Agenda of Strategic Procurement Committee

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

Date:

Time:

Meeting Room:

Venue:

Wednesday, 6 March 2019

9.30am

Room 1, Level 26
135 Albert Street
Auckland

Komiti Mahi Āta Torotoro Rawa /

Strategic Procurement Committee

OPEN AGENDA

MEMBERSHIP

Chairperson	Deputy Mayor Cr Bill Cashmore
Deputy Chairperson	Cr Ross Clow
Members	Cr Dr Cathy Casey
	Cr Linda Cooper, JP
	Cr Alf Filipaina
	Cr Penny Hulse
	Cr Daniel Newman, JP

Ex-officio	Mayor Hon Phil Goff, CNZM, JP

(Quorum 4 members)

Michelle Judge

Governance Advisor

28 February 2019

Contact Telephone: +64211950262

Email: michelle.judge@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

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

06 March 2019

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

5.1 Public input - First Union 7

6 Local Board Input 8

7 Extraordinary Business 8

8 Update on the 36th America's Cup infrastructure procurement 9

9 Update on the St Marys Bay and Masefield Beach improvement project 11

10 Update on the Daldy Street outfall extension project 15

11 Update on procurement of waste collection services 21

12 Information Report - 6 March 2019 25

13 Consideration of Extraordinary Items

PUBLIC EXCLUDED

14 Procedural Motion to Exclude the Public 33

C1 CONFIDENTIAL: Graffiti Services Contracts 33

C2 CONFIDENTIAL: Supplier recommendations for St Marys Bay and Masefield Beach improvement project 33

C3 CONFIDENTIAL: Supplier recommendations for Daldy Street outfall extension project 34

C4 CONFIDENTIAL: Waste collections procurement plan 34

1 Apologies

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

That the Strategic Procurement Committee:

a) confirm the ordinary minutes of its meeting, held on Thursday, 7 February 2019, including the confidential section, as a true and correct record.

4 Petitions

At the close of the agenda no requests to present petitions had been received.

5 Public Input

Standing Order 7.7 provides for Public Input. Applications to speak must be made to the Governance Advisor, in writing, no later than one (1) clear working day prior to the meeting and must include the subject matter. The meeting Chairperson has the discretion to decline any application that does not meet the requirements of Standing Orders. A maximum of thirty (30) minutes is allocated to the period for public input with five (5) minutes speaking time for each speaker.

5.1 Public input - First Union

Te take mō te pūrongo

Purpose of the report

1. To make a presentation to the Strategic Procurement Committee about how procurement decisions impact workers in the waste and recycling sector.

Whakarāpopototanga matua

Executive summary

2. Denise Roche, First Union, will speak to the committee about how procurement decisions impact workers in the waste and recycling sector.

Ngā tūtohunga

Recommendation/s

That the Strategic Procurement Committee:

a) receive the public input from Denise Roche, First Union, about how procurement decisions impact workers in the waste and recycling sector, and thank them for attending.

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.”

Strategic Procurement Committee

06 March 2019

Update on the 36th America's Cup infrastructure procurement

File No.: CP2019/02037

Te take mō te pūrongo

Purpose of the report

1. To provide an update on procurement of infrastructure being built to host the 36^th America’s Cup and other related infrastructure projects in the area.

Whakarāpopototanga matua

Executive summary

2. The infrastructure works for the 36^th America’s Cup are being delivered by the Wynyard Edge Alliance. Auckland Council and the Ministry of Business, Innovation and Employment (representing the Crown) are the owner participants in the Alliance. The other participants are McConnell Dowell, Downer, Beca and Tonkin and Taylor.

3. A Project Alliance Agreement was approved by the Chief Executives of Auckland Council and the Ministry of Business, Innovation and Employment in November 2018. The total capital cost of the base infrastructure is $152 million, with council contributing $71.7 million.

4. Development of the base infrastructure needed to host the America’s Cup is progressing within budget and according to planned timeframes.

5. Works commenced to build the America’s Cup base infrastructure in late December 2018. This rapid construction start-up is needed to achieve the dates by which Emirates Team New Zealand and challenger teams want to start training on the event race course.

6. The first assets, which are located around Emirates Team New Zealand’s base, will be available for use on the 15 May 2019.

Related infrastructure projects in the America’s Cup area

7. Staff have also assessed all the infrastructure works that were planned by the council group in the same geographic area as the America’s Cup. This process identified several infrastructure projects that must be delivered before the America’s Cup to support successful hosting of the event.

8. These projects include repairs to Wynyard Wharf (currently underway), relocation of the Sealink ferry terminal and the Daldy Street outfall extension.

9. The cost of these projects is separate from the budget of $152 million for the America’s Cup works. Budgets to fund these ‘auxiliary’ works were included in the Long-term Plan 2018-2028.

10. Staff analysis has shown that the most efficient way for these works to be delivered is through the Wynyard Edge Alliance. This will allow Auckland Council to achieve better value for money and certainty of delivery prior to the event.

11. Supplier recommendations for any of these projects which exceed the threshold for staff approval will be brought to the Strategic Procurement Committee before being included in the Project Alliance Agreement.

Ngā tūtohunga

Recommendation

That the Strategic Procurement Committee:

a) note the information contained in this update on procurement of the 36^th America's Cup infrastructure and other related projects in the area.

Ngā tāpirihanga

Attachments

There are no attachments for this report.

Ngā kaihaina

Signatories

Author

Deborah Morley - Owner Interface Manager

Authorisers

Barry Potter - Director Infrastructure and Environmental Services

Aaron Donaldson - Head of ICT & Corporate Procurement

Strategic Procurement Committee

06 March 2019

Update on the St Marys Bay and Masefield Beach improvement project

File No.: CP2018/24621

Te take mō te pūrongo

Purpose of the report

1. To note an update on the St Marys Bay and Masefield Beach 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. Resource consent for the project was granted in November 2018 by an Independent Hearings Panel. Four parties have lodged appeals against the consent in the Environment Court. Efforts at mediation took place during February 2019. Mediation efforts have reduced the appeals to three parties. Council staff expect the Environment Court proceedings to finish by July 2019.

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

5. An update on procurement of the project will be provided in the confidential section of the 6 March 2019 Strategic Procurement Committee meeting.

Ngā tūtohunga

Recommendations

That the Strategic Procurement Committee:

a) note the information contained in this report, on 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 suppliers.

Horopaki

Context

Project background - Resolving water quality issues in the western isthmus

6. 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.

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

8. 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.

9. The project involves the construction of a new storage tunnel to capture current overflows and divert them to a new pump station at Point Erin. When the capacity of the storage tunnel is exceeded overflows will go to a new sea outfall from Point Erin to deeper and more turbulent water in the harbour.

10. 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.

11. The project will have major benefits through reducing the frequency of overflows into the harbour from over 200 to approximately 20 a year. This will significantly reduce risks to public health from contact with potentially contaminated water. It will also improve operation of the broader stormwater system.

12. 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.

Tātaritanga me ngā tohutohu

Analysis and advice

13. Analysis and advice regarding procurement of the St Marys Bay and Masefield Beach improvement project will be provided in the confidential section of the 6 March 2019 Strategic Procurement Committee meeting.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

14. The St Marys Bay and Masefield Beach project forms part of the wider western isthmus water quality improvement programme which is being delivered in a partnership between Auckland Council and Watercare.

15. Watercare has provided input throughout the development and design of the St Marys Bay and Masefield Beach improvement project.

16. Other members of the Auckland Council family, such as Auckland Transport and Panuku Development Auckland, will also be impacted by the project. Council is working closely with these stakeholders to ensure that they are well aware of any potential impacts and that these are minimised throughout the design and delivery process.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

Local impacts

17. This project will have significant benefits for people living in the local area by reducing the level of discharges to two local beaches (St Marys Bay and Masefield Beach).

18. During the public consultation and resource consent process, local residents have expressed strong 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.

19. The Regulatory Committee considered the concerns raised by objectors under the Local Government Act on 16 November 2018 and determined that council should proceed with the project. Community concerns have also been recognised through the resource consent. This contains conditions that include extensive ground monitoring and requirements for the council to carry out community and stakeholder liaison.

20. The appeals against the resource consent will be addressed by council through the mediation and Environment Court process.

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

Local board views

22. 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

23. As outlined in previous reports to the Strategic Procurement Committee, 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.

24. 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

25. Financial implications arising from the procurement of the St Marys Bay and Masefield Beach improvement project will be provided in the confidential section of the 6 March 2019 Strategic Procurement Committee meeting.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

26. Risks and mitigations arising from the procurement of the St Marys Bay and Masefield Beach improvement project will be provided in the confidential section of the 6 March 2019 Strategic Procurement Committee meeting.

Ngā koringa ā-muri

Next steps

27. Next steps arising from the procurement of the St Marys Bay and Masefield Beach improvement project will be provided in the confidential section of the 6 March 2019 Strategic Procurement Committee meeting.

Ngā tāpirihanga

Attachments

There are no attachments for this report.

Ngā kaihaina

Signatories

Authors

Chris Stumbles - Healthy Waters Design and Delivery Manager

Craig McIlroy - General Manager Healthy Waters

Authorisers

Barry Potter - Director Infrastructure and Environmental Services

Aaron Donaldson - Head of ICT & Corporate Procurement

Strategic Procurement Committee

06 March 2019

Update on the Daldy Street outfall extension project

File No.: CP2019/01319

Te take mō te pūrongo

Purpose of the report

1. To note an update on the Daldy Street outfall extension project.

Whakarāpopototanga matua

Executive summary

2. The Daldy Street outfall is located underneath Wynyard Wharf, near the Sea Link terminal. During rain events, it regularly discharges urban stormwater and untreated wastewater overflows into the Wynyard Basin. This frequently creates a dark plume with a noticeable odour.

3. These discharges occur directly in the middle of the planned 2021 America’s Cup base and in the vicinity of designated recreational swimming sites (both existing and planned).

4. The Daldy Street outfall extension project will extend the outfall to the end of Wynyard Wharf or beyond (see Attachment A). This will improve the water quality in Wynyard Basin and reduce the frequency of closures of the nearby swimming site and negative impacts on high use areas around North Wharf

5. The project has been brought forward so that it can be delivered at the same time as the infrastructure works for the America’s Cup. Delivering these works at the same time will reduce disruption to the public, and of commercial spaces, especially in the North Wharf.

6. An update on procurement of the Daldy Street extension outfall project will be presented in the confidential section of the 6 March 2019 Strategic Procurement Committee meeting.

Ngā tūtohunga

Recommendations

That the Strategic Procurement Committee:

a) note the information contained in this report, on the Daldy Street outfall extension 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 suppliers.

Horopaki

Context

Need to improve water quality at Wynyard Wharf

7. The Daldy Street outfall is currently located underneath the south-eastern corner of Wynyard Wharf, near the Sea Link terminal. During rain events, this large diameter outfall discharges a mixture of urban stormwater and untreated wastewater overflows from the Freemans Bay catchment into the Wynyard Basin.

8. A dark plume with a noticeable odour, strong enough to generate complaints from local business owners and Sea Link ferry staff, is a regular occurrence at the site. Discharges from the Daldy Street outfall exit into Wynyard Basin directly in the middle of the planned 2021 America’s Cup base. Discharges are also in the vicinity of designated swimming recreation sites (both existing and planned) as shown in Attachment A.

9. The Daldy Street outfall poses a risk to the environment and to public health and creates a significant nuisance. These risks are magnified when rain events occur during low or incoming tide conditions. These risks will be further increased by proposed breakwater additions to the Wynyard Basin as part of the America’s Cup modifications, which will reduce flushing capacity in the basin.

10. North Wharf adjacent to Wynyard Basin is a popular destination for tourists and locals alike, due to the variety of restaurants, cafes and events scheduled in and around the Wynyard Quarter area.

11. Over the next decade, the area will continue to be redeveloped with a mixture of built environment and open public spaces that celebrate the maritime heritage and distinctive character of Auckland’s waterfront. Regular discharge plumes from the Daldy Street outfall, which create visual and odour affects, will have negative aesthetic and economic consequences for the development of this area.

Overview of Daldy Street outfall extension project

12. To address these issues, the Daldy Street outfall extension project was included in the Long-Term Plan 2018-2028. The key objectives of the project were to improve the water quality in the Wynyard Basin and prevent the dark plume and odours from negatively impacting on the high use area around North Wharf.

13. A comprehensive options assessment determined that a gravity extension of the Daldy Street outfall under Brigham Street to the end of Wynyard Wharf or beyond is the most cost effective and practical option.

14. Moving the outfall to this low risk area, where there will be improved dispersion and mixing of overflows, will reduce negative impacts on Wynyard Basin and the nearby Safe Swim site.

15. A number of high level benefits will be gained from undertaking the Daldy Street outfall extension project. These are listed below:

· Water quality improvements will reduce the number of days that the nearby designated Safe Swim site will be closed due to poor water quality.

· Amenity value of the Wynyard Basin will be improved by a reduction in negative visual and odour effects. This will increase the value of the surrounding Wynyard Quarter area to both locals and visitors alike.

· Cost savings and reduced public disruption as this project will be carried out at the same time as the works for the America’s Cup bases.

16. Overall, this project will reduce risk to both the environment and public health.

17. The project is also part of a wider quality of water improvement works, which will ultimately reduce the number of overflows and level of contaminants entering the Waitematā Harbour.

18. For example, infrastructure improvements have recently been completed on Franklin Road and the Picton Street stormwater upgrade project is currently being procured. Together these two projects will reduce the frequency of overflows entering the Daldy Street outfall from this source from 40 to 12 a year.

19. Once the Central Interceptor is completed, the frequency of overflows will reduce to four to six a year.

Tātaritanga me ngā tohutohu

Analysis and advice

20. The resource consent for construction of the Daldy Street outfall extension project has been granted and preliminary design has been completed.

21. Staff have also considered various options for procuring a supplier to deliver the project. Analysis and advice relating to the procurement will be presented in the confidential section of the 6 March 2019 Strategic Procurement Committee meeting.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

22. Delivery of the infrastructure for the 36^th America’s Cup is being carried out by the Wynyard Edge Alliance. Auckland Council is working closely with Panuku, as the Council Controlled Organisation which is most impacted by the America’s Cup works.

23. Panuku is supportive of the proposed approach for delivery of the Daldy Street outfall extension project.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

24. The Daldy Street outfall extension project will provide enhanced water quality and amenity value to the vibrant Wynyard Quarter community. This will benefit local communities both in the short-term, with the hosting of the America’s Cup, and in the longer term as Wynyard Quarter transitions from an industrial area to a people-oriented space.

25. Delivery of the Daldy Street outfall extension project at the same time as infrastructure works for the 36^th America’s Cup will avoid repeated disruption to surrounding public and commercial spaces.

26. The Waitematā Local Board is aware of the Daldy Street project and has been provided with several updates on it through Healthy Water’s quarterly reports on major capital projects.

27. Going forward, the Waitematā Local Board will be provided with regular updates on the whole programme of works that is being delivered to support the 36^th America’s Cup, including auxiliary projects such as the Daldy Street outfall extension.

Tauākī whakaaweawe Māori

Māori impact statement

28. Auckland Council is committed to working closely with Māori on the design and delivery of water quality projects, as these are of particular significance to mana whenua in their role as kaitiaki of Auckland’s waterways.

29. Healthy Waters informed all 19 mana whenua authorities in Tāmaki Makaurau at the beginning stages of the Daldy Street outfall extension project, to ensure that they had the opportunity to input into the concept design phase. Representatives of five iwi have attended hui on the project and provided feedback. These were Te Rūnanga o Ngāti Whātua, Ngaati Whanaunga, Ngāti te Ata Waiohua, Ngāti Maru, and Ngāi Tai ki Tāmaki.

30. Several hui and site visits have been held and consultation and feedback from mana whenua throughout design and delivery of the project will be ongoing. To date, mana whenua feedback has focused on the importance of improving water quality and- preservation of ecology in the new outfall location. This will be taken into account during detailed design and construction of the outfall extension.

31. Mana whenua have also sought assurance that the project is part of a wider programme of works to improve water quality. Staff have provided details regarding other programmes in the area, like Picton Street, which will reduce discharges into the Waitematā.

Ngā ritenga ā-pūtea

Financial implications

32. Financial implications relating to procurement of the Daldy Street outfall extension project will be discussed in the confidential section of the 6 March 2019 Strategic Procurement Committee agenda.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

33. Risks and mitigations arising relating to the Daldy Street outfall extension project will be discussed in the confidential section of the 6 March 2019 Strategic Procurement Committee agenda.

Ngā koringa ā-muri

Next steps

34. Next steps relating to the Daldy Street outfall extension project will be discussed in the confidential section of the 6 March 2019 Strategic Procurement Committee agenda.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇩	Map showing location of Daldy Street oufall extension	19

Ngā kaihaina

Signatories

Author

Tom Mansell - Principal Social Outcomes

Authorisers

Craig McIlroy - General Manager Healthy Waters

Barry Potter - Director Infrastructure and Environmental Services

Aaron Donaldson - Head of ICT & Corporate Procurement

Strategic Procurement Committee

06 March 2019

Update on procurement of waste collection services

File No.: CP2019/02323

Te take mō te pūrongo

Purpose of the report

1. To note an update on the procurement of waste collection services.

Whakarāpopototanga matua

Executive summary

2. Auckland Council’s refuse collection contracts will expire in June 2020. To enable continuity of service delivery, contracts for these collection services must be confirmed by September 2019.

3. In developing a procurement plan staff have considered the goals of the Waste Management and Minimisation Plan 2018 and the findings of the Value for Money (S17a) review of waste services which Auckland Council completed in November 2017.

4. More information about procurement of waste collection services will be provided in the confidential section of the 6 March 2019 Strategic Procurement Committee meeting.

Ngā tūtohunga

Recommendation/s

That the Strategic Procurement Committee:

a) note the information contained in this report, on procurement of waste collection services, 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 suppliers.

Horopaki

Context

5. The council currently has various kerbside collection contracts in place for waste services. These include collections for refuse (excluding in legacy Rodney), recycling, inorganics, and food scraps (legacy urban Papakura only). The refuse contracts are expiring in June 2020.

6. Table 1 below shows the current number of suppliers, value and expiry date for council’s collection and bin contracts.

7. In most areas, refuse collection services are provided through pay as you throw but in legacy Auckland City and Manukau City Council areas they are still funded through rates. Recycling and food scraps collection services are funded through rates in all areas they are provided.

8. A Value for Money (S17A) Review of the cost-effectiveness of Auckland Council’s waste service delivery was completed in November 2017. This indicated that, although Auckland Council has achieved value in delivering waste services, there are areas of opportunity to deliver greater value for money.

9. The findings of this review have informed staff’s development of a plan for procuring waste collection services.

Table 1. Auckland Council’s current refuse and recycling collection and bin contracts

Waste bins and collection contracts	Current contract model and status	Expiry date (plus extensions)
Refuse collections	Eight contract areas and five suppliers (excludes Rodney private collection)	Expire in June 2020
Recycling collections	Seven contract areas and three suppliers.	Expire in June 2024
Food scraps collections	One contract area and supplier in Papakura. Services introduced to rest of region from 2021	For Papakura – expire in June 2020
Refuse bins- provision and maintenance	One supplier	Expire in June 2022

*Note – Gulf island contracts are not shown as these are being procured through a separate process.

Tātaritanga me ngā tohutohu

Analysis and advice

10. Analysis and advice regarding procurement of waste collection services will be provided in the confidential section of the 6 March 2019 Strategic Procurement Committee meeting.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

11. Impacts on other members of the council group relating to procurement of waste collection services will be provided in the confidential section of the 6 March 2019 Strategic Procurement Committee meeting.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

12. Consultation on the Waste Management and Minimisation Plan 2018 indicated that local boards broadly supported the direction of the plan in relation to delivery of waste collection services.

13. Several of the southern local boards raised concerns that their communities were finding it challenging to adjust to new waste services. They requested that supporting communities to adjust to future service changes, particularly to pay-as-you throw refuse, be made a priority.

14. Most boards supported the introduction of pay-as-you-throw refuse services.

15. Franklin Local Board noted an interest in encouraging more innovation from the private sector to deliver local economic benefits.

Tauākī whakaaweawe Māori

Māori impact statement

16. Māori priorities regarding waste were identified through consultation with mana whenua and mataawaka on the Waste Management and Minimisation Plan 2018.

17. The tradition of kaitiakitanga to sustain and restore our collective resources, means that waste minimisation approaches are vital and broadly supported by Māori. In particular, mana whenua support the diversion of waste from landfill and the introduction of a food scraps collection services.

Ngā ritenga ā-pūtea

Financial implications

18. Financial implications arising from procurement of waste collection services will be provided in the confidential section of the 6 March 2019 Strategic Procurement Committee meeting.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

19. Risks and mitigations arising from procurement of waste collection services will be provided in the confidential section of the 6 March 2019 Strategic Procurement Committee meeting.

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Next steps

20. Next steps arising from procurement of waste collection services will be discussed in the confidential section of the 6 March 2019 Strategic Procurement Committee meeting.

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Attachments

There are no attachments for this report.

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Signatories

Author

Parul Sood – Waste Solutions Programme Manager

Authorisers

Andrew Ovenden - General Manager Waste Solutions (Acting)

Dean Kimpton - Chief Operating Officer

Aaron Donaldson - Head of ICT & Corporate Procurement

No.	Title	Page
a ⇩	Strategic Procurement Committee Forward Work Programme - 6 March 2019	27

Strategic Procurement Committee

06 March 2019

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: Graffiti Services Contracts

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