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, 3
October 2018
9.30am
Room 1, Level
26
135 Albert Street
Auckland
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Komiti Mahi Āta
Torotoro Rawa /
Strategic Procurement Committee
OPEN AGENDA
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MEMBERSHIP
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Chairperson
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Cr 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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Ex-officio
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Mayor Hon Phil Goff, CNZM, JP
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(Quorum 4 members)
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Michelle Judge
Governance Advisor
27 September 2018
Contact Telephone: +64211950262
Email: michelle.judge@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
·
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
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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
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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
03 October
2018
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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 Information
report - 3 October 2018 9
9 Update on
Financial Year 2019 capex forward work programme 17
10 Westgate multipurpose
facility (integrated library and community centre) construction: status update 21
11 Update on category
strategy for technical services 23
12 Consideration of
Extraordinary Items
PUBLIC EXCLUDED
13 Procedural
Motion to Exclude the Public 25
9 Update
on Financial Year 2019 capex forward work programme
a. 20181003
- Strategic Procurement Committee - update on FY2019 capex work programme -
presentation 25
C1 CONFIDENTIAL: Westgate
multipurpose facility (integrated library and community centre) construction:
status update 25
C2 CONFIDENTIAL: Update on category
strategy for technical services 26
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, 5 September 2018, 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.”
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Strategic
Procurement Committee
03 October
2018
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Information
report - 3 October 2018
File No.: CP2018/17668
Te take mō te pūrongo / Purpose of the report
1. To note progress
on the forward work programme (Attachment A).
Whakarāpopototanga matua / Executive summary
2. This is the
regular information-only report which aims to provide public visibility of
information circulated to committee members via memo or other means, where no
decisions are required.
3. Note that,
unlike an agenda decision report, staff will not be present to answer questions
about these items referred to in this summary.
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Ngā tūtohunga / Recommendation/s
That the Strategic Procurement
Committee:
a) receive
the information report – 3 October 2018.
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Ngā
tāpirihanga / 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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Strategic Procurement Committee Forward Work Programme
- 20181003
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11
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Ngā kaihaina / Signatories
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Author
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Michelle Judge - Governance Advisor
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Authoriser
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Jazz Singh - General Manager Procurement
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Strategic
Procurement Committee
03 October
2018
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Strategic
Procurement Committee
03 October
2018
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Strategic
Procurement Committee
03 October 2018
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Strategic
Procurement Committee
03 October
2018
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Strategic
Procurement Committee
03 October
2018
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Strategic Procurement
Committee
03 October
2018
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Update on Financial Year 2019 capex
forward work programme
File No.: CP2018/17751
Te take mō te pūrongo / Purpose of the report
1. To
provide the Strategic Procurement Committee with an update of the forward work
programme of currently agreed capital projects to be delivered in Financial
Year 2019 (FY2019).
Whakarāpopototanga matua / Executive summary
2. This
report provides a forward work programme update on all currently agreed capital
projects scheduled to be delivered in FY2019.
3. The
information for this report has been consolidated from the following
departments:
· Community Facilities
· Healthy Waters
· Development Programme Office
· Panuku
4. The
report provides a summary of 1,596 projects totalling $559 million of
expenditure. This includes information on projects currently underway that will
incur spend during FY2019, and new projects due to start in FY2019.
5. This
includes Community Facilities spend for minor capital expenditure and projects
in planning and design stage covering 1,269 projects at a total value of $77
million. Out of these, 217 projects with a value of $19 million may be
undertaken by the full facilities & maintenance contractors, depending on expertise
and capacity.
6. The
project information has been provided by departments from different sources of
information and as a result there is some inconsistency in the project
information provided. This reporting will improve over time.
7. This
report provides a summary of spend and some insight to the project details made
available. Further work is required to provide consistency of reporting across
all departments. Procurement and key spend business teams are working closely
to identify strategic market approach opportunities
8. Staff
will update the forward work programme and will provide an update of the report
to the Strategic Procurement Committee on a quarterly basis.
9. Targeted
rates, especially in the Healthy Waters programme, added additional projects to
the current programme of activity.
10. Council
intends to make the FY2019 capital projects forward works programme publicly
available to suppliers.
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Ngā tūtohunga / Recommendation/s
That the Strategic Procurement
Committee:
a) note
the forward work programme update of currently agreed capital projects to be
delivered in Financial Year 2019.
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Horopaki / Context
11. As part of the council budgeting and planning process, all capital
projects are entered into the council’s Sentient project management
system. This information has been used to provide the summary of the FY2019
capital projects forward work programme.
12. This report was originally requested by the Strategic Procurement
committee to provide transparency and visibility of capital projects to be
delivered or commenced in FY2019.
13. Project information was supplied by the following departments to
create the summary report:
· Community Facilities
· Healthy Waters
· Development Programme Office
· Panuku
14. The report provides a summary of 1,596 projects totalling $559
million of expenditure. This includes information on projects currently
underway that will incur spend during FY2019 and new projects due to start in
FY2019.
15. This includes
Community Facilities spend for minor capital expenditure projects
in planning and design stage covering 1,269 projects at a total value of $77
million. Of these 217 projects with a value of $19 million is
under $300,000 in value (per project) and may be undertaken via the full
facilities and maintenance contractors, depending on expertise and capacity.
16. The project information has been provided by departments from
different sources of information and as a result there is some inconsistency in
the project information provided to enable the development of a
cross-departmental forward work programme. This functionality will be developed
by procurement in collaboration with the Operations division.
17. An update of the forward work programme report will be provided to
the Strategic Procurement Committee on a quarterly basis.
18. This report provides a summary of spend and some insight to the
project details made available. Further work is required to provide consistency
of reporting across all departments and to also better understand when
procurement support will be required for the projects.
19. There is an intention is to make the FY19 capital projects forward
works programme available to the public and suppliers via the council’s
website and other mechanisms, such as supplier briefings.
20. With the forward work programme being generated from Sentient, an
appropriate link can be developed with the quarterly update reporting of over
$5 million projects provided by the Strategic Portfolio and Programme Office.
Tātaritanga me ngā tohutohu / Analysis and advice
21. A summary of capital expenditure forward work programme activity is
provided in this report. However, should committee members require additional
clarification or details, council staff will seek to provide additional details
and clarification in a timely manner.
Ngā whakaaweawe ā-rohe me ngā tirohanga a te
poari ā-rohe /
Local impacts and local board views
22. Sentient reporting provides a full breakdown of projects by local
board area. This is relevant to Community Facilities projects. Further work is
required to include these details on other department projects.
Tauākī whakaaweawe Māori / Māori impact
statement
23. Māori were
consulted on the development of all projects that form the Forward Work
Programme.
24. Consultation with mana whenua has taken place, recognizing the
importance of water quality issue through various Healthy Waters projects.
Ngā ritenga ā-pūtea / Financial implications
25. Projects are
based on the Long-term plan 2018-2028.
Ngā raru tūpono / Risks
26. Community
Facilities forward programme is subject to budget allocation at a project
level. This will be completed shortly.
27. Projects
listed are based on the information available through Sentient and based on the
best knowledge of project managers at the time of reporting. Delivery of these
projects will also depend on consenting, design readiness to start delivery,
property owner consents and stakeholder input. These are monitored at the
project level and programme level to ensure programming and prioritisation is
done for completion of projects within the estimated timeframes.
28. Some of the
capex projects are programmed over multiple years and completion will be in
future financial year/s.
Ngā koringa ā-muri / Next steps
29. The next updated report will be provided to the Strategic Procurement
Committee in quarter three of Financial Year 2019.
Ngā
tāpirihanga / 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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20181003 - Strategic Procurement Committee - update on
FY2019 capex work programme - presentation - Confidential
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Ngā kaihaina / Signatories
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Author
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George Joseph - Procurement Manager-
Physical Works and Technical Services
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Authorisers
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Craig McIlroy - General
Manager Healthy Waters
Rod Sheridan - General Manager Community Facilities
Dean Kimpton - Chief Operating Officer
Jazz Singh - General Manager Procurement
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Strategic
Procurement Committee
03 October
2018
|
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Westgate multipurpose facility
(integrated library and community centre) construction: status update
File No.: CP2018/17782
Te take mō te pūrongo / Purpose of the report
1. To provide a construction status update to the Strategic Procurement
Committee on the Westgate multipurpose facility construction contract with
Fletcher Construction Company Limited.
Whakarāpopototanga matua / Executive summary
2. Construction
of the Westgate multipurpose facility commenced on 6 March 2017, with practical
completion on 31 October 2018. The building façade is nearing
completion, and the internal fit-out and service work progressing.
3. The
contract has incurred delays and costs due to initial pre-commencement works,
design documentation changes and extension of time costs.
4. The
health and safety performance demonstrated by the contractor is excellent, and
quality of construction remains good.
5. Due
to its higher-risk profile, the Westgate multipurpose facility construction
will provide monthly status updates to the committee.
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Ngā tūtohunga / Recommendation/s
That the Strategic Procurement
Committee:
a) note the Westgate multipurpose facility (integrated library and
community centre) construction: status update report.
b) note
the information in this report enables transparency on the construction
status update for the Westgate multipurpose facility (library and community
facilities), due for discussion and approval in the public excluded part of
the meeting.
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Horopaki / Context
6. The Westgate Multipurpose Facility project was reported to Strategic
Procurement Committee on 5 September 2018 in a report and presentation titled
“Westgate multipurpose facility (integrated library and community centre)
construction”. A report was given in both the open and confidential
sections of the agenda.
Tātaritanga me ngā tohutohu / Analysis and advice
Health and safety
7. The
contractor’s general attitude to the management of health and safety on
site, aside from a previously reported incident, is excellent. This is demonstrated
by independent audits undertaken on behalf of council and its own reporting.
Timeline status
8. The
due date for practical completion of the main construction contract remains 31
October 2018, no change from the previous report. However there are currently
outstanding extension of time claims which may result in a later contract
completion date than currently agreed.
Quality
9. Ongoing
quality audits are being conducted by the architect and consulting engineers.
Quality of construction audited to date has been of a good standard, and no
significant quality issues have been reported.
10. These
audits confirm the contractor’s attitude and attention to the management
of quality construction practice on site is good.
Ngā whakaaweawe ā-rohe me ngā tirohanga a te
poari ā-rohe /
Local impacts and local board views
11. Henderson-Massey Local Board has received monthly updates and
quarterly reports.
Tauākī whakaaweawe Māori / Māori impact
statement
12. Council staff are currently working with local mana whenua around
the naming and signage of the facility. The mana whenua involved are Te Kawerau
a Maki and Ngāti Whātua O Kaipara.
Ngā ritenga ā-pūtea / Financial implications
13. Contract variations to date are within the contract contingency sum
allocated, with some still to be agreed.
14. Variations and claims not yet agreed are subject to recommendation
by the quantity surveyor prior to any final agreement. Any agreed variations
will seek approval from the committee.
Ngā raru tūpono / Risks
15. Risk management involving identification, mitigation and control is
being continually implemented and the risk management plan is operating.
16. While no
risks have eventuated over the reporting period the extension of time claim
previously reported remains outstanding and the contractor has yet to agree
costs related to a high proportion of design clarifications.
17. Some costs associated with these risks have been identified. Staff
are working to ensure these are as minimal as possible. Staff are also working to
ensure any delays to the contract delivery are minimal.
Ngā koringa ā-muri / Next steps
18. The project governance group will continue to work with the
professional services team and the contractor to mitigate and control risks and
minimise any additional costs.
19. Monthly status update reports will continue to be provided to the
Strategic Procurement Committee for the remainder of the contract.
Ngā
tāpirihanga / Attachments
There are no attachments for
this report.
Ngā kaihaina / Signatories
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Author
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John Schermbrucker – Head of Project Delivery
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Authorisers
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Rod Sheridan - General Manager Community Facilities
Dean Kimpton - Chief Operating Officer
Jazz Singh - General Manager Procurement
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Strategic
Procurement Committee
03 October
2018
|
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Update on category strategy for
technical services
File No.: CP2018/17887
Te take mō te pūrongo / Purpose of the report
1. To
provide an update to the Strategic Procurement Committee on the implementation
of the category strategy for technical services.
Whakarāpopototanga matua / Executive summary
2. Technical
services is one of the top spend categories across the Council group. A category strategy for this category was presented to the Tenders
and Procurement Committee in July 2015.
3. Procurement has implemented a number of the strategies identified
within the strategy, with a view to procuring these services more efficiently.
4. An
update on the implementation of the category strategy for technical services
will be presented in the confidential section of the 3 October 2018 Strategic
Procurement Committee meeting.
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Ngā tūtohunga / Recommendation/s
That the Strategic Procurement
Committee:
a) note
the information in this report enables transparency around the update report
on the category strategy for technical services.
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Horopaki / Context
5. Provision
of technical services is one of the 5 top category spends across the Council
group.
6. In
July 2015, Procurement presented a category strategy for professional services
(technical) to the Tenders and Procurement Committee. The purpose of the strategy
was to increase performance, add value and maximise results through a number of
suggested measures.
Tātaritanga me ngā tohutohu / Analysis and advice
7. An
update on the implementation of the category strategy for technical services
will be presented in the confidential section of the 3 October 2018 Strategic
Procurement Committee meeting.
Ngā whakaaweawe ā-rohe me ngā tirohanga a te
poari ā-rohe /
Local impacts and local board views
8. Local
board projects will benefit from implementation of the proposed strategy,
through more efficient project delivery.
Tauākī whakaaweawe Māori / Māori impact
statement
9. Māori
are not directly impacted by the strategy for technical services procurement.
However, when developing plans and providing advice, providers of technical
services are required to consider the current legislation, which includes the
requirements to engage with mana whenua and value Te Ao Māori.
Ngā ritenga ā-pūtea / Financial implications
10. Financial
implications will be discussed in the confidential section of the 3 October
2018 Strategic Procurement Committee meeting.
Ngā raru tūpono / Risks
11. Management of
risks will be discussed in the confidential section of the 3 October 2018
Strategic Procurement Committee meeting.
Ngā koringa ā-muri / Next steps
12. The proposed
next steps will be discussed in the
confidential section of the 3 October 2018 Strategic Procurement Committee
meeting.
Ngā
tāpirihanga / Attachments
There are no attachments for
this report.
Ngā kaihaina / Signatories
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Authors
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Peter Cunningham - Head of Physical Works &
Technical Services Procurement
Persees Antia - Strategic Procurement Specialist
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Authoriser
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Jazz Singh - General Manager Procurement
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Strategic
Procurement Committee
03 October
2018
|
|
Exclusion of the Public: Local Government Official Information
and Meetings Act 1987
That the Strategic
Procurement Committee
a) exclude
the public from the following part(s) of the proceedings of this meeting.
The general
subject of each matter to be considered while the public is excluded, the
reason for passing this resolution in relation to each matter, and the specific
grounds under section 48(1) of the Local Government Official Information and
Meetings Act 1987 for the passing of this resolution follows.
This resolution
is made in reliance on section 48(1)(a) of the Local Government Official
Information and Meetings Act 1987 and the particular interest or interests
protected by section 6 or section 7 of that Act which would be prejudiced by
the holding of the whole or relevant part of the proceedings of the meeting in
public, as follows:
9 Update
on Financial Year 2019 capex forward work programme - Attachment a - 20181003 - Strategic Procurement
Committee - update on FY2019 capex work programme - presentation
|
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
|
|
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.
In
particular, the report contains information that could prejudice council's
position with suppliers..
|
s48(1)(a)
The public
conduct of the part of the meeting would be likely to result in the
disclosure of information for which good reason for withholding exists under
section 7.
|
C1 CONFIDENTIAL:
Westgate multipurpose facility (integrated library and community centre)
construction: status update
|
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.
In
particular, the report contains information that could prejudice
council’s position with suppliers and other parties with regard to the
resolution of disputes.
|
s48(1)(a)
The public
conduct of the part of the meeting would be likely to result in the
disclosure of information for which good reason for withholding exists under
section 7.
|
C2 CONFIDENTIAL:
Update on category strategy for technical services
|
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.
In
particular, the report contains information that could prejudice council's
position with suppliers.
|
s48(1)(a)
The public
conduct of the part of the meeting would be likely to result in the disclosure
of information for which good reason for withholding exists under section 7.
|
