I hereby give notice that an ordinary meeting of the Appointments, Performance Review and Value for Money Committee will be held on:

 

Date:

Time:

Meeting Room:

Venue:

 

Thursday, 1 November 2018

10.30am

Room 1, Level 26
135 Albert St
Auckland

 

Komiti Tohu me te Arotake Tūranga Mahi, me te Rite o te Whiwhi ki Tā Tērā i Utu Ai / Appointments, Performance Review and Value for Money Committee

 

OPEN AGENDA

 

 

MEMBERSHIP

 

Chairperson

Hon Phil Goff, CNZM, JP

 

Deputy Chairperson

Hon Christine Fletcher, QSO

 

Members

Cr Josephine Bartley

 

 

Cr Ross Clow

 

 

Cr Chris Darby

 

 

Cr Richard Hills

 

 

Cr Penny Hulse

 

 

Cr Desley Simpson, JP

 

 

 

 

Ex-officio

Deputy Mayor Bill Cashmore

 

 

IMSB Chair David Taipari

 

 

(Quorum 4 members)

 

 

 

Suad Allie

Governance Advisor

 

25 October 2018

 

Contact Telephone: (09) 977 6953

Email: suad.allie@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

 

 


Terms of Reference (Delegations)

 

Responsibilities

 

The Council Appointments, Performance Review and Value for Money Committee is established to:

 

1.    Review the chief executive’s performance and to recommend to the Governing Body the terms and conditions of the CE’s employment including any performance agreement measures and annual remuneration.

2.    Make appointments to Council-Controlled Organisations (CCOs), Council Organisations (COs) and exempt CCOs and COs, with the exception of Ports of Auckland Limited and Auckland International Airport Limited.

3.    Receive updates on appointments to the council organisations Ports of Auckland Limited and Auckland International Airport Limited, as well as any relevant updates on shareholder voting undertaken at Auckland International Airport Limited annual general meetings.

4.    Approve policies relating to the appointment of directors and trustees to CCOs and Cos.

5.    Monitor and report to the Governing Body on the implementation of service delivery reviews required under s17A of the Local Government Act 2002, and the recommendations arising from those reviews.

6.    Approve the scheduling of the forward s17A work programme, and recommend to the Governing Body the terms of reference for individual reviews.

7.    Request reports on Auckland Council parent and CCO value for money, savings and effectiveness-focused initiatives that are beyond the scope of s17A reviews, and make recommendations on these reports to the Governing Body.

 

Powers

 

All powers necessary to perform the committee’s responsibilities.

 

Except:

 

(a)        powers that the Governing Body cannot delegate or has retained to itself (section 2)

(b)        where the committee’s responsibility is limited to making a recommendation only

(c)        the power to establish sub-committees

 

 


 

Exclusion of the public – who needs to leave the meeting

 

Members of the public

 

All members of the public must leave the meeting when the public are excluded unless a resolution is passed permitting a person to remain because their knowledge will assist the meeting.

 

Those who are not members of the public

 

General principles

 

·         Access to confidential information is managed on a “need to know” basis where access to the information is required in order for a person to perform their role.

·         Those who are not members of the meeting (see list below) must leave unless it is necessary for them to remain and hear the debate in order to perform their role.

·         Those who need to be present for one confidential item can remain only for that item and must leave the room for any other confidential items.

·         In any case of doubt, the ruling of the chairperson is final.

 

Members of the meeting

 

·         The members of the meeting remain (all Governing Body members if the meeting is a Governing Body meeting; all members of the committee if the meeting is a committee meeting).

·         However, standing orders require that a councillor who has a pecuniary conflict of interest leave the room.

·         All councillors have the right to attend any meeting of a committee and councillors who are not members of a committee may remain, subject to any limitations in standing orders.

 

Independent Māori Statutory Board

 

·         Members of the Independent Māori Statutory Board who are appointed members of the committee remain.

·         Independent Māori Statutory Board members and staff remain if this is necessary in order for them to perform their role.

 

Staff

 

·         All staff supporting the meeting (administrative, senior management) remain.

·         Other staff who need to because of their role may remain.

 

Local Board members

 

·         Local Board members who need to hear the matter being discussed in order to perform their role may remain.  This will usually be if the matter affects, or is relevant to, a particular Local Board area.

 

Council Controlled Organisations

 

·         Representatives of a Council Controlled Organisation can remain only if required to for discussion of a matter relevant to the Council Controlled Organisation.

 


 


Appointments, Performance Review and Value for Money Committee

01 November 2018

 

 

ITEM   TABLE OF CONTENTS                                                                                         PAGE

1          Apologies                                                                                                                        5

2          Declaration of Interest                                                                                                   5

3          Confirmation of Minutes                                                                                               5

4          Petitions                                                                                                                          5  

5          Public Input                                                                                                                    5

6          Local Board Input                                                                                                          5

7          Extraordinary Business                                                                                                5

8          Value for Money (s17A) Review - Legal and Risk Management services               7

9          Chief executive's performance objectives                                                                23  

10        Consideration of Extraordinary Items 

PUBLIC EXCLUDED

11        Procedural Motion to Exclude the Public                                                                 25

C1       Chief executive's performance objectives                                                                25  

 


1          Apologies

 

At the close of the agenda no apologies had been received.

 

 

2          Declaration of Interest

 

Members are reminded of the need to be vigilant to stand aside from decision making when a conflict arises between their role as a member and any private or other external interest they might have.

 

 

3          Confirmation of Minutes

 

That the Appointments, Performance Review and Value for Money Committee:

a)         confirm the ordinary minutes of its meeting, held on Wednesday, 3 October 2018, including the confidential section, as a true and correct record.

 

 

4          Petitions

 

At the close of the agenda no requests to present petitions had been received.

 

 

5          Public Input

 

Standing Order 7.7 provides for Public Input.  Applications to speak must be made to the Governance Advisor, in writing, no later than one (1) clear working day prior to the meeting and must include the subject matter.  The meeting Chairperson has the discretion to decline any application that does not meet the requirements of Standing Orders.  A maximum of thirty (30) minutes is allocated to the period for public input with five (5) minutes speaking time for each speaker.

 

At the close of the agenda no requests for public input had been received.

 

 

6          Local Board Input

 

Standing Order 6.2 provides for Local Board Input.  The Chairperson (or nominee of that Chairperson) is entitled to speak for up to five (5) minutes during this time.  The Chairperson of the Local Board (or nominee of that Chairperson) shall wherever practical, give one (1) day’s notice of their wish to speak.  The meeting Chairperson has the discretion to decline any application that does not meet the requirements of Standing Orders.

 

This right is in addition to the right under Standing Order 6.1 to speak to matters on the agenda.

 

At the close of the agenda no requests for local board input had been received.

 


 

 

7          Extraordinary Business

 

Section 46A(7) of the Local Government Official Information and Meetings Act 1987 (as amended) states:

 

“An item that is not on the agenda for a meeting may be dealt with at that meeting if-

 

(a)        The local  authority by resolution so decides; and

 

(b)        The presiding member explains at the meeting, at a time when it is open to the public,-

 

(i)         The reason why the item is not on the agenda; and

 

(ii)        The reason why the discussion of the item cannot be delayed until a subsequent meeting.”

 

Section 46A(7A) of the Local Government Official Information and Meetings Act 1987 (as amended) states:

 

“Where an item is not on the agenda for a meeting,-

 

(a)        That item may be discussed at that meeting if-

 

(i)         That item is a minor matter relating to the general business of the local authority; and

 

(ii)        the presiding member explains at the beginning of the meeting, at a time when it is open to the public, that the item will be discussed at the meeting; but

 

(b)        no resolution, decision or recommendation may be made in respect of that item except to refer that item to a subsequent meeting of the local authority for further discussion.”

 

 


Appointments, Performance Review and Value for Money Committee

01 November 2018

 

 

Value for Money (s17A) Review - Legal and Risk Management services

 

File No.: CP2018/19950

 

  

Te take mō te pūrongo / Purpose of the report

1.       To approve the terms of reference for the Legal and Risk Management Services value for money review so that it can be recommended to the Governing Body for final approval.

Whakarāpopototanga matua / Executive summary

2.       At its 22 March 2018 (GB/2018/57) meeting the Governing Body approved the terms of reference for the Appointments, Performance Review and Value for Money (APRVFM) Committee. This incorporated the oversight for the value for money review programme under section 17A of the Local Government Act 2002.

3.       This report is seeking approval from this committee for the next scheduled review being Legal and Risk Management services. This follows nine previously approved reviews which have been completed or are underway.

4.       This review is proposed as it builds on previous review work that comprised the organisational support budget groupings in the long-term plan including:

·   information, communications and technology

·   group procurement

·   customer services

·   communications and engagement

·   group financial services.

5.       Organisational support represents group budgeted expenditure over the 2018/2019 year of $534 million in operating expenditure and $60 million in capital expenditure.

6.       The review of Legal and Risk Management services will also have a bearing on the development of a group corporate-support strategy.

 

Ngā tūtohunga / Recommendation/s

That the Appointments, Performance Review and Value for Money Committee:

a)      approve the terms of reference for the Legal and Risk Management services value for money review, so that it can be recommended to the Governing Body for final approval.

 

Horopaki / Context

7.       The value for money (S17A) programme’s aim is to ensure council services continue to best meet Auckland's needs for good-quality infrastructure, local public services and performance of regulatory functions into the future.


 

 

Tātaritanga me ngā tohutohu / Analysis and advice

Previous related decisions:

Date

Committee

Recommendation Number

Decision

21 March 2017

Finance and Performance

FIN/2017/23

endorsed a value for money programme for the council group and approved the initial four terms of reference (three waters, domestic waste, communications and engagement, investment attraction and global partnerships)

21 September 2017

Finance and Performance

FIN/2017/128

two value for money terms of reference were approved (group procurement and parks and open spaces)

22 March 2018

Governing Body

GB/2018/57

approved oversight for the value for money (S17A) programme be moved to the Appointments, Performance Review and Value for Money (APRVFM) Committee

24 May 2018

Governing Body

GB/2018/84

two value for money terms of reference were approved (group customer services, and group information, communication and technology services)

27 September 2018

Governing Body

GB/2018/146

a single value for money terms of reference for group financial services was approved

 

8.       The scope of the Legal and Risk Management services review proposed in this report includes

·   public law

·   regulatory and civil litigation

·   commercial, property

·   risk management and insurance matters

·   risk frameworks, policies, processes and plans

·   risk identification, monitoring, reporting and risk assurance (including the internal auditing and controls environment).

9.       This report is seeking approval from this committee to recommend to the Governing Body the terms of reference for the Legal and Risk Management services review (refer to Attachment A).

10.     In proposing this review, there is an opportunity to assist the group shared-services work which is underway. This involves identifying operational opportunities across the group and removing duplication. The work is being undertaken with sponsorship from the Auckland Council group chief financial officers. This value for money review will complement the development of shared-services work by reviewing areas of significant group expenditure with high levels of commonality and potential duplication.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

11.     The views of local boards have not been sought in relation to this report. If the recommendations arising from the review has an impact on local boards engagement will take place.

Tauākī whakaaweawe Māori / Māori impact statement

12.     The programme and the review’s recommendations are potentially beneficial to Māori.  The Independent Māori Statutory Board has been engaged on the programme’s terms of reference and timetable.  Reports and recommendations are reviewed and consulted on with an independent Te Ao Māori adviser.  If recommendations within individual value for money reports are approved, engagement with Māori on the relevant recommendations will occur throughout the implementation process.

Ngā ritenga ā-pūtea / Financial implications

13.     There are no direct financial implications beyond the cost of the review, which is budgeted for.

Ngā raru tūpono / Risks

14.     No risks have been identified.  The review itself will contain a risk assessment.

Ngā koringa ā-muri / Next steps

15.     The resulting approved review report will be handed over to the Auckland Council Chief Executive to implement.

 

Ngā tāpirihanga / Attachments

No.

Title

Page

a

Terms of reference Legal and Risk Management services 

11

      

Ngā kaihaina / Signatories

Author

Sally Garrett – Programme Manager – Value for Money

Authorisers

Kevin Ramsay - General Manager Corporate Finance and Property

Matthew Walker - Group Chief Financial Officer

Phil Wilson - Governance Director

 


Appointments, Performance Review and Value for Money Committee

01 November 2018

 

 


 


 


 


 


 


 


 


 


 


 


Appointments, Performance Review and Value for Money Committee

01 November 2018

 

 

Chief executive's performance objectives

 

File No.: CP2018/20305

 

  

Te take mō te pūrongo / Purpose of the report

1.       To agree a new set of performance objectives for the Auckland Council’s chief executive for the 2019-2020 calendar years.

Whakarāpopototanga matua / Executive summary

1.       As set out in the Governing Body terms of reference, this committee is responsible for reviewing the chief executive’s performance and for recommending to the Governing Body the terms and conditions of the chief executive’s employment, including any performance agreement measures.

2.       On 27 June 2018 the Governing Body agreed to extend Mr Town’s employment for a further two years (Resolution Number GB/2018/103). This means a new set of performance objectives must be agreed by Governing Body for the extension period, that is, for the 2019-2020 calendar years.

3.       Subject to the decisions of this committee, the chief executive’s new performance objectives will be recommended to the Governing Body which will consider this matter at its meeting on 22 November 2018.

4.       The substantive discussion on this matter will take place in the confidential part of the agenda as it will involve the performance of the chief executive as well as the setting of performance objectives yet to be agreed between the chief executive and Governing Body.

 

Ngā tūtohunga / Recommendation/s

That the Appointments, Performance Review and Value for Money Committee:

a)      agree the set of performance objectives for the Auckland Council chief executive for the calendar years 2019-2020.

b)      recommend the set of performance objectives to Governing Body at its meeting on 22 November 2018.

 

 

Ngā tāpirihanga / Attachments

There are no attachments for this report.    

Ngā kaihaina / Signatories

Author

Tania Winslade - Executive Officer to P&P

Authorisers

Patricia Reade - Director People and Performance

Phil Wilson - Governance Director

      

 


Appointments, Performance Review and Value for Money Committee

01 November 2018

 

 

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

That the Appointments, Performance Review and Value for Money Committee

a)      exclude the public from the following part(s) of the proceedings of this meeting.

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution follows.

This resolution is made in reliance on section 48(1)(a) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by section 6 or section 7 of that Act which would be prejudiced by the holding of the whole or relevant part of the proceedings of the meeting in public, as follows:

 

C1       Chief executive's performance objectives

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)(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 that relates to the setting of performance objectives that have yet to be agreed between the Governing Body and the chief executive, and the committee may discuss matters relating to the performance of the chief executive.

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.