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, 6
September 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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Deputy Mayor Bill Cashmore
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Deputy Chairperson
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Cr Ross Clow
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Members
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Cr Dr Cathy Casey
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Cr Linda Cooper, JP
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Cr Alf Filipaina
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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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Ex-officio
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Mayor Hon Phil Goff, CNZM, JP
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(Quorum 5 members)
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Sonja Tomovska
Governance Advisor
30 August 2017
Contact Telephone: 890 8022
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).
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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
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Members of the Independent Māori
Statutory Board who are appointed members of the committee remain.
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Independent Māori Statutory Board
members and staff remain if this is necessary in order for them to perform
their role.
Staff
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All staff supporting the meeting (administrative, senior
management) remain.
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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
06 September
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 Procurement of
refuse collection services for Waitākere and North Shore 9
10 Strategic Procurement
Committee Forward Work Programme 15
11 Consideration of
Extraordinary Items
PUBLIC EXCLUDED
12 Procedural
Motion to Exclude the Public 21
C1 Confidential: Procurement of
refuse collection services for Waitākere and North Shore 21
C2 Update on Capital Projects over
$5 million 21
An apology from
Cr L Cooper 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
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That the Strategic Procurement Committee:
a)
confirm the ordinary minutes of its meeting,
held on Wednesday, 2 August 2017, 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
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.
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Strategic
Procurement Committee
06 September
2017
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Procurement
of refuse collection services for Waitākere and North Shore
File No.: CP2017/14288
Purpose
1. To
receive an update on Auckland Council’s procurement of refuse collection
services for Waitākere and North Shore.
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 several changes to standardise waste collection services and reduce
the amount of household waste being sent to landfill.
3. As
part of the standardisation of refuse services, the current refuse bag
collection services in the Waitākere and North
Shore contract areas will transition to a refuse bin service
from October 2017 in Waitākere, and from April 2018 in North Shore.
4. To
ensure a smooth transition, refuse collection services will transition from
bags to bins over a three-month period, and refuse bags will continue to be
collected over the transition period, after which the
service will transition to a bin only service in urban areas.
5. The
old 140 litre recycling bins that have been retained by households in
Waitākere and North Shore will be reused for refuse collection.
6. Refuse
collection in these two areas will continue as a user pays service using a tag
purchased from retail outlets, which will be affixed to the bin.
7. An update on the provision of refuse collection services in
Waitākere and North Shore will be presented for approval in the
confidential section of the 6 September 2017 Strategic Procurement Committee
meeting.
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Recommendation
That the Strategic Procurement
Committee:
a) note that it will consider provision of refuse collection services
for Waitākere and North Shore, after the public have been excluded.
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Note:
· For contracts awarded over $50,000
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
$50,000, Auckland Council will publish the following details on the website:
supplier identification, supplier name and total spend on the Auckland Council
website.
Comments
Background
8. 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, turning
waste into resources
· reducing per capita household rubbish by 30 per cent by 2018
· reducing total waste per capita to landfill by 30 per cent by 2027.
9. 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.
10. Key
mechanisms to achieve the targets set out in the plan are the introduction of:
· a standardised, user-pays, refuse bin service throughout Auckland
· a food waste collection service to divert from landfill up to 40 per
cent of the organic material in household refuse.
Refuse
collection services in Waitākere and North Shore
11. Waitākere
and North Shore currently have a refuse bag collection service. This service
operates under a user pays model, where households purchase pre-paid refuse
bags from supermarkets, council service centres and libraries, and other retail
outlets.
12. The
local boards covered under the Waitākere refuse collection contract are
the Henderson-Massey Local Board, Upper Harbour Local Board, and parts of the
Waitākere Ranges and Whau Local Boards. The local boards covered under the
North Shore collection contract are Devonport-Takapuna Local Board,
Kaipātiki Local Board, and parts of the Hibiscus and Bays and Upper
Harbour Local Boards. The areas covered by these contracts are shown as Area 2
(North Shore) and Area 3 (Waitākere) in Attachment A.
13. Refuse
bag collections have the known health and safety risk of injury to collectors
though sharp objects placed in refuse bags. The introduction of a refuse bin
service in Waitākere and North Shore will eliminate this risk.
14. As
part of the strategy for standardisation of refuse services, bin services will
be introduced in Waitākere from October 2017 and in North Shore from March
2018. The staggered rollout will ensure the new service is implemented
effectively with minimal disruption to kerbside refuse collections.
15. The
refuse collection services will transition bags to bins over a three-month
period, and refuse bags will continue to be collected over the transition
period. This will ensure a smooth changeover to the new collection method and
give households sufficient time to adjust to the change.
16. In
June 2016, households in Waitākere and North Shore received new 240L
recycling bins, as part of the standardisation of recycling services. These
households were requested to retain their 140L recycling bins and these
recycling bins are being re-used for refuse collection.
17. The
refuse bin service will continue as a ‘pay as you throw’ service,
with households purchasing and attaching pre-paid tags on the refuse bin. These
pre-paid tags will be sold through the same outlets that currently stock
council refuse bags. The price of the tags for the 140L
bin has been set at $3.80, and $5.50 for the 240L bin (inclusive of GST).
18. The
council has communicated the introduction of the refuse bin service in these
two areas through a media release issued on 30 June 2017. A memo advising the upcoming service changes was sent to the local
board members for these areas on 28 June 2017. A
marketing campaign to inform households in the Waitākere area of the
upcoming changes was launched on 24 August 2017.
19. The
council’s kerbside refuse bag collection services in Waitākere and
North Shore are currently provided by Veolia Environmental Services (NZ)
Limited (Veolia). The contracts commenced on 1 July 2005 for an initial term of
10 years, with option to extend for a further two years. In 2013, the contracts
were extended for a further two years to 30 June 2017 (resolution number TEN/2013/1) and in 2015, for a
further one year to 30 June 2018 (resolution number
TEN/2015/48).
20. The information provided in this report enables transparency on the
item ‘Confidential: Procurement of refuse bin services in Waitākere
and North Shore’, which will be discussed in the confidential section of
the 6 September Strategic Procurement Committee meeting.
Consideration
Local
board views and implications
21. Local boards have been involved in
consultation as part of the development of the first Waste Management and
Minimisation Plan in 2012, which included the strategy on standardisation of
refuse collection services, and were supportive of the strategy for a
standardised refuse bin service across Auckland. Local boards will also be
consulted on the review of the Waste Management and Minimisation Plan, which
will be undertaken over 2017 and 2018.
22. On 28 June 2017, a memo was sent to local board members within Waitākere and North Shore
advising the introduction of the bin service in their areas. The memo also
provided information about the ‘pay as you throw’ trial in the
North Shore, using pre-paid tags.
23. On 14 August 2017, a briefing pack on the Waitākere and North
Shore service changes was provided to the local boards, ahead of the media
campaign launch for the Waitākere service on 24 August 2017. The
Henderson-Massey, Upper Harbour, Waitākere Ranges and Whau Local Boards
were also provided with the opportunity to have workshops on the service
changes in late August 2017.
Māori
impact statement
24. 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.
25. As part of
the overall implementation of the Waste Management and Minimisation Plan 2012,
council staff members are engaging with interested mana whenua and
mātāwaka organisations on a number of projects related to waste
minimisation and resource recovery.
Implementation
26. There are no
implementation issues arising from this report. Any implementation issues
relating to the refuse collection contracts for Waitākere
and North Shore have been noted in the report titled
“Confidential: Procurement of refuse bin services for
Waitākere and North Shore”.
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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Collection Area Map
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13
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Signatories
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Authors
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Parul Sood - General Manager Waste Solutions
Terry Coe – Waste Enterprises and Refuse Manager
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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
06 September
2017
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Strategic
Procurement Committee
06 September
2017
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Strategic Procurement Committee Forward Work Programme
File No.: CP2017/17593
Purpose
1. To approve the Strategic Procurement Committee forward work
programme.
Executive
summary
2. The
forward work programme has identified four priority areas of focus for the
committee. The proposed priorities for 2017/18 will be initiatives which:
· Require approval to
award contracts and variations within the Committee’s delegations
· Monitor the delivery
programme of major capital projects and recommend reporting to the Finance and
Performance Committee (where appropriate)
· Endorse procurement
strategies and process improvements related to the Committee’s
responsibilities
· Monitor progress and
make recommendations on group sourced procurement activities
3. The
forward work programme identifies specific activities under five headings:
· Delivery on Annual
Plan and Long Term Plan outcomes
· Review delivery of
capital projects
· Endorse Procurement
category strategies
· Enhance Group
Sourced Procurement
· Improve Procurement
maturity
4. Activities are briefly described, noted as aligning to a specific
priority of the committee, and identified as requiring either decisions or
direction from the Strategic Procurement Committee. Where possible, likely
timeframes for the activity coming before the Strategic Procurement Committee
have also been identified.
5. Staff will keep the forward work programme updated and it will be
appended as an information item on every Committee agenda.
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Recommendation/s
That the Strategic Procurement
Committee:
a) approve the attached forward work programme.
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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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Procurement Forward Work Programme 2017/2018
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17
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Signatories
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Authors
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Josie Robinson - Procurement Communications and
Support Advisor
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Authorisers
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Jazz Singh - General Manager Procurement
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Strategic
Procurement Committee
06 September
2017
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Strategic
Procurement Committee
06 September
2017
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Strategic
Procurement Committee
06 September
2017
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Strategic
Procurement Committee
06 September
2017
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Strategic Procurement Committee
06 September
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 for Waitākere and North Shore
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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
of procuring refuse collection services. If released this information could
prejudice council's position in negotiations with 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 Update
on Capital Projects over $5 million
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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.
In
particular, the report contains information that could prejudice council's
position with 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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