Agenda of Strategic Procurement Committee

Terms of Reference

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

Exclusion of the public – who needs to leave the meeting

Members of the public

All members of the public must leave the meeting when the public are excluded unless a resolution is passed permitting a person to remain because their knowledge will assist the meeting.

Those who are not members of the public

General principles

· Access to confidential information is managed on a “need to know” basis where access to the information is required in order for a person to perform their role.

· Those who are not members of the meeting (see list below) must leave unless it is necessary for them to remain and hear the debate in order to perform their role.

· Those who need to be present for one confidential item can remain only for that item and must leave the room for any other confidential items.

· In any case of doubt, the ruling of the chairperson is final.

Members of the meeting

· The members of the meeting remain (all Governing Body members if the meeting is a Governing Body meeting; all members of the committee if the meeting is a committee meeting).

· However, standing orders require that a councillor who has a pecuniary conflict of interest leave the room.

· All councillors have the right to attend any meeting of a committee and councillors who are not members of a committee may remain, subject to any limitations in standing orders.

Independent Māori Statutory Board

· Members of the Independent Māori Statutory Board who are appointed members of the committee remain.

· Independent Māori Statutory Board members and staff remain if this is necessary in order for them to perform their role.

Staff

· All staff supporting the meeting (administrative, senior management) remain.

· Other staff who need to because of their role may remain.

Local Board members

· Local Board members who need to hear the matter being discussed in order to perform their role may remain. This will usually be if the matter affects, or is relevant to, a particular Local Board area.

Council Controlled Organisations

· Representatives of a Council Controlled Organisation can remain only if required to for discussion of a matter relevant to the Council Controlled Organisation.

Strategic Procurement Committee

12 December 2018

Update on procurement of St Marys Bay and Masefield Beach improvement project

File No.: CP2018/22577

Te take mō te pūrongo / Purpose of the report

1. To provide an update on procurement of the St Marys Bay and Masefield Beach water quality improvement project.

Whakarāpopototanga matua / Executive summary

2. The St Marys Bay and Masefield Beach water quality improvement project will significantly reduce combined stormwater and wastewater overflows from five current outfalls into the harbour. It is the first major project to be funded through Auckland Council’s new water quality targeted rate.

3. Due to its location, the project is a priority for completion before the America’s Cup, APEC and Te Matatini are held in the area from early 2021.

4. Resource consent for the project was granted in November 2018 by an Independent Hearings Panel.

5. Objections to the project by impacted property owners under the Local Government Act were heard in November 2018. The Regulatory Committee determined to continue with the project.

6. A procurement plan for the project was approved by the Strategic Procurement Committee on 5 September 2018 (Resolution number STR/2018/55).

7. Since this was approved staff have continued work on procuring the project. An update on the procurement process will be presented in the confidential section of the 12 December 2018 Strategic Procurement Committee meeting.

Ngā tūtohunga / Recommendations

That the Strategic Procurement Committee:

a) note the information contained in this report, on procurement of the St Marys Bay and Masefield Beach improvement project, enables transparency on the topic due for discussion in the public excluded part of the meeting.

b) note that the confidential report contains information that could prejudice council's position in negotiations with other parties.

Horopaki / Context

Project background - Resolving water quality issues in the western isthmus

8. A combined sewer network (which carries both stormwater and wastewater) services approximately 15,000 households in central Auckland, including St Marys Bay. The network is very close to capacity and combined sewer overflows are frequent, with increasing public concern regarding these and pressure to reduce them.

9. The St Marys Bay area experiences high frequencies of wastewater overflows from mainly three engineered overflow points. A further two discharge onto Masefield Beach.

10. The St Marys Bay and Masefield Beach water quality improvement project has been designed to resolve these issues. It is the first major project to be funded through the council’s new water quality targeted rate and forms part of the broader Western Isthmus Water Quality Improvement Programme.

11. The project involves the construction of a new trunk sewer to capture current overflows and divert them to a new pump station at Point Erin. When the capacity of the pump station is exceeded overflows will go to a new sea outfall from Point Erin to deeper moving water in the harbour.

12. A key objective of this project is to achieve completion of construction by December 2020 before the America’s Cup, APEC and Te Matatini are held in 2021.

13. The project will have major benefits through reducing overflows into the harbour, and thus reducing risks to public health from contact with potentially contaminated water. It will also improve operation of the broader stormwater system.

14. The project also reduces implementation risk for the full Western Isthmus Water Quality Improvement Programme. Through undertaking this project, further improvements to the combined network can take place without continued contamination of these beaches. This is important as the full suite of proposed solutions will take some time to implement.

Social procurement outcomes

15. When the procurement plan for the project was approved in September 2018 councillors noted the importance of achieving social and sustainable procurement outcomes.

16. Council staff are working towards achieving tangible social procurement outcomes from this project. These will be reported back to the committee in February 2019.

Tātaritanga me ngā tohutohu / Analysis and advice

17. Analysis and advice regarding procurement of the St Marys Bay and Masefield Beach improvement project will be provided in the confidential section of the 12 December Strategic Procurement Committee.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

Local impacts

18. As outlined in previous reports on this project to the Environment and Community, Regulatory and Strategic Procurement Committee this project will have significant benefits for people living in the local area. This is because it will reduce the level of combined sewer discharges to two local beaches (St Marys Bay and Masefield Beach).

19. During the public consultation and resource consent process, some local residents have expressed support for these improvements to water quality. Some residents have also raised some concerns relating to:

· impacts of the project on the stability of their properties and the nearby cliff and

· disruption from construction.

20. The Regulatory Committee considered these concerns raised by objectors under the Local Government Act on 16 November 2018 and determined that council should proceed with the project.

21. The Regulatory Committee noted in their deliberations that they do not think there is a causal link between the works and ‘cliff instability due to the depth at which the pipeline will be installed, the construction methodology, monitoring and the technology used.’

22. They also noted that ‘monitoring conditions are proposed in the resource consent conditions to ensure that construction does not impact the cliff. Council is legally obliged to make good any damage caused by the project, which the monitoring and surveys are designed to pick up. The surveys will provide a sound baseline against which any claims against the project can be measured.’

23. The successful construction supplier will also implement traffic management and other measures to reduce construction impacts on local residents as far as is practicable.

Local board views

24. The Waitematā Local Board has been consulted with and briefed on this project through a series of workshops and memos from 2016 onwards. The local board supported the project overall but highlighted the concerns raised by local residents and asked that these be addressed. Dialogue with the community and local board on these topics is ongoing.

Tauākī whakaaweawe Māori / Māori impact statement

25. As outlined in previous reports to the Environment and Community, Regulatory and Strategic Procurement Committees, the council has carried out extensive iwi consultation on this project. This approach has resulted in the design of the project being consistent with mana whenua aspirations and iwi support for the resource consent application.

26. A formal mana whenua Project Working Group was established in 2017 to allow interested iwi to input into the project. This will continue throughout the project life-cycle to ensure opportunities for mana whenua input and responsiveness are maximised.

Ngā ritenga ā-pūtea / Financial implications

27. Financial implications of procurement of the St Marys Bay and Masefield Beach improvement project will be discussed in the confidential section of the 12 December Strategic Procurement Committee meeting.

Ngā raru tūpono / Risks

28. Risks and mitigations arising from procurement of the St Marys Bay and Masefield Beach improvement project will be discussed in the confidential section of the 12 December Strategic Procurement Committee meeting.

Ngā koringa ā-muri / Next steps

29. Next steps for procurement of the St Marys Bay and Masefield Beach improvement project will be discussed in the confidential section of the 12 December Strategic Procurement Committee meeting.

Ngā tāpirihanga / Attachments

There are no attachments for this report.

Ngā kaihaina / Signatories

Author

Craig McIlroy - General Manager Healthy Waters

Authorisers

Barry Potter - Director Infrastructure and Environmental Services

Jazz Singh - General Manager Procurement

Strategic Procurement Committee

12 December 2018

Full Facility agreement transfer of streetscape services

File No.: CP2018/23039

Te take mō te pūrongo / Purpose of the report

1. To provide an update on variations to the current Full Facility agreements to transfer the streetscape services from Auckland Transport and Waste Solutions to Community Facilities.

Whakarāpopototanga matua / Executive summary

2. The Community Facilities Full Facilities agreements commenced on 1 July 2017, delivering maintenance services across Auckland region. On 1 July 2018, the following services were planned to transition from Auckland Transport to the Full Facility contracts:

· Urban berm mowing and weed management

· Town centre cleaning services.

3. In January 2018, the go-live of transitioning the Auckland Transport services was delayed. Staff agreed that for an integrated approach to deliver benefits, it would be best to review the services and extend them to include extra services across the full road corridor ensuring alignment with the Unitary Plan. As such, the following services are a variation to the Full Facilities agreements (streetscape services):

· Extended urban mowing

· All rural berm mowing

· All weed management i.e. urban and rural

· Extended town centre cleaning

· Bus shelter cleaning across Auckland

· Loose litter collection and weed removal at the majority of Auckland Transport car parks

· Minor maintenance on street furniture

4. Auckland Transport will continue to own the above-mentioned assets and manage the capex and renewals programmes. All transport hubs will be managed by Auckland Transport in their entirety.

5. In seeking further benefits from integrated services and removing complexity in managing contracts and requests for service, we decided to include loose litter collection and street bin emptying services, including assets and the renewals programme into the Full Facilities agreements. These services are now being transferred from Waste Solutions to Community Facilities, along with the Auckland Transport town centre cleaning services, and urban and rural mowing.

6. To ensure the best outcome for Auckland and a smooth and effective rollout, Community Facilities are proposing staging the commencement of the variation to the Full Facilities agreements as follows:

· 1 April 2019: Berm mowing, edging, weed management and vegetation management (includes loose litter prior to mowing).

· 1 July 2019: Town centre cleaning, loose litter collection and street bin emptying.

7. All litter bins and loose litter collections are now outcome-based services to match the parks and reserves services.

8. An update on the negotiations for the transfer of streetscape services into the Full Facility agreements will be provided in the confidential section of the 12 December 2018 Strategic Procurement Committee meeting.

Ngā tūtohunga / Recommendation/s

That the Strategic Procurement Committee:

a) note the information contained in this report, on the variation of the Full Facility agreements to transfer streetscape services, enables transparency on the topic due for discussion in the public excluded part of this meeting.

b) note that the confidential report contains information that could prejudice council’s position in negotiations with suppliers.

Horopaki / Context

9. Recognising the strategic priority of ‘making our size work’, and to improve co-ordination of services between council, its departments and CCOs, the transfer of services from Auckland Transport and Waste Solutions to Community Facilities is being undertaken through the Streetscapes Project.

10. These streetscape services will be delivered through a variation to the current Full Facilities agreements. These were awarded to the maintenance service providers across the region commencing on 1 July 2017.

11. The variation to the Full Facilities agreements is flexible enough to enable service delivery rationalisation across the council group. This is demonstrated through the transfer of services from Auckland Transport and Waste Solutions to Community Facilities.

12. Including similar services - that is, Auckland Transport’s town centre cleaning - with Waste Solution’s loose litter collection and bin emptying, has resulted in the Streetscapes Project being established to recognise collective responsibility and collaboration across the road corridor.

13. The original Auckland Transport services from the Project 17 scope were reviewed and revised with the following amendments:

a) All town centres were remapped against the Unitary Plan, resulting in extended cleaning areas.

b) Service levels were reviewed and rationalised into A, B, or C classifications for city and town centres, along with D and E classifications for major and minor roads with:

i. A - Key retail frontage: these are streets within city and town centres that are the focus for retail, entertainment, and tourist activity in commercial centres. These have high pedestrian traffic volumes and require a high level of cleanliness to align to the needs of users and the profile of these sites. The areas must be kept clean at all times. This may require foot orderlies to achieve the necessary standards of cleanliness at all times, and to ensure that litter bins never reach full capacity or overflow.

ii. B - General commercial frontage: these are all other streets within city and town centres which support the role that key retail frontage areas play. These must be cleaned often enough so that the presentation of the street environment and assets do not detract from the amenity of the area at the start, and during core hours of use. They must also be clean enough to meet user demands and the site profile. Without limitation, this still means that litter bins never reach full capacity or overflow.

iii. C - Residential and commercial areas: include streets not in designated city and town centres areas that have minor shopping centres that provide a specific service to the immediate community. Without limitation, this still means that litter bins never reach full capacity or overflow.

iv. D and E are major and minor roads respectively. Without limitation, this still means that litter bins never reach full capacity or overflow.

14. In Project 17, only town centre berms were factored into the approved supplier pricing. The service was subsequently extended, through the Streetscapes Project, to include berms in urban areas outside of town centres.

15. Continuing with the Full Facilities focus of bundling similar services together, in order to lessen complexity and provide consistent outcomes, it was agreed that Auckland Transport would transfer rural mowing and related weed management and vegetation control to Community Facilities.

16. Full Facilities suppliers provided pricing for the rural mowing according to the current Auckland Transport contract specifications, with the addition of litter collection prior to mowing, which is not currently undertaken.

Tātaritanga me ngā tohutohu / Analysis and advice

17. Options and advice relating the variation of the Full Facilities agreement to transfer streetscape services will be discussed in the confidential section of the 12 December 2018 Strategic Procurement Committee meeting.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

18. Local Facilities asked local boards to highlight their top 10 priorities for current Auckland Transport assets that are known to be problematic, or where they believe service standards are currently unsatisfactory. The intent of this is to ensure a smooth transition of assets between Auckland Transport and Community Facilities, so that:

a) risks will be mitigated, allowing the Full Facilities suppliers to focus on delivering service and not deal with asset condition issues in the first few months.

b) data on street furniture can be collated, which Auckland Transport does not currently do.

19. Local boards provided their input and recommendations, and the following themes have come to the fore and will be taken into consideration as part of the mobilisation:

a) support for the transfer of Streetscape services from Auckland Transport and Waste Solutions to Community Facilities' Full Facilities suppliers as part of Project Streetscapes, providing that the contract outcomes reflect local character, not one generic outcome across the region.

b) most of the Project Streetscape service specifications for the proposed four levels of service (B, C, D and E) are frequency-based and not outcome-focused. This has been done due to budget constraints. Local boards requested that the Governing Body considers increasing the budget for Project Streetscapes so that it aligns with the outcome philosophy of the Full Facilities agreements.

c) due to the increased Project Streetscape service standards, local boards request that the Governing Body make appropriate funding available to prevent any reduction in service levels. This is in the event that the current budget being transferred from Auckland Transport to Community Facilities be insufficient.

d) local boards noted with concern that some of the assets being transferred from Auckland Transport to Community Facilities' Full Facilities suppliers may not be in good condition, or are not being serviced appropriately. Local boards support Community Facilities working with Auckland Transport to upgrade these assets before they are transferred as part of the Streetscapes Project.

e) local boards also raised concerns that no funding has been apportioned for pest plant management in the road corridor, and that this might result in undermining the good work done to date by local communities.

f) local boards have also requested that meetings be held with business associations, so that the new Streetscapes service levels are understood and accepted.

Tauākī whakaaweawe Māori / Māori impact statement

20. Project Streetscapes will ensure that all identified streetscape assets continue to be well-maintained, including assets that benefit the local community, including Māori. Where any aspects of the proposed work programme are anticipated to have a significant impact on sites of importance to mana whenua, then appropriate engagement will be undertaken.

Ngā ritenga ā-pūtea / Financial implications

21. Financial implications relating the variation of the Full Facilities agreement to transfer streetscape services will be discussed in the confidential section of the 12 December 2018 Strategic Procurement Committee meeting.

Ngā raru tūpono / Risks

22. Risks and related mitigations relating the variation of the Full Facilities agreement to transfer streetscape services will be discussed in the confidential section of the 12 December 2018 Strategic Procurement Committee meeting.

Ngā koringa ā-muri / Next steps

23. Next steps relating the variation of the Full Facilities agreement to transfer streetscape services will be discussed in the confidential section of the 12 December 2018 Strategic Procurement Committee meeting.

Ngā tāpirihanga / Attachments

There are no attachments for this report.

Ngā kaihaina / Signatories

Author	Rod Sheridan - General Manager Community Facilities
Authoriser	Jazz Singh - General Manager Procurement

Strategic Procurement Committee

12 December 2018

Multi-cloud procurement plan

File No.: CP2018/23734

Te take mō te pūrongo / Purpose of the report

1. To update the committee on Auckland Council’s multi-cloud procurement plan.

Whakarāpopototanga matua / Executive summary

2. Council is looking to migrate out of its current datacentre service to a new multi-cloud environment. This will allow council to access a variety of private and public cloud technologies. These services will enable a significant OPEX reduction over 10 years and allow council to deliver its services with greater flexibility, responsiveness and enable it to proactively respond to service disruptions.

3. From 2013 until mid-2018, council used the All of Government “Infrastructure as a Service” Data Centres provided by Revera. This service achieved significant benefits, allowing council to transition out of its legacy datacentres and provide a robust service.

4. In recent years, newer technologies have emerged, allowing greater flexibility at lower costs. In 2017 council began planning with Revera to identify how to move to these new technologies. Under Resolution STR/2018/20, approval was granted by the Strategic Procurement Committee to enter into an agreement with Revera for the provision of data centre services, first in a transition state and then via a multi-cloud model.

5. Council will be purchasing ten different types of goods and services and at a high level, these can be grouped into the following categories:

a) Professional services to migrate council to a multi-cloud environment

b) Hardware that will provide and support a multi cloud environment

c) Software that will support and provide a multi cloud environment

d) Ongoing services that will support the multi cloud environment on an ongoing basis.

6. These goods and services are set out in more detail in the body of the report

7. This procurement plan is supported by a comprehensive procurement strategy that outlines what approach will be taken for each component of the goods or services that need to be purchased.

8. Council will work with suppliers to identify and deliver sustainable and social outcomes. These may include reduced carbon footprint through shipping methods, selecting suppliers with better environmental, social and carbon credentials, and working with suppliers to introduce social inclusion programmes.

Ngā tūtohunga / Recommendation/s

That the Strategic Procurement Committee:

a) note that the information in this report enables transparency around the multi-cloud procurement plan report, due for discussion and approval in the public excluded part of the meeting.

Horopaki / Context

Strategy:

9. In 2017 Council developed a refreshed Information, Communication and Technology (ICT) strategy. A focus of this strategy is to modernise Council’s data centre and operational management services whilst reducing the total cost of ownership.

10. A key part of the data centre aspect of the strategy is to take advantage of a range of infrastructure platforms. These include public cloud services such as Amazon and Microsoft Azure in addition to infrastructure owned by council. By being able to pick from a range of options Council will be able to drive significant cost out of its ICT budgets. This is referred to as a multi-cloud model.

Councils data centre journey:

11. In 2013 Council migrated from 16 Council owned data centres to the Department of Internal Affairs Infrastructure as a Service delivered by Revera. Risk and speed were the primary drivers since there was limited time to move most of our services out of the Greys Avenue Civic Building. A secondary goal was to complete a robust discovery of what was, at the time, a rapidly evolving ICT landscape.

12. Between 2013 and 2018, ICT worked to continually manage and lower costs, through a variety of projects.

13. In 2017 Council began working with Revera to identify how to move to these new technologies. Under Resolution STR/2018/20, approval was granted by the Strategic Procurement Committee to enter into an agreement with Revera to move our data centre services, first in a transition state and then via a Multi-Cloud model.

14. Further detail is set out in the report on the confidential agenda of this meeting.

Tātaritanga me ngā tohutohu / Analysis and advice

15. Council’s ICT, Procurement and Finance team have worked closely to develop the appropriate approach for each element of the services.

High Level Procurement Approach

16. Council’s internal specialist staff have worked together to assess the services and goods required and developed the preferred procurement approach for each item. Internal capability has been supplemented by collaborating with our partner, Revera, and using specialist third party suppliers to provide quality assurance of procured approaches.

Social and Sustainable Procurement

17. Such a large technology project has provided council with a significant opportunity to leverage this procurement to seek sustainable and social outcomes. Council will work with Revera and other relevant suppliers to identify and deliver sustainable and social outcomes. These may include reduced carbon footprint through shipping methods, selecting suppliers with better environmental, social and carbon credentials, and working with suppliers to introduce social inclusion programmes.

18. Further detail is set out in the report on the confidential agenda of this meeting.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

There are no local board impacts associated with this procurement plan.

Tauākī whakaaweawe Māori / Māori impact statement

19. Council will work with our chosen suppliers to seek some social outcomes associated with this procurement plan.

Ngā ritenga ā-pūtea / Financial implications

20. This section will be presented in the confidential agenda of the meeting.

Ngā raru tūpono / Risks

21. This section will be presented in the confidential agenda of the meeting.

Ngā koringa ā-muri / Next steps

22. Subject to the approval of the procurement plan, the next step will be the implementation of the plan and the multi-cloud strategy.

Ngā tāpirihanga / Attachments

There are no attachments for this report.

Ngā kaihaina / Signatories

Authors

Stephen Horsley – Procurement Manager

Mike Brothers - Head of ICT Operations

Authorisers

Mark Denvir - Director ICT

Matthew Walker - Group Chief Financial Officer

Jazz Singh - General Manager Procurement

Strategic Procurement Committee

12 December 2018

Westgate multipurpose facility (integrated library and
community centre) construction: status update

File No.: CP2018/15144

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 due to have been granted on 31 October 2018, however work is still progressing on all floors. The Engineer to Contract (the Engineer) is assessing a number of contractor claims for extension of time. The contractor has indicated that physical works will now be completed on 24 January 2019. The project governance group is undertaking work to assist the completion of physical works in time that will not affect the planned opening in March 2019.

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.

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.

Horopaki / Context

6. The Westgate Multipurpose Facility project was previously reported to Strategic Procurement Committee on 7 November 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. This date has been passed, however, there are currently two outstanding extension of time claims which may result in a later contractual completion date than currently agreed. The forecasted end of the physical work is now 24 January which is over the current time contingencies set for construction

9. Works are largely completed on level 2, with inspections for outstanding defects completed. On level 1 and 3 there are some flooring, wall linings, service installation and commissioning works outstanding.

Quality

10. Ongoing quality audits are being conducted by the architect and consulting engineers. Quality of construction audited to date has been of a good standard.

11. 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

12. Henderson-Massey Local Board has received monthly updates and quarterly reports throughout this project. The local board has been invited to visit the site after practical completion. The local board is due to receive the gifted names for both the facility and rooms from local mana whenua during its December meeting.

Tauākī whakaaweawe Māori / Māori impact statement

13. Council staff are receiving names gifted by the local mana whenua, Te Kawerau a Maki and Ngāti Whātua o Kaipara for the facility and rooms within. Artists are still completing work on art to be installed during the fit-out period.

Ngā ritenga ā-pūtea / Financial implications

14. Contract variations to date are within the contract contingency sum allocated, with some still to be agreed.

15. 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

16. Risk management involving identification, mitigation and control is being continually implemented and the risk management plan is operating.

17. No new risks have been identified since the last report and two resolved.

18. 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

19. 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.

20. 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

Author

John Shermbrucker – Head of Project Delivery

Authorisers

Rod Sheridan - General Manager Community Facilities

Dean Kimpton - Chief Operating Officer

Jazz Singh - General Manager Procurement

No.	Title	Page
a ⇩	Strategic Procurement Committee Forward Work Programme - 12 December 2018	27

Strategic Procurement Committee

12 December 2018

STRATEGIC PROCUREMENT COMMITTEE FORWARD WORK PROGRAMME FY2019 This committee deals with ensuring sound procurement processes are followed in order to deliver on the work programme and operations outlined in council’s adopted Annual Plan. It has responsibility for awarding contracts of $22.5 million or greater, awarding sensitive contracts and oversight of procurement strategies, processes and procedures.
Priorities for 2018 will be on initiatives which: 1. Delivery on Annual Plan Outcomes 2. Review delivery of Capital Projects 3. Endorse Procurement Category Strategies 4. Enhance Group Sourced Procurement 5. Improve Procurement Maturity			The work of the Committee will: · Approve award of contracts and variations within the Committee’s delegations. · Monitor the delivery programme of major capital projects and recommend reporting to Finance and Performance Committee. · Endorse procurement strategies and process improvements related to the Committee’s responsibilities. · Monitor progress and make recommendations on group sourced procurement activities.
1. Delivery on Annual Plan outcomes (Contracts to be awarded)
Priority #	Area of work	Reason for work	Strategic Procurement Committee role (decision or direction)	Budget / Funding	Expected timeframes Highlight financial year quarter and state month if known
					FY19
					Oct-Dec	Jan-Mar	Apr-Jun
1.1	Strategic procurement plan for waste services	To provide an update on Waste Strategy, incorporating feedback from PWC review on the future of waste services	Receive: progress update		Q2 Dec 18
1.2	St Marys Bay Outfall construction contract	Update and approve delegation for supplier recommendation report	Receive: progress update Decision: approve delegation to award contract to come to the February 2019 meeting.		Q2 Dec 18
1.3	America’s Cup 36 progress update	Provide an update on the awarding of the Project Alliance Agreement for the construction of infrastructure needed to host the 36th America’s Cup	Receive: progress update Next update will be considered in February 2019	$212m		Q3 Feb 19
1.4	Waiheke Island Waste Services	Approve procurement plan for all Waste Services for Waiheke Island	Update provided at the 11 July 2018 meeting, Resolution number STR/2018/41 – Item 11 and Resolution number STR/2018/36 – item C1 Decision: Approved contract extension at 11 July 2018 meeting. Decision: Approve procurement plan.			Q3 Feb 19
1.5	City Centre Development	Provide an update on the strategy for procurement of city centre development programme and pipeline of forward works	Receive: progress update Progress to date: Update received at the 13 December 2017 meeting Resolution number STR/2017/59 - Item C4 Update received at the 7 November 2018 meeting Resolution number STR/2018/73 – Item 11 Next update to be provided in Q3 2019	$370m (total council family spend)		Q3
1.6	Ports of Auckland stormwater project	Approve awarding of contract to successful supplier for Ports of Auckland stormwater project	Decision: Approve awarding of contract Decision taken to approve awarding of contract at the 7 November 2018 meeting Resolution number STR/2018/79 – Item C1			Q3
1.7	Healthy Waters capex panel refresh	Update on the strategy for capex supplier panel refresh and approval of the approach	Decision: Receive update and approve the strategy	$50m			Q4 Apr 19
1.8	Organics (Food Waste) Processing, caddies and food waste bins	Award contract for food waste process services, caddies and bins	Progress to date: Decision taken to approve the contract award for food waste process services, caddies and bins at 11 July 2018 meeting Resolution number STR/2018/37 – Item C2 Next update will be considered in Q4				Q4

2. Review delivery of Capital Projects
Priority #	Area of work	Reason for work	Strategic Procurement Committee role (decision or direction)	Budget / Funding	Expected timeframes Highlight financial year quarter and state month if known
					FY19
					Oct-Dec	Jan-Mar	Apr-Jun
2.1	Westgate multipurpose facility (integrated library and community centre) construction	Elected member oversight of progress of Westgate multipurpose facility	Progress to date: Update received at the 7 March 2018 meeting Resolution number STR/2018/11- Item C2. Update received at 11 June 2018 meeting Resolution number STR/2018/34- Item C3 Update received at 8 August 2018 meeting Resolution number STR/2018/38 – Item C1 Update received at 5 September 2018 meeting Resolution number STR/2018/56 – Item C3 Update received at 3 October 2018 meeting Resolution number STR/2018/66 – Item C1 Update received at 7 November 2018 meeting Resolution number STR/2018/81 – Item C3 Receive: no decision required		Q2 Dec 18
2.2	Forward Work Programme (Pipeline)	Elected member oversight of pipeline of activity for capital works delivery forward work programme	Progress to date: Update received at 11 June 2018 meeting – Resolution number STR/2018/25 – Item 10 Update received at 3 October 2018 meeting – Resolution number STR/2018/61 – Item 9 Receive: no decision required			Q3
2.3	Capital Project Delivery	Elected member oversight of progress of Major Projects	Progress to date: Update received at 6 September 2017 meeting Resolution number STR/2017/37 - Item C2. Update received at 13 December 2017 meeting Resolution number STR/2017/61 - Item C6. Update received at 7 March 2018 meeting Resolution number STR/2018/11- Item C2. Update received at 11 June 2018 meeting Resolution number STR/2018/32 – Item C1 Update received at 5 September 2018 meeting Resolution number STR/2018/54 – Item C1 Update received at 7 November 2018 meeting Resolution number STR/2018/80 – Item C2 Receive: no decision required			Q3

3. Endorse Procurement Category Strategies
Priority #	Area of work	Reason for work	Strategic Procurement Committee role (decision or direction)	Budget / Funding	Expected timeframes Highlight financial year quarter and state month if known
					FY19
					Oct-Dec	Jan-Mar	Apr-Jun
3.1	ICT Technology Services	Create a plan for engaging the market to purchase Technology Services – Cloud, Data Centre Services, Print, Network.	Receive: No decision required			Q3
3.2	Professional Technical Services	Implementation of professional technical services category	Receive: No decision required – update from approved strategy by T&P 2016 Update received at 3 October Strategic Procurement Committee meeting – Resolution number STR/2018/63 – Item 11			Q3
3.3	Professional Services	Create a plan to go to market and manage professional services across Auckland Council.	Receive: No decision required				Q4 Jun 19

4. Enhance Group Sourced Procurement
Priority #	Area of work	Reason for work	Strategic Procurement Committee role (decision or direction)	Budget / Funding	Expected timeframes Highlight financial year quarter and state month if known
					FY19
					Oct-Dec	Jan-Mar	Apr-Jun
4.1	Fleet Optimisation Update	Keep Committee informed on progress of Fleet changes	Progress to date: Update received at the 7 March 2018 meeting - Resolution number STR/2018/5 – Item 10. Update received at the 11 July 2018 meeting – Resolution number STR/2018/39 – Item 9. Update received at the 7 November 2018 meeting – Resolution number STR/2018/75 Decision: approve business plan			Q3
4.2	Group Sourced Procurement update	Keep Committee informed on progress against Group Sourced Procurement objectives	Progress to date: Update provided at the October 2017 meeting Resolution number STR/2017/4 – Item 11 Update received at the meeting on 7 March 2018 Resolution number STR/2018/4 – Item 9 Update received at the meeting on 8 August 2018 Resolution number STR/2018/42 – Item 9 Update received at the meeting on 7 November 2018 Resolution number STR/2018/76 – Item 13 Receive: no decision required			Q3

5. Improve Procurement Maturity

Priority #

Area of work

Reason for work

Strategic Procurement Committee role (decision or direction)

Budget / Funding

Expected timeframes

Highlight financial year quarter and state month if known

See completed section below

6. Other
Priority #	Area of work	Reason for work	Strategic Procurement Committee role (decision or direction)	Budget / Funding	Expected timeframes Highlight financial year quarter and state month if known
					FY19
					Oct-Dec	Jan-Mar	Apr-Jun
6.1	Full Facility agreement transfer of streetscape and waste solutions services	To seek approval for the variation of the current Full Facility agreements to transfer the streetscape services from Auckland Transport and Waste Solutions to Community Facilities.	Decision: approval of transfer.		Q2 Dec 2018
6.2	ICT Technology Services	Seek approval for the transfer of existing datacentre service to a new multi-cloud environment.	Decision: approval of transfer.		Q2 Dec 2018
6.3	Review of Contract performance	Update the Committee on the performance of suppliers against key performance metrics under the Full Facilities Maintenance contracts	Progress to date: Update provided at the 2 May 2018 meeting Resolution number STR/2018/21– Item C2 Update provided at the 7 November 2018 meeting Resolution number STR/2018/82 – Item C4 Update: No decision required. Next update to be provided at March 2019 meeting			Q3 March 2019

Completed

1. Delivery on Annual Plan outcomes (Contracts awarded)
Priority #	Area of work	Reason for work	Strategic Procurement Committee role (decision or direction)
1.1	Refuse Collections	Change from collection of Bags to Bins for Waitakere and North Shore. Part of aligning refuse collection services across the region	Decision: Agree to extend current contract with Veolia for a further 2 years – 6 September 2017 – Resolution STR/2017/36 – Item C1
1.2	Electricity Procurement	Approve Procurement Plan for Electricity procurement	Update provided at the October 2017 meeting Resolution number STR/2017/47 - Item C3
1.3	External Legal Services	Council has gone out to market for external legal services. Additional scope may mean the contract value over the term of the engagement will exceed $22.5m	Decision: Agree to contract awards for 2 years. 13 December 2017 meeting, Resolution Number STR/2017/57 – Item C2
1.4	Graffiti Eradication and Enforcement Services	Approve procurement plan for graffiti Eradication and Enforcement Services	Decision: agree procurement plan- 13 December 2017 meeting, Resolution Number STR/2017/58 – Item C3 Decision: approve procurement plan at 2 May 2018 meeting, Resolution number STR/2018/18 – Item 10 and Resolution number STR/2018/20 – item C1
1.5	Electricity supply SRR	Approve the supplier recommendation report for electricity supply services	Decision: agree SRR- 13 December 2017 meeting, Resolution Number STR/2017/56 – Item C1
1.6	Overflow Planning Services	Approve the procurement plan for overflow planning services to process resource consents.	Decision taken to approve the procurement plan at 4 April 2018 meeting. Resolution number STR/2018/15 – Item 10 and Resolution number STR/2018/13 – item C2
1.7	External Recruitment Supplier	Current All of Government (AoG) contract expires October 2017. New AoG contracts have been negotiated by MBIE. Council will enter into AoG agreements for six months and assess whether they meet our needs.	Decision taken to extend AoG agreements at 4 April 2018 meeting, Resolution number STR/2018/14 – Item 9 and Resolution number STR/2018/12 – item C1
1.8	Building Consents Regional Overflow Model	Approve the supplier recommendation for the Building Consents Regional Overflow Model	Decision: procurement plan agreed - 13 December 2017 meeting, Resolution number STR/2017/60 – Item C5 Decision: Supplier recommendation agreed at 11 June 2018 meeting, Resolution number STR/2018/27 – Item 12 and Resolution number STR/2018/33 – Item C2
1.9	Waiheke Island Waste Services Contracts	Approve a contract extension for Waiheke Island waste services contract	Update provided at the 11 July 2018 meeting, Resolution number STR/2018/41 – Item 11 and Resolution number STR/2018/36 – item C1 Decision: Approved contract extension at 11 July 2018 meeting.
1.10	Ports of Auckland stormwater project	Approve awarding of contract to successful supplier for Ports of Auckland stormwater project	Decision: Approve awarding of contract Resolution number STR/2018/79 – Item C1 Decision: approved awarding of contract at the 7 November 2018 meeting

3. Endorse Procurement Category Strategies
Priority #	Area of work	Reason for work	Strategic Procurement Committee role (decision or direction)
3.1	Waste Solutions Procurement Strategy	Create plan for go to market exercise for all waste collection (including food waste) and disposal activity prior to 2020	Update provided at the October 2017 meeting Resolution number STR/2017/40 - Item 9 Decision: Confirm strategy/challenge
3.2	Organics (food waste) Processing caddies and food waste bins	Create plan for go to market exercise for all aspects of the planned Organic (food waste) collection and Processing Service together with the caddies and bins required for collection.	Update provided at the October 2017 meeting Resolution number STR/2017/40- Item 9 and Resolution number STR/2017/45 – Item C1 Update received at 11 July 2018 meeting Resolution number STR/2018/40 - Item 10 and Resolution number STR/2018/43 – Item C1
3.3	ICT hardware	Create a plan for engaging the market to purchase ICT Hardware.	Update received at 7 March 2018 meeting – Resolution number STR/2018/7 – Item 12 and Resolution number STR/2018/10 – Item C1 Receive: No decision required
3.4	ICT Software	Create a plan for engaging the market to purchase Software.	Update received at 11 June 2018 meeting – Resolution number STR/2018/24 – Item 9 Decision: agree to endorse the Software Procurement Category Strategy
3.5	Vertical Construction Category Strategy	Development of the overall strategy for vertical construction and building	Update received at 11 June 2018 meeting – Resolution number STR/2018/29 – Item 14 and Resolution number STR/2018/34 – Item C4 Decision: endorse the vertical construction procurement category strategy

4. Enhance Group Sourced Procurement
Priority #	Area of work	Reason for work	Strategic Procurement Committee role (decision or direction)
4.1	Sustainable Procurement Framework	Give effect to principles to be agreed in Group Procurement Policy	Update provided at the December 2017 meeting. Resolution number STR/2017/53 Item 9

5. Improve Procurement Maturity
Priority #	Area of work	Reason for work	Strategic Procurement Committee role (decision or direction)
5.1	Ariba update	Update Committee on implementation of procurement enabling technology	Update provided at the October 2017 meeting Resolution number STR/2017/4 – Item 11

6. Other
Priority #	Area of work	Reason for work	Strategic Procurement Committee role (decision or direction)
6.1	Update on Waste Solutions contracts	Update the Committee on the current state of all waste contracts prior to the preparation of the Waste Solutions Procurement Strategy	Update provided at the October 2017 meeting Resolution number STR/2017/41- Item 10 and Resolution number STR/2017/46 – item C2
6.2	Review of Contract performance	Update the Committee on the performance of suppliers against key performance metrics under the Full Facilities Maintenance contracts	Receive: No decision required. Update provided at May 2018 meeting, Resolution number STR/2018/21 – item C2

Strategic Procurement Committee

12 December 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:

C1 CONFIDENTIAL: Update on supplier recommendations for St Marys Bay and Masefield Beach improvement project

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