I hereby give notice that an ordinary meeting of the CCO Direction and Oversight Committee will be held on:

 

Date:

Time:

Meeting Room:

Venue:

 

Thursday, 9 November 2023

10.00am

Room 1, Level 26
135 Albert Street
Auckland

Komiti mō te Whakahaere Tikanga me te Aro ki

te Pae Tawhiti mō ngā Whakahaere ka

Whakahaerehia e te Kaunihera /

Council Controlled Organisation Direction

and Oversight Committee

 

OPEN AGENDA

 

 

MEMBERSHIP

 

Chairperson

Cr Shane Henderson

 

Deputy Chairperson

Cr Kerrin Leoni

 

Members

Cr Josephine Bartley

IMSB Chair David Taipari

 

Cr Angela Dalton

Cr Ken Turner

 

Cr Chris Darby

Cr Wayne Walker

 

IMSB Member Hon Tau Henare

Cr John Watson

 

Cr Richard Hills

Cr Maurice Williamson

 

Cr Daniel Newman, JP

 

Ex-officio

Mayor Wayne Brown

 

 

Deputy Mayor Desley Simpson, JP

 

 

(Quorum 6 members)

 

 

Duncan Glasgow

Kaitohutohu Mana Whakahaere Matua /

Senior Governance Advisor

 

6 November 2023

 

Contact Telephone: +64 9 8902656

Email: duncan.glasgow@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

 


Council Controlled Organisation Direction and Oversight Committee

09 November 2023

A close up of a logo

Description automatically generated

 

ITEM   TABLE OF CONTENTS                                                                                         PAGE

1          Ngā Tamōtanga | Apologies                                                                                         5

2          Te Whakapuaki i te Whai Pānga | Declaration of Interest                                         5

3          Te Whakaū i ngā Āmiki | Confirmation of Minutes                                                    5

4          Ngā Petihana | Petitions                                                                                                5  

5          Ngā Kōrero a te Marea | Public Input                                                                           5

6          Ngā Kōrero a te Poari ā-Rohe Pātata | Local Board Input                                        5

7          Ngā Pakihi Autaia | Extraordinary Business                                                              5

8          Tāmaki Regeneration Company Annual Report 2022/2023                                      7

9          Haumaru Housing Annual Report 2022/2023                                                           11

10        Contemporary Arts Foundation Performance Report 2022-2023                          15

11        Quarter one performance reports 2023/2024 for substantive council controlled organisations                                                                                                               19

12        Summary of Council Controlled Organisation Direction and Oversight Committee information memoranda and briefings (including the forward work programme) – 9 November 2023                                                                                                            27

13        Te Whakaaro ki ngā Take Pūtea e Autaia ana | Consideration of Extraordinary Items

 


1          Ngā Tamōtanga | Apologies

 

 

 

 

2          Te Whakapuaki i te Whai Pānga | Declaration of Interest

 

 

 

 

3          Te Whakaū i ngā Āmiki | Confirmation of Minutes

 

            Click the meeting date below to access the minutes.

 

That the Council Controlled Organisation Direction and Oversight Committee:

a)         whakaū / confirm the ordinary minutes of its meeting, held on Thursday, 12 October 2023, including the confidential section, as a true and correct record.

 

 

 

 

4          Ngā Petihana | Petitions

 

 

 

 

5          Ngā Kōrero a te Marea | Public Input

 

 

 

 

6          Ngā Kōrero a te Poari ā-Rohe Pātata | Local Board Input

 

 

 

 

7          Ngā Pakihi Autaia | Extraordinary Business

 

 

 

 

 


Council Controlled Organisation Direction and Oversight Committee

09 November 2023

 

Tāmaki Regeneration Company Annual Report 2022/2023

File No.: CP2023/16776

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To receive the Tāmaki Regeneration Company Annual Report for 2022/2023.

Whakarāpopototanga matua

Executive summary

2.       Tāmaki Regeneration Company[1] (TRC) is a joint venture between the crown and council designed to achieve large-scale urban regeneration. Its objectives are fourfold, to achieve – social transformation, economic development, placemaking and housing/resources.

3.      TRC has delivered well against its targets for tenancy management, social regeneration, economic regeneration and placemaking. However, its build programme continues to progress slower than anticipated.

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Direction and Oversight Committee:

a)      whiwhi / receive the Tāmaki Regeneration Company Annual Report for 2022/2023.

Horopaki

Context

4.       TRC is a crown entity, created in 2012 to bring about the urban regeneration of Tāmaki. The area includes Glen Innes, Panmure and Point England. Auckland Council has a 41 per cent shareholding in TRC, with the crown owning the remaining 59 per cent.

5.       TRC’s annual report enables assessment of their performance against its Statement of Intent 2021-2025 (four-year plan) and Statement of Performance Expectations 2022/2023 (annual plan). Note that these are documents under the Crown Entities Act 2004 and Public Finance Act 1989 to ensure public accountability to the crown.  

Tātaritanga me ngā tohutohu

Analysis and advice

6.       TRC met 21 out of 27 of the annual statement of performance expectation measures for 2022/2023. The table below outlines performance measure results achieved against TRC’s strategic priorities.

TRC strategic priorities  

Target met

Target not met

Total

Housing resources - optimising the use of land and existing housing stock to effectively support and deliver social and economic results, including better public housing options for Tāmaki. 

8

6

14

Social transformation - supporting Tāmaki residents and families to gain the skills, knowledge, and employment opportunities to progress their lives.

9

0

9

Economic development - strengthening the local economy and unlocking the potential of the Tāmaki area to enable a prosperous community and deliver better value for money to the Crown.

1

0

1

Placemaking - creating safe and connected neighbourhoods that support the social and economic development of Tāmaki and its community.

3

0

3

Total

21

6

27

7.       Three of the measures that were not met relate to tenant satisfaction and turnaround time between tenants, which were all impacted on pressure on maintenance and repair services across Auckland following severe weather events in early 2023.

8.       The other three measures that were not met were housing delivery targets. This work was affected by the delays from the severe weather events, with delivery pushed into 2023/24.

9.       TRC is forecast to underdeliver on new public homes and shared equity homes (shared home ownership) delivery targets in Statement of Intent its 2021-2025 but is on track to deliver third-party affordable homes.

10.     The focus of TRC over the next four years will be on increasing the pace of delivery, including delivery of public homes and shared equity homes. TRC was allocated $870m in equity funding as part of the crown budget 2023, which included an agreed delivery plan for the 2024-2027 (inclusive). Kainga Ora are the master developer for Tāmaki.

11.     Tāmaki Redevelopment Company Limited Group has generated $2.3 million surplus for the year, exceeding the budget by $1.7 million. The group includes the Tāmaki Redevelopment Company Limited (TRC) and its subsidiary Tāmaki Housing Association (tenancy and property management). The financial statements exclude Tamaki Regeneration Limited (the asset owning company). Note that council has no direct control over either subsidiary.

Tauākī whakaaweawe āhuarangi

Climate impact statement

12.     TRC have an environment strategy to restore and revitalise the taiao of Tāmaki. The strategy supports TRC to respond to climate change and restore the whenua (land), hau (air), wai (water) and koiroa (biodiversity) of Tāmaki. The key moves identified in the strategy are being implemented.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

13.     TRC work across the council group, including the Development Programme Office, Auckland Transport and Watercare. 

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

Local impacts and local board views

14.     TRC works with, and regularly reports to, the Maungakiekie-Tamaki Local Board.

Tauākī whakaaweawe Māori

Māori impact statement

15.     Te Tiriti of Waitangi is one of TRCs two strategic commitments. TRC work to achieve Māori outcomes across all four of their strategic priorities – housing resources, social transformation, economic development and placemaking. This includes a close relationship with mana whenua.  

Ngā ritenga ā-pūtea

Financial implications

16.     The TRC annual report contains information regarding their financial performance for the 2022/2023 year. 

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

17.     There are no specific risks associated with council receiving the TRC annual report for 2022/2023.

Ngā koringa ā-muri

Next steps

18.     TRC quarterly reports are circulated to the CCO Oversight Committee.

19.     The next TRC statement of intent (their four-year planning document, reviewed every three years) will be written in 2024. The crown will be writing a letter of expectation to TRC to guide the development of the statement of intent. Any additional direction from council, can be considered in 2024. 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Tāmaki Regeneration Company Annual Report 2022/2023

 

      

Ngā kaihaina

Signatories

Author

Rachel Wilson - Principal Advisor

Authoriser

Alastair Cameron - Manager - CCO Governance & External Partnerships

 

 


Council Controlled Organisation Direction and Oversight Committee

09 November 2023

 

Haumaru Housing Annual Report 2022/2023

File No.: CP2023/14962

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To receive the Haumaru Housing Annual Report for 2022/2023.

Whakarāpopototanga matua

Executive summary

2.       The Haumaru Housing Limited Partnership (Haumaru Housing) provides affordable housing services for older people. It is a joint venture between Auckland Council and the Selwyn Foundation.

3.       The Haumaru Housing Annual Report for 2022/2023 shows that all five of their performance indicators have been met. Overall tenant satisfaction remains high at 94 per cent, measured in the tenants’ survey undertaken in May 2023, with 66 per cent of all tenants responding. 

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Direction and Oversight Committee:

a)      whiwhi / receive the Haumaru Housing Annual Report for 2022/2023.

Horopaki

Context

4.       Haumaru Housing provides affordable housing services for older people, in the portfolio of 1,475 rental units (in 62 villages) across Auckland. Formed in 2016, Haumaru Housing is a joint venture (limited liability partnership) between Auckland Council and the Selwyn Foundation. Council has a 49 per cent interest and owns most of the housing portfolio and Selwyn has a 51 per cent interest. 

5.       The partnership was set up to:

·    improve the housing stock and tenancy management over time, ensuring they were fit for purpose.

·    access the income related rent subsidy (IRRS) provided by central government, which is not available to local authorities. 

·    use the expertise which Selwyn could bring to supporting older people.

·    grow the number of units of social housing for older people. 

Tātaritanga me ngā tohutohu

Analysis and advice

6.       Haumaru Housing have met or exceeded all five of their key performance indicators in 2022/2023, as specified in the deed of lease with council. This includes unit occupancy of 98 per cent (target of 95 per cent), a portfolio of 1,475 rental units (minimum 1,412), maintaining community housing provider registration and 100 per cent of units meeting specified maintenance standards.   

 

 

7.       Overall tenant satisfaction remains high at 94 per cent (target to be over 79 per cent), this was measured in a tenants’ survey undertaken in May 2023. Tenant satisfaction has dropped for grounds maintenance, which is at 84 per cent satisfaction, down from 90 per cent in 2020. This is partly due to weather conditions, which impacted the ability to maintain lawns and gardens to normal standards.

8.       Other highlights included:

·    achieving 100 per cent compliance with Healthy Homes standards 

·    opening of Wilson Village, a purpose-built, six-level, 41 one-bedroom apartment development with Kainga Ora.

9.       The Auckland flood in January 2023 resulted in 51 units damaged and 39 units uninhabitable, with tenants decanted elsewhere. The three most impacted villages were Alma Court in Milford, Parkway Village in Pukekohe and Topping Court in Mangere East.

10.     Financial results include revenue of $21 million, a net operating surplus of $4.9 million and a capital spend of $5.4 million on the council property portfolio. Any net surplus is retained and reinvested into the aging portfolio.

Tauākī whakaaweawe āhuarangi

Climate impact statement

11.     Haumaru Housing has committed to measuring and reducing their carbon emissions, with the programme starting from 1 July 2023. They have received advice from the Chief Sustainability Office at council on this.

12.     The Auckland floods and subsequent cyclone in January 2023 led to the creation of a Haumaru emergency preparedness document. This is to ensure that should such events occur again, tenants will be clear on pathways of support, both from Haumaru and from the Auckland Council Emergency Management.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

13.     Haumaru Housing services and actions contribute to outcomes in the Auckland Plan and the Age-friendly Auckland Action Plan. The Tenancy Quality Manager at Haumaru Housing is the Chair of Te Rōpū Whakamana ki te Ao, the age-friendly governance group.

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

Local impacts and local board views

14.     Haumaru Housing engages with local boards on events, activities and issues as appropriate. Contact is also made with council on a no-surprises basis, where a significant issue is identified.

Tauākī whakaaweawe Māori

Māori impact statement

15.     Haumaru Housing staff have monthly cultural teaching and advice (note: 11 per cent of tenants are Māori). Any engagement with mana whenua on new development sites is undertaken through Eke Panuku.  

Ngā ritenga ā-pūtea

Financial implications

16.     The Haumaru Housing annual report contains information regarding their financial performance for the 2022/2023 year. The financial information is independently audited.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

17.     There are no specific risks associated with council receiving the Haumaru Housing annual report for 2022/2023.

Ngā koringa ā-muri

Next steps

18.     This report is primarily for information purposes. The next half year performance report (six months to December 2023) will be circulated to the CCO Oversight Committee in early 2024.

19.     Growing the number of units of social housing for older people is one of the aims of the partnership. Haumaru Housing, Council, Eke Panuku and Selwyn will continue to work together to identify long-term options to achieve this goal.   

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Haumaru Housing Annual Report 2022/2023

 

     

Ngā kaihaina

Signatories

Author

Rachel Wilson - Principal Advisor

Authoriser

Alastair Cameron - Manager - CCO Governance & External Partnerships

 

 


Council Controlled Organisation Direction and Oversight Committee

09 November 2023

 

Contemporary Arts Foundation Performance Report 2022-2023

File No.: CP2023/16540

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To receive the Contemporary Arts Foundation Performance Report 2022-2023.

Whakarāpopototanga matua

Executive summary

2.       The Contemporary Arts Foundation (CAF) is a council-controlled organisation which is concerned with the promotion of the arts within the Auckland Region. CAF owns the Te Tuhi Gallery at 13 Reeves Road, Pakuranga and subleases it to the Te Tuhi Contemporary Arts Trust to deliver on CAF’s objectives.

3.       In 2022-2023, CAF report that, with the exception of total visitor numbers, all targets agreed in their statement of intent have been met.

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Direction and Oversight Committee:

a)      whiwhi / receive the Contemporary Arts Foundation Performance Report 2022-2023.

Horopaki

Context

4.       CAF is a council-controlled organisation under the Local Government Act 2002. The Trust was originally established under the Manukau City Council in 2000 as the Pakuranga Arts and Cultural Trust. In 2010 the Trust deed was amended and the objectives of the trust were expanded to apply to the Auckland Region.

5.       The purpose of CAF is to promote, encourage and support the Arts within the Auckland Region for the benefit and enjoyment of the Auckland community and wider public.

6.       In July 2021, the Parks Arts Culture and Events committee approved $604,673 annual funding for the Trust for three years from 2021 to 2024 [PAC/2021/30].

7.       CAF is the owner of the Te Tuhi Gallery building at 13 Reeves Road. This building is leased to Te Tuhi Contemporary Arts Trust (TTCAT). TTCAT is subcontracted to deliver programmes for the Trust. CAF also holds a license to occupy at the Parnell Train Station which is used by TTCAT for artist studios. TTCAT also provides coordination for programmes delivered at O Wairoa Marae in Howick.

Tātaritanga me ngā tohutohu

Analysis and advice

8.       The Contemporary Arts Foundation Performance Report 2022-2023 is provided as Attachment A. Financial results are that CAF has achieved a small operating surplus of $2,167, but an accounting deficit of $218,740 due to the depreciation expense.

9.       A summary of performance against statement of intent measures is provided in Table 1 below.


 

Table 1: Contemporary Arts Foundation performance 2022-2023

Measure

Target

2022-2023 Actual

Total visitors

150,000

119,636

Number of exhibitions

12

16

Number of artists

15

60

Number of commissions

15

40

Number of public events

15

27

Number of school students participating in programmes

5,000

5,656

Number of workshops and classes

50

53

 

10.     Numbers of artists and exhibitions are significantly higher than target as a result of a multi-project digital programme that ran through the year.

11.     Visitor numbers were the only measure where the target was not met. Visitation has increased from the COVID impacted years but has not fully recovered and is at 71 per cent of the pre-COVID average. The Trust expect that in future, visitor number will be further impacted by the construction of the Eastern Busway which will be adjacent to Te Tuhi.

Tauākī whakaaweawe āhuarangi

Climate impact statement

12.     One of the Trust’s strategic aims is:

To be a socially accountable, environmentally sustainable, and financially resilient organisation, whose governance and everyday practices align with these principles.”

13.     This objective aligns with the direction of Te Tāruke-ā-Tāwhiri, Auckland’s Climate Plan.

14.     TTCAT has participated in a sustainability scorecard pilot, led by Customer and Community Services staff and have developed an action plan to increase sustainability and community resilience.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

15.     CAF’s activities contribute to the outcomes sought by the council in the following plans:

·    Ngā hapori Momoho Thriving Communities Strategy 2022-2032

·    I Am Auckland – the Children and Young People’s Strategic Action Plan Goals

·    Toi Whītiki Arts and Culture Strategic Action Plan

·    The Auckland Plan 2050.

16.     Regional Services and Strategy staff were engaged in the preparation of this report. The performance report will inform staff advice regarding the 2024-2027 funding which the Planning Environment and Planning Committee will consider this financial year.

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

Local impacts and local board views

17.     Most of the Trust’s activities take place within the Howick Local Board area. The Trust’s activities contribute to the outcomes sought by the Howick Local Board Plan 2020-2023, specifically that:

·    People in our communities feel safe, engaged and connected

·    Well-planned public spaces that support active, healthy and sustainable lifestyles

·    Heritage, local arts and cultural diversity are valued

·    A prosperous local economy supporting business growth and opportunity.

Tauākī whakaaweawe Māori

Māori impact statement

18.     The strategic aims of the trust include the development of relationships and practices that give expression to Te Tiriti o Waitangi.

19.     Through the exhibition and professional development programmes CAF seek to showcase contemporary Māori art and provide opportunities for Māori artists and rangatahi.

Ngā ritenga ā-pūtea

Financial implications

20.     There are no financial implications of receiving the 2022-2023 annual report.

21.     Decisions regarding Council funding of the Trust will be brought to the Planning, Environment and Parks Committee this financial year.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

22.     There are no specific risks associated with council receiving CAF’s performance report for 2022-2023.

Ngā koringa ā-muri

Next steps

23.     This report is primarily for information purposes.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Contemporary Arts Foundation Performance Report 2022-2023

 

     

Ngā kaihaina

Signatories

Author

James Stephens - Senior Advisor

Authoriser

Alastair Cameron - Manager - CCO Governance & External Partnerships

 

 


Council Controlled Organisation Direction and Oversight Committee

09 November 2023

 

Quarter one performance reports 2023/2024 for substantive council-controlled organisations

File No.: CP2023/12521

 

  

Te take mō te pūrongo

Purpose of the report

1.       To receive a summary of, and comments on, substantive Council-Controlled Organisation (CCO) first quarter reports, for the period ending 30 September 2023.

Whakarāpopototanga matua

Executive summary

2.       Under Auckland Council’s accountability framework, each substantive CCO must provide a quarterly report to the CCO Direction and Oversight Committee. The reports for the first quarter of 2023/2024 are contained in Attachments A to C and are measured against the Long-term plan and the 2023-2026 Statements of Intent (SOIs).

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

Council-controlled Organisation

Summary of Quarter One results

Eke Panuku

·     Direct revenue, including property managed on behalf of council, was slightly favorable to the budget due to extended tenancies resulting from delayed properties sale. Direct expenditure was $3 million favorable to the budget, driven by lower rates expenditure and savings from vacant positions yet to be filled. Capital programme delivery and progress towards the asset sales target are on track.

·     Eke Panuku has 12 performance measures of which nine are on track to meet their targets and three have not been measured.  

Tātaki Auckland Unlimited (TAU)

·     Net direct operating result was on budget, with a slight favourable variance of $0.2 million. 

·     Capital programmes have had a slower than anticipated start (actual spend was $5.1 million lower than budget), due to ongoing delays related to flood remediation.

·     TAU has 13 SOI performance measures and as at quarter one, eight were met or on track to be met and five are not reported this quarter.  One performance measure has already exceeded the full year target at quarter one.

Watercare

·     Watercare’s direct revenue was $14.4 million lower than budgeted, in part due to lower consumption in July and a delay in receiving planned flood related insurance recoveries. Direct expenditure was over budget by $10.7 million due to higher costs relating to capital works in Waikato (offset by higher revenue) and additional maintenance costs after the severe weather events. Capital spend was $277.8 million, $25.4 million behind plan. 

·     Watercare has 29 SOI measures.  In quarter one, targets for 19 performance measures were met, nine targets were not met or on track and one measure was not reported. 

·     The Ōrākei main sewer incident in September resulted in significant discharge into the Waitemata harbour. The bypass and temporary pump station were made operational in 20 days.

 

Ngā tūtohunga

Recommendation

That the Council Controlled Organisation Direction and Oversight Committee:

a)      whiwhi / receive the 2023/2024 first quarter reports of the substantive council-controlled organisations, provided as attachments A to C of the agenda report.

 

Horopaki

Context

4.       Each substantive CCO must provide a quarterly report to the CCO Direction and Oversight Committee. They are required to:

·    summarise the CCO’s performance against the approved budget and agreed targets in the Long-term Plan and SOI

·    provide a forecast of the CCO’s performance

·    identify the cause of major variances

·    highlight major achievements for the quarter

·    signal any potential or developing issues.

5.       Finance and CCO Governance staff have worked with the CCOs to update the template for quarterly reporting so that it provides a better picture of performance trends, risks and issues and more financial information at activity level. 

6.       The CCO reports for the first quarter of 2023/2024 are provided in Attachments A to C.

7.       Port of Auckland attended the 12 October 2023 meeting of this committee and presented their quarter one performance report.

Tātaritanga me ngā tohutohu

Analysis and advice

Eke Panuku

Financial performance

8.       Operating results for Eke Panuku, as well as the activities managed by Eke Panuku on behalf of council were favourable to budget for the first quarter.

9.       At the net direct expenditure level, Eke Panuku company was $1.1 million favourable to the budget, driven by timing differences between spend and budget phasing in staff cost and other operating costs such as consultancy and communications costs.

10.     For the managed activities on behalf of council, direct revenue was $0.6 million better than budget mainly due to extended tenancies resulting from delayed property sales. On the expenditure side, there was a favourable variance to budget of $1.7 million driven by lower than budgeted rates charges, which is likely to result in a saving if no further rates charges are received in the later part of the year.

11.     Capital spend was on track for first quarter, $19.1 million against a budget of $20.5 million.

Non-financial performance and other issues

12.     Eke Panuku has 12 performance measures of which five are 10-year Budget measures. Nine of the 12 measures are tracked quarterly, two are tracked annually (surveys) and one will not be measured this year.

13.     At the end of quarter one, nine performance measures are on track to be achieved, and three have not been measured.  

Eke Panuku strategic performance priorities

Target met or on track to be met

Target at risk or will not be met

Not reported this quarter

Total

Urban regeneration programmes 

5

1

6

Property management services

2

 

1

3

Sector leadership

2

 

1

3

Total

9

3

12

14.     Urban regeneration highlights for the quarter include:

·     The Waiwharariki Anzac Square in Takapuna and the Hayman Park destination playground in Manukau were opened in September.

·     The Avondale town square can now progress, following the funding for Te Hono Avondale community hub being secured.

·     Northcote Central is going to the market in the next step of the large-scale redevelopment of Northcote Town Centre which will include new dwellings, shops, eateries, offices, laneways, and a new town square.

15.     Property portfolio management highlights for the quarter include:

·     Marinas - the Silo and Viaduct marinas have become the first marinas in New Zealand to be accredited with Superyacht Ready status.

Issues / risks

16.     Eke Panuku have noted that it is taking a longer time to attract development partners with capacity to meet outcomes set by Eke Panuku, especially for town centre developments. This is caused by economic factors such as higher inflation and tighter lending requirements. This risk could affect the delivery of asset sale targets, regeneration outcomes and new dwelling units. A further risk would be if development partners were to fail.

17.     Other risks include:

·     pressure on existing resources and programmes from the new programme of work on acquiring storm damaged properties (led by the Auckland Recovery Office)

·     Disruption of development, property and marina activities and assets from extreme weather events, structural failure, age or wear and tear.  

Tātaki Auckland Unlimited

Financial performance

18.     The net operating result was on budget for the first quarter, with a slight favourable variance of $0.2 million.

19.     Direct revenue was favourable to budget by $2.7 million, primarily due to strong ticketed visitation at the Zoo and NZ Maritime Museum and better than expected event revenues.

20.     Direct expenditure was $2.5 million higher due to the timing of staff change implementation costs, and additional casual staff costs needed for revenue generating events.

21.     Capital spend was $12.2 million against the budget of $17.3 million. Capital programmes have had a slower than anticipated start due to ongoing delays related to flood remediation. TAU expects that the delivery will catch up in the coming months.

Non-financial performance and other issues

22.      TAU has 13 SOI measures, of which seven are 10-year Budget measures. Nine of the 13 measures are tracked quarterly, one is a six-monthly measure and three are annual measures. At the end of quarter one, eight performance measures were met or on track to be met and five are not reported this quarter.

23.     The measure that has already been achieved is the ‘number of Māori businesses that have been through a TAU programme or benefitted from a TAU intervention’.  A quarter one result of 72 has been achieved against a full year target of 50.

Tātaki strategic performance priorities

Target met or on track to be met

Target at risk or will not be met

Not reported this quarter

Total

Experiences and events

4

 

1

5

Facilities

2

 

3

5

Investment and innovation

2

 

1

3

Total

8

0

5

13

 

24.     Highlights for quarter one include:

·        The FIFA Women’s World Cup 2023 was a fantastic global showcase for Auckland and New Zealand.  TAU delivered a broad Host City programme on behalf of Auckland Council, including the Fan Festival at The Cloud and other activation activities.

·        TAU secured a naming rights partnership with BNZ for the Diwali and Lantern Festivals for the next three years.

·        Ticketed attendance across TAU venues and events was 587,000 for the quarter and more than 100,000 children participated in educational experiences through TAU venues and facilities.

·        The Destination Auckland Partnership Programme went live on 1 July and reached 115 financial partners by mid-September.

·        The State of the City report, benchmarking Tamaki Makaurau Auckland’s performance against nine peer cities globally was launched by TAU on 10 August. 

·        Two exciting new exhibitions opened in quarter one; Ever Present at the Auckland Art Gallery and Always Song in the Water at the New Zealand Maritime Museum.

·        August was the first full month after the new ticketing and pricing strategy was implemented at Auckland Zoo on 24 July. To date, ticket revenue expectations have been exceeded, with little adverse impact experienced.

·        After its first three months, Discover Auckland – a new one stop shop for everything Auckland developed by TAU – is already the third ranked site for the fly/drive market to find out about Auckland (after TripAdvisor and Eventfinda).

Issues / risks

25.     Major events are still facing a significant shortfall in investment funding for events. Beyond August 2024 there are very few major events confirmed and no funding is confirmed to facilitate bidding for future events.  Investment in future business events beyond 2024 is also severely limited by uncertainty about future funding.

 

 

 

26.     There is currently a shortage of stadium content in the New Zealand market as a result of a wide range of factors, including the economy, high freight costs and the level of event attraction resource being applied in Australia. 

Watercare

Financial performance

27.     Direct revenue was $233.8 million for the first quarter, $14.4 million lower than budget primarily due to lower consumption volume at the start of this quarter and a delay in receiving flood related insurance recoveries. Infrastructure Growth Charges (IGCs) and developer revenue continued to improve and was largely on budget.

28.     Direct expenditure was $10.7 million higher than the budget, mainly due to unbudgeted flood remediation costs ($4.1 million), higher costs for capital work in Waikato ($4.4 million), and reform costs ($1.7 million), both latter two items were offset by corresponding revenue.

29.     Capital expenditure was $277.8 million, $ 25.4 million behind annual plan. Most of this underspend relates to flood recovery projects which are to be funded through insurance recovery proceeds.

Non-financial performance and other issues

30.     Watercare has a total of 29 SOI measures.  

31.     Targets were not met for nine measures in the quarter:

·        Response time for attendance at sewerage overflows – 89 minutes median compared with a target of less than 60 minutes.  This target has consistently not been met in recent years, although the target for resolving overflows in under five hours has been met.

·        Capital programme delivery – This is a new measure. Two of three projects were completed as scheduled in the quarter and were delivered within the approved budget, so the 80 per cent target was not achieved.

·        Debt to revenue – At 3.38, Watercare’s debt to revenue ratio was above the 3.35 target at the end of the quarter, with the Ōrākei Main Sewer incident and the delay in insurance recoveries from flood events cited as contributing factors.

·        Controllable costs – This is a new measure. Costs were $106 million against the target of $96 million due to factors including reform work and the Ōrākei Main Sewer incident. 

·        Customer net satisfaction – was 44 in the quarter, below the minimum target of 45.  The result reflects the impact from the severe weather events and staff vacancies. 

·        Procurement sourced through Māori owned business – The result was 1.79 per cent against the target of three per cent.  Watercare expected the establishment of a Māori supplier network within its renewals programme to help support achievement of this target.  

·        Specialist input to resource consents – This is a new measure. The result was 89 per cent within timeframes, slightly below the 90 per cent target.  Improved internal reporting has now been set up to monitor performance. 

·        Total recordable injury frequency rate (TRIFR) per million hours worked – at 25.62 was above the maximum target of 10 and is trending upward.  Watercare has commissioned an independent review of the organisation’s approach to Health and Safety to address this performance. 

Watercare strategic performance priorities

Target met or on track to be met

Target at risk or will not be met

Not reported this quarter

Total

Water and wastewater services

2

1

 

3

Arrow Up with solid fill

Water and wastewater infrastructure  

 

1

1

2

Delivering efficiently 

1

2

 

3

Arrow Up with solid fill

Arrow Up with solid fill

Strengthening relationships

2

3

 

5

Arrow Up with solid fill

  –

Arrow Up with solid fill

Arrow Up with solid fill

Core strategic outcomes 

1

Arrow Up with solid fill

1

 

2

         Arrow Up with solid fill

DIA performance measures 

13

1

 

14

Total

19

9

1

29

Trend from last period reported: Arrow Up with solid fillimprovement Arrow Up with solid filldecline No change or new measure

 

32.     The Central Interceptor Project continues to progress well with the tunnel boring machine reaching the half-way mark in early September.

33.     Watercare achieved 100 per cent compliance with the new Taumata Arowai drinking water standards quality assurance rules.

34.     Highlights and key progress for quarter one include:

·        Watercare started the procurement for its 10-year $3.5 billion assets, upgrades and renewals programme.

·        Work is underway to recommission the Muriwai water treatment plant.  

·        The Helensville Wastewater Treatment Plant upgrade and Papakura Water Treatment Plan were completed.

Issues / risks

35.     The Ōrākei Main sewer sinkhole and subsequent blockage on 27 September caused significant sewage discharge into the Waitematā harbour. Ngāti Whātua Ōrākei placed a rāhui across the Waitematā to protect people and the mauri of the harbour, alongside public health advice for people not to enter the Waitematā as it was not safe to do so. The construction of a 400 metre bypass and large temporary pump station to divert flows and reduce overflows were achieved at pace and was operational from 17 October. Planning to repair the main sewer and environmental monitoring of the harbour continues. An independent review of the incident is being commissioned by Watercare and its findings will be provided to the council and made publicly available.

36.     The incoming government intends to repeal the water reform legislation. Details on the alternative plans for Auckland have not yet been confirmed. Watercare’s report notes that it is currently legally required to continue work on reform transition. Council will need to understand the financial and other impacts on the group of alternative arrangements.


 

 

 

37.     El Niño conditions could bring warmer and drier weather so vigilant monitoring of the water supply situation and water consumption will be required during summer. Watercare’s Drought Management Plan, which was endorsed by the Planning, Environment and Parks Committee in April 2023, uses trigger levels for any imposition of water restrictions based on the total dam storage levels at different times of the year. 

Tauākī whakaaweawe āhuarangi

Climate impact statement

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

39.     The Eke Panuku environmental guidelines for public realm projects are being implemented with mapping of urban ngahere coverage across our neighbourhoods, collaborative work with Healthy Waters on catchment planning, and preparation for several deconstruction projects.

40.     TAU achieved Toitū ‘carbonreduce’ certification for the third year running and Auckland Zoo a Toitū ‘carbonzero’ certification for the seventh consecutive year.  An energy efficiency project is underway at the Aotea Centre, partly funded through EECA. A solar installation project has commenced at Go Media Stadium. TAU also released Mitigating climate change in New Zealand: impacts on Auckland’s economy report, which summarises macro-economic modelling looking at Auckland’s cost of transition, green employment potential and the turning point – when the benefits of climate action outweigh the upfront costs.

41.     The Watercare Climate Change Summary 2023 was published in the quarter, which outlines the ways that Watercare is refining its measurement and reporting of emissions and its commitment to climate actions to reduce embodied carbon from infrastructure by 10 per cent by 2025 and reduce operational emissions by 50 per cent by 2030.  

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

42.     Each CCO 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

43.     The governance of substantive CCOs is a responsibility delegated to the CCO Direction and Oversight Committee. We have not sought the views of local boards. CCOs provide updates on their work programmes to local boards.

Tauākī whakaaweawe Māori

Māori impact statement

44.     Each CCO reports on its contribution towards achieving Māori Outcomes in the quarterly report.

45.     Eke Panuku have continued to engage with mana whenua partners across the business, including in Panmure and Te Ara Tukutuku. A set of engagement guidelines with artists has been developed in partnership with mana whenua.


 

 

46.     TAU hosted another edition of M9 at the Aotea Centre in July. Held quarterly, M9 is a Ted-talk type event featuring nine influential Māori speakers who bring their unique perspectives to each theme. For the second nation-wide celebration of Matariki in July and Te Wiki o te Reo Māori in September, TAU provided a range of public and staff activities at the New Zealand Maritime Museum, Auckland Live, Auckland Art Gallery and Auckland Zoo. Following two years of Te Mahere Aronga implementation, a highlights and successes publication Ākina has been produced. Two karakia and bespoke waiata have been created for TAU.

47.     Watercare is setting up a Māori supplier network in its procurement process for its assets, upgrades and renewals programme.  Watercare has developed out Te Reo and Tikanga learning modules for kaimahi, and events and learning sessions were held to celebrate Matariki and Te Wiki o te Reo Māori.

Ngā ritenga ā-pūtea

Financial implications

48.     Each of the CCO’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

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

Ngā koringa ā-muri

Next steps

50.     The next CCO and POAL quarterly reports (quarter two, October to December 2023) will be provided to the CCO Direction and Oversight Committee in March 2024. The committee has deep dive performance discussions with each CCO and POAL.

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Eke Panuku 2023-2024 Quarter One report

 

b

Tātaki Auckland Unlimited 2023-2024 Quarter One report

 

c

Watercare 2023-2024 Quarter One report

 

     

Ngā kaihaina

Signatories

Authors

Sarah Johnstone-Smith - Principal Advisor

Rachel Wilson - Principal Advisor

Trudi Fava - Principal Advisor

Tracy Xu - Principal Advisor CCO Financial Planning

Authoriser

Alastair Cameron - Manager - CCO Governance & External Partnerships

 

 


Council Controlled Organisation Direction and Oversight Committee

09 November 2023

 

Summary of Council Controlled Organisation Direction and Oversight Committee information memoranda and briefings (including the forward work programme) – 9 November 2023

File No.: CP2023/00603

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To tuhi ā-taipitopito / note the progress on the Council Controlled Organisation Direction and Oversight Committee forward work programme appended as Attachment A. 

2.       To whiwhi / receive a summary and provide a public record of memoranda or briefing papers that have been distributed to the Council Controlled Organisation Direction and Oversight Committee.

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 Direction and Oversight Committee members via memoranda/briefings or other means, where no decisions are required.

4.       The following information items have been distributed:

Date

Subject

31/10/2023

Kaipātiki Local Board resolution KT/2023/184 - Update on Joint Council-controlled Organisation Engagement Plans, work programme items (Jul-Sep 2023) and expected milestones (Oct-Dec 2023)

5.       No workshops/briefings have occurred.

6.       Note that, unlike an agenda report, staff will not be present to answer questions about the items referred to in this summary.  Committee members should direct any questions to the relevant staff.

 

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Direction and Oversight Committee:

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

b)      whiwhi / receive the Summary of Council Controlled Organisation Direction and Oversight Committee information memoranda and briefings – 9 November 2023.


 

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Forward Work Programme

 

b

Kaipātiki Local Board resolution KT/2023/184 - Update on Joint Council-controlled Organisation Engagement Plans, work programme items (Jul-Sep 2023) and expected milestones (Oct-Dec 2023)

 

     

Ngā kaihaina

Signatories

Author

Duncan Glasgow - Kaitohutohu Mana Whakahaere / Governance Advisor

Authoriser

Alastair Cameron - Manager - CCO Governance & External Partnerships

 



[1] Tāmaki Regeneration Company is the brand or trading name of Tāmaki Redevelopment Company Limited ("TRC”).