Agenda of Appointments and Performance Review

TERMS OF REFERENCE

Responsibilities

The Appointments and Performance Review 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

3. Approve policies relating to the appointment of directors and trustees to CCOs and COs.

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

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.

1 Apologies

An apology from Cr C Darby has 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

There are no minutes for confirmation.

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 Democracy 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.”

8 Notices of Motion

At the close of the agenda no requests for notices of motion had been received.

Appointments and Performance Review Committee

24 November 2016

Director appointments to the board: Housing for Older People (HfOP)

File No.: CP2016/23148

Purpose

1. To approve the appointment process for filling two director vacancies on the board of Housing for Older People (HfOP).

Executive summary

2. The Governing Body, at its 25 August 2016 meeting, approved a number of recommendations (a – h) relating to approvals necessary for the partnership with the Selwyn Foundation (Selwyn) for the management and operation of Auckland Council’s Housing for Older People (HfOP) portfolio.

3. The Governing body’s recommendation (e) approved a delegated authority to Auckland Council’s Chief Executive to, during the initial transition period, appoint two Auckland Council and/or Development Auckland Limited (Panuku) staff as interim directors of the Joint Venture, and to commence the process to appoint two independent directors of the Joint Venture in accordance with Auckland Council’s policy relating to the appointment of directors to council organisations.

4. The Joint Venture between Auckland Council and Selwyn is a limited partnership, with Auckland Council holding 49 per cent and Selwyn holding 51 per cent interests. This means it is not a council controlled organisation.

5. This entity is currently in the early establishment phase and not expected to be operational until 1 July 2017.

6. Unlike a council controlled organisation (CCO), HfOP’s structure (as a Community Housing Provider) means it will be able to receive an Income Related Rent Subsidy (IRRS).

7. The governance arrangements for HfOP mean Selwyn appoint three directors, and Auckland Council appoints two directors.

8. Selwyn has made its appointments and Auckland Council’s Chief Executive has appointed Dean Kimpton, Chief Operating Officer (Auckland Council) and David Rankin, Director Strategy and Engagement (Panuku Development Auckland) as council’s interim directors until 30 March 2016.

9. This committee is required to make decisions regarding the skills matrix for the two council-appointed directors. The primary consideration in filling these vacancies will be the quality of the skills, knowledge, and experience candidates bring to the directorships.

10. The report provides advice and options for the skill matrix gaps on the HfOP board, and recommends that the committee delegate final sign-off for the advertisement for new directors to the Auckland Council Chief Executive.

11. The proposed board appointment programme is consistent with the current Appointments and Remuneration Policy for Board Members of Council Organisations (the appointment policy), and seeks approval from the committee to:

· agree the skill matrix requirements for the two separate vacancies;

· agree the membership on the nomination and interview panels; and

· note the timeline for filling the vacancies will be affected by the Christmas close-down period (December 2016-January 2017).

Recommendation/s

That the Appointments and Performance Review Committee:

a) approve the skill matrix requirements for two director vacancies on the board of Housing for Older People, being:

i) strong financial and risk expertise

ii) tenancy property management

iii) asset management expertise

iv) desirable to have experience in establishing new entities or working in a start-up phase.

b) delegate the final approval of the advertisement for the two vacancies on the board of Housing for Older People to the Auckland Council Chief Executive.

c) approve a nomination and interview panel for the two vacancies on the board of Housing for Older People, comprising:

i) up to two councillors, being ………………………

ii) Auckland Council Chief Executive

iii) an Independent Māori Statutory Board member, being …………….

d) note the proposed timeline for completing the appointment programme for the two vacancies on the board of Housing for Older People:

i) approve the appointment programme : Appointments and Performance Committee – 23 November 2016

ii) nomination (advertising programme: 28 November – 7 December 2016

iii) short-listing potential candidates: Appointment and Performance Committee – 1 February 2016

iv) appointment of candidate: Appointments and Performance Committee – 2 March 2016.

Comments

Governing Body Meeting (25 August 2016)

12. The Governing Body, at its 25 August 2016 meeting, approved

(a) A Joint Venture (JV) Limited partnership between the Auckland Council and The Selwyn Foundation (Selwyn) for the management and operation of Auckland Council’s Housing for Older People (HfOP); and

(e) delegated authority to Auckland Council’s Chief Executive to, during the initial transition period, appoint two Auckland Council and/or Development Auckland Limited (Panuku) staff as interim directors of the Joint Venture, and to commence the process to appoint two independent directors of the Joint Venture in accordance with Auckland Council’s policy.

Housing for Older People – Joint Venture Partnership

13. The council is committed to providing housing services for older people in Auckland. In December 2015, the council endorsed Selwyn as the preferred HfOP partner.

14. The Joint Venture between Auckland Council and Selwyn is a limited partnership, with Auckland Council holding 49 percent and Selwyn holding 51 per cent interests.

15. Auckland Council will retain ownership of the HfOP portfolio land subject to any proposed redevelopment and rationalisation of the portfolio. The housing assets will be leased to the Joint Venture for an initial period of 25 years at a peppercorn rental with three rights of renewal of 25 years each, subject to performance criteria.

16. Council has delegated authority to Panuku to act on behalf of Auckland Council in all respects in relation to the Management Agreement and the Lease.

17. Council also agreed to make appropriate financial provision in the 2017/2018 Annual Plan and the 2018-2028 Long-term Plan

Current Board of Directors - Selwyn and Auckland Council

18. Selwyn has appointed the following three directors:

Vicki Sykes (BA, Dip.Tchg, LTh, Grad.Dipl. NFP Management, MSocP (1st class hons)) has spent time working in education and Anglican parish ministry. She was also the Chief Executive of Friendship House, an ecumenical community and social services agency, from 1998 to 2015. Friendship House, "A place for people in the heart of Manukau", blends the elements of a community house with social services provision, underpinned by a faith-based framework. In her work there, Vicki oversaw the recruitment and work of a multicultural team of staff and Board members well placed to identify and connect with the vibrant and complex community of Counties Manukau in the southern region of Auckland city. She is currently involved in a range of governance and consultancy activities. Her experience in governance, management, strategic planning, ministry and social services gives her a strong base from which to serve The Selwyn Foundation.

Helen Melrose - Property Committee Chair (LLB) has practised as a lawyer specialising in retirement villages and elder law for over 20 years. After her time as a partner at a major national law firm, she established her own law firm, from which she recently retired. Helen’s experience in this area has included four years as President of the Retirement Villages Association (an association of for-profit and not-for profit industry representatives). Her contribution to The Selwyn Foundation draws on her general property law experience as well as her areas of expertise. Helen has served as Chairperson of the National Council of the Muscular Dystrophy Association as well as contributing to many other not-for-profit community organisations.

Garry Smith, Chief Executive Officer
Garry has over twenty years’ experience of the health sector, having held senior positions with healthcare organisations throughout New Zealand. Prior to his appointment to the Foundation, he had been CEO of the country's largest health board, Auckland District Health Board, for nine years. A qualified accountant, Garry has expertise in management, planning, accounting and finance, as well as experience of the banking industry. As CEO of the Foundation, Garry is passionate about providing ethical and values-based services for older people and ensuring that services are delivered with integrity, warmth and respect for the individual at all times.

Skill Matrix

19. The appointment policy recommends the following core competencies are expected of all substantive CCO board members; and would be applicable to an organisation at the scale of this joint venture;

· experience in governance, preferably in corporate governance. (Council may waive the corporate governance requirements in order to attract a wider range of board members and to further its diversity policy, if these skills and experience are already well represented on the board)

· sound judgement and decision-making

· commercial acumen

· public service ethos and awareness of a public media profile

· an understanding and commitment to council’s obligation to Te Tiriti o Waitangi

· a high standard of personal integrity

· clear communication and an ability to debate in a reasoned manner

· effective teamwork and collaboration

· the ability to think strategically

· risk assessment and contingency management

· understanding of the wider interests of the publicly accountable shareholder.

20. Council also seeks to increase the number of CCO board member with knowledge of tikanga Maori and Te Reo, established iwi networks, and ability to engage with mandated iwi organisations on CCO matters.

21. The committee may also wish to adopt other skills / experience and knowledge that should be displayed by directors.

22. Staff advise the following skills would be beneficial to the board:

· Strong financial and risk expertise

· Tenancy property management (for day to day business)

· Asset management expertise (future orientated)

· It would be desirable to have experience in establishing new entities or working in a start-up phase

Nomination and Interview Panels

23. The appointment policy provides the following detail regarding the role of the Nomination and Interview Panels.

24. The Nomination panel will screen the list of all candidates to ensure that the candidates / applicants have the required core competencies as well as the specific skills and expertise required for the position. With assistance from a recruitment consultant (Sheffield) the Nomination panel will prepare a recommended short list of applications for consideration by the Committee.

25. Once the Committee has agreed the candidates that will be interviewed, the Interview Panel will assess candidates against the required skills, knowledge and experience and may take into account other factors such as :

(a) The council’s policy to encourage demographic and geographic diversity, and the appointment of more women to boards

(b) Candidates with knowledge of tikanga Māori and Te Reo, established iwi networks, and ability to engage with mandated iwi organisations on CCO matters

(d) Board dynamics and stakeholder relationships

(e) The capacity of applicants to attend regular board meetings and fulfil the other requirements of the directorship

(f) Chair and Deputy Chair succession planning.

26. The current appointment policy states the make-up for Nomination and Interview panels (for external candidates) should include :

(a) Up to two councillors

(b) Auckland Council Chief Executive (ex-officio)

27. Staff recommend using the above make-up for the Nomination and Interview Panels, and invite members of the committee to put themselves forward to sit on these panels.

Board appointment programme - timeline

28. The timeline is appended as Attachment A.

Consideration

Local board views and implications

29. Board appointments to Auckland Council’s CCOs and council organisations are the role of the governing body.

30. Local Boards are able to participate in the Nominations process.

Māori impact statement

31. Council’s board appointment policy and processes aims to appoint more diversity on the boards of council organisations.

32. This can have positive impacts for Māori by creating opportunities that contribute to the development of Māori capacity in governance.

33. In line with the appointment policy IMSB members have participated on nomination and interview panels, this representation has significantly enhanced the board appointment process.

Implementation

34. Following approval from this committee staff from the CCO Governance and External Partnerships unit will progress the advertising and nomination process.

35. Council’s nomination process requests each nominator validate their potential candidates interest, availability and any potential conflicts that might impact their selection.

36. The Nomination Panel will review the long list of candidates who apply. The Nomination Panels recommended shortlist will be reported back to this committee for approval in February 2017.

Attachments

No.	Title	Page
a ⇩	Programme and Timeline	15

Signatories

Author

Josie Meuli - Senior Advisor, CCO Governance & External Partnerships

Authorisers

Alastair Cameron - Manager, CCO Governance & External Partnerships

Phil Wilson - Governance Director

Appointments and Performance Review Committee

24 November 2016

Board Appointments Council Controlled Organisations (CCOs): Auckland Transport

File No.: CP2016/23146

Purpose

1. To approve the appointment process for filling three director vacancies on the Auckland Transport board.

Executive summary

2. The Governing Body, at its 10 November 2016 extraordinary meeting, approved four recommendations (e) to (h) relating to director appointments on the board of Auckland Transport (AT).

3. The legislation governing the Auckland Transport Board is outlined in the Local Government (Auckland Council) Act 2009 (the “LGACA”) and provides that the board will have a minimum of six directors. The AT board is currently operating with only five directors.

4. The legislation allows the AT board to continue to operate with only five directors but the council should work to appoint at least one director as quickly as possible, and all three vacancies filled as expeditiously as possible.

5. The primary consideration in filling the three director vacancies on the AT board will be the quality of the skills, knowledge, and experience candidates bring to the directorships.

6. The current process for appointing directors to any council controlled organisation (CCO) board includes the following:

7. The report provides advice and options for the skill matrix and gaps for the AT board including advice provided by the AT Chair, Dr Lester Levy and staff in council’s CCO Governance and External Partnerships team.

8. The committee will need to make decisions about the skills that will be sought from the director candidates. The committee must also appoint members of the nomination and interview panels. These panels undertake the shortlisting and interviewing of the candidates, and make recommendations to the committee.

9. Nomination and interview panels are normally made up of one or two councillors, the Chair of the CCO, Auckland Council’s Chief Executive, and an IMSB member.

10. If councillors apply for the director roles, consideration should be given to changing the make-up of these panels, due to the conflicts that would be created. If councillors apply, there are various options for the membership make-up on the nomination and interview panels.

11. Staff recommend that the Chief Executive be delegated authority to adjust the make-up of the nomination and interview panels in the event that councilors apply for the director roles.

12. The report recommends that the committee delegate final sign-off for the advertisement for new directors to the Auckland Council Chief Executive.

13. The programme is consistent with the current Appointments and Remuneration Policy for Board Members of Council Organisations (the appointment policy) except for the make-up (Option Two) of the nomination and interview panel members.

Recommendation/s

That the Appointments and Performance Review Committee:

a) approve the skill matrix requirements for three director vacancies on the Auckland Transport board, below:

Required skills

i) a keen awareness of the responsibility and accountability to the shareholder, Auckland Council

ii) solid financial acumen and significant experience in a large and complex organisation, including capital risk management and procurement oversight

iii) senior level stakeholder/relationship expertise

iv) high-level political experience

Desired skills

v) awareness of, or expertise in, future technological change and innovation related to transport

vi) experience in, or strong appreciation for, urban design/place-making.

b) delegate the final approval of the advertisement for the three director vacancies on the Auckland Transport board to the Auckland Council Chief Executive.

c) approve a nomination and interview panel for the three director vacancies on the Auckland Transport board (outlined as Option Two in the agenda report) and comprised of:

i) the Appointments and Performance Review Committee Chair, Deputy Chair, or a councillor appointed by the Chair

ii) the Chair of Auckland Transport

iii) an Independent Māori Statutory Board member

iv) an independent executive with transport expertise.

d) approve the substitution of the councillor position on the nomination and interview panel with a governance advisor (recruitment agency representative) when considering councillor candidates.

e) note the proposed timeline for completing the appointment programme for the three director vacancies on the Auckland Transport board:

i) approve the appointment programme: Appointments and Performance Committee - 23 November 2016

ii) nomination (advertising) programme: 28 November – 7 December 2016

iii) short-listing potential candidates: Appointments and Performance Committee -1 February 2016

iv) interviewing candidates: 2 – 17 February 2017

v) appointment of candidate: Appointments and Performance Committee - 2 March 2017.

Comments

Governing Body Extraordinary Meeting

14. At the 10 November 2016 Governing Body meeting, the following resolutions relevant to three director vacancies on Auckland Transport board were passed:

That the Governing Body:

e) agree that the primary consideration in filling the vacancies on the AT board will be the quality of the skills, knowledge and experience candidates bring to the directorships;

f) agree to appoint up to three directors to the AT board using an open, transparent and competitive process consistent with the Appointments and Remuneration Policy for Board Members of Council Organisations;

g) agree that both external candidates and councillors will be eligible to be nominated for appointment to the vacancies, subject to any restrictions imposed by statute and the Appointments and Remuneration Policy for Board Members of Council Organisations;

h) agree that the detail of the competitive appointment process be agreed through the Appointments and Performance Review Committee, including the confirmation of the director skills matrix for the appointments, the process for candidate long-listing and short-listing, and the appointment of the preferred candidates.

Auckland Transport Board – current matrix and skill requirements

15. The skill matrix and additional detail for the current five directors is outlined in the table appended at Attachment A.

16. The specific requirements for the skill-matrix to be achieved across the three new appointments are outlined below, following consultation with the AT chair and deputy chair:

· a keen awareness of the responsibility and accountability to the shareholder, Auckland Council

· solid financial acumen and significant experience in a large and complex organisation, including capital risk management and procurement oversight

· senior level stakeholder/relationship expertise

· high-level political experience

· awareness of, or expertise in, future technological change and innovation

· experience in, or strong appreciation for, urban design/place-making.

17. The appointment policy recommends the following core competencies are expected of all substantive CCO board members:

· sound judgement and decision-making

· commercial acumen

· public service ethos and awareness of a public media profile

· an understanding and commitment to council’s obligation to Te Tiriti o Waitangi

· a high standard of personal integrity

· clear communication and an ability to debate in a reasoned manner

· effective teamwork and collaboration

· the ability to think strategically

· risk assessment and contingency management

· understanding of the wider interests of the publicly accountable shareholder.

18. Auckland Council is always seeking to achieve diversity among its CCO board members. While assessments of candidates will always be made against the required skills, knowledge and experience, candidates with knowledge of tikanga Maori and established iwi networks will be encouraged. Demographic and gender balance are also factors for consideration.

19. Other factors that may be taken into account include:

· alignment with the council’s strategic objectives for the particular entity

· board dynamics and stakeholder relationships

· the capacity of applicants to attend regular board meetings and fulfil the other requirements of the directorship

· chair and deputy chair succession planning.

20. Auckland Transport Board Chair recommendations

21. In line with the appointment policy, the views of the AT Chair, Dr Lester Levy, were sought regarding the skills required on the board. The Chair’s requirements for the three vacancies include:

· director vacancy one: solid financial acumen and sound experience in a large/complex organisation

· director vacancy two: experience in areas of innovative and digital-technical applications, expertise in future technological change, cloud and big data. This position could be filled with a younger director

· director vacancy three: senior level stakeholder-relationship expertise, high-level political experience.

22. Dr Levy has also requested the committee note the current gender make-up of the AT board (one female, four male) and requests that efforts be made to identify suitably qualified female candidates. Staff note that efforts are always made to attract a diverse range of candidates, and that the primary consideration in filling any vacancy will be the quality of the skills, knowledge, and experience candidates bring to the directorships.

23. The views of the Deputy Chair of the AT Board, Wayne Donnelly, Have also been sought. Mr Donnelly has suggested that the following skills would also be desirable:

· experience in leadership of an organisation or industry in times of significant market and technology driven change – for example what has been happening in the telecommunication, postal, motor vehicle and airline sectors

· experience in the identification of dominant strategic themes and pathways from a myriad of multiple, conflicting and minor trends creating direction and priority for investment

· experience in establishing strong organisation cultures such as customer first, safety first, value for money.

24. In addition to the above Chair’s and Deputy Chair’s advice, staff recommend additional detail be incorporated into the skills sought. The additional skills will ensure the board are capable of undertaking the large capital development programme planned over the next ten years:

· capital risk management and procurement oversight (chartered accountant qualified, with CFO experience)

25. Staff from council’s Transport and Infrastructure Strategy team have also advised that consideration should be given to AT’s impact on broader urban form outcomes. As assets under Auckland Transport management are the majority of our public realm, some planning/design governance expertise could be beneficial. This perspective would be best given by a director with experience in, or strong appreciation for, urban design/place-making issues.

Nomination and Interview Panels

26. The nomination panel will screen the list to ensure that the candidates / applicants have the required core competencies as well as the specific skills and expertise required for the position. With assistance from a recruitment consultant (Sheffield) the nomination panel will prepare a recommended short list of applications for consideration by the Committee.

27. The Committee will consider the long list of candidates, the recommended short list, and decide which candidates to interview.

28. The interview panel will then report back to the Committee. The Committee will consider the recommendations of the panel, and make the final appointment decisions.

29. The current appointment policy states the make-up for nomination and interview panels (for external candidates) should include:

· up to two councillors

· Auckland Council Chief Executive (ex-officio)

· Auckland Transport Chair, Dr Lester Levy (ex-officio)

· an Independent Māori Statutory Board member.

30. It would not be advisable to have councillors or the Chief Executive on the panel if Councillors were to apply for these director positions, due to the inherent conflicts of interest that would be created. It is therefore recommended to depart from the usual practice set out in the policy.

31. Options include having a separate panel to consider the councillor applicants, or substituting members of the panel when considering councillor applicants.

32. In the circumstances, it is proposed for the Auckland Transport vacancies that the make-up of the nomination and interview panels be as below:

· the Appointments and Performance Review Committee Chair, Deputy Chair, or a councillor appointed by the Chair

· Auckland Transport Chair

· an Independent Māori Statutory Board member

· an independent executive with transport expertise.

33. It is also proposed that the councillor position on the nomination and interview panel be substituted with a governance advisor (recruitment agency representative) when considering councillor candidates.

34. This proposal ensures a transparent, fair and competitive process for all candidates (external and internal) and reduces the risk of any potential conflicts.

Board appointment programme - timeline

35. The timeline is appended at Attachment B.

Consideration

Local board views and implications

36. Board appointments to Auckland Council’s CCOs are the role of the governing body.

37. Local boards are able to participate in the nomination process.

Māori impact statement

38. Council’s board appointment policy and processes aims to appoint more diversity on the CCO boards.

39. This can have positive impacts for Māori by creating opportunities that contribute to the development of Māori capacity in governance.

40. In line with the appointment policy Independent Māori Statutory Board members have participated on nomination and interview panels, this representation has significantly enhanced the board appointment process.

Implementation

41. Following approval from this committee staff from the CCO Governance and External Partnerships unit will progress the advertising and nomination process.

42. Council’s nomination process requests each nominator validate the potential candidate’s interest, availability and any potential conflicts that might impact their selection.

43. The nomination panel will review the long list of candidates who apply. The nomination panel’s recommended shortlist will be reported back to this committee for approval in February 2017.

Attachments

No.	Title	Page
a ⇩	AT Board - Skills Matrix and Details - Confidential
b ⇩	Board Appointment Programme and Timeline	23

Signatories

Author

Josie Meuli - Senior Advisor, CCO Governance & External Partnerships

Authorisers

Alastair Cameron - Manager, CCO Governance & External Partnerships

Phil Wilson - Governance Director

Appointments and Performance Review Committee

24 November 2016

Chief Executive Performance Review - Process

File No.: CP2016/22694

Purpose

1. To seek the committee’s views on how it would like to monitor and discuss the performance of the Chief Executive.

Executive summary

2. This committee is responsible for reviewing the Chief Executive’s performance as well as recommending performance agreements and annual remuneration of the Chief Executive to the Governing Body.

3. At this initial meeting, the committee’s views are sought on their preferences for monitoring and reviewing the Chief Executive’s performance. This includes, for example, whether the agenda item should be held in public or in confidential sessions, the type of information that committee members would find helpful, the best method for presenting information, the balance between informal discussions and formal reviews and the frequency of the reviews and discussions.

4. The Chief Executive’s current performance objectives were set by the Governing Body in December 2015 and cover the period 1 January 2016 to 31 December 2017. The first formal review of the current objectives is scheduled for February 2017 when data for the 2016 calendar year will be available.

5. The current performance objectives and performance indicators are attached (Attachment A). Committee members should consider whether amendments are required to the current performance objectives for the remaining 12 month period to reflect any changes in the Governing Body’s priorities for the Chief Executive. These can be addressed from February 2017.

Recommendations

That the Appointments and Performance Review Committee:

a) discuss with the Chief Executive how the committee would like to monitor and review the performance of the Chief Executive.

b) note the Chief Executive’s performance objectives were set by the former Governing Body to cover the period 1 January 2016 to 31 December 2017.

c) note that the first review of the current reporting period is scheduled for February 2017.

d) indicate what additional information the committee would like to be presented at future meetings to assist them in their role.

e) consider if amendments or changes are required to the current performance objectives for the remaining 12 month period to reflect any changes in the Governing Body’s priorities for the Chief Executive and these can be considered from February 2017.

Comments

Background

6. Mr Stephen Town was selected as the council’s Chief Executive in November 2013 and commenced in January 2014. The Governing Body formally reviewed Mr Town’s performance in December 2015 and an end of political term informal review was discussed at the Chief Executive Officer ( CEO) Review Committee on 28 September 2016. The next formal reviews are scheduled to cover the periods:

· the 2016 calendar year (review scheduled for February 2017)

· the 2016/17 financial year review (from August 2017)

· the 2017 calendar year (January/February 2018).

The Chief Executive’s current performance objectives

7. Under its terms of reference, the former CEO Review Committee was required to review the performance of the Chief Executive and to recommend to the Governing Body the terms and conditions of the Chief Executive’s employment including any performance agreement measures. The Chief Executive’s performance objectives were approved by the Governing Body in December 2015 (GB/2015/135 refers).

8. The Chief Executive’s current performance objectives are for a two year period between 1 January 2016 and 31 December 2017. The objectives cover four main categories:

· sound financial stewardship of Auckland Council

· customer, citizen and community satisfaction

· an efficient and effective Auckland Council

· a vibrant organisation prepared for the growth of Auckland.

9. The performance objectives were developed by the CEO Review Committee in late 2015 through a series of committee meetings held in open public session. The CEO Review Committee Chair subsequently recommended the objectives to the Governing Body for adoption. The performance objectives and measures leverage off the council’s organisational strategy (publicly known as the Performance Plan). The objectives and performance measures are attached (Attachment A) together with the Performance Plan (Attachment B).

Discussing and reviewing the Chief Executive’s performance

10. The Chief Executive seeks the views of committee members on their preferences for discussing and reviewing progress against the objectives, and/or other general issues with the Chief Executive. This may include for example:

· Identifying what information committee members would find helpful and how this is best presented

· Whether the agenda item is held in open public or confidential

· The balance between informal discussions and formal reviews

· The frequency of the reviews and discussions

· Seeking views of non-committee members to inform future meetings

· Whether ELT members should be present to enable deeper discussions in specific business units.

Deferring the next formal review until February 2017

11. The next performance review is scheduled to coincide with the completion of the first full calendar year under the current objectives. It is recommended that the 12 month review be undertaken at the committee’s 1 February 2017 meeting.

Consideration

Local board views and implications

12. Local board views have not been sought for this report. The Chief Executive regularly attends the monthly local board chairs forum to discuss major items with the local board chairs.

Māori impact statement

13. Auckland Council has an important role in enabling Māori communities to fully contribute to and benefit from Tamaki Makaurau/Auckland being a successful region.

14. The performance of the Chief Executive as it relates to the performance of the organisation as a whole will influence how well the council contributes to positive Māori outcomes.

Attachments

No.	Title	Page
a ⇩	Auckland Council Chief Executive Performance Objectives 2016 to 2017	29
b ⇩	Auckland Council Performance Plan	31

Signatories

Author

Michael Quinn - Executive Officer

Authorisers

Stephen Town - Chief Executive

Christine Etherington - People & Capability Director

Chairperson	Hon Phil Goff, JP
Deputy Chairperson	Hon Christine Fletcher, QSO
Members	Cr Chris Darby
	Cr Richard Hills
	Cr Penny Hulse
	Cr Desley Simpson, JP
Ex-officio	Deputy Mayor Bill Cashmore