I hereby give notice that an ordinary meeting of the Strategic Procurement Committee will be held on:
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Date:
Time:
Meeting Room:
Venue:
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Wednesday, 8
February 2017
9.30am
Room 1, Level
26
135 Albert Street
Auckland
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Strategic Procurement Committee
OPEN AGENDA
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MEMBERSHIP
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Chairperson
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Mike Lee
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Deputy Chairperson
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Ross Clow
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Members
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Cr Dr Cathy Casey
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Deputy Mayor Bill Cashmore
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Cr Linda Cooper, JP
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Cr Alf Filipaina
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Mayor Hon Phil Goff, JP (Ex-officio)
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Cr Penny Hulse
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Cr Daniel Newman, JP
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Cr Greg Sayers
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(Quorum 5 members)
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Sonja Tomovska
Advisor - Governance Support
2 February 2017
Contact Telephone: 021 615 961
Email: sonja.tomovska@aucklandcouncil.govt.nz
Website: www.aucklandcouncil.govt.nz
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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
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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.
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Strategic Procurement
Committee
08 February
2017
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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 8
8 Notices of
Motion 8
9 Facilities
Management and Maintenance Contracts: Progress Update 9
10 Procurement of refuse
collection services - contract for Manukau area 23
11 Albany Stadium Pool
Contract Variation 25
12 Consideration of
Extraordinary Items
PUBLIC EXCLUDED
13 Procedural
Motion to Exclude the Public 29
C1 Confidential: Procurement of
refuse collection services - contract for Manukau area 29
C2 Confidential: Albany Stadium
Pool Contract Variation 29
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
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That the Strategic Procurement Committee:
a)
confirm the ordinary minutes of its meeting,
held on Wednesday, 7 December 2016, including the
confidential section, as a true and correct record.
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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
Democracy 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.”
8 Notices of Motion
At the close of
the agenda no requests for notices of motion had been received.
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Strategic
Procurement Committee
08 February
2017
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Facilities
Management and Maintenance Contracts: Progress Update
File No.: CP2017/00163
Purpose
1. To
receive an update on the progress of the procurement process for the Facilities
Management and Maintenance contracts (Project 17 contracts).
Executive
summary
2. The
Community Facilities department manages and maintains over
5000 sites including: administrative buildings; community facilities (such as
libraries, community halls, recreational centres, and pools); public toilets
and changing sheds (on parkland and streetscape); sports parks; local parks;
cemeteries; specialist parks (such as botanic gardens); baches, lodges and
other rented accommodation.
3. The
20 current Facilities Management (FM) contracts are scheduled to expire on 30
June 2017. New Facilities Management contracts will commence on 1 July 2017.
4. The
presentation in Attachment A of this report provides a summary of progress to
date on the procurement process for the Facilities Management contracts due to
commence on 1 July 2017.
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Recommendation/s
That the Strategic Procurement
Committee:
a) receive
this report noting the progress of the procurement process for the Facilities
Management and Maintenance Contract renewals (Project 17 contracts).
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Comments
5. The
current Facilities Management contracts were entered into by Auckland Council
following a competitive tender process in 2012 (Project Genesis).
6. The
20 current Facilities Management (FM) contracts represent a total annual value
of $124 million per annum and are scheduled to expire on 30 June 2017. New
Facilities Management contracts will commence on 1 July 2017.
7. This
current contract value is for Community Facilities assets only. The intention
under the current procurement process is to also include Panuku Development
Auckland assets and Council’s Corporate Property into this portfolio of FM
contracts.
8. The
Community Facilities team, together with all relevant stakeholders, have
progressed the current procurement process for the full facilities maintenance
contracts otherwise known as Project 17.
7. Details
relating to Project 17 together with regular progress updates on the
procurement process were reported to the Tenders and Procurement Committee in
the 2013-2016 electoral term. The Tenders and Procurement Committee approved
the procurement strategy for Project 17 on 17 May 2016, resolution number
TEN/2016/19.
8. Some key changes from current Facilities Management contracts and
the Project 17 strategy include the creation of five geographic service regions
based on Auckland Council’s local board boundaries.
9. A two stage procurement process started with a Request Expression of
Interest that was issued to the market in August 2016.
10. Twelve suppliers (plus City Park Services) were shortlisted as a
result of the Request Expression of Interest and invited to participate in a
closed Request For Proposal process for Full Facilities Management &
Maintenance Services contracts.
11. All suppliers submitted proposals on 9 January 2017. Proposals are
currently under technical and commercial evaluation. Negotiations with
preferred suppliers will be held from 8 February 2017 until 3 March 2017.
12. Further background information and a summary of progress to date is
provided in Attachments A and B of this report.
Consideration
Local
board views and implications
13. Local boards
have provided input into the levels of service that council will be seeking
from potential suppliers. Consultation and engagement with local boards is well
advanced and will continue throughout this process to ensure community needs
and priorities are met.
Māori
impact statement
14. Community
Facilities play a key role in developing vibrant communities and positively
impact Māori well-being and the Facilities Management contracts are
expected to contribute to positively towards enhanced Maori outcomes.
Implementation
15. Procurement
implementation schedule details are provided in the presentation in Attachment
A of this report.
Attachments
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No.
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Title
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Page
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a⇩ 
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Project 17 Update – Full Facilities and
Maintenance Contracts
January 2017
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11
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b⇩
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Project 17 Chronology
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21
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Signatories
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Author
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Peter Cunningham - Head of Physical Works &
Technical Services Procurement
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Authorisers
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Rod Sheridan - General Manager Community Facilities
Jazz Singh - General Manager Procurement
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Strategic
Procurement Committee
08 February
2017
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Strategic
Procurement Committee
08 February
2017
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Strategic
Procurement Committee
08 February
2017
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Procurement of refuse collection services - contract
for Manukau area
File No.: CP2017/00241
Purpose
1. To
note an update on Auckland Council’s procurement of refuse collection
services in Manukau.
Executive
summary
2. Auckland
Council has adopted the Waste Management and Minimisation Plan that sets out
the strategy to deliver a number of waste minimisation targets.
3. The
strategy includes a number of changes to standardise waste collection services
and reduce the amount of household waste being sent to landfill.
4. The
current contract for refuse collection services in Manukau with Envirowaste
Services Limited will expire on 30 June 2017.
5. An
update on the continued provision of refuse collection services in Manukau will
be presented for approval in the confidential section of the 8 February 2017
Strategic Procurement Committee.
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Recommendation/s
That the Strategic Procurement
Committee:
a) note the information contained in this report, on procurement of
refuse collection services, enables transparency on the topic due for
discussion in the public excluded part of the meeting.
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Note:
· For contracts awarded over $100,000
Auckland Council will publish the following details on the website; the contract number, contract description,
contract type, supplier’s trading name, contract start date and contract
expiry date.
· When the total spending of vendors exceeds
$100,000, Auckland Council will publish the following details on the website; supplier identification, supplier name
and total spend on the Auckland Council website.
Comments
6. In
2012, Auckland Council adopted a Waste Management and Minimisation Plan. The
plan set various targets including:
· an aspirational goal of zero waste to landfill by 2040;
· reducing household rubbish by 30 per cent by 2018; and
· turning waste into resources.
7. To
achieve these goals, the Waste Management and Minimisation Plan proposed a
number of major service changes to standardise waste collection across the
region and reduce the amount of household waste being sent to landfill.
8. To
enable these service changes, the Tenders and Procurement Committee approved a
procurement plan to support implementation of the Waste Management and
Minimisation Plan (resolution number TP/2013/1), in September 2013. This
procurement plan set out the plan for procuring refuse collection services,
among many other waste collection services.
9. In
October 2015, the Tenders and Procurement Committee approved further extensions
to the terms of the North Shore, Waitākere and Manukau refuse collection
contracts (resolution number TEN/2015/48). These contracts are due to
expire between March 2017 and June 2018.
10. In
September 2016, the Tenders and Procurement Committee approved a recommendation
to implement a strategy for refuse collections (resolution number TEN/2016/42).
11. The
proposed strategy would enable the council to:
· achieve lower
overall costs for provision of refuse collection services;
· maintain
quality and continuity of refuse collection services, while managing the
introduction of multiple service changes over a relatively short time period;
and
· meet the goals
and outcomes of the Waste Minimisation and Management Plan.
12. The
information provided in this report enables transparency on the following item
which will be discussed in the public excluded part of the meeting:
‘Confidential: Procurement of refuse collection services – contract
for Manukau area’.
Consideration
Local
board views and implications
13. Local
boards have been involved in significant consultation as part of the
development of the first Waste Management and Minimisation Plan (2012). Local
boards will also be consulted on the review of the plan, which will be
developed over 2017 and 2018.
14. A
memo detailing future services in Manukau was circulated to the Franklin,
Howick, Māngere-Ōtāhuhu, Manurewa, and Ōtara-Papatoetoe
Local Boards in November 2016.
15. Workshops
to present key messages of the project, including a communications plan, are
currently being arranged for local boards who have requested them.
Māori
impact statement
16. Māori
were not consulted during the preparation of this report. However, it is
recognised that the collection, disposal and minimisation of waste to landfill
is of significant interest to mana whenua in their role as kaitiaki of natural
environments.
17. As part of
the overall implementation of the Waste Management and
Minimisation Plan, council staff members are engaging with interested
mana whenua and maata waka organisations on a number of projects related to
waste minimisation and resource recovery.
Implementation
18. There are no
implementation issues arising from the report. Any implementation issues
relating to the Manukau refuse collection contract have been noted in the
report titled “Confidential: Procurement of refuse
collection services – contract extension in Manukau”.
Attachments
There are no attachments for
this report.
Signatories
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Authors
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Ian Stupple - General Manager Waste Solutions
Persees Antia - Waste Management and Minimisation Plan
Procurement Lead
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Authorisers
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Barry Potter - Director Infrastructure and
Environmental Services
Dean Kimpton - Chief Operating Officer
Jazz Singh - General Manager Procurement
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Strategic
Procurement Committee
08 February
2017
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Albany Stadium Pool Contract Variation
File No.: CP2017/00729
Purpose
1. To
report on the variation to the Albany Stadium Pool main contractor’s
construction contract in December 2016. Further detail of the variation for the
Committee’s consideration can be found in the confidential section of
this agenda.
Executive
summary
2. The
Albany Stadium Pool is a North Shore City Council legacy project. This new
facility is located adjacent to North Harbour Stadium, at 308 Oteha Valley
Road, Albany.
3. At
its 10th December 2014 meeting, the Tenders and Procurement
Committee awarded the construction contract for the Albany Stadium Pool to
Naylor Love Construction Limited (contract) for $18,264,078,
with a contingency of $1,563,441 (total value of $19,827,519).
4. Construction
commenced in March 2015, however delays were encountered due to detailing
changes and soft ground being encountered. Further excavation resulted in the
discovery of organic material, mostly tree stumps and vegetation.
5. Further
construction delays have since pushed the completion date out to January 2017.
6. Throughout
the life of the project, scope and specification changes have been imposed as
additional requirements and preferable options have been identified. These have
included additional water features, pool equipment, flooring finishes and
artwork infrastructure.
7. This
project has been subject to a number of significant challenges during the
delivery phase including several changes to the project management function
which affected continuity during the project.
8. A
variation to this contract was approved during the Christmas delegation period
due to the risk associated with the delay of payment to the Contractor that
could have resulted in a claim under the Construction Contracts Act (2002).
9. Additional
variations to this contract are expected and will be reported in full at the
next meeting of the Strategic Procurement Committee.
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Recommendation/s
That the Strategic Procurement
Committee:
a) receive
the for information only Albany Stadium Pool Contract Variation.
b) note
that a full report will be provided to the next Strategic Procurement
Committee meeting that will cover any additional provisions to vary the
contract.
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Comments
Background
10. The
Albany Stadium Pool is a North Shore City Council legacy project. This new
facility is located adjacent to North Harbour Stadium, at 308 Oteha Valley
Road, Albany.
11. At
its 10th December 2014 meeting, the Tenders and Procurement
Committee awarded the construction contract for the Albany Stadium Pool to
Naylor Love Construction Limited for $18,264,078, with a
contingency of $1,563,441 (total value of $19,827,519).
12. Construction
commenced in March 2015, however delays were encountered due to detailing
changes and soft ground being encountered. Further excavation resulted in the
discovery of organic material, mostly tree stumps and vegetation.
13. Approximately
3,500m3 of material, unsuitable to be built on, was required to be
removed and backfilled with additional piling and ground stabilisation. Some of
the excavated material was later used in landscaping on site.
14. The work
associated with detailing delays and the removal of the unsuitable material
resulted in an Extension of Time claim being received, pushing the contract
completion date out from May 2016 to November 2016.
15. Further
construction delays have since pushed the completion date out to January 2017.
16. Throughout
the life of the project, scope and specification changes have been imposed as
additional requirements and preferable options have been identified. These have
included additional water features, pool equipment, flooring finishes and
artwork infrastructure.
17. This project
has been subject to a number of significant challenges during the delivery
phase including several changes to the project management function which
affected continuity during the project.
18. The variation
was approved during the Christmas delegation period due to the risk associated
with the delay of payment to the Contractor that could have resulted in a claim
under the Construction Contracts Act (2002).
19. Further
details of this variation are contained in the report in the confidential
section of this agenda.
Current
progress
20. The
facility was due to be completed in November 2016, however incomplete work has
resulted in the public opening being deferred until January 2017.
21. An
officially opening and blessing ceremony was held by the Mayor and Kaumatua in
December 2016, however the facility was not opened to the public at that time.
22. The
contractor has now applied for Practical Completion and certification is
currently in progress at time of writing, with the facility due to open to the
public on 28 January 2017.
23. Negotiation
of the contractor’s final claim will be undertaken following Practical
Completion. This may result in additional variations to the contract.
Consideration
Local
board views and implications
24. The Albany
Stadium Pool project is a North Shore City Council legacy project championed by
the Upper Harbour Local Board as their highest local project priority.
Māori
impact statement
25. Mana
whenua were engaged through Hui’s during the design stages and feedback
from those meetings and opportunities were actively incorporated into the
overall project.
26. Mana
whenua have been advised of the cause and extent of the project delays, and
were present at the official opening ceremony held in December 2016.
Implementation
27. Delays to the
settlement of final account may entitle the contractor to additional claims for
interest charges on outstanding claims due for payment. This will be reported
in full at the next Strategic Procurement Committee meeting.
Attachments
There are no attachments for
this report.
Signatories
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Author
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Peter Cunningham - Head of Physical Works &
Technical Services Procurement
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Authorisers
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Rod Sheridan - General Manager Community Facilities
Jazz Singh - General Manager Procurement
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Strategic
Procurement Committee
08 February
2017
|
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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 of
refuse collection services - contract for Manukau area
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Reason for passing this resolution in relation to each
matter
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Particular interest(s) protected (where applicable)
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Ground(s) under section 48(1) for the passing of this
resolution
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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.
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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 detailed information
about council's strategy for procuring refuse collection services. If
released, this information could prejudice council's position in negotiations
with waste suppliers.
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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.
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C2 Confidential: Albany Stadium Pool
Contract Variation
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Reason for passing this resolution in relation to each
matter
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Particular interest(s) protected (where applicable)
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Ground(s) under section 48(1) for the passing of this
resolution
|
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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.
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s7(2)(b)(ii) - The withholding of the information is
necessary to protect information where the making available of the information
would be likely unreasonably to prejudice the commercial position of the
person who supplied or who is the subject of the information.
In particular, the report contains commercially sensitive
information
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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.
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