10 Council’s Membership of the Municipal Association of ... · The MAV also offers training and...

Council Meeting Agenda 24/08/15

10 Council’s Membership of the Municipal Association of Victoria (MAV)

Abstract The Municipal Association of Victoria (MAV) is the statutory peak body for Victorian local government. According to the MAV its role is to:

advocate local government interests build the capacity of Victorian councils facilitate effective networks initiate policy development and advice support councillors promote the role of local government.

Services provided by the MAV include:

specialist advice and information councillor development opportunities insurance protection including risk, legal and claims advice CEO performance appraisal and recruitment advice governance support group procurement.

Council’s MAV membership fees for 2015-16 are $63,961 excluding GST and membership provides Council with a range of benefits and opportunities. The benefits and opportunities of MAV membership are taken up by councillors and Council staff to different degrees when looked at department-by-department or from time-to-time. Overall, the tangible and intangible benefits of the MAV’s membership offering to Council, and the subsequent take-up by councillors and Council staff, is considered to offer fair value to Council.

Officers' recommendation That Council resolve to renew its membership with the Municipal Association of Victoria for 2015-16. Document information

City of Boroondara Membership of MAV of 27


Responsible manager: David Thompson

Governance ___________________________________________________________________ 1. Purpose

The purpose of this report is for Council to consider renewing its membership of the Municipal Association of Victoria (MAV) for 2015/16.

2. Policy implications and relevance to council plan

Council's membership of the MAV primarily relates to Council’s strategic objectives under the key theme of ‘Responsible Management’ in the Council Plan including Strategy 19 Financial management, and Strategy 18 People support and development.

The key role of the MAV is to represent and promote the interests of Victorian local government and their particular activities and membership may therefore relate to many different strategies and objectives from the Council plan.

3. Background

The MAV is the statutory peak body for Victorian local government. Frankston City Council is the only non-member Council having suspended their membership in 2015-16.

According to the MAV:

Their role is to Their services include: advocate local government

interests build the capacity of councils facilitate effective networks initiate policy development and

advice support councillors promote the role of local

government.

specialist advice and information councillor development

opportunities legal advice and insurance

protection CEO performance appraisal and

recruitment advice governance support group procurement.

The MAV recently wrote to the Chief Executive Officer regarding membership renewal for 2015-16, outlining their achievements with respect to advocacy and capacity building efforts and a summary of membership benefits (Attachment 1). In particular, the MAV highlighted:

Advocacy for the State Government to remove the freeze on the Financial Assistance Grants;

Advocacy for the Federal Government to continue funding towards 15 hours of kindergarten for the next two years;

Negotiated with Commonwealth and State Government to recognise the role of local government as a key strength of the HACC program and secured an increase in the unit price paid for services;

Advocated for a rate capping model that used an indexation representative of the financial needs and cost pressures experienced by council; and

Established 'Councils of the Future' Program to provide council's with a greater understanding of the strategic options they will face in the future



The MAV subscription fees for 2015-16 are $63,961 excluding GST and Council will become a non-participating member if the annual subscription fees are not paid before 30 August 2015.

Council’s current MAV representatives are Councillor Ross and alternate Councillor Voce. Councillor Ross has been Council’s MAV Representative since 2009 and is also currently the Metropolitan Deputy President of the MAV Board, representing the Metropolitan South East Region.

VAGO report and MAV response

In February 2015 the Victorian Auditor- General tabled an audit report which assessed the effectiveness, efficiency and economy of the support activities undertaken to assist councils to carry out their duties and obligations to the community.

The audit was particularly critical in its findings relating to the legislative and broader governance arrangements of the MAV. The audit found that there is limited scrutiny of MAV's Rules, limited independent review of its performance beyond annual reporting and no clear understanding of whether MAV is delivering value for money.

The report and its recommendations were discussed at the MAV Board meeting held on 10 April 2015. The Board recognised that the report identified a number of areas in which the Board could improve. Further the Board resolved to note the important and serious nature of the matters raised in the VAGO report and to fully address and appropriately respond to them all.

To assist this response an MAV Action Plan outlining proposed actions and estimated completion dates was approved by the MAV Board and distributed to the Victorian Auditor General and all member councils.

The MAV Board has also resolved to appoint an external party to undertake review work of actions taken in response to the VAGO report, an expression of interest process has commenced with Deloitte, Ernst & Young, KPMG and PWC for this work.

The Chief Executive Officer wrote to the MAV to express Council's concerns regarding the VAGO report and the MAV's response was received in May 2015. Copies of the correspondence are included at Attachment 2.

Frankston City Council has cited concerns arising from the VAGO report and the MAV's response as the basis for suspending its financial membership for 2015-16.



4. Outline of key issues/options

Whilst the MAV has a statutory role as the peak body for local government, membership is optional.

Council benefits from MAV membership in four key areas:

1. Access to specialised products and services; 2. Access to information, advice and networks; 3. Access to professional development and training; and 4. Opportunities to inform/influence advocacy.

1. Access to specialised products and services

The MAV have advised that financial membership is a prerequisite to accessing specialised MAV products and services including MAV Insurance and MAV Procurement. The MAV Technology Procurement Panel is also a members-only benefit.

Council's MAV membership offers value to Council through access to tailored products through MAV Insurance; and through access to contracts and suppliers via MAV Procurement, including:

Discounted access to Australian Standards Provision of Call Handling and Associated Services Discounted software licensing Vehicles (including light and heavy fleet vehicles) Social research via ID Profile PostBillPay payment services Energy Efficient Street Lighting.

The combined purchasing power of local government enables MAV Procurement to seek better value than individual Councils may be able to achieve individually. For example, the Information Technology Department advises software licensing discounts available through MAV Procurement have been better than those achievable elsewhere in the market. A recent WAN services contract tendered through the MAV Technology Procurement Panel also realised significant savings for council.

It is noted that in the absence of MAV membership, Council could continue to access alternative procurement schemes through Procurement Australia and the State Government (including State Purchase Contracts, Whole of Victorian Government Contracts and the Construction Suppliers Register).

2. Access to information, advice and networks

Information and advice from the MAV is accessed through regular publications such as:

The MAV Bulletin Media releases from the State and Federal governments MAV Technology Yammer Group and other publications Email subscriptions / circulars (e.g. from forums and project groups).



The MAV also provide issue specific resources such as:

Access to Australian Standards via the MAV-SAI program Surveys and research about Asset Management issues The Emergency Management Online Update Benchmarking on sector positions or processes (including on planning

issues, governance processes and policies) Annual human resource benchmarking survey Briefings on HACC and Aged Care Reforms Briefings on the School Crossing Supervisor Subsidy Scheme Briefings on local government elections

Feedback from staff varies regarding the usefulness of the various publications and circulars produced by the MAV as a means of keeping up to date with legislative changes, news and issues of relevance to the sector. Likewise feedback indicates direct access to information, advice and briefings is beneficial, although too different degrees for different departments.

Feedback from Councillors is similarly varied as to the benefit of information circulated by the MAV.

Membership also benefits staff through the opportunity to participate in committees, networks and groups facilitated by the MAV including:

- MAV Technology Group - MAV GIS Coordination Project

Information Technology

- Emergency Management Forum

- Domestic Animals Act ReviewLocal Laws

- Early Years Advisory Committee - MCH Networks

Family, Youth and Recreation

- Human Services Committee Meeting - Positive Ageing Network

Health, Ageing and Disability Services

- Planning Working Group Statutory Planning - Environment Committee - Environment Policy Forum

Environment & Sustainable Living

- STEP Asset Management and Financial Sustainability Program

Asset Management

- Electricity Safety (Electric Line Clearance) Regulations

Parks and Gardens

Participation differs by department and from time to time. Certainly in some instances, officers are quite active in MAV Committees or special interest groups. It has also been reported that involvement in committees and networks has given Council access to information that would otherwise have been unavailable to Council.

At a higher level, Council is currently represented on the MAV Board and ALGA Board, which provides insights into the current operations and future directions of both organisations, as well as insights into the experiences and issues being confronted at other Councils that come to their attention.



It is difficult to attribute a dollar value to the benefit that access to information, advice and networks offers Council enabling comparison with the costs of membership. Similarly, it is difficult to measure the potential impact that losing access to these networks may have as staff are active in a range of professional networks that may or may not compensate for the loss of direct access to the MAV and MAV based groups.

3. Access to professional development and training

Events, training courses and other professional development opportunities are primarily a members-only benefit however some events (e.g. major conferences) are accessible to non-members at a premium price.

Staff take-up of events and training activities run by the MAV includes:

Age friendly Community and Local Government National Conference Smart Urban Futures Conference School Crossing Supervisor Forum Social Enterprise and Local Government Conference 2015 Future of Local government National Summit Small Town Sexy - The Art of Revitalising Small Towns & Communities Contracts Management and Managing Contractor OH&S Carbon Price and Use of Crisis Works for Emergency Management Health, Ageing and Disability events Strategic Planning events Young Leadership Program GIS Co-ordination Workshop Program National Infrastructure & Asset Management Conference.

The MAV also offers training and networking opportunities for councillors throughout the year.

As Boroondara's MAV Representative and an MAV Board Member, Councillor Ross is a regular participant in MAV activities. Other key events for Councillors include the MAV State Council meetings attended by Council’s MAV representative twice annually and the Councillor and Mayoral Development Weekend programs.

Alternative training and professional development options are available in the marketplace. Not all offer the same level of tailoring to the local government sector as MAV offerings have, or the incidental networking benefits of attending with councillors or staff from other local governments.

4. Opportunity to inform/influence advocacy by the peak bodies

Council is a regular contributor of motions to MAV State Council meetings which influence the MAV's advocacy, on topics such as:

Apartment Design Code Newspaper advertising requirements Regulation of Strategic Resource Plans Assistance for people affected by heatwave Enhanced proactive VicRoads asset maintenance programs



Bicycle safety Library funding The School Focused Youth Service (SFYS) program Subsidies for HACC and Meals-on-Wheels services ESD principles in State Planning Provisions. Landfill Levies Aged Care Reforms Sustainable Street Lighting Vulnerable Persons Register VCAT (Local policy, plans in appeal proceedings) Infringements Court (Perin) Building Regulations

Council also provides feedback to the MAV to inform their advocacy positions. In the past, Council has provided input on:

The submission to the Royal Commission into Family Violence The submission to Office of Living Victoria's Whole of Water Cycle

Management Metro Framework discussion paper The response to Building Enforcement - Draft Memorandum of

Understanding between councils and the Victorian Building Authority The MAV's Hardship Policy Guidelines Various planning issues Integrated transport infrastructure plan Kindergarten programs Home and Community Care Public library funding Emergency Management The Victorian State-Local Government Agreement Review of the Local Government Act Regulations Local Government election issues

Council also has an opportunity to influence advocacy through its representative to the MAV. Council’s representative has the opportunity (as do all councillors) to participate on MAV committees and meet with Council’s regional board member and executive staff (Councillor Voce is a member of the MAV Arts & Culture Committee) This presents an opportunity for Boroondara to raise matters of importance or significance to the City of Boroondara, and also to advocate formally and informally, the ‘Boroondara perspective’ on matters being considered by the MAV. Council’s representative also participates in debates and voting at MAV State Council meetings.

As the Metropolitan Deputy President for the Metropolitan South East Region, the Mayor, Councillor Ross, also has the opportunity to proactively raise Boroondara’s perspectives and concerns directly at Board meetings as well as informally through interactions with other Board members, MAV staff, and other Councils through their respective MAV representatives.



Council’s MAV membership also provides affiliated membership with the Australian Local Governance Association (ALGA) enabling Council’s MAV representative to participate in debates and votes on matters of national significance at the annual ALGA National General Assembly. Councillor Ross also serves as one of two MAV representatives on the ALGA Board.

The business, decisions and policies of local governments generate divergent views amongst their respective constituents. It is therefore to be expected that when these issues are confronted by the MAV, they will generate divergent views amongst their 78 members. It is unsurprising in this context that the MAV at times has difficulty satisfying individual members that their views are being adequately represented.

If Council was to terminate its membership, the MAV would continue to speak as the peak body for the sector. As a non-member however, Council would lose what capacity it has to influence the MAV’s advocacy position.

It is also noteworthy that at times, Council has been advised by State Government Ministers to direct its advocacy through the MAV, emphasising the relevance of belonging to a peak body for advocacy purposes.

Membership of the MAV therefore offers Council an opportunity to be “in the room” and use formal and informal opportunities to align the MAV’s directions and advocacy with Boroondara’s.

5. Consultation/communication

The Executive Leadership Team has been consulted in the preparation of this report about their interactions with the MAV.

6. Financial and resource implications

MAV membership fees for 2015/16 are $63,961 excluding GST, provision for which is included in the Governance Department's operational budget.

Terminating Council's MAV membership will not have short term implications for existing procurement contracts through MAV Procurement or MAV insurance. The financial implications of losing access to MAV Procurement, including the Technology Procurement Panel, would only be assessable in the context of contracts being placed for tender in the market.

There may be additional, less tangible resource implications for some departments unable to access information, research and/or advice from the MAV or the MAV networks they belong to. As staff are active in a range of professional networks independent of the MAV and their activities, it is difficult to predict what impact loss of direct access to the MAV and MAV based groups may have on staff and their workload.

Loss of access to MAV events and training activities may be offset by alternative training and professional development options available in the marketplace. The financial implications of using other providers is assessable only as demand for training and professional develop materialises.



7. Governance issues

Officers involved in the preparation of this report have no conflicts of interest to disclose.

There are no implications for rights prescribed in Victorian Charter of Human Rights and Responsibilities anticipated to flow directly from the decision to renew, or not renew, Council’s membership of the MAV.

8. Social and environmental issues

There are no social or environmental issues anticipated to flow directly from the decision to renew, or not renew, Council’s membership of the MAV.

Manager: David Thompson, Governance Report officer: Andrew Dowling, Coordinator Governance


Attachment 1

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______________________________________________________________________________________Council Meeting Agenda 24/08/15


Attachment 2

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