Revenue, Expenditure and Value Committee

19 August 2025

Northcote Community Hub and Puāwai Cadness Reserve Procurement Plan

File No.: CP2025/16880

Te take mō te pūrongo

Purpose of the report

1. To provide an update on the Northcote Community Hub and Puāwai Cadness Reserve procurement plan.

Whakarāpopototanga matua

Executive summary

2. The Auckland Urban Development Office is delivering a new multi-purpose Northcote community hub and upgrade of Puāwai Cadness Reserve (Northcote Hub) which will integrate community services in Northcote.

3. The redevelopment of the Northcote Hub is a cornerstone project of the wider redevelopment of the Northcote Town Centre as set out in the Northcote High Level Project Plan approved by the Planning Committee in 2016 (AUC/2016/23).

4. The Kaipātiki Local Board approved the concept plan for the Northcote Hub in May 2024 (KT/2024/88).

5. Budget for the project is included in the 2024-2034 Long-Term-Plan for the 2026-2028 financial years.

6. The proposed Northcote Hub includes:

· refurbishment of the heritage-listed Northcote Library

· construction of a new wing to house community tenancies

· upgrade of Puāwai Cadness Reserve, including new playgrounds, basketball courts, and landscaping

· renovation of Norman King Plaza to improve connectivity and public amenity.

7. The Detailed Business Case for the Northcote Community Hub Puāwai Cadness Reserve was approved by the legacy Eke Panuku Portfolio Steering Group in April 2025.

8. Design for the Northcote Community Hub and Puāwai Cadness Reserve is completed, and staff have prepared a procurement plan for approval to progress to the construction contract phase.

The Northcote Hub aligns with Better Value Projects principles

9. Better value projects principles are aligned to the development of the Northcote Hub. The problem was defined early as part of the Northcote High Level Project Plan, to solve aging buildings with rising maintenance costs and poor community integration and connectivity.

10. The project brief, design and delivery align with the principles, and include benchmarking, independent cost estimates, contingency analysis, procurement efficiencies and continuous value assessment embedded through to completion.

11. More details regarding the procurement plan for this project are provided in the confidential section of the Revenue, Expenditure and Value Committee meeting agenda for 19 August 2025.

Ngā tūtohunga

Recommendations

That the Revenue, Expenditure and Value Committee:

a) tuhi tīpoka / note the information contained in this report on the procurement plan for the Northcote Community Hub and Puāwai Cadness Reserve enables transparency on the topic due for discussion in the public excluded part of the meeting.

b) whakau / confirm that the confidential report and its resolutions remain confidential until reasons for confidentiality no longer exist.

Horopaki

Context

Development of the hub as the cornerstone project of the Northcote Programme

12. The Northcote Community Hub and Puāwai Cadness Reserve upgrade (Northcote Hub) is a cornerstone project of the Northcote Programme, which seeks to transform the town centre into a vibrant, inclusive, and future-ready neighbourhood. The project supports the strategic vision of the Northcote Framework Plan 2016 to “create a growing community with a lively and welcoming heart that celebrates culture, where business thrives, and everyone’s needs are met.”

13. Since 2017, Eke Panuku, and now the Auckland Urban Development Office, has led the Northcote Programme through a coordinated programme of master planning, site acquisition, placemaking, and public realm investment. The development of a multi-purpose community hub was identified early as a key strategic move to consolidate community services, enhance public space, and support the growing population driven by Kāinga Ora’s housing intensification.

14. In October 2021, the Indicative Business Case was approved by the legacy Eke Panuku Portfolio Steering Group confirming the preferred location and delivery approach for the hub. This was followed by extensive design development and stakeholder engagement, including input from mana whenua, Kaipātiki Local Board, community service providers and library staff.

15. The Kaipātiki Local Board approved the concept plan for the Northcote Hub in May 2024 (KT/2024/88).

Alignment with Better Value principles

16. The need for a new community hub in Northcote was defined early through the Northcote High Level Project Plan approved by the Planning Committee in 2016 (AUC/2016/23). The existing services are spread across three aging buildings with poor accessibility, rising maintenance costs, and limited integration. These facilities also block access to Puāwai Cadness Reserve and constrain wider town centre improvements.

17. Through early problem definition engagement with the local board and council services, the requirements and location of an upgraded community hub were ‘right sized’ by agreement to upgrade and extend the existing facility rather than build new. This would include a project brief that maximises space for the council library and community service providers into one building rather than three, approved by the Kapatiki Local Board (KT/2023/183). This meets better value principles 1 and 2 (Attachment A).

18. The design of the Northcote Hub includes standard designs, materials and furniture to ensure construction costs and ongoing maintenance costs are efficient. This aligns with better value principle 3.

19. To manage consultancy and delivery costs:

· designs were benchmarked against similar projects to ensure value (principle 8)

· WT Partnership provided independent cost estimates, review and probabilistic contingency analysis (principle 9)

· external works costs were reviewed in detail, with potential savings identified (e.g. alternate playground options) (principle 8 and 10).

· the procurement approach of proceeding with a closed tender to the suppliers shortlisted from the Te Hono project, a similar project, streamlines the procurement and aligns with better value principles 5, 6 and 7

· continuous value assessment (principle 10) has been embedded throughout, with regular design reviews, stakeholder engagement, and alignment to Better Value Principles (Attachment A)—ensuring the project remains scoped appropriately and delivers long-term community benefit.

Preparing design for construction of the Northcote Hub

20. The Detailed Business Case approved in April 2025 by the Legacy Eke Panuku Portfolio Steering Group, recommends proceeding to construction of the Northcote Hub including (refer to Attachment B for design drawings):

· refurbishment of the heritage-listed Northcote Library

· construction of a new wing to house community tenancies

· a furniture allowance for the Community Hub

· upgrade of Puāwai Cadness Reserve, including new playgrounds, basketball courts, and landscaping

· renovation of Norman King Plaza to improve connectivity and public amenity.

21. Design work has been completed to support resource and building consent applications. The project is now transitioning into the construction procurement phase.

22. The procurement plan has been developed in collaboration with Auckland Council Procurement and aligns with NZS3910 contract standards. Approval of this plan is required to proceed with contractor engagement and construction contract negotiation. Delivery milestones are indicated below in Table 1.

Table 1. Hub delivery milestones

Activity	Timeline
Release Competitive Tender Documentation	October 2025
Tender Evaluation	November to December 2025
Construction contract negotiation	December 2025
Supplier recommendation and contract award	January 2026
Physical works commencement	February 2026
Practical completion	July 2027

23. More information on the context to this procurement is detailed in the confidential report of the Revenue, Expenditure and Value Committee meeting agenda for 19 August 2025.

Tātaritanga me ngā tohutohu

Analysis and advice

24. Procurement options and recommendations for the Northcote Hub works are outlined in the confidential report of the Revenue, Expenditure and Value Committee meeting agenda for 18 March 2025.

Tauākī whakaaweawe āhuarangi

Climate impact statement

25. The Northcote Hub project is addressing climate mitigation and adaptation through targeting of a 5 Star Green Star rating. The rating has been driven by the Parks and Community Facilities Sustainable Asset Standard and the legacy Eke Panuku Green Buildings Policy and is in line with the Built Environment priority in Te Tāruke-ā-Tāwhiri: Auckland's Climate Plan 2020.

26. The 5 Star Green Star rating applies to the public realm landscape, as well as the building, with a strong focus on stormwater management. Embodied carbon is being reduced through renewal and extension of the existing library building. Operation emissions are being significantly reduced through a solar installation and should limit or eliminate any additional operational emissions from the building’s extension.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

27. Throughout the design process key council teams have been involved and provided review, including: Community Wellbeing department (library staff), Parks and Community Facilities and Healthy Waters and Flood Resilience.

28. The Community Wellbeing department, particularly the Northcote Library team, has been a key member of the project team throughout the design phase. Workshops involving the libraries staff have been ongoing throughout design to ensure that its requirements are met.

29. Parks and Community Facilities will manage the facility when it is completed. This team has reviewed and provided input into the design throughout the project.

30. More information about Council Group impacts is outlined in the confidential report of the Revenue, Expenditure and Value Committee meeting agenda for 19 August 2025.

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

Local impacts and local board views

31. The project will deliver significant positive local impacts including the following.

· Bring different community service providers together in one community hub facility enabling social infrastructure and fit for purpose community facilities.

· Renovate the existing library to meet modern standards as well as deliver a New Zealand Green Building Council minimum Greenstar 5 rating.

· Renovation and extension of Cadness Reserve to provide two new playground areas as well as refurbishment of basketball courts. This will also address existing Crime Prevention Through Environmental Design / safety concerns surrounding Puāwai Cadness Reserve.

· Provide improved public realm spaces that create multifunctional spaces for the community.

· Improve connectivity by linking the Puāwai Cadness Reserve to the Te Ara Awataha Greenway project which is scheduled to be constructed in 2026.

· Increasing canopy cover to contribute to the Te Rautaki Ngahere ā-Tāone o Tāmaki Makaurau / Urban Ngahere Strategy.

Local board views

32. The Kaipātiki Local Board has been engaged in this project, and the Northcote programme, since 2016 and includes the following engagement milestones.

· In March 2019 the Kaipātiki Local Board endorsed the benchmark masterplan for Northcote town centre (KT/2019/41).

· In October 2021 the Kaipātiki Local Board approved the location for the Northcote Hub (KT/2021/170).

· In October 2023, following several workshops with local board members, community stakeholders and community lessees, the Kaipātiki Local Board approved the brief for the community hub, including the services and spaces to be included in the design (KT/2023/183).

· In May 2024 the Kaipātiki Local Board approved the concept design of the Northcote Community Hub and Puāwai / Cadness Reserve (KT/2024/88).

33. Staff have continued to engage with the local board every two months via an update workshop for the last three or more years of the project development.

Tauākī whakaaweawe Māori

Māori impact statement

34. The Northcote Community Hub project has actively engaged with mana whenua through the Mana Whenua Kaitiaki Forum. This engagement reflects a commitment to upholding Te Tiriti o Waitangi principles and ensuring mana whenua voices and mātauranga Māori are embedded within the development process.

Engagement and Partnership

35. Mana whenua were invited to participate in key stages of the project’s development through the legacy Eke Panuku forum. Regular updates and feedback sessions have taken place, allowing iwi representatives to provide input into the design, function, and cultural expression of the community hub. Their contributions have been instrumental in shaping a design that reflects the cultural narrative of the area.

Positive Outcomes for Māori

36. The project acknowledges the significance of the whenua and the ongoing role of mana whenua as kaitiaki. Continued collaboration is expected as the project moves into further design and delivery phases and is expected to deliver:

· strengthened relationships between council and mana whenua

· increased Māori influence in urban design and placemaking

· cultural expression integrated into community infrastructure

· opportunities for mana whenua-led design, procurement, and visibility.

37. More information about Māori impacts are outlined in the confidential report to the Revenue, Expenditure and Value Committee meeting agenda for 19 August 2025.

Ngā ritenga ā-pūtea

Financial implications

38. Information about the financial implications of this procurement is outlined in the confidential report of the Revenue, Expenditure and Value Committee meeting agenda for 19 August 2025.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

39. Key risks arising from the recommended decision outlined in Table 2 below:

Table 2. Northcote Hub procurement plan risks and mitigations

Risk

Likelihood and consequence

Mitigation

Procurement delays

Delays in procurement approvals or contract negotiations could impact the construction start date.

Likelihood: High

Consequence: Lapsed supplier quote, delayed approvals until February or later, and potential need to restart procurement.

Seek approval of the supplier recommendation report and award of the contracts to be delegated to the Chief Executive within the project budgets.

Regulatory delays

Delays in obtaining Resource Consent, Building Consent, or Engineering Plan Approval could impact the construction start date.

Likelihood: Medium

Consequence: Delay in delivery

To mitigate this, realistic timeframes have been built into the programme, and high engagement is maintained with Auckland Council’s regulatory teams.

A dedicated planning consultant is managing the consent process, and early coordination with Healthy Waters and Flood Resilience and other approval bodies is underway to reduce the risk of extended review periods.

40. More information about the risks and mitigations proposed for this procurement are outlined in the confidential report in the Revenue, Expenditure and Value Committee meeting agenda for 19 August 2025.

Ngā koringa ā-muri

Next steps

41. Next steps are outlined in the confidential report of the Revenue, Expenditure and Value Committee meeting agenda for 19 August 2025.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇨	Better Value Principles
b ⇨	Northcote Hub images

Ngā kaihaina

Signatories

Authors

Kate Cumberpatch - Priority Location Director

Vivian Dias – Head of Capital Procurement

Authorisers

Dave Colquhoun - General Manager Procurement Services

Barry Potter - Director Resilience and Infrastructure

Ross Tucker - Group Chief Financial Officer

Revenue, Expenditure and Value Committee

19 August 2025

Group Shared Services Quarterly Update (August 2025)

File No.: CP2025/08024

Te take mō te pūrongo

Purpose of the report

1. To update the committee on the progress of Group Shared Services (GSS) in FY2024/2025.

Whakarāpopototanga matua

Executive summary

2. Group Shared Services (GSS) was established in June 2024 and is responsible for providing or exploring opportunities for cost effective enabling services to the Auckland Council Group across six functions; Corporate Support Services, Customer Experience and Digital Services, Data Services, People Services, Procurement Services and Technology Services.

3. GSS has now been in place for 12 months. This update to the committee provides an overview of the progress and value delivered by Group Shared Services over that 12-month period (FY2024/2025).

4. Initial progress of GSS was slower than originally forecast for year 1. This was mainly due to the requirement for business cases to be adopted for each function after the Long-Term Plan (LTP) submission that gave rise to GSS. Business cases were requested by the GSS Board[1] for services in scope to prove value and test assumptions made within the LTP submission before any progress to implement a full scaled group wide shared service construct could proceed.

5. The business case collaboration process was lengthy, involved multiple stakeholders across the Council Group, required timely access to data and information, and at times necessitated external independent reviews for assessment of value. Progress has been made in areas through common sense approaches to opportunities (examples below).

6. However, for other opportunities, the GSS Board’s preference to take due care for the mitigation of perceived risk, coupled with the sheer scale of change and projects within Council Controlled Organisations (CCOs) (e.g. financial separation for Watercare and national ticketing solution for Auckland Transport), has had an impact on the ability of GSS to move at pace. Although this is understandable and takes a conservative risk position, it has impacted the benefits that could be achieved in year 1 of GSS and potentially impacts year 2 (FY2025/26).

7. Examples of large-scale programmes in flight within GSS are the Galaxy Programme (HR information system and payroll services), GIS (geographic information system) (initially for Watercare, with Auckland Council next), and modern technology components to assure benefits materialise from the upcoming SAP replacement. These are large and complex pieces of work that align to the scope and potential of GSS in both a shared service construct and achieving committed financial savings.

8. The GSS Board was expected to approve the functional business cases for each function by 1 July 2025. As the GSS Board is not a legal entity which can make binding decisions on behalf of the council or CCOs, the board has agreed to an approach of endorsement not approval. The business cases are therefore now endorsed and have progressed to implementation planning. A GSS programme process timeline and summary of services within scope of the functional business cases is included in Attachment A.

9. GSS met its operational spend savings target of $5m for FY2024/2025. This target was achieved through a combination of enduring savings from corporate property optimisation across Auckland Council parent and one-off savings from a reduced pace of spending. Note: this savings figure is included and contributes to the $66m Auckland Council savings target for FY2024/25, presented in another paper on this agenda.

10. The FY2025/26 savings target of $7.8m is expected to be achieved in the same manner, noting that functional business cases indicate the start of benefit realisation (savings) from late FY2025/2026.

11. GSS also achieved significant cost avoidance in FY2024/2025, totalling $36m across Auckland Council Group and Group Shared Services, the majority as a result of negotiating favourable contract terms through the procurement process across multiple services.

12. Cost avoidance across the LTP 2024-2034 totals $83m in benefit across the Group. A full breakdown of cost avoidance is included in Attachment B.

13. GSS has continued to work with CCOs to deliver value to Aucklanders. Examples of note since the last GSS update to this committee (May 2025) include GeoMaps being enabled with macrons so correct spelling can be used when using the search function (e.g. Ōtara), and working with Licensing and Compliance, supporting a customer engagement strategy for dog registrations that led to 7.3% increase compared to FY2023/2024. The increase in dog registrations both increases the council’s revenue and provides Licensing and Compliance with more complete information to assist in animal management issues. A list of other examples of value delivered this quarter is provided in Attachment C.

14. GSS continues to prioritise innovation and look for opportunities to incorporate the benefits of Artificial Intelligence (AI). Early next year (Q3 FY2026), Aucklanders will experience the benefits of the ‘AI agent,’ an AI enabled service which will support to resolve customer queries in different ways over a phased implementation. To date this project has completed design work and will proceed to internal testing by Auckland Council kaimahi in September and an initial service for the public in February (“public beta”).

15. GSS are also supporting the Auckland Council Executive Lead Team to develop an AI strategy which will provide support and training to kaimahi who wish to use AI. As there are different types of AI that can be used for different reasons (from increasing productivity of an individual to reimagining whole processes), guidance and understanding of the options and implications of AI use is important. Capability uplift (training) can also be extended to elected members.

16. The GSS Board continue to prioritise progress towards the GSS strategic objectives and will ensure a continued focus on the enablers of that progress for FY2025/2026. These enablers are:

a) prudent prioritisation of investment to ensure benefits are delivered within allocated budget, noting the $182m in scope for GSS functions reflects less than half of the total group spend on the six functions (approximately $420m).

b) consistently demonstrating value to maintain and enhance confidence across the Group, with a focus on reimagining the way things are done (not simply automating inefficient processes and systems).

c) investing in and prioritising innovation to take advantage of new technologies to support productivity, customer experience and benefits (such as AI tools).

d) collaboration across group entities, supported by open data sharing and a clear and simple operating and charge back model to carefully monitor cost, benefit and financial separation (as required by Watercare Services Limited).

Ngā tūtohunga

Recommendation/s

That the Revenue, Expenditure and Value Committee:

a) tuhi tīpoka / note the update from Group Shared Services.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇨	Scope of functional business cases
b ⇨	Estimated cost avoidance breakdown
c ⇨	Value delivered in Q4 FY25

Ngā kaihaina

Signatories

Author

Taryn Muir - Executive Officer

Authorisers

Richard Jarrett - Director Group Shared Services

Helen Robinson – Independent Chair Group Shared Services

Ross Tucker - Group Chief Financial Officer

Revenue, Expenditure and Value Committee

19 August 2025

Auckland Council savings progress for the quarter ended 30 June 2025

File No.: CP2025/16422

Te take mō te pūrongo

Purpose of the report

1. The purpose of this report is to provide an update on Auckland Council’s progress in achieving the savings targets for the 2024/2025 financial year. It outlines the strategies, initiatives, and actions undertaken to meet these targets, and assesses any associated financial risks and their mitigation.

Whakarāpopototanga matua

Executive summary

2. The Long-term Plan (LTP) 2024-2034 includes a combined enduring savings target of $66 million for Auckland Council in the 2024/2025 financial year. This is in addition to the ongoing $90 million annual savings target established in the previous long-term plan, which has already been achieved on an enduring basis.

3. As of 30 June 2025, Auckland Council has reached $84 million total savings for the 2024/2025 financial year, overachieving its operating savings target of $66 million by $18 million. The council achieved the yearly savings target by the end of quarter three and a further $17.6 million in one-off savings was achieved in the final quarter of 2024/2025.

4. $11.7 million of operational savings were delivered in the quarter through initiatives such as careful management of staffing levels and marketing expenses, reducing reliance on external consultants and legal services, upgrading copper lines, leveraging better contract pricing, and refining planned spend on the Delivering Differently programme.

5. $5.9 million of non-rates revenue improvements has contributed to improved recovery of overhead costs, reducing the burden on general ratepayers. Increased revenue was achieved from more effectively delivering increased consenting and monitoring activities with improvements to processes and systems, and efficient delivery of increased Land Information Memorandums (LIMs) and property files transactions.

6. Other key initiatives also continue to progress, including the rollout of shared services under GSS which met its $5 million savings target from the delivery of services at below budgeted spend, and $2.2 million in initiatives now identified or underway to improve revenue and costs of pools and leisure services.

Ngā tūtohunga

Recommendation/s

That the Revenue, Expenditure and Value Committee:

a) tuhi tīpkoa / note that Auckland Council has successfully achieved $84 million savings for the 2024/2025 financial year (exceeding the $66 million annual target by $18 million) including $17.6 million realised during the fourth quarter.

b) tuhi tīpkoa / note that this is $84 million is over and above a $90 million per annum ongoing savings target established through the previous long-term plan, bringing the total savings achieved for 2024/2025 to $174 million (compared to $106 million and $138 million achieved for the prior two years).

Horopaki

Context

7. Through both the annual and long-term planning processes, Auckland Council has set various operating savings targets over time:

· The $90 million annual savings target, established in the Long-term Plan 2021–2031 (the Recovery Budget), has been fully achieved on a sustained basis.

· An additional $33 million per year for Auckland Council and $5 million per year for the Revenue, Expenditure and Value Committee were set in the Annual Plan 2023/2024.

· The Long-term Plan 2024-2034 includes a further $28 million savings target, bringing the total savings target for the 2024/2025 financial year to $66 million.

8. The 2024-2034 Long-Term Plan continues to require significant financial discipline regarding Auckland Council’s operating costs. This includes setting prudent baseline funding measures and introducing further initiatives to enhance efficiency and deliver value for money. The decision-making framework outlined in the plan specifies both the initiatives to be implemented and the target savings amounts that the Auckland Council is tasked with achieving.

9. It is important to note that "operating savings" encompasses both cost reductions and revenue increases, essentially any initiative that improves the net operating result.

Tātaritanga me ngā tohutohu

Analysis and advice

10. In the fourth quarter ended 30 June 2025, Auckland Council achieved a further $17.6 million of one-off savings through the initiatives outlined below.

$5.9 million from non-rates revenue improvements

· $3 million from delivery of improved building consent and inspection revenue with improvements to processes and systems for Building Consents.

· $1 million from increased Resource Management Act (RMA) monitoring activities through improved productivity, time capture and billing improvements.

· $1.3 million from efficient delivery of increased LIMs and property file volumes.

· $0.6 million from increased commercial property rental revenue and recovery of costs relating to community leases.

$11.7 million in operational cost savings

· $4.2 million from the Delivering Differently programme, following detailed planning to refine the approach, costs and benefits of the programme without compromising overall delivery.

· $2.8 million from the delivery of shared services below their budgeted cost by managing staffing levels, improved contracts, and implementing initiatives such as replacement of copper lines within Group Shared Services.

· $1.1 million in operating cost savings from project expenses within the Engineering Asset and Technical Advisory (EATA) function following implementation of new Better Value principles.

· $3.6 million from managing costs below budget. This included costs such as staffing, professional services (by leveraging internal skills), strategic investment funding, external legal fees and various discretionary expenses across the organisation.

11. Increased building consents and inspections revenue has been successfully delivered while controlling direct costs through improvements to processes and systems over time. Improvements include better reporting, semi-automated interim billing to reduce errors and improve timeliness and better monitoring of performance to improve productivity.

12. Revenue from RMA monitoring activities has improved due to a focus on improving productivity to deliver increased activity, enhancing staff time capture and improving billing processes. There has also been effort to reduce reliance on external consultants to improve cost effectiveness in this area.

13. Following some implementation delays, a cost saving in the digital component of the Delivering Differently programme was achieved from under-utilised budget without compromising overall programme delivery. Detailed planning was undertaken, and the programme remains on track to deliver all core digital components within timeframes that align with broader 10-year programme objectives.

14. The upgrade of telecommunication infrastructure from copper lines to fibre, combined with cost savings from renewed storage contracts, has enhanced both service quality and financial performance within Group Shared Services.

15. Favourable pricing for outsourced works on the new coastal management contract including Glenbrook Beachfront, Long Bay Regional Park footbridge and Kiwi Esplanade Wharf; along with cost reductions from Closed Landfill projects contributed to project savings in Engineering Asset and Technical Advisory (EATA).

16. Savings on professional services and external legal fees was achieved through effectively managing and leveraging internal capability, reducing the need to engage external services including consultancy support for strategic initiatives. The effort reflects disciplined prioritisation and alignment of work against Auckland Council’s long-term plan to reduce activity and resources in a range of discretionary areas. This also aligns with the introduction of a recent policy to clarify and strengthen discipline relating to the use of professional services, consultants and contractors.

17. The Council also continues to manage spend below budget across a range of cost categories, including from unfilled vacancies through careful workforce management to ensure prudent management of staff costs.

Group Shared Services

18. GSS has now been in place for 12 months. Examples of large-scale programmes in flight within GSS are the Galaxy Programme (HR Information System and Payroll services), GIS (initially for Watercare, with Auckland Council next), and modern technology components to assure benefits materialise from the upcoming SAP replacement. These are large and complex pieces of work that align to the scope and potential of GSS in both a shared service construct and achieving committed financial savings.

19. GSS met its operational spend savings target of $5m for 2024/2025. This target was achieved through a combination of enduring savings from corporate property optimisation across Auckland Council parent and one-off savings from a reduced pace of spending. The GSS update, also on this agenda provides further information.

Pools & Leisure update

20. On 1 August 2024, the Governing Body approved a partially outsourced model for pool and leisure services, and as of April 2025, seven centres have successfully transitioned to new operators. A $3 million annual operating savings target was agreed for the centres remaining under Auckland Council management and work is now underway on initiatives to achieve this for future financial years.

21. The department has entered the delivery phase for potential initiatives to deliver $2.2 million of annual operating savings, some with estimated savings to be confirmed by the end of 2025/2026. Ongoing work with unions and council departments are being carried out to identify further improvements, including a second tranche focused on sustainability to meet the $3 million savings target.

2024/2025 target achieved, enduring savings remain a key focus

22. While the council has fully achieved its 2024/2025 savings target, $59.6 million (sixty-eight per cent) of the $84 million savings achieved were one-off in nature and savings of an equivalent value will need to be found again in future years.

23. Careful cost management and regular quarterly reviews have delivered one-off savings and cost reductions, which are currently helping to offset delays in achieving long-term savings across several identified initiatives.

24. The focus remains on implementing enduring savings initiatives to ensure ongoing financial sustainability in future years of the long-term plan where savings targets continue to grow and compound over time.

25. Attachment A includes,

· Auckland Council savings programme as at 30 June 2025 and;

· Annual Plan 2024 operating cost reductions table.

26. Attachment B includes the Pools and Leisure operational improvements, and savings update report.

Tauākī whakaaweawe āhuarangi

Climate impact statement

27. The spend reductions achieved did not relate to projects or activities with a focus on achieving improved climate impact outcomes.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

28. The savings targets for 2024/2025 partly apply to council-controlled organisations. Some savings initiatives are to be achieved for the group, for example, corporate property rationalisation, strategy and planning simplification, and group shared services.

29. New tools and process improvements successfully implemented in Auckland Council may also be shared with the council-controlled organisations for greater efficiencies and other benefits.

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

Local impacts and local board views

30. The LTP noted that savings contributions are expected to come from implementing more cost-effective service delivery models for the provision of regionally networked local services such as pools and leisure, and property management across the council group, with potential impact to local board budgets.

31. With the introduction of fairer funding for local boards from 1 July 2025, further work is underway to determine how these arrangements will align and operate going forward.

Tauākī whakaaweawe Māori

Māori impact statement

32. This report does not seek any decision. The savings initiatives and targets were set as part of the annual budget process which was subject to consultation and considered impacts on Māori for the purposes of that decision. In terms of the savings achieved in the fourth quarter, we have not noted any that have a particular impact on Māori.

33. The Māori outcomes budget is ring-fenced for delivery of Kia Ora Tāmaki Makaurau and was not subject to cost reductions.

Ngā ritenga ā-pūtea

Financial implications

34. Had the savings not been achieved, this would have resulted in higher debt levels and interest costs and would have flow on effects through to future financial years.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

35. The principal risks to achievement of future savings and cost reduction targets stem from inflationary pressures on staff and other contracted operational expenses which may reduce potential savings; as well as the rate at which process and efficiency improvements are executed to actualise anticipated benefits.

36. Changes to the Local Board Funding Policy, which is aimed at enhancing decision-making autonomy and ensuring a more equitable allocation of resources, may complicate the achievement of future savings associated with locally funded services.

Ngā koringa ā-muri

Next steps

37. The next update will be provided upon the finalisation of Auckland Council’s quarter one results for the 2025/2026 financial year.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇨	Quarter 4 savings graph and operational cost allocations table
b ⇨	Pools and Leisure operational improvements and savings update

Ngā kaihaina

Signatories

Author

Emma Munro - Principal Advisor

Authorisers

Brian Chan - General Manager Financial Advisory

Ross Tucker - Group Chief Financial Officer

Revenue, Expenditure and Value Committee

19 August 2025

Healthy Waters and Flood Resilience service and financial performance review

File No.: CP2025/15246

Te take mō te pūrongo

Purpose of the report

1. To whiwhi / receive an overview of Healthy Waters and Flood Resilience service delivery and financial performance.

Whakarāpopototanga matua

Executive summary

2. The Healthy Waters and Flood Resilience department is responsible for managing council's stormwater obligations under the Local Government Act (2002) and Resource Management Act (1994) and administering the Stormwater Bylaw (2015). In addition, the Network Discharge Consent, a single, regionwide consent to discharge stormwater, sets conditions that the department’s activities must meet and requires a three-yearly review.

3. Department activity is funded through a combination of general rates, targeted rates, central government co-funding, and other revenue.

4. There are four key drivers of investment: supporting growth, being storm ready, improving water quality, and ensuring resilient systems. It is founded on a whole-of-catchment 30-year investment plan for asset management.

5. The total departmental budget for the 2025/26 financial year is $204.2 million.

6. Flood recovery and future resilience remains a key focus for the department. This is reflected in the budget allocation of $59.8 million for the Making Space for Water programme ($50 million crown co-funding projects and $9.8 million council only funding projects) representing 29 per cent of the total budget.

7. Out-of-sequence growth puts pressure on existing stormwater networks and increases exposure to flood risk. The continued maintenance of our network and building robust monitoring systems becomes more critical as we respond to out-of-sequence growth with robust network risk data.

8. With significant legislative reform underway, staff are working across council, central government, and the water services industry to influence the direction of legislation and implementation. A key outcome of this legislative reform is a change to the definition of stormwater and council’s accountability for managing network risk because of development.

9. This change provides an opportunity to build our existing partnerships to deliver a more resilient stormwater network that supports our key investment drivers. It is also driving continued growth within the department to build workforce resilience and reduce dependence on consultant services.

10. Healthy Waters and Flood Resilience look forward to providing this overview of operating environment and financial performance, along with receiving feedback on areas the committee consider warrants greater scrutiny.

Ngā tūtohunga

Recommendation

That the Revenue, Expenditure and Value Committee:

a) whiwhi / receive the update from Healthy Waters and Flood Resilience

Ngā tāpirihanga

Attachments

No.	Title	Page
a⇨	Healthy Waters and Flood Resilience Service Financial Performance Review

Ngā kaihaina

Signatories

Author

Craig Mcilroy - General Manager Healthy Waters and Flood Resilience

Authorisers

Barry Potter - Director Resilience and Infrastructure

Ross Tucker - Group Chief Financial Officer

Resolution Number	Item	Status
ECPCC/2025/58	Value for Money Reviews – Approval of Future Review Pipeline and Terms of Reference (Legal Services and Resource Consents)	Staff are progressing the legal services and resource consents service reviews. Further work is being undertaken to scope up the future service reviews and drafting terms of reference before receiving committee approval.
ECPCC/2025/66	CONFIDENTIAL: Electricity Supply Procurement 2026	The preferred providers have been identified, and Letters of Intent have been issued to secure the pricing received. The Supplier Recommendation Report is currently being finalised and will be submitted to the Chief Executive for approval, in line with the resolution.
ECPCC/2025/67	CONFIDENTIAL: Section 17A Review - Stormwater Contracts	Staff are continuing investigations to confirm costs and benefits of the initial recommendation, as well as alternate options.

Revenue, Expenditure and Value Committee

19 August 2025

Summary of Revenue, Expenditure and Value Committee information memoranda and briefings (including the forward work programme) - 19 August 2025

File No.: CP2025/15526

Te take mō te pūrongo

Purpose of the report

1. To note the progress on the Revenue, Expenditure and Value Committee forward work programme appended as Attachment A.

2. To whiwhi / receive a summary and provide a public record of memoranda or briefing papers that have been distributed to Revenue, Expenditure and Value Committee.

Whakarāpopototanga matua

Executive summary

3. This is a regular information-only report which aims to provide greater visibility of information circulated to Revenue, Expenditure and Value Committee members via memoranda / briefings or other means, where no decisions are required.

4. The following information items have been distributed:

Date	Subject
12/08/2025	Connections between the Natural Environment Targeted Rate and local boards - memo

5. This document can be found on the Auckland Council website, at the following link:
http://infocouncil.aucklandcouncil.govt.nz/

· at the top left of the page, select meeting / Te hui “Revenue, Expenditure and Value Committee” from the drop-down tab and click “View”;

· under ‘Attachments’, select either the HTML or PDF version of the document entitled ‘Extra Attachments’.

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

Ngā tūtohunga

Recommendation/s

That the Revenue, Expenditure and Value Committee:

a) whiwhi / receive the Summary of Revenue, Expenditure and Value Committee information memoranda and briefings (including the forward work programme) – 19 August 2025 report.

b) tuhi tīpkoa / note the progress on the 2025 forward work programme appended as Attachment A of the agenda report.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇨	Revenue, Value and Expenditure forward work programme - August 2025
b ⇨	Connections between the Natural Environment Targeted Rate and local boards - memorandum

Ngā kaihaina

Signatories

Author	Phoebe Chiquet-Kaan - Governance Advisor
Authoriser	Ross Tucker - Group Chief Financial Officer

Revenue, Expenditure and Value Committee

19 August 2025

Summary of confidential decisions and related information released into open

File No.: CP2025/15372

Te take mō te pūrongo

Purpose of the report

1. To note confidential decisions and related information released into the public domain.

Whakarāpopototanga matua

Executive summary

2. This is a regular information-only report which aims to provide greater visibility of confidential decisions made that can now be released into the public domain.

3. The following decisions / documents are now publicly available:

Date of Decision

Subject

18/04/2023

Materials Recovery Facility contract costs

19/07/2023

Supplier recommendations for Talent Acquisition Services

Note redactions have been made to this document for the following reasons:

Reason for passing this resolution in relation to each matter

Particular interest(s) protected (where applicable)

Ground(s) under section 48(1) for the passing of this resolution

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

s7(2)(h) - The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.

s7(2)(i) - The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).

In particular, the report contains commercial matters currently being negotiated

s48(1)(a)

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

4. Note that, unlike an agenda report, staff will not be present to answer questions about the items referred to in this summary. Governing Body members should direct any questions to the authors.

Ngā tūtohunga

Recommendation/s

That the Revenue, Expenditure and Value Committee:

a) tuhi tīpkoa / note the confidential decisions and related information that is now publicly available:

i) Material Recovery Facility contract costs

ii) Supplier recommendations for Talent Acquisition Services

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇨	Material Recovery Facility contract costs - decision and report
b ⇨	Supplier recommendations for Talent Acquisition Services - decision and report

Ngā kaihaina

Signatories

Author	Phoebe Chiquet-Kaan - Governance Advisor
Authoriser	Ross Tucker - Group Chief Financial Officer

[1] The GSS Board is made up of the chief executives of the Auckland Council Group and an independent chair.

Chairperson	Cr Desley Simpson, JP
Deputy Chairperson	Cr Greg Sayers
Members	Cr Chris Darby	Cr Sharon Stewart, QSM
	Cr Julie Fairey	Houkura Chair David Taipari
	Houkura Member Tony Kake, MNZM	Cr Ken Turner
	Cr Kerrin Leoni	Cr Maurice Williamson
	Cr Daniel Newman, JP
Ex-officio	Mayor Wayne Brown

Purpose of the report

Executive summary

Context

Analysis and advice

Climate impact statement

Council group impacts and views

Local impacts and local board views

Local board views

Māori impact statement

Financial implications

Risks and mitigations

Next steps

Attachments

Signatories

Purpose of the report

Executive summary

Attachments

Signatories

Purpose of the report

Executive summary

Context

Analysis and advice

$5.9 million from non-rates revenue improvements

$11.7 million in operational cost savings

Group Shared Services

Pools & Leisure update

2024/2025 target achieved, enduring savings remain a key focus

Climate impact statement

Council group impacts and views

Local impacts and local board views

Māori impact statement

Financial implications

Risks and mitigations

Next steps

Attachments

Signatories

Purpose of the report

Executive summary

Purpose of the report

Executive summary

Attachments

Signatories

Purpose of the report

Executive summary

Attachments

Signatories

Purpose of the report

Executive summary

Attachments

Signatories

Purpose of the report

Executive summary

Attachments

Signatories

Exclusion of the Public: Local Government Official Information and Meetings Act 1987