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, 21 September 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

26 October 2021

Ports of Auckland Limited Annual Report and Full Year Results Against SCI Targets

File No.: CP2021/14654

Te take mō te pūrongo

Purpose of the report

1. To receive Ports of Auckland Limited’s (POAL) Annual Report 2021 and full year results compared against performance targets from the Statement of Corporate Intent (SCI) for the year ending 30 June 2021. These are provided as Attachments A and B to this report.

Whakarāpopototanga matua

Executive summary

2. POAL report a difficult year impacted by container congestion, global supply chain disruption and the absence of cruise ships due to COVID-19 and safety issues. As a result, overall revenue and profit is down. Container volumes decreased and fewer ships came through the port.

3. The focus for the next financial year is on improving safety, completing automation, restoring container terminal performance, and improving financial returns.

4. POAL’s full year results against the SCI targets also highlight the challenges faced by POAL. Key results are below targets (such as lost time injuries, crane rate, ship rate, revenue targets and dividend declared) while some meet or exceeded the targets (such as car dwell times, harbour spills and emission reduction targets).

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Oversight Committee:

a) receive Ports of Auckland Limited’s Annual Report 2021 and full year results compared against performance targets from the Statement of Corporate Intent for the year ending 30 June 2021.

Horopaki

Context

5. Under the Memorandum of Understanding between POAL and the council, POAL is required to provide annual reports to council on the matters and within the timeframes specified in the Port Companies Act 1988.

Tātaritanga me ngā tohutohu

Analysis and advice

6. The POAL Annual Report for 2021 is provided as Attachment A. POAL report a difficult year impacted by container congestion, global supply chain disruption and the absence of cruise ships due to COVID-19 and safety issues.

7. Disruption in the global supply chain has impacted the entire business. Congestion at the container terminal was most prominent and the impact was also felt in all cargo types. Car imports were hit by global supply chain issues and the relocation of Ministry for Primary Industries inspections from Japan to Auckland, because of the pandemic. Coal volumes increased dramatically, because of lower hydro lake levels. There has been a surge in demand for supplies for the construction sector, because of the current building boom.

8. A key focus of POAL in the Annual Report is on health and safety following a death of POAL employee in August 2020. The Annual Report notes that safety and wellbeing strategic plan is in place and includes work on the recommendations from the CHASNZ independent safety review. The recommendations from the CHASNZ review are scheduled to be completed by June 2022.

Key Highlights and Commentary

9. POAL revenue fell 2.2 per cent to $226.3m from $231.4m of the previous corresponding period (pcp).

10. EBITDA fell 7.1 per cent to $69.7m from $75.1m in the pcp.

11. Reported net profit after tax increased to $45.6m compared to $23.0m in the pcp. This includes a $27.6m gain from investment property driven largely from property at Wiri.

12. The underlying profit for the year was $20.7 million, compared with $30.0 million in the pcp. The reduction in the underlying profit was largely driven by the COVID-19 response, the absence of cruise ships and the capacity-throughput challenges in the container terminal. The report notes that this was partly offset by an increase in multicargo revenue.

13. The declared dividend for the year was $3.7m compared to $4.9m in the pcp.

14. POAL has net debt of $480m (pcp: 488m) as at 30 June 2021, implying a net debt to FY21 EBITDA ratio of 6.9 x (pcp: 6.5x) and gearing of 33 per cent (pcp: 37 per cent).

15. The total container throughput fell 7.1 per cent to 818,238 TEU compared to 880,781 TEU in the pcp.

16. Car and light commercial vehicle throughput rose 9.2 per cent to 236,260 units, compared with 216,356 units in the pcp.

17. Total bulk and breakbulk throughput (including cars & light commercial vehicles) rose 15 per cent to 6.67m tonnes compared to 5.8m tonnes in the pcp.

18. The Annual report notes a $1.78 million payment was made to a former employee.

SCI performance measure results

19. Attachment B provides POAL’s full year results for the key performance indicators against the annual targets in its SCI. A summary is provided below:

20. Seventeen lost time injuries were recorded for the year, against a target of zero. One fatality was recorded against the target of zero.

21. Crane rate (as measured by Ministry of Transport) was 24.6 for the year against an annual target of 32.0. The crane rate is the number of containers a crane lifts on and off a container ship in an hour.

22. Ship rate (measured by Ministry of Transport) was 41.0 for the quarter against an annual target of 75.0. The ship rate is the number of containers moved on and off a container ship in an hour.

23. Average truck turnaround time was 38 minutes against an annual target of 25 minutes.

24. The multi-cargo terminal average car dwell time for the year exceeded the annual target of 2.85 days with a result of 2.1 days.

25. Increase in revenue for the year was -2.4 per cent, against an annual target of 0.3 per cent.

26. Net Profit after Tax (NPAT) result was $45.6m against an annual target of $20.4m.

27. Dividend declared was $3.7m against the target of $4.1m

28. Zero harbour spills were caused by POAL and emission target reductions were -6.7 per cent against the annual target of -5 per cent.

29. Percentage land-side moves on rail were 13.6 per cent against the annual target of 20 per cent. POAL have explained that the reduction is due to KiwiRail’s lack of capacity. KiwiRail are working on improving their capacity issues.

Tauākī whakaaweawe āhuarangi

Climate impact statement

30. POAL continued to deliver projects in line with their Toitu Carbon Reduce certified Emissions Management and Reduction Plan. POAL completed a trial of Renewable Diesel, a second Generation biofuel, and confirmed its suitability for adoption as a significant component of emissions. POAL established their first hydrogen refuelling facility on port as an enabler to trialling hydrogen fuel-cell vehicles. POAL also submitted revised emissions reductions roadmap to the Science Based Targets initiative (SBTi) and the roadmap has been verified by SBTi.

31. For POAL’s Zero Waste 2040 target they completed a strategic roadmap in FY21 to set out the pathway and milestones required to achieving zero waste to landfill by 2040. Action plans for the strategic roadmap will be developed in coming years.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

32. There are no relevant council group impacts. Financial implications are discussed below.

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

Local impacts and local board views

33. The governance of POAL is a responsibility delegated to the CCO Oversight Committee. We have not sought the views of local boards.

Tauākī whakaaweawe Māori

Māori impact statement

34. The POAL Annual Report notes that POAL has committed to develop a Māori Outcomes Framework that recognises the unique relationship between iwi of Tāmaki Makaurau and the port. Through developing the framework, POAL will identify opportunities to incorporate te ao Māori concepts into day-to-day work and culture and set out how they can be drawn meaningfully into POAL’s work culture.

Ngā ritenga ā-pūtea

Financial implications

35. The underlying full-year financial performance of POAL was largely in-line with the expectations of the Emergency Budget. Revenue was $5 million lower on the previous period, mostly driven by a reduction in container volumes.

36. A $28 million gain on revaluations has been recognised in investment property, which is driven largely by the land owned at Wiri. This gain is non-cash so has a limited impact on the council’s financial position.

37. Dividends remain at lower than historical levels. As POAL are fully consolidated into Auckland Council’s group accounts, dividend transactions are fully eliminated and have no impact on the council’s financial position.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

38. The POAL Annual Report provides an overview of the corporate governance for the year based on the eight principles in the NZX Corporate Governance Code 2019. Principle 6 of the Code is Risk Management. POAL confirm that they have a Risk Management Policy that describes their risk management framework, assigns accountability for managing risk, requires risks to be managed and mitigated, and outlines risk reporting.

39. The Annual Report also describes the financial risks that the Group have identified and how it manages these risks to protect its financial position and performance.

Ngā koringa ā-muri

Next steps

40. This report is for information purposes only. POAL will next report to the committee on its 2021-2024 SCI quarter one performance in November 2021.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇩	Ports of Auckland Limited Annual Report 2021	15
b ⇩	Ports of Auckland Full Year Results against SCI Targets	87

Ngā kaihaina

Signatories

Author	Chris Levet - Principal Advisor
Authoriser	Alastair Cameron - Manager - CCO Governance & External Partnerships

Council Controlled Organisation Oversight Committee

26 October 2021

Ports of Auckland Limited: Final Statement of Corporate Intent 2021-2024

File No.: CP2021/14655

Te take mō te pūrongo

Purpose of the report

1. To receive Ports of Auckland Limited’s (POAL) final statement of corporate intent for 2021-2024 (SCI).

Whakarāpopototanga matua

Executive summary

2. POAL provided a revised final statement of corporate intent to Auckland Council, and a letter to the Mayor detailing the changes following the council’s feedback.

3. The revised statement of corporate intent responds to most of the council’s feedback.

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Oversight Committee:

a) receive Ports of Auckland Limited’s final Statement of Corporate Intent 2021-2024.

Horopaki

Context

4. The CCO Oversight Committee agreed feedback on POAL’s draft SCI in August 2021 (Resolution CCO/2021/33). POAL has provided the revised Final SCI to the council responding to the feedback (Attachment A) and a letter to the Mayor detailing the changes (Attachment B). The final SCI has been approved by the POAL Board and is now publicly available.

5. We note that under the Port Companies Act 1988, the council can modify POAL’s SCI. Before the council can do this, it must:

a) ‘have regard to’ the principal objective of a port company (which is to operate as a successful business) and its reporting requirements; and

b) consult the POAL board about the proposed changes.

6. Ports of Auckland’s Annual Report for the 2021/2022 financial year is also on the agenda of this meeting. The POAL interim chief executive and chair of the board will be present at the meeting to answer questions.

Tātaritanga me ngā tohutohu

Analysis and advice

7. The council’s feedback on the draft SCI and POAL’s response are summarised in the table below:

	Council Feedback	POAL response	Notes
1.	Objectives of POAL The objectives are appropriate priorities for POAL and reflect the expectations of the council as shareholder	POAL thanks the council for the comment.
2.	Improvements in Health and Safety Reiterate the overall importance of health and safety and request that POAL keep the previous ‘number of LTIs’ indicator and zero lost time injury targets given the importance of health and safety.	Health and safety is a top priority for POAL. POAL are focussed on implementing the recommendations from the CHASNZ review, along with the other actions in their Safety & Wellbeing Strategic Plan. POAL believe these actions will significantly reduce the number of LTIs over time. POAL suggest that a target of zero LTIs for the next three years is unrealistic and unachievable. Instead, POAL have set challenging yet achievable targets. POAL made two changes to the SCI: · Included zero serious work-related illnesses and injuries to the zero fatality target. · Significantly increased LTI reduction targets from that proposed in the draft SCI. These were 15%, 25%, 15% and are now 50%, 50%, 50%.	POAL provided further rationale for having ambitious percentage reduction targets for LTIs instead of an overall zero harm target. Council health and safety staff have confirmed that this is in-line with best practice and note that research shows that zero harm targets can be counterproductive for improving health and safety outcomes. Council health and safety staff will work with POAL over the next year to further develop suitable healthy and safety performance measures that are based on the latest reputable research and in line with best practice.
3.	Delivery of Automation Ask POAL to include a specific performance indicator and target in the SCI to track the improvements to productivity made by automation once implemented.	See response to Reduction in Key Productivity Performance Targets (8) below.
4.	Emissions/Climate Change The change in POAL’s key performance measure from intensity to absolute emissions is reasonable and science based.	POAL thanks the council for the comment.
5.	Maori Responsiveness Ask POAL to engage with council staff and the IMSB to set a far more ambitious deadline for completion of the framework and confirm that it will include its own Maori staff and engage with mana whenua in the development of the framework.	As suggested POAL has met with and sought guidance from the IMSB and Ngā Mātārae. As a result POAL have amended their Māori Outcomes Framework section and target accordingly. Both the IMSB and Ngā Mātārae have given their support to these changes.	In the draft SCI the target date for developing the Framework was 2023. The revised final SCI has amended the target for developing the Framework to 2022, with implementation by 2023 and a review in 2024.
6.	Improved Relationship with the Council The council welcomes an improved relationship.	POAL thanks the council for the comment and confirm that this is a priority for the company.
7.	Use of Group Capital The commitment to an improved relationship between POAL and the council is important to facilitate this flow of information.	POAL thanks the council for the support.
8.	Reduction in Key Productivity Performance Targets The council expects to see more ambitious productivity targets for the years after implementation of automation is complete. These targets should reflect not only the removal of the disruption caused by the implementation of automation but should also reflect the improved productivity that automation is intended to provide. The council also expects customer service indicators to be reinstated in next year’s SCI.	POAL clarified that the primary objective of automation was to increase capacity on the Container Terminal (without reclamation) and to have an efficient flow of Containers through the Port into the Supply Chain. POAL’s target was to maintain the productivity levels achieved at the time of the automation decision. However, much has changed in the interim as the company has made changes to improve the safety of workers performing high risk operations, such as installing lash platforms. These safety processes have a direct reduction in the various measures of productivity. In addition, POAL (like ports globally) are facing uncertain times regarding international shipping, especially regarding ship arrival reliability and exchange number certainty. However, POAL acknowledge the council’s point and the need to continuously improve financial performance. Recovering container terminal productivity is one of the key strategic objectives for the year. POAL remain aware of the potential conflict between productivity and safety and will not set ambitious productivity targets that cannot be achieved safely. POAL have decided not to amend the targets, but these are targets that will be carefully reconsidered for next year’s SCI.
9.	Recover commercial position The council expects to see a return to profitability and the corresponding targets once automation is complete. The proposed amendment to the dividend policy should be adopted.	POAL note that delivering automation and recovering the commercial position are two of the key strategic objectives for the year.
10.	Customer Service Indicators The council accepts that the industry is currently disrupted due to the global pandemic but asks that POAL consider reinstating the Customer Service Indicators for the next two years.	POAL have considered and agree to the council’s request and have reinstated the Customer Service Indicator for the 2023 and 2024 financial years, although lowered the target for FY2023 when compared to historic targets given the inherent disruption in global shipping.	No surveys were conducted in FY2021 due to the global supply chain congestion caused by COVID-19 and no surveys are planned for FY2022. Surveys will resume in 2023 with a target score of at least 6/10 and 8/10 for 2024.
11.	Change of Dividend Policy The council does not oppose the amendment to the dividend policy.	POAL thanks the council for acceptance of the proposed changes to the Dividend Policy
12.	Primary Line of Communication The council requests that POAL amend the last sentence of section 10 of the SCI “Primary line of communication” to include the Auckland Council Chief Executive Officer as follows “…direct line of communication to the Auckland Council Chief Executive Officer and the Mayor of Auckland.”	POAL accept the council’s request but have altered it slightly to be more specific. The wording now reads “The Company will also have a direct line of communication to the Mayor of Auckland (via the POAL Board Chair) and to the Auckland Council Chief Executive Officer (via the POAL CEO).”

8. POAL have also added additional information regarding Shipping channel dredging and sea disposal:

POAL has been granted a Marine Dumping Consent by the Environmental Protection Agency for the disposal of dredged materials at the designated Auckland disposal site (formerly known as the Auckland Explosives Dump Site). The site is approximately 80 km east of the Coromandel and 50 km east of Cuvier Island. This site has been used extensively for many years by many parties including POAL. The consent expires in 2054 and it provides POAL with the certainty that it needs to dispose of on-going dredgings from the port. Strict parameters are set within the consent in relation to any contamination of the dredged materials. POAL has been granted Resource Consent by Auckland Council for deepening of the shipping channel and berth areas to accommodate larger ships which are being deployed into Australasia. This Resource Consent has been appealed and the parties are also seeking a judicial review of the sea disposal consent and POAL is working through a mediation process with the appellants. POAL has commenced a work programme to explore alternatives to dumping at the designated Auckland site and will update progress in its quarterly reports to the Council.

Tauākī whakaaweawe āhuarangi

Climate impact statement

9. The SCI includes an absolute annual emissions reduction indicator and targets. These targets will allow the council to measure the incremental progress against POAL’s long term environmental sustainability goals of being carbon neutral by 2025, emission free by 2040 and zero waste to landfill by 2040.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

10. POAL debt is consolidated into the council’s accounts and as such POAL has committed in the SCI to work with the council on a strategic approach to its capital expenditure, to help ensure the optimum use of debt across the council group.

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

Local impacts and local board views

11. The governance of POAL is a Governing Body responsibility, and therefore we have not consulted with local boards.

12. The SCI includes a performance target of attending all relevant local board meetings when invited and to strengthen relationships with the Ōrākei, Waitematā and Devonport-Takapuna local boards.

Tauākī whakaaweawe Māori

Māori impact statement

13. POAL has committed to develop a Māori Outcomes Framework that recognises the unique relationship between Iwi of Tāmaki Makaurau to be developed by 2022 and implemented by 2023.

Ngā ritenga ā-pūtea

Financial implications

14. POAL’s budget projections including the dividend payments will be incorporated into the group budgets as part of the Annual Budget 2022/2023 process.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

15. There are no direct risks associated with this advice.

Ngā koringa ā-muri

Next steps

16. This report is for information purposes.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇩	Final Ports of Auckland Statement of Corporate Intent	95
b ⇩	Letter to Mayor re Ports of Auckland Limited Final SCI	111

Ngā kaihaina

Signatories

Author	Chris Levet - Principal Advisor
Authoriser	Alastair Cameron - Manager - CCO Governance & External Partnerships

Council Controlled Organisation Oversight Committee

26 October 2021

2020/21 Annual reports for City Rail Link Limited and Haumaru Housing

File No.: CP2021/15101

Te take mō te pūrongo

Purpose of the report

1. To receive the 2020/21 annual reports for City Rail Link Limited (CRLL) and Haumaru Housing.

Whakarāpopototanga matua

Executive summary

2. City Rail Link Limited was set up to deliver the City Rail Link project. It is a Crown Entity, not a council organization, by virtue of the Crown holding 20 more shares than Council in the organisation (shares are issued for each dollar of funding provided by Crown and Council). There is an extensive regime of reporting on the progress of the project itself and its financial status, and some of this information is also contained in the Annual Report. However, the annual report also documents the performance of CRLL as an organisation against measures set out in its Statement of Performance Expectation, a statutorily required document under the Crown Entities Act.

3. In 2020/21, CRLL achieved all its performance targets (see pages 12-15). One key area measured is health and safety. CRLL recorded a Total Recordable Injury Frequency Rate of 3.8 injuries per million hours worked (compared to indicator required to be seven or below). Another key area relates to sustainable construction practices, which has also been achieved, such as 99 per cent of construction waste being diverted from landfill (95 per cent target). The CRLL Annual Report is Attachment A.

4. Further information about CRLL and the progress of the project is provided at six monthly briefings to councillors. The next planned update is Wednesday 17 November 2021 (Governing Body workshop).

5. Haumaru Housing is a limited partnership between Auckland Council and the Selwyn Foundation that provides housing services for older people. In 2020/21 Haumaru Housing met all five of their key performance indicators that are required in the deed of lease.

6. The overall satisfaction with service provided by Haumaru Housing is high at 94 per cent, as measured by the tenants’ survey undertaken in June 2021. Tenants’ satisfaction with Haumaru Housing has remained stable across all five areas of the Haumaru Housing service.

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Oversight Committee:

a) receive the 2020/21 annual reports for City Rail Link Limited and Haumaru Housing as provided at Attachments A and B. of the agenda report.

Horopaki

Context

7. City Rail Link Limited was set up in 2017 and is a Crown Entity. Specifically, it is a crown company established under Schedule 4 of the Public Finance Act. This means it is subject to the Crown Entities Act accountability regime rather than the Local Government Act. When it was set up, a range of other reporting mechanisms were established under the Project Delivery Agreement between the Crown, Auckland Council and CRLL itself. These mechanisms include monthly reporting to the Sponsors, reviews at major project milestones, and the reserving of the rights of Sponsors to approve major contracts. While Council’s committees do not undertake formal monitoring of City Rail Link Limited, both Governing Body and the Audit and Risk Committee receive regular updates from the board chair and chief executive.

8. The Haumaru Housing Limited Partnership (Haumaru Housing) was formed in December 2016. Haumaru Housing is a registered Community Housing Provider and provides tenancy and asset management services for council’s portfolio of 1,446 rental units for senior citizens. The units are located in 63 villages across South, North and West Auckland.

9. Haumaru Housing is also not a council organisation, but nonetheless, as the assets are owned by Council, there is a reporting regime established in the partnership agreements to ensure that it is delivering the outcomes for which it was set up.

Tātaritanga me ngā tohutohu

Analysis and advice

City Rail Link Limited (CRLL)

10. While there is an extensive reporting regime about the city rail link project itself, the Annual Report remains important both to summarise project progress, but also to provide information about the performance of the company itself against targets set for it in the Statement of Performance Expectations (SPE). The SPE is a statutory document required of Crown Entities each year.

11. City Rail Link Limited reports on a range of measures in its Annual Report, in the following areas:

· Funding envelope: performance against project budget

· Health and safety: ensuring that both the construction process and the finished assets are safe

· Sustainability and social outcomes: sustainability in construction practices and ensuring employment opportunities for a diverse range of people

· Project delivery: delivery of the project in a timely manner

· Oversite development: realising the potential of sites in and around CRL project sites

· Community and stakeholder engagement.

12. CRLL has achieved against all of its targets. Of particular note, it has achieved very good performance on health and safety, with the 3.8 injuries per million hours worked comparing favourably against the maximum seven injuries included in the SPE.

Haumaru Housing

13. In 2020/21 Haumaru Housing met all five of their key performance indicators as required in the deed of lease with Auckland Council. Key to note is that overall satisfaction with service provided by Haumaru Housing is high at 94 per cent, as measured by the tenants’ survey undertaken in June 2021. Unit occupancy is 98 per cent and all of the units are now IRRS compliant. The Haumaru Housing annual report is Attachment B and notes a $5 million net surplus.

14. Haumaru Housing have provided additional information to Auckland Council on further areas specified in the limited partnership agreement, including capital expenditure and factors related to housing maintenance, service quality, and on-site activities.

Tauākī whakaaweawe āhuarangi

Climate impact statement

15. The City Rail Link project itself is a key component which will allow the Auckland transport system to transition away from its focus on single occupant car use. As noted above, however, CRLL also aims to deliver the project using sustainable practices. For example, in 2020/21, 99 per cent of construction and demolition waste was diverted from landfill, against a target of 95 per cent. More descriptive information about this is provided on page 30 of the Annual Report.

16. Reporting by Haumaru Housing does not provide any information on climate impacts.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

17. CRLL contributes to council’s outcomes and objectives by assisting with delivering mode shift towards public transport and away from cars. With the capacity enabled by the city rail link, the rail system can fulfil its role as the backbone of the rapid transit system in Auckland. It is therefore a key element of the transport programme in Auckland that is being delivered by agencies such as Auckland Transport and Waka Kotahi.

18. Council is committed to providing housing services for older people in Auckland. When setting up the Haumaru Housing Limited Partnership council identified that two drivers would be to improve the quality of housing and improve tenant satisfaction. Eke Panuku are working with Haumaru Housing on future development of Haumaru locations.

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

Local impacts and local board views

19. The governance of council organisations is a responsibility delegated to the CCO Oversight Committee. We have not sought the views of local boards.

Tauākī whakaaweawe Māori

Māori impact statement

20. CRLL’s partnership with mana whenua is detailed on pages 40-41 of the Annual Report.

21. A mana whenua forum has been established by City Rail Link Limited. One output of this forum is Mahi Rauora Aratohu, which is an infrastructure sustainability technical manual incorporating mana whenua cultural values. This was developed in 2016/17 and has been adopted by the Link Alliance in 2019 in delivering the major project contracts. More information about CRLL’s mana whenua partnership can be sought when CRLL presents to Governing Body on 17 November 2021.

22. Haumaru Housing engage with mana whenua through Eke Panuku, including providing updates on property portfolio development.

Ngā ritenga ā-pūtea

Financial implications

23. The annual reports of CRLL and Haumaru Housing contain information regarding their financial performance for the 2020/21 year. The financial information is independently audited.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

24. There are no specific risks associated with council receiving the 2020/21 annual reports for CRLL and Haumaru Housing.

Ngā koringa ā-muri

Next steps

25. This report is primarily for information purposes. The next half year performance reports (six months to December 2021) will be provided to the CCO Oversight Committee in early 2022.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇩	City Rail Link Limited Annual Report 2020/21	119
b ⇩	Haumaru Housing Annual Report 2020/21	203

Ngā kaihaina

Signatories

Authors

Rachel Wilson - Principal Advisor

Edward Siddle - Principal Advisor

Authoriser

Alastair Cameron - Manager - CCO Governance & External Partnerships

Council Controlled Organisation Oversight Committee

26 October 2021

2020/21 Annual reports for non-substantive council-controlled organisations

File No.: CP2021/14696

Te take mō te pūrongo

Purpose of the report

1. To present the 2020/21 annual reports for three council non-substantive council-controlled organisations (CCOs); COMET Auckland, Manukau Beautification Charitable Trust (MBCT) and Contemporary Art Foundation (CAF).

Whakarāpopototanga matua

Executive summary

2. Under Auckland Council’s accountability framework, each non-substantive CCO must provide an annual report to the CCO Oversight Committee. The annual reports for 2020/2021 are contained in Attachments A to D and are measured against the 2020-2023 Statements of Intent (SOIs).

3. COMET Auckland achieved four of their six statement of intent performance targets this year. The two targets that were not met were due to ongoing impacts from COVID-19. COMET reported a surplus of $61,311 for 2020/21.

4. Highlights for COMET Auckland in 2020/21 include beginning new collaborative work to support Pasifika bilingual education, supporting te reo Māori pathways in Manurewa and expanding the youth employability programme (which will now be delivered by Youthtown in Auckland). One key project is the extension of science, technology, engineering and maths (STEM) work in West Auckland. This involves supporting five small participatory science “pico-projects” with organisations working with Pasifika children and young people, funded by the Ministry of Pacific Peoples.

5. MBCT achieved 18 of their 23 statement of intent performance targets this year. The five targets that were not met reflect the impact of external factors such as COVID-19 and associated lockdowns. MBCT reported a surplus of $202,412 for 2020/21.

6. Highlights for MBCT in 2020/21 include a 23 per cent increase in the volume of graffiti removed on the previous year, a rise in the number of community projects supported and volunteer hours. An example includes ‘Te Puhinui Stream Big Clean’ which saw six tonnes of rubbish removed and the support of around 500 volunteers. During the year MBCT also successfully refreshed its strategic plan with a focus on deepening its impact into South and East Auckland communities.

7. CAF’s annual reporting is contained in two documents, both of which are attached – its annual audited financial statements, and its full-year performance report. The majority of CAF’s income comes from Auckland Council’s grant and, in the past financial year, a significant donation from the Te Tuhi Contemporary Art Trust. This means that CAF remains in relatively good financial health despite the ongoing COVID-19 situation having affected attendances. CAF has in fact performed very well against its performance measures (except project attendance), which are outlined in the full-year performance report (part 5, page 7). For example, art commissions significantly exceeded the target, and through the SOI process staff have requested CAF to increase this target for 2021/22.

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Oversight Committee:

a) receive the 2020/21 annual reports for COMET Auckland, Manukau Beautification Charitable Trust and Contemporary Art Foundation as provided at Attachments A-D.

Horopaki

Context

8. Council currently has eight non-substantive CCOs. Five of these are exempt from the accountability requirements set out in the Local Government Act (LGA) 2002, as provided for through section 7. The remaining three CCOs, COMET Auckland, MBCT and CAF are not exempt and must provide council with an annual statement of intent, a half year performance report and an annual report.

9. Under sections 68-69 of the LGA 2002, a CCO’s annual report must contain:

· the information that is necessary to enable an informed assessment of their operations

· a comparison of the performance with the SOI

· audited consolidated financial statements for that financial year

· an auditor’s report on those financial statements and the performance targets and other measures by which performance was judged relative to objectives

· an explanation of any material variances between that performance and the SOI.

10. The annual reports for 2020/2021 are contained in attachments A to D.

Tātaritanga me ngā tohutohu

Analysis and advice

COMET Auckland

11. COMET Auckland achieved 4 of their 6 of their statement of intent performance targets this year. Ninety per cent of COMET initiatives met the set timelines and outputs (target of 90 per cent) and 87 per cent of stakeholders rated COMET Auckland’s work as valuable or very valuable (target of 75 per cent).

12. Of the two targets that were not met, the number of media articles generated were 20 against a target of 35. Secondly, 67 per cent of stakeholders who attended events rated them moderately to highly valuable for influencing action, against a target of 75 per cent. These two results may have been affected by COVID-19 impacts, on news cycles and the need to move events online.

13. COMET reported a surplus of $61,311 for 2020/21. The surplus is due to extra funding received for existing and new projects.

Manukau Beautification Charitable Trust

14. MBCT achieved 18 of their 23 statement of intent performance targets this year, which represents 78 per cent of their performance indicators. Five remaining performance indicator targets were not met, although two were by a relatively small margin. One performance indicator has been discontinued, and as such is not measured.

15. Of the five targets that were not met, these reflect the impact of external factors, in particular COVID-19 and associated lockdowns throughout 2020/21. These indicators were:

· Eye on Nature Environmental Education programme

o Number of primary school students educated totaled 1,230 (target 1,500)

o Number of attendees at the public day totaled 3500+ (target 8,000+)

· Boomer Shed

o Number of single attendances per annum totaled 2,928 (target 5,000)

o Number of members totaled 69 (target 100)

o Number of hours of volunteer input into community projects totaled 1,230 (target 2,000).

16. MBCT reported a strong full year result with a surplus of $202,412 for the 2020/21 financial year.

Contemporary Art Foundation

17. CAF delivers high-quality contemporary art through the Te Tuhi Contemporary Art Trust. CAF’s financial statements show that it is in relatively good financial health, despite the pressures of COVID-19. This reflects that its income predominantly comes from Auckland Council, supplemented by donations, project grants, and some earnt income.

18. CAF typically operates a cash surplus but an accounting deficit on account of not covering its depreciation costs. However, it has sufficient funds to maintain the buildings in line with its maintenance plan. The exception is years where there is a revaluation of assets (such as 2020/21), and in which a surplus is shown.

19. Despite COVID-19, CAF has performed very well against its performance targets. Although audience numbers are down, it continues to deliver significant programmes to school students and after-school programmes, wellbeing groups, and exhibitions (including commissions away from its Pakuranga base). These results can be seen on page 7 of its full-year performance report, with its number of commissions, workshops and classes, and public events all exceeding targets.

20. As a result of this, staff as part of the SOI process requested CAF to revise its targets for the 2021/22 year.

21. Te Tuhi has major plans for the next few years, though it continues to face uncertainty in relation to the Eastern Busway project and the Reeves Road Flyover in particular, which is adjacent to the Te Tuhi buildings. This already impacts on its ability to supplement its income from commercial activity, and will continue to do so. It intends to continue its operation in Pakuranga for as long as possible, while also seeking options to mitigate the impacts of the Eastern Busway project, and potentially moving some of its programmes to other venues. In this, it works with the arts and culture team at Council to consider options.

Tauākī whakaaweawe āhuarangi

Climate impact statement

22. A key focus of MBCT’s activity is to teach and facilitate environmental and sustainability education. In 2020/21 MBCT added a deeper level of engagement for community and school initiatives through a new Community Educator role being recruited for in April which delivered 8 bespoke sessions and engaged with 228 youth and 18 adults.

23. Looking forward to the next 12 months, MBCT intends to become a carbon neutral organisation, with first year steps being to capture an understanding of their carbon impact.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

24. Each CCO’s annual report contains information on how they have contributed to the council’s outcomes and objectives for the 2020/21 year.

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

Local impacts and local board views

25. The governance of CCOs is a responsibility delegated to the CCO Oversight Committee. We have not sought the views of local boards.

Tauākī whakaaweawe Māori

Māori impact statement

26. COMET Auckland supports more equitable learning outcomes for Māori and greater recognition of Māori knowledge and aspirations through their strategic leadership, data reports and programmes.

27. For the 2020/21 year, MBCT has grown its Māori representation at a governance level with the appointment of two new trustees. Other highlights include encouraging the use of matauranga and tikanga Māori in Eye on Nature School programmes, including Creative Arts and Wearable Arts. MBCT also engaged local Māori artist, Rangi Matthews, to create the mural in Leabank Park which highlights the local Māori culture, using kowhaiwhai patterns and tribal designs.

28. CAF’s full-year performance report notes that five of its 13 exhibitions showcased contemporary Māori art and artists, along with 22 public events. These exhibitions also informed many of the programmes which were delivered to schools, meaning that those students were engaged with that content.

Ngā ritenga ā-pūtea

Financial implications

29. Each of the CCOs’ annual reports contain information regarding their financial performance for the 2020/21 year. The financial information is independently audited.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

30. There are no specific risks associated with council receiving the 2020/21 annual reports for COMET Auckland, MBCT and CAF.

Ngā koringa ā-muri

Next steps

31. This report is primarily for information purposes. The next half year performance reports (six months to December 2021) will be provided to the CCO Oversight Committee in early 2022.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇩	COMET Auckland 2020/21 Annual Report	241
b ⇩	Manukau Beautification Charitable Trust 2020/21 Annual Report	259
c ⇩	Contemporary Art Foundation Audited Financial Statements 2020/21	299
d ⇩	Contemporary Art Foundation Full-Year Performance Report 2020/21	319

Ngā kaihaina

Signatories

Authors

Sarah Johnstone-Smith - Principal Advisor

Rachel Wilson - Principal Advisor

Edward Siddle - Principal Advisor

Authoriser

Alastair Cameron - Manager - CCO Governance & External Partnerships

Council Controlled Organisation Oversight Committee

26 October 2021

CCO Review: Implementation Programme Update

File No.: CP2021/14996

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. The recommendation that Eke Panuku cuts its overheads is now complete. Overall, 17 of the 64 recommendations are fully implemented.

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

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

5. 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

6. Seventeen of the 64 recommendations of the Review are now fully implemented.

7. Implementation is underway for 36 of the Review’s 64 recommendations and many are well advanced.

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

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

Chart 1: Status of review recommendations

Recent progress

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

Auckland Unlimited

11. Together Auckland Unlimited and Eden Park Trust are exploring joint operating models for Auckland’s four stadiums. Due to the commercial nature of these conversations, an update on the work was provided in a confidential workshop for this committee on 22 September 2021.

12. Auckland Unlimited is working with MOTAT to explore how the Review recommendation on bringing MOTAT into Auckland Unlimited might be implemented in practice and an agreement on process is expected in December 2021.

Auckland Transport

13. Auckland Transport and council staff have established a joint project team to address the recommendation that bylaw-making powers are clearly delineated between the two organisations. Following the completion of current and future state analyses, work is underway to identify the drivers for change and actions to be undertaken.

14. To streamline funding processes, a new Delegated Funding Agreement was signed in August 2021 between Auckland Transport and Waka Kotahi that increases the threshold for Auckland Transport to approve National Land Transport Fund funding for its own projects from $5 million to $15 million. Auckland Transport is now working on the first funding application under the new delegation threshold.

15. Auckland Transport is in the process of developing a Code of Practice to be included in the Council family Code of Practice and has received feedback from Auckland Council Regulatory Engineering and Healthy Waters.

Eke Panuku

16. The recommendation that Eke Panuku cuts its overheads and adopts a more focused approach to redevelopment has now been completed. Eke Panuku undertook work as part of the Emergency Budget and LTP 2021-2031 and completed several targeted reviews on its resource allocations, the results of which were reported to the Eke Panuku Board. A peer review by the council’s Finance team alongside annual reporting has now been completed which validates the overhead reductions reported by Eke Panuku. This includes reduction in staff costs and staff numbers, including a reduction in back-office staffing. This reduction was achieved through unfilled vacancies following restructures as well as recruitment freezes.

17. The peer review recognised that the ongoing extent of overhead reductions is closely dependent on the discussions and decisions around the Eke Panuku funding model as well as medium term priority locations. The outcome of these discussions will not be resolved until the next 10-year Budget 2024-2034.

Watercare

18. Watercare continues to support the overall development of the water strategy. Auckland Council hosted an international benchmarking exercise on 12-13 October 2021 with the participation of Watercare and Auckland Transport. Workshops on the strategy with the Environment and Climate Change Committee began in September 2021 and will continue through November 2021.

19. Watercare has confirmed the next asset management plan update will be provided to council by the end of June 2022 and work is progressing with Auckland Transport on its approach.

Accountability

20. The action plan to address the review observations concerning risk was reported to the council/ CCO chief executives group in October 2021. The plan includes the steps to establish a group approach for reporting on climate change risk management. The first phase of work is to develop group climate scenario parameters.

21. 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.

22. A workshop to support the development of letters of expectation is scheduled with the CCO Oversight Committee for 10 November 2021 to discuss CCO work programmes, priorities and trade-offs.

23. Visits have been scheduled for the CCO Oversight Committee to meet with each CCO in 2021 to build understanding of its business and culture and to informally build relationships. Due to COVID-19 restrictions the visit to Auckland Transport scheduled for 19 October 2021 will be an online session. Visits planned to Auckland Unlimited and Eke Panuku in November 2021 may also have to be online.

24. Following the adoption by all local boards of new combined engagement plans across the four CCOs, staff are now developing a reporting framework to local boards that provides consistency across the CCOs.

Culture

25. Introductory online modules for inducting new staff about the CCO model are being launched in October 2021. Modules will be hosted on Auckland Council’s Learning and Development site, accessible by Auckland Unlimited and Eke Panuku staff and can be shared with Auckland Transport and Watercare.

26. A brief is being prepared for council’s legal team for an overview of the current mechanisms available to ratepayers to challenge CCO or council decisions. This will be an input to identifying gaps and potential approaches.

27. NZIER is currently preparing a review report on the quality of advice in a selection of reports from Auckland Transport, Auckland Unlimited and Eke Panuku (Watercare do not report).

28. Communication of the Elected Members Survey results is now complete. On request, the council’s Governance Capability team presented the results to the boards of Auckland Transport and Watercare. Analysis of research focus groups is now in progress.

29. A feasibility assessment is underway across the council group’s back-office functions which is expected to be completed in February 2022.

Tauākī whakaaweawe āhuarangi

Climate impact statement

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

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

31. 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

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

33. 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

34. 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.

35. 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.

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

37. All CCOs have included the need to contribute to Māori outcomes in staff position descriptions.

38. The council/ CCO chief executives group has initiated a quarterly meeting with the Independent Māori Statutory Board chief executive focused on Māori outcomes. The latest hui took place on 30 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

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

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

40. Risks are reported to the implementation 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 across the group will mitigate these main risks associated with the implementation programme.

41. Monitoring of current COVID-19 restrictions on the Review implementation programme continues. No major impacts across the programme have been reported.

Ngā koringa ā-muri

Next steps

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

43. Updates on the Review implementation programme will be provided at meetings of the CCO Oversight Committee.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇩	CCO review implementation - progress by recommendation	333

Ngā kaihaina

Signatories

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

No.	Title	Page
a ⇩	Forward Work Programme	351

Council Controlled Organisation Oversight Committee

26 October 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. An updated was received in September 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, June 2021, August 2021, and September 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, and March 2021 Third quarter reports were scheduled for June 2020; however this meeting was cancelled due to COVID-19; received in May 2021. Fourth quarter reports were received for substantive council-controlled organisations September 2020, and September 2021. The Ports of Auckland Limited Interim Report for the six months ending 31 December 2020 were received in March 2021. Annual report for POAL will be received in October 2021. Annual reports for non-substantive CCOs will be received in October 2021. First quarter reports for substantive council-controlled organisations will be received in December 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. Progress to date: Confidential Workshop held 7 July 2021. Confidential Workshop held September 2021. Third confidential workshop December TBC
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 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 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 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 Auckland Transport briefing in lieu of site visit due to Covid – 19 October 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

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