I hereby give notice that an ordinary meeting of the Strategic Procurement Committee will be held on:

 

Date:

Time:

Meeting Room:

Venue:

 

Wednesday, 11 July 2018

9.30am

Room 1, Level 26
135 Albert Street
Auckland

 

Komiti Mahi Āta Torotoro Rawa /

Strategic Procurement Committee

 

OPEN AGENDA

 

 

 

MEMBERSHIP

 

Chairperson

Deputy Mayor Bill Cashmore

 

Deputy Chairperson

Cr Ross Clow

 

Members

Cr Dr Cathy Casey

 

 

Cr Linda Cooper, JP

 

 

Cr Alf Filipaina

 

 

Cr Penny Hulse

 

 

Cr Daniel Newman, JP

 

 

 

 

Ex-officio

Mayor Hon Phil Goff, CNZM, JP

 

 

(Quorum 4 members)

 

 

 

Michelle Judge

Governance Advisor

 

4 July 2018

 

Contact Telephone: +64211950262

Email: michelle.judge@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

 

 



Terms of Reference

 

 

Responsibilities

 

The committee is established to assist the chief executive to undertake the management procedure of ensuring sound procurement processes are followed in relation to procurement of goods and services necessary to deliver on the work programme and operations outlined in the council’s adopted Annual plan.

 

It will ensure that reasonable purchasing procedures have been followed in awarding contracts and will provide an efficient mechanism for documenting the approvals for those contracts.

 

Within a framework where contracts are an operational matter delegated to the chief executive, this committee will consider all contracts beyond the chief executive’s financial delegations.  The chief executive may refer contracts within his financial delegations which are sensitive or may impact on the reputation of the council.

 

The chief executive has power to award contracts up to $20 million alone and the power to award contracts up to $22.5 million jointly with the mayor and Finance and Performance Committee chair.

 

The committee will have responsibility for:

 

·    awarding of contracts of $22.5 million or greater

·    awarding of contracts less than $22.5 million which are sensitive or may impact on the reputation of the council if the chief executive refers the matter to the committee

·    oversight over the procurement processes and procedures.

 

From time to time the committee may advise the chief executive and council on changes to the procurement and contracts probity procedures.

 

Powers

 

All powers necessary to perform the committee’s responsibilities.

 

Except:

 

(a)     powers that the Governing Body cannot delegate or has retained to itself (section 2)

(b)     where the committee’s responsibility is limited to making a recommendation only

(c)     the power to establish sub-committees

 


Exclusion of the public – who needs to leave the meeting

 

Members of the public

 

All members of the public must leave the meeting when the public are excluded unless a resolution is passed permitting a person to remain because their knowledge will assist the meeting.

 

Those who are not members of the public

 

General principles

 

·         Access to confidential information is managed on a “need to know” basis where access to the information is required in order for a person to perform their role.

·         Those who are not members of the meeting (see list below) must leave unless it is necessary for them to remain and hear the debate in order to perform their role.

·         Those who need to be present for one confidential item can remain only for that item and must leave the room for any other confidential items.

·         In any case of doubt, the ruling of the chairperson is final.

 

Members of the meeting

 

·         The members of the meeting remain (all Governing Body members if the meeting is a Governing Body meeting; all members of the committee if the meeting is a committee meeting).

·         However, standing orders require that a councillor who has a pecuniary conflict of interest leave the room.

·         All councillors have the right to attend any meeting of a committee and councillors who are not members of a committee may remain, subject to any limitations in standing orders.

 

Independent Māori Statutory Board

 

·         Members of the Independent Māori Statutory Board who are appointed members of the committee remain.

·         Independent Māori Statutory Board members and staff remain if this is necessary in order for them to perform their role.

 

Staff

 

·         All staff supporting the meeting (administrative, senior management) remain.

·         Other staff who need to because of their role may remain.

 

Local Board members

 

·         Local Board members who need to hear the matter being discussed in order to perform their role may remain.  This will usually be if the matter affects, or is relevant to, a particular Local Board area.

 

Council Controlled Organisations

 

·         Representatives of a Council Controlled Organisation can remain only if required to for discussion of a matter relevant to the Council Controlled Organisation.

 

 

 


Strategic Procurement Committee

11 July 2018

 

ITEM   TABLE OF CONTENTS                                                                                         PAGE

1          Apologies                                                                                                                        7

2          Declaration of Interest                                                                                                   7

3          Confirmation of Minutes                                                                                               7

4          Petitions                                                                                                                          7  

5          Public Input                                                                                                                    7

6          Local Board Input                                                                                                          7

7          Extraordinary Business                                                                                                7

8          Information report - 11 July 2018                                                                                 9

9          Fleet optimisation update                                                                                           19

10        Procurement plan for food scraps processing                                                        21

11        Waiheke Island waste services contract                                                                   29  

12        Consideration of Extraordinary Items 

PUBLIC EXCLUDED

13        Procedural Motion to Exclude the Public                                                               103

C1       CONFIDENTIAL: Procurement plan for food scraps processing                         103

C2       CONFIDENTIAL: Waiheke Island waste services contract                                   103  

 


1          Apologies

 

At the close of the agenda no apologies had been received.

 

 

2          Declaration of Interest

 

Members are reminded of the need to be vigilant to stand aside from decision making when a conflict arises between their role as a member and any private or other external interest they might have.

 

 

3          Confirmation of Minutes

 

That the Strategic Procurement Committee:

a)         confirm the ordinary minutes of its meeting, held on Monday, 11 June 2018, including the confidential section, as a true and correct record.

 

 

4          Petitions

 

At the close of the agenda no requests to present petitions had been received.

 

 

5          Public Input

 

Standing Order 7.7 provides for Public Input. Applications to speak must be made to the Governance Advisor, in writing, no later than one (1) clear working day prior to the meeting and must include the subject matter.  The meeting Chairperson has the discretion to decline any application that does not meet the requirements of Standing Orders.  A maximum of thirty (30) minutes is allocated to the period for public input with five (5) minutes speaking time for each speaker.

 

At the close of the agenda no requests for public input had been received.

 

 

6          Local Board Input

 

Standing Order 6.2 provides for Local Board Input.  The Chairperson (or nominee of that Chairperson) is entitled to speak for up to five (5) minutes during this time.  The Chairperson of the Local Board (or nominee of that Chairperson) shall wherever practical, give one (1) day’s notice of their wish to speak.  The meeting Chairperson has the discretion to decline any application that does not meet the requirements of Standing Orders.

 

This right is in addition to the right under Standing Order 6.1 to speak to matters on the agenda.

 

At the close of the agenda no requests for local board input had been received.

 


 

 

7          Extraordinary Business

 

Section 46A(7) of the Local Government Official Information and Meetings Act 1987 (as amended) states:

 

“An item that is not on the agenda for a meeting may be dealt with at that meeting if-

 

(a)        The local  authority by resolution so decides; and

 

(b)        The presiding member explains at the meeting, at a time when it is open to the public,-

 

(i)         The reason why the item is not on the agenda; and

 

(ii)        The reason why the discussion of the item cannot be delayed until a subsequent meeting.”

 

Section 46A(7A) of the Local Government Official Information and Meetings Act 1987 (as amended) states:

 

“Where an item is not on the agenda for a meeting,-

 

(a)        That item may be discussed at that meeting if-

 

(i)         That item is a minor matter relating to the general business of the local authority; and

 

(ii)        the presiding member explains at the beginning of the meeting, at a time when it is open to the public, that the item will be discussed at the meeting; but

 

(b)        no resolution, decision or recommendation may be made in respect of that item except to refer that item to a subsequent meeting of the local authority for further discussion.”

 

 


Strategic Procurement Committee

11 July 2018

 

Information report - 11 July 2018

 

File No.: CP2018/11423

 

  

 

Te take mō te pūrongo / Purpose of the report

1.    To note progress on the forward work programme (Attachment A).

Whakarāpopototanga matua / Executive summary

2.    This is the regular information-only report which aims to provide public visibility of information circulated to committee members via memo or other means, where no decisions are required.

3.    Note that, unlike an agenda decision report, staff will not be present to answer questions about these items referred to in this summary.

 

 

Ngā tūtohunga / Recommendation/s

That the Strategic Procurement Committee:

a)      receive the information report – 11 July 2018.

 

 

Ngā tāpirihanga / Attachments

No.

Title

Page

a

Strategic Procurement Committee Forward Work Programme - 20180711

11

      

Ngā kaihaina / Signatories

Author

Michelle Judge - Governance Advisor

Authoriser

Jazz Singh - General Manager Procurement

 



Strategic Procurement Committee

11 July 2018

 

 

 

STRATEGIC PROCUREMENT COMMITTEE FORWARD WORK PROGRAMME FY2019

This committee deals with ensuring sound procurement processes are followed in order to deliver on the work programme and operations outlined in council’s adopted Annual Plan. It has responsibility for awarding contracts of $22.5 million or greater, awarding sensitive contracts and oversight of procurement strategies, processes and procedures.

 

 

Priorities for 2018 will be on initiatives which:

 

1.    Delivery on Annual Plan Outcomes

2.    Review delivery of Capital Projects

3.    Endorse Procurement Category Strategies

4.    Enhance Group Sourced Procurement

5.    Improve Procurement Maturity

 

The work of the Committee will:

 

·    Approve award of contracts and variations within the Committee’s delegations.

·    Monitor the delivery programme of major capital projects and recommend reporting to Finance and Performance Committee.

·    Endorse procurement strategies and process improvements related to the Committee’s responsibilities.

·    Monitor progress and make recommendations on group sourced procurement activities.

1.            Delivery on Annual Plan outcomes (Contracts to be awarded)

Priority #

Area of work

Reason for work

Strategic Procurement Committee role (decision or direction)

Budget / Funding

Expected timeframes

Highlight financial year quarter and state month if known

FY19

Jul-Sep

Oct-Dec

Jan-Mar

Apr-Jun

1.1

Organics (Food Waste) Processing

Approve procurement plan for food waste processing services

Decision: Approve Procurement Plan

 

Q1

July 18

 

 

 

1.2

Waiheke Island Waste Services Contracts

Contract extension for Waiheke Island waste services contract

Decision: Approve contract extension

 

Q1

July 2018

 

 

 

1.3

City Centre Development

Approve procurement plan and award contract for City Centre Development project

Decision: Agree procurement plan and award contract

Progress to date:

Update received at the 13 December 2017 meeting Resolution number STR/2017/59 - Item C4

Next Update will be considered in July 2018

$370m (total council family spend)

Q1

Sept 18

 

 

 

1.4

America’s Cup 36 progress update

Update on the infrastructure delivery in support of AC36

Receive: progress update

$212m

Q1

Sept 18

 

 

 

1.5

St Marys Bay Outfall construction contract

Approve procurement plan and then award contract for St Marys Bay stormwater project

Decision: Agree procurement plan and award contract

$35 million

Q1

Sept 18

 

 

 

 


 

2.            Review delivery of Capital Projects

Priority #

Area of work

Reason for work

Strategic Procurement Committee role (decision or direction)

Budget / Funding

Expected timeframes

Highlight financial year quarter and state month if known

FY19

Jul-Sep

Oct-Dec

Jan-Mar

Apr-Jun

2.1

Capital Project Delivery

Elected member oversight of progress of Major Projects 

Progress to date:

Update received at 6 September 2017 meeting Resolution number STR/2017/37 - Item C2.

Update received at 13 December 2017 meeting Resolution number STR/2017/61 - Item C6.

Update received at 7 March 2018 meeting Resolution number STR/2018/11- Item C2.

Update received at 11 June 2018 meeting Resolution number STR/2018/32 – Item C1

Receive: no decision required

 

Q1

Sept 18

 

 

 

2.2

Westgate multipurpose facility (integrated library and community centre) construction

Elected member oversight of progress of Westgate multipurpose facility

Progress to date:

Update received at the 7 March 2018 meeting Resolution number STR/2018/11- Item C2.

Update received at 11 June 2018 meeting Resolution number STR/2018/34- Item C3

Receive: no decision required

 

Q1

Sept 18

 

 

 

2.3

Forward Work Programme (Pipeline)

Elected member oversight of pipeline of activity for capital works delivery forward work programme

Progress to date:

Update received at 11 June 2018 meeting – Resolution number STR/2018/25 – Item 10

Receive: no decision required

 

 

Q2

Oct 18

 

 

 

 

3.            Endorse Procurement Category Strategies

Priority #

Area of work

Reason for work

Strategic Procurement Committee role (decision or direction)

Budget / Funding

Expected timeframes

Highlight financial year quarter and state month if known

FY19

Jul-Sep

Oct-Dec

Jan-Mar

Apr-Jun

3.1

Professional Technical Services

Implementation of professional technical services category

Receive: No decision required – update from approved strategy by T&P 2016

 

Q1

Sept 18

 

 

 

3.2

ICT Technology Services

Create a plan for engaging the market to purchase Technology Services – Cloud, Data Centre Services, Print, Network.

Receive: No decision required

 

 

Q2

Oct 18

 

 

3.3

Professional Services

Create a plan to go to market and manage professional services across Auckland Council.

Receive: No decision required

 

 

Q2

Nov 18

 

 

 


4.            Enhance Group Sourced Procurement

Priority #

Area of work

Reason for work

Strategic Procurement Committee role (decision or direction)

Budget / Funding

Expected timeframes

Highlight financial year quarter and state month if known

FY19

Jul-Sep

Oct-Dec

Jan-Mar

Apr-Jun

4.1

Fleet Optimisation Update

Keep Committee informed on progress of Fleet changes

Progress to date:

Update received at the 7 March 2018 meeting - Resolution number STR/2018/5 – Item 10.

Receive: no decision required.

 

Q1

July 18

 

 

 

4.2

Group Sourced Procurement update

Keep Committee informed on progress against Group Sourced Procurement objectives

Progress to date:

Update provided at the October 2017 meeting Resolution number STR/2017/4 – Item 11

Update received at the meeting on 7 March 2018 Resolution number STR/2018/4 – Item 9

Receive: no decision required

 

Q1

August 18

 

 

 

 


5.            Improve Procurement Maturity

Priority #

Area of work

Reason for work

Strategic Procurement Committee role (decision or direction)

Budget / Funding

Expected timeframes

Highlight financial year quarter and state month if known

See completed section below

 


6.            Other

Priority #

Area of work

Reason for work

Strategic Procurement Committee role (decision or direction)

Budget / Funding

Expected timeframes

Highlight financial year quarter and state month if known

See completed section below

 


Completed

1.            Delivery on Annual Plan outcomes (Contracts awarded)

Priority #

Area of work

Reason for work

Strategic Procurement Committee role (decision or direction)

1.1

Refuse Collections

Change from collection of Bags to Bins for Waitakere and North Shore.  Part of aligning refuse collection services across the region

Decision: Agree to extend current contract with Veolia for a further 2 years –  6 September 2017 – Resolution STR/2017/36 – Item C1

1.2

Electricity Procurement

Approve Procurement Plan for Electricity procurement

Update provided at the October 2017 meeting Resolution number STR/2017/47 - Item C3

1.3

External Legal Services

Council has gone out to market for external legal services. Additional scope may mean the contract value over the term of the engagement will exceed $22.5m

Decision: Agree to contract awards for 2 years. 13 December 2017 meeting, Resolution Number STR/2017/57  – Item C2

1.4

Graffiti Eradication and Enforcement Services

Approve procurement plan for graffiti Eradication and Enforcement Services

Decision: agree procurement plan- 13 December 2017 meeting, Resolution Number STR/2017/58 – Item C3

Decision: approve procurement plan at May 2018 meeting, Resolution number STR/2018/20 – item C1

1.5

Electricity supply SRR

Approve the supplier recommendation report for electricity supply services

Decision: agree SRR- 13 December 2017 meeting, Resolution Number STR/2017/56 – Item C1

1.6

Overflow Planning Services

Approve the procurement plan for overflow planning services to process resource consents.

Decision: approve procurement plan

Decision taken to approve the procurement plan. Resolution number STR/2018/13 – item C2

1.7

External Recruitment Supplier

Current All of Government (AoG) contract expires October 2017. New AoG contracts have been negotiated by MBIE. Council will enter into AoG agreements for six months and assess whether they meet our needs.

Decision: Agree to extend AoG agreements or run own market exercise.

Decision taken to extend AoG agreements at 4 April meeting. Resolution number STR/2018/12 – item C1

1.8

Building Consents Regional Overflow Model

Approve the supplier recommendation for the Building Consents Regional Overflow Model

Decision: procurement plan agreed - 13 December 2017 meeting, Resolution Number STR/2017/60 – Item C5

Decision: Supplier recommendation agreed at 11 June 2018 meeting, Resolution number STR/2018/33 – Item C2

 

3.            Endorse Procurement Category Strategies

Priority #

Area of work

Reason for work

Strategic Procurement Committee role (decision or direction)

3.1

Waste Solutions Procurement Strategy

Create plan for go to market exercise for all waste collection (including food waste) and disposal activity prior to 2020

Decision: Confirm strategy/challenge

Update provided at the October 2017 meeting Resolution number  STR/2017/40 - Item 9

3.2

Organics (food waste) Processing caddies and food waste bins

Create plan for go to market exercise for all aspects of the planned Organic (food waste) collection and Processing Service together with the caddies and bins required for collection.

Update provided at the October 2017 meeting Resolution number STR/2017/40- Item 9 and Resolution number STR/2017/45 – Item C1

3.3

ICT hardware

Create a plan for engaging the market to purchase ICT Hardware.

Update received at 7 March 2018 meeting – Resolution number STR/2018/10 – Item C1

Receive: No decision required

3.4

ICT Software

Create a plan for engaging the market to purchase Software.

Update received at 11 June 2018 meeting – Resolution number STR/2018/24 – Item 9

Decision: agree to endorse the Software Procurement Category Strategy

3.5

Vertical Construction Category Strategy

Development of the overall strategy for vertical construction and building

Update received at 11 June 2008 meeting – Resolution number STR/2018/35 – Item C4

Decision: endorse the vertical construction procurement category strategy

 


4.            Enhance Group Sourced Procurement

Priority #

Area of work

Reason for work

Strategic Procurement Committee role (decision or direction)

4.1

Sustainable Procurement Framework

Give effect to principles to be agreed in Group Procurement Policy

Update provided at the December 2017 meeting. Resolution number STR/2017/53 Item 9

 


5.            Improve Procurement Maturity

Priority #

Area of work

Reason for work

Strategic Procurement Committee role (decision or direction)

5.1

Ariba update

Update Committee on implementation of procurement enabling technology

Update provided at the October 2017 meeting Resolution number STR/2017/4 – Item 11

 


6.            Other

Priority #

Area of work

Reason for work

Strategic Procurement Committee role (decision or direction)

6.1

Update on Waste Solutions contracts

Update the Committee on the current state of all waste contracts prior to the preparation of the Waste Solutions Procurement Strategy

Update provided at the October 2017 meeting Resolution number STR/2017/41- Item 10 and Resolution number STR/2017/46 – item C2

6.2

Review of Project 17 Contract performance

Update the Committee on the performance of suppliers against key performance metrics under the Project 17 Full Facilities Maintenance contracts

Receive: No decision required. Update provided at May 2018 meeting, Resolution number STR/2018/21 – item C2

 



Strategic Procurement Committee

11 July 2018

 

Fleet optimisation update

 

File No.: CP2018/12091

 

  

 

Te take mō te pūrongo / Purpose of the report

1.       To keep the Strategic Procurement Committee informed on progress made to optimise the size and composition of Auckland Council’s fleet and improve its utilisation.

2.       To advise the committee on plans being implemented to increase the sustainability of Auckland Council’s fleet.

Whakarāpopototanga matua / Executive summary

3.       In 2017/18, we reduced the size of Council’s fleet by 57 vehicles. To date, this has generated $247,000 in revenue, with further auction sales to happen at the end of this month. 

4.       We also avoided purchasing 26 new vehicles through redeployment of existing fleet vehicles, resulting in a cost saving of $600,000. This avoidance cost includes not only the price of the vehicles, but also the Custom Fleet management fee, and the telematics units (including installation and ongoing monthly software update).

5.       The make-up of our fleet is currently:

 

a.   General Pool – 215

i.       209 Passenger Cars

ii.      five Vans

iii.     one UTE

 

b.   Dedicated – 575

i.       256 Passenger Cars

ii.      115 SUVs

iii.     147 UTEs

iv.     57 Vans

 

6.       As part of our plans to increase the fleet’s sustainability, we have ordered an additional 10 Hyundai Ioniq Full Electric vehicles (EV’s) that will be part of the General Pool. A business case to support these acquisitions is available. Initially there will be six vehicles based at Albert Street, two at Henderson and two at Orewa. The required charging infrastructure is currently being installed, and will be in place by the end of week commencing 2 July. Eight of the 10 Ioniqs ordered are now at Hyundai, ready to have the GPS tracking device fitted and branding completed. These vehicles will be ready for delivery by end of week commencing 2 July.  The remaining two vehicles will be ready a week later. 

7.       The Fleet team are working with Council’s in-house design team to develop branding for these vehicles that reflects the fact that they are EV’s. The branding will also highlight council’s Live Lightly program.

8.       Data indicates there has been an increase in the number of registered users of the PoolCar booking tool from 2,368 in November 2017 to 3,267 in June 2018.

9.       The number of general pool vehicle bookings increased from 2,730 in November 2017 to an average of 5,167 per month since February 2018. This reflects far greater utilisation of the reduced sized General Pool.

10.     Overnight bookings from January 2018 to June 2018 have remained reasonably consistent.

11.     The Fleet team have focussed on the health and safety aspects of the fleet, including repairs and maintenance as well as reducing the volume of overdue Warrants of Fitness (WOFs). Outstanding WOFs have been reduced to three at the time of this report with alerts to all drivers not to drive vehicles that do not have a current WOF. All fleet vehicles have a maintenance plan and risks are monitored.

12.     At the start of calendar year 2018, we removed all the operational and business unit-specific pools. These vehicles have either been moved to the General Pool, or where they meet the criteria, have become dedicated to a role. This has seen the general pool almost double in size from 116 vehicles to approximately 215 vehicles. The efficiencies gained from this have contributed to our ability to reduce the overall fleet size and will continue to allow us to further reduce the fleet size in FY19.

13.     Following discussions with Auckland Transport (AT), the business case for the transfer of their fleet (around 146 Vehicles), to be managed by Council’s Fleet Team utilising the Custom Fleet model, has been approved. We aim to have the transfer completed in early July 2018. As part of the transfer we will fit the same GPS Tracking units used in Council Fleet vehicles to the AT vehicles. We will then be able to accurately measure their utilisation. We will combine the AT vehicles into the PoolCar booking system, whereby AT staff will be able to book all council pool vehicles.

 

 

Ngā tūtohunga / Recommendation/s

That the Strategic Procurement Committee:

a)      note the fleet update report - 11 July 2018.

 

Ngā tāpirihanga / Attachments

There are no attachments for this report.    

Ngā kaihaina / Signatories

Author

Alan McDonnell - Head of Ops Services Procurement

Authoriser

Jazz Singh - General Manager Procurement

 


Strategic Procurement Committee

11 July 2018

 

Procurement plan for food scraps processing

 

File No.: CP2018/10379

 

  

 

Te take mō te pūrongo / Purpose of the report

1.       To note an update on procurement of an Auckland wide food scraps processing service.

Whakarāpopototanga matua / Executive summary

2.       45 per cent of household kerbside waste sent to landfill is food scraps. A food scraps collection service serving urban Auckland is expected to divert around 50,000 tonnes of food waste per annum. Over time this is expected to increase to 75,000 tonnes per annum.

3.       In October 2017, the Strategic Procurement Committee endorsed Auckland Council’s revised procurement strategy for the food scraps collection service (resolution number STR/2017/46).

4.       Since this was approved staff have been undertaking further work to progress procurement of food scraps processing services.

5.       Recommendations arising from this work will be presented in the confidential section of the 11 July 2018 Strategic Procurement Committee meeting.

 

Ngā tūtohunga / Recommendation

That the Strategic Procurement Committee:

a)      note the information contained in this report, on an Auckland food scraps processing service, enables transparency on the topic due for discussion in the public excluded part of the meeting.

Horopaki / Context

6.       Approximately 45 per cent of kerbside waste sent to landfill in Auckland is food scraps, despite up to 35 per cent of Auckland households composting organics. Therefore, alongside waste minimisation education and home composting, other complementary council initiatives are needed to reduce the amount of food scraps going to landfill.

7.       An Auckland wide collection service servicing approximately 491,000 urban households will divert around 50,000 tonnes of food scraps per annum. Over time, this is expected to increase to 75,000 tonnes per annum from households in urban Auckland.

8.       In recognition of this potential for waste minimisation, a key deliverable of Auckland Council’s first Waste Management and Minimisation Plan in 2012 was the introduction of a household organics (food scraps) collection service for urban areas of Auckland.

9.       The first stage of the food scraps service started in Papakura in March 2018. This service covers around 18,000 properties and will soon be integrated into the region-wide service.

10.     In March 2018, Auckland Council also sought feedback through the development of the new Waste Management and Minimisation Plan 2018 and the Long-term Plan 2018-2028 on the introduction of a region-wide urban food scraps collection and the use of a targeted rate to fund this.

11.     Support for the food scraps collection was reaffirmed by the Environment and Community Committee on 12 June 2018 with the adoption of Auckland Council’s Waste Management and Minimisation Plan 2018: Working Together for Zero Waste (resolution ENV/2018/70). This plan includes an initiative to introduce a household food scraps collection service to all urban Auckland households.

12.     The introduction of a targeted rate with a cost of $67 per household to fund this food scraps collection was also approved by the Governing Body through the Long-term Plan 2018-2028 decision making process on 31 May 2018 (Resolution number GB/2018/91).

13.     Now that the introduction of the food scraps targeted rate has been approved, this report seeks approval for the procurement plan for food scraps processing. This plan has been developed based on the strategy for food scraps waste processing approved by the Strategic Procurement Committee in October 2017 (resolution STR/2017/46).

Tātaritanga me ngā tohutohu / Analysis and advice

14.     The approach and recommendations for procurement of food scraps processing services will be described in the confidential section of the 11 July 2018 Strategic Procurement Committee meeting.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

15.     Local boards have been involved in consultation on the food scraps collection through both the review of the Waste Management and Minimisation Plan 2018 and the Long-term Plan 2018-2028. Local board recommendations specifically relating to the food scraps collection and targeted rate are shown in Attachment A.

16.     In summary, Waitematā Local Board supported a decentralised food waste system that encourages more people to compost at home as a priority. They also support decentralised processing systems which will grow the capacity for composting locally by leveraging the existing resource recovery infrastructure. They recommended this be done in a way that supports local and small-scale initiatives for composting and local re-use in our parks and community gardens.

17.     Ōrākei and Albert-Eden Local Boards also expressed some support for provision of a local composting centre and investigation into local procurement of the food scraps collection respectively.

18.     Franklin, Hibiscus and Bays and Rodney local boards advocated for food waste collections for rural townships. Rodney local board sought clarification of the distinction between urban and rural, for purposes of collections and asked for a pay as you throw system in rural areas.

19.     In response to this feedback, Auckland Council staff will work together with the local boards of Rodney, Franklin, Waitākere Ranges, Waiheke and Great Barrier to develop potential food scrap service solutions for households that will not currently receive the service. It is estimated that around 15 per cent of Aucklanders will not receive the service, as they live in these rural or gulf island board areas.

20.     Several local boards (Hibiscus and Bays, Ōrākei, Kaipātaki and Rodney) also advocated for an opt-out food scraps collection service or discounts for those who compost at home.

21.     This proposal was considered through the Long-term Plan 2018-2028 decision making process, with the Governing Body choosing to provide a service to all urban households, with no provision for opt-outs (Resolution number GB/2018/91).

Tauākī whakaaweawe Māori / Māori impact statement

22.     The food scraps service is of interest to mana whenua in their role as kaitiaki of natural environments.

23.     As part of the overall implementation of the Waste Management and Minimisation Plan 2012, the council has engaged with interested mana whenua and mataawaka organisations on several projects related to waste minimisation and resource recovery, such as the Para Kore ki Tāmaki project which is delivered through marae.

24.     Council also consulted with mana whenua and mataawaka organisations on the Waste Management and Minimisation Plan 2018. Some mana whenua also gave feedback on the food scraps targeted rate through the long-term plan process.

25.     Of the 15 iwi authorities who submitted on the long-term plan, one iwi, Ngāti Tamaoho, commented specifically on the food waste targeted rate and expressed support for this. No iwi opposed the food waste targeted rate.

26.     Para Kore Ki Tāmaki, Hoani Waititi Marae and rangatahi from Kura Kaupapa Maori o Hoani Waititi Marae all strongly advocated for a food scraps collection in their submissions to the Waste Management and Minimisation Plan 2018. In the 214 submissions received from Māori residents there was strong support for a food-scraps collection (particularly from south Auckland residents).

27.     In sum, feedback received from Māori to date has supported provision of a food scraps collection service but has not focused specifically on how these scraps should be processed.

Ngā ritenga ā-pūtea / Financial implications

28.     On 31 May 2018, the Governing Body approved adoption of a targeted rate for the food scraps service of approximately $67 per household per annum from 2020/2021 onwards, subject to further refinement based on the experience of the Papakura roll-out and further consultation prior to introduction (Resolution number GB/2018/91).

29.     This cost is made up of $50 per household to cover the direct cost for the service, and a further $17 per household to recover indirect costs. The net effect of the reduced refuse cost and the new cost for the food scraps service is an increase in rates of approximately $30 to $40 per annum per household (less than $1 per week).

30.     The food scraps processing costs identified through this procurement will be described in the confidential section of the 11 July 2018 Strategic Procurement Committee meeting.

Ngā raru tūpono / Risks

31.     The risks arising from procurement of food scraps processing services will be described in the confidential section of the 11 July 2018 Strategic Procurement Committee meeting.

Ngā koringa ā-muri / Next steps

32.     Next steps arising from procurement of food scraps processing services will be described in the confidential section of the 11 July 2018 Strategic Procurement Committee meeting.

 

Ngā tāpirihanga / Attachments

No.

Title

Page

a

Local board resolutions on the food scraps collection and targeted rate

25

     

Ngā kaihaina / Signatories

Authors

George Fietje – Resource Recovery Manager

Daniel Yallop - Senior Waste Specialist (Organics)

Mara Bebich - Stakeholder Manager, Infrastructure & Environmental Services

Authorisers

Barry Potter - Director Infrastructure and Environmental Services

Jazz Singh - General Manager Procurement

 


Strategic Procurement Committee

11 July 2018

 


 


 


 


Strategic Procurement Committee

11 July 2018

 

Waiheke Island waste services contract

 

File No.: CP2018/11681

 

  

Te take mō te pūrongo / Purpose of the report

1.       To provide an update on the Waiheke Island waste services contract.

Whakarāpopototanga matua / Executive summary

1.       The contract for delivery of Waiheke Island waste services, which commenced on 1 July 2009, is set to expire on 30 June 2019.  The contract’s scope of services includes the following: 

·     collection of residential solid waste and inorganics

·     collection of recyclables

·     Waiheke Waste Transfer Station operation and haulage of materials.

2.       The council has the right, under the current terms of the contract, to extend the contract term for another year from 1 July 2019 to 30 June 2020.

3.       Council is considering various options for procuring delivery of these services. These will be procured in a way that is consistent with the recently adopted Tīkapa Moana Hauraki Gulf Islands Waste Plan 2018, shown in Attachment A, and the feedback of the Waiheke Local Board.

4.       Both the plan and the board’s feedback emphasise the importance of providing on-island solutions for waste services and creating local economic development opportunities.

5.       An update on the procurement of the Waiheke Island waste services contract will be presented in the confidential section of the 11 July 2018 Strategic Procurement Committee meeting.

Ngā tūtohunga / Recommendations

That the Strategic Procurement Committee:

a)      note the information contained in this report, on the Waiheke Island waste services contract, enables transparency on the topic due for discussion in the public excluded part of the meeting.

b)      note that the confidential report contains information that could prejudice council's position in negotiations with the supplier.

Horopaki / Context

6.       On 12 June 2018, the Environment and Community Committee adopted the Auckland Waste Management and Minimisation Plan 2018:  Working together for Zero Waste. 

7.       The Waste Management and Minimisation Plan 2018 recognises the unique nature of the Hauraki Gulf Islands and their need for tailored approaches. Accordingly, the Tīkapa Moana Hauraki Gulf Islands Waste Plan was developed specifically for this region of Auckland and adopted as part of the overall waste plan.

8.       The main goals of the Tīkapa Moana Hauraki Gulf Island Waste Plan for Waiheke are:

·     community engagement and behaviour change to reduce waste to landfill

·     increase recycling and reuse of materials on Waiheke

·     establish a community recycling centre by 2020

·     all of Waiheke’s green and food waste is composted, using on-island solutions and maximising local economic development opportunities

·     reduce waste coming on to the island

·     reduce commercial and construction and demolition waste to landfill

·     reduce visitor and boatie waste.

9.       Auckland Council provides various waste services contracts on Waiheke Island which are key to the goals of the Tīkapa Moana Hauraki Gulf Islands Waste Plan. These services include the following:

·     kerbside refuse collection to residential properties

·     kerbside recycling collection to residential properties

·     an annual inorganic collection

·     illegal dumping services for inorganic waste

·     throw’n’go bins collection at ferry points

·     summer waste barge moored at Man O’ War Bay, Waiheke Island between December and February each year

·     operation of the Waiheke Waste Transfer Station and haulage.

10.     The contract for these key waste services is due to expire on 30 June 2019, meaning a new solution for island waste services needs to be identified.

11.     There is a desire for greater community management of waste on the island.  Waiheke Island has a history of proactive leadership regarding waste, which remains strong today.  Significant gains were made in the diversion of waste to landfill during the eight years that waste was managed by a community owned social enterprise on the island, and these gains have continued under the current supplier.

Tātaritanga me ngā tohutohu / Analysis and advice

12.     Options for future provision of Waiheke Island waste services will be presented in the confidential section of the 11 July 2018 Strategic Procurement Committee meeting.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

Local impacts

13.     There is a desire for greater community management of waste on the island and council has provided a mentoring programme for identified local groups to support them to be involved in delivery of waste services.

14.     Options for procuring Waiheke Island waste services which advance these aspirations are discussed in the confidential section of the 11 July 2018 Strategic Procurement Committee meeting.

15.     Once new contracts are eventually awarded, the Waiheke Island community will benefit from local economic development opportunities.  Efficient delivery of waste services will also create a cleaner and more attractive island to live in, ultimately contributing to council’s vision of making Auckland a world-class city.

Local board views

16.     The Waiheke Local Board was consulted throughout development of the Tīkapa Moana Hauraki Gulf Islands Waste Plan.

17.     They also provided feedback on waste services during development of the Waste Management and Minimisation Plan 2018 through the following resolution: ‘that Auckland Council promote locally based service providers across all the waste streams that ensures on-island control of the full waste stream with community participation within the Waiheke local board area’ (Resolution number WHK/2018/16).

18.     The local board’s views on this specific procurement were also sought through a workshop held in April 2018.  Their feedback will be described in the confidential section of the 11 July 2018 Strategic Procurement Committee meeting.

Tauākī whakaaweawe Māori / Māori impact statement

19.     Waste minimisation and reuse of resources is of key significance to mana whenua in their role as kaitiaki of Tāmaki Makaurau’s natural environment.

20.     Mana whenua were consulted during the drafting of the Waste Management and Minimisation Plan 2018 and the Tīkapa Moana Hauraki Gulf Islands Waste Plan.

21.     Their feedback was included in the plan which notes the importance to mana whenua of ‘waste minimisation and turning waste into resources’ and states that council will ‘Identify and progress waste-related opportunities with mana whenua in the islands.

22.     Options for how to progress these mana whenua aspirations through the delivery of Waiheke Island waste services will be considered in future procurements.

Ngā ritenga ā-pūtea / Financial implications

23.     The financial implications of the options available for procurement of Waiheke Island waste service contracts are discussed in the confidential section of the 11 July 2018 Strategic Procurement Committee meeting.

Ngā raru tūpono / Risks

24.     Risks arising from the options available for procurement of Waiheke Island waste service contracts are discussed in the confidential section of the 11 July 2018 Strategic Procurement Committee meeting.

Ngā koringa ā-muri / Next steps

25.     Next steps are discussed in more detail in the confidential section of the 11 July 2018 Strategic Procurement Committee meeting.

26.     It is expected that staff will develop a procurement plan for how new waste services will be procured with a contract start date of July 2020. This procurement plan will be developed to align with the Tīkapa Moana-Hauraki Gulf Island Waste Plan, including exploring local options for delivery of the services.

27.     Feedback on the procurement plan will be sought from the Waiheke Local Board before it is submitted to the Strategic Procurement Committee for approval.

 

Ngā tāpirihanga / Attachments

No.

Title

Page

a

Tīkapa Moana Hauraki Gulf Islands Waste Plan

33

Ngā kaihaina / Signatories

Authors

Marcus Braithwaite - Senior Waste Specialist (Recycling and Inorganics)

George Fietje - Resource Recovery Manager

Mara Bebich - Stakeholder Manager, Infrastructure & Environmental Services

Authorisers

Barry Potter - Director Infrastructure and Environmental Services

Jazz Singh - General Manager Procurement

 


Strategic Procurement Committee

11 July 2018

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 

     

 


Strategic Procurement Committee

11 July 2018

 

Exclusion of the Public: Local Government Official Information and Meetings Act 1987

 

That the Strategic Procurement Committee:

a)      exclude the public from the following part(s) of the proceedings of this meeting.

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution follows.

This resolution is made in reliance on section 48(1)(a) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by section 6 or section 7 of that Act which would be prejudiced by the holding of the whole or relevant part of the proceedings of the meeting in public, as follows:

 

C1       CONFIDENTIAL: Procurement plan for food scraps processing

Reason for passing this resolution in relation to each matter

Particular interest(s) protected (where applicable)

Ground(s) under section 48(1) for the passing of this resolution

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

s7(2)(h) - The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.

s7(2)(i) - The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).

In particular, the report contains commercially sensitive information that could prejudice council's position in negotiations with waste service suppliers.

s48(1)(a)

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

 

C2       CONFIDENTIAL: Waiheke Island waste services contract

Reason for passing this resolution in relation to each matter

Particular interest(s) protected (where applicable)

Ground(s) under section 48(1) for the passing of this resolution

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

s7(2)(h) - The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.

s7(2)(i) - The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).

In particular, the report contains information that could prejudice council's position with suppliers.

s48(1)(a)

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.