PwC reports on Māori outcomes

The Finance and Performance Committee today received a report on the effectiveness of expenditure incurred on projects to deliver Māori outcomes in past years, as well a ‘forward thinking’ assessment of project initiation and management processes.

The report by PwC provides recommendations for a more effective strategic, collaborative approach for the council and council-controlled organisations to deliver optimum value for Māori in Tāmaki Makaurau.

The recommendations are based on a consideration of:

·

• the processes undertaken by the council when identifying, planning and approving projects as part of the council’s strategic planning and Māori Responsiveness Framework goals,

• stakeholder interviews discussing leadership, planning, budgeting and reporting of projects and activities to deliver Māori outcomes,

• documentation, and

• review of projects attributed to achieving Māori outcomes across four council-controlled organisations and Te Toa Takitini.

It was agreed that a response will be reported to the Finance and Performance Committee at its 27 February meeting with an implementation plan that addresses the recommendations in the report.

Below is a summary of the decisions made at the committee.

Items 1-4, 8 & 9 were administrative items.

Item 5: Public Input

Claudia Maran addressed the committee regarding the use of philanthropy in partnership with council projects in the Long Term Plan to deliver budgetary and community goals. The committee thanked Ms Maran for her presentation.

Item 6: Local Board input

Mr David Collings, Chair of the Howick Local Board, addressed the meeting regarding the proposed disposal of the car park at 80 Vincent Street, Howick.

The committee thanked Mr Collings, board member Jim Donald, and Mr John Savoury for their contributions.

Item 9: Value for Assessment of expenditure incurred by Auckland Council on projects to deliver Māori outcomes

The Finance and Performance Committee today received a report on the effectiveness of expenditure incurred on projects to deliver Māori outcomes, providing recommendations for a more effective strategic, collaborative approach for the council and council-controlled organisations to deliver optimum value for Māori in Tāmaki Makaurau. Many of the past projects had not been delivered, or had been delayed in the planning stages, meaning that outcomes had not been met.

It was agreed that a response will be reported to the Finance and Performance Committee at its 27 February meeting with an implementation plan that addresses the recommendations in the report.

Item 10: Te Toa Takitini – Quarter one report for 2017/2018 financial year

The committee received the first quarter report on the progress of Te Toa Takitini.

Te Toa Takitini was established to better enable the council group to identify, invest and track progress on transformational outcomes for Māori. The portfolio is divided up into four Whai (programmes of work).

Programmes and projects for the 2017/2018 financial year period have been approved by Te Toa Takitini executive leadership group. Programme conveners and business owners from across the council group have responsibility for delivery.

Combined expenditure for the first quarter was $1,160,000, or 13 per cent of the combined annual budget of $9,092,000 for the 2017/2018 financial year. Close monitoring of project activity is underway to ensure effective delivery occurs throughout the year to minimise the risk of underspend at year end.

The Finance and Performance Committee noted the progress of key Te Toa Takitini portfolio projects included in this report for the first quarter of 2017/2018.

Item 11: Disposals recommendation report

Panuku’s statement of intent requirement is to identify properties from within the council’s portfolio that may be suitable for potential sale to a combined value of $60 million and to sell $100 million of property by 30 June 2018.

Approval was sought to dispose of four council-owned properties that Panuku considers suitable for sale and the transfer to Housing New Zealand (HNZ) of council’s covenanted option to buy a privately-owned property in Mt Wellington when the owner wishes to sell:

• ·the reserve at 9 Matama Road, Glen Eden is a reserve subject to the Reserves Act 1977. It was reviewed following an enquiry from the adjoining landowner seeking to purchase the site.

• ·a privately owned unit at 58/7 Rowlands Avenue, Mt Wellington with a covenanted option for the council to purchase when the owner wishes to sell.

• ·properties at 41 Cheshire Street, Parnell and 108 Hepburn Street, Freemans Bay were reviewed and identified as potentially surplus to the council.

These were approved for divestment, subject to the council’s Stakeholder and Land Advisory Services team, Community Facilities to negotiate easements for pedestrian and cycling access to the Parnell Railway Station and adjoining cycleway.

The disposal of the off-street car park at 80 Vincent Street, Howick was not approved.

Item 12: proposed priorities for the 2017 letters of expectation to substantive council-controlled organisations

The committee approved the priorities for inclusion in the 2017 letters of expectations to substantive council-controlled organisations.

The Finance and Performance Committee:

a) noted that the 2017 letters of expectations will be drafted on the basis of this committee’s resolutions, consistent with the terms of reference for committees of the governing body;

b) noted that Mayor Goff will finalise – following consultation with the various committee chairs – and send the final 2017 letters of expectations to the substantive council-controlled organisations during December 2017;

c) approved the proposed priorities for inclusion in the 2017 letters of expectations for substantive council-controlled organisations;

d) advised on any other issues or key messages that should be included in the letters of expectations.

The letters will be drafted on the basis of the committee’s resolutions and sent by Mayor Goff to the chairs of each substantive council-controlled organisation.

Item 13: Annual shareholders’ meetings for substantive council-controlled organisations and Tamaki Redevelopment Company Limited

It was resolved to authorise the chief executive of Auckland Council to execute written resolutions in lieu of holding annual shareholder meetings of the substantive council-controlled organisations and Tāmaki Redevelopment Company Limited.

The Finance and Performance Committee approved to:

a) authorise the chief executive of Auckland Council to act as Auckland Council’s shareholder representative to execute written resolutions in lieu of holding annual shareholder meetings of the following companies:

i) Auckland Council Investments Limited

ii) Auckland Tourism, Events and Economic Development Limited

iii) Regional Facilities Auckland Limited

iv) Watercare Services Limited

v) Panuku Development Auckland Limited

b) authorise the chief executive of Auckland Council to act as Auckland Council’s shareholder representative for Tāmaki Redevelopment Company Limited to:

i) execute a written shareholder’s resolution on an annual basis in lieu of holding an annual shareholder meeting commencing with the 2016/2017 shareholder meeting

or

ii) vote on Auckland Council’s behalf at an Annual General Meeting of the company

or

iii) appoint a proxy to vote on behalf of Auckland Council.

Item b) would be clarified following consultation from the Crown.

Item 14: Budget Update December 2017

Additional operational expenditure budget to accelerate the asset data improvement work to support decisions from the Governance Framework Review was approved.

The Finance and Performance Committee approved to accelerate the current asset data improvement programme with additional resources to support decisions from the Governance Framework Review at a cost of $854,900 per annum in the next 12 to 18 months. Additional operational expenditure budget of up to $250,290 in 2017/2018 and up to $500,580 in 2018/2019 was approved.

Item 15: Land exchange at Hillary Crescent, Belmont and Northboro Reserve – recommendation from the Environment and Community Committee

The committee approved proposed land exchanges of 1802m² at Northboro Reserve, Belmont with 3510m² of private land at Hillary Crescent.

Item 16: Update on the purchase of additional trains for Metro Rail

The committee approved a request from Auckland Transport to increase in the number of Electric Multiple Units (EMUs) to be purchased from 15 to 17 at a capital cost of $18 million and to convert the 17 EMUs to Independently Powered Electric Multiple Units (IPEMUs) at a cost of up to $20 million.

The purchase would not only support the forthcoming Pukekohe electrification, but would also be able to be used in the future for the Kumeu/Helensville line, as the recommended EMUs were capable of going through the Waitakere tunnel.

As this was Dr David Warburton’s final appearance as CEO of Auckland Transport before the committee prior to his retirement, Dr Warburton was formally thanked by Mayor Goff and the council for his leadership, energy and commitment to Auckland Transport.

Item 17: Finance and Performance Committee – Information Report – 12 December 2017

The Finance and Performance Committee received the information report – 12 December 2017.

The agenda is available on Auckland Council’s website and minutes will be added once confirmed. This meeting was also webcast on the council’s website and items are available on demand.

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