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, 4 April 2019

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

Cr 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 Cr Bill Cashmore

 

 

IMSB Chair David Taipari

 

 

(Quorum 4 members)

 

 

Suad Allie

Governance Advisor

 

1 April 2019

 

Contact Telephone: (09) 977 6953

Email: suad.allie@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

 

 

 


Appointments, Performance Review and Value for Money Committee

04 April 2019

 

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 Customer Services Review                                                             7

9          Appointments and Performance Review Committee Information Report - 4 April 2019                                                                                                                               99

10        Forward Work Programme                                                                                       101

11        Update report for director appointments to the board of Watercare Services Limited                                                                                                                                     109  

12        Consideration of Extraordinary Items 

PUBLIC EXCLUDED

13        Procedural Motion to Exclude the Public                                                               113

C1       Confidential report: Shortlist candidates for director vacancies on Watercare Services Limited                                                                                                        113

C2       Confidential Report: Review of the Full Time Equivalent Metric within the Chief Executive’s Performance Objectives (Covering report)                                       113

C3       Confidential report: Chief Executive's performance objectives (Covering report) 113  

 


1          Apologies

 

At the close of the agenda an apology from Cr P Hulse 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 Thursday, 7 March 2019, 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

04 April 2019

 

Value for Money Customer Services Review

File No.: CP2019/03832

 

  

Te take mō te pūrongo

Purpose of the report

1.       To provide an overview of the findings and recommendations contained in the value for money (s17A) review report of customer services.

2.       To seek endorsement for the completed report (contained in Attachment B of the agenda report), to be recommended to the Governing Body for approval.

Whakarāpopototanga matua

Executive summary

3.       Customer services is the latest review to be completed by the Value for Money Programme.

4.       In each review the first step is identifying the key strategic opportunities to improve value for money. The recommendations contained in this report are at a conceptual stage. They require management review and detailed investigation, including feasibility studies, business case development and consultation on potential plans, options, process changes and associated decisions.

5.       The review of Customer services found:

·   All organisations are actively building customer service cultures

·   Overall customer satisfaction is good although performance is variable

·   Service requests which require Group interaction are not measured and may have multiple hand-offs

·   Cost-efficiency and effectiveness are being achieved through digitisation and re-organisation

·   Process simplification is required to enable the move to digital

·   The Group has a fragmented view of the customer

·   A joined-up approach to the customer needs research.

6.       The review of customer services recommends that the chief executive of Auckland Council collaborate with the chief executives of the CCOs to:

·   Improve customer experience by simplifying the channel interface with customers

·   Focus on the resolution of customer queries at first point of contact with the Group.

 

Ngā tūtohunga

Recommendation/s

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

a)      receive the Customer Services Value for Money Review 2019 report

b)      endorse the recommendations set out in (c) below and recommend that the Governing Body approve the report and the recommendations

c)      recommend that the council’s chief executive collaborates with the chief executives of the council-controlled organisations to:

i)        design and implement a group approach to simplifying the customer channels and points of interaction including:

A)        mapping the end-to end-customer journey across the value chain and across organisational (and department) boundaries

B)        identifying and measuring all the points of contact/channels the customer has to deal with across the group that impact on the customer experience

C)        developing a brand framework outlining what a customer should expect when interacting with the group

D)        adopting a common approach to measuring customer service quality particularly customer satisfaction with service delivery

E)        evaluating the value of having a group customer service improvement action plan.

ii)       develop a programme of work, building on initiatives underway to improve first time resolution of customer enquiries including:

A)      empowering contact centre staff with the delegations, knowledge and systems access to respond (on the first telephone call) to a greater variety of customer information and service requests

B)      improving responsiveness of business units to answer first point of customer contact enquiries by placing subject matter experts (on secondment) in the contact centre to take customer calls immediately on matters requiring specialist advice

C)     expanding the case management approach to enquiries with a named person responsible for resolution proactively tracking unresolved issues and work back-logs.

 

Horopaki

Context

7.       In March 2017 the Finance and Performance Committee endorsed a value for money programme for the Auckland Council group (resolution number FIN/2017/23).

8.       In March 2018 the Governing Body approved the terms of reference for the Appointments, Performance Review and Value for Money Committee. This incorporated the oversight for the value for money programme required by section 17A of the Local Government Act 2002 (resolution number GB/2018/57).

9.       The report (Attachment B) is the latest output from the value for money programme, which delivers on the requirements of the Act, to review the cost-effectiveness (or value) of current arrangements for delivering local infrastructure, local public services and regulatory functions.

10.     Each review is the first step in identifying the key strategic opportunities to improve value for money. The recommendations contained in each report are at a conceptual stage. They require management review and detailed investigation, including feasibility studies, business case development and consultation on potential plans, options, process changes and associated decisions.

11.     The value for money review uses a well-established strategic and evidence-based approach. It draws on published reports, council data, interviews and engagement with management and CCOs. Each report contains an overview of the review methodology.

12.     The report is reviewed by the Independent Review Panel and council management. CCOs were consulted as part of the review leading to this report.

13.     A focused summary of the review (Attachment A) has been developed which is attached together with the full review report (Attachment B).

Tātaritanga me ngā tohutohu

Analysis and advice

14.     Customer service is the process of managing customer interactions while ensuring customer satisfaction. It usually takes the form of an in-person interaction, a phone call, an online self-service system, or in writing.

15.     Customers are the current and future residents, ratepayers, visitors and businesses in Auckland. Each service provided by the group has a different group of customers.

A summary of the key findings of the review:

All organisations are actively building customer service cultures

·    All organisations are actively building customer service cultures which are clearly featured in strategies and plans

Overall customer satisfaction is good although performance is variable

·        High customer satisfaction (>80%) is being achieved in a number of areas but overall is impacted by lower performance in regulatory, roads and waste

·        In areas of high satisfaction (e.g. public transport, the Zoo, Watercare) they perform well against other cities

Service requests which require group interaction are not measured and may have multiple hand-offs

·        30% of calls to contact centre need to be handed off and customer enquiry resolution times are not tracked

·        Resolution is variable with multiple call backs and customer dissatisfaction.  More focus needed on resolving at first point of contact

Cost-efficiency and effectiveness are being achieved through digitisation and re-organisation

·        Across the group there has been a significant shift to online digital formats/channels to provide customers with the choice of self service

·        These initiatives lower transactional costs and are measured by a set of online transactional or cost-to-serve-type targets.

Process simplification required to enable the move to digital

·    Customer services are increasingly available online.  Auckland Transport are introducing smart phone apps.

The group has a fragmented view of the customer

·        Customers do not distinguish between organisations and all are seen as Auckland Council - linked by the pohutukawa brand identifier

·        Each organisation is progressing their own customer outcomes without consideration across the group

·        Duplicated investment in technology and whether a “single front door” might be helpful to customers

A joined up approach to the customer needs research

·    A research-based evaluation, from the customer’s perspective, would determine if they would value a “joined up” online service experience.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

17.     The review considered all substantive organisations in the group who have been consulted with in the development of the final review report.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

18.     The decision to endorse this report has no direct implications for local boards.

Tauākī whakaaweawe Māori

Māori impact statement

19.     The decision to endorse this report has no direct implications for Māori.

Ngā ritenga ā-pūtea

Financial implications

20.     Any financial implications arising from the implementation of these review reports will be determined when implementation plans are developed and reported back to this committee.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

21.     The primary risks arising from these recommendations are regarding their implementation which will be addressed through implementation plans and where required business cases.

Ngā koringa ā-muri

Next steps

22.     Should the report and their recommendations be endorsed then the next step will be for the reports to be tabled with the Governing Body for adoption.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Customer Services VFM review - overview

11

b

Customer Services VFM review report

13

      

Ngā kaihaina

Signatories

Author

Ross Chirnside – Programme Lead 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

04 April 2019

 



Appointments, Performance Review and Value for Money Committee

04 April 2019

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Appointments, Performance Review and Value for Money Committee

04 April 2019

 

Appointments and Performance Review Committee Information Report - 4 April 2019

File No.: CP2019/02103

 

  

Te take mō te pūrongo

Purpose of the report

1.       To provide a public record of memos, workshop or briefing papers that have been distributed for the committee’s information since 4 April 2019.

Whakarāpopototanga matua

Executive summary

2.       This is a regular information-only report which aims to provide public visibility of information circulated to committee members via memo or other means, where no decisions are required.

3.       The following confidential workshop has taken place:

-     7 March 2019

4.       Note that, unlike an agenda report which requires a decision, staff will not be present to answer questions about the items referred to in this summary.  Committee members should direct any questions to the authors.

Ngā tūtohunga

Recommendation/s

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

a)      receive the information report – 4 April 2019.

 

Ngā tāpirihanga

Attachments

There are no attachments for this report.     

Ngā kaihaina

Signatories

Author

Suad Allie - Governance Advisor

Authoriser

Phil Wilson - Governance Director

 


Appointments, Performance Review and Value for Money Committee

04 April 2019

 

Forward Work Programme

File No.: CP2019/03962

 

  

Te take mō te pūrongo

Purpose of the report

1.       To review and update the Appointments, Performance Review and Value for Money Committee’s three-year forward work programme.

Whakarāpopototanga matua

Executive summary

2.       It is good practice to review the forward work programme at each committee meeting, to ensure that it can be adapted quickly if council’s risk profile changes and that it remains relevant to the needs of the committee.

3.       There are no substantive changes recommended to the forward work programme that arise from a change in the risk profile of council.

 

Ngā tūtohunga

Recommendation/s

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

a)      approve its forward work programme.

 

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

20190404 Forward Work Programme

103

     

Ngā kaihaina

Signatories

Author

Suad Allie - Governance Advisor

Authoriser

Phil Wilson - Governance Director

 



Appointments, Performance Review and Value for Money Committee

04 April 2019

 


Appointments, Performance Review and Value for Money Committee

04 April 2019

 


Appointments, Performance Review and Value for Money Committee

04 April 2019

 


Appointments, Performance Review and Value for Money Committee

04 April 2019

 


Appointments, Performance Review and Value for Money Committee

04 April 2019

 



Appointments, Performance Review and Value for Money Committee

04 April 2019

 

Update report for director appointments to the board of Watercare Services Limited

File No.: CP2019/03879

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To provide an update on the programme of appointments to the board of Watercare Services Limited (Watercare).

 

Whakarāpopototanga matua

Executive summary

2.       On this committee agenda is a confidential report that considers two director vacancies for Watercare, the skill requirements approved by this committee, the full list of candidates and those chosen by the selection panel for pre-interview by council’s external director recruitment support partners Kerridge and Partners (Kerridge). 

3.       Attached to the confidential report is the longlist prepared by Kerridge.

4.       The committee will today make decisions regarding the recommended shortlist of candidates (from Kerridge), and any other candidates whose skills and experience qualify for a shortlist interview for either vacancy on the Watercare board.

 

 

Ngā tūtohunga
Recommendation/s

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

a)      note that a confidential report is included on today’s committee agenda that provides information to:

i)          make decisions on the shortlist candidates for two director vacancies on Watercare Services Limited

ii)         note that the reports include the skill requirements for the two director vacancies and is confidential due to the personal information relating to candidate applications and curricula vitarum contained in it.

 

 


 

Horopaki

Context

Links to strategies, policies and plans

 

5.       The board appointment process for appointing directors to any CCO and external partnership board is outlined in the table below: 

6.       The confidential reports on this agenda provide advice and options to assist the committee to make decisions regarding the shortlist candidates for interviews.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

7.       There are no significant council group impacts but views in the form of CCO staff advice have been used to inform recommendations.

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

8.       Board appointments to CCOs are the role of the Governing Body.  Local boards can participate in the nomination process for each director vacancy. The nomination of a candidate requires the consent of that candidate.

Tauākī whakaaweawe Māori
Māori impact statement

9.       Council’s policy also aims to achieve a diverse range of directors to all CCO boards.

10.     This can have positive impacts for Māori by creating opportunities for Māori directors.

11.     In line with the policy, an Independent Māori Statutory Board member may be appointed to the selection panel to provide a Māori perspective throughout the process.

Ngā ritenga ā-pūtea
Financial implications

12.     The costs associated with these appointments will be managed from existing budgets.   

Ngā raru tūpono me ngā whakamaurutanga
Risks and mitigations

13.     There are risks associated with all board appointments including:

i)          Reputational: all candidates are appropriately screened to meet the skill requirements for directors of a board such as this and have appropriate governance experience especially within public-facing entities.  To mitigate any potential risks of disqualified directors or under-qualified candidates:

a)        a thorough due diligence process will be completed on all candidate applications in line with the council’s appointment policy

b)        short-listed candidates have completed the council’s director consent form prior to interview which requires directors to confirm that there is nothing that would disqualify them from being a director

c)        thorough reference checks of candidates who are approved for appointment to the CCOs are being conducted by Kerridge and Partners.

ii)         Reputational: breach of privacy if confidential candidate information is provided to media outlets prior to final decisions being made by the committee.  The risk is fewer and potentially less qualified candidates being attracted into future board appointment programmes.  To mitigate the risk staff will continue to highlight the need for maintaining confidentiality during the board appointment programme.    

iii)         Governance: the risk of an unbalanced board where a loss of institutional knowledge impacts decision-making.  Conversely, retaining board members for too long can mean the board lack innovation and fresh thinking. 

Ngā koringa ā-muri
Next steps

14.     Following approval from this committee, staff from the CCO Governance and External Partnerships department and Kerridge will maintain progress on the appointment programmes for 2018.

 

Ngā tāpirihanga

Attachments

There are no attachments for this report.    

Ngā kaihaina

Signatories

Author

Josie Meuli - Senior Advisor

Authorisers

Alastair Cameron - Manager - CCO Governance & External Partnerships

Phil Wilson - Governance Director

      

 


Appointments, Performance Review and Value for Money Committee

04 April 2019

 

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       Confidential report: Shortlist candidates for director vacancies on Watercare Services Limited

 

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)(a) - The withholding of the information is necessary to protect the privacy of natural persons, including that of a deceased person.

In particular, the report contains private information about the candidates that have applied for the two director vacancies on Watercare Services Limited.

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.

 

 

C2       Confidential Report: Review of the Full Time Equivalent Metric within the Chief Executive’s Performance Objectives (Covering report)

 

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)(a) - The withholding of the information is necessary to protect the privacy of natural persons, including that of a deceased person.

In particular, during this item, the committee will be discussing performance objectives for the Chief Executive and to assist with the context the discussions may have to go wider into terms of employment.

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.

 

 

 

 

C3       Confidential report: Chief Executive's performance objectives (Covering report)

 

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)(a) - The withholding of the information is necessary to protect the privacy of natural persons, including that of a deceased person.

In particular, during this item, the committee will discuss performance objectives for the Chief Executive including possible discussion about terms of employment and remuneration.

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.