Agenda of Transport, Resilience and Infrastructure Committee

Transport, Resilience and Infrastructure Committee

08 May 2025

Approval of shareholder comments on Auckland Transport draft Statement of Intent 2025-2028

File No.: CP2025/06414

Te take mō te pūrongo

Purpose of the report

1. To approve shareholder comments on the draft statement of intent 2025-2028 for Auckland Transport.

Whakarāpopototanga matua

Executive summary

2. The Statement of Intent (SOI) is an annual requirement of council-controlled organisations (CCOs) in the Local Government Act 2002. Auckland Transport’s Draft 2025-2028 SOI (Attachment A) was received by 1 April 2025, in accordance with prescribed timeframes.

3. On 3 April 2025, the Auckland Transport Board Chair, Richard Leggat, presented the draft Auckland Transport SOI 2025-2028 to the committee and the response to the direction in the February 2025 letter of expectation.

4. High-level themes and points of proposed shareholder feedback on draft SOIs were workshopped with the Transport, Resilience and Infrastructure and CCO Direction and Oversight committees on 16 April 2025. These were drawn from feedback from council staff and Houkura Independent Māori Statutory Board (Houkura) secretariat.

5. Shareholder comments are focused on alignment with statutory requirements, annual letters of expectation, group strategy and policy, the Long-term Plan 2024-2034 (LTP) and decision-making on the 2025/2026 Annual Plan. The intention is not (generally speaking) to provide detailed direction on work programmes.

6. Key themes of proposed shareholder comments for all substantive CCOs and feedback specific to Auckland Transport are set out in Table One below.

General shareholder comments proposed for all substantive CCOs
Financial and non-financial performance · Final SOIs should reflect 2025/2026 Annual Plan decisions and any adjustments to reflect CCO reform changes. · Final SOIs should ensure that all performance measure targets are fully populated and that measures and targets reflect those in the LTP. Capital programme and Better Value Projects · Final SOIs should include a statement on how the ten delivery principles of the Better Value Projects programme (which aims to achieve better value for our capital and project spend) will be applied. CCOs are expected to provide case studies of projects when requested and report to the council on their progress with reviews, learnings and improvements of their capital spend. Group shared services · Reinforce that SOIs should include unequivocal commitment to Group Shared Services and agreed processes. Māori outcomes · Request that SOIs include a statement on how the needs and aspirations of Māori have been reflected in the CCO’s planned activities and deliverables. · Expectation that CCOs will refresh Achieving Māori Outcomes Plans as applicable, to account for functional changes from CCO reform, the new Issues of Significance from Houkura and the refreshed Kia Ora Tāmaki Makaurau framework.
Key feedback for Auckland Transport
· Expect more detail and milestones in the work programme to be included in the final SOI. · Include a focus on preparing for transport reform, including delivery of any early reform actions. · Emphasis requested on a commitment to provide timely information and early engagement on key issues and projects to local and regional elected members in the lead up to reform changes. · Request specific deliverables for how Auckland Transport intends to improve how it listens to and responds to Aucklanders. · Seek that the final SOI includes more detail on deliverables for City Rail Link (CRL) infrastructure and enablement work. · Seek more ambitious deliverables and targets, including for asset condition, customer perceptions, public transport boardings, bus priority, dynamic lanes, special vehicle lanes, temporary traffic management and Māori procurement. · Expect that an operational emissions measure that includes Scope 1 and 2 emissions is included in the final SOI.

Table 1: Summary of proposed shareholder comments

7. Agreed shareholder comments will be provided to Auckland Transport in writing following agreement by the committee. Staff will also work with Auckland Transport to clarify any additional matters of detail. Once received, the Auckland Transport board must consider shareholder comments and provide the council with the final SOI by 31 July 2025.

Ngā tūtohunga

Recommendations

That the Transport, Resilience and Infrastructure Committee:

a) whakaae / approve the proposed shareholder comments on the Auckland Transport draft statement of intent 2025-2028 contained in this report, with any deletions or additions based on feedback at the meeting.

b) whakaae / agree that the Mayor will prepare a letter to be sent to Auckland Transport containing the shareholder comments.

c) tuhi tīpoka / note that staff will record any feedback at the meeting that relates to performance or operational issues, or issues of detail or wording, and ensure those are raised with Auckland Transport.

Horopaki

Context

8. The purpose of an SOI is:

i) to provide an opportunity for shareholders to influence the direction of the CCO

ii) for CCOs to outline intentions and activities for the forthcoming year

iii) to provide a basis for the accountability of CCO directors to the shareholders.

9. The requirements and timeframes for SOIs are set out in Schedule 8 of the Local Government Act 2002 (LGA). SOIs are one element of the council’s overall strategic, planning, reporting and accountability documentation. Other documents include the statement of expectations, CCO accountability policy, LTP and annual report.

10. The proposed content of the letter of expectation for Auckland Transport was confirmed by the committee on 13 February 2025 (TICCC/2025/9). The final letter was issued by the Mayor on 25 February 2025.

11. The committee in February 2025 also agreed to approve a one-month extension of statutory deadlines for the Auckland Transport statement of intent for 2025-2028, (TICCC/2025/9), as provided for in the LGA Schedule 8, section 4.

12. Following its receipt by the council on 1 April 2025, the Auckland Transport Board Chair, Richard Leggat, presented the draft Auckland Transport SOI 2025-2028 and outlined how Auckland Transport has responded to the direction in the letter of expectation to the committee on 3 April 2025.

13. Staff from the CCO Governance and other relevant divisions reviewed the draft SOIs, along with the Houkura secretariat. The review has focused on considering statutory requirements, the letters of expectation, group strategy and policy and the LTP. The high-level themes and points of proposed shareholder feedback on draft SOIs were also workshopped with the Transport, Resilience and Infrastructure and CCO Direction and Oversight Committees on 16 April 2025.

14. Final shareholder comments will be sent to the chair of Auckland Transport once approved. It must consider the shareholder comments at a public board meeting, before submitting a final SOI to the council by 31 July 2025.

15. Any matters relating to operational issues will be communicated separately to Auckland Transport along with matters of specific detail. Performance issues can be considered at Auckland Transport’s quarterly reporting and regular discussions with the Transport, Resilience and Infrastructure Committee.

Tātaritanga me ngā tohutohu

Analysis and advice

16. The draft SOIs include the information required under Schedule 8 of the LGA.

17. The Mayor’s 2025/26 letters of expectation had directives common to all CCOs and those specific to individual CCOs. The common expectations are summarised below in Table 2 which also shows how the draft Auckland Transport SOI aligns to these expectations. In general, the CCOs, including Auckland Transport, have responded well to the common expectations.

Common expectations	Auckland Transport
Focusing CCOs on delivery	P
Attribution and branding	Not specifically
Accelerate implementation of group shared services	Partially
Delivering Auckland Council’s commitment in Year 2 of the Long-term Plan and alignment to final Annual Plan 2025/2026	P
Planning, delivery and paying for growth	P
Procurement and effective spending	P
Upholding the Group’s Te Tiriti o Waitangi-derived obligations	P (lacks specifics)
Quality, timely advice to Local Boards	P
Climate change – guided by Te Tāruke-ā-Tāwhiri: Auckland's Climate Plan	P
Compliance with Statement of Expectations of substantive CCOs	P
Asset Management Planning in preparation for the LTP 2027-2037	P
Work constructively with Investment Area Office	Not specifically

Table 2: Common expectations in CCO letters of expectations

18. Financial information was often excluded from the draft SOIs. CCOs will be including budget information in the final SOIs reflecting the LTP and decisions on the 2025/2026 Annual Plan.

19. In addition to reporting progress on their Achieving Māori Outcomes (AMO) Plans in quarterly performance reports, CCOs will be asked to ensure that Māori outcomes are included in their performance discussions with governing body committees. Achieving Māori Outcomes Plans may also need to be updated to account for functional changes from the CCO reform.

Proposed feedback to all CCOs on common expectations

20. Staff recommend that CCOs in the final SOIs:

i) should reflect 2025/2026 Annual Plan decisions and any adjustments to reflect CCO reform changes. Financial forecasts in the SOI should align with those submitted to Council Finance for the Annual Plan. We expect consistent figures for FY26 and the projections for FY27 and FY28.

ii) ensure that all performance measure targets are fully populated and that measures and targets reflect those in the LTP.

iii) include a statement on how the ten delivery principles of the Better Value Projects programme (which aims to achieve better value for our capital and project spend) will be applied. CCOs are expected to provide case studies of projects when requested to the Revenue, Expenditure and Value Committee and report to council on their progress with reviews, learnings and improvements of their capital spend.

iv) in addition, through the regular quarterly reporting process, CCOs should report progress on milestones for the key capital programmes/projects set out in their SOI.

v) unequivocally commit to Group Shared Services and agreed processes (in particular Auckland Transport and Watercare).

vi) include a statement on how the needs and aspirations of Māori have been reflected in the CCO’s planned activities and deliverables based on Kia Ora Tāmaki Makaurau, Houkura Issues of Significance or the CCO’s own engagement with Māori.

vii) in addition, the expectation is that CCOs will refresh their AMO Plans as applicable, to account for functional changes from CCO reform, the new Issues of Significance from Houkura and the refreshed Kia Ora Tāmaki Makaurau framework.

Proposed feedback to Auckland Transport on common expectations

21. Staff recommend that in the final SOI Auckland Transport acknowledges that it will provide greater attribution to the council as the policy-maker and funder.

Auckland Transport-specific comments

22. The following points summarise the specific expectations of Auckland Transport in their letter of expectation:

i) Work with the council on government transport reform for Auckland and report on all engagement with the government on reform

ii) Advise on non-legislative reform changes

iii) Continue previous letter of expectation direction and priorities:

· Improve how they interact with and listen to Aucklanders

· Get the most out of existing network

· Improve temporary traffic management

· Take direction and oversight from the council

· Support development of the Integrated Transport Plan

· Reduce delays incurred by utilities and developers

· Use low-cost ways to complete the cycling network

· Reduce Auckland Transport's cost to council

· Use cheaper and flexible alternatives for road safety furniture

iv) Seek elected member input on matters of high public interest

v) Improve communication to customers

vi) Implement City Rail Link and Eastern Busway

vii) Provide more detail on the methodology for measures and targets

viii) Coordinate planning and paying for growth with the council

ix) Commit to the Water Strategy and stormwater plans

x) Publish subcommittee agendas and where possible papers

23. Shareholder feedback below is structured to follow the sections in Auckland Transport’s draft SOI.

Part 1 - Strategic alignment and key policies (section 1.3)

24. The recent publication of Ka Tupu, Ka Wana, Auckland Transport’s Achieving Māori Outcomes plan 2024-2027 is welcomed. It would be useful if the SOI referenced which parts of Kia ora Tāmaki Makaurau the plan is aligned to and on which it delivers.

25. The Transport Emissions Reduction Pathway should be referenced under ‘Te Tāruke-ā-Tāwhiri: Auckland's Climate Plan’ and under ‘Environment and cultural heritage’ in Appendix 2.

26. Resilience is not adequately addressed under the challenge ‘Resilience, renewals and maintenance’ in the draft SOI.

27. The improvements in road safety under ‘Reducing harm’ should be based on evidence and cost-effective outcomes in addition to improvements within the direction of the GPS on Land Transport 2024.

Proposed feedback to Auckland Transport

28. Staff recommend Auckland Transport in the final SOI:

i) make reference to the Transport Emissions Reduction Pathway.

ii) show alignment and delivery between Ka Tupu, Ka Wana and Auckland Council’s Kia ora Tāmaki Makaurau Performance Measurement framework.

iii) expand on how Auckland Transport is addressing the challenge of resilience and reducing harm.

Transport reform and Effective governance and advocacy for transport outcomes (Section 2.5)

29. In Section 1.2 ‘Transport sector reform – preparing for tomorrow’ Auckland Transport acknowledges the work to implement CCO reform decisions and future legislative changes.

30. However, Focus area 2.5 ‘Effective governance and advocacy for transport outcomes’ could create confusion over responsibilities in transport reform. This should be retitled and refocused on preparing for transport reform. Auckland Transport’s role is to support the council to achieve the best outcome for Auckland and not engage separately with government on the reform. We would like to see the delivery of any early reform actions as canvassed in section 1.2 also reflected here.

31. Work to ‘ensure our strategic documents align with Auckland Council direction, embedding a new process to govern the development of any new documents' should be paused and findings to date provided to the Transport Reform programme. Any further work in this area should be agreed as part of the Transport Reform programme.

32. The final SOI should include commitment to the implementation of the Regional Land Transport Plan (RLTP) 2027-2037 development approach in partnership with Auckland Council noting the Governing Body will consider this for approval mid-2025.

33. The final SOI should be clear that Auckland Transport’s role is to provide support when requested by Auckland Council to the development of the Integrated Transport Plan.

34. During this period leading to transport reform, the council expects Auckland Transport’s strong commitment to provide timely information and engagement on key issues and projects at the very earliest stage to local and regional elected members. This should include early engagement prior to growth-related decisions.

Proposed feedback to Auckland Transport

35. Staff recommend Auckland Transport in the final SOI:

i) refocuses Focus Area 2.5 on preparing for transport reform, including delivery of any early reform actions.

ii) includes clearer wording that Auckland Council is leading on the reform and working with government. Engagement with government should be noted in quarterly reports.

iii) sets out commitment to the open and timely provision of information to support legislative and non-legislative transport reform and actively working in partnership with council staff to achieve this.

iv) provides clarity on Auckland Transport and Auckland Council’s role in the development of the RLTP 2027 and Integrated Transport Plan.

v) provides focus on timely information and early engagement on key issues and projects to local and regional elected members in the lead up to reform changes.

vi) as work is to pause on aligning strategic documents and developing new processes, remove this from the SOI.

Part 2 – Statement of performance expectations

36. Along with key performance indicators, project milestones for deliverables are a key mechanism to assess Auckland Transport’s performance and progress. In the final SOI project or programme milestones should be provided for all deliverables. Milestones and timings should be discussed with council staff to ensure these align with council direction.

Making every interaction count (Section 2.1)

37. This is a priority for council and the SOI should have specific deliverables for how Auckland Transport intends to improve how it listens to and responds to Aucklanders.

38. Clarity is sought on actions Auckland Transport is taking to focus on customer communications to support travel choices and away from promotion of Auckland Transport’s brand.

39. Council welcomes the commitment to enact quality advice standards. Council requests that Auckland Transport work to embed the standards and framework and that the council undertakes surveying elected members to track local board satisfaction rather than Auckland Transport undertaking its own surveys. This will ensure consistency across the council group and robust data and should be a more efficient approach.

Improving network productivity (Section 2.2)

40. We request a lift in deliverables and more ambitious delivery targets for dynamic lanes, special vehicle lanes and smart intersections. The definition and reporting on the bus priority target should distinguish between the types of lanes and additional hours of operation and more new lanes.

41. We would expect the role of active modes in improving network productivity to be reflected when repurposing parking and kerbside space.

42. We seek clearer commitments, actions and measurable deliverables to reduce costs and impacts of Temporary Traffic Management and improve practices and set out a pathway to full implementation of the NZ Guide to Temporary Traffic Management so that progress can be reported.

Taking public transport from good to great (Section 2.3)

43. More detail on CRL enablement and network integration activities is required, including: dwell times improvements, how Auckland Transport is positioning to take the lead role and benefit owner following the completion of the CRL build, and what changes are proposed to the public transport network and wayfinding to ensure the full benefits of CRL are realised.

44. We request that a deliverable is included on projects to enhance the first and final leg of the public transport journey experience, including for CRL.

Value for money (Section 2.4)

45. Council expects to see continued focus to reduce Auckland Transport’s cost to the council, and activity to grow non-rates revenue and deliver efficiency targets should be included as deliverables.

46. The intended number of suppliers in the Diverse Supplier Partnership Programme should be included in the final SOI.

47. Council expects Auckland Transport’s commitment to Group Shared Services to deliver value for Aucklanders as noted in paragraph 20 (v).

Core business and other activities (Section 2.6)

48. More detail on CRL infrastructure is required in the final SOI, including reflecting in the capital programme the recent decision on acceleration of the programme to remove level crossings at Takanini and Glen Innes.

49. A deliverable that addresses the implementation of cycling network projects through innovative, value for money approaches (i.e. not just progressing existing projects) is sought.

50. A specific deliverable for kilometres of cycle lanes added to the network and a separate deliverable for the kilometres of new footpaths are to be included in the final SOI.

51. We would expect working collaboratively with the council group on growth to be included in the final SOI.

Proposed feedback to Auckland Transport

52. We recommend changes are made in the final SOI that reflect the feedback provided in paragraphs 36-51.

Performance measures and targets

53. The proposed supplement on measures methodology and target assumptions to be submitted with the final SOI is noted. We expect Auckland Transport to work with council staff on its development so there is common understanding of the rationale.

54. Auckland Transport have removed the operational greenhouse gas emissions reduction measure from the draft SOI due to Audit New Zealand’s concerns around the accuracy of Scope 3 emissions reporting (both in the baseline and in the actual results) which are reliant on supplier information that is not always available. Given the importance of the transport sector to Auckland’s emissions, the council has previously asked Auckland Transport to track regional transport emissions. Council expects all CCOs to include an operational emissions measure that includes Scope 1 and 2 emissions in their SOI. Discussions are underway between council staff, Audit NZ and Auckland Transport on the practicalities of resolving this for the final SOI.

55. The expectation is that targets are not lowered unless there are exceptional circumstances, impacts identified and clear reasons for changing targets that were agreed through the LTP. We would like Auckland Transport to provide more ambitious targets for the following measures:

i) Asset condition – Council does not consider that changing the target for the proportion of critical assets in poor or very poor condition to 20 per cent is justified as that represents an unacceptable deterioration in critical assets. Council welcomes Auckland Transport working with council staff on the measure. Council requests that the target is maintained at a minimum of 17 per cent over 2025/26 to 2027/28 and that there is commitment in the SOI to report results by asset subclass.

ii) Customer perceptions – Council does not expect to see a reduction in the target trajectory from the SOI 2024-27. In addition, the council requests that no new measure is developed at this stage, and that the council will work with Auckland Transport to develop a suitable measure following reform.

iii) Public transport boardings (and farebox recovery) – Council does not expect to see a reduction in the target trajectory from the SOI 2024-27, particularly in the context of CRL opening in 2026.

iv) Public transport utilisation – Council questions why there is a reduction in the target trajectory from the SOI 2024-27 and seeks further clarification and justification.

v) Bus priority delivery – Council expects that the target would be increasing over 2025-2028 with a stronger focus in this area. Delivery should mean more lanes available over a longer time period. We also note that the Eastern Busway is not included and question its exclusion. See also paragraph 40.

vi) Cycle counts – Council questions why there is a reduction in the target trajectory from the SOI 2024-27 and seeks retention of these targets .

vii) Rail reliability – The target is queried and clarity is sought on the measure methodology as it needs to reflect both KiwiRail and Auckland Transport targets.

viii) Māori procurement – Auckland Transport has provided information on the success of Māori procurement in the capital delivery and maintenance programmes and challenges in building momentum in other budget areas. Houkura strongly advocates that the target trajectory percentage of procurement spend with Māori-owned businesses is retained as in the SOI 2024-27 (4 per cent in FY26, 5 per cent in FY27, and therefore 5 per cent in FY28), rather than the three per cent target for the period in the draft SOI. Watercare’s similar target for Māori procurement is five per cent. There is also no outline in the draft SOI of the impacts for Māori from the proposed change in targets.

56. The new measure on timeliness of programme delivery is welcomed and we request the methodology is finalised in consultation with council staff.

57. The final SOI should include confirmation that Department of Internal Affairs LTP measures will continue to be recorded (road maintenance standards, resurfaced roads, footpaths, road assets etc.) and provided annually and at six-month intervals to the Transport, Resilience and Infrastructure Committee.

Proposed feedback to Auckland Transport

58. Staff recommend Auckland Transport in the final SOI:

i) publish a supplement on measures definitions, methodology and assumptions, involving council staff in its development.

ii) include an operational emissions measure that includes Scope 1 and 2 emissions.

iii) include more ambitious targets for the measures set out in paragraph 55.

iv) work with council staff to finalise the measure on timeliness of programme delivery.

v) ensures Department of Internal Affairs and LTP measures are reported to the council as part of the quarterly reporting.

Tauākī whakaaweawe āhuarangi

Climate impact statement

59. CCOs are responsible for demonstrating how their draft SOI aligns with Te Tāruke-ā Tāwhiri: Auckland's Climate Plan. This has been reviewed by staff as part of reviewing the draft SOIs. Comments relating to climate impacts and measures are included in the shareholder comments recommended above.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

60. Staff have sought and incorporated feedback from various departments across the council. When the Mayoral letter with shareholder comments is provided, staff will work with Auckland Transport on how best to incorporate the shareholder feedback.

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

Local impacts and local board views

61. The Governing Body is responsible for providing shareholder comments on draft SOIs, and feedback from local boards has not been sought. Local board Chairs and Deputy Chairs were invited to a drop-in session on the letters of expectations in January 2025 and local boards were also offered the opportunity for one-on-one drop-in sessions. In these sessions members highlighted the need for delivery-focused options, advice and reporting from CCOs and the importance of early input by elected members to matters of high public interest.

62. CCOs are expected to provide timely, delivery-focused, quality, and concise advice to local boards. Proposed feedback highlights the importance of engagement on key issues and projects at the very earliest stage to local board members in the lead up to transport reform.

Tauākī whakaaweawe Māori

Māori impact statement

63. The activities of CCOs have significant potential to improve Māori wellbeing and to influence the achievement of the Auckland Plan and Kia Ora Tāmaki Makaurau.

64. The draft SOIs were separately provided to Houkura - Independent Māori Statutory Board secretariat and the council’s Nga Mātārae.

65. Houkura secretariat provided the following feedback for all CCOs. Council staff comments are also included:

i) Each SOI should refer to Te Tiriti o Waitangi and outline the legislative requirements in the LGA. This feedback has been passed to CCOs and noting that these requirements are set out in CCO Accountability Policy and Statement of Expectations for substantive CCOs.

ii) SOI should refer to Houkura and He Whenua Makaurau - Schedule of Issues of Significance. This feedback has been passed to CCOs.

iii) To maximise benefits for Māori businesses it is recommended that specific Māori procurement targets are identified with a target of five per cent. Council group is still working towards a group-wide measure, with currently some differences in methodologies. See paragraph 55 (viii).

iv) At least three Māori outcomes measures are sought in SOIs. At least one Māori outcome measure is included in the draft SOIs of substantive CCOs, with numerous measures in Achieving Māori Outcome Plans.

v) CCOs should commit to reporting on Māori outcomes delivery to committees. Staff to work with CCOs to ensure regular updates are provided.

vi) CCOs should be mandated to align activities with Kia Ora Tāmaki Makaurau mana outcomes framework relevant to their functions under the new reform. This will be addressed in refreshed Achieving Māori Outcome Plans. See paragraph 20 (vii).

vii) SOIs should specify how the CCO will engage with mana whenua and mātāwaka referencing Te Tiriti and LGA. Noting this is aligned strongly with the direction in letters of expectations.

66. Comments relating to Māori outcomes are included in the shareholder comments for Auckland Transport recommended above.

Ngā ritenga ā-pūtea

Financial implications

67. As noted in the comments above, the final SOI financial sections need to be aligned with decisions on the 2025/2026 Annual Plan.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

68. There are no direct risks associated with the proposed shareholder comments.

69. There is a risk that Auckland Transport may not adequately reflect the shareholder comments. This can be mitigated by council staff working closely with Auckland Transport. Also, if the shareholder comments are not adequately reflected, the council can modify Auckland Transport’s SOI at any time.

70. Government policy, legislation and CCO reform have the potential for significant impacts on the activities of Auckland Transport. Staff will continue to provide advice on these matters and whether the final Auckland Transport Statement of Intent 2025-2028 will need to be amended.

Ngā koringa ā-muri

Next steps

71. The Mayor will send a letter to the Auckland Transport board chair based on this committee’s agreed shareholder feedback and any other matters directed to be included by the committee, so that Auckland Transport can revise their SOI accordingly and meet the deadline for final submission of 31 July 2025.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇨	Auckland Transport draft Statement of Intent 2025-2028

Ngā kaihaina

Signatories

Author

Trudi Fava - Principal Advisor

Authorisers

Alastair Cameron - Manager CCO/External Partnerships team

Anna Bray - General Manager Group Strategy, Transformation and Partnerships

Barry Potter - Director Resilience and Infrastructure

Transport, Resilience and Infrastructure Committee

08 May 2025

Auckland Transport Quarter 3 Performance report 2024/2025

File No.: CP2025/05847

Te take mō te pūrongo

Purpose of the report

1. To receive a summary of, and comments on, the Auckland Transport quarter three performance report for the period ending 31 March 2025.

Whakarāpopototanga matua

Executive summary

2. Auckland Transport’s third quarter report for the period ending 31 March 2025 is provided in Attachment A. The deliverables and measures report against Auckland Transport’s Statement of Intent 2024-2027 (SOI).

3. Auckland Transport met or exceeded 18 out of the 23 SOI measures. Auckland Transport achieved positive results for public transport reliability and punctuality, cycle movements and road resurfacing. Procurement spend with Māori-owned businesses has improved and is now meeting the three per cent target. However, the following targets were not met:

· While there have been improvements in reputation metrics, and the customer perceptions measure is up from 27 per cent in the previous quarter to 33 per cent, the annual average result remains below target.

· Following a lower rate of serious road harm in early 2024, there is a return to higher levels of deaths and serious injuries on Auckland roads. 589 people were killed or seriously injured in the 12 months to March 2025.

· Patronage on public transport remains below target, largely due to lower bus patronage than forecast. As a result, the farebox recovery ratio is also below target.

· Occupancy on rapid and frequent transit networks is also below target, and investigations are underway to understand the causes of low occupancy on south Auckland routes.

4. Thirty-six of the 40 SOI deliverables are on track or completed. Highlights for the quarter included the first train tests through the full length of the City Rail Link (CRL), completion of the Pukekohe rail station upgrade, and Papakura to Pukekohe rail electrification and steady progress on the Eastern Busway. A pilot project was launched to use Closed Circuit Television (CCTV) to detect unauthorised temporary traffic management.

5. Trends in expenditure and revenue remain unchanged from the last quarter. Auckland Transport’s year-to-date surplus from operations, excluding depreciation of $52 million, is $44 million, which is favourable to the budget.

6. Capital expenditure in the year to date is $879 million, tracking at 90 per cent of the planned spend. Milestone tracking is now included for the capital programme. Kilometres of cycleways completed exceeded the plan, with the number of safety improvement projects and electric multiple unit trains delivered behind schedule.

Ngā tūtohunga

Recommendation

That the Transport, Resilience and Infrastructure Committee:

a) whiwhi / receive Auckland Transport’s 2024/2025 quarter three report, provided as Attachment A of the agenda report.

Horopaki

Context

7. Auckland Transport is required to provide a quarterly report to the committee. It needs to:

· summarise performance against the approved budget and agreed targets in the 10-year Budget and SOI

· provide a forecast of performance

· identify the cause of major variances

· highlight major achievements for the quarter

· signal any potential or developing issues.

8. As outlined in their SOI, Auckland Transport reports on the mandatory measures set by the Department of Internal Affairs twice a year, in both the quarter two (six month) and year-end reports.

Tātaritanga me ngā tohutohu

Analysis and advice

Financial performance

9. Auckland Transport’s year-to-date surplus from operations, excluding depreciation, of $52 million is $44 million favourable to budget.

10. This favourable variance is driven primarily due to lower operating expenditure with reduced inflationary pressure and strong cost control across the organisation, which more than offset revenue shortfall from lower public transport, and parking and enforcement revenue.

11. Capital expenditure in the year to date is $879 million, tracking at 90 per cent of the planned spend.

12. Key areas where spend is behind budget included delays in milestone payments for new trains for CRL, pavement renewals, property acquisition for the Eastern Busway project, and customer and business systems. Offsetting this is flood response activity delivering ahead of budget with most works expected to be completed in the current year.

13. Milestone tracking is now included for the capital programme. Kilometres of cycleways completed exceeds plan. However, the number of safety improvement projects delivered behind schedule.

14. Capital revenue received from Auckland Council (45 per cent) and other Crown agencies (55 per cent) was in line with the revised budget. The higher proportion of other Crown agency funding is attributed to National Infrastructure Funding and Financing Limited (previously Crown Infrastructure Partners) funding for flood recovery work, which is being delivered ahead of plan.

Non-financial performance and other issues

15. Strong results were reported for the quarter for public transport reliability and punctuality, road resealing and rehabilitation, and timeliness for specialist input to resource consents. Year-to-date cycle movements were up 5.9 per cent on last year.

16. Five of the 23 SOI measures were not on track or not met:

a) Customer perceptions: While the result for ‘AT listens and responds to Aucklanders’ needs’ increased for the quarter to 33 per cent, the year-to-date average of 30 per cent is below the target minimum of 33 per cent.

b) Public transport boardings: Year-to-date boardings were 66.8 million, against a target of 70.8 million. This is largely due to lower than targeted bus patronage. Auckland Transport also highlight the impact of rail disruptions and longer-term impacts of flexible working arrangements.

c) Farebox Recovery Ratio: As a result of boardings being below target, the Farebox Recovery Ratio is also below target.

d) Public transport utilisation: Utilisation is at 44.7 per cent, below the 49 per cent target. Investigations are underway into lower utilisation on south Auckland routes.

e) Safety (Deaths and Serious Injuries (DSI)): 589 people were killed or seriously injured in the 12 months to March 2025. The target is not more than 576. There has been a decrease in fatalities but the number of serious injuries has remained static. A wide range of safety initiatives continue that include a successful focus by the NZ Police to increase breath testing which has been associated with a 26 per cent reduction in alcohol-related DSI.

Table 1. SOI performance targets summary

SOI performance targets	Exceeded	On track / Met	Not on track / Not met	Not rated	Total
Every interaction counts	2	1	1		4
Improving network productivity		4			4
PT Good to Great	1	1	2		4
Value for money			1		1
Core business and other activities	4	4	1	1	10
TOTAL	7	10	5	1	23

Progress against SOI deliverables and performance expectations

17. Thirty-seven out of 40 deliverables were on track. Progress of note in the quarter included:

· Pukekohe rail station was upgraded and Papakura to Pukekohe rail electrification was completed in February

· the first train tests through the length on the CRL tunnel were completed in February

· Eastern Busway progress included installation of the beams for the Rā Hihi flyover

· the focus on ‘March management’ minimised disruptions and provided additional bus capacity

· the pilot for bookable park and ride spaces was launched in Albany. Customers are now able to track their seven-day fare cap through their MyAT HOP app.

· customers can access a new online calendar that provides a long-term view of planned rail network works and closures

· the milestone of one million trips using contactless payments was reached in January

· twenty-four community response projects and 278 quick-win initiatives have been delivered in the year to date

· New Zealand’s largest bus contact was awarded, which will see 175 new electric buses on the network and more frequent and reliable services for communities in west and south Auckland

· Point Chevalier Road T3 and time changes to Whangaparaoa dynamic lanes were completed

· forty-three total smart detection solutions have been implemented, on track for 65 by year end

· new signage guidelines require clear information about the purpose and duration of roadworks. A pilot project was launched to use CCTV to detect unauthorised temporary traffic management.

· public consultation on the City Centre Comprehensive Parking Management Plan occurred from February to March.

18. Auckland Transport highlight the following deliverables as at risk:

· growth of non-rates revenue is unfavourable, based on lower public transport patronage and lower parking revenue than forecast, and lower enforcement revenues due to higher compliance on the network. Mitigation includes tight control of operating costs.

· emissions reduction against target is also noted as at risk due to the increase in bus services and greater use of rail replacement buses because of extended rail closures.

Table 2. AT Deliverables summary

AT Deliverables	Completed	On track	Not on track
Every interaction counts		5
Improving network productivity		12
PT Good to Great	3	5
Value for money		2	2
Effective governance & advocacy		3
Core business and other activities	1	6	1
TOTAL	4	33	3

Tauākī whakaaweawe āhuarangi

Climate impact statement

19. Auckland Transport is working with the council and other CCOs on the group’s climate reporting obligations and the development of the group’s Climate Transition Plan.

20. The quarter three emissions result is not yet available. Auckland Transport have signalled that increase in bus services and extended rail closures (replaced by buses), will have a negative impact on this year’s emissions results. They are at risk of not meeting their targeted reduction in emissions.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

21. Auckland Transport’s quarter three performance report contains information on how it is 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

22. Oversight, monitoring and direction of Auckland Transport is delegated to this committee. The views of local boards have not been sought.

23. Twenty local boards have now endorsed Kōkiri agreements for 2024/2025, setting out levels of engagement between Auckland Transport and local boards. Auckland Transport and the Papakura Local Board are working towards completing an agreement for 2025/2026.

Tauākī whakaaweawe Māori

Māori impact statement

24. In April 2025, Auckland Transport published E Marotiritiri Ana, a Māori Outcomes Report describing activities between 2017/2018 and 2023/2024. This comprehensive report reflects the journey with and for Māori and the contribution of Auckland Transport to Kia Ora Tāmaki Makaurau outcomes, sharing stories of engagement, Māori partnerships, achievements and projects.

25. As part of Auckland Transport’s commitment to increase the visibility of te reo Māori, and following the roll out to buses, ferries and stations, bilingual announcements on trains have increased from 25 per cent to 48 per cent.

26. Results are on track for Māori procurement and marae improvement SOI targets.

Ngā ritenga ā-pūtea

Financial implications

27. Auckland Transport’s financial performance is provided in paragraphs 9 to 14.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

28. Significant risks highlighted by Auckland Transport include:

· Transition of CRL operations into Auckland Transport continues to be a key risk. Independent Quality Assurance has been commissioned to review steps in place and those needed to ensure smooth day one operations. This is a risk that this committee should actively monitor until day one operations begin.

· Transport safety: Following a record-low rate of serious road harm in Auckland during the first half of 2024, there has been a return to higher levels of deaths and serious injuries on Auckland’s roads as measured through a 12-month rolling average.

29. There is a risk that Auckland Transport will not meet the reduction in DSI in the SOI at year end. Factors driving this result include changes in the ability to deliver safety infrastructure and the impact on the results from a lag in the availability of reporting through NZTA’s Crash Analysis System.

30. Auckland Transport is seeking to improve analysis and understanding of road trauma through the upcoming publication of local board risk maps, ongoing engagement with schools and communities on local road safety issues and interventions, and safety activities with the NZ Police.

Ngā koringa ā-muri

Next steps

31. The next quarterly report (quarter four, April to June 2025) will be provided to the Transport, Resilience and Infrastructure Committee in September 2025.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇨	Auckland Transport Quarter Three Performance Report 2024/2025

Ngā kaihaina

Signatories

Authors

Trudi Fava - Principal Advisor

Claire Gomas - Principal Advisor

Authorisers

Alastair Cameron - Manager CCO/External Partnerships team

Max Hardy - Director Group Strategy and Chief Executive Office

Barry Potter - Director Resilience and Infrastructure

Transport, Resilience and Infrastructure Committee

08 May 2025

Recovery Office Update

File No.: CP2025/07305

Te take mō te pūrongo

Purpose of the report

1. To provide an update on progress with the Tāmaki Makaurau recovery programme including the completion of property categorisations for the 2023 Auckland Anniversary and ex-tropical cyclone Gabrielle weather events and update the terms of referenced for the Storm Recovery Political Advisory Group.

Whakarāpopototanga matua

Executive summary

2. Risk assessment and categorisation of 3,550 impacted residential properties is now substantively complete. Categorisation numbers are currently within forecasts, with 1,197 Category 3 properties (forecast 1,215). There is potential for a small number of recategorisations through disputes and Category 2P properties that prove infeasible. The Crown has agreed to reallocate funding to maximise funds available within the agreed total for Category 3 buy-outs.

3. The Recovery Office’s focus is now on delivering Category 3 buy-outs, property-level (2P) and community-level (2C) risk mitigations, and making decisions about the future of purchased storm-affected land. Support for impacted communities, through navigator services and local recovery planning, remains a significant part of the Office’s activity.

4. The implementation of the Storm Affected Land Policy (PEPCC/2025/33) in the Recovery Office’s activities, amendments are proposed to the terms of reference for the Storm Recovery Political Advisory Group, to extend its role to that programme (set out in Attachment A).

5. Other programmes, including transport network repairs, the Road Reserves Grant Scheme, Making Space for Water and the Storm Response Fund continue to be delivered. Updates are provided in the body of the report and in the Recovery Dashboard (Attachment B).

6. Now that categorisation has been completed, it is possible to plan for programme closure and transition with more certainty. Plans to complete recovery activities are underway, ensuring that recovery activities are either closed out or seamlessly transitioned into business as usual. The Recovery Office will remain in place until December 2026. The office’s workload will progressively reduce as programmes are completed, with staffing and budget reducing accordingly.

7. As work progresses it is timely to review and update the scope of the Storm Recovery Political Advisory Group. Staff propose two key changes to the terms of reference for approval as per attachment A:

a) Extending the ability of the group to make recommendations to ‘the relevant committee’ rather than just the Governing Body.

b) Extending the scope of recovery efforts that the group can provide guidance to include implementation of the Storm Affected Land Use programme.

Ngā tūtohunga

Recommendations

That the Transport, Resilience and Infrastructure Committee:

a) tuhi tīpoka / note the update and progress with the Tāmaki Makaurau recovery programme.

b) whakaae / approve revisions to the terms of reference for the Storm Recovery Political Advisory Group at provided at Attachment A.

Horopaki

Context

Storm recovery is firmly focused on delivery

8. Auckland Council has developed a substantial programme of support for communities, whānau and individuals impacted by the severe weather events of Auckland Anniversary Weekend 2023 and Cyclone Gabrielle.

9. The Recovery Office, established in March 2023, is delivering navigation services and wellbeing support, working with mana whenua, repairing damaged infrastructure and council assets, and providing funding to support homeowners to remove themselves from situations of intolerable risk to life. The Auckland (Council/Crown) Funding Agreement and approval of Project Delivery Plans by Ministers has enabled the purchase of ‘Category 3’ properties, repairs to the transport network and ‘Category 2P’ properties, and investment in community-scale ‘Category 2C’ resilience projects (GB/2023/187).

10. With risk assessment and categorisation of 3,550 impacted residential properties now largely complete, the programme’s focus is moving to completing the Category 3 buy-outs, property-level (2P) and community-level (2C) risk mitigations, and making decisions about the future of purchased storm-affected land. Support for impacted communities, through navigator services and local recovery planning, remains a significant part of the Office’s activity.

Tātaritanga me ngā tohutohu

Analysis and advice

Final categorisation numbers are currently within the forecast range

11. As reported in March 2025, the Recovery Office was forecasting 1215 Category 3 properties, with provision for a small amount of movement between categories through disputes or infeasibility of Category 2P solutions.

12. With categorisation now largely complete (allowing for disputes and the recategorization of properties with infeasible Category 2P mitigations to Category 3), the number of Category 3 properties is 1197. The final categorisation numbers are as follows:

Category	Total	Council’s recovery action
Category 1	1,989	No further action
Category 2C	32	Community-level risk mitigation (blue-green network projects)
Category 2P	146	2P grants scheme to mitigate risks on site
Category 3	1,197	Buy-out offer and future landuse
Ineligible	184	No further action
Total	3,548	Two remaining properties to be categorised

Community recovery and infrastructure programmes continue

13. A progress dashboard is provided at Attachment B.

14. Navigator service: Navigators continue to support 513 impacted whanau and individuals with their recovery. The case load is gradually reducing, but cases continue to be complex.

15. Local recovery planning: Community-led recovery planning is underway in the priority communities of Māngere, Mount Roskill/Wesley and Henderson/Rānui and with mana whenua. A further 20 impacted communities are being supported to engage a facilitator to support local recovery planning in the next six to 12 months. The community themselves will lead the recovery planning process. Auckland Council’s role will be to support this planning, with a focus on building community capability, strengthening networks and communication, and enabling local leadership. More information is available on Our Auckland’s recovery news page (Community to drive recovery plans - OurAuckland).

16. Transport: 712 of 808 identified sites with minor and major slips have been repaired, as of 31 March 2025. $295 million of the identified $390 million flood recovery cost has been spent (76%). This funding is provided for through the Auckland Crown Funding Agreement.

17. Road reserves grant scheme: In December 2024, the Transport, Resilience and Infrastructure Committee delegated up to $5 million to support owners to repair damage to their vehicle crossings where they were impacted by the 2023 storms (TICCC/2024/127). After expressions of interest closed in February, staff have identified that 33 properties are eligible for council support under the road reserves grant scheme, in Titirangi, Laingholm, Piha, Massey, and Beach Haven. The properties are impacted by slips in the road reserve at 12 sites (many providing shared vehicle crossings to multiple properties).

18. The Chief Executives of Auckland Council and Auckland Transport have now agreed the following approach to the grant scheme:

a) The council group will support homeowners with 50% of the cost of repairs

b) Grants will be capped at a maximum of $400,000 or 25% CV of the benefiting properties, whichever is the lesser

c) Owners will receive up to $30,000 to get investigative and design work underway to confirm the detailed design and cost of repairs.

19. It is appreciated that this will not meet the expectations of all impacted property owners, but balancing the needs of these owners with the need to be financially equitable across the the recovery programme.

20. Making Space for Water: All seven initiatives within Making Space for Water are on track to complete their FY2025 targets (six are already completed). Key achievements include:

· Groundbreaking and blessing held on 11 April for Te Ararata and Harania flood resilience projects

· Securing $85.7 million through the approval of a Project Delivery Plan from government Ministers for Tranche 2 project funding in the Ranui and Wairau catchments

· Completing additional inspections and/or maintenance on 820 stormwater assets and 12.1km of network across the region.

· Modelling flood risk in three catchments to identify and prioritise interventions

· Developing innovative flood monitoring and prediction tools

· Visiting 600 properties to identify overland flow path risks

· 588,338 visits to the Flood Viewer website this financial year

· Funding $519,483 to marae to build asset resilience

· Using digital tools (GIS, AI and other apps), building strong partnerships, and leveraging information already held by the council group, Healthy Waters and Flood Resilience and the wider council group have been able to target actions to where they are needed. Further detail is included as Attachment C.

21. Storm Recovery Fund: This fund is an-going operational budget of $20m per annum to make Auckland more resilient to, and ready for, future storm events. It is currently funding 31 programmes across the council group, including proactive maintenance and monitoring of assets, strengthening Auckland Emergency Management, providing public information, and improving capital works coordination and land use planning. Total spent at the end of the third quarter FY2025 is $10.5m, with a forecasted spend for the full year of $16.4m. Some funds will be carried forward as accumulating funds for future extreme weather events.

The Storm Affected Land Use programme is underway

22. The Storm Affected Land Use Policy and implementation approach (PEPCC/2025/33) was approved at the Policy and Planning Committee on 9 April 2025. Of note within the programme:

23. House removal: 183 Category 3 houses have now been removed, with approximately 30 per cent relocated. The programme is building momentum, with 39 houses removed in March 2025 (the highest monthly total so far). Removals are currently underway in Muriwai, Rānui, Henderson, Swanson, Massey, Milford, Piha, Titirangi, Mt Eden, Epsom, Pukekohe and Blockhouse Bay, and will continue across the region until November 2027. We are exploring opportunities to open up the market by auctioning higher end houses that are suitable for relocation.

24. Property maintenance: The Recovery Office is aware of the vandalism and anti-social behaviour empty properties are attracting. A maintenance plan is in place with existing council contractors to maintain Category 3 sites, with the focus on maintaining areas visible from roads and footpaths. Regular security patrols will also monitor the properties. Areas that are experiencing the worst vandalism and antisocial behaviour are being prioritised for house removal.

25. Complex cases: The future of some properties will be more complex to resolve, for example where properties are owned in unit title or cross lease. Now that all Category 3 properties have been identified, staff can assess the scale and nature of complex cases and develop approaches for a range of scenarios, including situations where the council is in joint ownership with others.

26. Land use analysis and decisions: A small number of land use / disposal recommendations are ready for decision. Preliminary assessments have been completed for most properties and will be shared with local boards at workshops planned for June / July 2025.

Terms of reference for the Political Advisory Group need to be updated

27. The Storm Recovery Political Advisory Group was established in mid-2023 to provide guidance to the Recovery Office

28. As the work of the office progresses, it is timely to review and update the scope of the group. The terms of reference, with proposed amendments are provided at Attachment A.

29. Two key changes are proposed:

a) Extending the ability of the group to make recommendations to ‘the relevant committee’ rather than just the Governing Body. This reflects that the reporting lines for the Recovery Office have changed, with quarterly reports now being received by the Transport, Resilience and Infrastructure Committee and other reports presented to other committees as required.

b) Extending the scope of recovery efforts that the group can provide guidance on to include implementation of the Storm Affected Land Use programme.

Planning for closure of the Recovery Office

30. A Recovery Transition Plan was reported to the Governing Body in June 2024 (GB/2024/79), focused on completing the 2023 recovery and building future capability and capacity for the council. The Office’s workload will progressively reduce as programmes are completed, with significant completion milestones in December 2025 and March 2026.

31. Now that categorisation has been completed, it is possible to plan for transition with much more certainty. A programme to manage the completion of recovery activities is underway, ensuring that recovery activities are either closed out or seamlessly transitioned into business as usual.

32. Timeframes for completion vary across different activities. For example, the risk assessment and categorisation teams are largely complete, and finalising files for archive and audit purposes. All Category 3 sale and purchase agreements and Category 2P grants need to be in place by December 2025. The navigation service will further reduce from July as case-loads reduce with a forecasted completion in December 2025.

33. Some programmes, including the Storm Affected Land Use programme and local recovery planning will continue, transitioning into regular council operations until complete. The Office will also ensure a smooth transition of residual office responsibilities such as data management and customer experience. This includes ensuring appropriate governance and reporting arrangements are in place for continuing programmes.

Capturing and implementing lessons learned

34. Part of the closure process is ensuring the lessons learned through the 2023 recovery are identified and applied. A ‘lessons learned’ programme is underway, focusing on developing products that will be useful for future events. This includes:

a) Documenting the events and recovery activities

b) Recommendations for council, focusing on business-as-usual readiness for future recovery efforts

c) Auckland Council recovery tool-kit, providing a set of operational resources to rapidly stand-up future recovery

d) Evidence-based advocacy papers for national and local stakeholders

35. Lessons learned findings will be shared with the Transport, Resilience and Infrastructure Committee in November, with final documents being released from early 2026 onwards.

Tauākī whakaaweawe āhuarangi

Climate impact statement

36. Climate change remains a key consideration for the Recovery Office. The Tāmaki Makaurau Recovery Plan sets out specific actions and describes work at a regional level that will contribute to Auckland’s ability to adapt to the impacts of climate change. This includes elements of the Resilient Auckland programme which will help to ensure Auckland’s resilience in the long-term and also prioritise adaptation planning for communities that have less adaptive capacity. The lessons learned programme will help to identify key adaptation and resilience opportunities.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

37. The Recovery Office is working across the council group to ensure alignment with council policy and priorities, and to deliver necessary work programmes. As the Recovery Office moves into its completion phase, staff are working closely with other teams that will pick up programmes in the transition.

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

Local impacts and local board views

38. Local boards have been engaged throughout the recovery process, including development of the Tāmaki Makaurau Recovery Plan and Making Space for Water programme. Recently, local boards have provided feedback to the draft Storm Affected Land Use Policy and implementation approach. Further opportunities for local board input will be provided in the Storm Affected Land Use process, with workshops with affected local boards scheduled for later this year.

39. Local boards have been invited to participate in the lessons learned programme, with a survey to be sent to all local board members in May 2025.

Tauākī whakaaweawe Māori

Māori impact statement

40. The recovery is an opportunity to partner with iwi, mataawaka, marae and Māori businesses. Regular contact from council will be important moving forwards to strengthen relationships with mana whenua, and ensure they are able to meaningfully participate in recovery efforts. In response to feedback received that mana whenua expect to be involved in the recovery effort at a local level, council are resourcing and enabling mana whenua to develop and implement recovery plans for their rohe, and involve them in project development.

41. Phase two of local recovery planning has added a further seven mana whenua entities to the three from phase one. The Recovery Office is working with other teams across the council to extend the workstream to additional iwi, aligning it with existing projects where possible.

42. Mana whenua were kept informed throughout the development of the Storm-Affected Land Use Policy and its implementation approach. Each iwi has been provided with high-level maps offering a snapshot of Category 3 properties purchased within their rohe. Iwi are encouraged to request additional information or share areas of interest, which can help inform the ongoing land use analysis.

Ngā ritenga ā-pūtea

Financial implications

43. As endorsed by Transport, Resilience and Infrastructure Committee at its December 2024 meeting (TICCC/2024/146), the Chief Executive made a request to the Crown to consider additional funding to support the higher number of Category 3 properties, or if this was not possible, to reallocate funding within the current Auckland Funding Agreement.

44. The Crown has responded, declining to provide further funding, but agreeing to reallocate funds in line with the council’s request. The revised allocations are outlined in Table One. Council funding allocations will be considered by the Governing Body for the current year and the Budget Committee for future-year budget updates.

Table One: Allocations within the Auckland Funding Agreement

Funding details ($)	Total	Crown Funding	Council Funding
Category 3 Buyouts (incl. transaction costs)	1,248,186,000	624,093,000	624,093,000
Category 2P Risk Mitigation Projects	38,775,806	24,041,000	14,734,806
Category 2C Tranche 1 Blue-Green Network projects (Māngere)	53,361,290	33,084,000	20,277,290
Category 2C Tranche 2 Resilience Programme (and Muriwai stormwater resilience)	138,358,065	85,782,000	52,576,065
Auckland Transport	110,000,000	110,000,000
Total	1,588,681,161	877,000,000	711,681,161

45. Recovery Office staff continue to proactively manage and track the cost of the adopted buy-out scheme. Now that categorisation is complete the Office is currently proactively forecasting the value at an individual property level for Category 3 properties and factoring in recovery of insurance funds and unavoidable costs of land management.

46. Also reported in the February committee report, house removal costs were coming in significantly above the budgeted amount. With new contracts coming into effect, costs are now reducing. The currently contracted 243 house removals, utilities disconnection and minimum land remediation have an average cost of $68,460 against a budget of $67,000. These costs continue to be managed to achieve the commercial outcomes. Houses suitable for relocation are now being opened to the market on a commercial basis.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

47. An update on the Recovery Office will be provided to the Audit and Risk Committee on 13 May 2025. The ongoing key risks and mitigations for the recovery effort are identified in Table Two.

Table Two. Priority Risks for the Recovery Office

	Risk	Mitigation
1. Sufficient funding	The number of Category 3 properties is within the final forecast of 1215. Individual property valuations and insurance contributions will affect the total cost. Any costs over the agreed Crown funding total will need to be absorbed by the council.	Monitoring and forecasting costs, with tight commercial management of the remaining recovery costs. Offsetting any cost through Storm Affected Land programme.
2. Delivery timeframes	Communities expect that categorisation and risk mitigation projects will be implemented quickly. Sometimes decisions take longer than the community expects.	Categorisation is now largely completed (with some potential for shifts due to disputes and 2P feasibility issues). The buy-out process is expected to be completed by March 2026. Updates to the Category 3 Handbook have introduced timeframes for completion of sale and purchase processes.
3. Fit for purpose systems	Rapid deployment of systems to support recovery need to be fit for purpose, demonstrate value for money, and able to be transitioned back into the council’s regular business when the Recovery Office is wound down.	Recovery Office staff are focused on improved data management and reporting systems, working with relevant staff in the wider council group to ensure smooth transition and to manage further risk of cost escalation. Lessons learned is identifying recommendations for future events.
4. Further severe weather events	Another severe weather event could occur before recovery efforts are complete. The effects of ex-cyclone Tam on the (2023 weather events) Recovery programme are being assessed.	Storm Response funding is increasing proactive maintenance and improving the council’s ability to respond quickly to events. Recovery continues to focus on the most vulnerable communities.
5. Inability to access all Crown funds	Business cases for each stage of Category 2 projects require council and Crown approval.	Delivery of Category 2 projects subject to business case approvals.

Ngā koringa ā-muri

Next steps

48. The next report to the Transport, Resilience and Infrastructure Committee will be in August 2025. This will include a summary of progress on implementation of the Tāmaki Makaurau Recovery Plan.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇨	Storm Recovery Political Advisory Group - Terms of reference April 2025
b ⇨	Recovery dashboard April 2025
c ⇨	Making space for Water programme update April 2025

Ngā kaihaina

Signatories

Author

Tanya Stocks - Recovery Office Strategic Support

Authorisers

Mace Ward - Group Recovery Manager

Barry Potter - Director Resilience and Infrastructure

Chairperson	Cr Andrew Baker
Deputy Chairperson	Cr Christine Fletcher, QSO
Members	Cr Josephine Bartley	Cr Kerrin Leoni
	Houkura Member Billy Brown	Cr Daniel Newman, JP
	Mayor Wayne Brown	Houkura Member Pongarauhine Renata
	Cr Angela Dalton	Cr Greg Sayers
	Cr Chris Darby	Deputy Mayor Desley Simpson, JP
	Cr Julie Fairey	Cr Sharon Stewart, QSM
	Cr Alf Filipaina, MNZM	Cr Ken Turner
	Cr Lotu Fuli	Cr Wayne Walker
	Cr Shane Henderson	Cr John Watson
	Cr Richard Hills	Cr Maurice Williamson
	Cr Mike Lee

Date	Subject
15/04/2025	Memorandum: Regional Public Transport Plan Review
15/04/2025	Information: Draft Auckland Transport Statement of Intent 2025 – 2028
17/04/2025	Memorandum: Karanga-a-Hape Station Precinct Integration Project
23/04/2025	Memorandum: Te Ara Hauāuru – Northwest Rapid Transit

No.	Title	Page
a ⇨	Transport, Resilience and Infrastructure Forward Work Programme
b ⇨	Memorandum: Regional Public Transport Plan Review
c ⇨	Information: AT letter regarding Draft Auckland Transport Statement of Intent 2025 - 2028
d ⇨	Memorandum: Karanga-a-Hape Station Precinct Integration Project
e ⇨	Memorandum: Te Ara Hauāuru – Northwest Rapid Transit

Author	Lata Smith - Kaitohutohu Mana Whakahaere Matua / Senior Governance Advisor
Authoriser	Barry Potter - Director Resilience and Infrastructure