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Revenue, Expenditure and Value Committee
15 April 2025
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Section 17A
Review of Marinas
File No.: CP2025/05256
Te take mō te
pūrongo
Purpose of the report
1. To
note the findings of the marina services review, including the marina
investment and control objectives. No significant changes are proposed to the ownership and
management of council-owned marinas.
Whakarāpopototanga matua
Executive summary
2. Council has completed a review of its arrangements for delivering
marina services and infrastructure, as required under section 17A of the Local
Government Act 2002 and in accordance with terms of reference adopted by this
committee in November 2024.
3. The review covered six marinas where the adjoining land is owned by
council:[1]
· Council-operated marinas located in central Auckland: Westhaven, Viaduct and Silo.
· Marinas operated by a third-party under a ground lease: Hobsonville, Gulf Harbour and Half Moon Bay.
(Collectively referred to as the “council-owned
marinas”)
4. The council-owned marinas are regional assets, so governance and decision-making responsibilities rest with the
Governing Body. Eke Panuku Development Auckland currently manages council’s
interests in these marinas. As part of council-controlled organisation (CCO)
reforms, this marina management function will transition into the council.
Council’s role and objectives
relating to marinas
5. The
marina environment involvement is complex, with each site subject to multiple
layers of considerations including legislation, planning rules, leases, policies, agreements and ongoing
initiatives. The review has documented these key
factors to support future decision-making and governance.
6. Council is not required to provide marina services or infrastructure
under legislation, and such services could feasibly be delivered by the private
sector. However, there are barriers to entry for any new marina development.
Council’s current involvement reflects historical decisions and broader
public interest objectives noted below.
7. Although there is no adopted marina position, the review recorded a
set of “marina investment and control objectives” based on these
considerations and informed by current direction and practice.
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Marina Investment & Control Objectives
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Maintain the
provision of well-run marina services* to the public on reasonable
commercial terms.
*Berthage/mooring
and related boating services such as fueling, cleaning and maintenance.
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Maintain public access to significant sections of waterfront, including access for public
ferry services and boat ramps.
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Provide for broader public amenity* at the waterfront.
*Includes
commercial and recreational amenities for the general and boating public,
such as shops, restaurants, car parks, club premises, events, and water-based
services.
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Honour relevant Te
Tiriti obligations, including treaty settlements.
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Receive a reasonable
commercial return from operation of marina services and other
commercial activities.
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8. Council also seeks to manage the environmental effects of marina and
boating operations. This is principally delivered through council’s
regulatory role under the Resource Management Act 1991.
9. The objectives record the current position that council seeks to
support public access and amenity, while optimising commercial return to
sustain marina operations and deliver value to Aucklanders. This suggests that
marinas should be managed in a commercial and business-like manner in line with
the broader market, while factoring broader community values and expectations.
The objectives are generic and provide a baseline framework. They do not
preclude council from adopting specific, place-based objectives.
10. The objectives provide a framework for council staff involved with
marina operation, and can guide future decisions regarding management
structure, investment, and unsolicited proposals. Council will also need to
ensure that important decisions are made transparently and in accordance with
its statutory obligations.
Options for providing marina services
11. The review considered a range of options for the future of marina
services, including different models of ownership (such as retaining full
ownership, partial divestment, or full sale), leasing arrangements (long-term
ground leases to third parties), and operational management (continuing council
operation, transferring to another council-controlled entity, or outsourcing to
a third party).
12. No major concerns were identified with the current arrangements. The
marinas appear to be well-managed and are currently providing a reasonable
return to council given constraints (a net surplus of around $12 million to $13
million per year). However, existing arrangements may limit the level of
investment in marina infrastructure and associated public amenities. While
investment may yield commercial returns, council must assess any capital
commitments against other priorities and has a relatively low appetite for
commercial risk. Additionally, ground lease tenants may be less incentivised to
invest in assets they do not own. Despite these constraints, investment has
occurred in the past by both council and the ground lease tenants (noting the
tenants have significant tenure).
13. Other options were assessed in light of existing legal and
contractual complexities and council’s broader objectives. These
constraints limit viable alternatives at this time. Some technically feasible
options may require political direction to progress further.
14. Overall there are significant restrictions to changing the status
quo options, and the existing options provide value for money which results in
no compelling case for change. The review therefore recommends
maintaining the current ownership and operational arrangements for all six
marinas, subject to any future political direction.
15. The
review report is included at Attachment A.
Ngā tūtohunga
Recommendation/s
That the Revenue, Expenditure
and Value Committee:
a) tuhi
ā-taipitopito / note the findings of the section 17A review of marina
services, including the recommendation to maintain the status quo for the six
marinas subject to further political direction;
b) tuhi
ā-taipitopito / note the marina investment and control objectives identified within the report
Horopaki
Context
16. Under section 17A of the Local Government Act 2002, council is
required to review the cost-effectiveness of current service delivery
arrangements at least every six years, unless a specific exemption applies.
This committee approved the terms of reference for this review in November
2024.
Marinas in scope
17. The review covered six marinas where the adjoining land is owned by
council:[2]
· Council-operated marinas located in central Auckland: Westhaven, Viaduct and Silo.
· Marinas operated by a third-party under a ground lease: Hobsonville, Gulf Harbour and Half Moon Bay.
(Collectively referred to as the “council-owned
marinas”)
18. The
council-owned marinas have over 4,000 berths collectively (around 70% of the
market). These range in scale and function, from superyacht berths at Silo
Marina to regional ferry access at Half Moon Bay. The review does not cover privately owned marinas (there are currently 15 marinas in the Auckland region, including 2 dedicated dry stack
facilities).
19. The marinas were initially developed and vested in council to
provide safe berths and moorings, but over time have evolved into broader
waterfront assets incorporating commercial, recreational, and transport
functions.
20. Marina operations involve both land-based infrastructure (which
council can own and can lease) and foreshore and seabed areas (which cannot be
owned and are accessed through occupancy consents under the Marine and Coastal
Area (Takutai Moana) Act 2011 and the Resource Management Act 1991).
21. Each marina is subject to overlapping layers of control —
including legislative provisions, lease arrangements, unitary plan rules,
consent conditions, operational agreements, and council policies. These layers
limit flexibility and introduce complexity in managing and reviewing marina
arrangements.
Council’s role and objectives
relating to marinas
22. The provision of marina infrastructure and services is not a
requirement under legislation, nor is it necessarily a response to market
failure. Marinas can be, and often are, developed and operated by the private
sector. However, high barriers to entry — including cost, regulatory
complexity, and coastal occupation rights — make new marina development
difficult. Council’s ongoing involvement is based on historic decisions
and broader public interest considerations. Marinas do support and align with
some strategic outcomes in the council’s Auckland Plan 2050, including
relating to the “transport and access” outcome.
23. There is currently no adopted marina position that sets out
council’s desired outcomes or strategy. However, the review has
identified a baseline framework of objectives that reflects current practice,
statutory requirements, and strategic direction.
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Marina
Investment & Control Objectives
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Maintain the
provision of well-run marina services* to the public on reasonable
commercial terms.
*Berthage/mooring
and related boating services such as fueling, cleaning and maintenance.
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Maintain public access to significant sections of waterfront, including access for public
ferry services and boat ramps.
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Provide for broader public amenity* at the waterfront.
*Includes
commercial and recreational amenities for the general and boating public,
such as shops, restaurants, car parks, club premises, events, and water-based
services.
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Honour relevant Te
Tiriti obligations, including treaty settlements.
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Receive a reasonable
commercial return from operation of marina services and other
commercial activities.
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24. Council also seeks to manage the environmental effects of marina and
boating operations. This responsibility primarily sits with its regulatory role
under the Resource Management Act 1991, including through consent conditions,
the Auckland Unitary Plan, and other compliance mechanisms.
25. Council is committed to transparent decision-making and will
continue to ensure public and stakeholder input is considered where required,
particularly for significant decisions. The objectives are generic and do not
preclude the development of specific place-based goals.
26. These objectives provide a framework for council staff involved in
marina operations, and can guide future decisions regarding management
structure, investment, and responses to unsolicited proposals.
Tātaritanga me ngā
tohutohu
Analysis and advice
27. The
review report is included at Attachment A.
Current
arrangements and considerations
28. Financial
arrangements vary by site due to legacy agreements, long-term leases, and
historical investments. In some cases, lease prepayments or perpetual rights
affect the ability to adjust returns or renegotiate terms.
29. The
net surplus (revenues less direct expenses) from operations is around $12
million to $13 million per year, depending on maintenance programmes and other
costs.
30. Marina
management is affected by a wide range of factors:
· Treaty
obligations including mana whenua engagement
· Legislation
including specific empowering acts
· Consents
/ permits including seabed / foreshore occupancy rights
· Unitary
plan including marina zones and specific precincts
· Council
policies including the coastal management framework
· Lease
and agreements including specific deeds and lease terms
· Management
policies including specific management plans
· Operations
including use of boat ramps, ferry services, and carparks
Options
considered
31. Options
considered in the review related to:
· Ownership: Retain full council ownership, partial
divestment, or sale
· Leasing: Continue or revise long-term ground leases with
third parties
· Management: Council-operated, CCO-operated (e.g. transfer
to Auckland Future Fund), or outsourced to private operators
Assessment
of options
32. The
assessment included considering:
· Specific circumstances for each marina
are assessed and this results in narrowing the list of options that are viable.
· Assess the remaining options against the
investment and control
objectives to test whether there is now a case of change, noting that
circumstances may have changed since the marinas were initially developed.
33. The
complexity of existing arrangements limited the feasibility of major changes in
most cases. Many options — particularly those involving sale or change of
use — would require political direction and, in some cases, legislative
or consenting change.
34. The
current arrangements generally reflect appropriate alignment with
council’s objectives. Marinas are well-managed and generating a
reasonable return. However, constraints on capital reinvestment, lease
flexibility, and infrastructure upgrades remain a challenge.
35. Council
has not undertaken an assessment of current demand and is not aware of evidence
of unmet demand for marina berths.
Westhaven Marina
36. Originally
developed in the 1950s, Westhaven is the largest of the six marinas offering
over 1,800 berths for vessels up to 30m in length.
37. The
adjoining land is owned by council, which also has the current consent to
occupy. Most berths were placed into two separate trusts, reverting to the
council in 2026 and 2029. An agreement with the Crown for the purchase of the
land by council has strict covenants around perpetual public ownership and
public access.
38. With
the significant covenants and wider public good currently being achieved,
retention of ownership and operation is recommended
Viaduct Marina (separate from the Viaduct Harbour Marina managed by
VHHL)
39. The
initial development of the Viaduct Marina was started in the 1980s, and it now
offers around 60 berths for vessels up to 55m in length.
40. The
adjoining land is owned by council, which also has the current consent to
occupy.
41. The
Viaduct Marina is next to the Viaduct Harbour Marina. In
the 1990s Ports of Auckland sold land interests in
Viaduct Harbour to Viaduct Harbour Holdings Ltd (VHHL), including management
rights for the water space under the existing coastal permit. This marina was
excluded from the review as it is privately owned and operated. A Harbour Waterspace Management Deed (between the council and VHHL)
which gives VHHL certain rights relating to the Viaduct Marina.
42. Given
the conditions attached within the management deed and high-profile nature of
this area for events, retention of ownership and operation is recommended.
Silo Marina
43. Officially
opening in 2010, Silo is the smallest of the six marinas with 10 berths for
superyachts up to 116m in length.
44. Council
has a consent to occupy the marina area, as does the Port of Auckland through
legacy rights.
45. With
its limited size and no real land-based component, options are assessed as not
feasible or limited. It would be viable to consider sale of the marina rights
to the adjoining leaseholders who currently use the marina. However, this
opportunity is considered limited, so retention of ownership and operation is
recommended.
Hobsonville Marina
46. Westpark
Marina, as it was called at the time, was established in 1979, and offers
around 600 berths for vessels up to 32m in length.
47. The
land is owned by the council, which also has the current consent to occupy. Of
the 12 lots, 10 are ground leased to West Harbour Marine Limited, with two
being perpetually renewable and the other eight terminating in 2084.
48. With
the long term and perpetual nature of the leases, the continuing ownership by
the council and leasing to West Harbour Marine Ltd is recommended, with the
only other viable option really being to explore a possible sale to the
existing leasee.
Gulf Harbour Marina
49. Gulf
Harbour Marina’s construction was completed in 1988 and offers around
1,000 berths for vessels up to 55m in length.
50. The
land is owned by the council, which also has the current consent to occupy. The
land is ground leased to Gulf Harbour Investments Ltd and Gulf Harbour
Management Ltd, terminating in 2088. Issues with development rights led to the
leases, to ensure public access was maintained to parts of the area.
51. With
the long-term nature of the leases, the continuing ownership by council and
leasing to Gulf Harbour Investments Ltd and Gulf Harbour Management Ltd is
recommended.
Half Moon Bay Marina
52. Half
Moon Bay Marina was officially opened in 1972 and offers around 600 berths for
vessels up to 30m in length.
53. The
land is owned by the council, which also has the current consent to occupy. The
land is ground leased to Auckland Maritime Foundation on a perpetual basis.
54. With
the perpetual nature of the lease, the continuing ownership by council and
leasing to Auckland Maritime Foundation is recommended.
CCO governance, including Auckland Future Fund
55. Given
the commercial nature of marina management, the review considered whether
marinas should continue to be managed by a council-controlled organisation
(CCO). With recent decisions to transfer functions from Eke Panuku, the primary
candidate CCO for marina governance is the Auckland Future Fund (AFF).
56. The
AFF was established in 2024 to protect the real, long-term value of
intergenerational assets and to provide enhanced returns to council to help
fund infrastructure and services. Initially capitalised through council’s
shareholding in Auckland International Airport Limited, the fund is expected to
grow through further capital contributions over time.
57. One
option is to transfer council’s marina interests to the AFF. This could
be done on the basis that the AFF retains ownership on behalf of council and
manages the assets in line with council’s objectives. Alternatively, the
AFF could be empowered to sell the assets to maximise value, as was the case
with its mandate for the airport shares.
58. Assigning
the AFF a broader role in managing commercial activities such as marinas would
alter its current focus and may necessitate changes to its governance,
including its board composition. However, marina assets could benefit from the
commercial expertise and focus of the AFF board.
59. The
AFF is currently supported by council staff and will also engage an independent
investment manager, rather than establishing its own chief executive and
management structure. This approach could be retained if its role were
expanded.
60. As
the AFF is still in its establishment phase, now may not be the right time to
broaden its responsibilities. Further decisions have just been made to bring
these functions into council. Therefore this option was not progressed in
detail and could be explored further in the future.
Tauākī whakaaweawe
āhuarangi
Climate impact statement
61. There
are not expected to be climate impacts from decisions relating to the review.
62. Marinas
must comply with relevant environmental regulations in managing the
environmental impacts of the overall operation of the marina.
63. The
international Blue Flag programme recognises marinas that take an active role
in keeping the marine environment clean, and Westhaven Marina has been awarded
multiple times for its efforts.
64. There
are several industry awards for marinas including specific recognition for
environmental practices, and recently Westhaven Marina was the winner of the
New Zealand Marina Operators Association (NZMOA) Best Environmental Performer
award.
Ngā whakaaweawe me
ngā tirohanga a te rōpū Kaunihera
Council group impacts and views
65. The
six marinas forming part of this review are currently owned by the council and
managed by Eke Panuku. At the Governing Body meeting of 12 December 2024, it
was resolved that marina management would be transferred from Eke Panuku to
Council.
66. Many
of the six marinas have ferry services in close proximity and so if any options
might have an implication for access to or hinder the provision of ferry
services, Auckland Transport would be engaged to ensure transport services are
not adversely impacted.
67. As
it is not recommended that any change to ownership or operation are made, there
are no changes proposed that may impact on the council group.
Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
68. Marinas
are not deemed to be a local service and so decision making is the
responsibility of the Governing Body.
69. Should
any changes to ownership or operational control be proposed then input will
need to be sought from the respective local boards.
Tauākī whakaaweawe
Māori
Māori impact statement
70. How marinas are managed can support the delivery of council’s
strategic framework, Kia Ora Tāmaki Makaurau,
which prioritises ten key mana outcomes vital to Māori in Auckland. In
particular the outcomes of Kia ora te Ahurea (Māori Identity and Culture)
and Kia ora te Taiao (Kaitiakitanga) are closely aligned with marina operations.
71. On
an ongoing basis any changes to ownership, occupation rights or developments
will most likely involve engagement with iwi. In addition, there are some more
specific engagement requirements in certain cases such as the need for a
Kaitiaki Plan as part of the consent conditions for the
reclaimed land at Westhaven.
Ngā ritenga
ā-pūtea
Financial implications
72. There
are no direct financial implications arising for this review as there are no
changes being proposed that would require funding or result in changes to
levels of revenue or expenditure. Clarifying commercial objectives of
marinas may assist with making decisions that will optimise commercial return.
73. The
financial implications of other options not proposed such as selling or
entering into new lease arrangements have not been assessed.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
74. Risks
with the recommendations being proposed primarily relate to changing
circumstances in the provision of marina services, such as costs of operating,
levels of demand and environmental requirements. These are mitigated with the
status quo recommendations as these risks are being well managed under the
current service provision arrangements.
Ngā koringa ā-muri
Next steps
75. Council
will document the results of the review to inform future decisions, including
any future decisions relating to new political direction or unsolicited
proposals.
76. Council
will progress with bringing marina management services into council. Several
marina-related activities are also underway and will continue, such as
occupancy consenting reapplications and new berth licensing arrangements.
77. As
there are no changes proposed as a result of this review, there are no
additional steps.
Ngā tāpirihanga
Attachments
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No.
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Title
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Page
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a⇨
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Section 17A Review of Marinas
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Ngā kaihaina
Signatories
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Author
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Chantelle Subritzky - Head of Value For Money
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Authorisers
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Anna Bray - General Manager Group Strategy,
Transformation and Partnerships
Max Hardy - Director Group Strategy and Chief
Executive Office
Ross Tucker - Group Chief Financial Officer
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Revenue, Expenditure and Value Committee
15 April 2025
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Better Value
Projects update
File No.: CP2025/05686
Te take mō te
pūrongo
Purpose of the report
1. To
update the Revenue, Expenditure and Value Committee on:
· ensuring
that the full council group including council-controlled organisations and
local boards benefit from Better Value Projects and
· the
template and structure for the preparation of case studies and proposed
guidelines for the selection of future case studies.
Whakarāpopototanga matua
Executive summary
2. The
Better Value Projects programme responds to a call for change in how the
council group procures, delivers and effectively spends ratepayers’ money
on projects. It is structured around ten principles that that will make the
biggest difference to improving the value the council group obtains from its
projects.
3. Culture
change at all levels of the council organisation and group is key to the
programme’s success.
4. A
business lead and programme manager for the Better Value Projects programme
have been appointed and a cross-council team established with both a steering
group and operational workstreams. Short, medium and long-term initiatives have
been identified and the next update to the committee in May will provide an
overview of the programme plan.
5. This
report recommends steps are taken through the council’s shareholder
comments on the CCO draft Statements of Intent to ensure that the full council
group including council-controlled organisations (CCOs) benefit from Better
Value Projects.
6. It
also updates the committee on engagement with local boards and the template and
structure for the preparation of case studies and proposed guidelines for the
selection of future case studies.
Ngā tūtohunga
Recommendation/s
That the Revenue, Expenditure
and Value Committee:
a) tuhi tīpoka / note the update on the steps taken to
ensure that the full council group benefits from the Better Value Projects
programme and the ten principles
b) tono /
request that staff prepare content to provide further direction on the Better
Value Projects programme for the shareholder comments on CCOs draft Statements
of Intent which will be adopted by the relevant committees in May
c) ohia
/ endorse the guidelines for selecting case studies for presentation to the
Revenue, Expenditure and Value Committee
d) tuhi
tīpoka / note the update on the structure that will be used to develop
case studies and record lessons and changes that result from them.
Horopaki
Context
7. On
18 February 2025, staff presented the scope of activity underway as part of the
programme established by the Auckland Council Chief Executive to drive
improvements in procurement, delivery and effective spending on projects. This
is the Better Value Projects programme and is structured around ten key
principles.
8. On
18 March 2025, staff updated the committee on progress in implementing the
programme and the ten principles. Three initial case studies were presented to
the committee from across the council group. After considering how those case
studies proceeded, staff have prepared a proposed structure for the preparation
of future case studies and a template to ensure that they are succinct and
provide lessons that can have a wider impact across the group.
9. Since
the March meeting, the Better Value Projects programme has moved out of its
establishment phase with a Business Lead (Mark Townshend) and Programme Manager
(Hannah Thipthorpe) appointed. As the programme is concerned with implementing
change across the lifecycle of projects from inception, design, procurement
through to delivery and operation and impacts many areas of the council group,
this dedicated resource provides a single point of ownership. A cross-council
steering group made up of senior leaders has had an inaugural meeting and
operational workstreams have commenced work.
10. The project
team will report to the May committee meeting with an overview of the
programme, noting that the council group has a significant and complicated
spend on projects. Programme success is dependent on council’s ability to
make meaningful change in our culture and behaviours to embed the ten
principles as business as usual.
Tātaritanga me ngā
tohutohu
Analysis and advice
Ensuring the full council group benefits from Better Value
Projects
11. The initial focus
of the Better Value Projects programme has been as a council management
response to the direction provided by the mayor and councillors to achieve
better value for our capital and project spend which has been reported to the
Revenue, Expenditure and Value Committee.
12. CCOs and
local boards have significant capital and project spend and it is important
that the Better Value Projects programme achieve benefits across the full
council group.
Council-controlled organisations (CCOs)
13. The
need to focus on value for money and efficiency has been highlighted to CCOs in
the mayoral proposal and letters of expectation.
14. CCO
boards have an important leadership role to achieve this goal, directing their
organisation and measuring progress.
15. CCOs
have been engaged in the development of the Better Value Projects programme and
other key reviews, for example:
16. Auckland
Transport presented the Meola Road upgrade case study to this committee in
March 2025.
· Eke
Panuku and Tātaki are currently preparing case studies that will be
presented to the May committee meeting (on Te Wero Wynyard Crossing bridge and
the Find Your Happy Auckland (Eerik from Finland) campaign).
· Eke Panuku have
participated in the value for money (s17A) reviews of property and marina
management.
17. Each CCO
produces a statement of intent annually outlining their activities and how they
will contribute to council’s strategic direction. The draft Auckland
Transport, Tātaki Auckland Unlimited and Watercare statements of Intent
2025-2028 refer to their commitment to delivering value for money.
18. Further
direction on the Better Value Projects programme will be provided in
council’s shareholder comments on CCOs’ draft Statements of Intent.
These shareholder comments will be agreed by the relevant committees in May
2025. Shareholder comments will include expectations that all CCOs will:
· reference
the Better Value Projects programme and how they will apply the ten principles
in their Statement of Intent
· provide
case studies of projects and how the ten principles have been applied to the
Revenue, Expenditure and Value Committee (when requested)
· report to council on
their progress with reviews, learnings and improvements of their capital spend.
For example, Watercare will be reporting annually to council and the Commerce
Commission on how they will be improving their infrastructure delivery under
the Watercare charter.
19. We will be
working together with CCO staff on the Better Value Projects operational
workstreams over the next months, including exploring opportunities to share
key learnings across the group. Council will also continue to work with CCOs on
improvements to performance reporting, including on the benefits from capital
expenditure.
Local boards
20. Staff will be
applying the ten principles to all council projects, including those where the
allocation of decision-making sits with local boards under Auckland
Council’s shared governance model.
21. The
application of the ten principles to ensure that value for project spend is
achieved is one tool available to assist local boards with increased budget and
decision-making responsibility that results from the commencement of the fairer
funding model in July 2025. It is important that local boards are aware of the
Better Value Projects programme and understand the rigour that will be applied
to advice on projects that will come to them for decision making.
22. The mayor has
already sent a letter to all councillors, local board elected members and CCO
board members advising them of the Better Value Projects programme. Engagement
with local boards and local board advisors has begun. An information memo to
local boards has been prepared which will be discussed at the April local board
chairs forum and the project team will present to the local boards
chair’s forum in May 2025.
23. The Better
Value Projects programme will make a concerted effort to ensure that there is
structure and guidance available so that the delivery principles are applied by
staff that support local board decision-making.
Structure for further case studies
24. Real life
case studies are an important part of the Better Value Projects programme.
25. Following the
initial case studies to the March committee meeting, staff have prepared a
refined case study template which will provide a shorter and more concise case
study and direct staff to identify the application of relevant delivery
principles and key lessons.
26. A closure
report is prepared as a matter of course at the conclusion of projects. These
will provide a pipeline of case studies to present to the committee and to
establish a lessons learned library so successes are carried forward and
repeated mistakes are avoided.
27. It is
important that case studies of projects that have attracted elected member
and/or public scrutiny continue. This enables transparency and ensures that the
Better Value Projects programme is responsive. Providing case studies where the
principles have been applied and enabled positive outcomes will reinforce the
application of the ten principles and ensure that best practice becomes
embedded and widespread.
28. Staff
recommend the following guidelines are considered when selecting case studies
for presentation to the Revenue, Expenditure and Value Committee. These
guidelines are not intended to be exhaustive or that all need apply to every
case study. Case studies will be selected:
· from
across the group, including a diverse range of project types and spend
· from
across the project lifecycle (initiate, design, planning, procurement, delivery
and review)
· where
they shine a light on the application of specific principles
· where
they contain clear lessons which can be applied more widely
· where
there is elected member and/or public interest
· where
projects are in-train and will allow lessons to be learned and improvements
made as the projects progress
· which
cover a range of smaller projects grouped into a combined programme of work,
where that is a more helpful way to present the relevant issues and
opportunities.
29. To enable the
Better Value Projects programme team to work closely with the business areas
preparing case studies and ensure that they are appropriately focussed, staff
intend to bring case studies to the committee on a bi-monthly cycle. Longer
committee meeting times have been arranged to enable sufficient time for case
studies to be examined along with the committee’s usual work program.
30. A register
has been created and will be maintained of lessons learned from case studies
and specific actions taken in response (e.g. the shift from Tier 1 to Tier 2
contractors following the Milford steps case study) to ensure the lessons
learned from case studies are not lost and are measurable and tangible.
Tauākī whakaaweawe
āhuarangi
Climate impact statement
31. Improvements
progressed as part of the Better Value Projects programme will need to ensure
that emission reductions and climate impacts are considered.
Ngā whakaaweawe me
ngā tirohanga a te rōpū Kaunihera
Council group impacts and views
32. All
council group entities (excluding the Auckland Future Fund) currently deliver
capital projects. While the initial focus of the Better Value Projects
programme has been on the council organisation, this report identifies further
mechanisms to ensure that projects deliver better value across the council
group.
33. In addition,
we will use group mechanisms such as a Group Procurement Strategy and policies
and projects where both Auckland Council and CCOs contribute to the overall
project deliverable.
Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
34. Local boards
commission and oversee a significant capex programme. Spending and delivery to
support local board programmes are included in the Better Value Projects
initiative as we need to ensure that all our expenditure is sensible and
justifiable.
35. Engagement
with local boards is a key part of the Better Value Projects programme and
advice to local boards that addresses the ten principles will enable local
boards to make well informed decisions and manage their budgets.
Tauākī whakaaweawe
Māori
Māori impact statement
36. Council
continues to work with mana whenua to ensure efficient and meaningful
engagement that leads to projects that have benefits for both mana whenua and
the wider community including value for money.
37. For the council to improve both value for money outcomes and
outcomes for Māori, high-quality engagement with mana whenua early in the
project scoping and problem definition phase will be critical.
Ngā ritenga
ā-pūtea
Financial implications
38. Improvement of our procurement and capital delivery processes is
expected to result in improved value for money for Auckland ratepayers.
Reducing the number and size of project cost overruns will reduce financial
risk and help improve the council’s financial resilience.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
39. Key risks and
mitigations for the Better Value Projects programme have been set out in the
February and March 2025 reports to this committee.
Ngā koringa ā-muri
Next steps
40. Next
steps for the programme include progressing quick win initiatives and reporting
a project plan to the May committee meeting outlining the key tasks and
initiatives to systematically embed improvements to the council‘s
processes for procuring and delivering projects. Further engagement with CCOs
and local boards will also be progressed.
41. Case
studies that will be presented to the May committee meeting are:
· Ōrewa seawall
· Te Wero Wynyard
Crossing bridge
· Find Your Happy
Auckland (Eerik from Finland) campaign
42. If
the recommended guidelines for selecting case studies are agreed, these
guidelines will be used to inform the selection of future case studies after
the May meeting. At this stage, suitable candidate projects could include the
Te Hono Avondale Library and Community Centre and the Warkworth bridge and
walkway at the northern end of Kowhai Park.
Ngā tāpirihanga
Attachments
There are no attachments for
this report.
Ngā kaihaina
Signatories
|
Authors
|
Mike Lichtwark - Executive Officer, Group Finance
Mark Townshend – Better
Value Projects business lead
Hannah Thipthorpe – Better
Value Projects programme manager
|
|
Authoriser
|
Ross Tucker - Group Chief Financial Officer
|
