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

 

Date:

Time:

Meeting Room:

Venue:

 

Tuesday, 10 August 2021

10.00am

Room 1, Level 26
135 Albert Street
Auckland

 

Kōmiti Mahi Āta Torotoro Rawa /

Strategic Procurement Committee

 

OPEN AGENDA

 

 

 

 

MEMBERSHIP

 

Chairperson

Cr Greg Sayers

 

Deputy Chairperson

Cr John Watson

 

Members

Cr Dr Cathy Casey

 

 

Deputy Mayor Cr Bill Cashmore

 

 

Cr Linda Cooper, JP

 

 

Cr Alf Filipaina

 

 

Cr Tracy Mulholland

 

 

IMSB Member Karen Wilson

 

Ex-officio

Mayor Hon Phil Goff, CNZM, JP

 

 

 

(Quorum 4 members)

 

 

 

Michelle Judge

Kaitohutohu Mana Whakahaere / Governance Advisor

 

5 August 2021

 

Contact Telephone: 0211950262

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 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.

 

 


Strategic Procurement Committee

10 August 2021

 

ITEM   TABLE OF CONTENTS                                                                                         PAGE

1          Apologies                                                                                                                        7

2          Declaration of Interest                                                                                                   7

3          Confirmation of Minutes                                                                                               7

4          Petitions                                                                                                                          7  

5          Public Input                                                                                                                    7

6          Local Board Input                                                                                                          7

7          Extraordinary Business                                                                                                8

8          Summary of Strategic Procurement Committee Information - updates, memos and briefings - 10 August 2021                                                                                            9

9          Review of the Forward Work Programme - Strategic Procurement Committee  11

10        Auckland Council Rating Valuation Services (Covering report)                            21

11        Consideration of Extraordinary Items

PUBLIC EXCLUDED

12        Procedural Motion to Exclude the Public                                                                 23

C1       CONFIDENTIAL: Auckland Council Rating Valuation Services (Covering report) 23

 

 


1          Apologies

 

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, 8 June 2021, 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

10 August 2021

 

Summary of Strategic Procurement Committee Information - updates, memos and briefings - 10 August 2021

File No.: CP2021/08293

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To receive a summary and provide a public record of memoranda or briefing papers that may have been held or been distributed to Strategic Procurement Committee members.

Whakarāpopototanga matua

Executive summary

2.       This is a regular information-only report which aims to provide greater visibility of information circulated to Strategic Procurement Committee members via memoranda/briefings or other means, where no decisions are required.

3.       The following memorandum has been distributed:

Date

Subject

10/6/21

CONFIDENTIAL: FY21 Group Procurement in Review

 

4.       Note that, unlike an agenda report, staff will not be present to answer questions about the items referred to in this summary.  Strategic Procurement Committee members should direct any questions to the authors.

 

 

Ngā tūtohunga

Recommendation/s

That the Strategic Procurement Committee:

a)      receive the Summary of Strategic Procurement Committee information memoranda and briefings – 10 August 2021.

 

Ngā tāpirihanga

Attachments

There are no attachments for this report.      

Ngā kaihaina

Signatories

Author

Michelle Judge - Kaitohutohu Mana Whakahaere / Governance Advisor

Authoriser

Jazz Singh - General Manager Procurement

 


Strategic Procurement Committee

10 August 2021

 

Review of the Forward Work Programme - Strategic Procurement Committee

File No.: CP2021/10424

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To review and note progress on the 2021 Strategic Procurement Committee forward work programme appended as Attachment A.

Whakarāpopototanga matua

Executive summary

2.       The forward work programme for the Strategic Procurement Committee was adopted by the committee at its meeting held on 10 March 2020, and reviewed again on 15 September 2020.  It was agreed that the forward work programme would be reported for information and reviewed on a six-monthly basis.

3.       Due to the uncertainty of the meeting schedule during 2020, and the adoption of an Emergency Budget, the committee forward work programmes have not had a full review since originally being approved.

4.       The Governing Body has now adopted the Recovery Budget (10-year Budget 2021-2031) and committee forward work programmes should reflect those decisions.

5.       All committees need to review their forward work programme, by the end of September, following the adoption of the budget each year. A further review needs to be carried out by the end of March each year.

6.       Following approval, all committee forward work programmes will be reported to the Governing Body in October and April each year, for oversight as per the Terms of Reference.

7.       To expedite the above process, it has been agreed to report the committee forward work programmes to the Governing Body at its meeting on 26 August 2021.

8.       The current forward work programme for the Strategic Procurement Committee is appended as Attachment A.

9.       Following the approval of the forward work programme, it will be reported to the Governing Body in October and April each year, for oversight as per the Terms of Reference.

 

Ngā tūtohunga

Recommendation/s

That the Strategic Procurement Committee:

a)      receive and review the progress on the 2021 forward work programme as appended in Attachment A of the agenda report.

b)      approve the forward work programme as agreed to at the meeting.

c)      review the forward work programme prior to the end of March 2022.

 

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Forward Work Programme

13

     

Ngā kaihaina

Signatories

Author

Michelle Judge - Kaitohutohu Mana Whakahaere / Governance Advisor

Authoriser

Jazz Singh - General Manager Procurement

 


Strategic Procurement Committee

10 August 2021

 

 

Komiti Mahi Āta Torotoro Rawa / Strategic Procurement Committee
Forward Work Programme 2021 / 2022

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.

The full terms of reference can be found here: Governing Body Terms of Reference

 

 

Area of work and Lead Department

Reason for work

Committee role

(decision and/or direction)

Expected timeframes

Highlight the month(s) this is expected to come to committee in 2021 / 2022

Aug

7 Sep

28 Sep

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Rates Valuations

Rates, Valuations and Data Management

Auckland Council currently operates under a dual valuation service provider model for valuations.

The overall objective of the Request for Proposal (RFP) is to streamline the valuations function to:

·    reduce operating costs

·    increase the quality of data, enabling future opportunities for commercialisation of valuation products

·    increase the quality and consistency of data to ensure we can meet our legislative requirements.

Decision: Approval of procurement plan for rates valuations RFP.

A report will be provided in August 2021.

 

Decision: Approval of supplier recommendation report.

A report will be provided in September 2021.

 

 

 

 

 

 

 

 

 

 

 

 

Healthy Waters Programme Delivery model procurement plan

Healthy Waters

With the growing requirements for Healthy Waters asset investments and increased capex budget to be delivered in future financial years, a more efficient and collaborative delivery model is required. Heathy Waters department is pursuing a sustainable and efficient delivery of the programme of capex projects for the next six years and beyond.

Decision: Approval of Procurement Plan and strategy to approach the market for Healthy Waters alternate programme delivery model.

A report will be provided in September 2021.

 

 

 

 

 

 

 

 

 

 

 

 

Corban Reserve Supplier recommendation

Healthy Waters

To procure a contractor to deliver the project to divert stormwater flows from the 78 hectare Waitaro Stream catchment away from the existing culvert under the closed landfill site at Corbans Reserve by installing a new pipeline discharging to Opanuku Stream. The existing culvert under Corban Reserve is currently a high-risk asset due to the infiltration of landfill gas and leachate.

Progress to date:  Procurement plan approved to approach the market for a tender to deliver Corban Reserve tunnelling project on 13 April 2021 (Resolution number STR/2021/12).

 

Decision: Approval of the supplier recommendation report.

A report will be provided in September 2021.

 

 

 

 

 

 

 

 

 

 

 

 

Materials Recycling Facility Operator Contract

Waste Solutions

To procure a materials recycling facility operator.

The current contracts expire on 30 June 2024.

Decision: Approval of procurement plan for the new material recycling facility operator.

A report will be provided in September 2021.

 

 

 

 

 

 

 

 

 

 

 

 

Electricity Network Resilience Tree and Vegetation Maintenance

Community Facilities

To procure tree pruning services on trees covering areas around powerlines within the Auckland Council region.

Progress to date: Procurement plan approved to approach the market for the ongoing maintenance of tree pruning on 8 June 2021 (Resolution number STR/2021/20). 

 

Decision: Approval of the supplier recommendations.

A report will be provided in September 2021.

 

 

 

 

 

 

 

 

 

 

 

 

Building Consents overflow services variation approval for additional years

Building Consents - Regulatory services

With the increased demand in consenting services, a review is done across the various current suppliers’ services. To get service certainty and retention of key personnel, there is a need for providing certainty to the market with longer duration contracts and hence a variation approval is required for the current contracts to enable this.

Decision: Approval of variation to increase the term of contract.

A report will be provided in September 2021.

 

 

 

 

 

 

 

 

 

 

 

 

SAP Maintenance Agreement

Information Communication Technology

The current SAP maintenance agreement is due to expire at the end of December 2021. Procurement plan to approve direct negotiation with SAP.

Decision: Approval of procurement plan

A report will be provided in September 2021.

 

 

 

 

 

 

 

 

 

 

 

 

All of Government (AOG) Recruitment Panel

People and Capability

Existing approved budget for spend against AOG Recruitment panel is running out. Further budget requires approval.

Decision: Approval of contract variation.

A report will be provided in September 2021.

 

 

 

 

 

 

 

 

 

 

 

 

Te Whau pathway shovel-ready funding project

Community Facilities

To provide an update on the progress of the project and amendments in scope if any from the previously approved procurement plan.

Environmental outcomes and better transport connectivity through walkways and pathways. Faster project delivery and construction to support multiple community outcomes using the shovel-ready funding.

Progress to date: Procurement plan approved to approach market for the main project works covered by shovel-ready funding.

Authority delegated to council’s chief executive to execute the procurement plan, approve the supplier recommendation report, award of contract, and approval of variations on 13 October 2020 (Resolution number STR/2020/20).

 

Update to committee with any changes in project scope.

A report will be provided in November 2021.

 

 

 

 

 

 

 

 

 

 

 

 

Microsoft Licensing

Information Communication Technology

The Microsoft licensing reseller agreement expires in September 2022, and Auckland Council plans to approach the market again with Auckland Transport and Watercare.

Decision: Approval of procurement plan.

A report will be provided in February 2022.

 

Decision: Approval of supplier recommendation report.

A report will be provided in April 2022

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Completed

Lead Department

Area of work

Committee Role

(decision and/or direction)

Decision

Community Facilities

Full Facilities contract performance update

To update the Strategic Procurement Committee on suppliers’ performance under Community Facilities’ arboriculture services, ecological services, and full facilities maintenance contracts.

To receive the Community Facilities full facilities contracts performance update for Financial Year 19/20.

The update was received in December 2020.

(Resolution number STR/2020/26)

Community Facilities

Te Whau pathway shovel-ready funding project

Environmental outcomes and better transport connectivity through walkways and pathways. Faster project delivery and construction to support multiple community outcomes using the shovel-ready funding.

Approval of procurement plan to approach market for the main project works covered by the shovel-ready funding.

Procurement plan approved.

Authority delegated to council’s chief executive to execute the procurement plan.

Authority delegated to council’s chief executive to approve the supplier recommendation report, award of contract and approval of variations.

(Resolution number STR/202019)

Environmental Services

Biodiversity protection services delivered through the Natural Environment Targeted Rate – Category Strategy

This procurement category strategy will support effective implementation of the council’s key services related to the natural environment targeted rate work programmes.

Endorsement of procurement category strategy for biosecurity protection services delivered through the Natural Environment Targeted Rate.

The Category Strategy was endorsed.

(Resolution number STR/2020/4)

Environmental Services

Update on suppliers for the Retrofit Your Home panels

To provide an update on the suppliers who were appointed to the Retrofit Your Home panels.

Establishment of supplier panels.

The establishment of the panels was approved.

(Resolution number STR/2019/66)

Healthy Waters

Healthy Waters Maintenance contracts

To provide effective operations and maintenance of the regional stormwater network. This contributes to managing and improving the health of Auckland’s harbours and waterways and responding to flooding events. This is council’s responsibility under the Regional Stormwater Network Discharge Consent.

Award contracts to recommended suppliers for Healthy Waters operations and maintenance contracts, and the regional maintenance of catchpits and treatment devices.

Procurement plan for operations and maintenance services for: the southern area of the Auckland region; regional maintenance of catchpits; regional maintenance of treatment devices.

Overall strategy approved for procuring stormwater operations and maintenance services for the northern and central areas.

(Resolution number STR/2019/67)

 

Emergency Committee approved the awarding of the southern and regional maintenance contracts.

(Resolution number EME/2020/14)

 

Procurement plan approved for the operations and maintenance contract for the northern and central area of the Auckland region.

(Resolution number STR/2020/10)

 

Supplier recommendation report and award of contract approved for northern and central area of the Auckland region.

(Resolution number STR/2021/11)

Healthy Waters

Update on suppliers for physical works and technical services panels

To provide an update on the suppliers who were appointed to the Healthy Waters technical services and physical work panels.

Establishment of supplier panels.

The establishment of the panels was approved.

(Resolution number STR/2019/25)

Legal and Risk

External Legal Services

To procure external legal services. Current contracts expired in December 2020.

Award contracts to recommended suppliers for external legal services.

Extension of current legal contract for legal services approved.

(Resolution number STR/2020/24)

 

Procurement plan for new external legal contract/services approved.

(Resolution number STR/2021/5)

 

Supplier recommendations approved.

(Resolution number STR/2021/21)

Procurement

SAP Licensing Renegotiation

To re-negotiate current SAP agreement to better suit council’s current and future needs, and to better align with SAP’s commercial and technical roadmap.

Approval of contract variation for support and maintenance services for a 5-year period until December 2025.

A report was provided in December 2020.

(Resolution number STR/2020/25)

Procurement

Group Procurement Policy

To address recommendation 64 of the CCO Review which called for a revision of the council’s Group Procurement Policy to better mandate Group Procurement activity.

Noting revision of Group Procurement Policy.

Policy approved at the Finance and Performance Committee meeting.

(Resolution number FIN/2021/61)

Waste solutions

Award of Waiheke waste services

New waste services for Waiheke were procured in 2019 to deliver on the objectives on the Waste Management and Minimisation Plan 2018 and the Tīkapa Moana Hauraki Gulf Islands Waste Plan which is an appendix to the overall waste plan. Implementing these plans is a legislative requirement under the Waste Minimisation Act 2008.

Approval of procurement plan to approach the market for the new waste services for Waiheke Island.

Procurement plan approved for Waiheke waste services.

(Resolution number STR/2019/3)

 

Supplier recommendations for Waiheke waste services approved.

(Resolution number STR/2019/69)

 

A memo was sent in November 2019 to provide an update on the award of Waiheke waste services.

Waste Solutions

Inorganic services contract

To procure an inorganics service, which is an action in the Waste Management and Minimisation Plan 2018: Working together for Zero Waste. Implementing the waste plan is a legislative requirement under the Waste Minimisation Act 2008.

Approval of procurement plan and supplier recommendation report for new inorganic contract/services commencing February 2022.

Procurement plan for new inorganic contract/services commencing February 2022 approved.

(Resolution number STR/2020/19)

 

Supplier recommendation report approved.

(Resolution number STR/2021/19)

Waste Solutions

Extension to inorganic services contracts

To allow time for a review of the current inorganics service, which is an action in the Waste Management and Minimisation Plan 2018: Working together for Zero Waste. Implementing the waste plan is a legislative requirement under the Waste Minimisation Act 2008.

To approve a one-year extension/variation with incumbent suppliers for the inorganic collection and inorganic processing contracts.

Procurement plan approved for the inorganic collection service, and the six-month extension of the current inorganic collection contracts.

(Resolution number STR/2020/18)

 



Strategic Procurement Committee

10 August 2021

 

Auckland Council Rating Valuation Services (Covering report)

File No.: CP2021/11566

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To seek approval for the rating valuation services procurement plan.

Whakarāpopototanga matua

Executive summary

2.       This is a late covering report for the above item. The comprehensive agenda report was not available when the agenda went to print and will be provided prior to the 10 August 2021 Strategic Procurement Committee meeting.

Ngā tūtohunga

Recommendation/s

The recommendations will be provided in the comprehensive agenda report.


Strategic Procurement Committee

10 August 2021

 

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: Auckland Council Rating Valuation Services (Covering report)

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

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

s7(2)(b)(ii) - The withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information.

s7(2)(h) - The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.

s7(2)(i) - The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).

In particular, the report contains information that could prejudice the council's position in future negotiations with suppliers.

s48(1)(a)

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.