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Purpose

The purpose of this policy is to clearly establish Council’s commitment to shared services and to clearly document the processes to be undertaken when entering into shared services agreements or collective procurement agreements to comply with the requirements of the Act.

Scope

This policy applies to all agreements and collective procurement activities entered into by Council for the delivery of shared services.

Definition and Terms

Collective Procurement: An agreement between two or more councils to enter into a procurement agreement where a lead council is nominated, as prescribed under the Local Government (General) Regulations 2021. The relevant legislative provisions are to be considered and a formal agreement entered into prior to this type of arrangement commencing.

Legislation and Reference

Section 216 of the NT Local Government Act 2019
Part 2, Division 12 Subdivision 2 Local Government (General) Regulations 2021

Policy Statement

1. Principles
   • 1.1
     Council is committed to act in an economically efficient manner, to be socially and environmentally responsible and to provide innovative, high-standard services.
   • 1.2
     Council will consider whether or not a shared services agreement or collective procurement agreements with other public or private bodies is desirable on a case by case basis.
   • 1.3
     Council will also consider requests and proposals for shared services agreements from external stakeholders. The ultimate discretion of whether or not to enter into a shared services agreement lies with Council and its delegated officers as outlined in the Delegations Register.
   • 1.4
     The Council may consider entering into a shared services agreement when:

     • a role in Council is capable of being undertaken by a person employed by another council (under a shared resourcing agreement);
     • a council service that cannot be supplied from within Council is able to be delivered by another council;
     • a council service can be supplied or delivered in another council’s area, by agreement with that council; or
     • Undertaking procurement of an asset (such as heavy machinery), which can be collectively procured under a single procurement tender process; or
     • The use of an asset can be shared between councils; or
     • It is efficient for Council to enter into an agreement with other councils to undertake a project, in accordance with legislative requirements, where one council is approved by every other participating council to take the lead on the project and make decisions on behalf of all the participating councils.
2. Shared Services Agreements
   • 2.1
     Potential shared services arrangements with external bodies shall be assessed by the CEO or Director Corporate Services. Requests for such arrangements may arise from internal business units, as well as from external parties.
   • 2.2
     Proposals for shared services arrangements shall be assessed against the following requirements and considerations including but not limited to:

     • Access to skills and expertise;
     • Potential to procure savings from economies of scale;
     • Cost benefit analysis of entering into the agreement;
     • Community outcomes;
     • Applicable law;
     • Current and potential contractual and agreement obligations;
     • The public interest;
     • Current and potential operational requirements;
     • Service level standards to be met;
     • Period of time of agreement and whether it is one-off or ongoing for a period of time;
     • Risk assessment and mitigation strategies;
     • Work, Health and Safety requirements;
     • If access to council information is required under the agreement, the control and protection of council information (ensuring access to sensitive council information is protected);
     • Current and potential capacity of all parties to deliver stated and desirable outcomes;
     • Change management process that may be necessary;
     • Employment opportunities that may arise or be reduced as a result of entering into an agreement;
     • Any other economic, social and cultural considerations.
   • 2.3
     Should the CEO or Director Corporate Services determine that a shared services arrangement is desirable; the responsible business unit shall develop a proposed agreement as directed. This must be in writing and clearly set out all relevant details.

     • Note: Collective procurement agreements must be in writing and contain certain details pursuant to regulation 44 of the Local Government (General) Regulations 2021.
   • 2.4
     The final shared services agreement requires the review and approval of the CEO or Director of Corporate Services before it is presented to Council (depending on nature of matter) for adoption and execution.
3. Annual Reporting
   • 3.1
     A list of all shared services and collective procurement agreements that operated during the financial year, are to be listed in Council’s annual report.
   • 3.2
     From time-to-time the Council may set one or more performance indicator measurements and expectations for shared services in Council’s annual plan and actual performance comparatives must be reported in the subsequent annual report for the same financial year(s).

Review History