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

06 June 2019

Fleet Optimisation Report - Update

File No.: CP2019/09259

Te take mō te pūrongo

Purpose of the report

1. To update the Strategic Procurement Committee on Auckland Council’s fleet optimisation program and the integration of electric vehicles (EVs) into council’s fleet.

Whakarāpopototanga matua

Executive summary

2. Significant progress has been achieved on improving fleet utilisation, health and safety concerns and the electrification of the fleet, which now has 14 EVs. Three of these have recently been included in the Henderson general pool.

3. Upgrades in the telematics reporting and mobile phone access to pool vehicles will be trialled shortly. If successful fleet team members efforts will be redirected to fleet utilisation improvements and fleet reduction.

4. In March the general pool utilisation was 74 percent, this exceeds the target of 70 percent.

5. The demands on services provided by Council due to Auckland’s growth resulted in the fleet growing by an additional 27 passenger and light commercial vehicles in the past year. Projects such as Kauri Die Back and the need for more Regulatory Inspectors were the main drivers for this. It is expected that the number will continue to increase going forward.

6. Alternatives transport options are a key strategy to minimise passenger vehicle travel. Extending the E-bike fleet, adding AT Hop cards to general vehicle pools, investigating ride share options and promoting Skype for business are currently being undertaken by the Fleet Services team.

7. The fleet team are working closely with Corporate Property team on their infrastructure strategy to identify opportunities to reduce the fleet size.

8. On December 1^st,2018 the fleet team took over responsibility of Auckland Transport’s fleet.

9. The fleet team has been looking to accelerate the electrification of the fleet, as part of contributing to council’s carbon reduction goals.

10. There are several factors restricting the uptake of EVs including vehicle costs, infrastructure cost, FBT and depreciation costs and suitable model availability.

11. The combined Albert Street and Bledisloe general vehicle pools has been identified as the likely option to embark on an accelerated EV program.

Ngā tūtohunga

Recommendation/s

That the Strategic Procurement Committee:

a) receive the fleet optimisation and electrification update report.

Horopaki

Context

Background

12. Council’s vehicle fleet is made up of several different vehicles types to meet different operational needs. This includes passenger cars, utility vehicles, light commercial vehicles and some heavy-duty vehicles.

13. An analysis conducted by EY in May 2015 identified that the average utilisation of Auckland Council’s vehicles was 52%, significantly less than the target 70% set in 2013 to align with industry best practice.

14. In 2016, an internal business case was prepared to optimise fleet operations in council. This was approved by management and subsequently consolidated all fleet operations, budget and responsibilities to the Procurement team.

15. At the time of this change, the fleet size was 810 but this grew to a high of 847 due to need to provide vehicles to the newly recruited additional Building Inspectors.

Implementation

16. Procurement undertook to look at the following key improvements as a priority for fleet:

a) introduce a real time booking tool to facilitate greater access to vehicles and provide assurance to the business that vehicles will be available when required;

b) develop and implement a driver behavior management framework to support the requirements of the Health and Safety at Work Act 2015;

c) develop robust reporting framework for managing fleet utilisation;

d) enhance the fleet management function capabilities and expertise to better meet the changing fleet and travel requirements of the business and support the ongoing optimisation (and reduction where possible) of the fleet;

e) produce a green fleet strategy supported by a 5-year plan to reduce council’s carbon emissions by introducing lower, and no carbon, emitting vehicles, optimising travel patterns (work order / inspection scheduling) and promoting and facilitating alternative forms of transport.

17. This first major change implemented was Custom Fleet taking over the day-to-day back office fleet management functions. They also provided us with custom software and booking tools to manage and monitor use of fleet vehicles.

18. To obtain the best commercial arrangements for fleet costs. Council is now a party to the AOG agreement managed by MBIE for vehicle acquisitions and the NZDF syndicated contract for fuel.

19. The introduction of new GPS based tracking (telematics) devices has been completed. These devices are now installed in all Council fleet vehicles and new replacement vehicles have the devices fitted as part of the fit-out process prior to delivery.

20. The telematic devices provide required data to enable the fleet team to monitor use and identify opportunities to optimise the fleet size and makeup.

21. An updated version of the telematics reporting function will soon be trialled and is expected to provide greater reporting capability.

22. A trial of mobile phone access to pool vehicles will commence shortly. If successful it is expected that this initiative will help to free up time for the fleet services team which will enable them to concentrate on fleet reduction and utilisation improvement.

23. Working with Custom Fleet and Poolcar (our booking system provider), the fleet team have calculated that the utilisation of the pool cars for March 2019 was 74 percent which exceeded the target of 70 percent.

24. After successfully reducing the passenger and light commercial fleet to below 800 in the 2017/18 financial year, demands from various business units for additional vehicles resulted in the fleet number to grow to 817 in the 2018/19 financial year. The additional vehicles were for Healthy Waters, Kauri Dieback, Bio Security, Westhaven Marina, Park Rangers, Farms and Regulatory.

25. It is expected that requests for additional vehicles for dedicated roles will continue as associated demands of a growing city impact on operational activity. Requests will be scrutinised by the fleet team and will require Tier 2 management approval.

26. The Fleet Team are working closely with the Corporate Property team as they implement their property strategy to identify how this could provide opportunities to further reduce overall fleet size and increase use.

27. Council is also in early discussions with several car share providers. This may lead to trialling of shared vehicles or fleets to see if this is a viable alternative which could further help to reduce the fleet size and increase the percentage of travel using zero emitting vehicles.

28. There are now 10 E-Bikes in the Pool Car Booking system (three at Albert St, three at Bledisloe, two at Graham St, one each at Henderson and Ōrewa. An E-Bike has also been located on Aotea Great Barrier Island for Council use. E-Bikes will continue to be promoted as an option for local travel.

29. AT Hop cards have been added to the Albert St, Bledisloe, Henderson, Manukau, Takapuna and Orewa pool booking systems. Promoting public transport as a travel option is a key objective of the fleet team

30. Other initiatives such as Skype for Business and ridesharing in pool cars could provide other opportunities to further reduce the fleet size.

31. On December 1^st,2018 the fleet team took over responsibility of Auckland Transport’s fleet. The next phase of this project is to investigate aligning telematics to improve reporting capability.

Electric Vehicles

32. There are 14 EVs in the Council fleet. These are located in the Albert St and Henderson pools, one on Great Barrier Island and one for the Mayor’s use.

33. A Nissan Leaf located in the Albert St Pool is to be relocated to Waiheke Island shortly. This will be replaced by an additional Hyundai Ioniq EV.

34. EV’s will be included in the Orewa pool in the 2019/2020 financial year and the viability of including EVs into the Manukau fleet will be investigated in the 2019/2020 financial year.

35. EVs will continued to be purchased using the current replacement budget where opportunities exist.

Tātaritanga me ngā tohutohu

Analysis and advice

36. The current purchase price for EVs is significantly higher than internal combustion engine (ICE) vehicles.

37. Replacing the current fleet with EVs over the next five years would require additional funding of around 2.3 times the cost of replacing them with ICE vehicles if calculated at the current difference between the Ioniq and the Prius C. The potential of introducing plug in electric hybrid vehicles (PHEVs) into the fleet in 2020/2021 financial year will also be investigated. PHEVs have a lower purchase price than a full EV and have lower emissions than an ICE vehicle. Charging infrastructure costs would be additional for EVs and PHEVs.

38. There is currently a limited range of EVs available in New Zealand. Only five compact type full EVs and one van can be purchased off the AOG catalogue. No 4WD SUVs or Utes are available. MBIE has provided a guide on makes and models that they expect to be introduced into New Zealand over the next few years and although there will be more options these will predominately be compact or top end models and will do little to provide suitable replacements options for Council’s SUV or Ute replacement needs.

39. Although charging units are relatively inexpensive the overall costs for charging infrastructure can vary considerably from site to site. Variables such as the location of a power source or the power capacity at a site can influence the cost significantly.

40. As part of the FY20 budget process the fleet team requested additional capital funds to support increasing the rate of EV’s into the council fleet but due to the considerable budget pressure Council faces this was declined. We will continue to look for all opportunities to add to our EV fleet where budget allows, we will also continue to replace current ICE vehicles with Hybrid vehicles where suitable.

41. Embarking on an ambitious EV programme while prices are at a premium will likely result in the vehicles residual value at sale being relatively low and depreciation cost significantly higher than an ICE equivalent. Fringe Benefit Tax payments which are based on the vehicles purchase price will also be greater than the ICE equivalent. This will impact on any opex savings gains from the lower running costs of EVs.

42. The Energy Efficiency and Conservation Authority (EECA) has calculated that the fuel running cost of an EV is the equivalent of paying 30 cents a litre. Given the average number of kilometres that a council vehicle travels is still relatively low, when evaluating the total cost of ownership (TCO), the difference in purchase price is not recovered through the fuel savings. The continuing escalation of fuel prices will help to reduce the payback period.

43. The Bledisloe carpark will become unavailable soon due to CRL construction and the Bledisloe pool will be joining Albert St pool. Both pools are predominately made up with compact vehicles and combined with the fact that Albert St has adequate power capacity this would be the best place to embark on an accelerated EV programme. The charging Infrastructure costings to do this have been estimated at $700k.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

44. We continue to work with our CCOs to coordinate fleet as a group service where appropriate. Council group is already realising savings from some consolidation in fleet management.

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

Local impacts and local board views

45. We have not specifically consulted with local boards regarding the fleet optimisation programme. However, fleet services provide an important tool to enable council staff to provide effective services to elected members and the community.

46. The Procurement and Fleet team played an important part in introducing solar charging and an EV to great Barrier Island Local Board offices.

47. These needs are considered in any decisions on changes to fleet. Our vehicles are driven by staff to attend local board meetings; our pool vehicles are not utilised by elected officials.

Tauākī whakaaweawe Māori

Māori impact statement

48. We have not specifically consulted with Māori for this report. The environmental impacts of our fleet changes should have a positive impact on all residents of Tāmaki Makaurau.

Ngā ritenga ā-pūtea

Financial implications

49. The vehicle replacement programme will be within the allocated budget for the 2020/21 financial year.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

50. The key risks identified with EVs being introduced to the fleet is the rapidly changing technology and market for EVs. These will have to be considered in any business case to electrify the fleet and provide enough flexibility to change as required.

Ngā koringa ā-muri

Next steps

51. The next fleet update report will be provided to the November 2019 Strategic Procurement Committee meeting.

Ngā tāpirihanga

Attachments

There are no attachments for this report.

Ngā kaihaina

Signatories

Author	Alan McDonnell - Head of Ops Services Procurement
Authoriser	Jazz Singh - General Manager Procurement

Strategic Procurement Committee

06 June 2019

$5 million capital projects update

File No.: CP2019/07070

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
$228.4 million.

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.

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 commentary report detailing:

· Report ID – starting at 1 – to enable project identification for this meeting

· Project name

· Project objectives

· Ward

· Local board area (where the local board has decision making involvement – otherwise this will say Regional/Region-Wide

· 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.

o Green indicates that the project has spent less than would be expected this far into the project

o Amber indicates that the project has spent slightly more than would be expected this far into the project

o 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.

o Grey indicates that the project has yet to have any expenditure

· Project manager commentary

· Local board commentary

8. In addition, a financial report is included, which has the following:

· Report ID – starting at 1 – to enable project identification for this meeting

· Project name

· Ward

· Local board area (where the local board has decision making involvement – otherwise this will say Regional/Region-Wide

· Current Investment Delivery Framework (IDF) project phase of the project (for example, strategic assessment, initiate, plan, deliver)

· Estimated start and finish dates

· % of project complete per the project manager

· Total project budget – all years

· Total project actuals – all years

· Total project budget – FY19

· Total project actuals – FY19

· Total project variance (Actuals – Budget) – FY19 (a negative figure is an overspend)

9. 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.

10. The reports are being compiled by the council’s Strategic Portfolio and Programme Office (SPO) and the quarterly report will be delivered by the Head of the SPO, Ramari Slattery.

Tātaritanga me ngā tohutohu

Analysis and advice

11. Commentary from project managers regarding project progress is provided in the confidential report. However, should committee members require additional clarification or details, council staff will seek to provide these in a timely manner.

12. 74% of projects in the Delivery phase have a Cost Performance Index of amber or green. This compares to 81% 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

13. The 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 report.

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

Local impacts and local board views

14. 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

15. 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

16. The confidential report provides details of 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

17. 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 the confidential report.

Ngā koringa ā-muri

Next steps

18. These reports are provided quarterly, and the next report will be provided at the August 2019 Strategic Procurement Committee meeting.

Ngā tāpirihanga

Attachments

There are no attachments for this report.

Ngā kaihaina

Signatories

Author

Dan Auber - Enterprise Capability Manager

Authorisers

Ramari Slattery – Head of Strategic Portfolio and Programme Office

Aaron Donaldson - Head of ICT & Corporate Procurement

No.	Title	Page
a ⇩	Strategic Procurement Forward Work Programme - 06 June 2019	23
b ⇩	Memo - Auckland Council is a foundation member of Social Procurement buyers group	31
c ⇩	Press release - Social Procurement	33
d ⇩	Social procurement and sustainable outcomes toolkit - workshop minutes	35

Strategic Procurement Committee

06 June 2019

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.

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
Priority #	Area of work	Reason for work		Budget / Funding	FY19 Apr-Jun	FY20 Jul-Sep
1. Delivery on Annual Plan outcomes (Contracts to be awarded)
1.1	Refuse collection contracts	Update on refuse collection contracts	Update received at the 1 May 2019 meeting Resolution number STR/2019/39- Item C1. Supplier recommendations will be provided in August 2019			Q1 August 2019
1.2	Food scraps processing	Award supplier recommendations for food scraps processing.	Progress to date: Decision taken to approve the procurement plan for food scraps processing services at 11 July 2018 meeting Resolution number STR/2018/37 – Item C2 Supplier recommendations to be provided by August 2019.			Q1 August 2019
1.3	Waiheke Island Waste Services	Approve procurement plan for all Waste Services for Waiheke Island	Progress to date: Decision: Approve procurement plan. Decision: Approved contract extension at 11 July 2018 meeting. Update provided at the 11 July 2018 meeting, Resolution number STR/2018/41 – Item 11 and Resolution number STR/2018/36 – item C1 Decision: Approve awarding of contract. Next report will be considered in Q1 2020 (September).			Q1 September 2020
1.4	Healthy Waters panel refresh and strategy and professional services panel consolidation strategy	Approval of the Healthy Waters Physical Works & Technical Services Procurement Strategy	Decision: Receive update and approve the strategy Update received at 3 April 2019 meeting Resolution number STR/2019/25 – Item 8. Update on suppliers to panels to be provided in Q1 2020			Q1 2020
1.5	Integrated waste collection services procurement plan	Procure new integrated waste collection services	Progress to date: Decision taken to approve the procurement plan for integrated waste collection services at 6 March 2019 meeting. Resolution number STR/2019/23– Item C4 Next update will be provided by December 2019.			Q2 2020
1.6	Supplier panels for Retrofit Your Home	Procurement strategy for supplier panels to provide services for the Retrofit Your Home grant programme	Decision: To approve strategy for supplier panels for Retrofit Your Home services Report to be provided in Jul Q1 2019/2020			Q1 2020
2. Review delivery of Capital Projects
2.1	Capital Project Delivery	Elected member oversight of progress of Major Projects, including update on the strategy for procurement of city centre development programme and pipeline of forward works.	Receive: no decision required 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 Next update will be considered in June 2019.		Q4 Jun 2019
2.2	Forward Work Programme (Pipeline)	Elected member oversight of pipeline of activity for capital works delivery forward work programme	Receive: no decision required 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 Next update to be provided in Q1 2020			Q1 2020
2.3	Westgate multipurpose facility (integrated library and community centre) construction	Elected member oversight of progress of Westgate multipurpose facility	Receive: no decision required 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 Update received at 12 December 2018 meeting Resolution number STR/2018/91 – Item C4 Next update to be provided in Q3 2019			Q1 July 2019
3. Endorse Procurement Category Strategies
See completed section below.
4. Enhance Group Sourced Procurement
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		Q4 June 2019
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			Q1 July 2019
5. Improve Procurement Maturity
See completed section below.
6. Other
6.1	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 received at the 2 May 2018 meeting Resolution number STR/2018/21– Item C2 Update received at the 7 November 2018 meeting Resolution number STR/2018/82 – Item C4 Update: No decision required. Next update to be provided at June 2019 meeting		Q4 June 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	Picton Street stormwater project	To reduce stormwater runoff to the combined sewer network and overflow volumes from the Wynyard Wharf outfall	Decision: Approve supplier recommendation Value below $20 million, can be signed off by CEO.
1.2	Stormwater infrastructure to support the Auckland Housing Programme	Approve the supplier recommendation for stormwater infrastructure to support the Auckland Housing Programme	Decision: update received at 3 April 2019 meeting Resolution number STR/2019/30 – Item C2
1.3	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
1.4	Electricity Procurement	Approve Procurement Plan for Electricity procurement	Update provided at the October 2017 meeting Resolution number STR/2017/47 - Item C3
1.5	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
1.6	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
1.7	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
1.8	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
1.9	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
1.10	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
1.11	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.
1.12	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
1.13	City Centre Development	Provide an update on the strategy for procurement of city centre development programme and pipeline of forward works	Updates will now be provided as part of the update on Capital Project Delivery.
1.14	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 Next update to be provided in April 2019 through the $5 million project report.
1.15	St Marys Bay and Masefield Beach improvement project	St Marys Bay and Masefield Beach improvement project	Decision: Supplier recommendations for the first phase of construction Report provided to the 6 March 2019 meeting Resolution number STR/2019/14 - Item 9
1.16	Procurement plan for waste collection services	Procurement plan for waste collection services	Decision: To recommend the waste collections procurement plan to Finance and Performance for approval, incorporating feedback from the Value for Money review on the future of waste services Update provided to the 6 March 2019 meeting Resolution number STR/2019/16 - Item 11
1.17	Graffiti Contracts	Graffiti Contracts	Update provided at the 6 March 2019 meeting Resolution number STR/2019/19 – Item C1 Receive update on graffiti contracts
1.18	Daldy Street stormwater outfall project	Daldy Street stormwater outfall project	Update provided at the 1 May 2019 meeting Resolution number STR/2019/40 – Item C2
3. Endorse Procurement Category Strategies
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
3.6	ICT Technology Services	Create a plan for engaging the market to purchase Technology Services – Cloud, Data Centre Services, Print, Network.	Decision: update received at 12 December 2018 meeting – Resolution number STR/2018/91 – Item 10
3.7	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
3.8	Professional Services	Create a plan to go to market and manage professional services across Auckland Council.	Receive: No decision required.
4. Enhance Group Sourced Procurement
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
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
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
6.3	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. Update received at 12 December 2018 meeting Resolution number STR/2018/89 – Item C2
6.4	ICT Technology Services	Seek approval for the transfer of existing datacentre service to a new multi-cloud environment.	Decision: approval of transfer. Update received at 12 December 2018 meeting Resolution number STR/2018/90 – Item C3
6.5	ICT Technology Services	ICT Technology Services	Decision: contract awarding Update provided at the 1 May 2019 meeting Resolution number STR/2019/41 – Item C3
6.6	Full Facility agreement transfer of streetscape and waste solutions services	Update on 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.

Strategic Procurement Committee

06 June 2019

Strategic Procurement Committee Workshop:

Sustainable Outcomes Toolkit

MINUTES

Minutes of a workshop held in Room 1, Level 26, 135 Albert Street on Thursday, 16 May 2019 at 3.11pm.

present

Chairperson Cr Bill Cashmore
Deputy Chair Cr Ross Clow
Cr Linda Cooper
Cr Alf Filipaina
Cr Penny Hulse

APOLOGIES

Cr Cathy Casey

ABSENT

Cr Daniel Newman
Mayor Phil Goff

IN ATTENDANCE

Cr E Collins

Until 3.18pm

Cr M Lee

Until 3.16pm

Cr W Walker

From 3.24pm

Until 3.43pm

ALSO PRESENT

Paul Devening	Kiwi Can Do
Peter Ensor	McConnell Dowell / Civil Contractors New Zealand Auckland Branch
Simon Faga	Ministry of Social Development
Jamie Kissock	Ministry of Social Development
Iain Morrison	Kiwi Can Do
Amanda Nicolle	Ministry of Social Development

Note: No decisions or resolutions may be made by a workshop, unless the Governing Body or Committee resolution establishing it specifically instructs such action.

Purpose of the workshop

To seek feedback from the Strategic Procurement Committee on the draft Social and Sustainable Procurement Guidance and Sustainable Outcomes Toolkit, and ideas for how it could be most effectively used to guide procurements.

Declarations of Interest

· There were no declarations of interest.

Notes

A PowerPoint presentation was provided by the Procurement team on social procurement. Committee members asked questions about percentage targets, indigenous procurement, quality assurance of contracts, and how the council supports enterprise. Committee members indicated their support for the principles and aspirations of the social procurement work.

Cr M Lee retired from the meeting at 3.16pm.

Cr E Collins retired from the meeting at 3.18pm.

Cr W Walker joined the meeting at 3.24pm.

Cr W Walker retired from the meeting at 3.43pm.

Next steps

· The Procurement team will finalise the social procurement targets, communicate the targets to the sector, and begin measuring and reporting.

· Information about some of the success stories will be shared with the committee.

A PowerPoint presentation was provided by the Healthy Waters team on the Sustainable Outcomes Toolkit.

Representatives from the Ministry of Social Development (Simon Faga, Jamie Kissock, and Amanda Nicolle), Kiwi Can Do (Paul Devening and Iain Morrison), and McConnell Dowell / Civil Contractors New Zealand Auckland Branch (Peter Ensor) were present.

Cr R Clow left the meeting at 4.15pm

Cr R Clow returned to the meeting at 4.34pm.

Committee members asked questions including about provision of wrap-around services, and how clients can join and take part in the process. Committee members indicated their support for the principles and aspirations of the Sustainable Outcomes Toolkit.

The workshop closed at 4.47pm.

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

Date	Workshop/Briefing
16 May 19	Social Procurement and Sustainable Outcomes Toolkit (Minutes provided in Attachment D)

Author	Duncan Glasgow - Governance Advisor
Authoriser	Aaron Donaldson - Head of ICT & Corporate Procurement