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

Date:

Time:

Meeting Room:

Venue:

 

Tuesday, 8 October 2024

3.00pm

Room 1, Level 26
Te Wharau o Tāmaki - Auckland House
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

Cr Daniel Newman, JP

 

Houkura Member Ngarimu Blair

Cr Ken Turner

 

Cr Angela Dalton

Cr Wayne Walker

 

Cr Chris Darby

Cr John Watson

 

Houkura Member Hon Tau Henare

Cr Maurice Williamson

 

Cr Richard Hills

 

Ex-officio

Mayor Wayne Brown

 

 

Deputy Mayor Desley Simpson, JP

 

 

(Quorum 6 members)

 

 

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

 

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.

 

 

 

4          Ngā Petihana | Petitions

 

 

5          Ngā Kōrero a te Marea | Public Input

 

5.1       Public Input: Gray Power - Haumaru Housing - reduction in central government funding

Te take mō te pūrongo

Purpose of the report

1.       Trish Deans, President of Grey Power North Shore and Bill Raynor, Executive Member of the Grey Power Federation, will address the committee regarding the government’s announced cuts for the subsidy for senior housing and in support of the mayor’s approach to assist Selwyn Village and Haumaru to retain the subsidy.

2.       They wish to present on behalf of seniors and outline the known facts about the aging population and how this will affect Auckland.

 

 

Ngā tūtohunga

Recommendation/s

That the Council Controlled Organisation Direction and Oversight Committee:

a)      whiwhi / receive the public input address from Gray Power on the government’s announced cuts for the subsidy for senior housing and in support of the mayor’s approach to assist Selwyn Village and Haumaru to retain the subsidy; and whakamihi / thank Trish Deans and Bill Raynor for their attendance.

 

 

 

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

 

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.

Ngā tūtohunga

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.

 

Ngā tāpirihanga

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

 

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.

Ngā tūtohunga

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.

 

Ngā tāpirihanga

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

 

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:

Date

Subject

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.

 

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 – 8 October 2024.

 

Ngā tāpirihanga

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

 

 

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
Forward Work Programme 2024

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

 

 

Area of work and Lead Department

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

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Strategic direction

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:

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

Performance monitoring and reporting

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Completed

 

Area of work and Lead Department

Committee role

Whakatau / Decision

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

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 

 

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.

Link to decision

 

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

 

 

 

 



Council Controlled Organisation Direction and Oversight Committee

08 October 2024

 


Council Controlled Organisation Direction and Oversight Committee

08 October 2024

 


Council Controlled Organisation Direction and Oversight Committee

08 October 2024