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, 26 April 2022

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, MNZM

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

 

19 April 2022

 

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

26 April 2022

 

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          CCO Review implementation                            11

9          Approval of shareholder comments on draft CCO Statements of Intent 2022-2025               23

10        Liaison councillors' updates                           263

11        Summary of Council Controlled Organisation Oversight Committee information memoranda and briefings (including the forward work programme) - 26 April 2022                             265

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:

confirm the ordinary minutes of its meeting, held on Tuesday, 22 March 2022, 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

26 April 2022

 

CCO Review implementation

File No.: CP2022/03500

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To provide a comprehensive overview of implementation of the Council-controlled Organisations (CCO) Review (the Review).

Whakarāpopototanga matua

Executive summary

2.       The council group has made substantial progress implementing the Review recommendations and making changes to the CCO model, accountability and group culture.

3.       An early achievement was the formation of Auckland Unlimited through the merger of Auckland Tourism, Events and Economic Development and Regional Facilities Auckland in December 2020.

4.       Accountability mechanisms have been strengthened through an updated CCO accountability policy, development of a new statement of expectations, and improved process for developing letters of expectations and clearer structures for statements of intent and CCO reporting.

5.        New strategies have been developed for water and economic development to guide the work of the group. The exploration of joint management and operation of the four stadiums in Tāmaki Makaurau is well advanced.

6.       There has a been a fundamental change to the way CCOs work with local boards. New joint engagement plans provide clarity about how local boards can influence CCO projects in their area and are a basis to better integrate planning and communications.

7.       Changes have been made to improve public accountability. All statements of intent now include a measure of complaints responsiveness and there has been a concerted effort to improve public consultation and communications locally, supported by the new engagement plans.

8.       Group policies are in place for procurement and remuneration. Updated brand guidelines aim to ensure the pōhutukawa logo is used on all council-funded services, activities and facilities.

9.       The cultural shift towards greater collaboration and stronger relationships has been achieved by instigating regular meetings of the group chief executives and CCO chairs, and visits between this committee and CCO boards. At a staff level, there is clear guidance when one of the CCOs is coordinating the work of the group in a local area. Practice is being shared across the group to improve services in areas such as asset management and complaints.

10.     As a result of the changes instigated by the Review, the leadership of the council group is working more consistently together, including on the response to strategic challenges like the climate crisis and to the financial and operational impacts of COVID-19.

11.     Better group collaboration at all levels also means that the council is in a stronger position to represent the needs of Tāmaki Makaurau within the range of government reforms and strategic reviews underway, such as three waters reform, the National Policy Statement on Urban Development, and resource management reform.

12.     A high-level review of the implementation programme has been undertaken by the General Manager, Risk and Assurance, which found that the reporting on progress to this committee was accurate and complete and there are no additional known risks to those reported previously.

13.     While most recommendations will be fully implemented by June 2022, some major programmes initiated as a result of the Review, such as the Group Shared Services project and Better Faster CCO Consents will extend beyond 2022.

14.     The group chief executives will continue to monitor implementation of outstanding recommendations. Those recommendations requiring governance approval will be reported to the relevant governing body committee.

Ngā tūtohunga

Recommendations

That the Council Controlled Organisation Oversight Committee:

a)      receive the overview of the implementation programme for the Council-controlled Organisations Review.

b)      note that the Group Chief Executives Forum will continue to monitor implementation of outstanding Review recommendations. 

Horopaki

Context

15.     The Review investigated how effective the CCO model is and whether there were any viable alternatives; whether the council has adequate accountability measures and is using them effectively, as well as accountability to Māori and the public; and CCO culture.

16.     The Review observed that CCOs are a significant part of the council business and there is generally good support for the model as right for Auckland. Clear benefits were evident from the CCO model but there was room for improvement.

17.     The Review also found that a key accountability failing by the council was the lack of strategic direction given to CCOs.

18.     In terms of culture, the Review found little evidence of a group culture and identified a need for greater collaboration across CCOs (and with the council) when working with and responding to the public.

19.     The Review made 64 recommendations noting that the recommendations should be considered as a package. 

20.     The council formally received the independent panel’s Review report on 27 August 2020. The governing body agreed the Review recommendations and requested the council and CCOs work together on their implementation (GB/2020/89).

21.     This committee has received regular progress reports on the Review’s implementation.

22.     Implementation of the Review over the past 18 months has taken a determined effort across the council group, in the context of the emergency budget and managing the complexities of the COVID-19 operational response and staffing impacts.

Tātaritanga me ngā tohutohu

Analysis and advice

23.     Thirty-five of the 64 recommendations of the Review are now fully implemented. Nearly all the other recommendations are well advanced. Work on the medium-long term urban regeneration programme for Eke Panuku and councillor liaison review are scheduled to get underway by June 2022.

24.     Changes to implement the recommendations of the Review and work underway are described below.


 

 

Model

25.     The Review found that the CCO model remains the right one for Auckland, as it has a focus on strong business disciplines, agile decision-making, operational efficiencies and the application of specialist skills and expertise. The Review made 19 recommendations for improving the model.

Structural change [Recommendation 1]

26.     A significant improvement identified in the Review was to merge Auckland Tourism, Events and Economic Development and Regional Facilities Auckland. This reduced the number of substantive CCOs from five to four. The merged entity, Auckland Unlimited, was formed in December 2020 and has provided a platform for a strategic and coordinated approach to the region’s cultural institutions and activities, venue management, destination management and economic development. While Auckland Unlimited is still young, benefits emerging include:

·        Cost reduction as a result of a single governance and management structure.

·        A more coordinated approach to the attraction, delivery and development of major sporting and cultural events, performances, exhibitions, and business events across the council family.

·        The development of a cultural framework and programme of work for the region’s cultural organisations with the aim of increased collaboration, greater collective impact and more effective use of funding.

·        The planned development of a new digital content, engagement and transactional platform which showcases Auckland and supports great online experiences for Aucklanders and visitors across the region (Digital Auckland). 

Alignment of regional cultural institutions [Recommendations 2-3]

27.     Auckland Unlimited has made significant progress on the Review’s recommendations to explore closer alignment with other owners of major regional facilities:

·        Auckland Unlimited and Eden Park Trust are working together to explore the joint management and operation of the four stadiums in Tāmaki Makaurau. This committee is being briefed on the workstreams in confidential workshops, with the latest in December 2021and next planned for May 2022.

·        Auckland Unlimited is exploring with MOTAT how the Review recommendation on bringing MOTAT into Auckland Unlimited might be implemented in practice with the aim to have an approach to share with the council in June 2022.

28.     Conversations are at an earlier stage between the council and the Auckland War Memorial Museum on closer alignment. The Rangatira group of governing body and Museum Board members has been focussed to date on discussing levy matters but is potentially a good platform to actively pursue greater strategic collaboration between the council group and the Museum and explore any legislative changes.

Transport decision making and funding [Recommendations 4-7]

29.     The Review noted when legislative change in 2013 gave Auckland Transport responsibility for setting the city’s transport priorities in the regional land transport plan (RLTP) it left the council in a unique position among local authorities of having no statutory role in developing this transport strategy in its jurisdiction. To address this the council was more closely involved in the development of the 2021 RLTP and the plan was endorsed by the Planning Committee in June 2021 (PLA/2021/61) before being approved by the Auckland Transport board. There will be further refinements to the way the council collaborates in the development of the RLTP in future iterations.


 

 

30.     Auckland Transport has undertaken a number of design sprints to speed up development and delivery of small projects, which was highlighted as an issue in the Review. These include a more efficient approach to early parts of the project pipeline to speed up delivery, the introduction of a strengthened internal project review and approval process from subject matter experts led by the Chief Engineer’s group, and more flexibility to deal with unplanned work. This is an ongoing improvement programme, with further work underway looking at opportunities in temporary traffic management on construction sites for speeding up delivery and managing the effect on customers.

31.     There have been several improvements to streamline transport funding:

·        Waka Kotahi has approved an increase in Auckland Transport’s delegated funding to $15 million. A new Delegated Funding Agreement was signed in August 2021.

·        A Memorandum of Understanding (MOU) has been signed between Auckland Transport and Waka Kotahi to ensure Auckland Transport receives its targeted land transport fund allocation, and for substituting projects if required. The MOU provides an explicit expectation that $2.508 billion of funding will be provided for Auckland Transport's projects over the 2021-2024 period.

·        The Waka Kotahi Board has also indicated that it supports the proposal for programme-based funding and work is underway within Auckland Transport on the details of work suitable for programme-based funding approvals.

32.     A framework has been developed that clarifies roles between Auckland Transport and the council to address the confusion and overlap identified by the Review from both organisations having responsibility for road-related bylaws.  This work is currently with Auckland Transport for review. 

Eke Panuku model [Recommendations 8-14]

33.     Eke Panuku undertook a review of its overheads as part of the Emergency Budget and 10-year Budget 2021-2031, which was peer reviewed by the council’s Finance team.

34.     Initial work on property ownership and management was completed in May 2021, confirming the role Eke Panuku have managing non-service property on behalf of the council.  Community Facilities will lead property acquisitions, disposals and exchanges within the council organisation for open space and community facilities. Scoping the transition of roles is underway and once completed, responsibility for the process to support decision making by elected members on which non-service properties to sell (excluding unlock and transform areas) will transfer from Eke Panuku to the council organisation. Eke Panuku will continue to provide a shared service for disposal transactions.

35.     Eke Panuku is working to provide a clearer description of their activities, and links between investments, deliverables and performance targets in its 2022-2025 statement of intent.

36.     Council and Eke Panuku will start work on the medium-long term urban regeneration programme in 2022. This work will include how urban regeneration will be funded in the future, and will feed into decision-making in the next 10-year Budget.

37.     Council has yet to start work on a property strategy. The CCO review suggested that a property strategy could set principles for buying, managing and selling property and guidance on identifying and prioritising the objectives for different classes of assets.

Watercare model [Recommendations 15-19]

38.     The council, working with Watercare, has developed and adopted the Auckland Water Strategy, completed in March 2022 (ECC/2022/54). Watercare will report quarterly progress towards the strategy’s demand targets including per capita demand, smart-meter rollout and network leakage.


 

 

 

39.     To improve the coordination of building infrastructure for urban growth across the council group, Watercare and Auckland Transport are providing asset management plan information to council annually. The council is also convening a joint council and CCO Asset Management Community of Practice to coordinate and advance joint asset management planning.

40.     A new approach to group risk includes a template for quarterly CCO risk reporting to the Audit and Risk Committee. Reviews and improvements to this template are ongoing. Group risk managers also continue to explore opportunities for an online risk reporting platform. A group approach is being taken to meeting the climate-related financial disclosure reporting standards, which will include assessments using climate scenario analysis, process for managing climate risks across the group and a climate-risk governance assessment.

41.     The Better Faster Consents project (CCO) has been established to resolve consent processing delays when input to the process is required by Watercare and Auckland Transport. It will agree clear performance levels for the CCOs and establish a mechanism for objections to the way that codes of practices are applied. An internal qualitative review has been undertaken that identified causes of processing delays and possible solutions. Gathering and sharing data and a collaborative approach between the parties underpin the project.

Accountability

42.     Improvements to how council sets direction for CCOs and monitors results have been a major part of the Review implementation programme. The Review made 24 recommendations for improving CCO accountability.

Group strategic planning [Recommendations 20, 33]

43.     In response to the Review’s call that the council produce strategies that give CCOs more direction, the group has:

·        developed an Economic Development Action Plan, jointly led by Auckland Unlimited and the council, which was approved by the Parks, Arts, Community and Events Committee in July 2021 (PAC/2021/23).

·        completed the Auckland water strategy, approved by the Environment and Climate Change Committee in March 2022 (ECC/2022/54).

44.     The work currently underway between Auckland Unlimited and Eden Park Trust to progress a single stadium operator for the region’s stadiums will inform the future development of a stadium strategy.

45.     The Thriving Town Centres Guidelines endorsed by the Planning Committee (PLA/2022/33) prepared by Eke Panuku with significant input from the council group, demonstrate collaborative work to support place-based implementation of council strategies.

46.     The commissioning and prioritisation of collective strategy and policy for the group has been incorporated into the operating model work programme for Auckland Council which aims to be completed by October 2022 to engage with the new term of council. Scoping of the programme has been completed with regular updates provided to the Group Chief Executives Forum and CCO chairs.


 

 

47.     The council has the ability to exercise its statutory powers under section 92 of the Local Government (Auckland Council) Act 2009 that a CCO must act consistently with the relevant aspects of any plan or strategy.

Letters of expectation and statements of intent [Recommendations 21, 23]

48.     The work to improve group financial planning is ongoing. Changes have been made to how the council’s letters of expectation are developed and CCO statements of intent are presented.

·        A workshop has been introduced to support the development of letters of expectation between CCO chairs, chief executives and this committee.

·        A new template was jointly developed between council and CCOs for statements of intent with Part 1 providing the strategic overview and Part 2 the annual statement of performance expectations.

·        The group financial position and challenges are discussed regularly at meetings of the group chief executives.

Forward looking reporting [Recommendation 24]

49.     Forward looking reporting has been introduced, with CCOs concentrating on emerging risks and developments in first quarter and third quarter reporting.

Statement of expectations [Recommendations 22, 42]

50.     The council has used the new legislative mechanisms available under section 64B of the Local Government Act 2002 to set out a statement of expectations (SOE) which was approved by this committee in June 2021 (CCO/2021/26). The SOE sets out how the Auckland Council group works together, and how CCOs interact with council, statutory obligations and other Auckland Council specific expectations.

51.     The SOE makes it clear that CCOs may have commercial and public good objectives. The SOE states that the balance of different objectives of each CCO should be reflected in the statement of intent and agreed with the council.

Relationships [Recommendations 25-32]

52.     The Review highlighted that good relationships and regular interactions based on trust and shared goals are key to the effectiveness of formal governance mechanisms and made a number of recommendations to strengthen governance and executive relationships between the council and its CCOs:

·        This committee is visiting each CCO annually to better understand its business and culture and to informally build relationships.

·        At the start of the next term of council, elected members will be inducted on the CCO model and councillors will receive induction on their responsibilities as CCO shareholders and their governance role of CCOs as arm’s-length organisations.

·        A review of the councillor liaison role will be undertaken by the end of this term of council to identify learnings from these roles over the past two years. The roles were established with a purpose of developing the relationship between the council and each CCO’s board, and enhancing the flow of information between the parties.

·        Additional resources have been provided to the council’s CCO Governance and External Partnerships Group.

·        A Governance and CCO Partnerships Director position has been created in the council executive team, to foster CCO collaboration and build good working relationships across the group. Phil Wilson was appointed to the role in November 2020.


 

 

53.     The outstanding relationship work to complete includes updating the no surprises policy with clear guidance for CCOs on passing on information to the council and developing a protocol on information requests between the governing body and CCOs. This will be completed by the end of this term of council.

CCO and local board engagement [Recommendation 34]

54.     CCOs and local boards have made substantial progress to improve local engagement, better integrate planning and improve reporting of information from CCOs to local boards on projects in their area. The 21 new local board engagement plans have been created jointly between the four CCOs and involved CCO senior managers at board workshops. Each plan provides 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.

55.     Workshops are now underway to agree content for the 2022-23 joint engagement plans and feedback from boards about the process is overwhelmingly positive.

56.     Additional resources have been provided to support improved engagement between local boards and CCOs, and a new reporting framework is in place which brings the four CCOs into closer alignment, while still enabling each CCO its own individuality, and each local board its own local flavour.

57.     The work undertaken to date supports the development of an aligned framework to support better communication between CCOs and local communities and ongoing work to better integrate CCO and local board work programme planning.

Board appointments [Recommendation 43]

58.     Auckland Council is committed to an inclusive recruitment and selection process for CCO board appointments. Ongoing implementation is through the Appointments and Performance Review Committee. Recent board appointments include directors with strong Māori and Pasifika connections, relevant specialist backgrounds and public sector experience.

Accountability to Māori [Recommendations 35-40, 52]

59.     The council has completed the Kia Ora Tāmaki Makaurau - Māori Outcomes Performance Measurement Framework. This was approved by the Parks, Arts, Community and Events Committee in July 2021 (PAC/2021/24).

60.     All CCOs have undertaken work to align their plans that set out commitments to Māori to the new Kia Ora Tāmaki Makaurau Outcomes Framework. Working guidance has been completed for council teams and CCOs on the development of Achieving Māori Outcomes plans. Three CCOs have an outcomes plan in place, with Auckland Transport’s plan in progress.

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

62.     The Independent Māori Statutory Board (IMSB) secretariat, Ngā Mātārae (Council’s Māori Outcomes team) and Tāmaki Makaurau Mana Whenua Forum secretariat have developed guidance material to explain their respective roles and how staff in CCOs and the council should engage with each. The IMSB has approved its material which is to go on the intranet (Kotahi). The Forum’s material will be uploaded once approved.

63.     CCO boards are engaging with the Tāmaki Makaurau Mana Whenua Forum and IMSB. The  Forum held a hui with the Auckland Unlimited board in November 2021 and the IMSB with the Eke Panuku board in March 2022. The IMSB is to meet with the Auckland Transport board in May 2022 and the Watercare board in June 2022.


 

 

64.     The group chief executives have initiated a quarterly hui with the Independent Māori Statutory Board Te Pou Whakarae - Chief Executive focused on Māori outcomes.

65.     Work is underway towards improving the coordination of engagement with Māori entities across the group and to develop guidance on how CCOs should engage with mataawaka. The CCOs are working collaboratively with Ngā Mātārae on this engagement strategy.

Culture

66.     The Review made 21 recommendations concerning group shared values, collaboration, expectations of staff and communications and consultation.

Shared values [Recommendation 44]

67.     The current statement of expectations for CCOs includes the common values of building and maintaining a culture of collaboration and active support of hauora/ wellbeing of employees. The next version of the statement of expectations will include the common values and additional expectations of staff and management behaviour that collectively set the tone for the broader culture of all council organisations.

Collaboration [Recommendation 45]

68.     Eke Panuku has led work across the group to scope the Terms of Reference for a ‘lead agency’ role. The Terms of Reference sets out the lead role of Eke Panuku in its priority locations and a list of possible functions of a lead agency in other areas, such as facilitating shared vision and outcomes, information sharing, stakeholder engagement, and joint communications. Proposals for where a lead agency could apply would be brought to the Group Chief Executives Forum for support. Eke Panuku was appointed the lead agency for the implementation of the City Centre Masterplan 2020 by the Planning Committee in November 2021 adding the city centre to the Eke Panuku Waterfront Transform location (PLA/2021/136). Work is underway on how communications, engagement and consultation in the city centre can be undertaken collaboratively.

69.     Eke Panuku and Auckland Transport have established a joint Partnership Steering Group, following a sprint process of Auckland Transport and Eke Panuku staff, to align future work programmes that deliver shared outcomes. The two organisations continue to pilot new ways of working together to facilitate urban regeneration in areas well served by public transport.

Communications and branding [Recommendation 46, 57-58]

70.     A working group of the three communications and engagement leads at Eke Panuku, Auckland Council and Auckland Transport has been established. Joint engagement and communication are now embedded through processes and relationships across the communications teams. Joint communications have been demonstrated in recent place-based projects and campaigns.

71.     Joint communications have also been supported by the collaborative group wide development of the brand strategy and guidelines. Updated group brand guidelines, to ensure the pōhutukawa logo is used in a clear, consistent and flexible way on all council-funded services, activities and facilities, were approved by this committee in August 2021 (CCO/2021/32). Council monitors CCO compliance with the guidelines.

Working relationships [Recommendations 41, 47-51]

72.     To boost wider collaboration and understanding across the council group:

·        CCO chairs are meeting quarterly to strengthen group relationships and share information and views.

·        CCO chief executives and the council’s chief executive are meeting regularly on group wide issues, risks and developments and to oversee the implementation of the Review.

·        Regular meetings between the executive teams of council and CCOs have been established.

·        For new staff, Governance Fundamentals modules were launched in October 2021 explaining the Auckland Council and CCO governance model. Modules are hosted on Auckland Council’s Learning and Development site, accessible by Auckland Unlimited and Eke Panuku staff and are shared with Auckland Transport and Watercare.

·        A review of CCO chief and senior executives’ job descriptions by council’s People and Capability is nearly complete. The review is to ensure job descriptions include requirements about collaborating with the council, following council directions and meeting council expectations.

73.     The impact of the shift in group culture has been highlighted by Watercare chief executive Jon Lamonte:

“The outcomes of the CCO Review, supplemented by our own surveys on our relationships with council, have really helped draw the CCOs and council together at all levels, from engaging with the Governing Body in their visits to CCOs, to developing policies like the Auckland Water Strategy, to making practical steps to closer working on common operational issues with Healthy Waters in line with the 17A Review.”

74.     Work has not yet been completed in order for Auckland Transport and Watercare staff directories to be shared with Auckland Council, Auckland Unlimited and Eke Panuku on the intranet (Kotahi) and for Auckland Council to share the combined directory back with Auckland Transport and Watercare. An information sharing agreement is being developed between council and Auckland Transport to enable this work.

Consultation and complaints [Recommendations 53-56]

75.     Local board engagement plans have identified CCO and local board expectations for where public consultation will occur. This will contribute to better alignment of CCO consultation activities and identify areas for public consultation opportunities and determine appropriate joint action as needed. A strong base of collaboration has been developed as a result of the Review recommendations and an increasingly joined-up approach is now considered business as usual. Recent examples include: joint engagement on Manukau Sports Bowl masterplan options by council and Eke Panuku; engagement on the proposed Manukau cycling network by Auckland Transport with support by Eke Panuku; engagement on the Old Papatoetoe masterplan by Eke Panuku and council departments; the cross-group campaign, Auckland’s Future in Progress, on the projects transforming Auckland’s city centre; and joint public consultation about Roulston Park by Auckland Transport and Franklin Local Board.

76.     All statements of intent now include a key performance indicator on complaints. CCOs and council are sharing approaches to complaints management. CCO and council staff have agreed a base template to use for reporting trends and insights on formal complaints to executive lead teams and boards.

77.     Work is well advanced on exploring options for Aucklanders to challenge CCO or council decisions and will be reported to an upcoming meeting of this committee.

Quality of advice [Recommendations 59-60]

78.     Council’s quality advice standards are now applied across the council group. Resources have been provided to CCOs to support their own action, council’s quality advice training is open to CCO staff to attend and CCOs have also developed training for their staff.

79.     The council now includes a selection of Auckland Transport, Auckland Unlimited and Eke Panuku reports among its own selection for external review and feedback by NZIER each year (Watercare do not report). The review charts the progress being made towards providing high quality advice to elected members.


 

 

80.     Changes are being made to the way elected member satisfaction with council and CCO support is measured. A performance indicator framework is being developed based on the results of a survey of elected members and in-depth interviews and focus groups with elected members and staff in 2021. The key themes to address were published in the report Supporting Effective Governance in Auckland Council in February 2022.

Group policies [Recommendations 61-64]

81.     A Group Shared Services project has been initiated between the council and the CCOs. The feasibility phase is underway and includes the baseline assessment and future state service delivery model design and analysis to be completed May 2022. Watercare has a watching brief, on agreement with the Watercare Board and the Shared Services Governance Group, pending decisions on the three waters reform.

82.     An update of the remuneration policy was approved by the Governing Body in June 2021 (GB/2021/69).

83.     Auckland Unlimited and Eke Panuku discuss collective bargaining strategy with the council. Information is shared between Auckland Transport and the council.

84.     The group procurement policy was approved by the Finance and Performance Committee on 17 June 2021 (FIN/2021/61). The group’s Chief Financial Officer Forum is accountable for policy implementation and compliance.

Tauākī whakaaweawe āhuarangi

Climate impact statement

85.     The Review did not focus on climate impacts specifically. Climate impacts are considered through the implementation of individual recommendations.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

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

87.     CCOs report on their contribution to implementing the Review in their quarterly reporting to this committee.

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

Local impacts and local board views

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

89.     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). A comprehensive update on this work was provided to the committee in December 2021.

Tauākī whakaaweawe Māori

Māori impact statement

90.     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 IMSB secretariat to progress the recommendations.

91.     Progress on these recommendations are noted in paras 59-65.

Ngā ritenga ā-pūtea

Financial implications

92.     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

93.     The most significant risks to implementing the Review were identified as lack of budget, resources and organisational commitment, particularly with the need to focus on COVID-19 response. While COVID-19 restrictions and the Omicron outbreak have impacted on the speed of implementation for some recommendations, executive leadership of the Review and collaboration between the council and CCOs have mitigated the main risks, allowing for good progress to be achieved with the implementation programme. 

94.     A high-level review of the implementation programme was undertaken by council’s General Manager Risk and Assurance during March 2022. The purpose was to provide independent assurance as to whether there is any additional risk in progressing the implementation of recommendations, that are not already being reported to the CCO Oversight Committee. The findings were:

·        The monitoring of progress by the CCO Oversight Committee has been an effective mechanism to monitor progress and assess risks in implementing the recommendations.

·        There are no additional known risks as (at the date of the review) that have not already been reported to the CCO Oversight Committee.

·        The reporting that has occurred on progress to the CCO Oversight Committee is accurate and complete.

Ngā koringa ā-muri

Next steps

95.     The completed recommendations of the Review are now business as usual across the group.

96.     Implementation of the Review is included in the council’s Chief Executive Performance Objectives.

97.     The group chief executives will continue to monitor implementation of outstanding recommendations. Culture change and greater collaboration are an ongoing focus. Those recommendations requiring governance approval will be reported to the relevant governing body committee. 

 

Ngā tāpirihanga

Attachments

There are no attachments for this report.     

Ngā kaihaina

Signatories

Author

Trudi Fava - CCO Programme Lead

Authoriser

Alastair Cameron - Manager - CCO Governance & External Partnerships

 

 


Council Controlled Organisation Oversight Committee

26 April 2022

 

Approval of shareholder comments on draft CCO Statements of Intent 2022-2025

File No.: CP2022/03607

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To provide a comprehensive overview of implementation of the Council-controlled Organisations (CCO) Review (the Review).

Whakarāpopototanga matua

Executive summary

2.       The Statement of Intent (SOI) is an annual requirement of CCOs specified in the Local Government Act 2002.

3.       It is one of several tools which provide accountability by CCOs to Auckland Council and provides an opportunity for the council to influence each organisation’s direction. The SOIs set out the objectives and activities of each CCO for the next three years, but as an annual document, it has a focus on the first of the three years.

4.       SOIs reflect a combination of:

·    agreed council plans and strategies

·    Long-term Plan priorities and budgets

·    any specific additional priorities specified by the council in the annual letter of expectation

·    the CCO view of the strategic outlook for its portfolio of activity, and

·    CCO organisational priorities.

5.       The Statement of Intent process is a mix of legislative prescription and practices which have been adopted by Council over time. The process began on 10 November 2021 with a workshop between councillors and chairs and senior executives of the substantive CCOs, which was a proposal recommended in the 2020 CCO Review. The outcomes of this discussion were confirmed by decisions of the CCO Oversight Committee on 14 December 2021 (CCO/2021/62) which resulted in the issuing of Letters of Expectation. Draft Statements of Intent were received by 1 April 2022, in accordance with prescribed timeframes.

6.       Council staff have reviewed the drafts, with additional input from Independent Māori Statutory Board staff. This feedback has been collated and synthesised into the proposed shareholder comments recommended for approval in this report. Shareholder comments are focused on alignment with agreed council strategy, matters raised in the letters of expectations, and statutory requirements. The intention is not (generally speaking) to provide detailed direction on work programmes.

7.       Agreed shareholder comments will be provided to CCOs in writing following agreement by this committee. Staff will also work with colleagues at the CCOs to clarify any additional matters of detail or formatting. Once received, CCO Boards must consider shareholder comments before 1 June 2022 and provide council with final SOIs by 31 July 2022.


 

 

8.       Key themes of proposed shareholder comments for all CCOs are set out in the box below.

General shareholder comments (proposed for all CCOs)

Presentation

·    A key recommendation of the CCO Review was to work towards consistency of look and feel in the SOIs, with a template to support this. In general this is being achieved.

·    However, for the final SOIs it will be useful to work towards a clear identification of which work programme activities will take place in year 1, and which are intended for years 2 and 3.

Māori outcomes

·    All CCOs have adequately responded to Kia Ora Tāmaki Makaurau (KOTM) and the request to show where their activities are aligned with KOTM outcomes.

·    KOTM is supported by the new CCO Achieving Māori Outcomes plans (AMOs). While it is appropriate that the full content of AMOs is not in SOIs, details on progress with implementing the full AMOs should be reported on in the usual quarterly reporting cycle during 2022/2023. A commitment to this should be expressed in the final SOIs.

·    SOIs should include references to developing relationships with mataawaka in the region, and how that will be achieved

Climate change response

·    Te Tāruke-ā-Tāwhiri is a critical council strategy and is well-reflected in the draft SOIs. Comments on individual CCO SOIs are below, but in general terms the final SOIs should strongly support the implementation of actions identified in Te Tāruke-ā-Tāwhiri, to ensure that climate change considerations are embedded within organisational decision-making and culture, and to deliver Auckland’s regional targets of halving emissions by 2030 and net zero by 2050.

Infrastructure strategy

·    Council’s Infrastructure Strategy, contained within the Long-term Plan, requires CCOs to participate in the annual infrastructure strategic alignment process through providing updated asset management plan (AMP) information annually at the end of June. This includes working with council to optimise the translation of strategic direction to investment decisions in each asset group (across asset management and asset planning). It also requires CCOs to work with council to align and improve asset data and asset investment data quality to enable better decision-making across and within asset portfolios. We expect all of the final SOIs to reflect these commitments.

Other strategies

·    Council’s Strategic Advice unit has been considering closely how to better translate council’s many strategies into more tangible direction and action by CCOs, coupled with (where appropriate) prioritised funding. In association with ongoing work on CCO Review recommendations about providing better direction to CCOs, CCOs should expect through the next financial year to discuss how these strategies can be better implemented. The intent is that some strategies will apply relatively broadly, whereas others may have more specific application to the business of particular CCOs.

 

Financial and non-financial performance

·    Final SOIs will need to reflect the council’s final decisions on annual budget.

·    Final SOIs should ensure that all measures and targets reflect agreed Long-term Plan measures and targets, with agreed variances from these being clearly identified.

 

9.       The key themes of feedback for individual CCOs are in the box below.

Key feedback

Auckland Transport

·    The increased focus on climate change within the context of Te Tāruke-ā-Tāwhiri is good (including reference to the 64% emissions reduction goal) and the final SOI should strongly reflect the agreed priorities from the under-development Transport Emissions Reduction Plan (TERP). Agreed early actions from TERP should be referred to and reported on through quarterly reporting.

·    Performance measures in relation to public transport are noted for reduction, reflecting financial and COVID-19 challenges. The final SOI should ensure these targets reflect potential upcoming changes in the context (government decisions, easing of Covid-19 restrictions) and outline Auckland Transport’s plan for public transport recovery.

·    The work programme could be clearer about which elements are to be undertaken in 2022/2023 and which ones in later years.

Auckland Unlimited

·    Work with council staff to agree revised three-year performance targets for two performance measures, to better reflect and build on the strong actual results Auckland Unlimited has achieved, as well as agree and complete the three-year targets for three other performance measures.

·    Update the references to alignment with council strategies to include the Auckland Water Strategy, and better reflect contributions to the Development Strategy.

Eke Panuku

·    Substantial work is needed on the draft SOI to make it clearer, logical and easy to understand. Key areas to improve are the contribution to council strategies, strategic overview and the statement of performance expectations.

·    The format of the SOI should follow the guidance provided by council, in line with the other three substantive CCOs.

Watercare

·    Provide greater alignment and reference to the Auckland Water Strategy vision, shifts and actions as noted in this report.

·    Provide clarity on how it will meet and report on the Waikato River consent conditions as they relate to both investigating options for the reduction of reliance on the Waikato River and the required governance arrangements to investigate this.

 

 


 

 

 

Ngā tūtohunga

Recommendations

That the Council Controlled Organisation Oversight Committee:

a)      note the proposed shareholder comments on the draft statements of intent 2022–2025 for the four substantive and three non-substantive council-controlled organisations contained in this report.

b)      note that feedback at this stage of the statement of intent process is focused on matters raised in the letters of expectations, statutory requirements, alignment with strategic issues, and any other council priorities which have not been adequately addressed in the draft statements of intent.

c)       agree that the Mayor and Chair of the Council Controlled Organisation Oversight Committee will prepare letters to be sent to the four substantive council-controlled organisations containing the shareholder comments.

d)      delegate to the Manager, CCO Governance and External Partnerships, the authority to finalise the shareholder feedback on the draft statements of intent for Manukau Beautification Charitable Trust, Contemporary Art Foundation and Community Education Trust Auckland.

e)      agree that the content of the shareholder comment letters be based on the feedback in this report, with any deletions or additions based on feedback at the meeting.

f)       note that staff will record any feedback at the meeting that relates to performance or operational issues, or issues of detail or wording, and ensure those are raised with the relevant council-controlled organisations.

 

Horopaki

Context

10.     The purpose of a SOI is:

i)       to provide an opportunity for shareholders to influence the direction of the CCO

ii)       for CCOs to outline intentions and activities for the forthcoming year

iii)      to provide a basis for the accountability of CCO directors to the shareholders.

11.     The SOI serves as a basis for accountability to the council, as the shareholder, and provides an opportunity for the council to influence each organisation’s direction. The requirements and timeframes for statements of intent are set out in Schedule 8 of the Local Government Act 2002 (LGA). SOIs are one element of council’s overall strategic, planning, reporting and accountability documentation. Other documents include the statement of expectations, long-term plan, and annual report.

12.     The CCO Oversight Committee in December 2021 agreed to approve a one-month extension of statutory deadlines for all council-controlled organisation statements of intent for 2022-2025 (CCO/2021/62), as provided for in the Local Government Act Schedule 8, section 4.

 


 

 

13.     The 2020 CCO Review made a number of recommendations about the SOIs in relation to improving readability and ensuring consistency of look and feel. This reflects that these are documents intended to inform the public about CCO activities and programmes, and to reinforce the sense of a group approach. While this is something to be achieved over time, a key first step was instituting a new template in 2021. SOIs are therefore divided into two sections:

·     Part 1: Strategic Overview. This focuses on the three-year horizon and sets out strategic objectives, nature and scope, how it will deliver on council’s outcomes and the 10-year budget (Long-term Plan (LTP)) performance measures. It is intended that this will ultimately be produced triennially with the adoption of the LTP, and not change substantially from year to year.

·     Part 2: Statement of performance expectations. This provides an annual work programme, measures and targets (including those agreed in the LTP), and financial information. It is updated and submitted annually.

14.     Following receipt of the draft SOIs by 1 April 2022, staff from the CCO Governance department and other relevant divisions review the draft SOIs, considering statutory requirements, the letters of expectation, the Auckland Plan and other relevant strategies and policies of council. The drafts are also considered by staff at the Independent Māori Statutory Board. This results in the proposed shareholder comments, to be sent to the chairs of each CCO once approved. Each CCO is required to consider the shareholder comments at a public board meeting before 1 June 2022, before submitting a final SOI to the council by 31 July 2022.

15.     Any matters relating to performance or operational issues will be communicated separately to each CCO, along with matters of specific detail and formatting. Performance issues can be further followed up with the relevant chair and chief executive through their attendance at quarterly reporting meetings of the CCO Oversight Committee.

Tātaritanga me ngā tohutohu

Analysis and advice

Presentation of SOIs

16.     A key element of the 2020 CCO Review were recommendations about improving the consistency of look and feel of the CCO Statements of Intent. One recommendation was to institute a new template, which was started in 2021. This year’s draft SOIs continue to improve the SOIs towards a consistent approach, and staff will keep working with their CCO colleagues to enhance this.

17.     One key area however which could be immediately improved is for final SOIs to clearly mark which activities in the work programme are for year one (2022/2023) and which ones will primarily be undertaken in years two and three (2023/2024 and 2024/2025). While this was not a specified element of the template, the approach taken in the Eke Panuku draft SOI to split these up within the work programme table is a useful one and consideration should be given by the CCOs to adopting something similar, or providing other clarity about activity timelines where possible. This will also allow readers to consider SOIs as they develop over time, and to see continuity of work programmes.

Response to Māori outcomes

18.     All CCOs make reference in their SOI about commitment to the Māori Outcomes instruments, in particular Kia Ora Tāmaki Makaurau, but there are opportunities to improve consistency between CCOs in how they contribute to KOTM. Some of these are identified in the individual CCO comments below and others will be addressed by staff working with CCO colleagues as the final SOIs are developed, including passing on the comments provided to CCO Governance team by Independent Māori Statutory Board and Ngā Mātārae staff.

19.     In general terms however, the CCOs should work alongside council’s Ngā Mātārae and the Māori Outcomes Steering Group (which includes CCO Māori Outcomes leads) to achieve stronger alignment with KOTM in regard to rangatahi/ intern programmes and key performance indicators relating to Māori outcomes. The focus on key performance indicators should give priority to procurement targets and mana whenua and mataawaka satisfaction with CCO engagement and relationship management, given current inconsistencies.

Climate change response

20.     Te Tāruke-ā-Tāwhiri is a critical council strategy and is well-reflected in the draft SOIs. More detailed comments on individual CCO SOIs are included below, but in general terms the final SOIs should strongly support the implementation of actions identified in Te Tāruke-ā-Tāwhiri, to ensure that climate change considerations are embedded within organisational decision-making and culture, and to deliver Auckland’s regional targets of halving emissions by 2030 and net zero by 2050.

Infrastructure strategy

21.     Council’s Infrastructure Strategy, contained within the Long-term Plan, requires CCOs to participate in the annual infrastructure strategic alignment process through providing updated AMP information annually at the end of June. This includes working with council to optimise the translation of strategic direction to investment decisions in each asset group (across asset management and asset planning). It also requires CCOs to work with council to align and improve asset data and asset investment data quality to enable better decision-making across and within asset portfolios. We expect all of the final SOIs to reflect these commitments.

Other strategies

22.     Council has a suite of other strategies, including the Auckland Plan 2050, growth-related strategies (e.g. Development and Future Urban Land Supply), Auckland Water Strategy, Ngā Hapori Momoho, Urban Ngahere, Waste Management and Minimisation, Natural Hazards Action Plan, Economic Development Action Plan, Toi Whītiki and I am Auckland. Council will increasingly be seeking to translate these strategies into meaningful action, and a commitment to this process should be expressed in final SOIs. It is intended that staff will work with CCOs on this in an ongoing way, both during and after the finalisation of this year’s SOIs, recognising that not all strategies apply equally to the business of each CCO, the potential limitations on action imposed by resources, and the need to prioritise effort between many desirable outcomes.

CCO specific comments

Auckland Transport

23.     Auckland Transport’s draft SOI reflects the comments set out in the 2022/2023 letter of expectation. Key areas of focus identified in the LOE were responding to the climate crisis, transport safety and AT’s capacity and capability to deliver on the capital programme.  With respect to the latter, there is still significant decisions to be made before AT’s final programme is settled, but the SOI reflects the view at the time of submission.  

24.     Auckland Transport’s draft SOI has an increased focus, compared to last year’s, on climate change within the context of Te Tāruke-ā-Tāwhiri (see pages 13-14 of the draft). The 64% emissions reduction target for the transport system is referenced early on. This is welcome, but as the Transport Emissions Reduction Plan (TERP) continues to be developed, we would expect this strategic focus and actions out of the TERP to be reflected in the final SOI provided to the council. In particular, a range of early actions were agreed by the Environment and Climate Change Committee in December 2021 (ECC/2021/45), and these should be reflected in the final SOI with an expectation that these will be reported on through the quarterly reporting process.

25.     Additionally, the change which will be required if we are to meet climate change and emissions goals is such that consideration should be given to what existing activities need to be stopped (potentially over time, given project lifespans).

26.     Safety on the roading network is also a strategic issue which receives a welcome focus in the draft SOI. Recognising that progress in this area is partly determined by funding, there is also a degree to which the programme outlined feels incremental rather than transformative. The final SOI should signal actions for years 2, 3 and beyond which AT believes would achieve this transformative change, in particular in relation to providing safe facilities for walking, cycling and vulnerable road users.

27.     The work programme provides a comprehensive account of the activities which Auckland Transport plans to undertake in the next three years. In some areas it is clear what activities will happen in the coming year, but it would be useful (as a presentational point) to make this even more obvious, such as by splitting the table into year 1 and years 2/3 of the programme. This way, it will be easy to track achievement of actions over time and across subsequent SOIs. In addition, consideration should be given to providing a summarised capital programme table in the financial section (with budgeted costs) so that this element of the work programme is transparent.

28.     Some specific comments on the work programme include:

·    The Plans and Strategies section on page 37 should include reference to the Transport Emissions Reduction Plan.

·    The proposed minor and pop-up protection programmes for cycling are very welcome and the council will look with interest at progress on this through quarterly reports.

·    Renewals optimisation (p52) should be linked with other budgets to ensure that opportunities to ‘build back better’ are taken.

29.     Performance measure targets are largely unchanged from the LTP, with some exceptions which are shown as strikethroughs, with new figures adjacent. The new figures are especially important for public transport patronage, which reflect revised budgets, and the ongoing impact of COVID-19 and its effect on behaviour. The final SOI should reflect any further agreed changes to these targets with council as the annual budget process is settled, but the SOI should more clearly outline Auckland Transport’s plan for recovery in public transport usage. There is likely to be significant contextual change in the next few months with government announcements about its climate plan, and a potential resumption of greater mobility by Aucklanders. Rather than being passive, Auckland Transport should seek to influence how people in Auckland travel, and see this period as an opportunity to embed a ‘new normal’.

30.     One issue with performance measures is that despite a relatively comprehensive list of programmes and projects contributing to Māori outcomes it has no key performance indicators relating to them. This is an anomaly compared to other CCOs.

Auckland Unlimited

Overall comments

31.     Auckland Unlimited’s draft SOI reflects all of the specific comments set out in the 2022/2023 letter of expectation. New areas of focus for the draft SOI include identifying potential new revenue streams to replace funding sources lost in the most part due to the pandemic, and greater detail on Auckland Unlimited’s enabling objective in the one-year work programme.

32.     The enabling objective ‘build a sustainable, future-focused organisation’ covers ‘implementing our climate change response, enhancing our Māori responsiveness, building our digital literacy and capability and growing existing and building new revenue streams, investing in our people’.


 

 

Strategic alignment

33.     The draft SOI talks to alignment with key council strategies and plans, including the Auckland Plan 2050, the Development Strategy, Kia Ora Tāmaki Makaurau, Te Tāruke-ā-Tāwhiri: Auckland’s Climate Plan, Te Mahere Whaneke Ōhanga, Economic Development Action Plan 2021-2024 and Toi Whītiki Arts and Culture Strategic Action Plan.

34.     However, the draft SOI does not refer to the recently adopted Auckland Water Strategy and this should be included.

35.     The connection to the Development Strategy could also be revised. The focus on improving skills and jobs in south and west does not feature in the Development Strategy. This alignment could be better described as supporting the economic narrative for business and growth areas in the development strategy. This could include working with council to coordinate our spatial economic planning, including identifying key economic places to support the future development strategy.

36.     Under the contributions to the Auckland Plan 2050, the environmental and cultural heritage point “committing to minimising use of water, electricity and associated waste across our venues” could be expanded to include emissions reductions across Auckland Unlimited’s venues, in line with the goals of Te Tāruke-ā-Tāwhiri: Auckland’s Climate Plan.

37.     The roles and responsibilities section of the draft SOI notes that a number of the facilities owned and/or operated by Auckland Unlimited are also strategic assets and identifies these assets specifically. This needs to be updated to reflect changes to strategic assets in the 2022 Significance and Engagement Policy which was recently adopted by the council.

Proposed feedback to Auckland Unlimited

38.     We recommend that in the final SOI Auckland Unlimited:

·     include a statement to the effect that “Auckland Unlimited supports wider outcomes of the Auckland Water Strategy, and will work with the council to understand how it can support the implementation of the strategy.”

·     refine the text covering alignment to the Development Strategy, to better reflect a role in supporting the economic narrative for business and growth areas in the development strategy.

·     expand the reference to “committing to minimising use of water, electricity and associated waste across our venues” to include emissions reductions across Auckland Unlimited’s venues, in line with the goals of Te Tāruke-ā-Tāwhiri: Auckland’s Climate Plan.

·     update the references to strategic assets owned and/or managed by Auckland Unlimited, to reflect the changes to strategic assets as captured in the 2022 Significance and Engagement Policy.

Performance outlook

39.     The LTP performance measure ‘number of businesses that have been through an Auckland Unlimited programme or benefitted from an Auckland Unlimited intervention’ does not contain targets in the draft SOI. This is because Auckland Unlimited will not be tendering for the Regional Business Partner programme going forward, and the dataset from this programme contributes strongly to the result for this measure. Auckland Unlimited propose to retain the performance measure but adjust the targets for the next three years to reflect this.

40.     It is noted that the targets for the third year (2024/2025) are still to be set for two measures, which are ‘percentage of operating expenses funded through non-rates revenues’ and ‘the contribution to regional GDP from major events attracted or supported.’ These are both LTP measures.

41.     There are two measures where Auckland Unlimited should consider more ambitious targets for the next three financial years. This is because the targets have been consistently and significantly exceeded for the previous three to four financial years. The measures are:

·     Net promoter score for Auckland Unlimited’s audiences and participants (LTP measure) – target 20 (actuals have averaged approximately 47 over three years).

·     Number of programmes contributing to the visibility and presence of Māori in Auckland Tāmaki Makaurau (LTP measure) – target 20 (actuals have averaged approximately 66 over four years).

42.     There is also potential to consider increasing the targets for the measure ‘number of Māori businesses that have been through an Auckland Unlimited programme or benefitted from an Auckland Unlimited intervention’ given actual results in previous years. Staff will explore this further with Auckland Unlimited in the finalisation of the SOI.

Proposed feedback to Auckland Unlimited

43.     We recommend that in the final SOI Auckland Unlimited:

·     work with council staff to agree revised three-year performance targets for the two LTP measures listed above, to better reflect and build on the strong actual results Auckland Unlimited has achieved

·     work with council staff to agree and complete revised three-year performance targets for the ‘number of businesses that have been through an Auckland Unlimited programme or benefitted from an Auckland Unlimited intervention’ performance measure’ to reflect pending changes in the datasets for that measure

·     work with council staff to agree and complete the 2024/2025 targets for the ‘percentage of operating expenses funded through non-rates revenues’ and ‘the contribution to regional GDP from major events attracted or supported’ performance measures.

Financial statements

44.     High level draft financial statements have been included reflecting the council’s draft 2022/23 consultation budget. Some sections are yet to be populated. There is no mention in the draft SOI of working with the council to implement $15 million in permanent cost reductions in 2023/2024 and growing to $30 million from 2024/2025.

Proposed feedback to Auckland Unlimited

45.     We recommend that in the final SOI Auckland Unlimited:

·     ensure that the financial statements are fully populated and the financial information is agreed with Financial Planning council staff to reflect decisions made in the finalisation of the Annual Budget 2022/2023

·     includes a statement which commits to working with council to implement any permanent cost reductions in the form of efficiency savings and service reductions from 2023/2024 onwards based on the council set target and criteria.

Eke Panuku

46.     The Eke Panuku draft SOI 2022-2025 provides a description of the Eke Panuku strategic direction and areas of work, but overall the document is difficult to follow. Eke Panuku needs to use the guidance provided by council on the appropriate SOI structure and content. The guidance is to ensure readability and consistency of SOIs across the four substantive CCOs. An overview of the guidance is provided on page 4 of this report. Following the structure provided in the guidance would also limit confusing repetition.

47.     The SOI is a public document and should be easy to understand. Terms and concepts should be explained, used consistently and jargon should be avoided. The CCO review noted that many people have little understanding of what Eke Panuku do, so it is particularly important to make the SOI clear.

48.     The specific comments for Eke Panuku set out in the 2022/2023 letter of expectation are covered at a high level. This includes the need for a medium-long term urban regeneration strategy and delivery of urban regeneration in priority location areas.

Proposed feedback to Eke Panuku

49.     We suggest that in the final SOI Eke Panuku:

·     Restructures the draft SOI to follow council guidance (used by the other substantive CCOs) and address repetition

·     Revise draft SOI to make it easier to understand, including its structure and clarity.

Response to the Council's strategic objectives

50.     The section on 'contribution to the Auckland Plan and council strategies' (page 5) is where Eke Panuku should provide an overview of their contributions to council strategies, not just the Auckland Plan. It is confusing that council strategies are described in other parts of the document but not here.

51.     The strategies referenced in other parts of the document are Kia Ora Tāmaki Makaurau, the Economic Development Action Plan, Te Tāruke-ā-Tāwhiri: Auckland’s Climate Plan and the Waste Management and Minimisation Plan. This section should also include other relevant strategies such as the Auckland Water Strategy (recently adopted), Development Strategy, Infrastructure Strategy, Future Urban Land Supply Strategy and the Auckland growth model.

Proposed feedback to Eke Panuku

52.     We suggest that in the final SOI Eke Panuku:

·     Includes their contribution to relevant council strategies in the section '3.2 Contribution to the Auckland Plan and council strategies'.

Nature and scope of activities - 'what we do'

53.     The strategic framework overview table (page 7) is a useful concept that is designed to provide an overview of Eke Panuku vision, outcomes, activities and performance measures. However the structure and content of the table do not follow through to the rest of the draft SOI. For example the 'three levers' for leading urban regeneration are not referred to again in the rest of the document.

54.     Many of the topics that are covered in the initial part of '4.0 Nature and scope of activities - what we do' are then covered again in '4.1 Over the next 3 years'. As per council guidance, these two sections should be combined.

55.     The description of Eke Panuku programmes and business activities should be improved:

·     Urban regeneration (page 9) there is no explanation of what urban regeneration is or how Eke Panuku contribute in this section. Given Eke Panuku lead urban regeneration, this should be one of the key descriptions in the whole document. The new Thriving Town Centres guidance which describes the Eke Panuku approach to urban regeneration is not mentioned. Upcoming work on the medium-long term urban regeneration strategy is also not referenced in this section. An explanation should also be provided of areas of work such as Haumaru Housing and Transport Oriented Developments.

·     Property portfolio and marina management (page 10) – it is not clear how Eke Panuku are working to achieve their desired outcome of 'creating strategic value from property assets'. Only general property management functions are described. An explanation is needed of the graph ‘valuation by activity’.

·     Sector leadership (page 11) – the current text outlines that Eke Panuku are looking to deliver best practice, but not how this will be achieved or any upcoming contributions to sector leadership.

·     Māori outcomes (page 13) – note that this section should also refer to developing a relationship with mataawaka. It would also be good to note the timeframe for when the Eke Panuku Mana Whenua Outcomes Framework will be aligned with Kia Ora Tāmaki Makaurau.

·     Risks, challenges and opportunities (page 14) – it would be useful to include how Eke Panuku will look to address each risk, challenge or opportunity. Climate change/ natural hazards should also be included as a risk.

Proposed feedback to Eke Panuku

56.     We suggest that in the final SOI Eke Panuku:

·     Provide clearer explanation of their core functions.

Statement of performance expectation

57.     The statement of performance expectations uses a different description of the Eke Panuku programmes and activities that are outlined in the strategic framework overview (page 8) or elsewhere in the document. This makes it difficult to make connections between the outcomes that Eke Panuku are trying to achieve and what they will deliver.

58.     Similar to the rest of the document, further work is needed to make the text on the deliverables easier to understand. It would also be useful to note in the table, which of the deliverables is a capital project (that are referenced in performance measure 4).

59.     The Eke Panuku deliverables for one and three years are provided for each of their thirteen locations (urban regeneration), which will allow activity to be tracked by location over time. There are pros and cons as to whether these deliverables should be provided by location or activity. Providing the information by location shows a view of what is being delivered in each area, by activity shows the scale of delivery for different types of work.

60.     Content on the deliverables for the property portfolio and marina renewals seem limited, given the scale of this work. No deliverables are provided for work on sector leadership.

Performance measures

61.     No amendments are suggested to the performance measures for SOI 2022-2025. We recommend that Eke Panuku work with council to consider future performance measures on climate change, waste and sustainable procurement (including a target to increase procurement spend with diverse suppliers, which includes Māori businesses).

Financial statement

62.     The figures in the financial statement align with the Eke Panuku budget submissions to council. Other financial information, including the asset sales target, may be subject to change through the budget process.

Proposed feedback to Eke Panuku

63.     We suggest that in the final SOI Eke Panuku:

·     Review the table on Eke Panuku deliverables for one and three years to make the text clearer.

Watercare

64.     The specific expectations conveyed to Watercare in the letter of expectation covered:

i)       Implementation of Auckland’s Water Strategy

ii)       Water use efficiency, security and diversity of sources

iii)      Water reform

iv)      Delivering for communities

v)      Climate change

vi)      Māori outcomes

 

65.     Watercare’s draft SOI is comprehensive and largely addresses the issues raised in Watercare’s letter of expectation. The Chair’s forward in particular responds to the issues raised in their letter of expectation and notes a number of priorities for Watercare over the next SOI period.

66.     Since the letter of expectations was issued, the council has adopted the Auckland Water Strategy, a new Waikato River consent has been granted with conditions and progress is being made on the government’s water reform. There are some additional areas related to these matters where further clarification and elaboration is expected. These are discussed below.

Implementation of Auckland’s Water Strategy

67.     The Auckland Water Strategy was adopted in March 2022. In developing the strategy, the council has taken direction from its core strategies and policies including the Auckland Plan 2050 and Te Tāruke-ā-Tāwhiri – Auckland's Climate Action Plan. The Water Strategy describes the region’s core challenges related to water outcomes and provides integrated strategic direction to address them. The vision for Auckland’s Water Strategy is ‘te mauri o te wai o Tāmaki Makaurau, the life-sustaining capacity of Auckland’s water is protected and enhanced’. This vision aligns with the direction of the government’s water reform and we would expect to see this vision explicitly translated into Watercare’s SOI.

68.     In the Water Strategy, the council commits to prioritisation of the life-sustaining capacity (mauri) of water in decision-making and commits to strengthening its partnership with mana whenua to do so. In particular, the Water Strategy commits the council group to prioritising the health of water in Auckland by adopting a te ao Māori approach to protecting our waters; adapting to a changing water future; developing Aucklanders’ stewardship; restoring our damaged environments; protecting our significant water bodies; and using Auckland’s growth to achieve better water outcomes. This is important strategic direction for all council’s delivery organisations to understand and contribute to and will increasingly impact on Watercare’s work programme. Watercare have agreed to specific actions that Watercare will lead or contribute to. Staff will work with Watercare to build the detail of the implementation programme and monitoring for the Water Strategy.

69.     The Māori outcomes section “achieving outcomes with Māori” and Watercare’s Māori Outcomes Plan should reference the strategic shift in the Water Strategy, specifically around Te Tiriti partnership. The aim of this shift is that council and mana whenua are partners in the protection, management and enhancement of water.

70.     There are a number of actions in the Water Strategy’s strategic shift ‘Water Security’ that are particularly relevant to Watercare. This section of the strategy details the consumption targets, water collection targets and objectives around water recycling. Annual and quarterly reporting against these targets is discussed in performance measures. There are a number of the actions that require further work over the first year of the SOI and engagement with council to implement and meet the targets. We will expect to see these programmes of work detailed more strongly in Watercare’s SOI.

71.     A number of the other actions in the Water Strategy (aside from the strategic shift ‘Water Security’) should be reflected in the annual work programme (section 2.2) of the final SOI. For example, we would expect to see the following:

·     High performing infrastructure (reliable and resilient now and in future) – refer to Water Strategy strategic shift 4 ‘Regenerative Water Infrastructure’, by committing to understanding what’s required to design, measure and implement water infrastructure that is regenerative, resilient, low carbon and increases the mauri of water.

·    Customer and trust – incorporate strategic shift 2 ‘Empowered Aucklanders’ action 2.1 by participating on a collaborative working group with council to assess and define a water literacy framework.

·    Protect and enhance our natural environment – refer to strategic shift 7 ‘Restoring and Enhancing Water Ecosystems’, and the need for an awareness of the shift towards better understanding of and incorporation of the mauri of freshwater systems into evaluating water quality and decisions on restoration and enhancement (action 7.1). The final SOI could also provide more detail on how Watercare will help to protect and enhance the natural environment outside of climate change commitments.

Proposed feedback to Watercare

72.     We suggest that in the final SOI Watercare:

·     provide greater alignment and reference to the Water Strategy vision, shifts and actions listed above

·     include support for Auckland Water Strategy’s commitment to achieve the vision of Te Mauri o te Wai in each of the water strategy shifts.

Water use efficiency, security and diversity of sources

73.     Page 19 of the draft SOI refers to new Waikato River consent, where from 2026, Watercare will need to report to Waikato Regional Council every five years on the progress being made on the investigation and implementation of future water source options for Auckland. These reports will be made publicly available and shared with representatives of Te Whakakitenga o Waikato Incorporated, Te Taniwha o Waikato, Te Tokanganui-a-noho Regional Management Committee and Hauauru Ki Uta Regional Management Committee, Ngā Waihua o Paerangi, Te Kotahitanga o Ngāti Tuwharetoa, Raukawa Settlement Trust, Te Arawa River Iwi Trust, Ngāti TahuNgāti Whāoa, and the Waikato River Authority.

74.     Under the consent conditions Watercare is also obliged to establish an executive committee or board to investigate and address options for the reduction of reliance on the river by Watercare, including identifying alternative water sources, and invite representation from tangata whenua onto that executive committee. The draft SOI does not discuss this in its work programme. We expect progress to be reported on this activity in the quarterly reporting to council, and as such it should be discussed in the final SOI.

Proposed feedback to Watercare

75.     We suggest that in the final SOI Watercare:

·     provide clarity on how it will meet and report on the Waikato River consent conditions as they relate to both investigating options for the reduction of reliance on the Waikato River and the required governance arrangements to investigate this.

Performance measures

76.     We appreciate that DIA’s performance measures may be changing with the introduction of Taumata Arowai, and it is appropriate that for now DIA measures continue to be included in Watercare’s SOI. Currently, Taumata Arowai is consulting on the Drinking Water Standards and Drinking Water Aesthetic Values, with new standards expected to come into force on 1 July 2022. We expect the final SOI to have considered including further detail of how Watercare will comply with these new standards and values.

77.     We note that Watercare has consistently met its targets over the last few years, with the exception of the percentage of real water loss (leakage). Watercare has introduced a new measure, the economic level of leakage. The proposed Economic level of leakage (ELL) - litres/connection/day (l/c/d) and methodology is provided on page 21. It would be useful to backcast this measure to provide a basis for comparison and performance monitoring.

Proposed feedback to Watercare

78.     We suggest that in the final SOI Watercare:

·     consider including further detail of how Watercare will comply with new standards and values adopted by Taumata Arowai

 

 

·     note on the table that provides a list of DIA measures (p 11) that these are also LTP measures

·     measure - economic level of leakage - provide a back calculation of the “new measure” for at last three years leakage to compare with the old measure of leakage (percentage).

·     clarify the measure “Māori employees in fixed term and/or permanent roles, including leadership positions (Tier 3 and above) identify as Māori”. It may be that the initial word Māori is redundant when the targets seem to refer to the overall percentage of Watercare’s FTEs who identify as Māori.

Work programme

79.     We note that the Economic Development Action Plan action: 5.2.1 Investigate water-use precincts co-located alongside wastewater reuse opportunities at Rosedale and Māngere Wastewater Treatment Plants has been removed from this year’s draft SOI. This action also relates to the action within the Water Strategy for Auckland Council, Watercare and other partners to develop an investment plan to achieve the targets for (non-dam) rainwater and recycled water capacity for beneficial use. We would expect this action to be reinstated and for reporting to occur against it in Watercare’s quarterly reports.

Proposed feedback to Watercare

80.     We suggest that in the final SOI Watercare:

·     reinstates the Economic Development Action Plan action: 5.2.1 Investigate water-use precincts co-located alongside wastewater reuse opportunities at Rosedale and Māngere Wastewater Treatment Plants.

Water reform

81.     Watercare appropriately notes that it is working collaboratively with council to understand what water reform means for Auckland and responding to the government’s request for information. It would be helpful, however, in the final SOI work programme to more explicitly outline areas of work that it expects it will need to undertake over the coming year to meet the timeframes and obligations expected from the water reform. It is important that we understand the implications and are kept abreast of these on work programmes, costs, timings etc.

Non-substantive CCOs and external partnerships

82.     Auckland Council has nine other CCOs that are not considered ‘substantive’ under the Local Government (Auckland Council) Act 2009. The focus of these CCOs is either more local in nature than the substantive CCOs, or significantly smaller in scale, though the Governing Body is still responsible for their governance.

83.     Three of these CCOs must provide the council with an SOI. The others have been exempted from CCO status and are therefore not subject to the normal accountability requirements of a CCO under the LGA, including preparing a SOI.

Contemporary Art Foundation

84.     Contemporary Art Foundation’s draft Statement of Intent has appropriate measures and targets and its proposed budget is within budgeted allowances.  The references to the former Māori responsiveness framework should be replaced with references to the outcomes in Kia ora Tāmaki Makaurau (the detail of which will be provided to CAF by CCO Governance staff). 


 

 

85.     More importantly, CAF’s Statement of Intent signals a wider strategic issue for it, which is the commencement of the part of the Eastern Busway adjacent to its facility in Pakuranga.  This will have considerable impact on its business for at least a five-year period, and combined with the proposed review of Council’s non-substantive CCOs, could mean it is the right time for a broader conversation about the role of CAF.  CCO Governance staff will engage with CAF about this in the course of 2022.  We propose that the shareholder letter (to be prepared by the Manager, CCO Governance) acknowledge that CAF has raised this issue and commit to working with them on it. 

Manukau Beautification Charitable Trust (MBCT)

86.     The main areas of proposed shareholder comment are:

·     MBCT should consider refining its current indicator set (containing 19 performance measures) to a smaller more focussed set of approximately 10-12 indicators in the final SOI.

·     MBCT should ensure in the final SOI that the value of the Auckland Council contracts for 2022/2023 reflect decisions made as part of the finalisation of the Annual Budget 2022/2023.

·     MBCT should specify in its capital expenditure table which categories the planned expenditure fall under (growth, level of service or renewals) in the final SOI. Council staff can provide high-level definitions of the three categories to enable MBCT to complete the classification. 

87.     It is recommended the Manager, CCO Governance and External Partnerships be delegated the authority to finalise the shareholder feedback on the draft SOI to MBCT.

Community Education Trust Auckland (COMET Auckland)

88.     The draft 2022-2025 SOI provides a three-year workplan which details the key projects and initiatives to deliver on COMET Auckland’s strategic objectives.

89.     The section on ‘COMET Auckland Strategic Objectives’ (page 6) could be strengthened by being clearer about the problem definition and how COMET can contribute change. Suggestions are:

·     It would help to link to evidence to support the rationale for why COMET is needed (page 6).

·     Providing more information on how COMET is working towards system change, particularly through the strategic shifts (on page 6). It may be useful to provide an example of a current project and how the systems change was (or could be) used.

·     Making the links between how quality education being available for everyone is a significant contributor to more equitable outcomes.

90.     The council plans that COMET contributes to are noted (page 5), however a brief description of how COMET contributes to these plans would be useful. This should also include Ngā Hapori Momoho | Thriving Communities, particularly as inequity is a key focus of that strategy.

91.     In the summary of financials section (page 12) COMET have requested an additional $300k of funding per year. The additional funding would be for inflation pressures ($80k) and to create two new Māori and Pacifica leadership roles ($220k). Further details of this request have been provided through the annual plan process. Given current funding constraints, additional funding is not recommended.


 

 

Proposed feedback to COMET

92.     We suggest that in the final SOI COMET consider improvements to strengthen the ‘COMET Auckland Strategic Objectives’ section.

93.     It is recommended the Manager, CCO Governance and External Partnerships be delegated the authority to finalise the shareholder feedback on the draft SOI to COMET Auckland.

Tauākī whakaaweawe āhuarangi

Climate impact statement

94.     CCOs are responsible for demonstrating how their draft SOI aligns with Te Tāruke-ā-Tāwhiri: Auckland's Climate Plan. This has been reviewed by staff as part of reviewing the draft SOIs. Comments relating to climate impacts are included in the shareholder comments recommended above.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

95.     Staff have sought and incorporated feedback from various department across the council.

96.     When the official letters with feedback are provided to the CCOs, staff will work with the CCOs on how best to incorporate the shareholder feedback. This will also include providing further detail and addressing any formatting issues.

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

Local impacts and local board views

97.     The CCO Oversight Committee is responsible for providing shareholder comments on the draft SOI, and feedback from local boards is not sought. A range of additional mechanisms to build the relationship between local boards and CCOs has been implemented following the 2020 CCO Review, including new local board engagement plans, to ensure that the governance role of local boards is appropriately taken account of by CCOs. 

Tauākī whakaaweawe Māori

Māori impact statement

98.     The activities of CCOs have significant potential to improve Māori wellbeing and to influence the achievement of the Auckland Plan and Kia Ora Tāmaki Makaurau. The draft SOIs were separately provided to the Independent Māori Statutory Board and council’s Nga Mātārae, and their comments have been reflected in this report.

Ngā ritenga ā-pūtea

Financial implications

99.     As noted in the general comments above, the final SOI financial sections need to be aligned with the Annual Budget 2022/2023 decisions.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

100.   There are no direct risks associated with the proposed shareholder comments.

101.   There is a risk that the CCOs may not adequately reflect the shareholder comments. This can be mitigated by working closely with the CCOs. Also, if the shareholder comments are not adequately reflected, the council can modify a SOI at any time.


 

 

102.   The government’s reform programme, including three waters, resource management reform, the Future of Local Government review, and National Policy Statement on Urban Development, all have the potential for significant impacts on the activities of Auckland Council’s CCOs. Staff will continue to provide advice on these matters, including staff from the CCOs. The most immediate priority in this regard is the water reform programme, and the transition to any changes which the government confirms will be managed by the under-establishment transition unit with the council’s strategy and planning division.

Ngā koringa ā-muri

Next steps

103.   If the committee agrees with the feedback contained in this report, staff will draft letters based on this feedback and any other matters directed to be included by the Committee. These will be sent by the Mayor and the Chair of the CCO Oversight Committee to the chair of each board, as soon as possible after this meeting, so that the CCOs can revise their SOIs accordingly and meet the deadline for final submission of 31 July 2022.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Auckland Transport draft Statement of Intent 2022-25

41

b

Auckland Unlimited draft Statement of Intent 2022-25

113

c

Eke Panuku draft Statement of Intent 2022-25

143

d

Watercare draft Statement of Intent 2022-25

177

e

COMET draft Statement of Intent 2022-25

217

f

Contemporary Art Foundation draft Statement of Intent 2022-25

233

g

Manukau Beautification Charitable Trust draft Statement of Intent 2022-25

249

     

Ngā kaihaina

Signatories

Authors

Edward Siddle - Principal Advisor

Claire Gomas - Principal Advisor

Rachel Wilson - Principal Advisor

Sarah Johnstone-Smith - Principal Advisor

Trudi Fava - CCO Programme Lead

Authoriser

Alastair Cameron - Manager - CCO Governance & External Partnerships

 

 


Council Controlled Organisation Oversight Committee

26 April 2022

 

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26 April 2022

 

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Council Controlled Organisation Oversight Committee

26 April 2022

 

Liaison councillors' updates

File No.: CP2022/04601

 

  

 

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

Alastair Cameron - Manager - CCO Governance & External Partnerships

 

 


Council Controlled Organisation Oversight Committee

26 April 2022

 

Summary of Council Controlled Organisation Oversight Committee information memoranda and briefings (including the forward work programme) - 26 April 2022

File No.: CP2022/04428

 

  

 

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 and information items have been distributed:

Date

Subject

24/3/2022

Reimagining Tāmaki Makaurau Auckland: harnessing the region’s potential, Koi Tū: The Centre for Informed Futures

7/4/2022

Memo: Auckland War Memorial Museum Quarter 2 Performance Report

7/4/2022

Tāmaki Paenga Hira Auckland War Memorial Museum Quarterly Performance Report Quarter 2.

 

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 – 26 April 2022.

 

 


 

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Forward Work Programme

267

b

Reimagining Tāmaki Makaurau Auckland: harnessing the region’s potential, Koi Tū: The Centre for Informed Futures (Under Separate Cover)

 

c

Memo: Auckland War Memorial Museum Quarter 2 Performance Report (Under Separate Cover)

 

d

Tāmaki Paenga Hira Auckland War Memorial Museum Quarterly Performance Report Quarter 2. (Under Separate Cover)

 

     

Ngā kaihaina

Signatories

Author

Duncan Glasgow - Kaitohutohu Mana Whakahaere / Governance Advisor

Authoriser

Alastair Cameron - Manager - CCO Governance & External Partnerships

 

 


Council Controlled Organisation Oversight Committee

26 April 2022

 

 

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).

To receive monthly updates on the implementation and progression of the 64 summary recommendations of the CCO Review

Progress to date:

Update received March 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

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:

Quarter Two reports received March 2022



 

 

 

 

 

 

 

 

 

 

 

 

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:

Updates received March 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

·    Auckland Unlimited – 10 May 2022.

·    Watercare – 10 June 2022.

·    Ports of Auckland – 3 June 2022.

·    Auckland Transport – 17 June 2022.

·    Eke Panuku – 5 July 2022.

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

 

 

 

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 May 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 held 15 December.

 

 

 

 

 

 

 

 

 

 

 

 

Review of non-substantive Council controlled organisations

CCO Governance and External Partnerships

 

To ensure that the governance model for Council's non-substantive CCOs is appropriate. CCO/2020/21 approved the council undertaking a review of the status of non-substantive council-controlled organisations and the framework for undertaking the review. 

To make decisions about the future governance of non-substantive CCOs

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

 

 

 

 


 


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

CCO Review Updates

To receive updates on the implementation and progression of the 64 summary recommendations of the CCO Review

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

To receive updates from the CCO Liaison Councillors.

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 May, June, August , September, October , November and December 2021..

Letters of Expectation

Seeking committee approval of the content of draft 2021/22 letters of expectation.

Decision to approve content of 2021/2022 letters of expectation, authority delegated to mayor and deputy mayor to finalise and issue the letters, 14 December 2021.
(Link to decision
CCO/2021/62)