Agenda of Appointments, Performance Review and Value for Money Committee

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

Date:

Time:

Meeting Room:

Venue:

Thursday, 14 February 2019

2.30pm

Room 1, Level 26
135 Albert St
Auckland

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

OPEN AGENDA

MEMBERSHIP

Chairperson	Hon Phil Goff, CNZM, JP
Deputy Chairperson	Cr Hon Christine Fletcher, QSO
Members	Cr Josephine Bartley
	Cr Ross Clow
	Cr Chris Darby
	Cr Richard Hills
	Cr Penny Hulse
	Cr Desley Simpson, JP

Ex-officio	Deputy Mayor Cr Bill Cashmore
	IMSB Chair David Taipari

(Quorum 4 members)

Suad Allie

Governance Advisor

11 February 2019

Contact Telephone: (09) 977 6953

Email: suad.allie@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

Appointments, Performance Review and Value for Money Committee

14 February 2019

ITEM TABLE OF CONTENTS PAGE

1 Apologies 5

2 Declaration of Interest 5

3 Confirmation of Minutes 5

4 Petitions 5

5 Public Input 5

6 Local Board Input 5

7 Extraordinary Business 5

8 2019 board appointment programme for Auckland Council's substantive council-controlled organisation 7

9 Forward Work Programme 11

10 Appointments and Performance Review Committee Information Report - 14 February 2019 23

11 Consideration of Extraordinary Items

PUBLIC EXCLUDED

12 Procedural Motion to Exclude the Public 25

C1 CONFIDENTIAL: Appointments to Auckland's council-controlled organisations for 2019 25

1 Apologies

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

2 Declaration of Interest

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

3 Confirmation of Minutes

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

a) confirm the ordinary minutes of its meeting, held on Thursday, 6 December 2018, including the confidential section, as a true and correct record.

4 Petitions

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

5 Public Input

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

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

6 Local Board Input

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

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

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

7 Extraordinary Business

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

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

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

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

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

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

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

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

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

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

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

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

Appointments, Performance Review and Value for Money Committee

14 February 2019

2019 board appointment programme for Auckland Council's substantive council-controlled organisation

File No.: CP2018/24420

Te take mō te pūrongo

Purpose of the report

1. To receive information regarding the reappointment of directors for the council-controlled organisations (CCOs) and note that a decision will be made in the confidential part of this meeting.

Whakarāpopototanga matua

Executive summary

2. The council’s 2019 board appointment programme commenced in December 2018. The committee approved four director reappointments and two director vacancies for Watercare Services Limited.

3. The remaining 2019 programme includes the consideration of re/appointment of twelve CCO directors and one chairperson. Under the Auckland Council’s Appointment and Remuneration Policy for Board Members (the policy) some of the directors are at the outer limits of their tenures.

4. The policy provides that directors can serve up to two three-year terms. Council may appoint a director for a third term if good reasons for doing so exist.

5. There is a confidential report on today’s agenda providing advice regarding:

· whether or not to reappoint twelve directors and one chairperson

· the skill and experience that should be used as search criteria to fill any vacancies.

6. The timeframe to complete the 2019 board appointment programme is shorter than usual due to local government elections. Therefore, all vacancies need to be filled by the committee’s September 2019 meeting.

Ngā tūtohunga

Recommendation/s

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

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

i) information to make decisions on the directors on Auckland’s council-controlled organisations whose terms of appointment is due to end on 31 October 2019

ii) the skill requirements for any vacancies created.

b) The report is confidential due to the personal information contained in it.

Horopaki

Context

7. If vacancies result from the decisions of today’s committee, the board appointment process for CCOs and external partnerships will be followed and is outlined in the table below:

Tātaritanga me ngā tohutohu

Analysis and advice

8. The council’s policy sets a maximum tenure of six years for the directors of substantive CCO’s in order to achieve a balance of experience and fresh thinking on individual boards.

9. However, the policy also recognises that sometimes there are good reasons to approve extensions beyond the two three-year terms, such as retaining the knowledge, skills and leadership on the board.

10. The confidential report on this agenda provides advice and options to assist the committee to make decisions regarding twelve directors and one chairperson on the substantive CCOs.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

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

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

Local impacts and local board views

12. 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

13. The council’s policy aims to achieve a diverse range of directors to all CCO boards.

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

15. In line with the policy, an Independent Māori Statutory Board member will be appointed to the selection panels for any vacancies to provide a Māori perspective throughout the process.

Ngā ritenga ā-pūtea

Financial implications

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

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

17. There are risks associated with all board appointments, specifically:

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

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

b. completion of 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. a thorough reference check of candidates who are approved for appointment to the CCOs and any other additional interviews as required.

Ngā koringa ā-muri

Next steps

18. Following approval from this committee, staff from the CCO Governance and External Partnerships department and council’s external director recruitment support company (Kerridge and Partners) will progress the director appointment programme for 2019.

19. The proposed timeline for the 2019 board appointment programme is as followings:

What	Stage One Watercare	Stage Two - Auckland Transport chair	ATEED, RFA, Panuku, Auckland Transport - directors
Advertising campaign	completed	February 2019	February 2019
Selection panel (calibration)	January 2019	March 2019	March 2019
Selection panel (nominations)	February 2019	April 2019	April 2019
Committee approve shortlist	March 2019	May 2019	May 2019
Interviews	March 2019	May 2019	May 2019
Committee approve preferred candidates	April 2019	June 2019	June 2019
Reference check and final approval	May 2019	July 2019	July 2019

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

14 February 2019

Forward Work Programme

File No.: CP2018/25107

Te take mō te pūrongo / Purpose of the report

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

Whakarāpopototanga matua / Executive summary

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

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

Ngā tūtohunga / Recommendation/s

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

a) approve its forward work programme.

Ngā tāpirihanga / Attachments

No.	Title	Page
a ⇩	20190214 - Forward Work Programme	13

Ngā kaihaina / Signatories

Author	Suad Allie - Governance Advisor
Authoriser	Phil Wilson - Governance Director

Appointments, Performance Review and Value for Money Committee

14 February 2019

Appointments and Performance Review Committee Information Report - 14 February 2019

File No.: CP2019/00993

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 14 February 2019.

Whakarāpopototanga matua

Executive summary

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

3. The following confidential workshop has taken place:

- 6 December 2018

1. Value for Money: Three Waters review

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 – 14 February 2019.

Ngā tāpirihanga

Attachments

There are no attachments for this report.

Ngā kaihaina

Signatories

Author	Suad Allie - Governance Advisor
Authoriser	Phil Wilson - Governance Director

Appointments, Performance Review and Value for Money Committee

14 February 2019

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

That the Appointments, Performance Review and Value for Money Committee

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

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

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

C1 CONFIDENTIAL: Appointments to Auckland's council-controlled organisations for 2019

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 potential candidates and directors for Auckland's council-controlled organisations

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.