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 chairperson.
The committee has 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 the 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) 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.
An apology from
Mayor P Goff 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
|
That the Strategic Procurement Committee:
a)
confirm the ordinary minutes of its meeting,
held on Tuesday, 30 March 2020, 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.
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.”
|
Strategic
Procurement Committee
15 September
2020
|
|
Procurement plan for Healthy Waters
central and north area operations and maintenance contracts
File No.: CP2020/12050
Te take mō te
pūrongo
Purpose of the report
1. To
provide an update on the procurement for Healthy Waters operations and
maintenance services in the central and northern areas of Auckland.
Whakarāpopototanga matua
Executive summary
2. Healthy
Waters is responsible for managing and improving the health of Auckland’s
harbours and waterways, including operating and maintaining the stormwater
network and providing responses to flooding.
3. Healthy
Waters has five current area operations and maintenance contracts for
stormwater in the north, central, Waiheke, west and south areas. These
contracts are due to expire between June 2021 and June 2029. The current
central and Waiheke contracts expire on 30 June 2021 and the north contract
expires on 30 June 2022.
4. Establishment
of the new contracts provides an opportunity for Healthy Waters to embed key
strategic focus areas within the procurement outcomes. It also provides an
opportunity to align the contract boundaries with the three existing Healthy
Waters Lifecycle Management teams and Auckland Council’s three hub
approach.
5. Healthy
Waters has developed a procurement plan and strategy to achieve these outcomes.
The plan has complementary operations and contract strategies to align
geographical areas, build resilience in the face of climate change, diversify
the supplier market and support sustainable outcomes, particularly in terms of
local employment and upskilling locals through the ‘2 in a Ute’
initiative.
6. More
detail regarding the procurement plan for this project will be provided in the
confidential section of the Strategic Procurement Committee meeting agenda for
15 September 2020.
|
Ngā tūtohunga
Recommendations
That the Strategic Procurement
Committee:
a) note
the information contained in this report on the procurement for Healthy
Waters central and north area maintenance contracts 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 suppliers.
|
Horopaki
Context
7. Healthy
Waters is primarily responsible for managing and improving the health of
Auckland’s harbours and waterways, operating and maintaining the
stormwater network and providing reactive responses to flooding.
8. Operations
and maintenance of the stormwater network includes proactive inspection and
clearance of debris and blockages, flood response, flood issue management and
ongoing maintenance of the network including repairs and minor capital works.
9. The
management of stormwater and protection of waterways supports the water quality
outcomes that the region strives to achieve in the next 30 years. This
contributes to the council's strategic goals, aligning with the Healthy Waters
Asset Management Plan and the wider Auckland Plan.
10. Healthy
Waters has five current operations and maintenance contracts for the north,
central, Waiheke, west and south areas. The contracts provide essential
maintenance services to:
· ensure
that stormwater assets are properly maintained to assure performance and to
enhance asset life
· proactively
inspect and clear high-risk flooding areas
· respond
to flooding incidents
· reduce
the incidence and severity of potential flooding issues.
11. The
current operations and maintenance contracts will expire over the next eight
years as shown in table one.
Table one: Healthy Waters area operations and maintenance
contract expiry dates
|
Area
|
Supplier
|
Expiry
|
|
Central / Waiheke
|
Downer
|
20 June 2021
|
|
North
|
Downer
|
30 June 2022
|
|
West
|
AIM Services
|
30 June 2025
|
|
South
|
City Care
|
30 June 2028
|
12. The need
to re-establish the stormwater maintenance contracts that are expiring soon has
provided the council with an opportunity to reset both the operational and
commercial strategies underpinning how we maintain stormwater assets and
provide enhanced water quality outcomes for Auckland.
Future and ongoing strategy considerations
Transition from five to three
operational areas
13. Since the
current contracts were established in 2012, Healthy Waters has transitioned to
three Lifecycle Management teams – north, central (including west) and
south. This transition has streamlined operational delivery and aligned Healthy
Waters operational areas with Auckland Council’s three service hubs
model. The transition to three operational areas will be finalised with this
procurement.
14. A map of
the new operational areas is shown in Attachment A.
Catchpit cleaning and
treatment device maintenance
15. Catchpit
cleaning and treatment device maintenance activities will have been partially
migrated to regional contracts, as approved by the Emergency Committee on 9
April 2020 (resolution EME/2020/16). These activities will be completely
migrated by July 2021 once the operations and maintenance procurements
commence.
‘2 in a Ute’ and
water sensitive infrastructure
16. Since the
scope of the current contracts was developed in 2012, Auckland has seen a large
amount of water sensitive infrastructure built, such as raingardens. These
water quality assets need to be adequately maintained to ensure that they will
provide the water quality benefits they are intended to.
17. Healthy
Waters has initiated a trial concept called ‘2 in a Ute’. This
sustainable outcome initiative focuses on addressing the current lack of
capacity to complete maintenance activities on water sensitive infrastructure
through recruiting and training two-person teams from the local communities.
This will provide employment and upskilling opportunities to locals and
disadvantaged groups such as those who are not in education, employment or
training.
Tātaritanga me ngā
tohutohu
Analysis and advice
Options considered for delivery model
18. The
Healthy Waters operational contracts in the central area and Waiheke are due to
expire from June 2021. Staff have analysed the procurement approaches available
and have developed an approach that offers better outcomes to Aucklanders and
the environment. This proposed approach involves streamlining the contract
areas and including climate change considerations and sustainable outcomes.
19. Healthy
Waters has developed a procurement plan and strategy to achieve these outcomes.
The plan has complementary operations and contract strategies that:
· align
the geographical areas to the geographical areas of the council’s
operation – north, central (including west and Waiheke) and south
· build
resilience into the scope of the contracts to better respond to the impacts of
storms which are becoming more frequent because of climate change
· build
resilience and diversity in the supplier mix to maintain a healthy supplier
market and a supply chain consisting of both large and small suppliers to
ensure sufficient future capacity to respond to the impacts of climate change
· support
sustainable outcomes including local employment and upskilling through the
‘2 in a Ute’ initiative that is being trialed in Rodney,
Waitākere, Franklin, Māngere-Ōtāhuhu and Ōtara-Papatoetoe
local board areas.
20. Staff
recommend that procurement is for the selection of experienced and
customer-focused operations and maintenance contractors for the central and
north areas.
21. Analysis
of procurement options for achieving this service will be provided in the
confidential section of the Strategic Procurement Committee meeting agenda for
15 September 2020.
Tauākī whakaaweawe
āhuarangi
Climate impact statement
22. The new
operations and maintenance contracts are designed to respond to the challenges
of the increased frequency and intensity of weather events caused by climate
change. This includes the need for preparation and maintenance such as
increased clearing of debris and sediment and the development of hard
infrastructure to deal with more frequent and more violent weather events.
23. Increasing
the ability of Auckland’s infrastructure to deal with extreme weather
events provides climate resilience.
24. Healthy
Waters is actively pursuing the implementation of technology to futureproof
water sensitive infrastructure, for example fitting sensors to manhole covers
to measure water and sediment levels.
25. Auckland
has seen a larger number of storm events since the scope of the current
contracts was first developed in 2012. The physical impacts of these events has
been damaging to the network. Impacts have been responded to via minor and
major works within existing budgets.
26. The new
contracting phase provides the council with the opportunity to build a
proactive strategy to deal with the impacts of significant storms, which are
expected to be more frequent due to climate change. Future contracts will adopt
a more risk-based approach by including the following within the scope of
services:
· more proactive and planned inspections and maintenance
· a risk-based approach to proactive maintenance of critical assets
that are expected to be affected by climate change (such as coastal assets).
This approach will mean high risk assets are maintained more regularly than
lower risk assets
· building additional resources into the contract to allow for an
incremental increase in the need for responses due to the effects of climate
change.
Ngā whakaaweawe me
ngā tirohanga a te rōpū Kaunihera
Council group impacts and views
27. Auckland Transport and
Watercare also use contractors to maintain their infrastructure assets. These
contracts were initially due to expire in line with the Healthy Waters
maintenance contracts.
28. Due to
the recent southern contract tender and COVID-19 financial impacts, Healthy
Waters intends to retain the incumbents across the revised contract areas, so
there will be no procurement approach to be undertaken with Auckland Transport
or Watercare.
29. As
part of implementing the Section 17A: Three Waters Value for Money review,
staff analysed opportunities for integrating operations and maintenance across
the council group.
30. Traffic
management is an area that has been identified through the Value for Money
review as an opportunity to work collaboratively to reduce costs, and there
will be an ongoing focus on this. Capital projects have also been identified as
an opportunity area for the coordination and sharing of some cost elements to
reduce the overall delivery cost of contracts.
31. There is
limited crossover in the scope of these contracts in regard to skill set
transfer and the specialised equipment required to deliver the maintenance
services.
32. Healthy
Waters is working closely with Auckland Transport and Watercare to align our
asset management planning and forward work programmes and identify
opportunities to work collaboratively and reduce costs. The relevant council
departments and council-controlled organisations will continue to work together
where possible through their respective procurement processes to identify
efficiencies.
33. The scope
included within the contracts is aligned with service level agreements that
Healthy Waters has in place for the delivery of services for Auckland Transport
and Community Facilities.
Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
Local impacts
34. These
contracts will have significant positive local benefits as they will assist
with providing local resilience through:
· reducing the incidence and severity of potential flooding
· provide the resource capacity to respond to flooding incidents
· provide additional resource and resilience to respond to increasing
climatic events.
Local board views
35. Healthy
Waters regularly engages with local boards on both operational and
project-specific initiatives and delivers a large number of water quality and
stream restoration projects on behalf of local boards.
36. Local
boards have in general indicated support for the ‘2 in a Ute’
initiative and the opportunity it offers to improve the condition of water
sensitive infrastructure and employment of locals to maintain local assets. The
trial will involve engagement with the Rodney, Waitākere, Franklin,
Māngere-Ōtāhuhu and Ōtara-Papatoetoe local boards.
Tauākī whakaaweawe
Māori
Māori impact statement
37. The
contract deliverables are highly aligned with the principles of kaitiakitanga
or guardianship, through seeking to improve water quality outcomes and mitigate
the environmental impacts of flooding and other climate change-related events.
38. Iwi will
be consulted where specific contract activities may have an impact.
39. Opportunities
for rangatahi employment are currently being explored, including through the
‘2 in a Ute’ programme.
Ngā ritenga
ā-pūtea
Financial implications
40. Details regarding the financial implications of this procurement
will be provided in the confidential section of the Strategic Procurement
Committee meeting agenda for 15 September 2020.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
41. Risks and mitigations for this procurement will be provided in the
confidential section of the Strategic Procurement Committee meeting agenda for
15 September 2020.
Ngā koringa ā-muri
Next steps
42. Next steps for the procurement of Healthy Waters central and north
area maintenance contracts will be provided in the confidential section of the
Strategic Procurement Committee meeting agenda for 15 September 2020.
Ngā tāpirihanga
Attachments
|
No.
|
Title
|
Page
|
|
a⇩
|
Map of Healthy Waters maintenance areas
|
19
|
Ngā kaihaina
Signatories
|
Authors
|
Phillip Johansen – Manager Lifecycle Management
Central
Frank Tian – Lifecycle Management North Team Manager
Vivian Dias – Procurement Manager, Capital
Procurement
|
|
Authorisers
|
Craig Mcilroy – General Manager Healthy Waters
Barry Potter - Director Infrastructure and
Environmental Services
Jazz Singh - General Manager Procurement
|
