I hereby give notice that an ordinary meeting of the Performance and Appointments Committee will be held on:

 

Date:

Time:

Meeting Room:

Venue:

 

Tuesday, 12 December 2023

2.00pm

Room 1, Level 26
135 Albert Street
Auckland

 

Komiti mō ngā Kopounga me Te Kounga o ngā Mahi / Performance and Appointments Committee

 

OPEN AGENDA

 

 

 

MEMBERSHIP

 

Chairperson

Cr Daniel Newman, JP

 

Deputy Chairperson

Cr Mike Lee

 

Members

Mayor Wayne Brown

 

 

Cr Christine Fletcher, QSO

 

 

Cr Lotu Fuli

 

 

Cr Richard Hills

 

 

Cr Greg Sayers

 

 

Cr John Watson

 

 

Cr Maurice Williamson

 

Ex-officio

Deputy Mayor Desley Simpson, JP

 

 

IMSB Chair David Taipari

 

 

(Quorum 4 members)

 

 

 

Sam Riddiford

Governance Advisor

 

7 December 2023

 

Contact Telephone: +64 27 305 1871

Email: sam.riddiford@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

 

 

 


Performance and Appointments Committee

12 December 2023

 

ITEM   TABLE OF CONTENTS            PAGE

1          Ngā Tamōtanga | Apologies                                                                            5

2          Te Whakapuaki i te Whai Pānga | Declaration of Interest         5

3          Te Whakaū i ngā Āmiki | Confirmation of Minutes                                        5

4          Ngā Petihana | Petitions                                                                5  

5          Ngā Kōrero a te Marea | Public Input                                           5

6          Ngā Kōrero a te Poari ā-Rohe Pātata | Local Board Input         5

7          Ngā Pakihi Autaia | Extraordinary Business                               5

8          Summary of Confidential Decisions and related information released into Open                                                                         7

9          Summary of Performance and Appointments Committee information memoranda, workshops and briefings (including the Forward Work Programme) - 12 December 2023                 9

10        Review of the Appointment and Remuneration Policy for Board Members of Council Organisations                                11

11        Te Whakaaro ki ngā Take Pūtea e Autaia ana | Consideration of Extraordinary Items

PUBLIC EXCLUDED

12        Te Mōtini ā-Tukanga hei Kaupare i te Marea | Procedural Motion to Exclude the Public                                                                                          17

C1       CONFIDENTIAL: Appointment of the Auckland Transport Chair                                                                                              17

 


1          Ngā Tamōtanga | Apologies

 

 

 

2          Te Whakapuaki i te Whai Pānga | Declaration of Interest

 

 

 

3          Te Whakaū i ngā Āmiki | Confirmation of Minutes

 

            Click the meeting date below to access the minutes.

 

That the Performance and Appointments Committee:

a)           whakaū / confirm the ordinary minutes of its meeting, held on Tuesday, 14 November 2023, including the confidential section, as a true and correct record.

 

 

 

4          Ngā Petihana | Petitions

 

 

 

5          Ngā Kōrero a te Marea | Public Input

 

 

 

6          Ngā Kōrero a te Poari ā-Rohe Pātata | Local Board Input

 

 

 

7          Ngā Pakihi Autaia | Extraordinary Business

 

 


Performance and Appointments Committee

12 December 2023

 

Summary of Confidential Decisions and related information released into Open

File No.: CP2023/19057

 

  

 

Te take mō te pūrongo

Purpose of the report

1.      To note confidential decisions and related information released into the public domain.

Whakarāpopototanga matua

Executive summary

2.      This is a regular information-only report which aims to provide greater visibility of confidential decisions made that can now be released into the public domain.

3.      The following decisions/documents are now publicly available:

Date of Decision

Subject

15.8.23

Reappointments to the board of Tātaki Auckland Unlimited

19.9.23

Appointments to the board of the Tāmaki Redevelopment Company

17.10.23

Auckland War Memorial Museum Appointment

17.10.23

Appointments to the board of Port of Auckland Limited

14.11.23

Criteria for appointing Auckland Transport directors

14.11.23

Criteria for appointing directors to Watercare Services Limited

 

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

 

Ngā tūtohunga

Recommendation/s

That the Performance and Appointments Committee:

a)      tuhi ā-taipitopito / note the confidential decisions and related information that is now publicly available:

i)        Reappointments to the board of Tātaki Auckland Unlimited

ii)       Appointments to the board of the Tāmaki Redevelopment Company

iii)      Auckland War Memorial Museum Appointment

iv)      Appointments to the board of Port of Auckland Limited

v)       Criteria for appointing directors to Watercare Services Limited

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Summary of Confidential Information Released

 

      

Ngā kaihaina

Signatories

Author

Sam Riddiford - Governance Advisor

Authoriser

Anna Bray - Acting Director - Governance and CCO Partnerships

 

 


Performance and Appointments Committee

12 December 2023

 

Summary of Performance and Appointments Committee information memoranda, workshops and briefings (including the Forward Work Programme) - 12 December 2023

File No.: CP2023/19056

 

  

 

Te take mō te pūrongo

Purpose of the report

1.      Note the progress on the Forward Work Programme appended as Attachment A

2.      Receive a summary and provide a public record of memoranda or briefing papers that may have been distributed to the Performance and Appointments Committee.

Whakarāpopototanga matua

Executive summary

3.      This is a regular information-only report which aims to provide greater visibility and openness and transparency of information circulated to Transport and Infrastructure Committee members via memoranda/briefings or other means, where no decisions are required.

4.      The following information items were distributed:

Date

Subject

30/11/2023

Memorandum:  CONFIDENTIAL: Resignation of Susan Huria from the Eke Panuku Development Auckland Board (no attachments)

 

5.      Note that, unlike an agenda report, staff will not be present to answer questions about the items referred to in this summary.  Transport and Infrastructure Committee. members should direct any questions to the authors.

 

Ngā tūtohunga

Recommendation/s

That the Performance and Appointments Committee:

a)      tuhi ā-taipitopito / note the progress on the forward work programme appended as Attachment A of the agenda report

b)      whiwhi / receive the Summary of Performance and Appointments Committee information memoranda and briefings.

 


 

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Forward Work Programme

 

     

Ngā kaihaina

Signatories

Author

Sam Riddiford - Governance Advisor

Authoriser

Anna Bray - Acting Director - Governance and CCO Partnerships

 

 


Performance and Appointments Committee

12 December 2023

 

Review of the Appointment and Remuneration Policy for Board Members of Council Organisations

File No.: CP2023/18588

 

  

 

Te take mō te pūrongo

Purpose of the report

1.      To set the scope of a review of the Appointments and Remuneration Policy for Board Members of Council Organisations (the Policy).

Whakarāpopototanga matua

Executive summary

2.      A review of the Policy is recommended to address known or potential issues and to ensure that the Policy remains effective in guiding the Council’s appointment process and achieving the outcomes sought.

3.      The proposed scope of this review is to focus on areas that may not reflect best practice or the desired direction of the council.

4.      The areas identified for further work are:

·    purpose of policy

·    selection panel composition

·    eligibility criteria for candidates

·    amendments for clarity and improved formatting.

 

Ngā tūtohunga

Recommendation/s

That the Performance and Appointments Committee:

a)      whakaae / agree to a review of the Appointment and Remuneration Policy for Board Members of Council Organisations focussed on the following areas:

i)        purpose of policy

ii)       selection panel composition

iii)      eligibility criteria for candidates

iv)      amendments for clarity and improved formatting, and

v)       any other matters identified by the committee.

Horopaki

Context

5.      Auckland Council is required by section 57(1) of the Local Government Act 2002 (LGA) to have a policy that sets out an objective and transparent process for the:

·    identification and consideration of the skills, knowledge and experience required of directors of a council organisation

·    appointment of directors to a council organisation

·    remuneration of directors of a council organisation.

 

 

 

6.      Council’s policy for the purpose of section 57(1) is the Appointment and Remuneration Policy for Board Members of Council Organisations (the Policy).

7.      This policy discusses the process and settings for appointing board members to:

·    substantive council-controlled organisations (CCOs)

·    Port of Auckland Limited

·    non-substantive CCOs

·    council organisations (COs)

8.      The Policy guides appointments to other entities where appointment decisions are made jointly with other shareholders or entities created by legislation. These include City Rail Link Limited, Tāmaki Redevelopment Company, the Auckland Regional Amenities Funding Board and Auckland War Memorial Museum.

9.      The Policy does not override any provisions in legislation or in the constitutional documents of each entity.

10.    A review of the Policy was completed in 2017 [APP/2017/65]. The Policy has been further amended since then as follows:

·    inclusion of a section regarding Port of Auckland [APP/2018/50]

·    update to the core competencies [APR/2020/10]

·    update to the core competencies, allowing the committee to delegate approval of short-lists and update to the Port of Auckland section to bring it into line with the process for Substantive CCOs [PACCC/2023/4].

Tātaritanga me ngā tohutohu

Analysis and advice

11.    Periodic reviews of policies ensure that they remain fit for purpose and facilitate good processes and decision making. The Policy has not been subject of a full review for six years.

12.    The Policy has broadly operated well and has supported a process that meets the statutory requirements. Because the Policy is generally fit for purpose, staff recommend that the review of the Policy focusses on specific topics that are related to known or potential issues rather than a review that considers the Policy in its entirety.

13.    The review will follow a simplified process which includes the establishment of scope, a staff-led review including consultation with the committee and recommendations to the committee for approval in the new year.

14.    The specific issues identified by staff are noted in Table 1 below. The committee may direct staff to consider other matters relating to the Policy:

Issue

Description of issue

Review opportunity

Purpose of policy

Most of the Policy’s purpose is aligned with the statutory requirements under s57(1) of the LGA. It also includes that appointments should ensure “continuity through smooth succession of board members and board chairs”.

Continuity and managed transitions have not always been possible with several boards experiencing significant change over the past three years, especially Eke Panuku, Port of Auckland and Auckland Transport.

The review would consider whether this element of the purpose section is appropriate and sets the correct aim for the Policy.

Selection panel

The membership of the selection panel can contain up to six members for some appointments. This number of panel members creates some practical issues with scheduling.

The Policy establishes an enduring pool of councillors who may serve on selection panels and maintaining this pool requires administrative decision making by the committee.

The review would consider whether the membership of the selection panels are the optimal size and represent a mix of perspectives that supports good decision making.

The review would also consider whether the enduring pool is a useful mechanism and whether this could be achieved more efficiently.

Eligibility criteria

The Policy includes several settings with regards to the eligibility of candidates for appointment, some of which have been identified as potential issues.

The Policy includes that directors may serve on a board for a maximum of nine years.

A PwC report into the management of conflicts of interest at Eke Panuku has recommended that the Policy with regards to board member conflicts of interest be reviewed. This report is available here: PwC Eke Panuku conflicts of interest controls assessment.

The Policy includes rules for directors who choose to stand for elected office including that they must stand down from the board from nomination day which is approximately one month from election day for the general election.

The review would consider the optimal policy settings regarding:

·    Director tenure

·    Conflicts of interest

·    Directors standing for elected office.

Amendments for clarity and improved formatting

Elements of the Policy can be improved without changing the meaning of the Policy. An example is the Port of Auckland section now mirrors the Substantive CCO and can be integrated to simplify the document.

 

 


 

Tauākī whakaaweawe āhuarangi

Climate impact statement

15.    Each CCO is accountable for ensuring their planning and decisions reflect the action areas outlined in Te-Tāruke-ā-Tāwhiri.

16.    Candidates seeking appointment need to demonstrate a commitment to integrate the action areas outlined in Te Tāruke-ā-Tāwhiri into the CCO’s activities. Additional climate skillsets may be sought when considering specific vacancies to support a board to deliver on our climate objectives.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

17.    This report seeks agreement for the parameters of the review. While CCOs are impacted by this policy, it is the responsibility of the council to set the policy direction for appointments.

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

Local impacts and local board views

18.    Local boards are delegated powers to make appointments to CCOs and COs that operate within a local board area while entities with a regional or sub-regional impact are retained by the Governing Body.

Tauākī whakaaweawe Māori

Māori impact statement

19.    Kia ora Tāmaki Makaurau sets as a mahi objective that: "Mana whenua and Māori are active partners and participants at all levels of the council group's decision making".

20.    An Independent Māori Statutory Board member is involved in the appointment process by being a member of the selection panel. This ensures that a Māori perspective informs the recommendations of the selection panel during the shortlisting, interviewing and appointment processes.

Ngā ritenga ā-pūtea

Financial implications

21.    The review of the Policy does not cause any new spending.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

22.    The Policy mitigates risks associated with appointments by setting out a transparent and thorough process for selecting board members. The review seeks to improve the Policy by ensuring that it is supports an effective appointments process.

Ngā koringa ā-muri

Next steps

23.    Staff will develop further options and advice regarding the elements of the policy identified for this review and report back to this committee.

 

 


 

 

 

 

Ngā tāpirihanga

Attachments

There are no attachments for this report.    

Ngā kaihaina

Signatories

Author

James Stephens - Senior Advisor

Authorisers

Alastair Cameron - Manager - CCO Governance & External Partnerships

Anna Bray - Acting Director - Governance and CCO Partnerships

 

 


Performance and Appointments Committee

12 December 2023

 

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

That the Performance and Appointments Committee

a)      whakaae / agree to 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 the Auckland Transport Chair

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 personal information about candidates for the Auckland Transport chair role.

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.