budget book - regulatory services · • digital integration of the hybris customer portal to the...

Regulatory ServicesBackground Regulatory Services perform consenting and inspectionservices for building consents, resource consents, foodand alcohol licences to enable the successfuldevelopment of Auckland. They manage the city’sbylaws, dog control, noise control, provide propertyinformation and enforce compliance for non compliantdevelopment. They utilise their scale ensuring servicesare delivered in a customer focussed and cost-effectivemanner.

How operating expenditure is funded

Auckland Council Budget Book 20183rd Edition

ServicesN

et o

pex

FY19

Building consents (41,569)Licensing and regulatory compliance 7,301 Regulatory engineering (1,489)Regulatory services management 1,536 Resource consents (82)Service strategy and integration 3,889

Comments

0%Rates:

Other including fees and charges: 100%

$ 000 FY17

Actual

FY18

Actual

FY19

Budget

FY20

Budget

FY21

BudgetOperating revenue 176,550 187,907 190,462 194,140 198,023 Operating expenditure 156,483 155,006 160,048 162,687 165,791 Net operating expenditure (20,067) (32,901) (30,414) (31,453) (32,232)Capital revenue - - - - -Capital expenditure 897 523 230 213 220 Net capital expenditure 897 523 230 213 220

6%Operating expenditure 2018/2019

RegulatoryServices

Group

0%Capital expenditure 2018/2019

RegulatoryServices

Group

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N/a

Regulatory Services

Auckland Council Budget Book 20183rd Edition

Key areas of capex spend ($m) FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 10-year

total

Depots and animal shelter renewals

0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.2 0.2 0.2 1.3

Replace regulatory equipment 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 1.0

Total Regulatory capex 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.3 0.3 0.3 2.3

Prior LTP comparison

10-yeartotal

LTP 2015-2025 $2m

LTP 2018-2028 $2m

Capital investment trend

0.0m

0.1m

0.2m

0.3m

0.4m

0.5m

0.6m

0.7m

0.8m

0.9m

1.0m

Budget

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Regulatory Services Building Consents

Auckland Council Budget Book 2018 3rd Edition

Building Consents

What is delivered? Building Consents services ensure Aucklanders live and work in safe buildings. This is achieved by:

• Building consents: processing and issue of consent applications in accordance with the Building Act andBuilding Code s review of re-cladding and durability-based applications.

• Inspections: inspect building construction through key stages of the construction phase; inspect and reviewbuildings with weather tightness and durability issues; issue code compliance certificate (CCC) once thefinal inspection is passed and construction is assessed as being compliant with the consented plans,swimming pool inspections; building warrant of fitness compliance; review earthquake-resistance of relevantbuildings.

• Property information: provide land information memorandum (LIM) reports; property file information tomembers of the public; information regarding notable trees; preparation of various property informationproducts; issue of maps; reports and certificates; support to the public on legislative/consentingrequirements.

How is it measured? Actual

2016/17 Actual

2017/18 Target

2018/19 Target

2019-28 (pa)

The percentage of customers satisfied with the overall quality of building consent service delivery

55.08% 50% 100% 100%

The percentage of building consent applications processed within 20 statutory working days

80% 52% 100% 100%

The percentage of building consent applications processed within 10 working days

Not avail New 20% 20%

How much does it cost?

Income and expenditure: $000 FY17 FY18 FY19 FY20 FY21

Actual Actual Budget Budget Budget Fees and user charges 89,157 89,037 99,944 101,943 103,982 Other revenue 240 647 - - - Total operating revenue 89,397 89,684 99,944 101,943 103,982 Staff costs 45,310 45,047 48,310 49,231 50,219 Grants, contributions and sponsorship - - - - - Outsourced works and services 12,503 8,753 8,182 8,198 8,362 Consultancy and professional services 8 68 - - - Repairs and maintenance 19 3 12 13 13 Other expenditure 2,506 1,542 1,871 1,910 1,948 Total operating expenditure 60,346 55,413 58,375 59,352 60,542

Capital revenue - - - - - Capital expenditure - - - - -

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Regulatory Services Building Consents


Who pays? Operating costs are funded from fees and charges.

Where are budget decisions made? Governing Body: Budgets including fees and charges are agreed as part of the LTP and Annual Plan process. Changes to budgets and new funding are approved by the Governing Body or appropriate Committee.

Local Boards: N/A

Management: Decisions regarding allocation of funding within the budget envelope are made at a management level.

Comments The building boom in Auckland has resulted in a year-on-year growth of 8% for residential dwellings and 11% growth for commercial consents in the last year. Improvement projects underway include Consenting Made Easy, digital consent processing enhancements and the inspection scheduling implementation

What are your key projects/programmes? • A comprehensive programme of initiatives to increase service capacity across all services• Booking and Scheduling tool: digital self-service tool that will make it easy to book inspections and increase

the capacity of the inspectors through efficient job allocation• Digital integration of the Hybris customer portal to the SAP consenting system• Enhancing the SAP consenting processes and reporting capabilities• Developing efficient competency programme to create development pathways for support staff.

What is the focus for the next 3 years? • Delivering a digital end-to-end service for building services• Further partnering with industry to improve knowledge, the quality of consent applications and constructed

works• Developing and maintaining a more robust recruitment pipeline• Reducing cost to serve.

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Regulatory Services Licensing and Regulatory Compliance


Licensing and Regulatory Compliance Services

What is delivered? Licensing & Regulatory Compliance contributes to a fair, safe and healthy Auckland. The department is responsible for ensuring compliance across building consents, resource management matters, environmental health, animal management, alcohol licensing, and general council bylaws. Our activities are undertaken in close association with central government regulatory agencies including the NZ Police. Key deliverables are:

• Alcohol licensing: inspectors work to ensure that the sale, supply and consumption of alcohol is undertakensafely and responsibly, and the harm caused by excessive or inappropriate consumption of alcohol isminimised. The team also manage outdoor dining licensing and street trading activities.

• Animal management is the largest of its type in the Southern Hemisphere covering field operations andshelter services for the entire region. Animal Management registered 102,954 dogs in 2017/18. The teamreceived 28,905 requests for service over the year; 14,787 required a priority one response. The council’sanimal shelters impounded 7,457 dogs across the year, a 12% reduction from last year. For the third year ina row, the team found new homes for 100% of dogs that were suitable for adoption. A total of 479 dogs werere-homed across the year.

• Regulatory Compliance: operates under a number of significant statutes, including the ResourceManagement Act 1991, Building Act 2004 and Local Government Act 2002, regulations and bylaws. Thevolume of compliance activities is significant, with over 120,000 requests for service received by AucklandCouncil. Demand for compliance services is increasing. Volumes increased between 8 to 25% in the yearending December 2016, with resource management breaches and noise complaints experiencing significantincreases. The approach to compliance has been recently strengthened so that our interventions areinformed by risks to public safety and health, risks to the environment, and risks to building infrastructure.

• Environmental health: environmental health officers work with food service business to ensure thepreparation and provision of food is done so safely to minimise harm to public health. Over 10,000businesses are verified or audited under current statutes and regulations. Food safety officers workalongside their environmental health colleagues to ensure that breaches are addressed quickly and whereappropriate, enforcement action is taken.


2016/17 Actual

2017/18 Target

2018/19 Target

2019-28 (pa)

The percentage of licensees satisfied with the alcohol licensing service 83% 85% 67% 85%

Percentage of customers satisfied with the food and hygiene licensing service (M169) (LTP)

82% 80% 70% 80%

The percentage of food premises that improve from a D or E grade to an A, B or C grade when revisited


The percentage of off-licence premises that pass a Controlled Purchase Operation targeting underage drinkers


The percentage of cases of non-compliance for menacing dogs that reach compliance within 3 months


Percentage of complainants satisfied with noise control services (LTP) 59.40% 54% 51% 60%

The percentage of verified noise complaints issued with a formal notice Not avail New 90% 99%

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How much does it cost?

Income and expenditure: $000 FY17 FY18 FY19 FY20 FY21

Actual Actual Budget Budget Budget Fees and user charges 23,973 31,412 30,043 30,644 31,257

Other revenue 317 1,005 129 - -

Total operating revenue 24,290 32,417 30,172 30,644 31,257 Staff costs 21,579 26,581 31,266 31,846 32,483

Grants, contributions and sponsorship - - - - - Outsourced works and services 2,765 4,493 4,504 4,461 4,549

Consultancy and professional services 498 400 161 315 168

Repairs and maintenance 11 422 12 13 13 Other expenditure 1,909 1,952 1,530 1,559 1,591

Total operating expenditure 26,762 33,848 37,473 38,194 38,804

Capital revenue - - - - - Capital expenditure 897 523 230 213 220

Who pays? Operating costs are primarily funded from fees and charges, with a proportion of general rates funding for Animal Management and compliance for consenting and bylaw activities.

Capital costs are funded from a mixture of borrowings and general rates.

Where are budget decisions made? Governing Body: Budgets including fees and charges are agreed as part of the LTP and Annual Plan process. Changes to budgets and new funding are approved by the Governing Body or appropriate Committee.

Local Boards: N/A


Comments Licencing & Regulatory Compliance Services positively connects with a large number of Aucklanders, from dog owners, business owners and the public generally. Population growth, housing intensification, higher visitor numbers and new legislation present challenges.

What are your key projects/programmes? • Implementation of the Customer Enable Compliance programme; embedding the structural changes with a

complementary prioritised, risk-based approach to compliance. This enables us to respond quickly andeffectively to non-compliance where the greatest impact on public health and safety and environmentalvalues is evident.

• Implementing new statutory requirements: 1) the Food Act 2014 and managing the transition of businessesto the new statutory regime through to 2019; 2) the Local Alcohol Policy.

• Implementation of digital initiatives that improve the customer experience, enable greater efficiency andlessens our cost to serve.

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What is the focus for the next 3 years? • Putting the customer at the forefront by becoming increasingly easier to do business with and making

compliance as simple as possible.• Working smarter to free up resources to manage the growth in demand for licensing products and

compliance services• Making Auckland a fairer, safer and healthier city by lifting compliance rates and dealing with potential harms

and risks before that eventuates• Supporting staff to be the best regulatory practitioners equipped with the skill, knowledge and tools for

success.

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Regulatory Services Regulatory Engineering


Regulatory engineering

What is delivered? Regulatory engineering works closely with council asset owners like Auckland Transport, Watercare Services and parks. We support the development and structural engineering needs of our building and resource consenting teams to ensure efficient land development, intensification and housing production in line with the Resource Management Act, Building Act, Local Government Act and council’s infrastructure standards. We also oversee processing and issuing of engineering plan approvals, resource and building consents specialist engineering input, vesting of infrastructure assets and specialist engineering support for regulatory compliance teams.

How is it measured? N/A

How much does it cost? Income and expenditure:

$000 FY17 FY18 FY19 FY20 FY21 Actual Actual Budget Budget Budget

Fees and user charges - 14,670 18,886 19,264 19,649 Other revenue - 374 - - - Total operating revenue - 15,044 18,886 19,264 19,649 Staff costs - 6,225 10,128 10,328 10,532 Grants, contributions and sponsorship - - - - - Outsourced works and services - 5,623 7,122 7,267 7,415 Consultancy and professional services - 5 - - - Repairs and maintenance - - - - - Other expenditure - 39 147 150 153 Total operating expenditure - 11,892 17,397 17,745 18,100


Who pays? Operating costs are mainly funded from fees and charges.

Where are budget decisions made? Governing Body: Budgets, including fees and charges, are agreed as part of the LTP and Annual Plan process. Changes to budgets and new funding are approved by the Governing Body or appropriate Committee.

Local Boards: N/A


63

Regulatory Services Regulatory engineering


Comments Regulatory Engineering provides expert engineering input for resource and building consents, engineering plan approvals and the vesting of assets.

What are your key projects/programmes? • Developing systems and processes that allow us to scale up to meet forecast demand for development• Operational excellence; increasing and maintaining recoverable time rates.

What is the focus for the next 3 years? • Capability and capacity improvement of our teams (training, standards and mentoring)• Digital engineering: bring digital into our assessment process so that we can scale up and better share data

across the region• Outsourcing (sub-contractor) management to ensure a high standard of work and appropriate charges for

customers.

64

Regulatory Services Resource Consents


Resource Consents

What is delivered? Resource Consents ensure that development across Auckland is conducted in an appropriate and sustainable manner. This includes:

• processing resource consents• providing planning information to the community• providing specialist input on natural resource matters


2016/17 Actual

2017/18 Target

2018/19 Target

2019-28 (pa)

Percentage of notified resource consent applications processed within statutory timeframe

45% 51% 100% 100%

Percentage of non-notified resource consent applications processed within 20 working days (LTP)

77.08% 67% 100% 100%

The percentage of non-notified resource consent applications processed within 10 working days Not avail New 20% 25-30%

Percentage of customers satisfied with the overall quality of resource consents service delivery (LTP)

58% 49% 55% 60-65%



Fees and user charges 62,404 46,926 41,460 42,289 43,135 Other revenue 459 3,835 - - - Total operating revenue 62,863 50,761 41,460 42,289 43,135 Staff costs 43,232 29,946 31,264 31,891 32,545 Grants, contributions and sponsorship - - - - - Outsourced works and services 20,674 18,835 9,631 9,825 10,023 Consultancy and professional services 1,204 901 797 797 797 Repairs and maintenance 2 41 20 21 21 Other expenditure 1,014 (641) (334) (342) (349) Total operating expenditure 66,126 49,082 41,378 42,192 43,037


Who pays? Operating costs are funded from fees and charges.

65

Regulatory Services Resource Consents


Where are budget decisions made? Governing Body: Budgets, including fees and charges, are agreed as part of the LTP and Annual Plan process. Changes to budgets and new funding are approved by the Governing Body or appropriate Committee.

Local Boards: N/A


Comments Resource Consents plays a key role to customers who are planning property development or natural resource use across the Auckland region. The impact of regulatory functions highlights the importance of ensuring resource consents are responsive to the growth and development of the Auckland region.

What are your key projects/programmes? • Continue the digital innovations to improve customer experience and process timeliness• Managing outsourcing activity to ensure improved performance standards and making sure we utilise our

size and scale• Embed the Premium and Streamline service models.

What is the focus for the next 3 years? • Manage expected increases in construction demand over the next 3-5 years• To reduce the cost to serve through efficient and effective processes and practices• Developing stronger relationships with key government and industry stakeholders.

66

Regulatory Services Service Strategy & Integration


Service Strategy & Integration

What is delivered? This department is focused on customer service improvements, operational performance, continuous improvement, quality assurance and practice and training for the Regulatory Services directorate.

How is it measured? N/A



Fees and user charges - 1 - - - Other revenue - - - - - Total operating revenue - 1 - - - Staff costs - 2,893 3,532 3,376 3,443 Grants, contributions and sponsorship - - - - - Outsourced works and services - 56 38 - - Consultancy and professional services - 5 - - - Repairs and maintenance - - - - - Other expenditure - 105 319 324 331 Total operating expenditure - 3,059 3,889 3,700 3,774


Who pays? Operating costs are funded from Regulatory Services fees and charges.

Where are budget decisions made? Governing Body: Budgets are agreed as part of the LTP and Annual Plan process. Changes to budgets and new funding are approved by the Governing Body or appropriate Committee.

Local Boards: N/A


Comments The department provides an integrated approach to improving the customer experience across Regulatory Services.

What are your key projects/programmes? • Further development and analysis of the Customer Experience monitor• Quality assurance programme for Regulatory Services

67

Regulatory Services Service Strategy & Integration


• Training school for Building Consent Officers• Regulatory Services Graduate programme• Business improvement programme focusing on customer service and productivity improvement.

What is the focus for the next 3 years? • Aligning directorate performance more closely to the Auckland Plan and Council Strategy• Creating a consistent and improved approach to customer service across the directorate• Enhancing training and capability development across the directorate• Ensuring a continuous improvement environment for Regulatory Services.

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Regulatory Services Regulatory Services Management


Regulatory Services Management

What is delivered? This area covers the management costs to support the Regulatory Services directorate as well as Māori responsiveness. The lead team manage the delivery of Regulatory Services.


2016/17 Actual

2017/18 Target

2018/19 Target

2019-28 (pa)

The number of mana whenua and mataawaka marae that receive support to renew or upgrade marae infrastructure (Out of 33 existing Marae)

Not avail New 4 7 to 33



Fees and user charges - - - - - Other revenue - - - - - Total operating revenue - - - - - Staff costs 3,231 1,681 1,444 1,410 1,438 Grants, contributions and sponsorship - - - - - Outsourced works and services - 9 - - - Consultancy and professional services - - 26 26 27 Repairs and maintenance - - - - - Other expenditure 18 22 66 68 69 Total operating expenditure 3,249 1,712 1,536 1,504 1,534


Who pays? Operating costs are mainly funded from regulatory fees and charges.

Where are budget decisions made? Governing Body: Budgets including regulatory fees and charges are agreed as part of the LTP and Annual Plan process. Changes to budgets and new funding are approved by the Governing Body or appropriate Committee.

Local Boards: N/A


Comments The Regulatory Services directorate has over 1,400 employees who provide a range of customer services, including resource, engineering and building consents along with licencing (Food, Alcohol, Dogs, Street

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Regulatory Services Regulatory Services Management


Trading) and compliance services for bylaws and non-consented developments. Making it easy for customers, focusing on service delivery timeliness, improving productivity and retaining and attracting staff in a vibrant economy are a key focus for the directorate.

What are your key projects/programmes? • Implement the Regulatory Services Directorate-wide Māori Responsiveness Plan• Continue the digital innovations to improve customer experience and process timeliness• Improvement programme focused on improving customer service and productivity• Developing, retaining and attracting high-performing people to meet our service levels and improve customer

experience in a vibrant economy.

What is the focus for the next 3 years? • Ensure an effective partnership with Industry and Government to meet Auckland’s construction demands• Implement digital and process improvement initiatives to ensure services meet customer performance

targets• Provide services that are value for money and make use of our size and scale.

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