CEO PERFORMANCE REVIEW PANEL NOTICE OF MEETING To: Presiding Member Cr Jan-Claire Wisdom Members Mayor Bill Spragg Cr Jan Loveday Cr Andrew Stratford Ms Paula Davies, Independent Member Notice is hereby given pursuant to the provisions under Section 87 of the Local Government Act 1999 that the next meeting of the CEO Performance Review Panel will be held on: Wednesday 18 November 2015 8.00am 63 Mt Barker Road Stirling A copy of the Agenda for this meeting is supplied under Section 83 of the Act. Meetings of the Council and Committees are open to the public and interested members of the community are welcome to attend. Andrew Aitken Chief Executive Officer
Transcript
CEO PERFORMANCE REVIEW PANEL
NOTICE OF MEETING
To: Presiding Member Cr Jan-Claire Wisdom Members Mayor Bill Spragg Cr Jan Loveday Cr Andrew Stratford Ms Paula Davies, Independent Member
Notice is hereby given pursuant to the provisions under Section 87 of the Local Government Act 1999 that the next meeting of the CEO Performance Review Panel will be held on:
Wednesday 18 November 2015 8.00am
63 Mt Barker Road Stirling A copy of the Agenda for this meeting is supplied under Section 83 of the Act. Meetings of the Council and Committees are open to the public and interested members of the community are welcome to attend.
Andrew Aitken Chief Executive Officer
CEO PERFORMANCE REVIEW PANEL
AGENDA FOR MEETING Wednesday 18 November 2015
8.00am 63 Mt Barker Road Stirling
ORDER OF BUSINESS
Council Vision Nurturing our unique place and people Council Mission Delivering activities and services which build a resilient community, sustain our built and natural
environment and promote a vibrant economy
1. COMMENCEMENT
2. APOLOGIES/LEAVE OF ABSENCE
2.1. Apology
2.2. Leave of Absence
2.3. Absent
3. MINUTES OF PREVIOUS MEETINGS
3.1. CEO Performance Review Panel – 1 July 2015 Recommendation That the minutes of the CEO Performance Review Panel meeting held on date, as supplied, be confirmed as an accurate record of the proceedings of that meeting.
CEO Performance Review Panel AGENDA 18 November 2015
4. DELEGATION OF AUTHORITY
The CEO Performance Review Panel operates in accordance with the relevant sections of the Local Government Act 1999, and its Terms of Reference.
5. DECLARATION OF INTEREST BY MEMBERS OF THE COMMITTEE
7. OFFICER REPORTS – INFORMATION ITEMS
Nil
8. NEXT MEETING The next CEO Performance Review Panel meeting will be held on a date to be determined at 63 Mount Barker Road, Stirling.
9. CLOSE MEETING
6. OFFICER REPORTS – DECISION ITEMS
6.1. CEO Performance Review (Confidential)
6.2. CEO Remuneration Review (Confidential)
6.3. CEO Key Performance Indicators
4 CEO PERFORMANCE REVIEW PANEL COMMITTEE
MINUTES OF MEETING TUESDAY 1 JULY 2015 63 MT BARKER ROAD STIRLING
Presiding Member 30 September 2015
Members: Presiding Member Councillor Jan-Claire Wisdom
Mayor Bill Spragg
Councillor Jan Loveday
Ms Paula Davies
In Attendance
Andrew Aitken Chief Executive Officer
Megan Sutherland Manager Organisational Development
Lachlan Miller Manager Governance & Risk
Pam Williams Minute Secretary
1 Commencement The meeting commenced at 3.06pm.
2 Apologies/Leave of Absence
2.1 Apology Cr Andrew Stratford
2.2 Leave of Absence Nil
3 Previous Minutes
3.1 CEO Performance Review Panel Committee – 18 March 2015 Moved Cr Jan Loveday S/- Mayor Bill Spragg
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That the minutes of the meeting held on 18 March 2015 as supplied, be confirmed as an accurate record of the proceedings of that meeting. Carried Unanimously
4 Delegation of Authority The CEO Performance Review Panel operates in accordance with the relevant sections of the Local Government Act 1999, and its Terms of Reference.
5 CEO PERFORMANCE REVIEW PANEL COMMITTEE
MINUTES OF MEETING TUESDAY 1 JULY 2015 63 MT BARKER ROAD STIRLING
Presiding Member 30 September 2015
5 Declaration of Interest by Members of Council Nil
6 Reports
6.1 CEO KPI Update Moved Ms Paula Davies S/- Cr Jan Loveday
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That the Panel resolves:
1. That the report be received and noted
2. To recommend to Council to adopt the revised KPI timeframes as follows:
2.1 KPI 2 (the development of a District Master Plan), recommending a change in timeframe from June to August 2015
2.2 KPI 3 (the development of a Precinct Planning & Placemaking Concept), recommending a change in timeframe from June to August 2015
2.3 KPI 4 (producing an Economic Development Strategy),
recommending a change in timeframe from June to September 2015.
Carried unanimously
4.06pm The meeting adjourned for a short break 4.11pm The meeting resumed
6 CEO PERFORMANCE REVIEW PANEL COMMITTEE
MINUTES OF MEETING TUESDAY 1 JULY 2015 63 MT BARKER ROAD STIRLING
Presiding Member 30 September 2015
6.2 Confidential Items
6.2.1 Appointment of Consultant to undertake CEO Performance Review – Exclusion of the Public Moved Mayor Bill Spragg S/- Cr Jan Loveday
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Pursuant to section 90(2) of the Local Government Act 1999 the Panel orders that all members of the public, except:
Minute Secretary, Pam Williams be excluded from attendance at the meeting for Agenda Item 6.2.2. The Panel is satisfied that, pursuant to section 90(3)(d) of the Act, the information to be received, discussed or considered in relation to the Agenda Item 6.3 is information of a confidential nature (not being a trade secret) the disclosure of which could reasonably be expected to prejudice the commercial position of the person (firm) who supplied the information and/or convey a commercial advantage on a third party. The Panel is satisfied that the principle that the meeting be conducted in a place open to the public has been outweighed in the circumstances because consideration of the item in a public forum would unreasonably disclose information of commercial sensitivity of the consultants that provided a proposal. Carried unanimously
Moved Mayor Bill Spragg S/- Cr Jan Loveday
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That the meeting adjourn for 30 minutes.
Carried unanimously
4.31pm The meeting adjourned for 30 minutes. 5.01pm The meeting resumed.
8 CEO PERFORMANCE REVIEW PANEL COMMITTEE
MINUTES OF MEETING TUESDAY 1 JULY 2015 63 MT BARKER ROAD STIRLING
Presiding Member 30 September 2015
7. Next Meeting The next CEO Performance Review Panel Committee meeting will be held on Wednesday 30 September 2015, 3.00pm, at 63 Mt Barker Road Stirling.
8. Close Committee meeting The meeting closed at 5.36pm.
6.2.3 Appointment of Consultant to undertake CEO Performance Review
Item: 6.1 Originating Officer: Megan Sutherland, Manager Organisational Development Subject: 2015 CEO 360 Degree Report (Performance Review)
RECOMMENDATION
1. 2015 CEO 360 Degree Report (Performance Review) – Exclusion of the Public That:
a) Under the provisions of section 90(2) of the Local Government Act 1999 an order is made that the public be excluded from the meeting, with the exception of:
CEO, Andrew Aitken
Acting Manager Governance and Risk, Andrea Sargent
Minute Secretary, Pam Williams in order to consider Agenda Item 6.1: 2015 CEO 360 Degree Report (Performance Review) in confidence.
b) the CEO Performance Review Panel (the Panel) is satisfied that it is necessary that the
public, with the exception of Council staff in attendance as specified in (a) above, be excluded to enable the Panel to consider the report at the meeting on the following grounds:
c) Section 90(3)(a) information the disclosure of which would involve the unreasonable disclosure of information concerning the personal affairs of any person (living or dead), being the personal affairs of the Chief Executive Officer, in that details of his performance review will be discussed.
d) accordingly, on this basis the principle that meetings of the Panel should be
conducted in a place open to the public has been outweighed by the need to keep the information or discussion confidential.
ADELAIDE HILLS COUNCIL CEO PERFORMANCE REVIEW PANEL WEDNESDAY 18 NOVEMBER 2015
AGENDA BUSINESS ITEM Item: 6.2 Originating Officer: Megan Sutherland, Manager Organisational Development Subject: 2015 CEO Remuneration Review
RECOMMENDATION
1. 2015 CEO Remuneration Review – Exclusion of the Public
That: a) Under the provisions of section 90(2) of the Local Government Act 1999 an order is
made that the public be excluded from the meeting, with the exception of:
Acting Manager Governance and Risk, Andrea Sargent
Minute Secretary, Pam Williams in order to consider Agenda Item 6.2: 2015 CEO Remuneration Review in confidence.
b) the CEO Performance Review Panel (the Panel) is satisfied that it is necessary that the
public, with the exception of Council staff in attendance as specified in (a) above, be excluded to enable the Panel to consider the report at the meeting on the following grounds:
c) Section 90(3)(a) information the disclosure of which would involve the unreasonable disclosure of information concerning the personal affairs of any person (living or dead), being the personal affairs of the Chief Executive Officer, in that details of his remuneration package will be discussed.
d) accordingly, on this basis the principle that meetings of the Panel should be
conducted in a place open to the public has been outweighed by the need to keep the information or discussion confidential.
ADELAIDE HILLS COUNCIL CEO PERFORMANCE REVIEW PANEL WEDNESDAY 18 NOVEMBER 2015
AGENDA BUSINESS ITEM Item: 6.3 Originating Officer: Megan Sutherland, Manager Organisational Development Subject: 2015-16 CEO Key Performance Indicators
SUMMARY The Employment Agreement (the Agreement) between Council and the Chief Executive Officer (CEO) provides for a performance review process. The review is to assess the CEO’s performance by reference to the Personal Evaluation System (PES) or other rating scale as agreed, contained in the Employment Agreement, against the CEO’s duties, position description and key performance indicators (KPI). The role of the CEO Performance Review Panel includes reviewing the performance of the CEO, in particular the performance against the KPIs and to undertake a review of the CEO’s KPIs to ensure they remain relevant and aligned to Council’s strategic objectives. The Panel can make a recommendation to Council regarding the suite of KPIs for 2015-16 which will become the subject of future performance reviews under the Agreement. RECOMMENDATION That the Panel:
1. Receives and notes the report
2. Recommends to Council to adopt the suite of KPIs as presented in Agenda Item 6.3.
1. GOVERNANCE
Strategic Management Plan/Council Policy Goal 4 A Recognised Leading Performer Key Issue 4.1 Leadership Key Action 4.1.4 Meet legislative, regulatory and good governance responsibilities and
obligations Legal Implications The CEO Performance Review Panel is a Sec 41 of Committee of Council under the Local Government Act 1999. This process needs to be undertaken appropriately to ensure the CEO is provided with a fair and consistent approach to performance reviews and that the process would stand up
Adelaide Hills Council CEO Performance Review Panel 18 November 2015 2015-16 CEO Key Performance Indicators
under scrutiny, as the tool and the outcomes of the review directly affect decisions made in relation to the CEO, his performance and remuneration discussions. Section 96 (Council to have a chief executive officer) of the Local Government Act 1999 Risk Management Implications Consideration of the report mitigates the risk of Consideration of the report mitigates the risk of: Deficient CEO performance review practices result in a lack of accountability and loss of stakeholder confidence.
Inherent Risk Residual Risk
Medium (3C) Medium (3D)
Note: there are many other controls that also assist in managing this risk.
Non-achievement of CEO KPI’s result in loss of community benefit and/or opportunities and/or stakeholder confidence.
Inherent Risk Residual Risk
High (3B) Medium (3C)
Note: there are many other controls that also assist in managing this risk.
Financial and Resource Implications Not applicable. Customer Service and Community/Cultural Implications There is a community expectation that the CEO will manage the organisation’s human, financial and physical resources to ensure they are utilised for the best outcomes for the community. Environmental Implications Not applicable. Community Engagement/Consultation Consultation on the proposed KPI’s for the 2014-15 year has been undertaken with the Council Members, CEO and with the Executive Leadership Team.
2. BACKGROUND CEO Performance Review Panel (the Panel) The Panel was established in May 2013 with the following role:
The CEO Performance Review Panel (the Panel) will provide advice to Council on matters related to the Chief Executive Officer and his performance by;
Adelaide Hills Council CEO Performance Review Panel 18 November 2015 2015-16 CEO Key Performance Indicators
Reviewing the CEO’s performance over the preceding twelve months, in particular the performance against the Key Performance Indicators (KPIs).
Undertake a review of the CEO’s KPIs to ensure they remain relevant and aligned to Council’s strategic objectives.
Receive and review six monthly updates of the CEO’s performance against the KPIs.
Determining the CEO’s remuneration for the following twelve months.
Consider any other related matters that may arise from the review.
CEO Employment Agreement The Employment Agreement (the Agreement) between Adelaide Hills Council and Andrew Aitken was executed on 17 August 2012 with the CEO commencing on 1 October 2012. Clause 13 of the Agreement contains the provisions for a performance review process with the following key feature regarding KPIs:
13.4 The performance review will review the CEO’s Position Description and any key performance indictors through the Personal Evaluation System.
2015-16 Key Performance Indicators
Preliminary work has been undertaken to develop an appropriate suite of KPIs for the CEO in the 2015-16 period. The KPIs has been considered to ensure alignment with Council’s Strategic and Corporate Plans.
The proposed suite of KPIs for completion and their Strategic/Corporate Plan references are as follows:
Big Picture Reference
1. Undertake an engagement led review of the current strategic plan that delivers an enticing, bold and aspirational direction for our community. This review is to produce a draft strategy for ratification by Council, that utilises a broad range of internal and external engagement methods.
2. Explore the options (including high level plans and cost estimates) associated with creating a multi-faceted civic centre and community precinct somewhere in our region, complete with civic space, community areas, staff accommodation and meeting rooms. Consideration will be given to benefits associated with potential government and non-government partners as part of any possible development. Provide a recommendation to Council.
3. Complete the review of wastewater servicing in liaison with SA Water and the EPA focussing on maximising sustainability, viability and community benefit, re-use and minimisation of environmental harm. Provide a recommendation to Council.
SP 2.3.1
4. Establish a database of ratepayers and community groups (with a reach of no less than 500 individuals) for a range of community consultation purposes and begin using this resource.
SP 3.1.3
5. Review Council's role, viability and community benefit in the provision of Retirement Villages and supported housing. Provide a recommendation to Council.
SP 1.1.2
Adelaide Hills Council CEO Performance Review Panel 18 November 2015 2015-16 CEO Key Performance Indicators
Other Community and Cultural Priorities Reference 6. Establish and commence a Community Leadership Program which identifies,
supports and develops community leaders and enables them to contribute to achieving sustainable and vibrant communities.
SP 4.11
7. Review the existing Sport and Recreation Strategy, including playgrounds and community owned recreation grounds. Provide the re-drafted strategy for Council’s ratification.
SP 1.2.1
Targets Reference
8. Ensure there is a focus on financial results by: 1. Achieving EOFY result for operating income and expenditure which is
within 1% of the BR3 forecast. 2. Achieve sustainable financial ratios (within Council agreed parameters
consistent with the reviewed LTFP).
9. Achieve at least the target performance for 75% of Tier 1 Customer Service Standards.
3. ANALYSIS
In making a recommendation to Council on the suite of KPIs to measure the CEO’s performance, the Panel may want to consider the degree to which the suite provides:
a holistic indicator of CEO performance
clarity in terms of what is to measured (and what success looks like)
how it will be measured
4. OPTIONS The Panel has the following options: 1. To recommend the suite of KPIs as presented above or amended for the Council’s
consideration 2. To recommend to Council an alternative suite of KPIs.
