I hereby give notice that an ordinary
meeting of the Appointments, Performance Review and Value for Money Committee will
be held on:
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Date:
Time:
Meeting Room:
Venue:
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6 December 2018
10.30am
Reception
Lounge
Auckland Town Hall
301-305 Queen Street
Auckland
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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
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MEMBERSHIP
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Chairperson
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Hon Phil Goff, CNZM, JP
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Deputy Chairperson
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Cr Hon Christine Fletcher, QSO
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Members
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Cr Josephine Bartley
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Cr Ross Clow
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Cr Chris Darby
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Cr Richard Hills
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Cr Penny Hulse
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Cr Desley Simpson, JP
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Ex-officio
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Deputy Mayor Cr Bill Cashmore
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IMSB Chair David Taipari
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(Quorum 4 members)
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Suad Allie
Governance Advisor
30 November 2018
Contact Telephone: (09) 977 6953
Email: suad.allie@aucklandcouncil.govt.nz
Website: www.aucklandcouncil.govt.nz
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Appointments,
Performance Review and Value for Money Committee
6/12/2018
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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) quarterly progress reports 7
9 Value for Money
ICT review 31
10 Process for the
appointment of a trustee to Māngere Mountain Education Trust 107
11 Process for appointment of
board members to the Community and Education Trust - COMET 109
12 Update report on the
process of appointing directors and board interns to the boards of the
substantive council-controlled organisations 113
13 Appointment of selection
panel members for the 2019 board appointment programme 117
14 Appointments and
Performance Review Committee Information Report - 6 December 2018 129
15 Consideration of
Extraordinary Items
PUBLIC EXCLUDED
16 Procedural
Motion to Exclude the Public 131
C1 Confidential: Appointment of
board members to the Community Education Trust Auckland - COMET 131
C2 Confidential: Appointment of a
trustee to the Māngere Mountain Education Trust 131
C3 Confidential: Appointment of directors
to Auckland Transport and Regional Facilities Auckland 131
C4 Confidential: Director
appointments to Watercare Services Limited 132
C5 Confidential: Appointment of
board interns to Auckland's council-controlled organisations 132
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
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That the Appointments, Performance Review and Value for Money
Committee:
a)
confirm the ordinary minutes of its meeting,
held on Thursday, 1 November 2018, including the
confidential section, as a true and correct record.
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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.”
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Appointments,
Performance Review and Value for Money Committee
6/12/2018
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Value
for Money (s17A) quarterly progress reports
File No.: CP2018/22125
Te take mō te pūrongo / Purpose of the report
1. To
provide a progress update on the implementation of the first five completed
reviews in the Value for Money (s17A) review programme and to outline the
intended actions for these reviews.
Whakarāpopototanga matua / Executive summary
2. In
March 2017 the Finance and Performance Committee endorsed a Value for Money
programme for the council group including approval to undertake the first four
Value for Money (s17A) reviews. Subsequent approval was given in September 2017
to undertake a fifth review. The five reviews have been completed and approved.
These are:
· Three
Waters
· Domestic
Waste Services
· Communication
and Engagement Services
· Investment
Attraction and Global Partnerships
· Group
Procurement.
3. This
report provides an update on quarterly implementation progress for the five
reviews and the recommendations.
4. Business managers across the group have
developed implementation plans for these actions and the five attachments to
this report provide information on each review area, how these actions will be
implemented and current progress. These areas may change as the work is further
scoped or developed, feasibility work is completed, and dependencies are
refined.
5. A summary of progress for each review is
contained in paragraphs 6-17 below.
Three Waters
6. The implementation of all the recommendations
are proceeding to plan.
7. This quarter a feasibility assessment for
outsourcing the council’s stormwater operations and maintenance to
Watercare Services Limited (Watercare) has been completed. The findings
of this review will be workshopped with the Appointments, Performance Review
and Value for Money Committee members on 7 December 2018. Financial estimates of savings to be
achieved through the Value for Money review are $293 million of benefits
forecast over the next ten years. This includes:
· $179
million in benefits through Watercare capital expenditure that can be deferred
or avoided without increasing operational risk.
· $108
million in forecast benefits from joint programme and project delivery work
between Auckland Transport, Healthy Waters, and Watercare.
· A
forecast of $3.6 million in potential operational and maintenance savings.
8. These and other areas of savings have been captured in the Long-term Plan
2018-2028.
Domestic Waste
9. The
implementation of all the accepted recommendations are proceeding to plan.
10. This quarter the review of the case for council owning and operating
waste services and non-strategic assets is being completed with a report being
prepared for council consideration in early 2019.The council has been invited
to participate in a funding round of central government’s Waste
Minimisation Fund for its resource recovery network. The procurement plan for
waste collection is in development and will be presented to council in early
2019.
11. No
areas of financial benefit have yet been forecast and captured in the long-term
plan 2018-2028 for this review.
Communications and Engagement Services
12. The
implementation of all the recommendations have been completed with the savings
captured in operating budgets. No further report is required.
Investment Attraction and Global Partnerships
13. The
implementation is running behind schedule as a result of a change in Auckland
Tourism, Events and Economic Development Limited’s operating principles
and associated reorganisation. Work is underway and proceeding to plan against
a new timetable.
14. No
financial benefits were identified in the review.
Group Procurement
15. The
implementation of the operating model and the risk management framework are
running behind schedule. The draft Group Procurement Strategy and Group Risk
Framework are planned for completion by December 2018.
16. The
2019 financial year operating expenditure savings targets have been set for the
business as follows:
· Council
- $5 million
· Auckland
Transport - $5 million
· Watercare
- $2.5 milion.
17. No
areas of financial benefit arising from the recommendations have yet been
forecast and captured in the Long-term Plan 2018-2028.
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Ngā tūtohunga / Recommendation/s
That the Appointments,
Performance Review and Value for Money Committee:
a) receive
the progress updates for the Value for Money (s17A) reviews on:
· Three
Waters
· Domestic
Waste Services
· Communication
and Engagement Services
· Investment
Attraction and Global Partnerships
· Group
Procurement.
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Ngā
tāpirihanga / Attachments
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No.
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Title
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Page
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a⇩ 
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Quarterly Reporting - Three Waters
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11
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b⇩
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Quarterly Reporting - Domestic Waste
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17
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c⇩ 
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Quarterly Reporting - Communications and Engagement
Services
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21
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d⇩
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Quarterly Reporting - Investment Attraction &
Global Partnerships
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25
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e⇩
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Quarterly Reporting - Group Procurement
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27
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Ngā kaihaina / Signatories
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Authors
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Sally Garrett - Programme
Manager, Delivery Value for Money
Ross Chirnside - Senior Financial Analyst, Delivery
Value for Money
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Authorisers
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Kevin Ramsay - General Manager Corporate Finance and
Property
Matthew Walker - Group Chief Financial Officer
Phil Wilson - Governance Director
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Appointments,
Performance Review and Value for Money Committee
6/12/2018
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Appointments,
Performance Review and Value for Money Committee
6/12/2018
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Appointments,
Performance Review and Value for Money Committee
6/12/2018
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Appointments,
Performance Review and Value for Money Committee
6/12/2018
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Appointments,
Performance Review and Value for Money Committee
6/12/2018
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Appointments,
Performance Review and Value for Money Committee
6/12/2018
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Value for Money ICT review
File No.: CP2018/22129
Te take mō te pūrongo / Purpose of the report
1. To
provide an overview of the findings and recommendations contained in the
completed value for money (s17A) review report of group Information,
Communication and Technology Services (ICT Services).
2. To seek endorsement for the
completed report (contained in Attachment A), to be recommended to the
Governing Body for approval.
Whakarāpopototanga matua / Executive summary
3. In March 2017 the Finance and Performance
Committee endorsed a Value for Money programme. Five reviews have been
completed and approved. These are:
· Three Waters
· Domestic Waste Services
· Communication and Engagement Services
· Investment Attraction and Global Partnerships
· Group Procurement.
4. 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.
5. The review of ICT services recommends that the
chief executive of Auckland Council collaborate with the chief executives of
the CCOs to:
· develop
and implement a group approach to governing ICT for items of common group
interest
· design and
implement a consistent group-wide approach for managing data centres
· build on the collaborative approach in the Group
Procurement Policy by building an ICT Procurement Strategy and Category
Management Plan.
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Ngā tūtohunga / Recommendation/s
That the Appointments,
Performance Review and Value for Money Committee:
a) receive
the Information, Communication and Technology Value for Money Review 2018
report.
b) endorse
the recommendations set out in (c) below and recommend that the Governing
Body approve the reports and their recommendations
c) recommend
that the council’s chief executive collaborate with the chief
executives of the council-controlled organisations
to:
i) develop
and implement a group approach to governing Information, Communication and
Technology for items of common group interest. It is anticipated that
this will include:
· key guiding
principles balancing each organisation’s needs and current Information,
Communication and Technology expertise with the benefits of collaboration
· mandate to
participate and use
· consideration of
appropriate operating models including centres of expertise and other shared
arrangements to reduce duplication and improve efficiency
· an implementation
plan
ii) design
and implement a consistent group-wide approach for managing data centres. It
is anticipated that this will include:
· appropriate
service levels required from a data centre segmented, where appropriate, by
organisation and service requirement, including an appropriate assessment of
risk
· an assessment of
current data centre providers and any options that may be part of the All of
Government contracts
· a framework to
manage supplier relationship(s) and develop a strategic group approach to
deliver future benefits
· an agreed plan on
approaches to reduce, if applicable, future demand for data centre capacity
iii) build
on the collaborative approach in the Group Procurement Policy by building an
Information, Communication and Technology Procurement Strategy and Category
Management Plan. It is anticipated that this will include:
· Information,
Communication and Technology services which are common across the group and
where a collaborative approach to procurement would be beneficial
· suppliers who are
shared across the group where a collaborative approach to ongoing supplier
management would be beneficial
· Information, Communication and Technology services where the All
of Government procurement contracts will be used.
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Horopaki / Context
Background
6. In March 2017 the Finance and Performance
Committee endorsed a value for money programme for the Auckland Council group
(resolution number FIN/2017/23).
7. 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).
8. The report (Attachment A) 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.
9. 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.
Review
process
10. The
value for money review takes a now 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.
11. The
report is scrutinised by the Independent Review Panel and council management.
CCOs were consulted as part of the review leading to this report.
Tātaritanga me ngā tohutohu / Analysis and advice
Key
findings of the review
12. ICT represents 4.5 per cent of the
group’s total operating and capital costs accounting for almost $280
million in annual expenditure. Operating costs are forecast to rise driven by
consequential operating cost from capital investment, growth in data storage requirements
and the move to ‘cloud’ services which switches expenditure
from capital to operating spend.
13. The
key challenge is to improve the alignment of separate but common ICT services
across the group so that council’s scale can be economised, and unnecessary
duplication eliminated. The Auckland Plan outcomes will be supported through a
joined-up approach to the implementation of Smart Cities technologies.
14. The
review found that there is merit in developing a framework for group-wide ICT
governance and a group ICT strategy outlining where the group could and should
collaborate on ICT items of common interest to both improve efficiency and
effectiveness.
15. The
review recommends the development and implementation of a consistent group-wide
approach for managing data centres.
16. The
review also recommends that the organisation builds on the collaborative
approach in the Group Procurement Policy by building an ICT Procurement
Strategy and Category Management.
17. Collectively
these recommendations have an estimated financial benefit of $18 million over
the next ten years.
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 / Risks
21. The primary
risks arising from these recommendations are regarding their implementation.
Reputational risk may result if the recommendations within the report are not
assessed and followed up on. Financial risks may arise should the proposed
actions require large levels of resourcing and budget. Both will be
addressed through implementation plans and where required business plans.
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
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No.
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Title
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Page
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a⇩
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ICT Report
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35
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Ngā kaihaina / Signatories
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Authors
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Sally Garrett - Programme
Manager, Delivery Value for Money
Ross Chirnside - Senior Financial Analyst, Delivery
Value for Money
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Authorisers
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Kevin Ramsay - General Manager Corporate Finance and
Property
Matthew Walker - Group Chief Financial Officer
Phil Wilson - Governance Director
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Appointments,
Performance Review and Value for Money Committee
6/12/2018
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Appointments,
Performance Review and Value for Money Committee
6/12/2018
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Process for the appointment of a trustee
to Māngere Mountain Education Trust
File No.: CP2018/19892
Te take mō te pūrongo / Purpose of the report
1. To advise about the process to appoint a trustee to the board of the
Māngere Mountain Education
Trust, a legacy council-controlled organisation.
Whakarāpopototanga matua / Executive summary
2. Māngere
Mountain Education Trust (MMET) is a legacy council-controlled organisation
(CCO) of Auckland Council. Auckland Council appoints up to four trustees of
eight trustees; there are currently three trustees who have been appointed by
the council.
3. Staff
undertook an appointment process based on the requirements of MMET’s
trust deed and the council’s Appointment and Remuneration Policy for
Board Members of Council Organisations.
4. There
is a confidential report on today’s committee agenda with a recommendation
on the appointment of a trustee to MMET.
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Ngā tūtohunga / Recommendation/s
That the Appointments,
Performance Review and Value for Money Committee:
a) note that there is a confidential report on today’s
committee agenda with a recommendation on the appointment of
a trustee to the board of the Māngere Mountain Education Trust.
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Horopaki / Context
5. Māngere Mountain Education Trust is a
legacy council-controlled organisation of Auckland Council. Auckland Council
appoints up to four trustees of eight trustees; there are currently three
trustees who have been appointed by the council.
6. Staff
undertook an appointment process based on the requirements of MMET’s
trust deed and the council’s Appointment and Remuneration Policy for
Board Members of Council Organisations. This process included:
· working with MMET’s chair to identify the required skills,
knowledge and experience
· advertising for candidates on Auckland Council’s website and
seek.co.nz
· shortlisting and interviewing appropriately qualified
candidates. This process involved a representative from the Māngere-Ōtāhuhu
Local Board.
7. For
this particular appointment, it was important to attract candidates with
experience in budgeting, financial management and planning. The appointment
will replace the current treasurer, who is the only board member with
experience in accounting and finance.
8. Māngere
Mountain Education Trust is also implementing a new set of internal controls
which have been developed by the council’s Internal Audit department.
MMET will need at least one board member with strong financial skills for this.
Ngā whakaaweawe ā-rohe me ngā tirohanga a te
poari ā-rohe /
Local impacts and local board views
9. The
Deputy Chair of the Māngere-Ōtāhuhu Local Board, Walter
Togiamua, was a member of the interview panel who selected the preferred
candidate.
10. The Māngere-Ōtāhuhu Local Board approves
MMET’s annual operating grant and is therefore a key partner for MMET.
Recently, MMET and the Māngere-Ōtāhuhu Local Board have agreed
that MMET should more regularly report to the local board.
Tauākī whakaaweawe Māori / Māori impact
statement
11. There are no
specific Māori impacts associated with this appointment. However, part of MMET’s role is to work with mana whenua to educate on
the history of the maunga. Iwi also appoint two trustees to MMET.
Ngā ritenga ā-pūtea / Financial implications
12. There are no
financial implications associated with this appointment. Costs for the
recruitment have been met through existing budgets.
Ngā raru tūpono / Risks
13. There are
risks associated with all board appointments, including reputational risks. The
recruitment process included appropriate screening of all candidates and
requiring the nominee to complete a conflict of interest form.
Ngā koringa ā-muri / Next steps
14. If this
committee approves the appointment, the appointee will be provided with an
induction by staff.
Ngā
tāpirihanga / Attachments
There are no attachments for
this report.
Ngā kaihaina / Signatories
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Author
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Sarah Holdem - Principal Advisor
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Authorisers
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Alastair Cameron - Manager - CCO Governance &
External Partnerships
Phil Wilson - Governance Director
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Appointments,
Performance Review and Value for Money Committee
6/12/2018
|
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Process for appointment of board members
to the Community and Education Trust - COMET
File No.: CP2018/21328
Te take mō te pūrongo / Purpose of the report
1. To
receive information about the appointment process to fill three vacancies on
the board of Community Education Trust Auckland – COMET, a
council-controlled organisation, and to reappoint four trustees whose terms
expire in 2018.
Whakarāpopototanga matua / Executive summary
2. The
power to appoint trustees to COMET’s board is vested in Auckland Council
by the Deed of Trust that established COMET as a council-controlled
organisation (CCO) in 2012.
3. COMET
has undertaken an appointment process based on COMET’s trust deed
requirements and consistent with Auckland Council’s Board Appointment and
Remuneration Policy.
4. A
separate confidential report on this meeting agenda contains information and
recommendations regarding the appointment of trustees to the COMET board.
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Ngā tūtohunga / Recommendation/s
That the Appointments,
Performance Review and Value for Money Committee:
a) note
that there is a confidential report on this meeting agenda with
recommendations regarding the appointment of trustees to the board of
Community Education Trust Auckland – COMET.
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Horopaki / Context
5. COMET’s
trust deed calls for no fewer than seven and no more than twelve trustees.
COMET has recently operated with nine trustees and wishes to continue at that
level for the time being. Each trustee is a volunteer and can serve a maximum
of two three-year terms on the board.
6. The
power of appointment of all trustees to the board is vested in council as the
settlor of COMET’s deed.
7. In
2015 COMET sought council approval for an amendment to its deed to allow for
the appointment of trustees from time to time. This amendment was approved and
reflects best practice in board appointment process in order to achieve
continuity and avoid the loss of institutional knowledge on boards.
8. There
are currently six vacancies on COMET’s board. COMET is recommending that
three board vacancies be filled at this time. These vacancies result from
one resignation and two trustees whose terms expired this year.
9. Appointment
of the three recommended candidates will bring the total number of trustees to
nine which is within the range of members set by the trust deed.
Tātaritanga me ngā tohutohu / Analysis and advice
10. COMET has
undertaken a board appointment process based on COMET’s deed requirements
and consistent with council’s Board Appointment and Remuneration Policy.
This process included:
a) identifying
skills, knowledge and experience, including current or future gaps on the board
b) advertising the
board vacancy through an expression of interest programme, including listings
in Seek Volunteering and COMET’s social media channels.
The advertisement was also circulated to all staff and board members as well as
council staff to pass onto suitable candidates
c) shortlisting and
interviewing appropriately qualified candidates
d) recommendation of
preferred candidates to council’s Appointments and Performance Review
Committee for appointment (this report).
11. For these
appointments, financial expertise, strong connections with and understanding of
the Māori community, and knowledge of early
childhood education were established as preferred qualifications based on
current board composition and COMET’s mission.
12. Twelve
applications were received for the vacant positions. The chief executive and
chair of the board shortlisted three applicants. The shortlisted applicants
were interviewed by a subcommittee of the board and the chief executive.
These are the candidates that are recommended to the committee to appoint.
Ngā whakaaweawe ā-rohe me ngā tirohanga a te
poari ā-rohe /
Local impacts and local board views
13. Board
appointments are the role of the governing body. As such, local board views
were not sought on this matter.
Tauākī whakaaweawe Māori / Māori impact
statement
14. COMET’s work is strongly focused on making access to education and
skills more effective and equitable across Auckland. As COMET takes a
cross-sector approach to education, several areas of COMET’s work are
directed to Māori and Pasifika communities where gaps in education have
been identified and economic and social benefits can be realised.
15. COMET’s
board vacancies offer an opportunity to contribute to the development of Māori capacity in governance. One of the key qualifications
sought through this appointment process was familiarity with and connection to
Auckland’s Māori communities (mana whenua and/or mataāwaka).
Ngā ritenga ā-pūtea / Financial implications
16. The costs
associated with these appointments will be managed from existing budgets.
Ngā raru tūpono / Risks
17. There are
risks associated with all board appointments including:
(i) Reputational
risk: 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 appointing disqualified directors or under-qualified candidates, the
following controls are in place:
(a) a due diligence process is
completed on all candidate applications in line with the council’s
appointment policy
(b) short-listed candidates will
complete 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
(ii) Reputational
risk: breach of privacy if confidential candidate information is released prior
to final decisions being made by the committee. The risk is that fewer,
and potentially less-qualified, candidates will be attracted to board service
in the future. To mitigate this risk staff will assure confidentiality
during the board appointment programme and require that selection panel members
sign a confidentiality document.
(iii) Governance
risk: 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. There is a need to
maintain an appropriate balance of new and longer-serving board members to
ensure innovation and fresh thinking while retaining institutional knowledge.
Ngā koringa ā-muri / Next steps
18. Following
approval from this committee, staff from the CCO Governance and External
Partnerships department will work with COMET to ensure appropriate induction
and documentation are completed for each of the approved candidates.
Ngā
tāpirihanga / Attachments
There are no attachments for
this report.
Ngā kaihaina / Signatories
|
Author
|
Steven Branca - BID Partnership Advisor
|
|
Authorisers
|
Alastair Cameron - Manager - CCO Governance &
External Partnerships
Phil Wilson - Governance Director
|
|
Appointments,
Performance Review and Value for Money Committee
6/12/2018
|
|
Update report on the process of
appointing directors and board interns to the boards of the substantive
council-controlled organisations
File No.: CP2018/18353
Te take mō te pūrongo / Purpose of the report
1. To
provide an update on the appointment of:
(i) directors
to the boards of Auckland Transport and Regional Facilities Auckland
(ii) board
interns on council’s five substantive council-controlled organisations
(CCOs)
(iii) update
on the Watercare Services Limited’s board.
Whakarāpopototanga matua / Executive summary
2. Recruitment
for the director vacancies for Auckland Transport and Regional Facilities
Auckland commenced in July 2018. At the 3 October 2018
meeting the committee shortlisted candidates for interview for these roles. The
interviews for these roles will be completed on 3 December 2018, and the
Selection Panels will provide their recommendations to the committee in the
confidential section of the committee meeting.
3. A
report on todays confidential agenda provides advice on the preferred
candidates for these two CCOs
4. Council
is also running the board intern programme to support a diverse range of aspiring directors to develop skills,
knowledge, and board room experience. The committee will today be asked
to decide on the preferred candidates for the five board intern scholarships.
5. The
committee will also receive confidential advice at today’s meeting on the
current directors on Watercare Services Limited and be asked to make decisions
regarding:
·
the reappointment of directors
·
staggering of the terms of appointment of directors.
|
Ngā tūtohunga / Recommendation/s
That the Appointments,
Performance Review and Value for Money Committee:
a) note
that three confidential reports are included on today’s committee
agenda that provide information to make decisions on the:
(i) appointment
of candidates for the director vacancies on Auckland Transport and Regional
Facilities Auckland
(ii) appointment
of candidates for the board intern vacancies on five substantive
council-controlled organisations
(iii) approval to commence the 2019 board appointment programme for
Watercare Services Limited including approving reappointments, and the skills
required (if any) to fill any vacancies and appoint selection panel members
b) note
that the reports are confidential due to the personal information contained
in them.
|
Horopaki / Context
Links to strategies, policies and plans
6. The
board appointment process for appointing directors to any CCOs and external
partnership board is outlined in the table below:
Board intern appointments
7. The
council’s board intern programme is intended to
support a diverse range of aspiring directors to develop skills, knowledge,
board room experience and to establish relationships and networks. The
programme is expected to lead to long-term benefits for the council, as well as
external entities and organisations across the region, by expanding the pool of
potential directors.
8. The
programme appoints an intern on a CCO board in a non-voting capacity for 12
months and provides the person with a structured programme of training and
development opportunities.
9. Council
sets a maximum tenure of one year for the board intern scholarships on each
CCO, however if there is good reason to move an intern to another CCO for a
further term of tenure the council may consider each case
separately.
10. The
confidential reports on this agenda provide advice on the board intern
scholarship vacancies on each of the five CCOs.
11. A
total of 36 applicants applied for the council’s board intern
scholarships.
12. The
selection panel reviewed the candidate applications and shortlisted twelve
candidates for interview.
13. Interviews
will be completed on 30 November 2018 and the Selection Panel will make its
recommendations to the committee.
14. Council’s
executive recruitment manager, Howard Chaffey, will provide the relevant
documentation to support the recommendations.
Director
vacancies
15. The
committee asked staff to find directors with the following skills
(APP/2018/42):
Auckland
Transport:
i) a
strategic appreciation of the place of transport in shaping city living
ii) knowledge
and understanding of the technology and drivers of digital transformation in
transport
iii) an
awareness and sensitivity of the environmental challenges and opportunities
presented in large-scale, interconnected transport systems
iv) community
consultation skills to foster deep engagement across Auckland.
Regional
Facilities Auckland:
Strategic financial
thinking:
i) appreciate
of the administration of sport and its monetisation
ii) experience
of commercial deal making and the formation of strategic partnerships
iii) a
digital outlook with a focus on the customer experience
iv) proven
experience of relationship building with communities
v) connections
with diverse communities
vi) venue
management and the commercialisation of assets
vii) public
service experience.
16. At
the 3 October 2018 meeting the committee shortlisted candidates for interview
(APP/2018/74).
17. The
interviews will be completed on 3 December 2018. The Selection Panels
will provide their recommendations to the committee. Kerridge and Partners will
provide the relevant documentation to support the recommendations.
Watercare Services
Limited
18. Six
of the seven Watercare Services Limited directors will complete their terms on
31 October 2019. The chair, Margaret Devlin, has requested council to
consider the staggering of the directors’ terms so that they are more
evenly spread.
19. Staff
note there is a significant board appointment programme to be completed in
2019. The 2019 appointment programme will need to be completed by
September 2019; before to the local body elections.
20. Making
decisions about the reappointment of Watercare Services Limited directors at
this committee’s December 2018 meeting would allow staff to begin the
process of identifying any new directors early. This would help alleviate
the time pressures that will be experienced by selection panel members, council
staff and Kerridge and Partners in 2019.
Ngā whakaaweawe ā-rohe me ngā tirohanga a te
poari ā-rohe /
Local impacts and local board views
21. 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
22. The
council’s policy also aims to achieve a diverse range of directors to all
CCO boards.
23. This can have
positive impacts for Māori by creating opportunities for
Māori directors.
24. 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
25. The costs
associated with these appointments will be managed from existing budgets.
Ngā raru tūpono / Risks
26. There are
risks associated with all board appointments including:
(i) Reputational
risk: all candidates are appropriately screened to meet the skill requirements
for directors of boards such as these and have appropriate governance
experience especially within public-facing entities. To mitigate any
potential risks of disqualified directors or under-qualified candidates, the
following controls are in place:
(a) a thorough
due diligence process is completed on all candidate applications in line with
the council’s appointment policy
(b) short-listed
candidates will complete 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) Kerridge
and Partners conduct thorough reference checks of candidates who are approved
for appointment to the CCOs.
(ii) Reputational
risk: breach of privacy if confidential candidate information is released 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 and selection panel members sign a confidentiality document.
(iii) Governance
risk: 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. There is a need to
maintain an appropriate balance of new and longer-serving board members to
ensure innovation and fresh thinking while retaining institutional knowledge.
Ngā koringa ā-muri / Next steps
27. Following
approval from this committee, staff from the CCO Governance and External
Partnerships department will liaise with the CCOs to ensure appropriate
induction and documentation are completed for each of the approved candidates
and board interns.
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
6/12/2018
|
|
Appointment of selection panel members
for the 2019 board appointment programme
File No.: CP2018/21452
Te take mō te pūrongo / Purpose of the report
1. To
make decisions about the selection panels for director vacancies on
Auckland’s council-controlled organisations (CCOs) for its 2019 board
appointment programme.
Whakarāpopototanga matua / Executive summary
2. The
2019 board appointment programme will commence with a report to this committee
at its 14 February 2019 meeting. That report will outline those directors whose
terms are due to end on 31 October 2019. The committee will be required
to make decisions regarding whether or not to reappoint nineteen directors on
five council-controlled organisations.
3. There
will be a shorter than normal timeframe to complete the appointment programme
due to the local body elections taking place in October 2019. All appointments
will need to be made by September 2019. It is important that selection
panel members who wish to participate in board appointments are able to make
themselves fully available for the time required.
4. Staff
therefore request that the committee appoints selection panel members today to
ensure the programme can be planned in advance and blocks of time allocated in
members’ diaries.
5. The
number of directors to be considered for reappointment include:
(i) Auckland
Tourism, Events and Economic Development Limited– three directors terms
end, with two having served two three-year terms
(ii) Regional
Facilities Auckland – four directors terms end, with two having served at
least two three-year terms
(iii) Auckland
Transport – four directors including the chair’s terms end, with
two (including the chair) having served at least two three-year terms
(iv) Panuku
Development Auckland Limited– two directors
(v) Watercare
Services Limited – six directors terms end, with two directors having
served at least two three-year terms, and another director having served for a
total of five years and six months. A separate report regarding Watercare
Services Limited’s directors is included in today’s agenda.
6. To
ensure the process is robust and transparent:
(i) a
panel convenor (for the 2019 board appointment programme) will meet with all
selection panel members and outline the process and requirements of selection
panel membership
(ii) all
selection panel members must sign (or have previously signed) a confidentiality
agreement form
(iii) selection
panel members will receive a conflict of interest form when the candidate long
list is received. Selection panel members are required to sign and note
their conflict(s) with potential candidates, prior to participating in the
review meeting.
7. A
proposed timeline for completing the 2019 programme is provided at Attachment A
and the list of CCOs and directors’ terms is provided at Attachment B.
|
Ngā tūtohunga / Recommendation/s
That the Appointments,
Performance Review and Value for Money Committee:
a) appoint
one selection panel member and one alternate selection panel member for the
vacancies on the council-controlled organisations for the 2019 board
appointment programme, including:
i) Auckland
Tourism Events Economic Development Limited
ii) Regional
Facilities Auckland
iii) Auckland
Transport
iv) Panuku
Development Auckland Limited
v) Watercare
Services Limited.
b) appoint
one representative (and an alternate representative) from the Independent Māori
Services Board to the selection panels for the vacancies on the
council-controlled organisations for the 2019 board appointment programme.
|
Ngā
tāpirihanga / Attachments
|
No.
|
Title
|
Page
|
|
a⇩
|
Timeline of proposed dates for 2019 Board Appointment
Programme
|
119
|
|
b⇩
|
2019 Board Appointment Programme
|
121
|
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
6/12/2018
|
|
|
Appointments,
Performance Review and Value for Money Committee
6/12/2018
|
|
|
Appointments,
Performance Review and Value for Money Committee
6/12/2018
|
|
Appointments and Performance Review
Committee Information Report - 6 December 2018
File No.: CP2018/23822
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 6 December 2018.
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:
- 1 November
2018
1. ATEED: September
progress report
2. ICT:
Review Briefing on Findings and Recommendations
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 – 6 December 2018.
|
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
6/12/2018
|
|
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 Confidential:
Appointment of board members to the Community Education Trust Auckland - COMET
|
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 information related to qualifications of
private individuals as appointees of a CCO.
|
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:
Appointment of a trustee to the Māngere Mountain Education Trust
|
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 in order to protect the privacy of
candidates.
|
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:
Appointment of directors to Auckland Transport and Regional Facilities Auckland
|
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 candidates who have
applied for the two director vacancies on Regional Facilities Auckland and
Auckland Transport.
|
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.
|
C4 Confidential:
Director appointments to 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 directors on the
board of 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.
|
C5 Confidential:
Appointment of board interns to Auckland's council-controlled organisations
|
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 candidates who have
applied for the five board intern vacancies on the CCOs.
|
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.
|
