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Hibiscus and
Bays Local Board
15 March 2017
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Project 17
Auckland Council Maintenance Contracts
File No.: CP2017/03410
Purpose
1. To
seek feedback from local boards on maintenance contracts for parks, buildings
and open space, prior to Finance and Performance Committee approval on 28 March
2017.
Executive summary
2. Auckland
Council manages over 5,000 sites across the region including parks, buildings
and open space. Existing Auckland Council maintenance contracts for
these sites expire on 30 June 2017.
3. Project
17 was setup to procure and implement new maintenance contracts due to take
effect 1 July 2017. This includes Full Facilities, Arboriculture and
Ecological services across the Auckland Council region.
4. Over the last twelve months, Community Facilities has engaged with
elected members through both formal and informal processes, to shape up the
direction of this project and seek feedback on maintenance requirements and
service levels. Refer to Attachment A for the Political Engagement
Timeline.
5. Elected
member feedback, including local priorities, informed the Request for Proposal
document which was the basis of negotiation with suppliers. Refer to
Attachment B for this local board’s resolutions dated September 2016.
6. This
report outlines the following documents which will form part of final
maintenance contracts and standard service levels:
· Attachment C Standard
and Enhanced Assets
· Attachment D Full
Facilities Contract Service Specifications
· Attachment E Supplier
Specific Information (CONFIDENTIAL)
· Attachment F Contractor
Performance Balanced Scorecard
· Attachment G Tupuna
Maunga Values Specifications
· Attachment H Contract
Information (CONFIDENTIAL)
7. Community
Facilities seek feedback from local boards on Attachments C, D and E, prior to
Finance and Performance Committee approval on 28 March 2017.
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Recommendation/s
That the Hibiscus and Bays
Local Board:
a) Provides
feedback on:
· Standard and Enhanced Assets (Attachment Three)
· Full Facilities Contract Service Specifications
(Attachment Four)
· Supplier Specific Information (Attachment Five)
(CONFIDENTIAL)
b) Notes
that the local board will have the opportunity to meet successful suppliers
in April and May to discuss and refine local service level variations.
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Comments
Process
8. Over the last twelve months, Community Facilities has engaged with
elected members through both formal and informal processes, to shape up the
direction of this project and seek feedback on maintenance requirements and
service levels.
9. Refer
to Attachment A for the Political Engagement Timeline.
10. An
open, competitive tender process seeking proposals for the supply of full
facilities, arboriculture and ecological maintenance services of council assets
was conducted as follows:
· On 10 August 2016, an Expression of Interest was
published to identify market interest in providing maintenance services for
buildings, parks and open spaces to Auckland Council. Thirty-six
Expressions of Interest were received.
· Formal
feedback from local boards on the project approach and proposed service
specifications was received in September 2016.
· Feedback
was also sought from local boards on the list of assets in their area, used as
the basis of asset data in the Request for Proposal.
· Refer
to Attachment B for this local board’s resolutions.
· Feedback
was used to inform the Request for Proposal document which was released on 28
October 2016 and submissions closed 9 January 2017.
· Submissions
were assessed and scored by an evaluation team against weighted criteria
including methodology, resources and capability, innovation and SMART
procurement, and price.
· Negotiations
are now underway with shortlisted suppliers, due for completion 10 March.
· Recommended
contracts for five areas across the region, including pricing and baseline
service levels, will be presented to the Finance and Performance Committee on
28 March 2017 for final approval.
11. Community
Facilities seek feedback from local boards on Attachments C, D and E, prior to
Finance and Performance Committee approval on 28 March 2017.
Approach
12. Following
a review last year of management and maintenance processes of council’s
assets, this project has adopted an improved approach to maintenance services,
to:
· focus
on the whole-of-life cycle of assets;
· deliver
more services without compromising quality;
· encourage
and incentivise contractors to be accountable for the assets and develop
ownership at all levels of their service delivery;
· provide
a contractual framework that enables contractors to employ innovate ideas and
methods without compromising on quality delivery; and
· implement
five new contract areas (called Tahi, Rua, Toru, Whā, Rima) to allow for
better economies of scale. The local boards represented within each area
are:
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Contract Area
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Tahi
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Rua
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Toru
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Whā
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Rima
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Devonport-Takapuna
Hibiscus & Bays
Kaipātiki
Upper Harbour
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Albert-Eden
Great Barrier
Puketāpapa
Waiheke
Whau
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Henderson-Massey
Rodney
Waitākere Ranges
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Howick
Maungakiekie-Tāmaki
Orākei
Waitematā
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Franklin
Māngere-Ōtāhuhu
Manurewa
Ōtara-Papatoetoe
Papakura
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13. A
key change is that contracts will have a more outcome-based focus on service
levels, as opposed to predictive or frequency based maintenance schedules (unless
where necessary). This ensures service standards are consistently
maintained and managed by suppliers.
14. A
standard maintenance service level is applied to every asset to ensure it is
fit for purpose, in good condition and achieves community outcomes.
15. Where
an asset may have specific known demands such as high frequency use, high
reputational risk, requires attendance due to its nature (e.g. old, troublesome
asset) or is a heritage site, an enhanced level of service may be applied to
the asset.
16. An
enhanced service level should not be confused with poor performance from a
supplier to provide the agreed standard service level.
17. Refer
to Attachment B outlining the updated asset list (including those requiring an
enhanced service level) for this local board area as at March 2017.
Please note that this asset list is continually reviewed to ensure up to date
data in alignment to council decisions and asset assessments.
18. Maintenance
contracts have been negotiated to cover three core functions across the five
areas:
· Full
Facilities
· Specialist
Arboriculture
· Specialist Ecological
19. Council
may immediately terminate (or suspend the supplier’s performance of) the
contract in whole or in part, by written notice to the supplier, if a
persistent performance breach occurs. Please refer
to the Contractor Management section in this report for further details.
20. Refer
to Attachment H (confidential) for further information about contract terms and
Attachment E (confidential) for supplier specific information.
Standard Service Levels
Full Facilities Contract (FFC)
21. Service
specifications determine the criteria and outcomes associated with maintaining
an asset or facility, which then sets the foundation of a contract agreement.
22. Refer
to Attachment D for the Service Specifications expected across the Auckland
region for Full Facilities maintenance work. In summary, these are
service level output statements by category:
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Full Facilities Category
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Output Statement
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Open Space
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Parks,
reserves and roadsides within Auckland are maintained and developed to
provide a sustainable, safe, clean and healthy environment while assets are
maintained and enhanced to meet the amenity and use needs of council,
Auckland residents and visitors.
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Arboriculture
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Trees (under
three metres in height) are maintained to an aesthetically pleasing state
which promotes healthy growth with the tree adding to the resident or
visitors experience with targeted maintenance activities to achieve healthy
and safe trees.
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Locking
and Unlocking
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Assets are
actively managed to minimise vandalism and anti-social behavior
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Buildings
- Maintenance
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All Auckland
Council owned and/or operated facilities require on-going Planned and
Response Maintenance (compliance and non-compliance) to ensure that all
facilities provided for public and Auckland Council staff use are functional,
fit-for-purpose, safe and where possible ensure that the building services
are optimised to reduce disruption to the facilities operation.
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Buildings
–
Cleaning
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All Auckland
Council owned and/or operated buildings that require planned and response
cleaning shall be cleaned to a standard that allows all buildings users to
utilise a sanitary, hygienic, safe, functional and fit for purpose space for
their operation. All litter and debris shall be removed from site and done so
in a sustainable manner.
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23. Standard Operating Procedures have been developed to agree
minimal functional requirements such as height of grass mowing, mulching
thickness, goal post painting etc. These procedures have been developed
through expertise knowledge and are operational in nature.
24. Minor
Capital Works (low value, low risk) is included in these contracts to ensure
appropriate mitigation measures are incorporated when maintaining assets.
25. The
baseline service level for specialist sportsfield maintenance ensures sports
playing surfaces are managed to provide surfaces and assets that are ‘fit
for use’ for the type and level of sport being played and which maximise
usage and support organised sporting activities.
26. Specialist
sportsfield renovation work includes:
· Fertilisation,
application, fertilisers
· Winter
Treatment - cambridge rolling, slicing and spiking, solid tine vertidraining,
ground breaking , vibramoling
· Summer
- vertimowing, dethatching, organic matter removal, leaf collection,
scarifying/ dethatching, coring/hollow tine, core harvesting,
undersowing/oversowing, sand topdressing, soil topdressing, vibramoling, mole
plough, verti-draining, ground probe aeration, weed control, weed control
(couch), agrichemical controls on sportsfields, top planing
· Turfing
– turf replacement (minor)
· Artificial
- cleaning, rubber top-ups, grooming, repair, hygiene
· Supply
bulk supply materials - eg sand, soil, seed, agrichemicals, turf (winter and
summer species), fertilizer
· Renovation
works programme development
· Note
that the Full Facilities contract incorporates sports mowing, line marking,
goal posts/furniture, soil and/or tissue sample analysis, grass selection, pest
and disease detection, minor turf repairs, renovation works programme report,
cricket
27. Sportsfield
renovations seasonally renovate surfaces back into condition for subsequent
sporting code use, including renewal of surfaces that have reached their life
span, or reinstating an asset that has been damaged through excessive overuse.
28. Sportsfield
renovations are collaboratively implemented to complement maintenance
activities in the contract.
29. When
asset components are replaced (e.g. turf type), the same style and material
type is supplied, unless otherwise directed by Auckland Council.
Arboriculture Specialist Contract
30. The scope of the arboriculture contract covers the management of council owned trees i.e.
it’s ‘urban forest and rural surrounds’
31. The
arboriculture contract includes, but is not limited to, the following services:
· General
administration and communication
· Inspections
and programmes
· Pruning
· Reactive
works
· Clean-up
· Tree
removal
· Planting
· Aftercare
maintenance
· Tree asset inventory
32. The
arboriculture contract will be managed as a prescriptive measure and value
contract, but may shift to output basis through the term of the contract. Work
will be managed on both a scheduled and reactive basis.
33. Auckland
Council will retain ownership of all chipped bio-mass (foliage, brushwood and
wood) resulting from Arboriculture Specialist contracts.
34. It will be
expected that the supplier takes a proactive approach in relation to
council’s assets, including those not directly related to the
contract’s scope. This will involve reporting any faults or issues,
regardless of asset ownership in a timely manner e.g. reporting a vandalised
bus shelter (Auckland Transport) next to a street garden.
35. The management
of Kauri Dieback and weeds are incorporated into Standard Operating Procedures
included in the Arboriculture Specialist contract.
Ecological Specialist Contract
36. The ecological
contract provides for the maintenance of Auckland Council’s high value
ecology sites, and significant bush and natural areas. The prioritised targeted
removal of animal and plant pests from council’s open spaces is a core
service within this contract. The overarching objective is to restore and
rehabilitate native biodiversity in a sustainable and long term approach.
37. The
scope of the ecological contract includes:
· preparing
ecological restoration plans that take a long term perspective and provide the
optimum cost effective management to reinstate the ecological processes, so the
site environmental values are conserved and enhanced.
· assessing,
monitoring and controlling pests impacting the ecological processes and or
values at each site. This includes but is not limited to plant, animal and
invertebrate pests.
· restorative planting of sites
38. The
supplier is required to have all vehicles to carry a web based Global
Positioning System tracking system. This enables reports to be produced
on journey length and stay.
39. The
ecological contract is supplemented by an Ecological and Environmental Pest
Control Standard Operating Procedure which provides guidance to methodologies
and site-specific requirements.
40. The
supplier is required to report any hazardous dumping to Auckland
Council’s Pollution Hot Line immediately
Other
Maintenance Priorities
SMART
Procurement
41. The
following SMART procurement outcomes are requirements outlined in maintenance
contracts:
· Increase capability and capacity –
suppliers are required to create sustainable businesses that provide training
and development to ensure continued quality delivery of services over the term
of the contract.
· Youth
employment - contracts should facilitate connecting work-ready youth to
local employment by creating local jobs with training and development
opportunities.
· Diversity
and inclusion - contracts should promote inclusion, reduce discrimination
and remove barriers to opportunity and participation, particularly for
disadvantaged groups who face barriers to employment e.g. long term unemployed,
and people with disabilities.
· Valuing
Māori - suppliers are required to work collaboratively with council to
achieve better outcomes with Māori, by supporting skill development and
labour market participation, and engagement with Māori owned businesses.
· Pacific
Auckland - contracts should support further training, development and
labour market participation for Pacific youth and communities.
· Local
community and economy - contracts should support local business where
reasonable/practical, and should meet
the social needs of the delivery area.
42. Contracts have retained flexibility to
remove assets (by contract variation) to facilitate active participation by the
third sector/volunteers to deliver maintenance outcomes.
43. Suppliers (and subcontractors) are required
to establish, document, implement, maintain and continually improve an
environmental management system. This will capture practices such as an
environmental policy, environmental impacts of significance, legal
requirements, environmental objectives and targets. At a mimimum the
management system will monitor and measure energy conservation, water
conservation, waste management and recycling, chemical use, Scope 1 and Scope 2
Greenhouse gas (GHG) emissions.
44. Suppliers are
proposed to annually reduce the carbon footprint from year two onwards.
45. The environmental management system must be
certified by an accredited third party to the standard of ISO14001,
EcoWarranty, Enviro-Mark or an agreed-upon alternative programme. Where the
supplier has certified to the Enviro-Mark programme they will commit to
attaining the highest level of certification, Enviro-Mark Diamond.
46. Please
refer to Attachment E
(Confidential) for further supplier specific information.
Weed Management
47. A
memorandum from Barry Potter, Director Infrastructure and Environmental
Services, was circulated to local board members on 15 November 2016 regarding
weed management. A second memorandum was circulated to all elected
members on 16 December 2016 providing an update on the implementation of
Auckland Council’s Weed Management Policy, particularly with regards to
this project.
48. New
maintenance contracts have been designed to reflect the objectives of Auckland
Council’s Weed Management Policy which includes implementing the
following changes:
49. What
will change?
o Minimise
agrichemical use
§ The new
contracts require a reduction in agrichemical usage and this will be closely
monitored - a 10% penalty of the monthly invoice to the supplier will be applied
if the ‘annual reduction in use of agrichemicals’ Key Performance
Indicator (KPI) is not met.
§ Chemical
usage will be reported monthly by suppliers and tracked on a local park by
local park basis. Please refer to the Contract Management section in this
report for further information on reporting, auditing and KPI’s.
§ Contracts
will standardise which type of glysophate will be used across the region by all
suppliers.
§ Manual and
mechanical weed control methods are currently used in and around children’s
playgrounds across the region. Agrichemicals are not used within these
spaces. This will continue under new contracts.
§ Mechanical
edging will be applied along paving and other hard edges.
o Integrated
weed management, ensure best practice and value for money
§ The volume
of mulch in gardens and garden beds will be increased to reduce other methods
of weed control
§ Change from
frequency based maintenance contracts to a focus on environmental outcomes, to
encourage suppliers to be more innovative in their approach to weed management
and edge control
§ Learnings
from innovations will be socialized across all suppliers to promote continuous
improvement and best practice methodology
§ Suppliers
will be encouraged and rewarded for innovation in weed management at quarterly
supplier forums
§ Development
of a weed management manual which is currently being reviewed by the Best
Practice Reference Group.
§ Establishment
of the Best Practice Reference Group made up of external technical experts and
community representatives as per the policy action plan.
§ A No-Spray
Register will be used by suppliers to ensure consistency in practice and
process.
o Empower
the community to manage weeds in accordance with the policy
§ Weed control
programmes in ecological restoration contracts will be planned and agreed in
advance of the works.
§ Targeted
weed control, including the use of volunteers, will be enabled to ensure that
agrichemical usage is minimized and integrated with other sustainable practices
such as replanting with eco-sourced species to prevent weed re-infestation.
§ Contracts
include supplier inductions and training on public awareness of vegetation
controls, including herbicides and the importance of public education,
including signage when spraying.
§ Improved
information on council’s website outlining how and why council controls
weeds.
50. At
the 13 December 2016 Finance and Performance Committee meeting, the following
resolutions relating to weed management were approved:
o An
addition to recommend to the Environment and Community Committee as follows:
a) Note
that significant funding reallocations are not within the scope of the Annual
Plan process
b) Endorse
glysophate reduction targets within the current budget
c) Express
support for the continued implementation of the Weed Management Policy
d) Agree
that a political group be appointed by the Mayor, monitors and reviews the
implementation of Auckland Council’s Weed Management Policy and practice
e) Recommend
that a review and consultation of allocated funding take place through the
upcoming Long-term Plan process
o Resolution
d) reshapes the weed management political advisory group
Co-Governance
51. As
pre-agreed with co-governance partners, suppliers submitted a detailed report
and costings on how they would manage and provide specific services to the Tūpuna Maunga Authority and / or Parakai
Recreation Reserve in their preferred areas.
52. This
report is being socialised with leaders and representatives from co-governance
entities with the outcome being determined at the end of March 2017 with either
of the following options being the preferred solution:
· Maintain
the status quo
· Offer
maintenance services to the supplier in the specific area
· Offer
maintenance services to only one supplier who would be accountable for all
outcomes.
53. Whenua
Rangatira (Bastion Point) – no change proposed to current maintenance
agreements where iwi are responsible for managing this site
Community
Empowerment
54. Local
boards expressed strong support to enable community empowerment including
volunteers, through these contracts.
55. Contracts
have the flexibility to accommodate contract variations such as community
empowerment initiatives, however compliance with Health and Safety, legislative
obligations, agreed service levels and operating procedures are critical in
these cases.
56. Local
boards should work with their strategic brokers (within the Arts, Community and
Events team) to identify requirements and opportunities, who will then liaise
with Community Facilities to agree and implement suitable solutions.
Contract
Management
Contractor
performance
57. KPI’s
measure how well the supplier is doing to meet specifications and outcomes.
KPI’s cover five categories:
o quality
o innovation
o management
o Smart procurement and environmental management
o stakeholder, customer and community impact
58. Health
and Safety (H&S) is a contractual obligation.
59. KPI’s
are measured monthly, bi-monthly, quarterly or annually.
60. Suppliers
are required to meet Full Facilities Key Performance Indicators (KPI’s)
and Minor Capital Work KPI’s to have their level of direct award for
Minor Capital Works increased, as an incentive for good performance.
61. For
each category component failed, suppliers must provide an improvement plan to
resolve the performance issue.
62. If
a supplier continues to fail on a category component beyond the performance
resolution improvement plan deadline, council will be entitled to withhold
payment of 10% of each month's invoices (excluding minor capex) until the
supplier starts meeting the category component target.
63. Suppliers
have the right to earn back withheld payments relating to category components
if they start meeting required target levels by a timeframe set by council.
64. Attachment
F outlines the Contractor Performance Balanced Scorecard that will be monitored
and applied across the region.
Auditing
65. Auditing
of contractor performance was previously conducted by external parties.
However, this function is now being conducted internally by Community
Facilities. A team of auditors conduct spot checks onsite targeting 10%
of all maintenance work conducted by each supplier.
Response
maintenance
66. Response
maintenance work will be categorised by urgency and a maximum response time
determined. Criteria is still under negotiation and agreement for some
suppliers.
67. The
supplier will undertake programmed maintenance, responsive maintenance and all
other minor contract works (including emergency works on an as needs basis
only) on Monday to Sunday, restricting noisy and any activities that may cause
a nuisance to between the hours of:
o 7:00am
and 6:00pm (52 weeks of the year); and
o 10:00am
and 6:00pm (Saturdays and Sundays and statutory holidays).
68. The
supplier will provide a call out service 24 hours, 7 days a week, carried out
as part of normal duties.
69. Following
completion of response maintenance work, the supplier will call the customer
(between 8:00am and 6:00pm unless otherwise stated), to inform them that works
have been undertaken and check that the customer is satisfied.
70. It is expected that suppliers assist with
‘whole of life’ asset management which requires the supplier to assess and make
recommendations on the optimal most cost effective balance of programmed
maintenance, responsive maintenance, and renewal of assets across their whole
life.
71. Suppliers are
required to update a condition assessment grading once a maintenance service
has been undertaken, to be included in council’s asset management system,
and to notify council of any significant degradation.
Consideration
Local board views and implications
72. Project
17 has engaged with local boards through various channels including:
o Local
Board Chairs Procurement Working Group;
o Local
Board Chairs Forum presentations;
o memorandums;
o cluster
workshops;
o individual
local board workshops; and
o business
meeting reports.
73. Refer
to Attachment A outlining the political engagement timeline.
74. Community
Facilities is now seeking feedback from local boards during the final stage of
this procurement process, prior to Finance and Performance Committee approval
of contracts.
Māori impact statement
75. Auckland Council is committed to meeting its responsibilities under
Te Tiriti o Waitangi/the Treaty of Waitangi and its broader statutory
obligations to Māori.
76. Māori
responsiveness requires the collective effort of everyone. Under the new
contracts, suppliers will work collaboratively with council to achieve better
outcomes with Māori and for Auckland. This will include:
o Building
positive relationships with Māori – effective communication and
engagement with Māori, developing resilient relationships with mana
whenua;
o Significantly
lift Māori social and economic well-being; and
o Building
Māori capability and capacity.
77. Through
these contracts, opportunities to support local community outcomes and economic
development include (but are not limited to):
o Providing
employment opportunities, in particular for local people and for youth;
o Increasing
capability and capacity (apprenticeships, cadetships or equivalent) in
particular for youth;
o Building on community and volunteer networks.
78. The
Request for Proposal outlined Tūpuna Maunga Value Specifications as
outlined in Attachment G, which suppliers are required to support as part of
new maintenance contracts.
Implementation
79. The transition into new contracts will commence once formal
approval is agreed by the Finance and Performance Committee.
80. Local
boards will have the opportunity to meet new suppliers in April and May 2017 to
discuss specific local priorities. Any local service level variations may need
to be reflected in contract variations and implementation timelines agreed with
the supplier.
81. New
maintenance contracts take effect on 1July 2017. Note that there will be
approximately six to twelve months to bed in changes, in
particularly systems and reporting.
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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Political Engagement Timeline
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17
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b⇩
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Local Board Resolution (September 2016)
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19
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c⇩
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Standard and Enhanced Assets
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25
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d⇩
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FFC Service Specifications
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35
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e⇩
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Supplier Specific Information (Under Separate
Cover) - Confidential
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f⇩ 
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Contractor Performance Balanced Scorecard
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87
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g⇩ 
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Tupuna Maunga Values Specifications
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91
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h⇩
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Contract Information (Under Separate Cover) - Confidential
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Signatories
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Authors
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Kate Marsh - Financial Planning Manager - Local Boards
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Authorisers
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Rod Sheridan - General Manager Community Facilities
Karen Lyons - General Manager Local Board Services
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