I hereby give notice that an ordinary meeting of the Council Controlled Organisation Oversight Committee will be held on:

 

Date:

Time:

Meeting Room:

Venue:

 

Tuesday, 14 December 2021

2.00pm

This meeting will be held remotely and a recording of the meeting will be available on:
https://www.aucklandcouncil.govt.nz/about-auckland-council/how-auckland-council-works/meetings-council-bodies/Pages/webcasts-council-meetings.aspx

 

Kōmiti Aromātai Whakahaere Kaupapa Kei Raro I Te Maru O te Kaunihera / Council Controlled Organisation Oversight Committee

 

OPEN AGENDA

 

 

MEMBERSHIP

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

 

 

(Quorum 11 members)

 

 

Duncan Glasgow

Kaitohutohu Mana Whakahaere /

Governance Advisor

 

9 December 2021

 

Contact Telephone: (09) 890 2656

Email: duncan.glasgow@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

 



 

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.

 

 


Council Controlled Organisation Oversight Committee

14 December 2021

 

ITEM   TABLE OF CONTENTS                                                                                         PAGE

1          Apologies                                                                                                                        9

2          Declaration of Interest                                                                                                   9

3          Confirmation of Minutes                                                                                               9

4          Petitions                                                                                                                          9  

5          Public Input                                                                                                                    9

6          Local Board Input                                                                                                          9

7          Extraordinary Business                                                                                              10

8          2022/23 draft letters of expectation to substantive council-controlled organisations                                                                                                                                       11

9          CCO Review: Implementation Programme Update                                                 21

10        Liaison councillors' updates                                                                                      31

11        Summary of Council Controlled Organisation Oversight Committee information memoranda and briefings (including the forward work programme) - 14 December 2021                                                                                                                               33

12        Consideration of Extraordinary Items

 


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, 23 November 2021, including the confidential section, 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

14 December 2021

 

2022/23 draft letters of expectation to substantive council-controlled organisations

File No.: CP2021/17611

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To approve content for inclusion in the 2022/23 letters of expectation to substantive council-controlled organisations (CCOs).

Whakarāpopototanga matua

Executive summary

2.       The letters of expectation are important documents that provide direction on:

·    the development of the substantive CCOs’ Statements of Intent (SOIs) for 2022-2025

·    other priorities and issues of importance for the council to inform CCO operations and service delivery.

3.       The expectations are set out in two parts:

·    Part I: Common expectations for all CCOs.

·    Part II: Specific expectations for each CCO. 

4.       The expectations have been drafted based on continued delivery of the priorities in the 10-year Budget 2021-2031 and the Mayor’s proposal for the 2022/23 annual budget, with input from subject matter experts from across the council.  Input to the proposed draft letters of expectation content was sought from councillors and CCOs at a workshop of the CCO Oversight Committee on 10 November 2021.

5.       The letters will be drafted on the basis of the committee’s resolutions, finalised under delegation by the Mayor and Deputy Mayor and issued to the board chair of each substantive CCO prior to Christmas 2021. 

6.       The report also recommends a one-month extension of all statutory deadlines in the SOI process for 2022, as allowed for in the Local Government Act. Given the uncertainty of the financial context, this will allow CCOs more time to align their work programmes with the agreed outcomes of the annual budget process.  Initial submission of SOIs will become 1 April 2022, and final submission 31 July 2022. 

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Oversight Committee:

a)      approve the proposed content for inclusion in the 2022/23 letters of expectation to substantive council-controlled organisations as set out in this report

b)      delegate authority to the Mayor and Deputy Mayor to finalise and issue the 2022/23 letters of expectation to substantive council-controlled organisations based on the resolutions of this committee

c)      approve a one-month extension of statutory deadlines for all council-controlled organisation statements of intent for 2022-2025, as provided for in the Local Government Act Schedule 8, section 4

d)      delegate the Manager, CCO Governance and External Partnerships to write to all council-controlled organisations advising of the extension of statutory deadlines. 

Horopaki

Context

7.       The 2022/23 letters of expectation are important documents that provide direction on:

·    the development of the substantive CCOs’ SOIs for 2022-2025

·    other priorities and issues of importance for the council to inform CCO operations and service delivery.

8.       Council’s proposed expectations are in two parts:

·    Part I: Common expectations for all CCOs

·    Part II: Specific expectations for each CCO.

CCO review recommendations

9.       The CCO Review recommended that each CCO chief executive and board chair should attend a workshop with the governing body to guide development of letters of expectation and SOIs (recommendation 21, and discussion on page 62). This was to act as a ‘scene setter’.

10.     Discussion would cover the council’s priorities, ways to boost collaboration with other CCOs and how to ensure effective service delivery. It should be noted that there are also other workshops occurring where some of these matters are being worked through together, particularly through the concurrent annual budget process. 

11.     The CCO review also recommended the development of a Statement of Expectation, the first edition of which was approved in June 2021[1]. Unlike the letters of expectation, this is a tool provided for in legislation, and focusses on council’s enduring expectations (e.g. no surprises principle and operating as a group) that have previously been included in LOEs. The Statement of Expectations is more focused on how CCOs undertake their operations, rather than work programmes.  The final LOEs should be read alongside the Statement of Expectation.

Workshop 10 November 2021

12.     In response to the CCO review recommendation 21 noted above, a CCO Oversight Committee workshop was held on 10 November 2021 with CCO Board Chairs and CEOs in attendance to discuss the strategic priorities for inclusion in LOEs.  To inform the discussion, potential matters for consideration in the proposed LOEs were canvassed from council staff and each CCO and summarised in a memo circulated to all attendees in advance.

13.     Due to time limits, the conversation at the workshop was focused on areas that may be new or where further clarification and discussion is warranted.  Liaison councillors led the discussion and then invited CCOs and councillors to comment and discuss.

Tātaritanga me ngā tohutohu

Analysis and advice

14.     The proposed expectations which are common to all CCOs are set out below (Part I), followed by specific expectations for each CCO (Part II).

Part I: Common expectations for all CCOs

15.     The expectations common to all CCOs are provided below and will form the first part of each 2022/23 LOE.

 

 

Current state

16.     The impacts of COVID-19 are ongoing on the council group and the community. Restrictions, labour market issues impacting the whole group and supply chain issues are resulting in delays and cost escalations for a number of work programmes and capital projects. Decisions in the LTP anticipated the risk of further outbreak and provided for the impact to certain extent but additional pressures are building up. We need to adjust our expectations accordingly on the delivery of existing programme and on new initiatives that we would clearly like to take.

17.     In addition, there are a range of reforms, strategic reviews and changes underway (such as the National Policy Statement on Urban Development (NPS-UD), and reforms of the Resource Management Act and three waters). These are also contributing to uncertainty and heavy workloads across the council group.

18.     Given the high level of uncertainty ahead from COVID-19, it is important that we think carefully about how we might want to respond to short-term issues and long-term challenges strategically.

19.     We are working collaboratively on these key issues and identifying potential options available to the council group.

Mayor’s proposal for the 2022/23 annual budget[2]

20.     The mayor has proposed items for consultation as part of the Annual Budget 2022/2023 which at a high level include:

a)    a base budget package proposal based on the second year of the 10-year Budget 2021- 2031, taking into account the impact of the COVID-19 Delta outbreak and current economic conditions

b)    a package of further climate actions in addition to the base budget proposal to reduce emissions and support adaptation.

21.     It is expected that draft 2022/25 SOIs will be consistent with the relevant aspects of the Mayor’s proposal for the 2022/23 annual budget.

22.     Under the Mayor’s proposal, CCOs are also expected to work with council’s chief executive to implement $15m of permanent cost reductions in the form of efficiency savings and service reductions across the group in 2023/2024, growing to $30m per annum from 2024/2025 onwards.  It is proposed council will consult on a set of draft expenditure prioritisation criteria in 2022/2023 Annual Budget.  The criteria will be applied to implement the cost reductions sought.

Working together to progress the agreed areas of focus for growth and development

23.     With limited resources, the Long-term Plan programme focuses on agreed areas of focus for growth and development (North West, CRL stations, Auckland Housing Programme/Tamaki and Drury). We expect that as a family there is a continued commitment to working together with the Council family to efficiently plan for and prioritise growth and intensification. The monthly GM Housing Group is seen as key mechanism for coordinating this activity and Council’s Chief of Strategy is to be consulted with for any development proposal which may not align with council’s adopted plans and strategies.

24.     The government’s programme to accelerate the supply of housing will require the Council Group to work together in a coordinated and united way (including implementing the NPS-UD and submitting on new associated legislation). To support this work, CCO contribution is expected in:

·      developing the Auckland Future Development Strategy and additions to the Infrastructure Strategy

·      reviewing of any plans and strategies is undertaken in an open and transparent manner

·      sharing information in a timely manner across the council group to ensure monitoring, analysis and reporting is consistent

·      participation in the further development of organisational strategic priorities (i.e., investment prioritisation) to assess and allocate funding and project creation and implementation.

Climate related disclosures

25.     The Auckland Council group will be required to prepare a climate-related disclosure under the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Bill from FY23. The disclosure will need to be compliant with the climate disclosure reporting standards that will be aligned to the Taskforce on Climate-related Financial Disclosures (TCFD) framework.

26.     In order for the group to achieve future compliance with the climate disclosure reporting standards, CCOs are expected to work with council to implement the underlying processes that will support the recommended disclosures of the TCFD framework. In addition, collaboration is required on the following enabling projects:

1.            Complete a group climate change risk assessment using scenario analysis

2.            Identify and implement a process for managing climate risks across the group

3.            Complete a climate-risk governance assessment.

Māori outcomes

27.     CCOs should continue to deliver:

·     Māori outcomes

Kia Ora Tāmaki Makaurau – a Māori outcomes performance measurement framework: implementation/delivery/reporting/monitoring/evaluation across the council group

Māori outcomes portfolio - understanding BAU initiatives across the council group which predominantly contribute towards advancing Māori outcomes

·     Māori outcomes plans (previously named Māori Responsiveness Plans)

Delivery, monitoring, reporting

·     Māori engagement

Developing an engagement approach for the council group

·     Māori employment and development

Implementation of the Māori employment strategy – MAHI. The strategy is currently being revised.

Other group matters

28.     There is an overall greater focus on equity and communities in most need and considering them in all decisions. This is driven by the direction set in the Auckland Plan 2050 and Infrastructure Strategy. This means thinking about who is experiencing barriers to participation and how we address that, whose voices are not being heard or represented; and how the services, programmes and facilities we provide reflect the diversity of Aucklanders we are here to serve. 

29.     Council and CCOs shall work in partnership on strategy development, planning and decisions that impact on the council’s level of risk and/or level of investment (and affordability). This includes jointly agreeing principles, methodology, shared procurement of services and/or working groups, open and transparent data, and sharing internal work in confidence. The CCO Chief Executive group should have oversight of any joint strategy work.

Part II: CCO specific expectations

30.     The specific expectations for each CCO are provided below.  These have been updated to reflect discussions at the 10 November 2021 workshop (as applicable).

Auckland Transport

31.     The broader context for AT is framed by three key things: 

·        responding to the climate crisis and the need to reduce emissions and adapt. Addressing the challenges that the climate emergency presents for Auckland is a priority for the council group. Te Tāruke-ā-Tāwhiri’s emissions target shows a clear expectation that the transport system will transform over the next decade.

·        a continued safety focus across the transport system.

·        AT’s capacity and capability to deliver on the capital programme, given financing and funding constraints, both from COVID-19, but also limitations from main funders. 

32.     Therefore, the proposed priorities for the SOI 2022-2025 are:

·        A continued focus on communicating the agreed vision for Auckland’s mobility in the future, focused on public transport and greater use of walking, cycling and micromobility. 

·        More specifically, the work programme should reflect the outcomes of Transport Emissions Reduction Plan (TERP).  Subject to the completion of TERP (alongside strategies relating to parking and the refreshed cycling programme business case) and agreed associated delivery resources and other associated changes, this is likely to mean:

o   Maintenance or improvement of levels of service for public transport and active modes

o   accelerated delivery of safe cycling infrastructure across Auckland

o   implementation of the 2022 Parking Strategy

o   demand management projects such as congestion charging and parking pricing initiatives as per the Parking Strategy – behaviour change and revenue. 

·        Continued efforts to achieve ATs ambitious Vision Zero Transport Safety Strategy of a 65% reduction in Deaths and Serious Injuries (DSI) between 2018 and 2030 – especially given recent reporting showing increases in DSI.  This can also deliver wider benefits such as amenity improvements and emissions reductions.

·        Clearly state agreed covid-recovery targets for Public Transport, while maintaining a long-term vision of what a PT-oriented city will look like, and a pathway to implement such a vision.

·        Continue to support wider transport projects around the city, in particular CRL and the need to get ready for its opening in 2025 (end of the period for this SOI).

·        Capital rephasing/reprioritization as required, reflecting the emissions and financial contexts.

·        Council understands that AT is planning to review aspects of its governance.  This should ensure that AT has structures and a culture that can deliver urgent transformation, and the changes to deliver this should be outlined through the SOI (An example might be: building into business cases direct consideration of emission and safety impacts and explain how all projects are consistent with the reduction pathways).

33.     Clearly the highly constrained financial context will have a significant determination on the final nature of AT’s work programme for the coming years.  Where possible, public transport services should be maintained to ensure the city continues to progress towards a new model of mobility.  Similarly, the financial situation and the importance of decarbonizing the transport system mean that traditional approaches to functions such as renewals and maintenance of roading should be examined closely.  Where possible, programmes of activities in the road corridor should be aligned if timing of upgrades and asset condition management can coincide, and funding considerations of our partners permit. 

Eke Panuku

34.     Council and Eke Panuku will begin working together on the medium-long term urban regeneration programme in 2022, which should be highlighted in the 2022-2025 SOI. The original Eke Panuku priority locations were agreed in 2015, with work in some of these locations due to be completed in the next couple of years.  This work will include how urban regeneration will be funded in the future. This is a CCO review recommendation (recommendation 8) and the work will feed into decision-making on the 10-year Budget 2024-2034.

35.     Further priorities to be reflected in the 2022-2025 SOI are:

·        ongoing work to improve the understanding of the overall role of Eke Panuku, purpose and work programme. This will include:

Providing a clear overview of the three-year work programme in the SOI, which links outcomes, activities and performance measures. This should include providing clarity on phases of work for each priority location (link to CCO review recommendation 9)

Working with council on guidance on how public and commercial interests are balanced (CCO review recommendation 42).  

Amending the Eke Panuku constitution to make clear its twin purpose of redeveloping urban areas and managing the council’s non-service property (CCO review recommendation 10).

·        continuing to deliver on agreed urban regeneration priority location areas, including town centre planning and improvements, property development and placemaking. The city centre has been added to the waterfront priority location and Eke Panuku has been endorsed as the lead agency for the implementation of the City Centre Masterplan 2020 (agreed at the Planning Committee on 30 November 2021). Eke Panuku will lead a team from across the council group and will build on work delivered over the last decade.

·        an increased focus on any infrastructure implications of Eke Panuku work in priority location areas. This is in the context of infrastructure funding and financing constraints for the council group.

·        continuing to manage the council’s non-service property and providing property-related services to the council group.  Council is intending to develop a group property strategy or ‘property ownership framework’ (CCO review recommendation 14). This will include working with Eke Panuku on the strategic direction for non-service property. Council will provide clarity around timeframes for this work by March 2022.

·        the partnership with Haumaru Housing to increase the (net) number of affordable homes for older people in their portfolio. 

·        working with Auckland Transport on transport-oriented development opportunities and with local boards on property optimisation and placemaking. 

Watercare

36.     The broader context for Watercare is framed by the recent government announcements on water reform and the expected establishment of a national Transition Unit by the start of the 2022/23 financial year, as well as council’s likely adoption of the Auckland Water Strategy. These are going to require the council and Watercare to work very closely together over the coming year.

37.     Therefore, the priorities for the SOI are: 

Water Reform

·        work collaboratively with Auckland Council and the National Transition Unit on transition to a new water services entity

·        work with council to provide advice and support to the government on the development of an economic regulator

Water use efficiency, security and diversity of sources

·        continue to deliver to new drinking water standards, as well as environmental and levels of service

·        deliver safe and cost-effective water and wastewater services

·        continue to focus on water efficiency (for example Economic Level of Leakage and encouraging Aucklanders to be efficient with water) and innovation across the network to improve water service delivery

Auckland Water Strategy

·        implement the Auckland Water Strategy aligned with the initial direction agreed in December 2021, including recognising Auckland’s Vision for te mauri o te wai o Tāmaki Makaurau, the life sustaining capacity of Auckland’s water is protected and enhanced.

·        work with Auckland Council on the implementation of the National Policy Statement on Freshwater Management

·        implement the Watercare aspects of the adopted water consumption targets (April 2021) and continue to work collaboratively on modelling, monitoring and reporting of targets

·        update Watercare’s Auckland Efficiency Plan to align with the Auckland Water Strategy

·        continue to deliver on the Asset Management Plan and align this plan with the Auckland Water Strategy

·        work with council to review and update the Auckland Metropolitan Drought Management Plan, including council agreement on the triggers and thresholds for using different water sources

Delivering for communities

·        all aspects of service delivery will be customer and community centered, recognising Watercare's role in the community it operates in, as well as customers. This will be increasingly important in the evolution towards a three waters entity

·        programmes are developed and measured that assist Aucklanders to develop their water literacy, so that they are better prepared for and are able to cope with the impacts of extreme water-related events

·        work with council on a plan to ensure all Aucklanders have equitable access to essential services

Climate Change

·        monitor and model climate impacts on the water system, including impacts and scenarios for individual sources, to understand the resilience of the network and inform a precautionary approach to operational source management

·        plan to be carbon zero on or before 2050, this will include considering embodied carbon in infrastructure delivery and potential measures to assess performance improvement in this area

·        work with council on scenario planning and adaptation investment pathways with a ‘whole of infrastructure’ and ‘whole of community’ approach (i.e., Parakai/Helensville).

Auckland Unlimited

38.     The broader context for Auckland Unlimited is framed by COVID-19 recovery planning and the evolution and/or adaptation of Auckland in a post-Covid environment, under the new national COVID-19 Protection Framework (traffic light system).

39.     Council expects Auckland Unlimited to continue delivery of activities set out in the 2021-31 Long-term Plan, including:

·     continued delivery of programmes and activities aimed at helping make Auckland a desirable place to live, work, visit, invest and do business. 

·     continued management of venues, collections and experiences aimed at enriching life in Auckland through engaging people with the arts, environment, sports and events.

40.     There are a series of discussions already progressing or planned between council and Auckland Unlimited on a number of key priorities.  We expect these will be reflected in the 2022-2025 SOI work programme.  They are:

·     progressing a single stadium operator for the city’s four stadiums with the Eden Park Trust Board (a CCO review recommendation). It is noted any solution will need to consider the implications of the Commerce Act 1986. Further engagement with council will occur ahead of any final approval sought from council.

·     working collaboratively with MOTAT to develop integration options for consideration by the Board of Auckland Unlimited and the MOTAT Board in the first instance.  Engagement will also occur with council on these options, ahead of any final approval sought from council.  This work progresses a CCO review recommendation.

·     reactivating Auckland and the city centre as borders open and visitors return, through targeted campaigns and a coordinated calendar of activity. 

·     advancing work on the Aotea Creative Quarter and working closely with Eke Panuku as the lead agency for the implementation of the City Centre Masterplan (PLA/2021/136).

41.     There is also a significant body of work aimed at fully realising the benefits and opportunities from the merger of the former ATEED and Regional Facilities Auckland, through implementation of Auckland Unlimited’s target operating model.  We expect this to be a focus of the 2022-2025 SOI.

42.     We note that funding for visitor economy/destination related activity is subject to decisions on the final 2022/23 Annual Budget.  There are also decisions pending regarding any leave to appeal to the Supreme Court, following the recent Court of Appeal decision.  This decision overturned the High Court’s decision to decline an application for judicial review of Auckland Council’s 2017 and 2018 decisions to introduce an accommodation provider targeted rate (APTR).  As such, this will not be addressed in the 2022/23 letter of expectation.

 

 

Tauākī whakaaweawe āhuarangi

Climate impact statement

43.     Addressing the challenges that climate change presents for Auckland continues to be a priority for the council group and this is reflected in the common expectations proposed in the letters of expectation and in the specific direction provided to each CCO.

44.     The decision to approve proposed content for substantive CCO letters of expectation does not have a direct impact on greenhouse gas emissions.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

45.     The letters of expectation are one part of an overall accountability framework for substantive CCOs. The expectations have been drafted based on the priorities in the 10-year Budget 2021-2031 and the Mayor’s proposal for the 2022/23 annual budget, with input from subject matter experts from across the council.

46.     It is suggested that the letters include a closing paragraph which invites CCOs to contact the Manager CCO Governance and External Partnerships should they wish to discuss or clarify any aspects of the letter.

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

Local impacts and local board views

47.     The governance relationship between the substantive CCOs and the council sits with the Governing Body, and therefore local boards have not been consulted on issues for inclusion in the letters of expectation.

Tauākī whakaaweawe Māori

Māori impact statement

48.     Māori outcomes are a priority for the substantive CCOs and this is reflected in the common expectations proposed in the letters of expectation. 

Ngā ritenga ā-pūtea

Financial implications

49.     Through the letters of expectation, CCOs are being asked to focus on continued delivery of the priorities and activities agreed through the 10-year Budget 2021-31 and as updated through the 2022/23 annual budget process. 

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

50.     There is a risk that CCOs may misunderstand the expectations provided in the letters of expectation. However, utilising the workshop approach prior to the LOEs being finalised should largely mitigate this risk. There are also additional opportunities for CCOs to clarify the expectations, whether by discussion with Council staff or through liaison councillors.

51.     Additionally, the process of reviewing the draft SOIs after they are received on 1 April 2022 provides another opportunity to ensure that expectations in the LOEs are responded to appropriately. 

Ngā koringa ā-muri

Next steps

52.     Council staff will draft the letters of expectations based on the resolutions of this committee and they will be finalised under delegation of the Mayor and Deputy Mayor and issued prior to Christmas 2021.

53.     CCOs will then begin drafting their SOIs for submission to Council in 2022. 

54.     Given the uncertainty of the financial situation of Council through the annual budget process staff recommend that the Committee approves an extension of the statutory deadlines for all SOIs in 2022. This ability to extend deadlines by one month is provided for in the Local Government Act 2002 (schedule 8, section 4). It would extend:

·    the date of submission of the draft SOIs to 1 April 2022

·    the date when the boards must consider shareholder feedback to 1 June 2022, and

·    the date for final submission of SOIs to 31 July 2022.

Ngā tāpirihanga

Attachments

There are no attachments for this report.      

Ngā kaihaina

Signatories

Authors

Sarah Johnstone-Smith - Principal Advisor

Claire Gomas - Principal Advisor

Rachel Wilson - Principal Advisor

Authoriser

Edward Siddle – Acting Manager - CCO Governance & External Partnerships

 


Council Controlled Organisation Oversight Committee

14 December 2021

 

CCO Review: Implementation Programme Update

File No.: CP2021/19230

 

  

 

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.       Good progress continues implementing the recommendations of the Review. Three recommendations have been completed recently and 20 of the 64 recommendations are now fully implemented.

4.       Implementation of 35 recommendations are underway and many are well advanced. One of the areas where substantial progress has been made is between CCOs and local boards to improve local engagement, better integrate planning and improve reporting of information from CCOs to local boards on projects in their area.

 

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.       Implementation of 35 recommendations is underway and many are well advanced.

7.       Twenty of the 64 recommendations of the Review are now fully implemented. Three recommendations (27, 50 and 59) have been completed since the latest update to the committee in November 2021:

·    The CCO Oversight Committee has meet with each CCO in 2021 to build understanding of its business and culture and to informally build relationships. The visit to Watercare took place in early August. Sessions with Auckland Transport, Auckland Unlimited and Eke Panuku were online in October and November due to COVID-19 restrictions. This recommendation has now been noted by the cross-group Review Implementation Group as business as usual and visits to each of the CCOs are being scheduled for 2022.

·    Governance Fundamentals introductory modules have been launched for new staff explaining the council’s governance and CCO model. Modules are 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. The council’s Governance Capability team and cross-group Review Implementation Group have agreed this approach is now business as usual. Further enhancements to the Governance Fundamentals module will be developed in 2022.

·    The council’s Governance Capability team and the Review Implementation Group have agreed that the council’s quality advice standards are now being used across the group. Resources to embed the standards have been provided to CCOs to support their own actions. Council’s quality advice training is open to CCO staff to attend and CCOs have also developed training for their staff. A quality advice workshop was delivered to Eke Panuku staff in May 2021 and Watercare is planning a tailored quality advice workshop for early 2022.

8.       Nine 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

Note, there are 65 recommendations recorded in the chart as recommendation 3 on a) the Museum and b) MOTAT is split into two for reporting purposes.

 

Recent progress

9.       Recent progress on the implementation programme is summarised below.

Auckland Unlimited

10.     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, updates on the work are being provided in confidential workshops for this committee. The next workshop is scheduled on 15 December 2021.

Auckland Transport

11.     Auckland Transport is working to obtain a programme-based funding approval from Waka Kotahi which would simplify the overall funding process. A draft Memorandum of Understanding has also been prepared to cover the process for ensuring Auckland Transport receives its targeted National Land Transport Fund allocation, and for substituting projects if required. 

 

12.     Auckland Transport undertook a design sprint to review its project development processes for small projects. Work is progressing to implement the improvements. A design sprint is currently underway to look at opportunities for speeding up delivery and managing the effect on customers from temporary traffic management on construction sites.

Eke Panuku

13.     Work is underway for the council organisation to assume responsibility for the process to support decision making by elected members on which non-service properties to sell. This excludes unlock and transform areas which will remain the responsibility of Eke Panuku.

Watercare

14.     Watercare continues to support the overall development of the water strategy with a focus on the water supply and demand work streams while also contributing to the development of other workstreams. Work on economic level of leakage is being included in the water strategy, along with updated per capita water consumption targets. Watercare management has been involved in recent political workshops.

15.     Watercare and Auckland Transport have confirmed the next asset management plan update will be provided to council by the end of June 2022. 

16.     Council, Auckland Transport and Watercare have appointed a project manager and nominated project team members for the Better Faster (CCO) Consents project. The strategic assessment will be considered by sponsors in December 2021. Auckland Transport and Watercare have committed to send representatives to council’s Regulatory Services' Stakeholder Reference Group meetings in 2022.

Accountability

17.     The water strategy and strategic stadium work are underway, which together with economic development, were the strategies recommended by the Review. There has been further work across the group to identify and review prioritised topics where more strategic direction is needed by CCOs.

18.     Improvements to the group strategic planning function are being addressed as phase 2 of the group strategic planning project. An online workshop to support the development of letters of expectation was held between CCO chairs, chief executives and the CCO Oversight Committee on 10 November 2021.

19.     CCOs have provided feedback into the planning work underway for the elected members induction programme following the 2022 election.

Culture

20.     Following the communication of the 2021 Elected Members Survey results, the research report on the findings from focus groups is being finalised for completion in December 2021.

CCO and local board engagement (recommendation 34)

21.     The Review recommended that CCOs and local boards engage meaningfully and better integrate planning, CCOs develop joint local board engagement plans, and improve reporting of information to local boards on projects in their area (recommendation 34).

22.     The primary deliverable for Recommendation 34 is a joint engagement plan for each local board. The new engagement plans provide one location where:

·    all CCOs can see what the others are planning in each local board area

·    names and contacts for each CCO and local board can be shared

·    local boards can highlight projects likely to be of most significance to them.

23.     Each quarter CCOs and local boards will have the opportunity to update and amend the engagement plan through the local board business meeting agenda. 

24.     Further information on the work underway between CCOs and local boards to improve local engagement and reporting is provided in Attachment A.

Tauākī whakaaweawe āhuarangi

Climate impact statement

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

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

26.     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

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

28.     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

29.     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.

30.     Independent Māori Statutory Board and Tāmaki Makaurau Mana Whenua Forum secretariats have developed guidance material for the approval of the Board and Forum to explain their respective roles and how CCOs should engage with each entity. The Board has approved the material and the Forum is scheduled to consider it in December 2021.

31.     The Auckland Unlimited board met with the Tāmaki Makaurau Mana Whenua Forum in November 2021 and the Auckland Transport board is to meet with the Independent Māori Statutory Board in early 2022.

32.     All CCOs have undertaken work to align their plans that set out commitments to Māori to the new Kia Ora Tāmaki Makaurau Outcomes Framework. Guidance has been completed for council teams and CCOs on the development of Achieving Māori Outcomes plans. 

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

34.     The council/ CCO chief executives’ group has initiated a quarterly meeting with the Independent Māori Statutory Board chief executive focused on Māori outcomes, with the most recent scheduled for December 2021.

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.     The current COVID-19 restrictions are continuing to impact on the speed on implementation and milestone timeframes for some recommendations. However, no major impacts across the programme have been reported.

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 regularly at CCO Oversight Committee meetings.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Memorandum - CCO Review – Recommendation 34 (7 December 2021)

27

     

Ngā kaihaina

Signatories

Author

Trudi Fava - CCO Programme Lead

Authoriser

Edward Siddle – Acting Manager - CCO Governance & External Partnerships

 


Council Controlled Organisation Oversight Committee

14 December 2021

 

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Council Controlled Organisation Oversight Committee

14 December 2021

 

Liaison councillors' updates

File No.: CP2021/17852

 

  

 

Te take mō te pūrongo

Purpose of the report

1.      To tūtohi / receive an update from liaison councillors to the boards of Council Controlled Organisations (CCOs).

Whakarāpopototanga matua

Executive summary

2.       In February 2020, the Council Controlled Organisation Oversight Committee resolved to establish the role of a CCO liaison councillor (Resolution number CCO/2020/3).

3.       The key purpose of the liaison councillor role is to develop trusting relationships with the CCOs, to allow a better exchange of information. Liaison councillors can act as a key point of contact when specific issues arise, and provide advice when issues are likely to be of high public interest. They can provide the CCO with Governing Body perspectives which may help board decision-making, while at the same time being able to provide Governing Body colleagues with information about the rationale and detail of board decisions.

4.       Liaison councillors are required to regularly report verbally to the CCO Oversight Committee, or in writing if unavailable to attend in person, about activities undertaken in the role and issues arising.

5.       Liaison councillors are allocated to each CCO as follows:

·        Auckland Transport: Deputy Mayor Bill Cashmore and Cr Chris Darby

·        Auckland Unlimited: Cr Richard Hills and Cr John Watson

·        Eke Panuku Development Auckland: Cr Efeso Collins

·        Watercare: Cr Linda Cooper.

 

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Oversight Committee:

a)      tūtohi / receive the updates from liaison councillors to the Council Controlled Organisations.

 

 

Ngā tāpirihanga

Attachments

There are no attachments for this report.     

Ngā kaihaina

Signatories

Author

Duncan Glasgow - Kaitohutohu Mana Whakahaere / Governance Advisor

Authoriser

Edward Siddle – Acting Manager - CCO Governance & External Partnerships

 


Council Controlled Organisation Oversight Committee

14 December 2021

 

Summary of Council Controlled Organisation Oversight Committee information memoranda and briefings (including the forward work programme) - 14 December 2021

File No.: CP2021/17857

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To tuhi / note the progress on the forward work programme appended as Attachment A.

2.       To tūtohi / receive a summary and provide a public record of memoranda or briefing papers that may have been held or been distributed to Council Controlled Organisation Oversight Committee members.

Whakarāpopototanga matua

Executive summary

3.       This is a regular information-only report which aims to provide greater visibility of information circulated to Council Controlled Organisation Oversight Committee members via memoranda/briefings or other means, where no decisions are required.

4.       The following memoranda have been distributed:

Date

Subject

7/12/2021

CCO Review – Recommendation 34

8/12/2021

Council-controlled Organisations Annual Reports (2020/2021)

 

5.       Note that, unlike an agenda report, staff will not be present to answer questions about the items referred to in this summary.  Council Controlled Organisation Oversight Committee members should direct any questions to the authors.

 

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Oversight Committee:

a)      tuhi / note the progress on the forward work programme appended as Attachment A of the agenda report

b)      tūtohi / receive the Summary of Council Controlled Organisation Oversight Committee information memoranda and briefings – 14 December 2021.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Forward Work Programme

35

b

CCO Review - Recommendation 34 (Under Separate Cover)

 

c

Council-controlled Organisations Annual Reports (2020/2021) (Under Separate Cover)

 

     

Ngā kaihaina

Signatories

Author

Duncan Glasgow - Kaitohutohu Mana Whakahaere / Governance Advisor

Authoriser

Edward Siddle – Acting Manager - CCO Governance & External Partnerships

 


Council Controlled Organisation Oversight Committee

14 December 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

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.

Updates were received in May 2021, June 2021, August 2021, September 2021, October 2021 and November 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, September 2021, October 2021 and November 2021.

 

 

 

 

 

 

 

 

 

 

 

 

 

Joint operating model for Auckland stadiums

Auckland Unlimited

The recommendations from the CCO Review report were received by the Governing Body on 27 August 2020 (Resolution number: GB/2020/89).

 

Recommendation 2 was that “the merged entity explores, at the council’s direction, the critical need for joint management and operation of the city’s four stadiums with the Eden Park Trust.”

It is expected a confidential report will be provided in March 2022 for committee approval of the first of a series of decision-making gates.

 

Progress to date:

Confidential workshop held 7 July

Confidential workshop held 22 September

Confidential workshop to be held 15 December.

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

Progress to date:

Confidential Workshop held 10 November 2021.

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Completed

Area of Work

Committee Role

(decision and/or direction)

Decision

Quarterly, Half-Year and Annual Reports

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.

First quarter reports were received for substantive council-controlled organisations in December 2019, December 2020, and November 2021.

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 received in October 2021.

Annual reports for non-substantive CCOs received in October 2021.

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 2020-2023, 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)

Ports of Auckland statement of corporate intent

To consider POAL’s final statement of corporate intent.

Decision to receive Ports of Auckland Limited’s final Statement of Corporate Intent 2021-2024

(Link to decision CCO/2021/46)

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.

Decision to receive annual reports in October 2021

(Link to decision CCO/2021/47)

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.

 

Decision to receive annual reports in October 2021

(Link to decision CCO/2021/47)

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)

CCO site visits

To implement CCO Review recommendation 27 - The governing body spends half a day each year visiting each CCO to better understand its business and culture and to informally build relationships.

Watercare site visit – 10 August 2021

Auckland Transport briefing in lieu of site visit due to Covid – 19 October 2021

Auckland Unlimited briefing in lieu of site visit due to Covid – 8 November 2021

Eke Panuku briefing in lieu of site visit due to Covid – 16 November 2021

 


 

Kōmiti Aromātai Whakahaere Kaupapa Kei Raro I Te Maru O te Kaunihera / CCO Oversight Committee
Forward Work Programme 2022

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 2022

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Ports of Auckland - Statement of Corporate Intent

CCO Governance and External Partnerships

Under legislation Ports of Auckland Limited must deliver annually a statement of corporate intent not later than 1 month after the commencement of each financial year.

Seeking committee feedback of draft 2022/25 Ports of Auckland Limited Statement of Corporate intent in August.

Seeking committee approval of final 2022/25 Ports of Auckland Limited Statement of Corporate intent in September.

Progress to date:

 

 

 

 

 

 

 

 

 

 

 

 

Draft and Final SOIs

CCO Governance and External Partnerships

Under legislation CCOs must deliver annually a draft statement of intent to its shareholders by 1 March 2022

Under legislation CCOs must deliver annually a final statement of intent to its shareholders by 30 June 2022.

These dates can be extended one month by resolution of council under section 4, schedule 8 of the LGA 2002.  This is a recommendation of the LOE report on 14 December 2021 to the Committee and a similar recommendation may be made in 2022. 

Covers: AT, Watercare, Auckland Unlimited, Eke Panuku

Manukau Beautification Charitable Trust, COMET Auckland and Contemporary Art Foundation

Seeking committee approval of draft 2022/25 Statements of Intent from its substantive and non-substantive CCOs.

 

Seeking committee approval of final 2022/25 Statements of Intent from its substantive and non-substantive CCOs.

Progress to date:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 2022.

Progress to date:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 2022.

Progress to date:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 2022.

Progress to date:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auckland International Airport – end of year results

AIAL is an NZX listed company in which council has a 18.09% shareholding.

AIAL 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 August 2022.

Progress to date:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 2022/2023 letters of expectation.

A report will be provided in December 2022.

Progress to date:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Joint operating model for Auckland stadiums

Auckland Unlimited

The recommendations from the CCO Review report were received by the Governing Body on 27 August 2020 (Resolution number: GB/2020/89).

 

Recommendation 2 was that “the merged entity explores, at the council’s direction, the critical need for joint management and operation of the city’s four stadiums with the Eden Park Trust.”

It is expected a confidential report will be provided in March 2022 for committee approval of the first of a series of decision-making gates.

Progress to date:

Confidential workshop held 7 July 2021.

Confidential workshop held 22 September 2021.

Confidential workshop to be held 15 December 2021.

 

 

 

 

 

 

 

 

 

 

 

 

 

 



[1] http://infocouncil.aucklandcouncil.govt.nz/Open/2021/06/CCO_20210622_AGN_10103_AT.PDF

[2] https://ourauckland.aucklandcouncil.govt.nz/media/trclridg/annual-budget-2022-2023-mayoral-proposal-december-2021-final.pdf