4.4 The chief executive
Appointment and tenure
The Governing Body is responsible for appointing the chief executive [1]. This responsibility cannot be delegated to any other body or individual [2]. Council staff and external recruitment consultants may support the Governing Body in the recruitment process.
The appointed chief executive must be able to [3]:
- carry out the specific responsibilities of the role
- instil a spirit of service to the community among council employees
- promote efficiency and effective management
- be a responsible manager and ensure the council is a good employer
- uphold standards of integrity and conduct among employees
- promote equal employment opportunities.
Terms of appointment
- The initial appointment is for up to five years [4].
- A second term of up to two years may be offered following a formal review [5].
- A review must be completed at least six months before the end of the first term [6], unless the incumbent has advised they do not wish to be considered for reappointment [7].
Employment review process
A subcommittee of councillors undertakes the review on behalf of the governing body [8].
The review includes consideration of [9]:
- the chief executive’s performance
- their skills and alignment with the Governing Body’s needs
- any other relevant factors.
Following the review, and before the end of the chief executive’s term, the council, through the Governing Body, must either reappoint the incumbent for a second term of up to two years or advertise the vacancy [10].
If the role is advertised, the incumbent may reapply. The council must give their application due consideration [11]. There is no automatic right or expectation of reappointment [12]
Roles and responsibilities
Operational leadership
The chief executive is the administrative head of Auckland Council [13] and is responsible for:
- overall management of council operations
- delivering decisions [14] made by:
- the Governing Body
- local boards [15]
- co-governance entities.
Although the Governing Body is the employer and can issue directions, the chief executive has autonomy in how these are implemented, within the scope of their powers.
The chief executive also has a number of specific roles and responsibilities set out in legislation [16], which should be carried out within the budgets set in the long-term and annual plans.
Advising elected members
The chief executive provides advice to:
- the Governing Body and its committees
- local boards
- co-governance groups [17].
This advice may be provided:
- In person, by the chief executive or staff at meetings
- In writing, through formal reports or informal channels [18]. Where reports are provided, the council employee can attend the relevant meeting to answer questions or speak to the report.
The chief executive is responsible for ensuring that advice to elected members is of the highest possible quality.
Supporting local boards
The chief executive implements local board agreements [19] and provides the administrative facilities needed for each board to carry out its functions and duties [20].
While the chief executive is accessible to all elected members, regular contact with every member is not practical.
Communication with local boards is typically through:
- the Local Board Chairs Forum [21]
- email or written correspondence for specific matters.
Managing Auckland Council
The chief executive is ultimately responsible for the management of Auckland Council, including its administration, operations and service delivery.
It is the chief executive’s role to ensure:
- council responsibilities, powers and duties are properly exercised [22]
- council operations are managed efficiently and effectively [23]
- powers and functions are appropriately delegated
- the organisation has systems in place for:
- financial and service performance planning and reporting [24]
- maintaining a structure that reflects the separation of regulatory and decision-making functions and facilitates resolutions to conflicting objectives [25]
- maintaining the separation of regulatory and non-regulatory functions [26] and ensuring conflicting objectives are resolved transparently
- managing conflicts arising from the separation of functions with input from staff, such as Audit and Risk units.
Leading and managing staff
The chief executive is responsible for:
- employing staff and negotiating employment terms on behalf of the council [27], in line with council policies
- providing leadership to all staff [28]
- instilling a spirit of service to the community
- upholding integrity and good conduct [29].
This leadership role is delivered through mechanisms like:
- business planning, organisational strategies and performance plan
- codes of conduct, and staff policies and standards
Other statutory powers
The chief executive has powers conferred by various statutes.
For example, under the Public Works Act 1981, the chief executive can:
- sign certain documents [30]
- execute certificates of land grants [31]
Where these powers are conferred directly by law, the chief executive may delegate them to other council staff — unless legislation states otherwise [32].
The chief executive is also the council spokesperson for operational or staff matters.
Political neutrality
The chief executive is expected to be apolitical and not make political or policy decisions — this is the role of elected members.
The chief executive is often the ‘face of the council’ and may interact with central government politicians (including Ministers and their offices) on the council’s behalf.
Delegation of powers to the chief executive
The Governing Body and local boards have delegated many of their responsibilities, duties and powers to the chief executive. This is referred to as the general delegation [33].
These delegations are subject to:
- financial limits [34]
- local board delegation protocols
- council policies and reporting requirements [35].
Respecting governance boundaries
In exercising delegated powers, the chief executive must:
- respect the boundary between their operational role and elected members’ governance role
- refer a matter back to the original decision-maker (Governing Body, local board [36] or committee) if:
- the matter is contentious
- it requires political input because of the high degree of policy involved [37].
- the Governing Body, local board or committee can also request matters be referred back for a decision.
Relationship with the mayor
The working relationship between the mayor and the chief executive is important and guided by the following principles:
- A close, cooperative relationship based on mutual respect of roles and healthy dialogue helps the council operate effectively.
- The mayor cannot direct the chief executive but may represent the views of the Governing Body, including decisions the chief executive is required to implement. The mayor can discuss governance issues as they arise.
- The relationship is not one of direct employment.
- Formal performance matters are handled by the Governing Body.
- The mayor may raise informal concerns relating to the chief executive’s role.
- The chief executive follows a ‘no surprises’ approach and informs the mayor and Governing Body promptly of significant or controversial matters relating to the council’s operations or service delivery.
- The chief executive uses judgment in raising matters they have statutory or delegated responsibility for, especially for regulatory decisions. Independence and professionalism must always be maintained.
The style and frequency of contact between the mayor and chief executive develops according to the mayor’s preferences.
Chief executive remuneration
The chief executive’s remuneration is set by the Governing Body, with recommendations made by a relevant committee [38].
The committee considers:
- experience and performance
- achievement of performance objectives
- market comparisons and external advice (such as from the State Services Commission).
The chief executive’s total remuneration, including non-financial benefits, must be published in the council’s Annual Plan [39].
Footnotes
[1] Local Government Act 2002 s 42.
[2]Local Government Act 2002 Sch 7, cl 32(1)(e).
[3] Local Government Act 2002 Sch 7, cl 33.
[4] Local Government Act 2002 Sch 7, cl 34(1).
[5] Local Government Act 2002 Sch 7, cl 34(4).
[6] Local Government Act 2002 Sch 7, cl 35(1).
[7] Local Government Act 2002 Sch 7, cl 35(4).
[8] The Governing Body committee structure and the terms of reference for each committee are determined by the Mayor (see [Section 4.2(a)(iv))]) and are, therefore, subject to change.
[9] Local Government Act 2002 Sch 7, cl 35(2).
[10] Local Government Act 2002 Sch 7, cl 34(5).
[11] Local Government Act 2002 Sch 7, cl 34(6).
[12] Local Government Act 2002 Sch 7, cl 34(7).
[13] Local Government Act 2002 s 42(4).
[14] Local Government Act 2002 s 42(2)(a) and (2A)(a).
[15] See [section 5.2(c)] regarding the allocation of decision-making responsibilities between the governing body and local boards.
[16] Local Government Act 2002 s 42.
[17] Local Government Act 2002 s 42(2)(b) and (2A)(c).
[18] See [section 8.3(b)] regarding the relationship between council staff and elected members.
[19] Local Government Act 2002 s 42(2A)(b).
[20] Local Government Act 2002 s 42(2A)(d).
[21] This is subject to change.
[22] Local Government Act 2002 s 42(2)(c).
[23] Local Government Act 2002 s 42(2)(d).
[24] Local Government Act 2002 s 42(2)(e).
[25] Local Government Act 2002 s 42(3).
[26] Local Government Act 2002 s 39(c).
[27] Local Government Act 2002 s 42(2)(g) and (h).
[28] Local Government Act 2002 s 42(2)(f).
[29] Local Government Act 2002 Sch 7, cl 33(b) and (e).
[30] Including compensation certificates (s 19), requests for proclamation (s 26), requests to the Minister to set aside land for another local work (s 52), and certificates and notices of discharge (s 115).
[31] PWA s 109.
[32] Local Government Act 2002 Sch 7, cl 32B(1). Also see [Section 9.4] on delegations. The exceptions include powers delegated to the chief executive under the Resource Management Act or the Local Government (Rating) Act which cannot be sub-delegated.
[33] See [section 10.3.4] on delegations generally, and [section 5] and [section 6] on the functions and responsibilities of the governing body and local boards that cannot be delegated. The exceptions to the chief executive’s general delegation are set out in the Chief Executive’s Delegation Register.
[34] Auckland Council Delegations: Chief Executive Officer, General Delegation – Schedule 1, 23 June 2011 (GB/2011/123).
[35] General rules applying to all delegations - Auckland Council, 9.
[36] Where the power was originally delegated to the chief executive by a local board.
[37] Auckland Council Delegations: Chief Executive Officer, General Delegation, 23 June 2011 (GB/2011/123).
[38] The governing body committee structure and the terms of reference for each committee are determined by the Mayor (see [Section 4.2(a)(iv))]) and are, therefore, subject to change.
[39] Local Government Act 2002 Sch 10, cl 32.