1. Alma Vaitkunskienė CEO Vilnius Municipality 21-09-2016
RE-ORGANISATION OF MUNICIPAL ENTERPRISES: 14 MONTHS OF CHANGE MANAGEMENT
Alma Vaitkunskienė
CEO Vilnius Municipality

2. GOALS OF THE RE-ORGANIZATION OF MANAGEMENT OF COMPANIES OWNED BY THE MUNICIPALITY
Depolitisation of enterprises management;
Development of enterprises‘ managers remuneration system;
Professionalism in enterprises‘ management;
Measures which were introduced to increase efficiency and transparency of companies management.

3. LEGAL FRAMEWORK FOR RE-ORGANIZATION OF MANAGEMENT OF MUNICIPAL COMPANIES
Regulation for implementation of Vilnius City Municipality rights and interests in the companies owned by the Municipality were approved by Vilnius City Council (Decision No. 1-54, May 28, 2015). This regulation sets the general policy and requirements for the management of enterprises controlled by the Municipality and establishes basic principles of operation to all companies owned by the Municipality;
Decision of the Vilnius City Council On the formation of Asset Management Expert Group (Decision No. 1-65, June 17, 2015);
Regulation of the Asset Management Expert Group activity approved by Vilnius City Council (Decision No , July 15, 2015);
Order on approval of description of the procedure for the formation of Selection Committee, adoption of its Operational Rules and Selection of Candidates to be independent members of boards of enterprises controlled by the Municipality (CED, No , September 17, 2015);
Description of procedure for Selection of Candidates to the management board of Municipal company, issued by CED (Order No , July 20, 2015).

4. MODEL OF RE-ORGANIZATION OF MANAGEMENT OF MUNICIPAL COMPANIES
Asset Management Centre – a structural division of the Municipality assigned to coordinate the implementation of Municipal rights, interests and royalties in the companies controlled by the Municipality;
Experts‘ Group – a working group of independent experts providing recommendations to the Council, the Mayor, the CED and the Asset Management Centre for improving the operational effectiveness of the companies;
Selection Committee – advisory body operating on voluntary basis as an independent experts helping to select independent board members.

5. ASSET MANAGEMENT CENTER
Analyses and aggregates management information disclosed by the companies and provides conclusions and proposals to the Council, the Mayor, the CED;
Monitors and analyses the financial and non-financial indicators of activities of the companies and provides proposals to the Council, the Mayor, the CED regarding the improvement of the operational efficiency of companies;
Consolidates the best managerial practices of the companies, provides proposals to the Council, the Mayor, the CED regarding the improvement of policies, issues reports to the Council on the operation of the companies;
Performs monitoring and analysis of the application of the Description, approved by Decision No. 1-54, May 28, 2015 and submits recommendations related to it to the Council.

6. ASSET MANAGEMENT CENTRE
Performs technical supervision and submits the information to the CED, Experts Group and Selection Committee, thus facilitating its functions related to candidate selection to the boards, consolidates the reports of the management boards of the companies;
Present the reports on companies‘ return on equity (ROE) and indebtedness ratios targets fulfillment and presents them to the Experts‘ Group;
Collects a database of potential independent members of the enterprises controlled by the Municipality;
Supervises and within the respective powers seeks that board members undersign a written commitments not to disclose the know-how or confidential information related to the companies, etc.

7. ASSET MANAGEMENT EXPERTS‘ WORKING GROUP
Composed of 7 members – of good repute, high competence independent experts with extensive experience in managerial positions and knowledge in the areas such as strategic planning, change management and the financial management of enterprises. Appointed by the Council on the recommendation of the Mayor;
Decision power: of a recommendation nature, a rule "comply or explain" is applied.

8. ASSET MANAGEMENT EXPERTS WORKING GROUP
Provides recommendations to the Council, the Mayor, the CED regarding the enterprises controlled by the Municipality on the following issues:
strategic priorities;
formation of objectives and balanced scorecards;
methods of the assessment of companies‘ performance.

9. INDEPENDENT SELECTION COMMITTEE
Composed of 3 members – high competence experts with extensive experience and knowledge in the areas of personnel recruitment and management, strategic planning, response to the concerns of public interests, etc.;
Members are appointed by the CED;
Functions on the voluntary work basis;
Decision power: of a recommendation nature, a rule "comply or explain" is applied.

10. INDEPENDENT SELECTION COMMITTEE
On the recommendation of the Selection Committee, special requirements for the potential board members are established and members‘ selection to the boards of the enterprises controlled by the Municipality is executed;
Provides recommendations to the Asset Management Centre on the following issues:
conformity of the competences of the boards‘ and of the individual members of the boards‘ to the needs of the companies;
results of self – assessment of the boards and of the individual members of the boards;
policy of remuneration of the board members;
Reviews the self-assessment reports of the board members.

11. THE RESULTS OF THE RE-ORGANIZATION OF THE MANAGEMENT OF COMPANIES CONTROLLED BY THE MUNICIPALITY
Growing trust of the society;
Improving quality of services;
Justified and optimum revenue and expenditures of the enterprises, reduction of losses and achieving the operational profitability;
Decreasing debt of the Municipality.

12. INFORMATION ON THE VILNIUS CITY MUNICIPALITY CONTROLLED COMPANIES
Eil. nr.
Company’s name
Main acivities
Vilnius City Municipality‘s share
Assets million EUR
Sales as of million EUR
Sales as of million EUR
Nr. 1 2 3 4 5
JSC „Start Vilnius“
Real Estate management, Investment projects management
100,0%
20,87
1,06
3,84
JSC „VVK“
Management and supervision of construction projects
37,30
3,01
2,89
JSC „Vilniaus vandenys“
Drinking water, Water services, sewage management
95,3%
125,31
35,95
39,82
SC „Vilniaus šilumos tinklai“
From 2017 on activities, related to provision of central heating to Vilnius residents
99,4%
108,87
13,90
13,25
MC „Vilniaus planas“
City planning and related services
100%
3,65
2,50
3,03 6
MC „Susisiekimo paslaugos“
Services related to public transportation (tickets, control, pricing, management of parking plots, etc.)
52,95
58,55
56,83 7
JSC „VVT“
Public transportation
 70,08
52,35 
50,34  8
JSC „Grinda“
Public areas cleaning, management, street surface maintenance, rainwater system management, etc.)
34,25
22,74
21,32 9
JSC „VGAET“
Street lighting, management of electric lighting system in the City of Vilnius
23,27
4,23
4,25 10
MC „Vilniaus miesto būstas“
Social Housing, Municipal housing services
50,80
0,49
1,10 11
JSC „VAATC“
Waste landfill management, waste recycling
74,9%
53,41
6,35
6,22

13. THANK YOU FOR ATTENTION
GOOD LUCK!