I hereby give notice that an ordinary meeting of the CCO Direction and Oversight Committee will be held on:
Date: Time: Meeting Room: Venue:
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Tuesday, 8 October 2024 3.00pm Room 1, Level
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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
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MEMBERSHIP
Chairperson |
Cr Shane Henderson |
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Deputy Chairperson |
Cr Kerrin Leoni |
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Members |
Cr Josephine Bartley |
Cr Daniel Newman, JP |
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Houkura Member Ngarimu Blair |
Cr Ken Turner |
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Cr Angela Dalton |
Cr Wayne Walker |
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Cr Chris Darby |
Cr John Watson |
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Houkura Member Hon Tau Henare |
Cr Maurice Williamson |
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Cr Richard Hills |
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Ex-officio |
Mayor Wayne Brown |
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Deputy Mayor Desley Simpson, JP |
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(Quorum 6 members)
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Sonja Tomovska Kaitohutohu Mana Whakahaere Matua / Senior Governance Advisor
3 October 2024
Contact Telephone: +64 9 890 8022 Email: sonja.tomovska@aucklandcouncil.govt.nz Website: www.aucklandcouncil.govt.nz |
Council Controlled Organisation Direction and Oversight Committee 08 October 2024 |
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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
5.1 Public Input: Gray Power - Haumaru Housing - reduction in central government funding 5
6 Ngā Kōrero a te Poari ā-Rohe Pātata | Local Board Input 5
7 Ngā Pakihi Autaia | Extraordinary Business 5
8 Haumaru Housing - reduction in central government funding 7
9 Port of Auckland Limited Performance Update 11
10 Summary of Council Controlled Organisation Direction and Oversight Committee information memoranda and briefings (including the forward work programme) – 8 October 2024 13
11 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 Tuesday, 10 September 2024, including the confidential section, as a true and correct record.
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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 08 October 2024 |
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Haumaru Housing - reduction in central government funding
File No.: CP2024/14120
Te take mō te pūrongo
Purpose of the report
1. To whiwhi / receive an update from Haumaru Housing on the impact of the reduction of central government funding.
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. Central government have recently made changes to the Income-Related Rent Subsidy (IRRS) criteria. The IRRS funding Haumaru receive is now capped at the current level (950 or 64 per cent of tenants) from 1 July 2024.
4. As a result, Haumaru Housing have decided they are now unable to take on additional tenants when legacy units become available. This is because without the IRRS subsidy, the unsubsidised rent new tenants would pay would not cover the costs of refurbishing and maintaining the units.
Recommendation/s
That the Council Controlled Organisation Direction and Oversight Committee:
a) whiwhi / receive the update from Haumaru Housing on the impact of the reduction of central government funding.
Horopaki
Context
5. Haumaru Housing provides affordable housing services for older people, with a 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 is 49 per cent shareholder and owns the land and buildings. Selwyn Foundation is the other 51 per cent shareholder and assists with the operational side of Haumaru. Tenants are sourced from emergency or social housing registers.
6. 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
7. Central government (the Ministry of Housing and Urban Development) have recently made changes to the Income-Related Rent Subsidy (IRRS) funding criteria that has an immediate effect on Haumaru Housing. The amount of IRRS funding Haumaru receive is now capped at the current level (950 or 64 per cent of tenants) from 1 July 2024, even if additional units become available for IRRS-eligible tenants.
8. Haumaru Housing have decided they are now unable to take on additional tenants when legacy units become available. This is because without the IRRS subsidy, the unsubsidised rent new tenants would pay would not cover the costs of refurbishing and maintaining the units. Over 80 units are likely to become vacant over the next year. Further, plans to increase the number of units in current villages are now at risk.
9. The central government funding change came without notice and after decision-making on council’s Long-term Plan 2024-2034. Central government has advised that the change in funding criteria is to prioritise moving people out of emergency accommodation.
10. In response to the funding cap, the Mayor, Haumaru Housing and the Selwyn Foundation have all written to the relevant Ministers, to ask the funding be reinstated.
11. Haumaru Housing are now working through the medium-long term implications and risks for their organisation.
Tauākī whakaaweawe āhuarangi
Climate impact statement
12. Haumaru Housing are working to understand the medium-long term impact of the reduction in anticipated IRRS funding. Haumaru Housing’s Environmental Sustainability Strategy will not be impacted by this change.
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 ongoing reduction in funding and tenant numbers will have a flow on impact on these outcomes.
Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
14. A memo on the reduction in central government funding was sent to all local board members (and councillors) on 11 September 2024. Local board members have been advised of the presentation today and can send through questions to the Chair for consideration.
Tauākī whakaaweawe Māori
Māori impact statement
15. There are no specific Māori impacts, currently 11 per cent of Haumaru Housing tenants identify as Māori (July 2024).
Ngā ritenga ā-pūtea
Financial implications
16. Council staff are working with Haumaru Housing staff to understand the medium-long term impact of the funding reductions over time. This includes financial risks to council as 49 per cent shareholder and owner of the land / buildings.
Ngā raru tūpono me ngā whakamaurutanga
Risks and mitigations
17. As noted above, council staff are working with Haumaru to understand the risks to Haumaru Housing and subsequent risks to council.
Ngā koringa ā-muri
Next steps
18. Council, Haumaru Housing and the Selwyn Foundation will continue to ask central government for the funding to be reinstated.
19. Council and Eke Panuku staff will work with Haumaru Housing to see how to address and mitigate the impact of empty units and consider future financial implications.
Attachments
There are no attachments for this report.
Ngā kaihaina
Signatories
Author |
Rachel Wilson - Principal Advisor |
Authorisers |
Anna Bray - General Manager Group Strategy, Transformation and Partnerships Alastair Cameron - Manager CCO/External Partnerships team |
Council Controlled Organisation Direction and Oversight Committee 08 October 2024 |
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Port of Auckland Limited Performance Update
File No.: CP2024/14033
Te take mō te pūrongo
Purpose of the report
1. To receive an update from Port of Auckland Limited (POAL) on their performance for the 2023/2024 financial year, year-to-date results, and future outlook.
Whakarāpopototanga matua
Executive summary
2. CCOs and POAL attendance at CCO Direction and Oversight Committee meetings is being rotated, with attendance by each entity on a rolling basis. This allows more time for in-depth and up to date performance discussion.
3. POAL representatives will be in attendance to present on their recent performance in the 2023/2024 financial year, year-to-date results, future outlook and answer any questions.
4. The POAL presentation will be attached to the meeting minutes.
Recommendation/s
That the Council Controlled Organisation Direction and Oversight Committee:
a) whiwhi / receive the update from Port of Auckland Limited on recent performance in the 2023/2024 financial year, year-to-date results, and future outlook.
Attachments
There are no attachments for this report.
Ngā kaihaina
Signatories
Author |
Chris Levet - Principal Advisor |
Authorisers |
Anna Bray - General Manager Group Strategy, Transformation and Partnerships Alastair Cameron - Manager CCO/External Partnerships team |
Council Controlled Organisation Direction and Oversight Committee 08 October 2024 |
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Summary of Council Controlled Organisation Direction and Oversight Committee information memoranda and briefings (including the forward work programme) – 8 October 2024
File No.: CP2024/13629
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. There were no workshops held.
5. The following memos or information were circulated to members of the Council Controlled Organisation Direction and Oversight Committee:
Subject |
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11.9.24 |
Information Memorandum: Haumaru Housing – reduction in central government funding |
2.10.24 |
Information Memorandum: Westhaven Seawall karakia |
2.10.24 |
Information Memorandum: Responses to queries on procurement targets and number of performance measures on Māori outcomes in statements of intent |
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.
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 – 8 October 2024.
Attachments
No. |
Title |
Page |
a⇩ |
Forward Work Programme |
15 |
b⇩ |
Information Memorandum: Haumaru Housing – reduction in central government funding |
19 |
c⇩ |
Information Memorandum: Westhaven Seawall karakia |
21 |
d⇩ |
Information Memorandum: Responses to queries on procurement targets and number of performance measures on Māori outcomes in statements of intent |
23 |
Ngā kaihaina
Signatories
Author |
Sonja Tomovska - Kaitohutohu Mana Whakahaere Matua / Senior Governance Advisor |
Authoriser |
Alastair Cameron - Manager CCO/External Partnerships team |
Council Controlled Organisation Direction and Oversight Committee 08 October 2024 |
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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 This committee deals with having a general overview and insight into the strategy, direction and priorities of all Council Controlled Organisations (CCO) and Ports of Auckland Limited, except Auckland Transport. The full terms of reference can be found here: Auckland Council Governing Body Terms of Reference |
Pūnga / Reason for work |
Committee role (whakatau / decision and/or tika / direction) |
Expected timeframes Highlight the month(s) this is expected to come to committee in 2024 |
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Strategic direction |
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CCO Letters of Expectation 2025-2028 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 2025-2028 letters of expectation. Progress to date: |
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Draft and final POAL SCI 2024-2027 and Letter of Expectation |
Port of Auckland Statement of Corporate Intent process |
SCI and LOE process complete. Progress to date: LOE approved July 2024 link to decision Letter with shareholder comments on POAL’s draft SCI was approved at 29 August 2024 Governing Body meeting. (it went to the Governing Body to meet statutory deadlines) link to decision Final step is POAL providing final SCI. Council does not need to approve it. |
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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. Mangere Mountain Education Trust - TBC Memo updating committee on the review on non-substantive CCOs to come. Progress to date: Te Puru Community Charitable Trust – approved changes to remove council-controlled organisation status link to decision Manukau Beautification Charitable Trust – approved changes to remove council-controlled organisation status link to decision |
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Performance monitoring and reporting |
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Quarterly, Half-Year and Annual Reports 2025/2025 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. |
Committee to receive quarterly reports, receive, and adopt half yearly and annual reports. Progress to date:
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CCO and POAL strategic performance oversight |
CCO Board members are requested to attend committee meetings to discuss strategic performance twice yearly. This is to ensure CCO board engagement and relationship building. |
Performance oversight focus: · Port of Auckland – October Progress to date: Eke Panuku update received March 2024 link to decision Tātaki update received April 2024 link to decision Watercare update received April 2024 link to decision POAL update received June 2024 link to decision Watercare update received July 2024 link to decision Tātaki update received August 2024 link to decision Eke Panuku update received September 2024 link to decision |
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Lead Councillor Updates CCO Governance and External Partnerships |
Mayor Wayne Brown has appointed four lead councillors to attend the board meetings of CCOs allocated to them and report back to this committee quarterly. |
Committee to receive verbal updates from the CCO Lead Councillors Progress to date: Verbal updates received March 2024 link to decision Verbal updates received June 2024 link to decision Verbal updates received September 2024 link to decision
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Haumaru Housing – end of year results 2023/2024 |
Haumaru Housing is a 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 the CCO Direction and Oversight Committee once a year to discuss performance and end of year results. Results will be presented in November 2024. Progress to date:
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Tamaki Regeneration Company (TRC) - end of year results 2023/2024 |
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 the CCO Direction and Oversight Committee once a year to discuss performance and end of year results. Results will be presented in November 2024. Progress to date:
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Completed
Area of work and Lead Department |
Committee role |
Whakatau / Decision |
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Quarterly, Half-Year and Annual Reports 2023/2024 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. |
Committee to receive quarterly reports, receive, and adopt half yearly and annual reports.
Quarter one reports received in November 2023 link to decision Quarter two reports received in March 2024 link to decision Quarter three reports received in May 2024 link to decision Quarter four reports received in September 2024 link to decision
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The State of the City reporting 2024 Tātaki Auckland Unlimited |
The committee wishes to be kept informed on work progressing the areas of focus from the State of the City report: Benchmarking Tāmaki Makaurau Auckland’s international performance (2023). |
Year 2 of the State of the City report is due to be released August 2024. TAU will be asked to present the findings from this report to the September CCO DOC meeting. Report received at September 2023 committee meeting. Link to decision Verbal update scheduled for April 2024 meeting but did not proceed as the TAU deep-dive session took the full meeting allocation. Report received at September 2024 committee meeting. link to decision
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Model for internal local project oversight groups for Eke Panuku urban regeneration programmes |
Reporting on the model for internal local project oversight groups for projects in priority locations (as per letter of expectation) |
This topic was covered in the Eke Panuku strategic performance oversight presentation on 12 March 2024. Link to decision |
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Input into the Tāmaki Regeneration Company letter of expectations 2024 |
Council can provide input into the annual letter of expectations sent by the crown to Tāmaki Regeneration Company. This provides direction when developing their statement of intent and statement of expectations. |
Shareholder comments approved content of draft 2025-2028 letters of expectation. |
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Draft and final CCO SOIs 2024-2027 |
Statements of intent set out the objectives and activities of each CCO for the next three years. They serve as a basis for accountability to the council, as the shareholder, and provide an opportunity for the council to influence each organisation’s direction. |
2024-2027 Statements of Intent approved on 13 August 2024 Link to decision |
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