LGA Governance Review – Project Plan

Title: / LGA Governance Review
Background / Context: / In September 2015, the LGA Board resolved to undertake an independent review of the structure of the LGA itself with particular reference to:
  • the role of the LGA Board in the governance process;
  • the relationship of the LGA Board with 'wholly owned' entities such as the LGA Mutual Liability Scheme, LGA Workers Compensation Scheme and LGA Procurement;
  • reporting obligations of LGA Administration to the LGA Board;
  • the appropriateness of the current practice of recommending persons for appointment to unassociated organisations; and
  • delegated to the LGA Executive Committee authority to endorse a scoping study which will be presented at its meeting to be held on 15 October 2015.
In October 2015, the LGA Executive Committee approved the formation of a local government leadership group to direct a scoping study into the governance of the LGA.
Since these resolutions, a number of other matters have been raised by members that are matters of governance. They are:
  • Regional / metropolitan representation on the LGA Board
  • The role, structures, funding and operation of regional organisations (SAROC, MLGG, regional LGA’s) and various subsidiaries that have been established to support groups of councils
  • The appointment and role of deputy members to the Board
  • Board member allowances
  • Consideration of alternative mechanisms for the appointment of a metropolitan and country CEO to the Local Government Research and Development Scheme
  • The review of motions submitted by Councils for consideration at OGMs and AGMs
  • A comprehensive review of the LGA Governance Manual
The original resolution and the matters raised since the original resolution demonstrate the need for a fundamental review of the “constitution and governance” of the LGA.
Objective: / Based on the above, a starting “scope” for this project is stated to be an analysis and review of the governance framework required to enable the LGA to adequately fulfill its key functions as outlined in the LGA’s Constitution, namely:
  1. to provide leadership for local government in SA.
  2. to maintain key relations with the State and Commonwealth governments, and
  3. to undertake appropriate business to maintain the economic health of local government in SA.
The outcome of this review will be the development of a high level operating model for the LGA.
Principles to be upheld in the conduct of this project include:
  • Continued 100% council membership of the LGA is important from a leadership and key relations perspective. Speaking with one voice as a sector will deliver enhanced outcomes.
  • Comprehensive member and stakeholder (including the State Government) input will be critical to ensure that any outcome recommended has the potential for broad support
  • Openness and transparency to all stakeholders in order to manage expectations, and retain confidence in the operations of the LGA
  • Compliance with all legislative provisions in terms of changes to the LGA Constitution

Scope (Inclusions and Exclusions): / Included in this review are all matters raised in the background / context as well as:
  • A full review of the LGA Constitution
  • The structure / composition of the LGA Board, its Committees and its regional organisations (SAROC, MLGG, regional LGA’s)
  • The relationship between the LGA and its membership; methods of engagement and collaboration
  • The relationship between the LGA and other levels of government and other stakeholders; methods of engagement and collaboration
  • Relationship with the Secretariat
Excluded:
  • Examination of Regional Governance models as options to amend the Local Government Act to enable the creation of flexible structures for regional collaboration between councils (including boundary reform) are being addressed via a separate body of work.
  • Review of the LGA Schemes as this body of work is being undertaken via a separate project
  • Review of the LGA Subscription formula as this is being undertaken via a separate project
  • Review of LGAP as this is being undertaken via a separate project.
  • Identification of the LGA’s ‘value proposition’ (commercial return on investment). This body of work will be undertaken following the implementation of initial governance reforms implemented as a result of this project. It will include a review of:
  • LG Research & Development Scheme, and the operations of the Scheme
  • Commercial operations, fee for service, sources of funding, major grant funded activities
  • Strategic and operational planning processes, and identification of service priorities,

Strategic Alignment / This project aligns with the LGA Strategic Plan in that it will improve LGA governance and operations with a focus on people, finances and our members.
Related Initiatives / Other projects currently being undertaken that may have impact include:
- LGA Subscriptions Review. The connection with this project relates to the question of LGA ‘value’ currently being discussed by the sector.
- LGA Schemes Review. The relationship between the Board and the Schemes will be examined as part of this review, as well as the development and implementation of appropriate governance arrangements.
- LGAP Review. The most appropriate business model, and relationship with the LGA Board will be examined as part of the LGAP review currently being undertaken.
- Regional Governance Framework being developed identifying options to amend the Local Government Act to enable the creation of flexible structures for regional collaboration between councils.
Target Outcomes (Benefits) / Expected outcomes of the project in terms of benefits it will provide to the LGA and the sector include:
  • An LGA governance / Board structure that is representative of local government in SA, drawing on the right skills and experience for the right tasks at the right time
  • A sharper focused governance from the LGA which in turn will contribute to the sector’s ability to represent and advocate for local government in SA, taking in to account individual communities of interest and the sector as a whole
  • Improved relations with other levels of Government
  • More robust and simplified governance arrangements for the LGA’s wholly owned entities, contributing to the economic health of local government in SA

Critical Success Factors / A benefit realisation project will be undertaken following the implementation of governance reforms. Indicators of success will be refined as part of this work. They may include
  • LGA Policies represent the interests of individual communities and the sector as a whole
  • Local government leadership ensures that a broad cross section of the local government community is involved in the development and advocacy of LGA Policy
  • Quality of relationship between local and other levels of government. Instances of partnership approaches.
  • Business principles and acumen applied to LGA business activities. Strength of governance arrangements, and resultant business performance.
  • Feedback from councils indicating high satisfaction levels with LGA governance
  • Feedback from the State Government indicating high satisfaction levels with LGA governance

LGA of SA LGA Governance Review Project Plan Page 1 of 4