Council CCOs’ Expectations Through Until 2019. How Will Panuku and Auckland Transport Perform

What to expect over the next three years

 

Every three years the Auckland Council – Council Controlled Organisations (CCO’s) are required by law to produce Statement of Intents to the main organisation which then gives their input before those SOI’s go operative. Statement of Intents set out the goals and directions of a CCO and through the Council’s Council Controlled Organisations Governance and Monitoring Committee the main body can influence CCO direction.

 

You can read the agenda concerning the CCO SOI’s HERE.

 

I am going to paste here the SOI comments from Council about Auckland Transport and Panuku Development Auckland.

 

For all CCOs:

Proposed shareholder comments applicable to all CCOs

  1. The following are the proposed shareholder comments that are applicable to all CCOs.

Aligning the final 2016-2019 SOI with the final 2016/2017 AP

  1. The final SOI must align to the decisions made as part of the council’s 2016/2017 AP and meet legislative requirements. This must ensure that:
  2. information contained in the final SOI is consistent with the 2016/2017AP
  3. financial information is provided for 2015/2016 (current) year, and the three subsequent years
  4. agreed non-strategic asset sale targets are included where appropriate
  5. performance measures and targets are worded exactly as in the LTP; and
  6. the SOI includes 2014/2015 actual performance, 2015/2016 (current year) targets and targets for the 2016-2019 years.
  7. Owing to legislative timeframes, the AP/LTP is developed at the same time as the SOI every year. Council and CCO staff must work to ensure that the legislative requirements are met and that all financial and non-financial information is well aligned between these documents as they are finalised.

Commitment to building a positive links between ratepayers and CCO activity

  1. Council expects that signage and other forms of communications for CCO activities and projects give recognition to the council and ratepayers. Co-branding principles and examples are clearly outlined in the Auckland Council Identity Guidelines (October 2013), the CCO logo guidelines (May 2013) and the Auckland Council Signage Manual v3.2 (September 2014). A commitment to proactive and meaningful engagement with the work of the Brand Navigation Group is required in the final SOI.

Te Reo framework

  1. Council is developing a Te Reo framework which will guide future council and CCO bilingual communication with the public.  CCOs should continue to work with council on this framework and make reference to it in their SOI.

Identification of Mataawaka and Mana whenua activities

  1. Because the council and its CCOs need to be responsive to both mataawaka and mana whenua, CCOs should make appropriate reference to each group in their final SOIs.

 

For Panuku

Proposed shareholder comments for Development Auckland Limited (Panuku)

  1. It is proposed that the following be included in the shareholder comments for Panuku on its draft SOI 2016-2019 (see Attachment C):
  2. The following matters, outlined in the LOE,  have not been included sufficiently in the SOI and require amendment:
  • a commitment to driving value for money through the use of shared services and commitment to working with council in the Alternative Financing Project
  • commitment to including a strategic perspective when undertaking rent reviews
  • discussion with council on any significant matters on the Housing for Older People portfolio
  • complying with the brand identity guidelines and proactively contributing to the work of the Brand Navigation Group including the expectations on signage.  Council also recommends a commitment to discussing any new brand developments with the council first.
  • integrated planning with local boards on place-making initiatives (although maybe this is implied on page 9).
  1. The overall discussion of plans and processes outlined in the draft SOI uses many different phrases (e.g. High level project plans, Masterplans, Framework Plans). The suite of planning processes need to be agreed with the council but must include a business case for the redevelopment of each of these locations.
  2. These processes will be led by Panuku, but must include the parts of the council group that will be involved and/or contribute resources to the redevelopment. Where these processes result in a need to reprioritise, recycle or secure new funding or assets this will need to be agreed by council through a business case.  Business cases must be approved via the normal LTP/AP processes.
  3. The business case must also contain analysis on financial and non-financial trade-offs described in the draft SOI and performance measures for the redevelopment programme.
  4. Council appreciates the leadership Panuku has outlined in the development of the methodology for making such trade-offs, and notes council management should be part of approving the overall methodology.
  5. In general, Panuku has produced a draft SOI that makes commitment to Māori responsiveness which is commended. Since Panuku will often create or renew public spaces, the final SOI should articulate, how it will incorporate Māori identity and Te Aranga design principles in these projects.
  6. In the establishment SOI, Panuku referred to developing a framework for working with the individual local boards in ‘Transform’ and ‘Unlock’ locations. Council understood this to be in addition to or an enhancement of a local board engagement plan required by the CCO Governance Manual. This scale of redevelopment is likely to intersect with local board decision-making (local place-shaping and strategic visioning) and requires a greater level of engagement with a local board than would otherwise be expected. Council appreciates the good work currently underway in this matter.

 

 

For Auckland Transport

Proposed shareholder comments for Auckland Transport (AT)

  1. It is proposed that the following requests be included in the shareholder comments for Auckland Transport on its draft SOI 2016-2019 (see Attachment E):
  2. The following matters, outlined in the LOE,  have not been included sufficiently in the SOI and require amendment:
  • Auckland Transport states that it is currently reviewing the CCO Governance Manual.  It should confirm its ability to comply with the CCO Governance Manual in the final SOI, especially the expectations on co-branding and signage (acknowledgement of ratepayer contribution)
  • quarterly (rather than annual) reporting of progress against the Accelerated Transport Programme
  • a commitment to driving value for money through the use of shared services and commitment to working with the council in the Alternative Financing Project.
  1. In addition to proactively working with the council on shared services, commitment should be made in the SOI to working with other parts of the council group to improve the integration of maintenance activities especially with regard to green spaces, footpaths and lighting in the public realm – including the road reserve, parks and reserves.
  2. The recommendations of the value for money review should also be incorporated into the final SOI if timing permits.
  3. On 14 April 2015, the Council Controlled Organisations Governance and Monitoring Committee resolved that all CCOs including AT, must develop a service performance measure for their engagement with mana whenua in consultation with the Independent Māori Statutory Board (IMSB) (Resolution COU/2015/27). No such measure has been included in this draft SOI, therefore the council requires that this measure is included in the final 2016-2019 SOI.
  4. We recommend a number of other improvements to the draft SOI to reflect the investment outlined in the LTP, namely:
  • enabling council to ensure that the investment in rail electrification leads to increases in rail efficiencies. It is recommended that AT provides separate rail boarding targets (from overall public transport boardings) so that the council can continue to monitor the progress of rail patronage
  • a description of the programme of initiatives AT has to improve train travel times
  • an increase the cycling target for 2017/2018. Through the Accelerated Transport Programme, the council has provided an additional $110 million for walking and cycling. ‘Stretch’ targets for this activity will require AT to focus resources and try new initiatives
  • continuation of monitoring of cycling trips outside of the city centre to facilitate the equitable distribution of cycling funding and resources
  • visibility of the freight network in the SOI. There are 10 performance measures that relate to the freight network in the SOI (page 20).  The link back to strategic outcomes is described as “build network optimisation and resilience”.  The use of technical language such as this in the draft SOI makes it difficult for the average reader or stakeholder group (e.g. freight operators) to monitor investment in the freight network.  Additional explanatory text in this part of the SOI is recommended
  • local board member satisfaction performance measures and targets are included in the draft SOI which the council commends. However the targets set are those that were achieved from the 2014 elected member survey (43 per cent for satisfaction with reporting and 55 per cent for consultation). Local Board Services and AT staff should work together to agree a more appropriate satisfaction target, sharing ideas on making the best use of the considerable resource AT have applied to working with local boards.
  1. Finally, as transport projects often create or renew public spaces, AT should articulate in the final SOI, how it will incorporate Māori identity and Te Aranga design principles in its projects.

………

Source: http://infocouncil.aucklandcouncil.govt.nz/Open/2016/03/COU_20160329_AGN_6433_AT_WEB.HTM

 

The Draft SOI’s can be read below:

 

While Panuku has been told about expectations maintaining engagement with Local Boards and the communities Auckland Transport has been told off through the Council comments about its poor satisfaction grades with information and consultation.

Auckland Transport also have quite a few more please explains to be put into its SOI’s while Panuku has some good challenging targets ahead.

 

All in all some solid comments from the Governing Body for the CCO’s to lift their game (especially Auckland Transport)!

 

Mt Eden Source: https://en.wikipedia.org/wiki/Maungawhau
Mt Eden
Source: https://en.wikipedia.org/wiki/Maungawhau

 

 

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