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, 24 May 2022

2.00pm

Reception Lounge Auckland Town Hall 301-305 Queen Street Auckland and via Microsoft TEAMS

 

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 May 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:

 

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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

24 May 2022

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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          Quarter Three Performance Reports 2021/2022 for Substantive Council-controlled Organisations and Ports of Auckland                                                                       11

9          Ports of Auckland Limited Letter of Expectation                                                   107

10        CCO Review recommendation on engagement and challenging decisions      111

11        Liaison councillors' updates                                                                                    119

12        Summary of Council Controlled Organisation Oversight Committee information memoranda and briefings (including the forward work programme) - 24 May 2022                                                                                                                                     121

13        Consideration of Extraordinary Items

PUBLIC EXCLUDED

14        Procedural Motion to Exclude the Public                                                               133

C1       CONFIDENTIAL: Stadiums operating model                                                          133


1          Apologies

 

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

 

 

 

2          Declaration of Interest

 

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

 

 

 

3          Confirmation of Minutes

 

That the Council Controlled Organisation Oversight Committee:

a)         confirm the ordinary minutes of its meeting, held on Tuesday, 26 April 2022, 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

24 May 2022

 

Quarter Three Performance Reports 2021/2022 for Substantive Council-controlled Organisations and Ports of Auckland

File No.: CP2022/05619

 

  

Te take mō te pūrongo

Purpose of the report

1.       To receive a summary and comments on the substantive Council-Controlled Organisation (CCO) and Ports of Auckland Limited (POAL) third quarter reports, for the period ending 31 March 2022.

Whakarāpopototanga matua

Executive summary

2.       Under Auckland Council’s accountability framework, each substantive Council-Controlled Organisation (CCO) must provide a quarterly report to the CCO Oversight Committee. The reports for the third quarter of 2021/2022 are contained in Attachments A to E and are measured against the updated 10-year Budget and the 2021-2024 Statements of Intent (SOIs).

3.       Under the Memorandum of Understanding between POAL and Auckland Council, POAL is to provide a quarterly report to the council as shareholder. The Ports of Auckland Limited report on the third quarter of 2021/2022 is contained in Attachment F.

4.       Key results are highlighted in the table below, and in more detail in the body of the report.

Council-controlled organisation

Summary of quarter three results

Auckland Transport

·    Public transport boardings are significantly down in the quarter, largely as a result of Omicron-related impacts.

·    Very positive safety results from local roads with reduced speed limits.

·    While overall capital delivery is behind, good progress still being made, such as in exceeding the planned number of new/improved pedestrian crossings.

Auckland Unlimited

·    Auckland Unlimited’s revenue has been significantly affected by COVID-19 restrictions, though this is expected to ease in quarter four.

·    Of the nine performance measures that are tracked quarterly, six are either achieved or are on-track to achieve their year-end targets, with three not on-track.

·    Capital delivery is $17.8 million behind budget for the year to date.

Eke Panuku

·    Capital spend is $25 million against a year-to-date budget of $67.3 million (37 per cent of delivery). Delivery is behind mainly due to the impact of COVID-19 and supply chain issues. 

·    Eke Panuku direct revenue and direct expenditure are favourable compared to budget.

·    Of the 11 performance measures that have targets this year, eight are on track to be met, with three not on track.

Watercare

·   Capital delivery has been slowed by COVID-19 impacts and is $115 million behind budget for the year to date.

·   Watercare’s operational revenue remains higher than budgeted, reflecting higher revenue from development than anticipated, and its operational expenditure is also up.

·   Twenty-four of the 27 performance targets are on track.

Ports of Auckland

·    The Omicron outbreak continues to have a significant impact on POAL employees in quarter three. Congestion in the global supply chain continues.

·    All POAL’s financial targets are on track.

·    Of the non-financial performance targets, five are on track and five are not met or not on track.

 

 

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Oversight Committee:

a)      receive the 2021/2022 third quarter reports of the substantive Council-controlled Organisations and Ports of Auckland Limited, provided as attachments A to F of the agenda report.

 

Horopaki

Context

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

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

·     provide a forecast of the CCO’s performance;

·     identify the cause of major variances;

·     highlight major achievements for the quarter; and

·     signal any potential or developing issues.

6.       The CCO reports for the third quarter of 2021/2022 are appended in Attachments A to E of the agenda report.

7.       Under the Memorandum of Understanding between POAL and Auckland Council, POAL is to provide a quarterly report to the council as shareholder.  The report for the third quarter of 2021/2022 is Attachment F.

Tātaritanga me ngā tohutohu

Analysis and advice

Auckland Transport

Financial results

8.       The COVID-19 pandemic, especially the emergence of the Omicron variant continued to negatively impact on the operation and financial performance of Auckland Transport for the third quarter of the year.

9.       For the nine-month period, Auckland Transport’s net operating result (including depreciation) is $12 million unfavourable to budget, mainly due to the impact of COVID-19 restrictions on public transport and parking revenues. 

10.     Operating revenue is unfavourable to budget by $92 million primarily driven by lower than expected public transport patronage level for the past three quarters. Public transport patronage was recovering in the second quarter, but has since stalled and declined due to the Omicron outbreak. It is expected that the 50 per cent discount to public transport fares from April will help boost patronage for the rest of the year. Lower parking and enforcement revenue due to lower occupancy and infringement ticket issuances also contributed to the overall unfavourable revenue variance.

11.     Operating expenditure is below budget by $80 million mainly due to lower public transport contract cost, contractor maintenance, unplanned facilities maintenance, Auckland Transport delivered events and training, security and advertising costs.

12.     Auckland Transport is now forecasting the size of operating deficit (excluding depreciation) of around $33 million, $41 million unfavourable to budget, which would be within the $50 million of additional operating funding approved by Auckland Council in December 2021. This improved forecast compared to last quarter reflects further cost savings and potential upside in patronage from half price fares projected for the reminder of the year.

13.     Capital delivery is $422 million for the six months against a budget of $541 million (78 per cent). Programmes and projects across the board are behind planned spend, mainly driven by the impacts of COVID-19 on public consultations, consenting, procurement and tendering processes, and broader supply chain constrains. Auckland Transport is expecting to deliver a full year capital programme of approximately $650 million against the annual budget of $820 million.

Performance measures

14.     Auckland Transport has a total of 28 Statement of Intent performance measures, 14 of which are also 10-year Budget measures. Fourteen of the 28 measures are on track to meet or exceed their targets (or already have), eight are below target, and the remaining six have either not yet been measured or do not yet have a target (to be developed).

15.     Public transport patronage was significantly impacted by the Omicron wave in the first three months of 2022. An increase in patronage is expected in the final quarter of the year as a result of half-price fares and the easing of Omicron impacts (such as services returning to full schedules). 

16.     In an important and positive result, deaths and serious injuries on Auckland’s local road network have increased at a slower rate than allowed for (an increase was expected due to the lower results resulting from initial COVID-19 lockdowns).  Auckland Transport attributes this directly to the reduction of speed limits, as there has been actual decreases in injury and fatality crashes in those areas where limits have changed. This provides important evidence that the programme is working, ahead of decisions on extending its reach to other roads in the region.

17.     Capital delivery continues to be hampered by COVID-19 impacts.  Despite this, the extensive programme of works continues to be delivered, albeit at a slower pace than predicted.  In some areas, such as delivery of new cycleways (including the minor cycling programme), and pedestrian safety improvements, targets are being met or exceeded. 

18.     Auckland Transport has been undertaking activities internally to enable and enhance its culture and capacity.  This is an area of focus in the current Statement of Intent, and also in the recently issued Statement of Expectations.  This section (page 14) covers areas such as Hauora (Auckland Transport’s programme won an award in February), Leadership, active identification of critical roles and mapping ways to attract talent, and working towards improved representation both in general workforce and leadership roles. 

Issues/risks

19.     As noted above, safety remains a key focus.  While some improvements are evident, there remains significant work to do, to return to a situation where an overall reduction in deaths and serious injuries (DSI) is felt across all parts of the road network.  The Auckland Transport Safety team is aware of this and working in a number of areas, including advocacy, policy and regulatory changes, and relationships with NZ Police, to improve outcomes. 

20.     Covid continues to present a challenging context for Auckland Transport in many areas, including public transport patronage (and therefore revenue), the capital programme, and impact on costs (both operational and capex). 

Auckland Unlimited

Financial results

21.     Auckland Unlimited had a net direct expenditure of $78.5 million for the nine-month period, which is $9.4 million favourable to budget. This favourable variance is primarily due to changes in the timing of planned expenditure in response to COVID-19 driven revenue impacts and ongoing uncertainties regarding future revenues.

22.     Direct revenue is $0.4 million favourable to budget due to Activate and Reactivate Tāmaki Makaurau grant funding and wage subsidy receipts, offset by a reduction in visitor and event revenues resulting from the COVID-19 restrictions.

23.     Direct expenditure is $9 million favourable to budget due to changes in programme timing as a result of Trans-Tasman border restrictions and resurgence of COVID domestically, delays in implementation of the organisational design/target operating model and further cost controls during lockdown.

24.     Capital spend is $23.8 million for the first nine months, against a year-to-date budget of $41.6 million (57 per cent). The slowdown is due to a range of factors including the COVID restrictions on capital works under alert level 4, operational constraints impacting under alert level 3 as well as ongoing supply chain issues.  In-flight projects will be carried over into the next financial year(s) for completion.

Performance measures

25.     Auckland Unlimited has 11 SOI measures, of which seven are also measures in the 10-year Budget. Nine of the 11 measures are tracked quarterly. One is a six-monthly measure and one is an annual measure. To the end of quarter three, three performance measures are achieved, three are on track against the year-end target, and three are not on track as a result of COVID-19 restrictions. Two have not been measured.

 

 

 

26.     The three measures that are not on track are:

·     The number of people who are issued tickets to attend Auckland Live, Auckland Zoo, Auckland Art Gallery, NZ Maritime Museum and Auckland Stadiums venues and events. The year-end target (1.44m) will not be achieved due the extended Covid-19 restrictions and resulting venue closures over quarters one, two and three.

·     The percentage of operating expenses funded through non-rates revenues. The quarter three result (32 per cent) is below target (44 per cent) due to the closure of all Trust facilities over quarter one and two and capacity limitation over quarter three. This significantly impacted revenue generated by the Trust in all brands. In addition, over quarter two only two months of wage subsidy were available to offset lost revenue.

·     The contribution to regional GDP from major events and business events attracted or supported. As a result of multiple event cancellations and postponements and limitations on attendance at other events, the target ($34m) is now unlikely to be achieved by year end. The quarter three result was $15.05m.

27.     Highlights for quarter three include two Government support packages delivered via Auckland Unlimited:

·        Activate Tāmaki Makaurau: the $60m support package opened on 1 December 2021. Funding registrations closed in March with 12,807 registrations and $32.7m of funding approved to 9,939 businesses by 31 March.

·        Reactivate Tāmaki Makaurau: $25.5m support package for visitor experience vouchers. By the end of March, four waves of vouchers had been distributed and 82,000 vouchers were used to book 320,000 tickets across Auckland experiences.

28.     Other highlights include the commencement in the second half of February of the Summer at the Stadium programme of events at Mt Smart, funded via the Local Activation Programme Fund.  The new Plaza space at the New Zealand Maritime Museum is now complete, signalling the end of the museum entrance refurbishment project resulting in an improved visitor amenity and several new spaces.

Issues/risks

29.     Auckland Unlimited have highlighted the ongoing impact of COVID-19 restrictions on events, visitation, hospitality, tourism, accommodation and arts and culture, further impacting Auckland Unlimited revenues, and creating labour and supply chain disruptions.  This risk is easing into quarter four. 

30.     A further risk flagged by Auckland Unlimited is that Auckland’s reputation as a screen friendly city is at risk as it becomes increasingly difficult for location shoots to take place, due to permit regulations now required for sites being listed as mana whenua sites of significance.

Eke Panuku

Financial results

31.     Eke Panuku has been tracking favourably to its operating budget and forecast to be $3 million favourable to budget for the full year.  

32.     Direct revenue continues to be slightly favourable to budget mainly due to increased occupancy at the marinas and higher commercial property rental revenue, which more than offset the COVID-19 rental relief provided to tenants.

33.     Direct expenditure is $5.2 million favourable compared to budget due to slower than anticipated spend around repair and maintenance, consultants, external events and vacancies held.

34.     Capital spend is $25 million against a year-to-date budget of $67.3 million (37 per cent of delivery). The delivery is behind mainly due to impact from COVID-19 and supply chain issues. 

35.     Eke Panuku is currently forecasting a $40 million capital spend for the full year compared to the budget of $91 million. Main underspend areas forecast for the year include Northern Pathway related projects. With impact of COVID-19 restrictions in the first half of the year and Omicron variant on staff, contractors and suppliers, projects were affected by delayed design, consenting and tenants and stakeholder’s decisions in making property available for physical works. Planned site acquisitions were also affected by Public Works Act requirements and third-party agreements.

Performance measures

36.     Eke Panuku has a total of 12 SOI performance measures, three of which are 10-year Budget measures. One of the performance measures does not have a target this year. Of the eleven measures with targets, eight are on track against the year-end target, and three are not on track.  

37.     The three measures that are not on track are:

·     Capital project milestones approved by the board achieved (LTP measure) – five milestones have been met in the year to date, three milestones are at risk and other milestones have completion dates set close to the end of the financial year. The target for this measure is unlikely to be met (target is 80 per cent of capital project milestones completed).

·     Achieve total board approved budgeted Transform and Unlock (T&U) net sales for the financial year through unconditional agreements – the forecast is for net sales to be slightly below target at year end, at $46 million against the $48 million target. Sales in quarter four will also be at risk of market changes.

·     The asset recycling target agreed with the Auckland Council – asset sales are now forecast to be $32 million for the year against a target of $115 million. The target is not forecast to be met, but a number of the land sales or developments are expected to be under contract and concluded next financial year.

38.     Highlights for quarter three include:

·     Thriving Town Centres guidelines were approved by the Eke Panuku Board and endorsed by the Planning Committee. The guidelines outline the regeneration approach, principles and toolbox for Eke Panuku priority locations.

·     Milestones for three location plans: 

Te Ara Tukutuku Plan sets out the next steps for Wynyard Quarter and was endorsed by the Planning Committee

Updated Papatoetoe masterplan was endorsed by the Ōtara-Papatoetoe Local Board 

The draft Harbour Bridge Park concept design was endorsed by the Waitematā Local Board, ahead of wider engagement.

·     An agreement to build Takapuna Central, a $400 million mixed-use development over five sites surrounding Waiwharariki Anzac Square was signed with Willis Bond. Construction of the new Takapuna town square also commenced in January.

Issues/risks

39.     Eke Panuku highlight the challenges of continuing to manage the impacts of COVID-19 and other factors in its changing operating environment. These include competitive labour market, changing property market, building material shortages, rising inflation, tighter lending and rising interest rates.

40.     The Human Rights Tribunal hearing between Ngai Tai Waipareira Housing Ltd and Eke Panuku is expected to proceed in May and may attract significant media attention.

Watercare

Financial results

41.     Watercare’s net direct revenue is $349.4 million, $3.1 million favourable to budget for the first three quarters of the year.

42.     Direct revenue is $64.8 million better than budget mainly due to higher than budgeted infrastructure growth charges ($53 million) associated with new developments.

43.     Direct expenditure is unfavourable to budget by $61.7 million due to COVID-19 contract payments, operational costs associated with the uplift in the Waikato capital programme and digital project spend, and higher employee costs (including increased leave balances, overtime and lower labour recoveries as a result of lower capital delivery). 

44.     Capital delivery is $434.1 million (79 per cent) against a year-to-date budget of $549.4 million. The underspend mainly relates to COVID-19 Alert level 4 restrictions, which saw the closure of most construction sites.

Performance measures

45.     Watercare has a total of 27 SOI measures, of which 14 are also measures in the 10-year Budget (LTP).  Twenty-two of the 27 measures are tracked monthly. Watercare met 11 of its 10-year Budget measures in quarter three. A contributing factor to two targets not being met was the flooding on 21 March which created a work backlog, exacerbated by COVID-19 impacts on the service workforce:

·     Response time for attendance for urgent call-outs (67 minutes year-to-date median compared with a target of less than 60 minutes).

·     Response time for attendance at sewerage overflows (90 minutes year-to-date median compared with a target of less than 60 minutes).

46.     Watercare is revising the timeframe to report on real water loss from the reticulated system and no numbers were reported this quarter.

47.     Of its remaining measures, all were on track.

Issues/risks

48.     COVID-19 impacts continue across Watercare activities from disruptions with staffing and supply chain issues. Capital delivery has been affected. A review of the completion timeframe and cost claims associated with COVID-19 are currently being finalised for the Central Interceptor. There was a non-compliant wastewater discharge issue discovered at the Māngere Central Interceptor site in March 2022. The issue was remedied, and council was notified and has been provided with the investigation report.

49.     In January 2022, the Board of Inquiry granted Watercare’s application to draw an additional 150 million litres of water a day from the Waikato River for 20 years. Waikato Tainui filed a notice of intention to appeal with the High Court in February 2022. Ngāti Tahu–Ngāti Whāoa and Te Arawa River Iwi Trust have also filed their intention to join the appeal. While acknowledging the vital role of the Waikato River in Auckland’s water supply, the Water Strategy emphasises the need to increase Auckland’s water security and for Watercare to investigate alternative sources and is an area of interest for the council.

50.     Watercare is working with Healthy Waters and the northern councils on workstream activities supporting the three waters reform, including the development of a framework for a joint asset management plan. Watercare is providing support through secondment of staff to backfill positions with the northern councils and is also participating in various Department of Internal Affairs technical groups. There is a workshop scheduled with the Committee and Watercare board on the 10 June. It may be appropriate to discuss the three waters reforms and ways of working at this meeting.

Ports of Auckland Limited

Financial results

51.     Ports of Auckland Limited (POAL) revenue is tracking slightly ahead of budget with a year-to-date favourable variance of $3 million. This is driven by a strong performance from the break-bulk business and higher demurrage revenue as a result of wider supply chain congestion which offsets reduced volume through the container terminal.

52.     Direct wages are higher than budget due to the impacts of COVID-19 and capacity issues hindering container terminal operation. This overspend is more than offset by underspend in areas such as repairs and maintenance, depreciation costs due to less capital delivery, resulting in an overall favourable year-to-date operating cost to budget.

53.     The underlying net profit after tax is approximately $4 million better than the year-to-date budget. This favourable result is projected to continue with a full-year forecast of $25 million, an increase of 20.2 per cent compared to the result of $20.8 million from the last financial year.

54.     Capital expenditure is $26.7million for the nine-month period, against a budget of $56.6 million (47 per cent of delivery) mainly as a result of restrictions on capital works during the COVID-19 Alert Level 4 lockdown.

Performance measures and other issues

55.     Of the non-financial targets, five are on track and five are not met or not on track.

56.     Those targets not met or not on track are:

·     Percentage reduction in number of lost time injuries – there were 14 lost time injuries in the year to date, compared to 17 in total last year. POAL are continuously improving the management of injuries to offer better rehabilitation processes, getting staff back to work sooner.

·     CHASNZ recommendations implemented - 30 of the 45 recommendations are complete. Seven recommendations are behind target, but should be completed by 30 June 2022. There are three recommendations that will require work beyond 30 June 2022 as these involve the implementation of a new roster allocation system and processes.

·     Crane rate - crane rates are improving and just below target.

·     Ship rate - ship rates are worse than last year and still well below target. Safely improving container terminal productivity remains a top priority for POAL.

·     Percentage of land-side moves on rail – quarter three performance dropped, largely due to KiwiRail cancelling train services. This left POAL just off target.

57.     The key performance targets on track include:

·     Truck turnaround time and truck average turn time – POAL report that road grid performance has been exceptional in challenging circumstances.

·     Number of harbour spills caused by POAL - there were two minor marine spills at the port in quarter three, neither of which were as a result of POAL’s activities.

·     Multi-cargo: average car dwell times (days) – POAL note that the ability to remove cars off the port has been good in challenging circumstances of ship arrivals. 

Issues/risks

58.     Congestion in the global supply chain continues.  Auckland’s supply chain was significantly impacted by the Omicron outbreak, but there are signs of increased activity as businesses bring staff back into the work environment. Fatigue and shortages of labour capacity remain the key concern for POAL.

59.     WorkSafe completed the investigation of the fatality at the South Auckland Freight Hub during last year’s tornado and decided no further action is required.

60.     On 19 April, there was a fatal incident on a ship berthed at a multi-cargo wharf. A stevedore employed by Wallace Investments, died at the scene. Investigations are underway by Wallace Investments and Maritime NZ. POAL are fully supporting these investigations.

61.     On 21 April there was an operational issue in the automated area of the container terminal. POAL immediately suspended automated operations, while the issue is investigated. POAL are moving their automated yard back to manual operations. Due to the suspension, POAL are unable to complete the project this financial year as planned.

Tauākī whakaaweawe āhuarangi

Climate impact statement

62.     The quarterly performance reports are a key tool to monitor the progress of each CCO’s action on climate change. The CCO quarterly reports contain commentary on activities relating to climate change.

63.     Auckland Transport is on track to meet its operations and assets greenhouse gas reduction target of halving emissions by 2030.  It continues to support the Council-led Transport Emissions Reduction Plan, and has brought important supporting delivery strategies to Council for endorsement in recent months (Parking Strategy, and Cycling/Micromobility). It is working with Council to develop adaptation plans for specific, high-risk areas identified by Healthy Waters, and to incorporate the physical risk from climate change in policies and processes. 

64.     Auckland Unlimited is leading work on a Climate Innovation Hub. The first Advisory Group meeting and working session for philanthropic involvement were held during March. The website development, communications and marketing plan are all underway. A key focus is on recruiting for the Business Development Manager and Māori Advisor roles.  The Auckland Women4Climate Mentorship programme, led by AUL’s Parin Rafiei-Thompson is also now live. The Programme is organised by C40 cities, running from April to November 2022. This will provide mentorship from an experienced leader, networking access, and regular training with global experts.

65.     Eke Panuku launched a ‘future fit’ programme this quarter as a way to reinforce their sustainability work programme and facilitate action by staff to understand and reduce their carbon footprints. Eke Panuku is also a Toitū carbon reduce certified organisation, committed to measuring and managing its greenhouse gases and publicly reporting on them.  Its emissions are audited and reported on annually by Toitū NZ.

66.     Watercare is developing a Climate Change Action Plan to deliver on the direction and actions that have been established in Te Tāruke-ā Tāwhiri: Auckland's Climate Plan. The first draft of the action plan was completed April 2022 and the plan will be finalised in June 2022. The development of a decarbonisation roadmap to 2030 is also underway and will include level investment scenarios and proposed statement of intent targets.

67.     Auckland Council is currently preparing the proforma Climate Disclosures. POAL contributes to this to disclose current levels of maturity. The final disclosure is due following financial year end. POAL will undertake our scenario-based risk and opportunities assessment for this programme of work in quarter four.

68.     The Auckland Council group is required to report against the climate disclosure reporting standards from 2023/2024 under the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021. Achieving full compliance will require the council group to make fundamental changes to the organisation to ensure climate risk management is embedded into the governance structures, strategic, and financial planning processes. Work has started on this and the Chief Sustainability Office, Financial Control and Risk team are working together with the CCOs and POAL to progress the group climate disclosure. A governance group, chaired by Peter Gudsell, and a working group that includes representatives from across the council group has also been set up.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

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

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

Local impacts and local board views

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

Tauākī whakaaweawe Māori

Māori impact statement

71.     Each CCO reports on their contribution towards achieving Māori Outcomes in their quarterly report.

72.     Auckland Transport’s report outlines the wide range of activities it has undertaken with Māori organisations in the quarter (page 13).  In particular, we note the joint governance hui between the IMSB and Auckland Transport, with one item of discussion being consistency of Māori engagement across all project/strategies and improving Māori impact statements in reports.  This is an issue which has arisen twice in recent debates at Council committees and will be an issue for continued focus for Auckland Transport in the future. 

73.     Auckland Unlimited initiated an organisation-wide cultural competency survey in March, designed to assess attitudes, confidence and capability of its workforce in relation to the public sector’s ‘Te Arahwhiti cultural competency framework’. It will set independent foundational benchmarks to measure the capability development of staff for enabling Te Mahere Aronga, Auckland Unlimited’s organisational Māori Outcomes Plan. An Auckland Unlimited cultural competency app to encourage and support staff to become more confident in and increase their understanding of Māori language and tikanga is in development, with a mid-May launch date.

74.     Eke Panuku have continued engagement with mana whenua partners on projects across the business, including a focus on the review of the draft masterplan for Onehunga wharf. Two properties have been presented to mana whenua as commercial opportunities. Eke Panuku are continuing to progress the implementation of the Mana Whenua Outcomes Framework.

75.     Watercare’s new organisation plan includes Te Ao Māori values embedded throughout our organisation as one of six strategic priorities for 2022 which is aligned to the Kia Ora te Hononga (Effective Māori Participation) and Kia Hāngai te Kaunihera (An Empowered Organisation) mana outcomes. Cadetships placements for Māori have been secured in the Central Interceptor Project and other infrastructure projects, driving outcomes under Kia Ora te Rangatahi (Realising Rangatahi Potential). Planning is underway for hui with key stakeholders in the Waikato River Board of Inquiry including Waikato River iwi and the Waikato River Authority, supporting Kia Ora te Taiao (Kaitiakitanga).

76.     A draft Māori Outcomes Framework has been reviewed by the POAL Board and is being consulted on with external stakeholders. POAL have started developing the Outcomes Plan.

Ngā ritenga ā-pūtea

Financial implications

77.     Each of the CCOs and POAL’s quarterly reports contain information regarding their financial performance. These are described in the sections above. 

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

78.     Each of the CCOs and POAL’s quarterly reports contain information regarding their risks and mitigations, which is summarised above.

Ngā koringa ā-muri

Next steps

79.     This report is primarily for information purposes. The next CCO and POAL quarterly reports (quarter four April to June 2022) will be provided to the CCO Oversight Committee in September 2022.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Auckland Transport Chair covering letter quarter three report 2021/2022

23

b

Auckland Transport quarter three report 2021/2022

25

c

Auckland Unlimited quarter three report 2021/2022

47

d

Eke Panuku quarter three report 2021/2022

61

e

Watercare quarter three report 2021/2022

81

f

Ports of Auckland Limited quarter three report 2021/2022

97

      

Ngā kaihaina

Signatories

Authors

Rachel Wilson - Principal Advisor

Sarah Johnstone-Smith - Principal Advisor

Edward Siddle - Principal Advisor

Chris Levet - Principal Advisor

Claire Gomas - Principal Advisor

Trudi Fava - CCO Programme Lead

Authoriser

Alastair Cameron - Manager - CCO Governance & External Partnerships

 

 


Council Controlled Organisation Oversight Committee

24 May 2022

 

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Council Controlled Organisation Oversight Committee

24 May 2022

 

Ports of Auckland Limited Letter of Expectation

File No.: CP2022/06219

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       This report seeks approval for the proposed content of Auckland Council’s letter of expectation to Ports of Auckland Limited (POAL).

Whakarāpopototanga matua

Executive summary

2.       Council sends a letter of expectation to POAL help to establish the strategic direction of POAL for the next 12 months and to help POAL prepare a draft Statement of Corporate Intent for 2022 - 2025 (SCI) 

3.       This year’s letter of expectation should be focused on four key objectives that the council has for POAL. Those objectives are a continued focus on health safety and wellbeing, improved productivity, improved business performance, and efficient use of the land.

4.       POAL has until 1 August 2022 to provide a draft SCI to the council which should reflect the key expectations set out in the letter. The council then has one month to review the SCI and provide comments to POAL before it is finalised in October.

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Oversight Committee:

a)      approve the proposed content for Auckland Council’s letter of expectation to Ports of Auckland Limited

b)      delegate authority to the Mayor and Deputy Mayor to finalise the letter of expectation and deliver to the board of Ports of Auckland Limited. 

Horopaki

Context

5.       The letter of expectation is the opportunity for the council to set out the most important priorities and expectations (as shareholder) to inform POAL’s Statement of Corporate Intent (SCI). The letter of expectation is not a part of SCI statutory process. However, it is a useful tool to help POAL understand the expectations of the shareholder and to define what a successful port business looks like for the next 12 months.

6.       POAL will respond to the letter of expectation by providing their draft SCI. Last year was the first time the council provided a letter of expectation to POAL. It was well received by POAL management and helped to improve the quality of the SCI.

7.       POAL must provide a draft SCI to the council by 1 August.  The council then has one month to review the SCI and provide comments to POAL before it is finalised in October.

8.       Under the Act the council can at any time require POAL to modify the SCI by including or omitting any provision or provisions in the SCI. 

Tātaritanga me ngā tohutohu

Analysis and advice

9.       The letter of expectation is an opportunity to be clear about the council’s expectations for POAL. Under the Port Companies Act 1988 (the Act) the principal objective of POAL is to operate as a “successful business”. The Act does not define what “successful” means so this is left to the council and POAL to define and is set out in the SCI. Staff recommend that the letter of expectation focus on the council’s most important expectations which will form the definition of a successful port.

10.     Staff propose writing to POAL and setting out that the council has the following key expectations:

·    Operate a port that is safe.

·    Operate a port that is productive and facilitates Auckland’s economy.

·    Provide a return on investment to the shareholder.

·    Efficiently use the land that the port occupies.

11.     POAL will set out their objectives, performance targets and other measures that are required to meet these key expectations in their draft SCI.

12.     Staff consider that it is important to avoid asking POAL to meet targets for specific inputs in the letter of expectation. POAL’s new senior management and board should be allowed to use their expertise to decide on the appropriate inputs and targets that are required to meet the council’s key expectations. These inputs and targets can then be assessed when the council receives the draft SCI in August.

13.     Below is further information regarding the proposed key objectives.

Health, Safety and Wellbeing

14.     Over the past 12 months POAL has undertaken work to implement the CHASNZ recommendations and POAL’s new Safety and Wellbeing Strategic Plan that includes a broader set of actions than those recommended by CHASNZ and is aimed at delivering ongoing safety and wellbeing improvements. The letter of expectation will stress that POAL should continue to focus on improvement in health, safety and wellbeing over the next 12 months. The council expects that POAL operate a port that is both safe and productive.

15.     The target of zero fatalities and serious work-related illnesses or injuries should remain the key health, safety and wellbeing target. POAL and council health, safety and wellbeing staff are working together to agree other key targets that will demonstrate POAL’s ongoing progress in this important area. Feedback from these meetings is that POAL is making good progress and has a programme of work to continue making improvements. The letter will ask POAL to continue to work with council staff to agree the additional targets for inclusion in the draft SCI.

Productive Port

16.     As New Zealand’s largest import port, POAL plays a vital role in supporting Auckland (and New Zealand’s) trade. A productive port that can provide certainty to its customers is important for the growth of Auckland’s economy. The letter of expectation will confirm that the council expects POAL to improve in this area and set appropriate targets in the draft SCI.

Business Performance

17.     Receiving a good financial return is a key outcome expected from council’s investment in POAL. Council has put a significant amount of investment into POAL over the last few years to support the automation project and other business initiatives. A key financial target for POAL should be profitability metrics such as Return on Investment (ROI/ROA). This is a measure that evaluates how well a company performs in relation to its total assets invested and indicates how efficiently and effectively the company utilises its resources to generate income and profits.

18.     It is expected that POAL builds on the improved financial performance from the current financial year and remain committed to maintaining commercially competitive with other New Zealand and Asia-Pacific ports, restoring profitability, and providing improved return on the council’s investment. This priority becomes increasingly prominent in the coming years given the financial challenges the council group is facing for balancing its operating budget on an ongoing basis.

19.     The letter of expectation will note that the council expects POAL to incorporate ROI as a primary measure for financial performance and the targets to improve over next few years. The letter will ask POAL to work with the council’s finance staff to agree on appropriate targets with reference to historical and forecast financial performance, industry benchmarks for port companies for inclusion in their draft SCI.   

Efficient use of Land

20.     The Port occupies a valuable piece of council owned land. POAL has acknowledged in past SCI that Aucklanders have indicated that reclamation in the Waitematā should end. The council’s expectation is that POAL use the existing land footprint in the most efficient way possible to achieve appropriate performance results without further reclamation. The letter of expectation will ask POAL to work with the council on an appropriate strategy for the ongoing use of the land.

Other matters

21.     Other than the key objectives discussed above staff suggest that it is important to note the following in the letter of expectation:

·    It is important that POAL meet their 2023 deadline for completion of the Māori Outcomes Framework.

·    POAL should be asked to continue their focus on the long-term environmental sustainability goals of being carbon neutral by 2025, emission free by 2040 and zero waste to landfill by 2040.

22.     The letter should also acknowledge the improved relationship between the council and POAL and the value of POAL’s quarterly performance reporting and attendance at Committee meetings to support the quarterly reports.

Tauākī whakaaweawe āhuarangi

Climate impact statement

23.     The council supports POAL’s long term environmental sustainability goals of being carbon neutral by 2025, emission free by 2040 and zero waste to landfill by 2040 and this will be reflected in the letter of expectation.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

24.     As discussed above, the business performance of POAL is important given the financial challenges the council group is facing for balancing its operating budget on an ongoing basis.

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

Local impacts and local board views

25.     The governance of POAL is a Governing Body responsibility, and therefore local boards have not been consulted.

Tauākī whakaaweawe Māori

Māori impact statement

26.     POAL has a deadline of 2023 to complete their Māori Outcomes Framework. Council will reiterate the importance of meeting this deadline in the letter of expectation.

Ngā ritenga ā-pūtea

Financial implications

27.     As noted above, the business performance of POAL is important given the financial challenges the council group is facing for balancing its operating budget on an ongoing basis. This is reflected in the key expectations. Council finance staff have assisted in the preparation of this report and will work with POAL in the preparation of their business performance targets.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

28.     The SCI is the principal mechanism for establishing the strategic objectives of POAL. The letter of expectation is a way of providing direction to POAL for the preparation of their draft SCI. The letter of expectation helps to mitigate against the risk of POAL’s strategic objectives not lining up with the strategic direction and expectations of the council.

Ngā koringa ā-muri

Next steps

29.     Based on the approval of this report staff will finalise the letter of expectation. The Mayor and Deputy Mayor will sign off on the letter and deliver it to the POAL board. 

30.     POAL must provide a draft SCI to the council by 1 August. Council then has one month to review the SCI and provide comments to POAL before it is finalised in October.

Ngā tāpirihanga

Attachments

There are no attachments for this report.    

Ngā kaihaina

Signatories

Author

Chris Levet - Principal Advisor

Authoriser

Alastair Cameron - Manager - CCO Governance & External Partnerships

 

 


Council Controlled Organisation Oversight Committee

24 May 2022

 

CCO Review recommendation on engagement and challenging decisions

File No.: CP2022/06533

 

Te take mō te pūrongo

Purpose of the report

1.       To provide a report to the committee on the consideration of recommendation 56 of the CCO Review.

Whakarāpopototanga matua

Executive summary

2.       The CCO Review Panel recommended that the council explore options to give ratepayers a more effective voice in what happens in Auckland and how, short of court proceedings, to challenge CCO or council decisions. This report addresses the recommendation into two parts.

3.       The council’s Significance and Engagement Policy 2022 sets out the group’s approach to engagement as a genuine dialogue with Auckland’s diverse communities. Addressing the first part of the recommendation, the council whanau employs a range of engagement approaches that reflect the type of decision being made and the communities or stakeholders whose views and preferences are sought. The report includes examples of how the council and CCOs are enhancing public participation in decision-making.

4.       Regarding the second part of the recommendation, staff found that the council group makes many different types of regulatory and non-regulatory decisions which require different dispute resolution processes. For regulatory decisions, it would likely not be legally possible for a bespoke dispute resolution body to have any binding powers. In addition, a bespoke dispute resolution body of experienced practitioners would require significant budget. The review did find that the council group has various complaint resolution services and informal and formal dispute resolution processes in place. In addition, the public has access to external and independent resolution mechanisms including appeal rights, free court facilitated mediation and the Ombudsman.

Ngā tūtohunga

Recommendations

That the Council Controlled Organisation Oversight Committee:

a)      note that in addressing recommendation 56 of the Council-Controlled Organisation Review staff have explored options to give ratepayers a more effective voice in what happens in Auckland and how to challenge CCO or council decisions with the findings set out in this report

b)      note that for regulatory decisions, it would not be appropriate or legally possible for the council group to implement an alternative dispute resolution body with binding powers

c)      agree that the council group already has a number of avenues for members of the public to raise complaints or issues relating to non-regulatory decisions, and that at this time there is no need to add additional dispute resolution mechanisms.

Horopaki

Context

5.       Recommendation 56 in full reads:

The council and CCOs should explore options to give ratepayers a more effective voice in what happens in Auckland and also how, short of court proceedings, to challenge CCO or council decisions.

6.       This report addresses the recommendation into two parts. The first part of this recommendation is that the council and CCOs explore options to give ratepayers a more effective voice in what happens in Auckland. This reflects the Review panel observation that the public do not think the CCOs and the council take sufficient account of their views. The review panel urged the council group to consider more innovative ways to connect with Aucklanders outside formal consultation processes, to get a feel for the likely public response to a proposed project.

7.       The second part of the recommendation is to “explore options… short of court proceedings, to challenge CCO or council decisions”. The CCO Review Panel noted that several submitters expressed concern about the lack of any remedy short of court proceedings or a complaint to the Parliamentary Ombudsman to challenge CCO or council decisions. One councillor suggested to the panel that the council should implement a “people’s panel” which would be a panel of experienced mediators as a possible way to resolve complaints and disputes.

Tātaritanga me ngā tohutohu

Analysis and advice

Explore options to give ratepayers a more effective voice

8.       Auckland Council is required to have a Significance and Engagement Policy (SEP) under the Local Government Act 2002, section 76AA. The policy was refreshed in 2022 and sets out the council group approach to engagement as a genuine dialogue with Auckland’s diverse communities (GB/2022/9).

9.       The issue raised by the Review is recognised by the council and the SEP acknowledges the need to regularly refine tools and methods to engage more effectively with groups and communities, particularly those that have previously been less involved in council decisions. Council and its CCOs need to provide accessible, relevant and inclusive engagement processes for Auckland's growing and increasingly diverse communities. The SEP sets the engagement framework and the council whanau is consistently exploring new ways of engagement. 

10.     At a local level, the development of local board engagement plans has contributed to better alignment of consultation activities and helped to identify areas for public consultation opportunities and determine appropriate joint action as needed. Community research and insights are shared across the council whanau to understand the views of local communities.

11.     One way that the council ensures it is engaging according to best practice guidance, is by following the International Association of Public Participation (IAP2) approach which indicates different engagement approaches on a spectrum from providing information through to community empowerment. The type and nature of the decision, including its significance, guides how the council group deploys a range of engagement approaches.

12.     Examples of engagement approaches across the council group are provided below.  

a)      Watercare is currently working with the Koi Tū Centre for Informed Futures (a research entity within the University of Auckland), to develop a process for collaborative decision making by bringing a diverse representative group together, to learn, deliberate and make an informed decision on a complex problem. The “Citizens’ assembly” process will be used to help determine what the next future water source will be for Auckland by mid 2040s. This will trial the deliberative democracy process as a tool to help navigate complex conversations and make decisions alongside customers about the long-term future of Auckland’s water supply.

 

 

 

b)      Watercare has a partnership with the Mana Whenua Kaitiaki Managers Forum (Kaitiaki Forum), which represents 19 iwi authorities from within Tāmaki initiated in 2021. Over the last year, the role of the Forum has been reviewed, within key water-related activities as well as the continuation of a refreshed direction into the foray of socio-environmental matters.  Since 2021, the Forum has maintained an operations focus, promoting modes of efficient and effective working process through relationships with Watercare across issues associated with servicing the demands of population-based growth, as well as the urban development across Tāmaki Makaurau. 

c)      For the Central Interceptor project, Watercare has set up a Cultural Outcomes Group comprising representatives from the Kaitiaki Forum, Watercare and Ghella Abergeldie Joint Venture. This Group has an “on the ground” presence that can identify and respond quickly to emerging issues.

d)      For large projects, Watercare sets up dedicated Community Liaison Groups to work with them as they plan, design and construct projects, for example the Huia water treatment plant replacement project. Watercare regularly meet with these groups aiming to optimise design, minimise adverse effects, and deliver good community outcomes. 

e)      The Eke Panuku placemaking team works with diverse local communities in different ways and on a consistent basis to build trusting relationships. These relationships then provide a basis in which to have meaningful conversations about the change happening in their neighbourhoods, including how they can help shape their places. A ‘Do-learn-do’ approach is used to test change in neighbourhoods in order to seek community responses in an iterative, public and highly experimental way.

f)       Eke Panuku has made engagement more inclusive engagement through the use of the Social Pinpoint digital engagement tool. The tool was chosen to gain wider reach across communities, overcoming language, cultural and age barriers. Feedback received through Social Pinpoint better reflects the demographics of the people in the area, meaning that Eke Panuku is able to provide advice to local boards based on better information from its diverse communities.

g)      The drive to generate more collaboration across CCOs has resulted in more joined-up engagement with communities and key stakeholders. Examples of this occur across a number of neighbourhoods where regeneration work is being done in particular. Eke Panuku and Auckland Transport have combined efforts in engagement in Henderson, for example where a local shop was used as a consultation drop-in centre for roading changes relating to regeneration of the town centre. Other examples include Manukau Sports Bowl masterplan options engagement, Manukau walking and cycling plan, consultation on the Eke Panuku ‘Thriving Town Centres Guidelines’, the Toka Puia carpark in Takapuna, Old Papatoetoe masterplan, Roulston Park consultation in Pukekohe and the handover of the Dockline Tram from Eke Panuku to MOTAT.

h)      Eke Panuku hosts weekly engagement with mana whenua to seek views on regeneration and property programme activities. Often mana whenua representatives are deeply involved in the work, and Eke Panuku have provided the example of Te Whakaoranga o Te Puhinui Charter which represents joint commitment to work together to return ora (health) to Te Puhinui - tangata, whenua and taiao.

i)       Auckland Transport has two accessibility advisory groups. The Public Transport Accessibility Group focuses on the experience of public transport and the Capital Projects Accessibility Group concentrates on engineering design and build. Member representatives include mana whenua and disability sector organisations. Recent examples of input include audio announcements on bus routes across the network, PlusOne fare concession, City Rail Link development from conceptual design and Downtown Ferry wharf development design and build.

 

j)       Council’s community partner programme has been valuable in improving the reach into Auckland’s diverse communities. Community partners act as advisors and also reach out to communities, including Pasifika, Youth, Refugee, Chinese, Indian, and disability communities.

k)      The Industry Leaders Group is an informal forum for council to hear from Auckland business leaders, and recent discussions have included development contributions, and COVID-19 impact, response and recovery.

l)       Council’s Have your Say online engagement platform provides an improved ability to show how public input has been taken into account in council decision-making.

m)     Various engagement approaches by Auckland Transport include:

i)        Research on Aucklanders voice and what is important for them on issues such as road safety, climate change, public transport and active motivations and understanding barriers.

ii)       Co design and exploratory engagement, for example on Māngere cycleways, Innovative Streets, and with Eke Panuku on town centre regeneration.

iii)      Formal consultation that meets legislative requirements, for example on the regional land transport plan, bylaws and safe speeds.  

13.     The SEP also sets out that the council should establish and maintain enduring relationships with its communities to provide appropriate opportunities for issues to be raised and information to be shared on matters which are not currently under formal consultation. This is done through a range of approaches such as mana whenua and mataawaka hui, the demographic advisory panels, the People's Panel, reference groups and forums.

14.     Practical engagement guidelines will be refreshed during 2022 to support the SEP.  This will be developed in collaboration with community partners and other experts and will outline best practice engagement.

Explore options to challenge CCO or council decisions

Types of Decisions

15.     The council group make many different types of decisions which vary in process, legal status, the discretion exercised, the decision-maker and significance to people and the region. It follows that the appropriate type of dispute resolution process should also vary depending on the type of decision.

16.     The Panel did not specify what type of decisions the proposed alternative dispute resolution process (ADR) should deal with which made it difficult to focus on one type of decision. As a result, staff considered the many different types of decisions at a high level and explored the existing mechanisms already in place to deal with complaints or disputes and whether a bespoke ADR process might be appropriate.

Regulatory Decisions

17.     Each decision made by the council group is either regulatory or non-regulatory. A regulatory decision relates to a regulatory responsibility, duty, or power, which the council has been given by legislation. A regulatory decision can be enforced against individuals under legislative authority.

18.     Regulatory decisions, such as under the Resource Management Act and parts of the Local Government Acts, are made by a mix of staff, independent commissioners, the Regulatory Committee or the Planning Committee. These decisions are made by the decision-makers with delegated authority and these powers usually cannot be delegated to mediators. Therefore, an independent ADR body such as a people’s panel would not be able to make a decision that was binding on the decision-maker.

19.     Regulatory decisions usually include a right of objection or an appeal under various statutes. Where there is an appeal right, such as to the Environment Court, the Court usually orders Court assisted mediation which is facilitated by independent commissioners and is undertaken at no cost to the parties. Legal Services confirm that this mediation service has a very high success rate.

Non-Regulatory Decisions

20.     In contrast to regulatory decisions, a non-regulatory decision is simply one that does not relate to a regulatory responsibility, duty or power.

21.     The council has a complaints policy that sets out an escalation process to deal with disputes or complaints about council decisions. The council has the Customer Relations Team whose role is to investigate escalated complaints. That team has highly experienced officers who engage with the complainant and relevant business units including Legal Services to investigate issues and provide responses on behalf of the CEO and others.

22.     Complaints which cannot be resolved to a customer’s satisfaction can be referred to a Customer Relationship Manager to assist with dispute resolution. Council’s complaint policy has a formal escalation process for customers, or staff can refer the complaint on the customer’s behalf. The role of the Relationship Manager is to review the process and the decision from a customer’s viewpoint, and to liaise between customer and council staff to reach a resolution. This could require further investigation or action and ultimately lead to a change of decision, or an explanation of the validity of the original decision.  The Relationship Managers work with the CCOs on issues that cross organisations, however, do not have a mandate to implement decision changes.

23.     Where there is substance to a complaint Legal Services will try to resolve the matter. However, Legal Services note that often there is a difference of opinion particularly as to liability or statutory compliance issues and despite thorough explanations, the outcomes are not accepted by complainants. In those cases, complainants can ask the Office of the Ombudsman to investigate, which is a free and completely impartial service, and the council follows the recommendations of the Ombudsman. This ensures reasonable and consistent decision-making. 

24.     Watercare has a centralised complaints and escalation process. It actively promotes Watercare’s teams’ cross functionally to raise complaints to understand customer pain points. Customers are encouraged to inform Watercare if they are dissatisfied with any aspect of Watercare’s services. Watercare’s Resolutions team will work with relevant subject matter experts in the business to resolve complaints in a fair, timely and confidential manner. Should the customer still feel aggrieved in any way, they will have the option to escalate the complaint/issue through to our executive team.  If they are still not satisfied, then customers have the option of referring the matter to the Disputes Tribunal or Ombudsman, depending on the nature of the issue. At any internal escalation point, the responsible party may choose to solicit support from other internal resources, for example Internal Audit, or external resources, for example an independent mediator, to further investigate and resolve the complaint/issue.

25.     Watercare has also established a procedure for the lodging and determining of an objection to an infrastructure growth charge (IGC).  IGCs are a contribution towards the capital investment Watercare makes in bulk infrastructure to provide services to new or existing customers who increase their demand on our services (i.e. property owners or developers applying for new connections to our network, and commercial customers who increase demand for water/wastewater).  Whilst an objection to an IGC charge would typically go via the Courts given the quantum involved, Watercare established objection process provides a much faster and more affordable alternative. The Objection process is governed by a Charter [1]. As a general rule, the costs incurred in running the objection process are waived in the event the Objection is upheld by the Independent Commissioner.

26.     Auckland Transport has an adjudications panel for infringements (e.g. parking) which reviews the issue of infringement notices. AT has also ramped up activity in its market insights and voice of customer team in terms of research and increased activity involving customers at ‘design’ phase with ratepayers to reduce the likelihood of disputed decisions.

Integrity of Decision Making

27.     For complaints that question the integrity of staff actions or decision-making, the council has an Integrity and Investigation team with experienced investigators who review actions and decision-making. They also often seek views from Legal Services.

Cost of Alternative Dispute Resolution

28.     The proposed idea of having a peoples panel of experienced mediators would likely be cost prohibitive based on Legal Servicers recent experience of engaging professional mediators. Mediators typically charge $8,000 to $10,000 to prepare and attend a single day mediation. Mediation is typically considered an expensive way to attempt to resolve disputes unless they involve a financial claim of large value. Significant budget would need to be provided for the council to set up a bespoke ADR process staffed by professional practitioners.

Conclusion

29.     The Review Panel observed that “the concept of a complaint resolution body is a good one – and again, other sectors have such mechanisms – but plainly the idea would need careful thinking through, although this does not mean it is not worthy of consideration”.

30.     Exploring this recommendation has highlighted that the council group does consider complaint resolution as important and has existing mechanisms in place to attempt to address disputes. The disputes are filtered through the customer relations teams and often involve legal review of decisions. Matters that proceed to the Courts also involve free Court assisted mediation facilitated by independent commissioners. The Ombudsman also offers free dispute resolution services.

31.     Staff exploration of this recommendation also identified some obstacles to an effective ADR process such as a “peoples panel”. For regulatory decisions, it would not be appropriate or legally possible for the council group to implement an ADR body with binding powers. Furthermore, experience suggests that it would be a cost prohibitive exercise and significant budget would need to be found.

Tauākī whakaaweawe āhuarangi

Climate impact statement

32.     There are no immediate climate impacts arising from this report.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

33.     The report explores the engagement activities and dispute resolution processes of the council group.

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

Local impacts and local board views

34.     The engagement and dispute resolution processes explored in this report relate to regional and local decisions. 

 

Tauākī whakaaweawe Māori

Māori impact statement

35.     In the Significance and Engagement Policy the council sets out its commitment to meeting legal obligations to Māori including responsibilities under Te Tiriti o Waitangi, and to recognising the enduring presence, aspirations, and cultural obligations of mana whenua as kaitiaki in Tāmaki Makaurau. The policy reflects the role of the Independent Māori Statutory Board and its work to promote issues of significance for mana whenua and mataawaka, and to ensure that the council acts in accordance with statutory provisions referring to Te Tiriti o Waitangi.

36.     The CCO Review and Te Waka Kotuia, the 2021 Treaty Audit undertaken by the Independent Māori Statutory Board, emphasised the need to strengthen council’s iwi and Māori engagement and participation approaches, guidance to staff and capabilities. A review has commenced which will examine existing mechanisms and approaches and identify key gaps and risks across the current arrangements. The Independent Māori Statutory Board and other statutory bodies are not within scope of the review. A key outcome from the review is to enable mana whenua iwi and mataawaka communities to participate in, and influence, council decision-making. This aligns with ‘Kia ora te Hononga, Effective Māori Participation’ within Kia Ora Tāmaki Makaurau.

Ngā ritenga ā-pūtea

Financial implications

37.     There are no immediate financial implications arising from this report. However, the report does note that significant budget would need to be provided for the council to set up a bespoke ADR process staffed by professional practitioners.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

38.     There are no immediate risks arising from this report.

Ngā koringa ā-muri

Next steps

39.     The recommendation asked the council to explore options to give ratepayers a more effective voice and how to challenge CCO or council decisions. There are no further steps planned for this recommendation beyond the exploration discussed in this report unless staff are directed.

Ngā tāpirihanga

Attachments

There are no attachments for this report.    

Ngā kaihaina

Signatories

Author

Chris Levet - Principal Advisor

Trudi Fava - CCO Programme Lead

Authoriser

Alastair Cameron - Manager - CCO Governance & External Partnerships

 

 


Council Controlled Organisation Oversight Committee

24 May 2022

 

Liaison councillors' updates

File No.: CP2022/04602

 

  

 

Te take mō te pūrongo

Purpose of the report

1.      To 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)      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

24 May 2022

 

Summary of Council Controlled Organisation Oversight Committee information memoranda and briefings (including the forward work programme) - 24 May 2022

File No.: CP2022/05887

 

  

 

Te take mō te pūrongo

Purpose of the report

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

2.       To 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 workshops/briefings have taken place:

Date

Subject

04/5/2022

Confidential: Auckland Unlimited – Stadiums Strategy.

10/5/2022

Site Visit – Auckland Unlimited.

5.       The following information items have been distributed:

Date

Subject

17/5/2022

Report from 17 May 2022 Audit and Risk Committee: Item 10 - Ports of Auckland Audit and Risk Activity Update May 2022.  Resolution number AUD/2022/17

17/5/2022

Confidential report from 17 May 2022 Audit and Risk Committee: C1 CONFIDENTIAL: Council-controlled organisations' quarterly risk update - May 2022.  Open resolution number AUD/2022/23

6.       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)      note the progress on the forward work programme appended as Attachment A of the agenda report

b)      receive the Summary of Council Controlled Organisation Oversight Committee information memoranda and briefings – 24 May 2022.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Forward Work Programme

123

b

Report from 17 May 2022 Audit and Risk Committee: Item 10 - Ports of Auckland Audit and Risk Activity Update May 2022

129

     

Ngā kaihaina

Signatories

Author

Duncan Glasgow - Kaitohutohu Mana Whakahaere / Governance Advisor

Authoriser

Alastair Cameron - Manager - CCO Governance & External Partnerships

 

 


Council Controlled Organisation Oversight Committee

24 May 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

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, April 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.

·    Watercare – 10 June 2022.

·    Ports of Auckland – 3 June 2022.

·    Auckland Transport – 17 June 2022.

·    Eke Panuku – 5 July 2022.

 

Progress to date:

Auckland Unlimited – 10 May 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 final 2022/25 Statements of Intent from its substantive and non-substantive CCOs.

 

Progress to date:

Committee approval of draft shareholder comments for 2022/25 Statements of Intent from its substantive and non-substantive CCOs – April 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

Confidential workshop held 4 May.

 

 

 

 

 

 

 

 

 

 

 

 

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 2021

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 2021

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 2021

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)

CCO Review Updates 2022

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

Committee received an overview of the implementation programme and noted that the Group Chief Executives Forum will continue to monitor implementation of outstanding review recommendations.

(Link to decision CCO/2022/14)

 


Council Controlled Organisation Oversight Committee

24 May 2022

 

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Council Controlled Organisation Oversight Committee

24 May 2022

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Exclusion of the Public: Local Government Official Information and Meetings Act 1987

That the Council Controlled Organisation Oversight Committee

a)      exclude the public from the following part(s) of the proceedings of this meeting.

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution follows.

This resolution is made in reliance on section 48(1)(a) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by section 6 or section 7 of that Act which would be prejudiced by the holding of the whole or relevant part of the proceedings of the meeting in public, as follows:

 

C1       CONFIDENTIAL: Stadiums operating model

Reason for passing this resolution in relation to each matter

Particular interest(s) protected (where applicable)

Ground(s) under section 48(1) for the passing of this resolution

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

s7(2)(b)(ii) - The withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information.

s7(2)(h) - The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.

In particular, the report contains information which if made public could prejudice or disadvantage the commercial position of the entities which supplied it and their ability to undertake commercial activities.

s48(1)(a)

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

 



[1] https://www.watercare.co.nz/CMSPages/GetAzureFile.aspx?path=~\watercarepublicweb\media\watercare-media-library\customer-contract\charter_for_commissioners.pdf&hash=3ae832df8f3dd591e1e3ec283dabd72d7e090d1d4d0b96fcbf0c5891081b6066