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 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

Code of conduct

For information relating to Auckland Council’s elected members code of conduct, please refer to this link on the Auckland Council website - https://www.aucklandcouncil.govt.nz/about-auckland-council/how-auckland-council-works/elected-members-remuneration-declarations-interest/Pages/elected-members-code-conduct.aspx

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.

1 Apologies

At the close of the agenda no apologies had been received.

2 Declaration of Interest

Members are reminded of the need to be vigilant to stand aside from decision making when a conflict arises between their role as a member and any private or other external interest they might have.

3 Confirmation of Minutes

That the Strategic Procurement Committee:

a) confirm the ordinary minutes of its meeting, held on Tuesday, 28 September 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

02 November 2021

Supplier recommendations for enhanced tree and vegetation maintenance around electricity network

File No.: CP2021/14471

Te take mō te pūrongo

Purpose of the report

1. To provide an update on supplier recommendations for the enhanced risk-based tree and vegetation maintenance services to support the electricity network resilience targeted rate project.

Whakarāpopototanga matua

Executive summary

2. Auckland Council has introduced a year-on-year targeted rate of $10.5 million per annum on Vector’s utility assets, to fund the council’s public tree management programme around overhead power lines.

3. The targeted rate allows for an enhanced level of service that is expected to reduce risk to Vector's powerlines from council-owned trees and any associated power outages.

4. The tree and vegetation management programme will allow trees to be pruned in a way that increases their resilience, reduces the chances of tree failure or contact with power lines and the associated network outages.

5. Of the $10.5 million targeted rate, $8.0 million will be spent by the council on external utility arborist contractor services. The remaining $2.5 million will be spent on: specialist consultancy services to prepare the work programme and monitor performance of the contractors; further planting to contribute towards the goals of Auckland’s Urban Ngāhere (Forest) Strategy; and council support for oversight of the programme.

6. A procurement plan for the enhanced risk-based tree and vegetation maintenance services was approved by the Strategic Procurement Committee on 8 June 2021 (resolution STR/2021/24).

7. The procurement plan noted that there were only two existing providers of sufficient scale, resource and expertise, and with the required Health and Safety competencies (including authorisation to work near Vector’s assets) to carry out utility arborist services around power lines in Auckland. The two providers were Treescape and Asplundh.

8. As there were only two providers, a closed competitive tender process was used to secure the services. The procurement approach also considered the differences between Treescape and Asplundh in terms of the scope of their current operations, their geographic location, the need for operational efficiencies and the existing contractual arrangements they had with the council and Vector.

9. On 20 July 2021, the shareholders of Treescape signed a Sale and Purchase agreement with Blair Mill NZ Holdings for the sale of 100% of their shares in Treescape Limited. Blair Mills NZ Holdings is a subsidiary of Asplundh Ltd and Asplundh is a privately owned multi-national company based in the United States. Blair Mill NZ Holdings took over ownership of Treescape on 31 August 2021.

10. Auckland Council has reviewed this and is comfortable that despite the two vegetation service providers being owned by the same shareholder, they remain separate companies. Consequently, this will not affect the procurement of the vegetation service providers and the nature of the contracts.

11. Two proposals were received from Treescape and Asplundh and each evaluated against non-price attributes to ensure delivery of social, cultural, and environmental outcomes. Pricing was assessed separately.

Ngā tūtohunga

Recommendation/s

That the Strategic Procurement Committee:

a) note the information contained in this report, on the supplier recommendations for the enhanced tree and vegetation maintenance around the electricity network, enables transparency on the topic due for discussion in the confidential part of the meeting.

b) note that the confidential report contains information that could prejudice the council’s position in negotiations with the suppliers.

Horopaki

Context

12. The council owns a significant number of trees along the network of overhead power lines (around 80 per cent in urban areas and around 30 per cent in rural areas). The remainder are mostly in private ownership. The electricity network in the Auckland region is largely owned and maintained by Vector. Vector supplies electricity to most of the population within the Auckland region. There are, however, approximately 24,000 households in the south of the region that have electricity supplied by Counties Power.

13. The council has introduced a targeted rate of $10.5 million per annum on Vector’s utility assets to fund its tree management programme around the Vector overhead electricity supply network. This has increased the tree maintenance budget to allow for an enhanced, risk-based service to manage risk more effectively to Vector’s powerlines from trees that the council owns.

14. This also allows the council to take an enhanced risk-based approach to the management of its trees under, or near, Vector’s power lines. This will be undertaken in accordance with best arboriculture practice and in compliance with the Auckland Unitary Plan. Some tree maintenance may require additional applications for resource consent.

15. The goal is to reduce the risk of trees causing power outages to an ‘as low as reasonably practicable’ level. This will be achieved through various management streams, including enhanced pruning to increase the resilience of trees, their stability, a targeted programming of works and maximisation of efficiencies.

16. Tree pruning options will always strive to deliver solutions that enhance public safety and the electricity network within best arboriculture practice guidelines.

17. This may include some of the following options:

· open sky pruning (removal of branches directly above the network)

· widening the distance between the tree canopy and the network

· canopy height reduction to minimise the possibility of the failure of long, vertical limbs

· tree removal in certain cases where council’s arborists determine this as the most reasonably practicable solution.

18. Consideration includes but is not limited to threats to or concerns about public safety, weed species under power lines, and palm trees under the power lines.

19. The enhanced risk-based approach to tree management will not initially be provided in areas covered by Counties Power. In these areas, the council will continue its existing practice funded from general rates.

Closed-tender procurement approach

20. A procurement plan for the enhanced risk-based tree and vegetation maintenance services was approved by the Strategic Procurement Committee on 8 June 2021 (resolution STR/2021/24).

21. The procurement plan noted that there were only two existing providers of sufficient scale, resource and expertise, and with the required Health and Safety competencies (including authorisation to work near Vector’s assets) to carry out utility arborist services around power lines in Auckland. These were Treescape and Asplundh.

22. As there were only two providers, a closed competitive tender process was used to secure these services. The procurement approach also considered the differences between Treescape and Asplundh in terms of the scope of their current operations, their geographic location, the need for operational efficiencies and the existing contractual arrangements they had with the council and Vector.

23. The procurement approach also required the prospective providers to be participating members of The New Zealand Arboricultural Association and able to operate in accordance with ‘The Code of Conduct of the New Zealand Arboricultural Association’.

24. The procurement approach considered the Sustainable Procurement Objectives and recognised that this contract presented an opportunity to work together with suppliers in delivering positive and enduring outcomes for Māori through inclusive labour practices and workforce development.

25. In their response, suppliers were required to identify how they would integrate and deliver council priorities into their service delivery, such as: increasing the capability and resilience of staff through training; promoting diversity and inclusion; valuing Māori; attracting Māori into skilled positions and providing them with training and developing a clear progression path; and supporting diverse businesses both directly and indirectly.

26. Prior to the procurement being initiated on 20 July 2021, council were advised that the private shareholders of Treescape, who held 50% of the shares, had signed a Sale and Purchase agreement with Blair Mill NZ Holdings for the sale of 100% of their shares in Treescape.

27. Blair Mills NZ Holdings is a subsidiary of Asplundh Ltd and Asplundh is a privately owned multi-national company based in the United States. As a consequence, Blair Mill NZ Holdings took over ownership of Treescape on 31 August 2021.

28. The staff reviewed this and were comfortable that the two vegetation service providers were run quite separately and applied different methodologies despite now being owned by the same shareholder. As a consequence, this did not affect the procurement approach, of which further details are provided in the confidential report.

Tātaritanga me ngā tohutohu

Analysis and advice

29. The key objectives for this procurement process were:

· A partnership with external contractors who would be responsible for providing enhanced risk-based tree and vegetation maintenance services

· Emphasise values-alignment, including Māori outcomes, social outcomes and sustainability as partners with Auckland Council in pursuing these shared objectives.

30. The closed Request for Proposal (RFP) was issued to Treescape and Asplundh on 23 August 2021.

31. Proposals were received from Treescape and Asplundh on 10 September 2021. Both conformed to the requirements of the RFP, passed health and safety criteria, and progressed to an evaluation process.

32. Three subject matter experts evaluated the proposals. Each proposal was evaluated for non-price attributes to ensure the desired social, cultural and environmental outcomes could be met. Pricing from each participant was assessed separately.

33. Negotiations were undertaken with each supplier, and these aimed to obtain the best value for money over the life of the contracts, with a focus on the procurement’s key objectives.

34. Further analysis and advice regarding the supplier recommendations will be provided in the confidential section of the Strategic Procurement Committee meeting.

Tauākī whakaaweawe āhuarangi

Climate impact statement

35. Auckland’s Urban Ngāhere Strategy provides a framework, and a list of actions, required to deliver the goal of increasing the tree canopy cover across the region from 18 per cent to 30 per cent. This also supports actions in Te Tāruke-ā-Tāwhiri: Auckland’s Climate Plan.

36. The enhanced risk-based approach to tree management will be underpinned by risk management. This means that while more pruning will be done (and some canopy lost during the process) this will also result in more resilient and stable trees.

37. The enhanced tree management program includes additional tree planting to contribute towards the Auckland’s Urban Ngāhere Strategy. Approximately 1,000 trees will be planted each year (funded by the Vector Targeted Rate). A separate closed procurement process will be undertaken to secure trees for the Tree Planting Plan with priority given to iwi and Māori owned nurseries.

38. In line with the council’s Sustainable Procurement Guidelines, the procurement approach also included further energy conservation, waste management/recycling and low carbon outcomes that will be achieved by the contracts.

39. Further information regarding the climate impacts of the enhanced risk-based approach to tree management is included in the confidential section Strategic Procurement Committee meeting.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

40. The Community Facilities department is responsible for the management of street trees within the road corridor.

41. For completeness, Auckland Transport (AT) is responsible for the management of the road corridor as per the Local Government (Auckland Council) Act 2009 and the Land Transport Act 1998 (excluding trees and vegetation management).

42. The enhanced tree management program includes additional tree planting to contribute towards Auckland’s Urban Ngāhere Strategy. Native trees will be prioritised for planting and sourced from Māori nursery providers, pending availability.

43. The planting funded by the targeted rate will be procured after the pruning services are procured and are not part of the tree pruning contracts. Tree planting has been identified as a group source opportunity, to leverage the collective buying power for overall cost reduction and value optimisation. It is anticipated that planning for a group procurement process will begin before the end of the year.

44. No impacts on other members of the council group are expected.

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

Local impacts and local board views

45. The recommendations made in this report regarding a regional approach to enhanced risk-based tree and vegetation maintenance services are not considered to have any specific impacts on local boards. It is however acknowledged that the condition and health of trees in local board areas is of importance to local boards.

46. The programme will enable additional local tree planting to support Auckland’s Urban Ngāhere Strategy, local board Urban Ngāhere strategies and increase the maintenance of trees in local parks and town centres.

Tauākī whakaaweawe Māori

Māori impact statement

47. Prior to the RFP release, the questions were reviewed by relevant stakeholders including representatives from the Secretariat of the Independent Māori Statutory Board, Amotai and Ngā Mātārae. The priority areas targeted included inclusive labour practices, workforce development and engagement of Māori businesses. The RFP provided for Te Ao Māori outcomes as a specific evaluation criterion, distinct from other sustainability and social procurement objectives.

48. Auckland Council stressed the importance of working with suppliers who have shared values and who evidenced their commitment to Te Tiriti o Waitangi and who pro-actively took action to deliver positive outcomes for Māori both within the work environment and external community. Examples of this include:

· Demonstrating a top-down commitment to social outcomes.

· Seeking partnerships with Mana Whenua to create opportunities through collaboration.

· Promoting Te Ao Māori, cultural competency and knowledge within the business. This may include incorporating the use of te reo Māori, tikanga, mātauranga Māori and kawa into business practices and/or branding.

· Engagement of Mana Whenua before the undertaking of works in areas of cultural significance.

· Commitment to exploring subcontracting traffic management services with Māori suppliers, where the capability exists.

· Building a relationship with carvers and providing them with native wood.

· Offering chip to marae and gardens.

· Developing cultural competency.

49. In consultation with Amotai, it was identified that no Māori businesses were of the right size or scale to take on any immediate subcontracting arrangements. Amotai suggested a Cook Island owner supplier (Tree Smiths) who may have the capacity and skills to provide sub-contracting of tree pruning (outside of the utility zone). Both suppliers confirmed they will work with Auckland Council on how to engage Māori and Pacifika suppliers in the delivery of these contracts, when possible.

50. Auckland Council will ensure that the conversation around improving outcomes for Māori is ongoing, including through the application of contractual KPIs, which will be reviewed during supplier review meetings, and the establishment of principles to encourage long lasting behavioral change.

51. The percentage of Māori workforce between the two suppliers ranges between 15-25%. This metric will be closely monitored monthly.

52. Auckland Council are committed to improving Māori outcomes in line with the organisational framework and priority areas. Both suppliers have committed to collaboratively working with council to develop a pathway which will provide enduring outcomes for Māori.

Ngā ritenga ā-pūtea

Financial implications

53. The contracts are within the overall budget of $8.0 million per annum and the commercial outcomes expected will be delivered.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

54. A mitigation plan for a successful roll out of the contracts is included in the confidential section of the Strategic Procurement Committee meeting.

Ngā koringa ā-muri

Next steps

55. If the Strategic Procurement Committee approves the supplier recommendations, staff will finalise and sign contracts with suppliers.

56. Once contracts are signed, staff will work closely with suppliers to ensure a smooth handover of services to the new contracts starting 1 December 2021

Ngā tāpirihanga

Attachments

There are no attachments for this report.

Ngā kaihaina

Signatories

Authors

Grace Kingston - Strategic Procurement Specialist

David Stejskal, Regional Arborists and Ecological Manager

Authorisers

Taryn Crewe - General Manager Community Facilities

Claudia Wyss - Director Customer and Community Services

Jazz Singh - General Manager Procurement

Strategic Procurement Committee

02 November 2021

Supplier recommendation for Corban Reserve stormwater upgrade – stage one

File No.: CP2021/15608

Te take mō te pūrongo

Purpose of the report

1. To provide an update on the stage one physical works procurement for the Corban Reserve stormwater upgrade project.

Whakarāpopototanga matua

Executive summary

2. The Corban Reserve stormwater upgrade project has been commissioned and designed to eliminate a known health and safety risk.

3. The project will also alleviate flooding risk and provide for the future growth of the upstream catchment. Water quality of the Opanuku Stream is also expected to improve following the elimination of leachate discharge through the stormwater network.

4. The project is structured into three stages. Stage one consists of the construction of a stormwater pipe from 18 Imperial Place in Henderson to the Opanuku Stream to divert the stormwater network away from the Corban Reserve closed landfill. Stage two will decommission the existing stormwater pipe underneath Corban Reserve. Stage three will upgrade the undersized local stormwater network between 165 and 139 Henderson Valley Road, Henderson.

5. The resource consent for stage one was publicly notified in June 2021 and is expected to be granted by the end of October 2021.

6. The procurement plan for the project was approved by the Strategic Procurement Committee on 13 April 2021 (STR/2021/12) and in collaboration with Watercare Services Limited, an amendment memo has been subsequently approved by the council’s Chief Executive to add a portion of the North Harbour No. 2 watermain scope of works into this procurement to reduce disruption to residents and impacts on the environment in and around the Opanuku Stream.

7. An update on procurement of the project will be provided in the confidential section of the 2 November 2021 Strategic Procurement Committee meeting.

Ngā tūtohunga

Recommendations

That the Strategic Procurement Committee:

a) note the information contained in this report, on the stage one of the Corban Reserve stormwater upgrade project, enables transparency on the topic due for discussion in the public excluded part of the meeting

b) note that the confidential report contains information that could prejudice the Council's commercial position with suppliers and commercially confidential information for suppliers.

Horopaki

Context

8. A stormwater pipe that runs through a closed landfill in Corban Reserve has been identified as posing an on-going health and safety risk to the public and council staff, due to the presence of landfill gases.

9. Monitoring shows that the pipe is collecting methane gas from the closed landfill at levels which are potentially explosive if ignited. A methane explosion during stormwater upgrade works at the site in 1996 resulted in a fatality.

10. Leachate from the closed landfill is also infiltrating into the stormwater pipe, resulting in elevated heavy metals and levels of ammoniacal nitrate being discharged to the Opanuku Stream.

11. In addition, flooding of residential properties upstream of the pipe is frequent due to existing downstream capacity constraints and debris blocking the inlet to the stormwater pipe. The creation of the landfill has also resulted in an embankment, blocking the natural overland flow path and flooding properties. Flooding of upstream residential properties is currently reported up to five times per year and 21 properties are at risk of flooding in a one per cent annual exceedance probability storm event.

12. The council is managing these risks in the short-term through various measures, such as close monitoring of the landfill site and the use of a ventilation system in Corban Reserve to safely disperse gases over reserve land. However, a more permanent solution is needed.

13. Analysis conducted by council staff indicates that construction of a new stormwater pipeline and decommissioning the piped section through the closed landfill is the only way to effectively eliminate these risks.

North Harbour No.2 Watermain works

14. Auckland Council has been working collaboratively with Watercare Services Limited to identify opportunities for synergies between this project and the North Harbour No. 2 Watermain. This pipe will service growth in the north. It also provides an alternative route for conveying water from the west to the north to provide security and resilience. The outcome of this is that a portion of the North Harbour No. 2 watermain will be delivered as part of Corban Reserve Stormwater Upgrade – stage one under one contract. This will also significantly reduce disruption to residents and impacts on the sensitive environment in and around the Opanuku Stream.

Works will be delivered in three stages

15. Auckland Council is progressing the delivery of this stormwater upgrade project in three stages. Stage one of the Corban Reserve stormwater upgrade project is to divert stormwater flows from the 78-hectare Waitaro Stream catchment away from the existing pipe under the closed landfill site at Corban Reserve. To achieve this, a new pipeline will be tunnelled along Border Road to the Opanuku Stream.

16. Stage one of the project also includes the enhancement of nearby Murillo Reserve by removing a section of pipe through the reserve; installing a low flow pipe between the main pipeline and daylighted section within Murillo Reserve; stream naturalisation upstream of Corban Reserve; and minor upgrades to Border Road Esplanade including a new shared path, boardwalk and planting. Works will include a new inlet and work on the open channel upstream to reduce the likelihood of inlet blockage. Stage one also includes installation of a new pipe and pipe bridge for the North Harbour No.2 Watermain across the Opanuku Stream.

17. Stage two of the works is to decommission the existing stormwater pipe underneath Corban Reserve. The reserve will then be upgraded with new signage and footpaths, recontouring to improve drainage, and planting.

18. Stage three of the works is to upgrade part of the local stormwater network between 165 and 139 Henderson Valley Road, Henderson. This will include installing a new larger pipe within the road berm and replacing the pipe across Henderson Valley Road.

Tātaritanga me ngā tohutohu

Analysis and advice

19. Analysis and advice regarding the procurement for stage one of the Corban Reserve stormwater upgrade project will be provided in the confidential section of the 2 November 2021 Strategic Procurement Committee meeting.

Tauākī whakaaweawe āhuarangi

Climate impact statement

20. The proposed project will not have a significant impact in terms of climate mitigation (reducing emissions). It will contribute to adaptation by increasing Auckland’s resilience to climate impacts. Preparing Auckland for the impacts of climate change is a key goal of Te Tāruke-ā-Tāwhiri: Auckland's Climate Plan.

21. The upgrades to the stormwater network at Corban Reserve are based on modelling of climate change impacts, including more extreme weather events. They will provide increased capacity in the stormwater network to manage these climate impacts.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

22. Auckland Council and Watercare Services Limited have been working collaboratively to identify opportunities for synergies, particularly between this project and the North Harbour No. 2 watermain that is proposed along Border Road Esplanade Reserve. The outcome of this collaboration is that the council’s Healthy Waters department will be delivering a portion of the North Harbour No.2 Watermain, which will reduce disruption to residents and impacts on the environment in and around Opanuku Stream.

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

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

Local impacts and local board views

Local impacts

24. This project will have significant benefits for people living in the area in terms of health and safety, environment, increased capacity of the local stormwater network and increased amenity as outlined in previous reports to the Strategic Procurement Committee.

25. Delivering a portion of the North Harbour No.2 Watermain with the stage one works will also significantly reduce the disruption to the environment and community within Border Road Esplanade and Shona Esplanade.

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

Local board views

27. The Henderson-Massey Local Board provided feedback on the proposed stormwater upgrade project at a workshop in September 2019. The board expressed support for the project and requested specific consideration be given to the health and safety issues associated with the site. The board also indicated its support for the upgrades of the Murillo Reserve, Border Road Esplanade and Corban Reserve, which will occur in stages one and two of the project.

Tauākī whakaaweawe Māori

Māori impact statement

28. A project brief was provided to mana whenua in October 2016 with an updated version presented in January 2018. Both Te Rūnanga o Ngāti Whātua and Te Kawerau ā Maki expressed an interest in the project.

29. A site visit with both iwi was hosted by Healthy Waters. The current discharge of leachate was considered by mana whenua to be severely detrimental to the mauri of both the Waitaro Stream and Opanuku Stream and the removal of leachate therefore essential. Both iwi requested that erosion of Opanuku Stream also be considered as part of project design. The potential erosion impact on Opanuku Stream has been carefully mitigated in the design of the outfall and the mauri of the Waitaro Stream will be improved by the removal of leachate.

30. The mauri of two other sections of the Waitaro Stream will also be significantly improved through the removal of the concrete lined channel, regrading, naturalisation and planting of the stream above Corban Reserve and daylighting and restoration of Waitaro Reserve at Murillo Reserve.

31. Te Rūnanga o Ngāti Whātua and Te Kawerau ā Maki confirmed their support for the project and a Cultural Impact Assessment from Te Kawerau ā Maki was received in October 2018 confirming this also.

32. The project team has continued to work in partnership with iwi on the design of the project. Specific design elements have been incorporated into the upgrade to Murillo Reserve to reflect the aspirations of iwi and their cultural history.

33. The successful contractor has committed to sub-contracting, creating employment and apprenticeship opportunities for Māori through utilisation of Māori owned suppliers as well as Auckland Council and the Ministry of Social Development’s Ngā Puna Pūkenga programme and its partnership programmes.

34. Further information will be presented in the confidential section of the 2 November 2021 Strategic Procurement Committee meeting.

Ngā ritenga ā-pūtea

Financial implications

35. Financial implications arising from the procurement for stage one of the Corban Reserve stormwater upgrade project will be provided in the confidential section of the 2 November 2021 Strategic Procurement Committee meeting.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

36. Risks and mitigations arising from the procurement plan for stage one of the Corban Reserve stormwater upgrade project will be provided in the confidential section of the 2 November 2021 Strategic Procurement Committee meeting.

Ngā koringa ā-muri

Next steps

37. Next steps arising from the procurement for stage one of the Corban Reserve stormwater upgrade project will be provided in the confidential section of the 2 November 2021 Strategic Procurement Committee meeting.

Ngā tāpirihanga

Attachments

There are no attachments for this report.

Ngā kaihaina

Signatories

Authors

Gerhard Van Rooyen – Senior Healthy Waters Specialist

Ling Hsu – Procurement Specialis

Authorisers

Craig Mcilroy – General Manager Healthy Waters

Barry Potter - Director Infrastructure and Environmental Services

Jazz Singh - General Manager Procurement

No.	Title	Page
a ⇩	Forward Work Programme	23
b	Auckland Council - Overview of Sustainable Procurement Framework - Memo and Attachments (Under Separate Cover)

Strategic Procurement Committee

02 November 2021

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

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
Area of work and Lead Department	Reason for work	Committee role (decision and/or direction)	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	7 Sep	28 Sep	Nov	Dec
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 November 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 November 2021.
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.	Progress to date: Procurement plan approved for rates valuations RFP on 10 August 2021 (Resolution number STR/2021/31). Decision: Approval of supplier recommendation report. A report will be provided in December 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 December 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 December 2021.
Clinker Place Stomwater network project Healthy Waters	To award a contract to deliver the project for Stormwater network from Clinker Place to Rankin Avenue and Ambrico Place to a proposed outfall in Manawa wetland reserve. This project supports the Special Housing Area development at Clinker Place.	Progress to date: Early Contractor Involvement (ECI) is completed after a closed tender with suitable suppliers. Decision: Approval of the supplier recommendation report to award the construction contract after ECI phase. A report will be provided in December 2021. Note: the construction phase is currently being priced and the estimate is likely to be in the Strategic Procurement Committee’s approval threshold. Subject to time needed for negotiation, this report may be delayed.

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)
Healthy Waters	Healthy Waters Programme Delivery model 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.	Approval of procurement plan and strategy to approach the market for Healthy Waters alternate programme delivery model.	Procurement plan and strategy to approach the market approved. (Resolution number STR/2021/35)
Information Communication Technology	SAP Maintenance Agreement The current SAP maintenance agreement is due to expire at the end of December 2021. Procurement plan to approve direct negotiation with SAP.	Approval of procurement plan to directly negotiate with SAP.	Procurement plan to directly negotiate with SAP approved. (Resolution number STR/2021/45)
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)
People and Capability	All of Government (AOG) Recruitment Panel To approve further budget spend against AOG Recruitment panel.	Approval of contract variation to AOG Recruitment Panel.	Contract variation of AOG Agreement approved. (Resolution number STR/2021/44)
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)

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

Date	Subject
12/10/21	Auckland Council - Overview of Sustainable Procurement Framework

Author	Maea Petherick - Kaitohutohu Mana Whakahaere Matua / Senior Governance Advisor
Authoriser	Jazz Singh - General Manager Procurement