. To streamline funding processes, the Waka Kotahi board has approved an increase in the threshold for Auckland Transport to approve National Land Transport Fund funding for its own projects from the current $5 million threshold to $15 million. A new Delegated Funding Agreement was signed in August 2021.

Eke Panuku

18. Eke Panuku provided more detail on its activities, and links between investments, deliverables and performance targets in its final Statement of Intent 2021-2024, approved at the August 2021 CCO Oversight Committee.

19. A Property Functions Framework is being developed by the council. The framework will include the roles, responsibilities and property management approaches in the council. The role of Eke Panuku with regard to non-service properties will also be considered.

Watercare

20. Watercare continues to support the overall development of the water strategy.

21. A joint council and CCO Asset Management Community of Practice has been established, convened by the council. A meeting of the group has been held during lockdown to coordinate and advance joint asset management planning.

Accountability

22. The water strategy and strategic stadium work are underway, which together with economic development, were the strategies recommended by the Review. Work is proceeding to identify improvements to the group strategic planning function and other prioritised topics where more strategic direction is needed by CCOs.

23. Visits have been scheduled for the CCO Oversight Committee to meet with each CCO in 2021. Visits to Auckland Transport, Auckland Unlimited and Eke Panuku are scheduled in October and November 2021.

24. New combined engagement plans across the four CCOs have been formally adopted by all local boards. The engagement plans include the work programme for each CCO in the local board area and the level of engagement with the local board expected for each project or activity. Staff are further developing a reporting framework that provides consistency across the CCOs.

25. CCOs are currently nominating staff to work with council staff on updating the no surprises policy and developing a protocol to support information requests between the governing body and CCOs.

Culture

26. This committee approved new group brand guidelines in August 2021 which were developed collaboratively across the council group. The guidelines set out how to use the pōhutukawa logo across the range of brands, services and facilities funded by the council. Updates on compliance with the guidelines will be reported to this committee annually.

Tauākī whakaaweawe āhuarangi

Climate impact statement

27. Climate impacts are considered through the implementation of individual recommendations.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

28. The council group is working collectively to implement the recommendations of the Review.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

29. Local impacts and local board views are considered when implementing individual recommendations.

30. CCOs are working with local boards to implement recommendations to improve local board engagement, implementation of local projects and community consultation (see recommendations 34, 6, 53).

Tauākī whakaaweawe Māori

Māori impact statement

31. The Review made seven recommendations to improve the use of mechanisms to ensure CCOs meet their obligation to Māori at governance, senior management and staff levels. Ngā Mātārae have been convening staff from council, CCOs and the Independent Māori Statutory Board secretariat to progress the recommendations.

32. Independent Māori Statutory Board and Tāmaki Makaurau Mana Whenua Forum secretariats are in the process of developing guidance material for the approval of the Board and Forum to explain their respective roles and how CCOs should engage with each entity.

33. All CCOs have undertaken work to align their plans that set out commitments to Māori to the new Kia Ora Tāmaki Makaurau Outcomes Framework.

34. The council/CCO chief executives group has initiated a quarterly meeting with the Independent Māori Statutory Board chief executive focused on Māori outcomes. The second hui is scheduled in September 2021. Staff supporting the Independent Māori Statutory Board and the Mana Whenua Kaitiaki Forum are scoping areas in their respective work programmes where they can work together and with CCOs.

Ngā ritenga ā-pūtea

Financial implications

35. There is no financial impact from the committee receiving this report on the implementation programme for the Review.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

36. Risks are reported to the steering group of the council/ CCO chief executives. The most significant risks identified are lack of budget, resources and organisational buy-in. Strong executive commitment and effective collaboration between the council and CCOs will mitigate these main risks associated with the implementation programme.

Ngā koringa ā-muri

Next steps

37. CCOs report on their contribution to implementing the Review in their quarterly reporting to the CCO Oversight Committee.

38. Updates on the Review programme will be provided to the CCO Oversight Committee at each meeting.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇩	CCO Review Implementation - progress by recommendation	93

Ngā kaihaina

Signatories

Author	Trudi Fava - CCO Programme Lead
Authoriser	Alastair Cameron - Manager - CCO Governance & External Partnerships

No.	Title	Page
a ⇩	Forward Work Programme	111

Council Controlled Organisation Oversight Committee

21 September 2021

Kōmiti Aromātai Whakahaere Kaupapa Kei Raro I Te Maru O te Kaunihera / CCO Oversight Committee
Forward Work Programme 2021

This committee deals with the performance monitoring of CCOs and other entities in which the council has an equity interest. The committee are to have a general overview and insight into the strategy, direction and priorities of all CCOs, set policy relating to CCO governance and approve the CCO statements of intent.

The full terms of reference can be found here: Terms of Reference - Agreed 12 November 2019

Area of work and Lead Department	Reason for work	Committee role (decision and/or direction)	Expected timeframes Highlight the month(s) this is expected to come to committee in 2021
Area of work and Lead Department	Reason for work	Committee role (decision and/or direction)	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
CCO Review Updates CCO Governance and External Partnerships	As per the CCO Review: Terms of Reference, agreed by the Governing Body in November 2019 (Resolution number: GB/2019/127), an independent review panel conducted a review of Auckland Council’s Substantive Council-Controlled Organisations. The recommendations from the CCO Review report were received by the Governing Body on 27 August 2020 (Resolution number: GB/2020/89). It was agreed that that the implementation team report on the programme and proposed approach timing to the CCO Oversight Committee within three months, and that progress reports on the programme implementation were to be provided to the CCO Oversight Committee every six months.	To receive updates on the implementation and progression of the 64 summary recommendations of the CCO Review Progress to date: A programme update was received in February 2020 The CCO Review was received by the Governing Body on 27 August 2020. An update by way of memorandum was provided in November 2020. An update was received in February 2021. An update by way of memorandum was provided in March 2021. An update was received in May 2021. An update was received in June 2021. An update was received in August 2021.
Liaison Councillor Updates CCO Governance and External Partnerships	Mayor Phil Goff has appointed a list of six CCO liaison councillors to attend the board meetings of the CCOs allocated to them, and report back to this committee.	To receive updates from the CCO Liaison Councillors. Progress to date: Principals and draft protocols for the liaison councillor role were agreed in February 2020 Updates were provided in September, October and November 2020. Updates were provided in September, October and November 2020. Updates were provided in May 2021. An update was provided in June 2021. An update was provided in August 2021.
Quarterly, Half-Year and Annual Reports CCO Governance and External Partnerships	Under the LGA and LGACA the council must regularly undertake performance monitoring of the CCO to evaluate its contribution to meeting its objectives, and the desired results identified in the SOI.	Receive quarterly reports, receive and adopt half yearly and annual reports. The CCOs will present to the CCO Oversight committee twice a year on their performance. Progress to date: First quarter reports were received for substantive council-controlled organisations in December 2019, and December 2020. Second quarter reports received for substantive council-controlled organisations in March 2020. Third quarter reports were scheduled for June 2020; however this meeting was cancelled due to COVID-19. Fourth quarter reports were received for substantive council-controlled organisations September 2020. Second quarter reports for substantive council-controlled organisations were received in March 2021. The Ports of Auckland Limited Interim Report for the six months ending 31 December 2020 were received in March 2021. Third quarter reports for substantive council-controlled organisations and POAL was received in May 2021. Fourth quarter reports for substantive council-controlled organisations and POAL will be received in September 2021.
Ports of Auckland - Statement of Corporate Intent CCO Governance and External Partnerships	Under legislation Ports of Auckland Limited must deliver annually a statement of intent not later than 1 month after the commencement of each financial year.	Seeking committee approval of final 2021/24 Ports of Auckland Limited Statement of Corporate intent in October. Progress to date: Committee feedback on draft SCI received in August 2021 (resolution number CCO/2021/33).
Stadiums Strategy CCO Governance and External Partnerships	A workshop was requested following Auckland Unlimited’s presentation of its strategic work programme on 27 April 2021.	To receive information on Auckland Unlimited’s ‘what’s best for Auckland’ position on stadium investment and business case for a single stadium operator as well as advice on options to move forward. Confidential Workshop held 7 July 2021. Confidential Workshop scheduled for September 2021.
City Rail Link Limited (CRLL) – end of year results CCO Governance and External Partnerships	CRLL has been established to govern and manage the delivery of the City Rail Link CRL), as part of an agreement between the Crown and Auckland Council to jointly fund the project. The company has the full governance, operational and financial responsibility for the CRL, with clear delivery targets and performance expectations.	CRLL reports quarterly as part of the group report to the Finance and Performance Committee. CRLL will present to the CCO Oversight Committee to discuss performance and end of year results. Results will be presented in workshops in October 2021.
Haumaru Housing – End of year results CCO Governance and External Partnerships	Haumaru Housing is a new joint venture established by Auckland Council and The Selwyn Foundation. This will ensure the long-term provision of affordable housing services for older people in Auckland.	Haumaru Housing will report to CCO Oversight Committee once a year to discuss performance and end of year results. Results will be presented in a workshop in October 2021.
Tamaki Regeneration Company (TRC) - End of year results CCO Governance and External Partnerships	TRC is a Crown entity that is jointly owned by the government and Auckland Council. TRC is leading urban regeneration activity in Tāmaki to achieve four strategic objectives; social transformation, economic development, placemaking and housing resource.	TRC will report to CCO Oversight Committee once a year to discuss performance and end of year results. Results will be presented in a workshop in October 2021.
Letters of Expectation CCO Governance and External Partnerships	Council issues an annual letter of expectations to each of its substantive CCOs to inform the development of the CCOs’ Statements of Intent.	Seeking committee approval of the content of draft 2021/2022 letters of expectation. A report will be provided in December 2021.

Completed

Area of Work	Committee Role (decision and/or direction)	Decision
Letters of Expectation	Seeking committee approval of the content of draft 2020/21 letters of expectation.	Decision to approve content of 2020/2021 letters of expectation, authority delegated to mayor to finalise and issue the letters, 12 December 2019. (Link to decision CCO/2019/2)
CCO AGM Resolutions	To delegate the authority to Auckland Council’s chief executive to act as Auckland Council’s shareholder representative to execute a written resolution in lieu of an annual meeting.	Decision to delegate authority to council’s chief executive to act as council’s shareholder representation to the substantive council-controlled organisations and also Tāmaki Regeneration Company and City Rail Link Limited and sign written resolutions (Link to decision CCO/2019/3)
Final SOIs	Seeking committee approval of final 2020/21 Statements of Intent from its substantive and non-substantive CCOs.	Decision to approve the 2020-2023 statements of intent, 22 September 2020. (Link to decision CCO/2020/10)
Haumaru Housing – End of year results	Haumaru Housing will report to CCO Oversight Committee once a year to discuss performance and end of year results.	Results presented in a workshop, 21 October 2020.
City Rail Link Limited (CRLL) – end of year results	CRLL reports quarterly as part of the group report to the Finance and Performance Committee. CRLL will present to the CCO Oversight Committee twice a year to discuss performance and end of year results.	Results presented in a workshop, 21 October 2020.
Tamaki Regeneration Company (TRC) - End of year results	TRC will report to CCO Oversight Committee once a year to discuss performance and end of year results.	Results presented in a workshop, 21 October 2020.
Merged Entity – new name	To approve the new name for the merged entity resulting from the amalgamation of RFAL and ATEED.	Decision to approve name of merged entity, 27 October 2020. (Link to decision CCO/2020/17)
Legacy CCO Review	To agree a set of criteria that will guide a review of Auckland Council’s legacy CCOs and the sequence of their review.	Decision to approve a review of the status of non-substantive CCOs and framework, 27 October 2020. (Link to decision CCO/2020/21)
Auckland Unlimited Final SOI	To approve a statement of intent for the new merged entity, Auckland Unlimited, resulting from the amalgamation covering the period 1 December 2020 to 30 June 2021.	Decision to approve a statement of intent for the new merged entity, Auckland Unlimited, 24 November 2020. (Link to decision CCO/2020/27)
Ports of Auckland statement of corporate intent	To consider POAL’s final statement of corporate intent.	Draft statement of corporate intent received by the Governing Body, 27 August 2020. Decision to approve POAL’s final statement of corporate intent, 8 December 2020. (Link to decision CCO/2020/33)
Te Puru Community Charitable Trust Organisation – extension of exemption	To approve Te Puru’s extension to the exemption from council-controlled organisation requirements under the Local Government Act 2002.	Decision to extend the Trust’s exemption, 23 February 2021. (Link to decision CCO/2021/5)
Draft SOIs	To approve proposed shareholder comments on substantive and non-substantive CCO draft 2021/2024 Statements of Intent.	Decision to note recommended comments, focus of the feedback and feedback received at committee, and agree the process of providing feedback to substantive and non-substantive CCOs, 21 May 2021. (Link to decision CCO/2021/18)
Highbrook Park Trust - Review of Trust Deed and Management Contract	To disestablish the trust	Decision to disestablish the trust, 18 May 2021. (Link to decision CCO/2021/19)
Statement of Expectation	Approve the statement of expectations content and process.	Decision to approve the Statement of Expectations for substantive Council-controlled Organisations, agreed that the CCO Governance Manual is no longer required, 22 June 2021. (Link to decision CCO/2021/26)
Auckland Council Branding Guidelines	Approve new Auckland Council branding guidelines.	Decision to approve the updated Auckland Council group brand guidelines, require CCOs to comply with the updated guidelines, and note updates on compliance will be reported annually, 24 August 2021. (Link to decision CCO/2021/32)
Final SOIs	Approval of final 2020/24 Statements of Intent for substantive and non-substantive CCOs.	Decision to approve the 2021-2024 statements of intent for substantive and non-substantive CCOs (Link to decision CCO/2021/34)
CCO ‘Scan the Horizon’ Workshops	The topics and sequencing of these workshops is being developed and will be agreed early in 2020. Future of these workshops being considered as part of CCO Review.	Workshops were held as follows: ATEED - February 2020 Auckland Transport - March 2020 Watercare - July 2020 (Governing Body workshop) Watercare site visit – 10 August 2021

Chairperson	Deputy Mayor Cr Bill Cashmore
Deputy Chairperson	Cr Angela Dalton
Members	Cr Josephine Bartley	Cr Richard Hills
	Cr Dr Cathy Casey	Cr Tracy Mulholland
	Cr Fa’anana Efeso Collins	Cr Daniel Newman, JP
	Cr Pippa Coom	Cr Greg Sayers
	Cr Linda Cooper, JP	Cr Desley Simpson, JP
	Cr Chris Darby	Cr Sharon Stewart, QSM
	Cr Alf Filipaina	IMSB Chair David Taipari
	Cr Christine Fletcher, QSO	Cr Wayne Walker
	Mayor Hon Phil Goff, CNZM, JP	Cr John Watson
	IMSB Member Hon Tau Henare	Cr Paul Young
	Cr Shane Henderson

Date	Subject
6/9/2021	Confidential report from 23 August 2021 Audit and Risk Committee: C1 CONFIDENTIAL: Council-controlled organisations' quarterly risk update – August 2021. Open resolution number AUD/2021/51

Author	Duncan Glasgow - Kaitohutohu Mana Whakahaere / Governance Advisor
Authoriser	Alastair Cameron - Manager - CCO Governance & External Partnerships