Agenda of Strategic Procurement Committee

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

Date:

Time:

Meeting Room:

Venue:

Wednesday, 10 May 2017

9.30am

Room 1, Level 26
135 Albert Street
Auckland

Strategic Procurement Committee

OPEN AGENDA

MEMBERSHIP

Chairperson	Mike Lee
Deputy Chairperson	Ross Clow
Members	Deputy Mayor Bill Cashmore
	Cr Linda Cooper, JP
	Cr Alf Filipaina
	Cr Penny Hulse
	Cr Daniel Newman, JP
	Cr Greg Sayers

Ex-officio	Mayor Hon Phil Goff, JP

(Quorum 5 members)

Sonja Tomovska

Governance Advisor

4 May 2017

Contact Telephone: 890 8022

Email: sonja.tomovska@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

Strategic Procurement Committee

10 May 2017

ITEM TABLE OF CONTENTS PAGE

1 Apologies 5

2 Declaration of Interest 5

3 Confirmation of Minutes 5

4 Petitions 5

5 Public Input 5

6 Local Board Input 5

7 Extraordinary Business 5

8 Notices of Motion 6

9 Procurement of refuse collection services - contracts for Auckland East and Auckland West 7

10 Information Report - 10 May 2017 11

11 Consideration of Extraordinary Items

PUBLIC EXCLUDED

12 Procedural Motion to Exclude the Public 37

C1 Confidential: Procurement of refuse collection services - contracts for Auckland East and Auckland West 37

1 Apologies

An apology from Cr Dr Cathy Casey has 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 Friday, 24 March 2017, 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.”

8 Notices of Motion

There were no notices of motion.

Strategic Procurement Committee

10 May 2017

Procurement of refuse collection services - contracts for Auckland East and Auckland West

File No.: CP2017/06515

Purpose

1. To provide an update on Auckland Council’s procurement of refuse collection services in the Auckland East and Auckland West contract areas.

Executive summary

2. Auckland Council has adopted the Waste Management and Minimisation Plan which sets out the strategy to deliver a number of waste minimisation targets. The strategy includes a number of changes to standardise waste collection services and reduce the amount of household waste being sent to landfill.

3. The current contracts for refuse collection services in Auckland East and Auckland West with Waste Management NZ Limited expire on 30 June 2018. The Auckland East contract covers the Māngere-Ōtāhuhu, Maungakiekie-Tāmaki, and Ōrākei Local Board areas, as well as the eastern side of the Waitematā Local Board area. The Auckland West contract covers the Albert-Eden, Puketāpapa, and Whau Local Board areas, as well as the western side of the Waitematā Local Board area.

4. An update on the continued provision of refuse collection services in the Auckland East and Auckland West areas will be presented for approval in the confidential section of the 10 May 2017 Strategic Procurement Committee meeting.

Recommendation

That the Strategic Procurement Committee:

a) note the information contained in this report, on procurement of refuse collection services for the Auckland East and Auckland West contract areas, enables transparency on the topic due for discussion in the public excluded part of the meeting.

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

5. 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.

6. 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.

7. 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.

8. The current refuse collection contracts for the Auckland East and Auckland West areas were approved by the Tenders and Procurement Subcommittee in 2012 for an initial term of two years, commencing 1 July 2013, with option to extend for two further years (TP/2012/19). At the September 2013 meeting the Tenders and Procurement Committee approved extension of these contracts to 30 June 2017 (TP/2013/1).

9. In September 2016, the Tenders and Procurement Committee approved a recommendation to implement a strategy for refuse collections (resolution number TEN/2016/42). 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.

10. 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 – contracts for Auckland East and Auckland West’.

Consideration

Local board views and implications

11. 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.

Māori impact statement

12. Mana whenua 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.

13. 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

14. There are no implementation issues arising from the report. Any implementation issues relating to the Auckland East and Auckland West refuse collection contracts have been noted in the report titled “Confidential: Procurement of refuse collection services – contracts for Auckland East and Auckland West”.

Attachments

There are no attachments for this report.

Signatories

Authors

Persees Antia, Waste Management and Minimisation Plan Procurement Lead

Ian Stupple, General Manager Waste Solutions

Authorisers

Barry Potter - Director Infrastructure and Environmental Services

Dean Kimpton - Chief Operating Officer

Jazz Singh - General Manager Procurement

Strategic Procurement Committee

10 May 2017

Information Report - 10 May 2017

File No.: CP2017/08160

Purpose

1. To provide a public record of memos, workshop or briefing papers that have been distributed for the Strategic Procurement Committee’s information.

Executive summary

2. This is 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. The following papers were circulated to members:

· 4 May 2017 – Memo – Publishing contract and spend information (Attachment A).

4. The papers and any previous documents can be found on the Auckland Council website at the following link: http://infocouncil.aucklandcouncil.govt.nz/

· at the top of the page, select meeting “Strategic Procurement Committee” from the drop-down tab and click ‘View’;

· under ‘Attachments’, select either HTML or PDF version of the document entitled ‘Extra Attachments’.

5. Note that, unlike an agenda decision report, staff will not be present to answer questions about these items referred to in this summary. Committee members should direct any questions to the authors.

Recommendation/s

That the Strategic Procurement Committee:

a) receive the information report.

Attachments

No.	Title	Page
a ⇩	Information memo - Publishing contract and spend information	13

Signatories

Author	Sonja Tomovska - Governance Advisor
Authoriser	Jazz Singh - General Manager Procurement

Strategic Procurement Committee

10 May 2017

Strategic Procurement Committee

10 May 2017

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 - contracts for Auckland East and Auckland West

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 detailed information about council's strategy for procuring refuse collection services. If released, this ingormation could prejudice council's position in negotiations 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.