13.3 CCO Accountability Policy

Transcription

1 13.3 CCO Accuntability Plicy Intrductin The Auckland Cuncil is the sle wner f seven substantive cuncil-cntrlled rganisatins (CCOs) wh perfrm a vital rle in helping the cuncil t achieve its strategic gals fr the regin. These CCOs als deliver a wide range f services t residents and visitrs n behalf f the cuncil, and make a significant cntributin t cmmunity wellbeing. The cuncil has a cllabrative and cperative relatinship with its CCOs, and views its CCOs as partners in the delivery f the cuncil s bjectives and pririties fr Auckland. Sectin 90(1) f the Lcal Gvernment (Auckland Cuncil) Act 2009 (the 2009 Act) requires Auckland Cuncil t adpt a plicy n the accuntability f its substantive cuncil-cntrlled rganisatins (CCOs). Sectin 90(2) requires the accuntability plicy t: a) Include a statement f the cuncil s expectatins in respect f each CCO s cntributins t, and alignment with, the cuncil s bjectives and pririties; b) Include a statement f the cuncil s expectatins in respect f each substantive CCO s cntributins t, and alignment with, any relevant bjectives f central gvernment; c) Specify any reprting requirements that each substantive CCO must undertake in additin t thse required under the Lcal Gvernment Act (LGA) 2002 r the 2009 Act; d) Specify any planning requirements that each substantive CCO must undertake in additin t thse required under the LGA 2002 r the 2009 Act; and e) Identify r define any strategic assets in relatin t each substantive CCO and set ut any requirements in relatin t the rganisatin s management f thse assets, including the prcess by which the rganisatin may apprve majr transactins in relatin t them. This plicy has been prepared in respnse t that legislative requirement. Sectin 91 f the 2009 Act further authrises the cuncil t require a substantive CCO t carry ut certain actins. This plicy als recrds the requirements the cuncil has decided n under this sectin. The cuncil recgnises that a successful partnership between the cuncil and its CCOs will require a cmmitment t cllabrative relatinships based n a shared visin, rather than slely n adherence t a set f rules. Hwever, the accuntability framewrk prvides safeguards, and ensures that a similar level f scrutiny is applied t all cuncil peratins invlving the use f public funds and the management f public assets regardless f whether directly cntrlled by the cuncil r via a CCO. Establishing this framewrk enables the cuncil t achieve the right balance between enabling the CCOs t perate independently, while ensuring that they deliver in line with the expectatins f the cuncil. Auckland Cuncil s expectatins in respect f CCOs cntributin t, and alignment with, cuncil bjectives and relevant bjectives f central gvernment (sectin 90 (2)(a) and sectin 90(2)(b)) The cuncil s visin is fr Auckland t be the wrld s mst liveable city. The CCOs have a key rle t play in this visin. The cuncil expects CCOs t cntribute t achieving the fllwing utcmes frm the Auckland Plan: A fair, safe and healthy Auckland A green Auckland An Auckland f prsperity and pprtunity A well cnnected and accessible Auckland A beautiful Auckland that is lved by its peple A culturally rich and creative Auckland A Mari identity that is Auckland s pint f difference in the wrld. The table belw utlines in mre detail hw the cuncil expects each CCO t cntribute t, and align with, the cuncil bjectives and pririties.

2 Cuncil-cntrlled rganisatin Auckland Cuncil Investments Limited Cuncil s expectatins ACIL is t prvide a strng cmmercial and strategic fcus t the wnership and gvernance f the cuncil s majr investment assets, and prvide an efficient structure fr the wnership f thse assets. ACIL s rle is t maximise the cntributin f thse assets t the Auckland ecnmy and prvide substantial financial returns, which are financially sustainable in the lng term, t the cuncil. ACIL is t act cnsistently with the Auckland Plan and assciated Develpment Strategy, thrugh the sustainable management f its assets and apprpriate investment in its assets t assist in the ecnmic, scial, cultural and envirnmental aspiratins f Auckland Cuncil. ACIL is t encurage POAL t be a gd neighbur, supprting the Auckland Waterfrnt becming a key destinatin and events venue fr businesses, residents and visitrs, and in particular ACIL shall give guidance t POAL in the management f its bundary issues assciated with the brader develpment aspiratins assciated with Waterfrnt Auckland and the Waterfrnt Develpment Master Plan ACIL is t cntribute t the fllwing pririties frm the Auckland Plan: Develping an ecnmy that delivers pprtunity and prsperity fr all Aucklanders and New Zealand. Planning, delivering and maintaining quality infrastructure t make Auckland liveable and resilient. Māri scial and ecnmic well-being are cuncil pririties. T help achieve this, ACIL is Auckland Turism, Events and Ecnmic Develpment Limited ATEED is t cntribute t the fllwing pririties frm the Auckland Plan and the Auckland Cuncil Ecnmic Develpment Strategy: Develping an Innvatin Hub f the Asia-Pacific Regin An Internatinally Cnnected and Exprt Driven City Develping A Business Friendly and Well-Functining City Investing in Peple t Grw Skills and Lcal Wrkfrce Creating A Vibrant, Creative Wrld City. Prmting Auckland s Mari identity as Auckland s pint f difference in the wrld and lifting Mari scial and ecnmic well-being are cuncil pririties. ATEED is expected t cntribute t these gals thrugh develping new ecnmic pprtunities with Mari business interests. ATEED is als expected t supprt the cuncil s respnsiveness and cntributin t Māri wellbeing and ATEED is t help supprt and enhance the perfrmance f the Auckland regin as a grwth engine in the New Zealand ecnmy. ATEED is t recgnise Gvernment as a strategic partner and align with plicy and funding fr ecnmic develpment, events, and turism that is targeted at the reginal level. Auckland Cuncil Prperty Limited ACPL is t prvide an apprpriate return n cmmercial prperty and activities under ACPL's management and t cntribute a cmmercial perspective t all cuncil planning initiatives. ACPL is t ensure the efficient and strategic use f capital by the cuncil in respect f prperty activities in which ACPL is invlved. ACPL shall assist Auckland Cuncil in the delivery f the Auckland Plan, the Plan s Develpment Strategy, and the cuncil s cmpact city apprach by prviding advice n specific key lcatins and assciated implementatin mechanisms. ACPL prperty develpment activities are t be cnsistent with the Auckland Plan, and the Plan s Develpment Strategy. ACPL shuld have particular regard t the assistance ACPL can prvide in develping high quality, well-functining twn centres, grwth crridrs, and develpment areas.

3 Cuncil-cntrlled rganisatin Reginal Facilities Cuncil s expectatins Māri scial and ecnmic well-being are cuncil pririties. T help achieve this, ACPL is RFA shall assist Auckland Cuncil in the delivery f the Auckland Plan and its Develpment Strategy with the equitable prvisin f cultural, heritage and lifestyle pprtunities in the everyday lives f Auckland s residents and visitrs. This shall be facilitated thrugh RFA s management f assets and the funding decisins made by RFA t supprt cultural and scial activities. RFA is t take a reginal perspective t the prvisin f scial and cmmunity infrastructure. RFA is t recgnise Gvernment as a strategic partner and align with plicy and funding fr arts, culture, heritage and cultural institutins that is targeted at the reginal level. Māri scial and ecnmic well-being are cuncil pririties. T help achieve this, RFA is Auckland Waterfrnt Develpment Agency Waterfrnt Auckland shall lead the delivery f the revitalisatin f the waterfrnt as a key destinatin and events venue fr businesses, residents and visitrs; and t assist Auckland Cuncil in uniting the Waterfrnt with the City Centre. These actins will assist in the develpment f Central Auckland as a creative and vibrant wrld city. In the delivery f the waterfrnt s revitalisatin and the cnnectin f the Waterfrnt t the City Centre, Waterfrnt Auckland shall have regard t the Auckland Plan and assciated Develpment Strategy including: The integratin f arts, culture, heritage, and lifestyle int the everyday lives f Auckland s residents and visitrs. The prtectin f Auckland s high value castline, harburs and marine areas. Building resilience t natural hazards. The prvisin f cmmunity infrastructure including public pen space and marinas, fr present and future generatins. Integrating transprt planning and investment with land use develpment with a particular emphasis n pedestrians and passenger transprt. Ensuring gd design in all develpment. Waterfrnt Auckland is t act in a cmmercial way t achieve develpment Māri scial and ecnmic well-being are cuncil pririties. T help achieve this, Waterfrnt Auckland is expected t supprt the cuncil s respnsiveness and cntributin t Māri wellbeing and Auckland Transprt Auckland Transprt is t cntribute t an efficient, sustainable, energy saving and cst effective land transprt system t supprt Auckland s scial, ecnmic, envirnmental and cultural wellbeing. Auckland Transprt is t create better cnnectins and accessibility within Auckland by: Managing Auckland s transprt as a single system Integrating transprt planning with land use develpment Priritising and ptimising investment acrss transprt mdes Implementing new transprt funding mechanisms. Auckland Transprt is t deliver infrastructure and services t supprt a transfrmatinal shift twards greater use f passenger transprt. Auckland Transprt shuld have regard t: Building resilience t natural hazards. Auckland Plan urban design principles. Realising a quality cmpact city. Māri scial and ecnmic well-being are cuncil pririties. T help achieve this, Auckland Transprt is expected t supprt the cuncil s respnsiveness and cntributin t Māri wellbeing and

4 Cuncil-cntrlled rganisatin Watercare Cuncil s expectatins Watercare is t deliver utstanding and affrdable water services fr the peple f Auckland, nw and in the future. Watercare is t manage water resurces and waste water systems t cntribute t: Building resilience t natural hazards. Realising a cmpact city. Water, wastewater and strmwater ptimise, integrate and align use with water service prvisin and planning. Treasuring ur castline, harburs, islands and marine areas Sustainably managing natural resurces Supprting rural settlements, living and cmmunities Imprving the educatin, health and safety f Aucklanders Grwing a business friendly and well-functining city Enabling tangata whenua t participate in the c-management f natural resurces Creating a sustainable balance between envirnmental actin, rural prductin and activities linked t the rural envirnment Tackling climate change and increasing energy resilience. Māri scial and ecnmic well-being are cuncil pririties. T help achieve this, Watercare is In accrdance with sectin 91(1)(a) f the 2009 Act, each CCO must als include in its SOI a narrative f hw it will cntribute t the Gvernment and the cuncil bjectives and pririties specified in this accuntability plicy. CCOs must act cnsistently with and cntribute t plicies, plans and strategies f the cuncil. The cuncil may ntify a CCO in writing at any time 1 f the relevant aspects f any cuncil plan r strategy (including a lcal bard plan) nt specified in this accuntability plicy. Under sectin 92(2), the CCO must act cnsistently with any such plan r strategy. Reprting requirements (sectin 90(2) c)) The LGA requires CCOs t prvide half-yearly and annual reprts n their peratins t the cuncil. The halfyearly reprt must be delivered within tw mnths after the end f the perid. The Annual Reprt must be delivered t the cuncil n later than three mnths after the end f the financial year, and must be publicly available n the CCO s website, with a hard cpy available t any member f the public upn request. In additin t these legislative requirements, the cuncil requires all CCOs t reprt their perfrmance quarterly t the cuncil. Unaudited quarterly reprts will be required by the date utlined by cuncil. Each CCO s SOI sets ut requirements fr the cntents f quarterly reprts. All CCOs must reprt their perfrmance against their SOI. The Annual Reprt must als cmpare the CCO s perfrmance with its SOI, and prvide an explanatin if SOI perfrmance requirements have nt been met. The chair and chief executive f each CCO are expected t appear befre the relevant cuncil cmmittee when it meets t cnsider the CCOs perfrmance reprting. Each CCO bard is required t appear befre the relevant cmmittee when the cmmittee cnsiders its annual reprt and/r furth quarter reprt, as advised t each CCO by the cuncil annually. Planning requirements (sectin 90(2)(d)) All CCOs are required t prvide asset management plans, activity plans and supprting financial infrmatin as inputs t the cuncil s LTP and Annual Plan in accrdance with the timeframes and ther requirements specified by the cuncil. CCOs are required t: Fllw the cuncil s asset management framewrk, r btain cuncil apprval fr an alternative framewrk. 1 Including, but nt limited t as part f the annual letter f sharehlder expectatins t each CCO.

5 Use accunting standards that are cnsistent with the cuncil s standards. Fllw any ther requirements specified by the cuncil and ntified t CCOs. Develp a Mari Respnsiveness Plan. Strategic Assets (sectin 90(2)(e)) Under sectin 90(2)(e) f the 2009 Act, the cuncil s accuntability plicy must identify r define strategic assets in relatin t each CCO and set ut any requirements in relatin t the rganisatin s management f thse assets, including the prcess by which the rganisatin may apprve majr transactins in relatin t them. Definitin and identificatin f strategic assets Strategic assets are defined in sectin 5 f the LGA as being assets that a lcal authrity needs t retain if the lcal authrity is t maintain its capacity t achieve r prmte any utcme that it determines t be imprtant t the current r future well-being f the cmmunity. This includes: a. any asset r grup f assets listed in the lcal authrity s Significance and Engagement Plicy; and b. any land r building wned by the lcal authrity and required t maintain the lcal authrity's capacity t prvide affrdable husing as part f its scial plicy; and c. any equity securities held by the lcal authrity in i. a prt cmpany; ii. an airprt cmpany. The strategic assets wned and/r managed by the cuncil s CCOs are: Any scheduled heritage buildings r structures and the fllwing assets: Cuncil-cntrlled rganisatin Auckland Cuncil Investments Limited Auckland Turism, Events and Ecnmic Develpment Limited Auckland Transprt Auckland Waterfrnt Develpment Agency Reginal Facilities Auckland Strategic assets wned and managed Strategic assets wned by the by the CCO Cuncil and managed by the CCO 100% sharehlding in Prts f Auckland Limited shares held in Auckland Internatinal Airprt Limited freehld interests in waterfrnt land held by Prts f Auckland Limited public transprt netwrk including Britmart freehld interests in waterfrnt land Auckland Art Gallery (including the arts cllectins wned by Reginal Facilities Auckland) Auckland Z Atea Centre Civic Theatre Viaduct Events Centre Mt Smart The cuncil s cntractual rights and interest in Auckland City Arena (knwn as Vectr Arena) rading netwrk Auckland Cuncil Prperty Limited Watercare Services Limited wastewater netwrk water netwrk

6 Requirements in relatin t CCO s management f strategic assets CCOs must manage strategic assets (including thse wned by the cuncil but under the cntrl f the CCO) in rder t maximise their lng-term benefit t Auckland. In additin, the management f strategic assets by a CCO must be undertaken in a manner that enables the CCO t meet its SOI bjectives. Auckland City Investments Limited (ACIL) must als cmply with and take all reasnable steps t prmte the cuncil s Auckland Airprt Sharehlding Plicy. In particular, ACIL must nt make any decisins that are incnsistent with that plicy. ACIL must btain the apprval f the cuncil prir t making any decisins n matters cvered by Sectin 3.4 (rights and securities issues) r Sectin 3.5 (takever ffers, mergers and capital restructuring) f that plicy. Prcess fr apprval f majr transactins in relatin t strategic assets Fr the purpses f this accuntability plicy, a majr transactin is: any acquisitin, dispsal r replacement f a strategic asset; any transactin r dealing in relatin t a strategic asset: affecting the asset s cntrl (whether directly r indirectly); reducing r materially affecting the asset s value; granting any legal interest in the asset t a third party; affecting the CCO s r cuncil s wnership f the asset; r any lng-term cntracts fr the develpment r peratin f a strategic asset (being a cntract binding the CCO t a term exceeding fifteen (15) years, including any renewals at the cntractr s ptin); any ther transactin, dealing r decisin affecting cuncil s lng-term interest in the strategic asset and assciated service delivery t Aucklanders. In relatin t netwrk infrastructure, the freging relate t any part f a netwrk which part is integral t the functining f the netwrk as a whle. A lease granted by a CCO n r fr land that is a strategic asset is nt a majr transactin if the lease: (a) is granted in the rdinary curse f the CCO s business n arms-length terms; and (b) des nt exceed fifteen (15) years in duratin (including any renewals at the lessee s ptin); and (c) des nt exceed $500,000 in rent per annum. Examples f majr transactins include, but are nt limited t: A transactin that wuld result in ACIL s sharehlding in Auckland Internatinal Airprt Limited being either reduced r increased; The sale f any part f Britmart r the transprt peratins undertaken therein; and The sale f infrastructure critical t the Watercare netwrk such as the sale f the Army Bay wastewater plant. CCOs may nt undertake a majr transactin in relatin t strategic assets unless apprved by the cuncil r already prvided fr the in the LTP. Certain transactins will require that they are prvided fr in the LTP. In circumstances where a CCO is cnsidering engaging with the cuncil in regard t a majr transactin, the CCO shuld cntact the cuncil s CCO Gvernance and Mnitring Unit in the first instance.