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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Thursday, 7
February 2019
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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Deputy Mayor 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
30 January 2019
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
·
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.
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Strategic
Procurement Committee
07 February 2019
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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 7
8 Update on
Waiheke waste services procurement plan 9
9 Update on
capital projects over $5 million 13
10 Information Report - 7
February 2019 17
11 Consideration of
Extraordinary Items
PUBLIC EXCLUDED
12 Procedural
Motion to Exclude the Public 25
C1 CONFIDENTIAL: Waiheke waste
services procurement plan 25
C2 CONFIDENTIAL: Update on capital
projects over $5 million 25
An apology from Chairperson B
Cashmore for early departure on council business 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, 12 December 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
07 February
2019
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Update
on Waiheke waste services procurement plan
File No.: CP2018/24752
Te take mō te
pūrongo
Purpose of the report
1. To
provide an update on the Waiheke waste services procurement plan.
Whakarāpopototanga matua
Executive summary
2. The
current Waiheke waste contracts in place are set to expire on 30 June 2020.
3. The scope of services for these contracts includes:
· the collection
of residential solid waste and inorganics
· the collection
of recyclables
· the operation
of the Waiheke waste transfer station and haulage of materials.
4. A
procurement plan for Waiheke waste services to commence from 1 July 2020 has
been developed. Approval of this procurement plan will be sought as part of the
confidential section of the 7 February 2019 Strategic Procurement Committee
meeting
5. Council’s
approach to procuring these services will enable the local board to have a role in decision-making over waste
services procurement for their community. This is aligned to the intent of the
Waiheke Local Governance pilot, which aims to trial an increased level of
devolved decision-making to the board.
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Ngā tūtohunga
Recommendations
That the Strategic Procurement
Committee:
a) note
the information contained in this report, on the Waiheke waste service
procurement plan, 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 the
council's position in negotiations with waste suppliers.
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Horopaki
Context
6. On
12 June 2018, the Environment and Community Committee adopted the Auckland
Waste Management and Minimisation Plan 2018: Working together for Zero
Waste.
7. The
Waste Management and Minimisation Plan 2018 recognises the unique nature of the
Hauraki Gulf Islands and their need for tailored approaches. Accordingly, the
Tīkapa Moana Hauraki Gulf Islands Waste Plan was developed specifically
for this region of Auckland and adopted as part of the overall waste plan.
8. The
main goals of the Tīkapa
Moana Hauraki Gulf Island Waste Plan for Waiheke are around:
· community
engagement and behaviour change to reduce waste to landfill
· increasing
recycling and the reuse of materials on Waiheke
· establishing a
community recycling centre by 2020
· ensuring all
of Waiheke’s green and food waste is composted, using on-island solutions
and maximising local economic development opportunities
· reducing waste
coming on to Waiheke
· reducing
commercial, construction and demolition waste to landfill
· reducing
visitor and boatie waste.
9. Auckland
Council provides various waste services contracts on Waiheke which are key to
the goals of the Tīkapa Moana Hauraki Gulf Islands Waste Plan. These
services include the following:
· kerbside
refuse collection
· kerbside
recycling collection
· annual
inorganic collection
· illegal
dumping services
· throw’n’go
bins collection at ferry points
· summer waste
barge
· operation of
the Waiheke waste transfer station and haulage.
10. Waiheke has a
history of proactive leadership around waste minimisation, which remains strong
today. The diversion of waste to landfill was a primary driver during the eight
years that waste was managed by a community-owned social enterprise on Waiheke.
This has continued under the current supplier, Waste Management New Zealand
Limited.
11. The current
supplier’s contract was awarded in 2009 for a period of ten years and was
extended for one year for expiry on 30 June 2020. The
contract’s scope of services includes:
· the collection
of residential solid waste and inorganics
· the collection
of recyclables
· the operation
of the Waiheke waste transfer station and haulage of materials.
Tātaritanga me ngā
tohutohu
Analysis and advice
12. Analysis
and advice relating to the Waiheke waste services procurement plan will be
presented in the confidential section of the 7 February 2019 Strategic
Procurement Committee meeting.
Ngā whakaaweawe me
ngā tirohanga a te rōpū Kaunihera
Council group impacts and views
13. Procurement
of Waiheke waste collection services will impact on multiple council
departments including Customer Services, Communications, Digital and
Transformation, Commercial and Finance.
14. To ensure the
impacts and views of these departments are known and understood, an overarching
project and team has been established for Waiheke waste services. This
procurement forms a part of that project and involves representatives from each
of these departments. Other council departments and council controlled
organisations are consulted as required.
Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
Local impacts
15. As identified through consultation on the waste plan, there is a
desire for greater community management of waste on Waiheke. The council has
provided a mentoring programme for community groups to improve capacity and
capability in relation to waste services.
16. Once new contracts are awarded, the Waiheke community will benefit
from local economic development opportunities. An outcome of this procurement
will be to ensure that waste services are put in place that will help to make
Waiheke a cleaner and more attractive place to live in, ultimately contributing
to the council’s vision of making Auckland a world-class city.
Local board views
17. The
Waiheke Local Board was consulted throughout development of the Tīkapa
Moana Hauraki Gulf Islands Waste Plan.
18. They
also provided feedback on waste services during development of the Waste
Management and Minimisation Plan 2018 through the following resolution:
‘that Auckland Council promote locally based service providers across all
the waste streams that ensures on-island control of the full waste stream with
community participation within the Waiheke local board area’ (resolution
WHK/2018/16).
19. Three
workshops were held with the Waiheke Local Board regarding the procurement of
Waiheke waste services on 5 April, 5 July and 27 September 2018. There are also
monthly briefings between Waste Solutions and the board chair to ensure the
board is informed of progress and the board’s views continue to be
considered throughout the procurement process.
20. The Waiheke Local Board governance pilot to trial an increased level
of devolved decision-making to the board is currently underway. This is a
three-year trial and formal changes to decision-making (with some case by case
exceptions) will not be made until the trial is evaluated and reported back in
2021. In the interim, staff support enabling the board to have a role in
decision-making over waste services procurement for their community.
21. A more detailed update on how the Waiheke Local Board will have
input into procurement of waste collection services will be presented in the
confidential section of the 7 February 2019 Strategic Procurement Committee
meeting.
Tauākī whakaaweawe
Māori
Māori impact statement
22. Waste
minimisation and the reuse of resources is of key significance to mana whenua
in their role as kaitiaki of Tāmaki Makaurau’s natural environment.
23. Mana
whenua were consulted during the drafting of the Waste Management and
Minimisation Plan 2018 and the Tīkapa Moana Hauraki Gulf Islands Waste
Plan.
24. The procurement approach for Waiheke waste services aims to give
effect to the waste minimisation aspirations of mana whenua through aligning
with their feedback on the waste plan. This feedback notes the importance to
mana whenua of ‘waste minimisation and turning waste into
resources’, and states that the council will ‘identify and progress waste-related opportunities with mana whenua
in the islands’.
Ngā ritenga
ā-pūtea
Financial implications
25. Financial
implications of the Waiheke waste services procurement plan will be presented
in the confidential section of the 7 February 2019 Strategic Procurement
Committee meeting.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
26. Risks
and mitigations arising from the Waiheke waste services procurement plan will
be presented in the confidential section of the 7 February 2019 Strategic
Procurement Committee meeting.
Ngā koringa ā-muri
Next steps
27. Next steps
are discussed in more detail in the confidential section of
the 7 February 2019 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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Terry Coe - Waste Enterprises and Refuse
Manager
Parul Sood - Waste Solutions Programme
Director
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Authorisers
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Barry Potter - Director Infrastructure and
Environmental Services
Jazz Singh - General Manager Procurement
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Strategic
Procurement Committee
07 February
2019
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Update on capital projects over $5
million
File No.: CP2018/24834
Te take mō te
pūrongo
Purpose of the report
1. To
provide an update on currently agreed capital projects with a
budget of over $5 million.
Whakarāpopototanga matua
Executive summary
2. This
report provides a progress update on all currently agreed capital projects with
a budget of over $5 million.
3. Projects
are briefly described, including what stage the project is at in its lifecycle,
whether the projects are currently under or over budget, and expected
completion dates.
4. Staff
will keep the capital project report updated, and report this to the Strategic
Procurement Committee on a quarterly basis.
5. The
FY19 budget for the 80 (over $5 million) projects included in the report totals
$279.6 million. This number is likely to change due to the carry
forward/deferral process.
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Ngā tūtohunga
Recommendation/s
That the Strategic Procurement
Committee:
a) note
the information contained in this report, on the updated summary of currently
agreed capital projects, 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 with suppliers.
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Horopaki
Context
6. As
part of the council project management process, all capital projects are
updated monthly using the council’s Sentient project management system.
Current project details are then used to compile the quarterly update on
projects over $5 million that is subsequently presented to the Strategic
Procurement Committee. The projects are sorted by
Portfolio (Department) and Phase.
7. Details
provided in the confidential report include:
a) Report
ID – starting at 1 – to enable project identification for this meeting
b) Project
Sentient ID and Project Name
c) Project
Objectives
d) Portfolio
Department (e.g. Healthy Waters, Community Facilities, etc.)
e) Ward
f) Local
Board Area (where the Local Board has decision making involvement –
otherwise this will say Regional/Region-Wide)
g) Current
IDF project phase of the project (e.g. strategic assessment, initiate, plan,
deliver)
h) Estimated
start and finish dates
· CPI traffic light indicator (Cost Performance Index compares actual
project spend to how much would be expected to be spent this far into the
project) This indicator is most reliable in the Delivery phase of the project.
· Green indicates that the project has spent less than would be
expected this far into the project
· Amber indicates that the project has spent slightly more than would
be expected this far into the project
· Red indicates that the project has spent significantly more than
would be expected this far into the project. There may be good reasons for this
- e.g. land purchases early in projects.
· Grey indicates that the project has yet to have any expenditure
i) %
of project complete per the Project Manager
j) Total
project budget – all years
k) Total
project actuals – all years
l) Total
project budget – FY19
m) Total
project actuals – FY19
n) Total
project variance (Actuals – Budget) – FY19 (a negative figure is an
underspend)
o) Project
Manager Commentary
p) Local
Board Commentary
8. As
well as a list of all of the projects, the confidential report also includes a
breakdown projects by Ward and Department with traffic light values.
9. The
reports are being compiled by the council’s Strategic Portfolio and
Programme Office (SPPO) and the quarterly report will be delivered by the Head
of the SPPO, Ramari Slattery.
Tātaritanga me ngā
tohutohu
Analysis and advice
10. Commentary
from Project Managers regarding project progress is provided in Attachment B.
However, should committee members require additional clarification or details,
council staff will seek to provide these in a timely manner.
11. Attachment A
provides details on project progress. 81% of projects in the Delivery phase
have a Cost Performance Index of Amber or Green. This compares to 82% in the
previous quarter. Details on key changes will be provided by senior managers at
the meeting.
Ngā whakaaweawe me ngā
tirohanga a te rōpū Kaunihera
Council group impacts and views
12. Council works with Council Controlled Organisations (CCOs) and other
departments in a number of different ways while delivering projects. Details
and examples are provided in the confidential section of the agenda.
Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
13. Consultation
with local boards on the progress of projects is included. More detailed
engagement is being managed by the relevant departments within the Operations
Division.
Tauākī whakaaweawe
Māori
Māori impact statement
14. Māori
are regularly kept up to date on project delivery through regular reporting by
the appropriate departments in the Operations Division.
Ngā ritenga
ā-pūtea
Financial implications
15. Attachment B
shows budgets, spend and forecast for individual projects. These financials are
regularly reported within the relevant departments.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
16. All project
risks are stored within the Sentient project management system used for all
capital projects. Project Managers may have also referred to key risks in their
commentary in Attachment B.
Ngā koringa ā-muri
Next steps
17. The next
report will be provided at the May 2019 Strategic Procurement Committee
meeting. The $5M Project report is provide quarterly.
Ngā tāpirihanga
Attachments
There are no attachments for
this report.
Ngā kaihaina
Signatories
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Author
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Dan Auber - Enterprise Capability Manager
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Authorisers
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Andrea Bruce - Acting Head of
Strategic Portfolio & Programme Office
Jazz Singh - General Manager Procurement
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Strategic
Procurement Committee
07 February
2019
|
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Information Report - 7 February 2019
File No.: CP2018/25264
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 the items referred to in this summary.
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Ngā tūtohunga
Recommendation/s
That the Strategic Procurement
Committee:
a) receive
the information report – 7 February 2019.
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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
- 7 February 2019
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19
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Ngā kaihaina
Signatories
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Author
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Michelle Judge - Governance Advisor
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Authorisers
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Jazz Singh - General Manager Procurement
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Strategic
Procurement Committee
07 February
2019
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Strategic
Procurement Committee
07 February
2019
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Strategic
Procurement Committee
07 February
2019
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Strategic
Procurement Committee
07 February
2019
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Strategic
Procurement Committee
07 February
2019
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Strategic
Procurement Committee
07 February
2019
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Strategic
Procurement Committee
07 February
2019
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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:
Waiheke waste services procurement plan
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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)(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 commercially sensitive information that could
impact on council's position in negotiations with waste 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.
|
C2 CONFIDENTIAL:
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
|
|
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.
|
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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