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, 7 June 2022, 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 August 2022

Variation to Ports of Auckland stormwater outfall upgrade - design and construction

File No.: CP2022/04469

Te take mō te pūrongo

Purpose of the report

1. To provide an update on the variation to the Ports of Auckland stormwater outfall upgrade contract.

Whakarāpopototanga matua

Executive summary

2. The culvert which runs under Ports of Auckland (the Ports) is in poor condition and needs to be repaired. It also has insufficient capacity to convey stormwater in extreme events, creating an unacceptable level of flood risk.

3. Upgrading the culvert will reduce flooding risk to the surrounding area, including Waitematā Station (formerly Britomart) and the City Rail Link, and will enable further development.

4. In 2014 the Tenders and Procurement Committee approved the procurement plan for this project, which included a plan to enter into an early contractor involvement contract (ECI) with a supplier.

5. McConnell Dowell Constructors Limited was selected to deliver this contract. They have worked with the council to develop a preliminary design and contract works offer for the project.

6. The supplier recommendation for the project was approved by the Strategic Procurement Committee on 7 November 2018 (STR/2018/79). The contract for design and construction of the Ports of Auckland stormwater outfall upgrade (the Works) was awarded to McConnell Dowell Constructors Limited on 17 December 2018 for the sum of $29,987,176 with a contingency of $4.5 million.

7. Construction Works within the Ports commenced on 1 February 2022 after extensive delays that involved negotiating an access license agreement with the Ports, an easement license agreement with Whai Rawa and resource consent being granted in April 2021.

8. An update on the expenditure of the project will be provided in the confidential section of the 2 August 2022 Strategic Procurement Committee meeting.

Ngā tūtohunga

Recommendation

That the Strategic Procurement Committee:

a) note the information contained in this report, on the Ports of Auckland stormwater outfall upgrade project, enables transparency on the topic due for discussion in the public excluded part of the meeting.

Horopaki

Context

9. Investigations have shown that the 80-year-old culvert under the Ports is in poor condition. Hydraulic modelling of the catchment show that the culvert has insufficient capacity to convey stormwater in extreme events (i.e. the flood risk associated with the existing arrangement is unacceptable). Failure of the culvert would result in flooding of the lower catchment, including Waitematā Station (formerly Britomart), and potentially serious health and safety issues for Ports of Auckland’s operations.

10. This project is the third stage of a broader project to upgrade the catchment’s stormwater trunk network. The two upstream stages were completed approximately 15 years ago. As a result, the project has a defined upstream extent on the southern side of Quay Street, where Stage 2 terminated. The project works of the final stage will traverse Quay Street and the Ports’ Multi-Cargo area, terminating in a new outfall.

11. The construction entails the construction of a siphon that enables rehabilitation of the existing culvert, one on the southern side of Quay Street and the other within the port, and a new outlet near the existing outlet. This will address the risk of failure of the culvert, makes best use of an existing asset, is optimally sized to manage flood risk in the medium term, is the most direct route horizontally and has the fewest construction effects.

Previous decisions

12. At the committee meeting of 25 March 2014, the Tenders and Procurement Committee approved the procurement plan for this project and for the procurement to proceed in two phases.

13. In 2015, the council entered into an Early Contractor Involvement (ECI) contract with McConnell Dowell to undertake investigation, develop a preliminary design and provide a Contract Works Offer (CWO) as the first phase of the procurement.

14. The supplier recommendation for the project was approved by the Strategic Procurement Committee on 7 November 2018 (STR/2018/79). The contract for design and construction of the Works was awarded to McConnell Dowell Constructors Limited on 17 December 2018.

Tātaritanga me ngā tohutohu

Analysis and advice

15. Analysis and advice regarding the Ports of Auckland outfall upgrade project will be provided in the confidential section of the 2 August 2022 Strategic Procurement Committee meeting.

Tauākī whakaaweawe āhuarangi

Climate impact statement

16. 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.

17. Extreme weather events and flooding are becoming more frequent due to climate change. This project will provide resilience by managing flood risk by providing additional capacity in the stormwater network downstream.

18. The design has allowed for a minimum 0.5m increase in sea level to account for climate change.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

19. The council group is working collaboratively to best manage this risk and support the outcome of a safer community through eliminating the flood risk and improving flood protection.

20. 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.

21. Watercare have also been consulted on the project to provide specialist advice, including a high-level review of the proposed maintenance methodology on siphons.

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

Local impacts and local board views

Local impacts

22. Delivery of this project will significantly reduce the risk of flooding in the lower areas of the catchment and in the Waitematā Station area. This will have positive local impacts for the many residents, businesses and commuters who live, work and commute in this area.

23. The design of the project will ensure only minor traffic disruption on Quay Street, minimising the potential negative impacts on commuters and local residents.

Local board views

24. Healthy Waters briefed the Waitematā Local Board in 2014. The project manager briefed the Natural Environment committee of the Waitemata Local Board in March 2016 and the Orakei Local Board in June 2016.

25. A further update on the regional project was provided to the Waitematā Local Board in February 2022.

Tauākī whakaaweawe Māori

Māori impact statement

26. Projects that impact on stormwater and the mauri of waterways are of key interest to mana whenua in their role as kaitiaki. Consultation with mana whenua commenced in 2015 and continues through ongoing hui. Mana whenua interests in improving stormwater quality discharged at the outlet are acknowledged. These interests are intended to be addressed in broader initiatives outside of this project, as the constraints of the existing and proposed stormwater network prevent implementation of meaningful stormwater quality improvements within the project works.

27. Five iwi engaged in consultation: Ngāti te Ata Waiohua, Te Kawerau ā Maki, Ngāti Tamaoho, Te Ākitai Waiohua and Ngāti Whātua Ōrākei. Three other iwi expressed an interest but deferred to Ngāti Whātua Ōrākei to give feedback on their behalf: Ngā Maunga Whakahii o Kaipara, Te Rūnanga o Ngāti Whātua and Te Patukirikiri.

28. In their feedback on the project, mana whenua expressed an interest in improving the water quality of stormwater discharged from the Ports of Auckland outlet.

29. The constraints of the existing stormwater network and proposed upgrade prevent implementation of meaningful stormwater quality improvements through this specific project’s works.

30. Improvements to water quality will be addressed through broader initiatives which are being delivered alongside this project. For example, a study is underway of existing stormwater treatment in the central city catchment and opportunities for further improvements. The water quality targeted rate is also enabling accelerated delivery of projects to achieve water quality improvements.

Ngā ritenga ā-pūtea

Financial implications

31. Financial implications for Ports of Auckland outfall upgrade project will be provided in the confidential section of the 2 August 2022 Strategic Procurement Committee meeting.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

32. Risks and mitigations for Ports of Auckland outfall upgrade project will be provided in the confidential section of the 2 August 2022 Strategic Procurement Committee meeting.

Ngā koringa ā-muri

Next steps

33. Construction of the Ports of Auckland outfall upgrade project commenced on 1 February 2022 and is anticipated to finish in February 2024.

34. Further next steps for the Ports of Auckland outfall upgrade project will be provided in the confidential section of the 2 August 2022 Strategic Procurement Committee meeting.

Ngā tāpirihanga

Attachments

There are no attachments for this report.

Ngā kaihaina

Signatories

Authors

Gerhard Van Rooyen – Principal Project Delivery, Healthy Waters Design & Delivery

Vivian Dias – Procurement Manager, Capital Procurement

Authorisers

Barry Potter - Director Infrastructure and Environmental Services

Jazz Singh - General Manager Procurement

Strategic Procurement Committee

02 August 2022

SAP Support and Maintenance Renewal 2022

File No.: CP2022/10409

Te take mō te pūrongo

Purpose of the report

1. To note an update on ongoing negotiations with SAP New Zealand Limited for support and maintenance contracts, which are due to renew on 31 December 2022.

Whakarāpopototanga matua

Executive summary

2. During the merger of legacy councils and creation of Auckland Council in 2010 the then Auckland Transition Authority chose SAP New Zealand Limited (SAP) to offer all back-office software services purchased under an enterprise licensing regime.

3. Today many of the council’s frontline and back-office functions continue to be powered by SAP software (provided in Table 1 below). The overall licence agreement with the council was last reviewed in late 2015.

4. SAP Products support a significant proportion of Council’s core services and functions as follows:

Table 1: SAP products and services

Service	SAP product
Regulatory	SAP CRM
Customer Services	SAP CRM
Payroll	SAP ECC
Human Resources	Success Factors
Procure to Pay	SAP Ariba, SAP SRM
Finance	SAP SRM, SAP ECC
E-commerce	Hybris
Data Warehouse and Business Intelligence	Business Objects
Expense Management	Concur

Ngā tūtohunga

Recommendations

That the Strategic Procurement Committee:

a) note that the information contained in this report regarding the Auckland Council SAP Software license and support agreement enables transparency on the topic due for discussion in the public excluded part of the meeting.

b) note that the confidential report on this agenda regarding the SAP support and maintenance contract contains information that could prejudice the council’s position in future negotiations with SAP.

Horopaki

Context

5. The SAP support and maintenance contract will continue to be direct sourced with SAP. Staff have considered alternative providers for maintenance in the past. The council team believes such a move would, at present, introduce risk that is unacceptable given SAP’s strategic importance to the organisation.

Tātaritanga me ngā tohutohu

Analysis and advice

6. Details regarding analysis and advice of this procurement will be provided in the confidential section of the 2August 2022 Strategic Procurement Committee meeting agenda.

Tauākī whakaaweawe āhuarangi

Climate impact statement

7. SAP in March 2021 announced its intention to accelerate and achieve carbon-neutrality in its own operation by the end of 2023. SAP considers all its direct and indirect emissions as well as selected emissions arising in the supply chain, including those linked to business flights, travel in rental cars and third-party data centres.

8. SAP exceeded its target for reducing net carbon emissions in 2020 by 43 per cent, generating 135 kilotons instead of the anticipated 238 kilotons of emissions. In comparison, SAP’s emissions in 2019 were 300 kilotons.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

9. The council group attracts discounts for SAP products under a group licensing approach. This procurement will not change any aspect of that arrangement.

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

Local impacts and local board views

10. While it is recognised local boards use some of the applications and systems of SAP, they will see no change or minimal change arising from this procurement activity.

11. If council were to pursue an alternative proposal any current services would be replaced with equivalent solutions ensuring minimal disruption.

Tauākī whakaaweawe Māori

Māori impact statement

12. This procurement presents an opportunity to align SAP more closely to council’s Māori outcome objectives. In line with council’s sustainable procurement guidelines, staff continues to engage with SAP to ensure they are committed to increase Māori employment and provide internship opportunities for Māori students.

13. These activities would be monitored quarterly through our supplier relationship management programme.

Ngā ritenga ā-pūtea

Financial implications

14. The recommendation to renew the contract is funded within existing budgets and will be discussed further in the confidential section of this report.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

15. There is a risk of disruption to council services if this contract is not renewed before the 31 December 2022.

Ngā koringa ā-muri

Next steps

16. Next steps for the procurement will be provided in the confidential section of the 2 August 2022 Strategic Procurement Committee meeting agenda.

Ngā tāpirihanga

Attachments

There are no attachments for this report.

Ngā kaihaina

Signatories

Author

Dilin Abraham Kuriakose - Procurement Manager

Authorisers

Mark Denvir - Director ICT

Richard Jarrett - Director Group Services

Jazz Singh - General Manager Procurement

Strategic Procurement Committee

02 August 2022

Insurance Broker Services

File No.: CP2022/10486

Te take mō te pūrongo

Purpose of the report

1. To seek approval for the Insurance Broker Services procurement plan.

Whakarāpopototanga matua

Executive summary

2. This procurement is for insurance brokerage and consultancy services to enable the future placement of insurances required by Auckland Council and the council-controlled organisations (CCOs).

3. Council would like to run an open Request for Expression of Interest (REOI) to get a better understanding of the current market capabilities, followed by a Request for Proposal (RFP).

4. A contestable procurement process will also ensure that the Auckland Council Group can obtain the required services at a fair market price and with knowledge of what the current market offerings for these services are.

5. This procurement is to obtain brokerage, advisory and consultancy services. The placement of insurance policies with insurers will be subject to separate market placement process conducted by the broker when council's policies are renewed.

6. More detail regarding the recommendation report for this project will be provided in the confidential section of this meeting agenda

Ngā tūtohunga

Recommendation/s

That the Strategic Procurement Committee:

a) note the information contained in this report, on the Insurance Broker Services procurement, enables transparency on the topic due for discussion in the public excluded part of the meeting.

Horopaki

Context

7. Council has had their existing contract with AON for six years and staff are seeking to exercise Section 17A of the Local Government Act, requiring local authorities to periodically review the cost-effectiveness of their services.

Tātaritanga me ngā tohutohu

Analysis and advice

8. The current contract with AON Broker Services expires 31 December 2022. AON have extensive historical knowledge of the council group’s insurance requirements. It is important that despite the long-standing relationship with the incumbent that we test the market to ensure we are best placed to meet a changing insurance market (both locally and internationally), meet our organisation's (including CCOs) changing needs, leverage global markets through an international broker and get best value for the council group’s insurance needs.

9. There are known suppliers in the market that may be able to meet our high-level requirements. However, some other international suppliers have entered the New Zealand market and been able to secure contracts with other local government organisations since we last went to market. For this reason, staff would like to run an open Request for Expression of Interest (REOI) to get a better understanding of the current market capabilities, followed by a closed Request for Proposal (RFP) based on a shortlist of suppliers from the REOI, to determine a final supplier.

10. A contestable procurement process will also ensure that the Auckland Council Group can obtain the required services at a fair market price and with knowledge of what the current market offerings for these services are.

11. The broker appointed by council will be required to access the insurance markets (local and international), and to be able to secure the required capacity on the best terms and conditions for the Auckland Council Group Insurance Programme. This procurement is to obtain brokerage, advisory and consultancy services. The placement of insurance policies with insurers will be subject to separate market placement process conducted by the broker when council group’s policies are renewed.

12. The topics relating to analysis, advice and recommendations are confidential information and the staff will provide further details in the confidential section of this meeting.

Tauākī whakaaweawe āhuarangi

Climate impact statement

13. It is not anticipated that there will be any climate impact through this procurement activity.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

14. Staff will be working with Watercare, Auckland Transport, Tātaki Auckland Unlimited, and Eke Panuku to ensure the requirements for the REOI and RFP are met and evaluated accordingly.

15. Staff will provide further detail in the confidential section of this meeting.

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

Local impacts and local board views

16. It is not anticipated that there will be any impact on local boards. Local boards will see no change as a result of this procurement activity.

Tauākī whakaaweawe Māori

Māori impact statement

17. Staff have provided for Māori outcomes as a specific evaluation criterion, distinct from other sustainability and social procurement objectives. Procurement staff have engaged with the Secretariat of the Independent Māori Statutory Board to begin leading the development of a set of Māori specific outcome criteria for this RFP.

18. Procurement staff have engaged with Ngā Mātārae staff to begin the development of a set of Māori specific outcome criteria for this RFP.

19. Staff will provide further detail in the confidential section of this meeting.

Ngā ritenga ā-pūtea

Financial implications

20. The financial implications for Auckland Council will be provided in the confidential section of the Strategic Procurement Committee meeting agenda.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

21. Details regarding the risks and mitigations of this procurement will be provided in the confidential section of the Strategic Procurement Committee meeting agenda

Ngā koringa ā-muri

Next steps

22. Once the Strategic Procurement Committee has approved the insurance brokerage and consultancy services procurement plan, staff will begin the REOI activity in the Government Electronic Tender platform (GETS).

23. It is anticipated that the procurement process will be completed by the end of December 2022.

Ngā tāpirihanga

Attachments

There are no attachments for this report.

Ngā kaihaina

Signatories

Author

Danny Doyle- Strategic Procurement Specialist

Authorisers

John Bishop - Group Treasurer

Peter Gudsell - Group Chief Financial Officer

Jazz Singh - General Manager Procurement

Strategic Procurement Committee

02 August 2022

Procurement plan for Te Hā Noa Victoria St Linear Park streetscape upgrade

File No.: CP2022/09966

Te take mō te pūrongo

Purpose of the report

1. To provide an update on the procurement plan for the Te Hā Noa construction contract.

Whakarāpopototanga matua

Executive summary

2. The City Centre Masterplan 2020 was adopted by the Planning Committee in March 2020 (resolution number PLA/2020/17). It is a place-based document that gives effect to the aspirations of the city centre in the Auckland Plan. The masterplan is shaped by targets and direction from the Te-Tāruke-ā-Tāwhiri: Auckland’s Climate Plan.

3. Te Hā Noa – Victoria Street Linear Park project delivers on the City Centre Masterplan Transformational move six: The Green Link, a vision to connect the city centre and the waterfront through a green linear park connecting Victoria and Albert parks along Victoria Street (the developed design layout is provided as Attachment A).

4. The working title, Te Hā Noa was gifted from the mana whenua project working group for the project. Te Hā Noa means to freely experience one’s surroundings, to breathe and acknowledge the sights and sounds whilst journeying within the city centre and the link between Te Koranga and Te Reuroa.

5. Auckland Council completed an indicative business case for Te Hā Noa – Victoria Street Linear Park project in May 2020 and a detailed business case in May 2021. The detailed business case recommends that investment in Te Hā Noa – Victoria Street Linear Park proceeds with a phased approached. It is recommended that stage one of Te Hā Noa – Victoria Street Linear Park comprises the area between Federal Street and Kitchener Street, including the City Rail Link Te Wai Horotiu (Aotea) station portals.

6. Auckland Council has identified Te Hā Noa as a critical project in the revitalisation of the city centre within the midtown precinct and a key driver for the project is to align it with planned opening of the City Rail Link’s Te Wai Horotiu (Aotea) station portals to support the investment in the City Rail Link.

7. Consideration has been given to the other projects being delivered in the midtown precinct by Auckland Transport, Watercare and City Rail Link Ltd to ensure all parties are working together in an effective and efficient manner.

8. An analysis of the options considered in the procurement plan will provided in the confidential section of the 2 August 2022 Strategic Procurement Committee meeting.

Ngā tūtohunga

Recommendation/s

That the Strategic Procurement Committee:

a) note the information contained in this report, on Te Hā Noa – Victoria Street Linear Park construction 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.

Horopaki

Context

9. The council is delivering the City Centre Masterplan 2020. The recent completion of projects in downtown Auckland, Wynyard Quarter and Karangahape Road are examples of how the council group is working together to create a city that is responding to the way that our communities want to live, work and play.

10. The council’s developments are now focused on upgrades within midtown, initially on the areas around the future Te Wai Horotiu (Aotea) Station and current Victoria Street, Wellesley Street and Queen Street areas.

11. The midtown programme, which is currently in development, comprises the key council group initiatives which are targeted to align with the opening of the City Rail Link’s Te Wai Horotiu (Aotea) Station in the midtown area. The key projects of the midtown programme are Te Hā Noa - Victoria Street Linear Park, Auckland Transport’s Wellesley Street Bus Improvements project, the new Watercare wastewater infrastructure works in Mayoral Drive, Wellesley Street and Queen Street, and large-scale utility works being planned by Vector.

12. In preparation for the opening of the City Rail Link Te Wai Horotiu (Aotea) station, designs are being prepared for the area around the station portals, including new pedestrian zones, cycle lanes and roading infrastructure to ensure that it is accessible and welcoming for the thousands of people who will use the station every day.

13. Te Hā Noa – Victoria Street Linear Park project will change the way that people experience and travel through midtown, whether on bus, foot, bike, or scooter by providing a corridor of green space that includes footpaths, trees and street furniture on a key route that is used to connect Victoria and Albert parks by the different transport modes. The developed design layout is provided in Attachment A.

14. This project delivers on the City Centre Masterplan Transformational Move 6 outcomes. The Green Link, a vision to connect the city centre and the waterfront through a green linear park connecting Victoria and Albert parks along Victoria Street as shown in Figures 1 and 2 below. Public consultation on the revised City Centre Masterplan in 2019 indicated that 86 per cent of respondents supported the concept of a green link connecting the city’s open spaces.

Diagram

Description automatically generated with medium confidence

Figure 1: Te Hā Noa Stage One Developed Design General Arrangement Plan (Stage 1)

Map

Description automatically generated

Figure 2: Project Area (all stages) as envisaged in the City Centre Master Plan

15. Te Hā Noa - Victoria Street Linear Park was identified in the City Centre Masterplan as part of the blueprint for transformation of the city centre.

Project purpose statement

16. The following purpose statement has been developed by the project team and community of practice to guide and underpin the direction and decision making in this project:

17. “We are transforming Victoria Street to create a thriving public space for movement, rest and recreation, in a way that reflects the unique identity of Tāmaki Makaurau, to enhance the wellbeing of our people, our city and our natural environment.”

Additional context

18. Further context for this project will be provided in the confidential

section of the Strategic Procurement Committee meeting agenda of 2 August 2022.

Tātaritanga me ngā tohutohu

Analysis and advice

Analysis of Council group procurement strategy

19. Due to the interaction with the adjacent projects led by City Rail Link Ltd., Watercare and Auckland Transport, staff considered the option of procuring construction services individually or in conjunction with those organisations.

20. An analysis of the delivery model for this contract will be provided in the confidential section of the Strategic Procurement Committee meeting agenda of 2 August 2022.

Analysis of options for procurement approach

21. Analysis of the procurement approach for delivering this contract will be provided in the confidential section of the Strategic Procurement Committee meeting agenda 2 August 2022.

Sustainability outcomes achieved by the preferred option

22. This procurement approach is supporting the council’s sustainable procurement framework, which enables the project to positively impact the economic, environmental, social and cultural well-being of the community.

Tauākī whakaaweawe āhuarangi

Climate impact statement

23. Staff continue to focus on sustainability and climate change outcomes as part of this project. Staff have developed a sustainability development framework for the project to embed sustainable principles within the project, built on existing Auckland Council strategies.

24. The sustainability guiding principles are:

· Resilient infrastructure - the functionality of the asset is resilient to risks associated with climate change.

· Governance - to report on sustainability performance throughout the project.

· Effective decision-making processes to deliver sustainable outcomes.

· Whole-of-life-thinking design that minimises environmental impacts through the operational lifecycle.

· Biodiversity - o enhance ecological diversity and ecological value of Victoria Street.

25. These principles will be measured and tracked throughout the project. This will assist Te Hā Noa - Victoria Street Linear Park to contribute to Auckland Council’s commitment to the wellbeing of our community and climate action as set out in Te Tāruke-ā-Tāwhiri: Auckland’s Climate Plan.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

26. The project team has and will continue to work closely with Auckland Transport, Watercare, the Link Alliance and City Rail Link Ltd to ensure alignment with projects and to minmise the level of disruption to city centre communities were possible. This will inlcue coordination of the the Victoria Street andAlbert Street, and Victoria Street andQueen Street intersections closures, engagement in midtown, and the various design and construction programmes.

27. Several integration workstreams across the council group are currently established for the midtown area. These span utilities, network operations, cycling, engagement and communications, and the development response (which manages the risks and issues to the public and businesses in the area).

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

Local impacts and local board views

28. Four key benefits of investment from the investment logic map have been identified for Te Hā Noa Victoria Street Linear Park which support all six outcomes in the Waitematā Local Board Plan 2020. The table below shows this relationship.

Table 1: Relationship between project benefits and local board plan outcomes

Benefit statement	Local board plan outcome
1: Increased pedestrian and cycling linkages for movement along and across Victoria Street.	Outcome 5: Sustainable transport network that is safe and accessible.
2: Activated quality spaces for commercial and recreational activities.	Outcome 3: High quality urban development that has accessible, versatile and sustainable public and private spaces. Outcome 6: Waitematā business are sustainable, innovative and prosperous.
3. Improved sense of belonging and connection to place.	Outcome 1: Māori are empowered, and their identity and culture is visible. Outcome 2: Connected communities that are inclusive, accessible and equitable.
4: A healthier and more sustainable city centre.	Outcome 4: Waitematā is future-focused, green and resilient to climate change.

29. The Waitematā Local Board Plan 2017 notes the board’s support for creating a green Victoria Street Linear Park in line with the City Centre Masterplan. Investment in Te Hā Noa Victoria Street Linear Park supports all six outcomes in the Waitematā Local Board Plan 2020.

30. Staff received feedback from the board on the preliminary design for Te Hā Noa - Victoria Street Linear Park following the finalisation of the public feedback report at a business meeting in April 2022 (WTM/2022/61). The board stated support for the project and provided extensive feedback on the proposed design including a request that the cycleway have a different treatment to the road, that the maximum possible number of trees and vegetation should be added to the project, and provided support for the narrowing of Victoria Street to a single lane and the removal of general parking. This has been incorporated into the project design.

Tauākī whakaaweawe Māori

Māori impact statement

31. Partnership with mana whenua has been fundamental to this project. The project team continues to work with mana whenua to demonstrate best practice in developing Te Hā Noa – Victoria Street Linear Park project. The working title, Te Hā Noa was gifted from the mana whenua project working group.

32. Te Hā Noa means to freely experience one’s surroundings, to breathe and acknowledge the sights and sounds whilst journeying within the city centre and the link between Te Koranga and Te Reuroa.

33. A cultural framework for the project has been agreed with mana whenua and continues to guide the project practices, engagement, and design outcomes. This cultural framework remains the intellectual property of mana whenua, and is shown in Table 2 below:

Table 2: Cultural Framework and Sustainability Principles for Te Hā Noa

Table

Description automatically generated

34. The proposed procurement approach contains the following options to ensure that the project has a positive impact on Māori communities:

· suppliers are encouraged to achieve outcomes for Māori, including employment opportunities and/or apprenticeship schemes and sub-contracting to Māori suppliers

· the council will specify a requirement in the request for proposal that a minimum of 15 percent of the sub-contractor spend is to be with diverse suppliers and will specify a requirement of a minimum 10 percent spend to be with Māori suppliers within that amount.

Ngā ritenga ā-pūtea

Financial implications

35. Analysis of the financial implications arising from this contract will be provided in the confidential section of the Strategic Procurement Committee meeting agenda on 2 August 2022.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

36. Analysis of the risks and mitigations arising from this contract will be provided in the confidential section of the Strategic Procurement Committee meeting agenda on 2 August 2022.

Ngā koringa ā-muri

Next steps

37. Next steps will be provided in the confidential section of the Strategic Procurement Committee meeting agenda on 2 August 2022.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇩	Te Hā Noa stage one developed design layout	29

Ngā kaihaina

Signatories

Authors

Oliver Smith – Manager Programme Delivery, City Centre Programmes, Development Programmes Office

Mohamed Eltayeb – Senior Programme Manager, City Centre Programmes

Vivian Dias – Procurement Manager, Capital Procurement

Authorisers

Barry Potter - Director Infrastructure and Environmental Services

Jazz Singh - General Manager Procurement

Strategic Procurement Committee

02 August 2022

WorkSmart Programme Manukau office building refurbishment update

File No.: CP2022/10546

Te take mō te pūrongo

Purpose of the report

1. To provide an update on the WorkSmart Manukau Civic building refurbishment project.

Whakarāpopototanga matua

Executive summary

2. The Manukau Civic project forms part of the overall self-funded (through disposals) Corporate Property WorkSmart programme approved by Finance and Performance Committee in May 2018 (resolution number FIN/2018/67).

3. It involves consolidation of corporate buildings in the south into a single consolidated office hub and includes a new location for the Ōtara-Papatoetoe Local Board and Service Centre.

4. Once completed, the overall WorkSmart programme will deliver a 50 per cent reduction in floor space from the legacy office portfolio, a 45 per cent reduction in carbon emission and fit-for purpose office space across the region.

5. In June 2021, the council’s Chief Executive approved the Manukau Civic business case for the design and delivery of two projects. This included the WorkSmart refurbishment budgeted works and several Long-term Plan (LTP) budgeted renewals projects (lifts, heating and ventilation systems and LED lighting upgrades). These projects are now being delivered at the same time for increased efficiency and to reduce disruption to our workforce.

6. Further detail for this project will be provided in the confidential section of the Strategic Procurement Committee meeting agenda of 2 August 2022.

Ngā tūtohunga

Recommendation/s

That the Strategic Procurement Committee:

a) tuhi ā-taipitopito / note the delegated approval from Auckland Council Chief Executive and the Chair of the Strategic Procurement Committee to award the competitively tendered main construction contract for the Manukau Hub project to Savory Construction Limited on 17 May 2022.

b) tuhi ā-taipitopito / note that the confidential report contains information that could prejudice the council's commercial position with suppliers.

Horopaki

Context

7. The Corporate Property Portfolio Strategy (now called WorkSmart programme) was approved by Finance and Performance Committee in May 2018 (resolution number FIN/2018/67).

8. Forming part of this approval, proceeds from the disposal of surplus pre-amalgmation office buildings are to be ring-fenced to provide funding for the approved WorkSmart refurbishment programme works.

9. Key objectives of the WorkSmart Programme include:

a) Supporting our workforce and elected members: delivering an efficient network of fit-for-purpose office buildings and flexible workspaces across Tāmaki Makaurau.

b) Māori Outcomes: delivering on Māori outcomes by embedding sustainable procurement into construction contracts and engaging with iwi to incorporate Te Aranga design principles and provide dedicated mana whenua spaces into our large office buildings.

c) Sustainability: significantly reducing our carbon footprint by optimising our office building footprint overall and upgrading ventilation systems in the buildings we retain.

d) Financial outcomes: self-funded through disposals, the programme delivers refurbished office buildings with lower on-going operating costs and avoids circa $117 million in planned maintenance cost in the buildings we exit over the 10-year LTP period.

10. Within the 10-year Budget approved budgets are in place for the WorkSmart Programme. Key projects are summarised as follows:

a) Central: our workforce moves from Graham Street and Te Wharau a Horotiu-Bledisloe House to the refurbished Te Wharau a Tāmaki-Auckland House,135 Albert Street, Auckland Central. Completed June 2021.

b) West: workforce moves from the Henderson Admininstration building to fully refurbished Te Ipu Kura a Maki-Henderson Civic, 6 Henderson Valley Road. Completed June 2022.

c) North: workforce move from Ōrewa and Takapuna office buildings to new workspace in a leased building next to the Albany bus interchange at 6 – 8 Munroe Lane, owned and developed by Asset Plus Limited. Expected completion between April and June 2023.

d) South: workforce move from the Franklin Service Centre, Papakura Service Centre and Kotuku House to the refurbished Manukau Civic building (the subject of this report), 31-33 Wiri Station Road. Completion date January 2024.

e) Local boards: three local board office refurbishments were completed during FY21 and FY22, three are currently in delivery through FY23, with five more local boards in planning to be delivered FY23 and FY24.

f) Storage: consolidated efficient records and archives storage relocated from the office buildings we exit is underway and due be completed December 2023.

Tātaritanga me ngā tohutohu

Analysis and advice

11. Working with Finance, Procurement and with Legal support a decision was made to procure a main construction contractor for a substantial portion of both the WorkSmart workplace refurbishment project and the renewals projects. This achieves the following benefits:

a) a coordinated project delivery approach to complete the works more efficiently

b) significantly less disruption to staff and our customers

c) competitively procured and managed construction programme under one contract is simpler to procure, easier to manage and less risky overall

d) avoid further cost escalation risk which may occur if the works were phased over a period of time.

12. Through FY22 a competitively tendered 2-stage procurement process was undertaken for the main construction contract, including open market Request for Expression of Interest through GETS, followed by a Tender Release (NZS 3910) in SAP Ariba to the shortlisted contractors.

13. On 17 May 2022 the Chief Executive and Chair of the Strategic Procurement Committee approved the award of the competitively tendered main construction contract to Savory Construction Limited.

14. Further detail for this project will be provided in the confidential section of the Strategic Procurement Committee meeting agenda of 2 August 2022.

Tauākī whakaaweawe āhuarangi

Climate impact statement

15. The WorkSmart programme overall delivers substantial reductions in energy, water and gas use by reducing the amount of office space we use and by investing in energy efficient mechanical ventilation systems and LED lighting systems in the buildings we retain. Once the main works are completed, we anticipate a minimum of 45 per cent reduction in corporate building carbon emissions from 2575 tonnes CO₂ to 1410 tonnes CO_2.

16. In the south, workforce consolidation to the refurbished Manukau Civic building and disposal of Franklin and Papakura Service Centres, and Kotuku House will:

a) Reduce overall annual energy by up to 59 per cent in the south, from circa 3.2 gigawatt hours to 1.3 gigawatt hours.

b) Reduce overall annual carbon emissions in the south by 59 per cent, from circa 415 tonnes to 169 tonnes, which is equivalent to 62,336 vehicle trips between Manukau and Auckland Central.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

17. The WorkSmart team has worked closely with Eke Panuku and Auckland Transport over an extended period to ensure the Manukau Hub project is aligned and integrated with Transform Manukau objectives, the planned Osterly Way roading alignment, landscaping plans and footpath designs.

18. Furthermore, in discussion with Eke Panuku, the design detail for the Manukau Hub is aligned to enable two future development sites on councils Manukau Civic building land, including a potential relocation site for the Manukau library.

19. The WorkSmart team will incorporate wi-fi network systems capable of supporting council-controlled organisation (CCO) staff to seamlessly work from council workspace.

20. This strategy ensures council can offer optimised workspace to CCO staff at minimal additional cost, potentially avoiding unnecessary inflexible third-party commercial lease commitments across the council group.

21. We are proactively working closely with Auckland Transport and Tātaki Auckland Unlimited to ensure we account for their Manukau office accommodation requirements

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

Local impacts and local board views

22. Working closely with Local Board Services, from the outset of the WorkSmart programme we have continued to engage with impacted local board members which includes the Ōtara-Papatoetoe, Franklin, and Papakura Local Boards in the south.

23. A key focus for the Manukau Civic project is the extension and refurbishment of the Western Annex which is designed to benefit council’s customers by providing:

a) new workspace to support easier access to the Ōtara-Papatoetoe Local Board and councils Local Board Services team, who relocate from Level 1 at the Manukau Civic tower

b) a new service centre which relocates from Kotuku House, delivered to latest design standards

c) dedicated accessible mana whenua space

d) a new dedicated accessible customer entrance way that is pedestrian friendly and closer to public transport, cycleways and customer carparking

e) audio-visual equipment in the local board public meeting spaces and office meeting rooms to support hybrid meeting options for local board public engagement.

24. The WorkSmart team will continue to engage with local board members through the project delivery to keep them informed of progress.

Tauākī whakaaweawe Māori

Māori impact statement

25. Social procurement principles contracted into the main construction contract targets 15 per cent of sub-contracting requirements to be with Amotai or other similar organization registered companies with performance reporting to be provided by the main contractor on a monthly basis, noting currently 43 per cent of main contractor staff are Māori and Pasifika

26. Tāmaki Makaurau Office Architecture Limited (TOA) were contracted in November 2020 to facilitate and undertake an engagement process with local iwi focusing on the new Western Annex local board and service centre area of the Manukau Civic building.

29. Through that engagement, mana whenua / cultural significance has been developed to concept stage by co-designing key design elements with iwi artists, and by providing dedicated mana whenua space.

30. The service contract with TOA is now complete and internal support has been received from councils Ngā Mātārae to continue the engagement process with local iwi artists to complete these works.

Ngā ritenga ā-pūtea

Financial implications

27. Further detail for this project will be provided in the confidential section of the Strategic Procurement Committee meeting agenda of 2 August 2022.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

28. Covid-19 related delays and on-site resourcing challenges pushing out completion date has been mitigated by allowing additional lease time at Kotuku House, should it be required.

29. There is a failure to meet the construction programme, which is mitigated by careful management of all identified critical path items.

30. Construction cost escalation due to any unknown risks is mitigated by undertaking detailed design and contractually locking in pricing relating to those design details for a substantial portion of the overall project works through the main construction contract with Savory Construction Limited.

Ngā koringa ā-muri

Next steps

31. Next steps for the WorkSmart programme include:

a) on-going regular engagement with key stakeholders including council impacted staff, the Ōtara-Papatoetoe Local Board and Local Board services teams, and Service Centre staff

b) engagement with the Papakura Local Board and Local Board Services on the divestment of the Papakura Service Centre and relocation to new premises

c) engaging with iwi to complete delivery of Te Aranga Design detail and mana whenua room fitout design.

d) on-going main contractor construction monitoring by internal and external project managers, cost managers and council’s consultant team with coordination, performance reporting and decision making through the monthly Manukau Hub Project Control Group meeting.

32. The Manukau Hub project including all workforce and local board member relocations is planned to be fully complete late 2023 or in the early 2024 calendar year.

Ngā tāpirihanga

Attachments

There are no attachments for this report.

Ngā kaihaina

Signatories

Author

Rod Aitken – Head of Corporate Property

Authorisers

Robert Irvine - General Manager - Corporate Support Services

Richard Jarrett - Director Group Services

Jim Stabback - Chief Executive

Jazz Singh - General Manager Procurement

No.	Title	Page
a ⇩	Forward Work Programme	41

Strategic Procurement Committee

02 August 2022

Komiti Mahi Āta Torotoro Rawa / Strategic Procurement Committee
Forward Work Programme 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 2022
Area of work and Lead Department	Reason for work	Committee role (decision and/or direction)	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep
Insurance Broker Treasury	Extension of existing contract	Decision: Approval of contract extension with incumbent A report will be provided in August
Victoria Linear Park streetscape upgrade Development Programme Office	Procurement Plan for construction of Victoria Linear Park streetscape upgrade along Victoria St from Albert St to Kitchener St aligning with CRL works	Decision: Approval of the procurement plan for construction. A report will be provided in August 2022.
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 supplier recommendations for the new material recycling facility operator. A report will be provided in August 2022. Progress to date: Procurement plan approved for the new material recycling facility operator on 28 September 2021 (Resolution number STR/2021/43).
Ports of Auckland Stormwater upgrade project Healthy Waters	Stormwater pipeline upgrade tunnelling project through Ports. Construction contract awarded.	Decision: Approval of variation to contract amount & additional contingency to the construction project and update on project status. A report will be provided in August 2022.
Manukau Hub construction Corporate Property	Construction contract award for Manukau Hub as part of Corporate Property WorkSmart programme	Update: Update to the Committee on the recent construction contract award for Manukau Hub. A report will be provided in August 2022.

Completed
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.	Update received April 2022 (Resolution number STR/2022/20) 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. To provide an update on the progress of the project and amendments in scope if any from the previously approved procurement plan.	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/2020/20) Increase the contract award value for the Te Whau Pathway Physical Works approved Delegate authority to council’s chief executive to award and approve variations within contingency (Resolution number STR/2021/62)
Community Facilities	Electricity Network Resilience Tree and Vegetation Maintenance To procure tree pruning services on trees covering areas around powerlines within the Auckland Council region.	Approval of the supplier recommendations.	Procurement Plan approved Supplier recommendations for enhanced tree and vegetation maintenance around electricity network Delegate financial signing authority to council’s chief executive (Resolution STR/2021/52)
Community Facilities	Avondale Community Centre To approve procurement plan for Early Contractor Involvement engagement and construction of Avondale Community Centre	Approval of the procurement plan for Early Contractor Involvement phase and construction.	Procurement Plan approved Delegate authority to council’s chief executive to execute the procurement plan (resolution number STR/2022/3). supplier for the Early Contractor Involvement contract and construction of the Avondale Library and Community Hub approved delegate authority to the Chief Executive to approve the award and signing of construction contracts (resolution number STR/2022/19)
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)
Healthy Waters	Corban Reserve Supplier recommendation 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.	Approval of the supplier recommendation report.	Procurement Plan approved to approach market for tender (Resolution number STR/2021/12) Supplier recommendations approved Delegate council’s chief executive to carry out the award and signing of contract (Resolution STR/2021/53)
Healthy Waters	Clinker Place Stormwater network project 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.	Approval of the supplier recommendation report to award the construction contract after ECI phase.	supplier for Clinker Place stormwater project approved Delegate council’s chief executive to award contract and execute any necessary variations (Resolution number STR/2021/61)
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)
Regulatory Services	Building Consents overflow services variation approval for additional years 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	Approval of variation to increase the term of contract.	Right of renewal for the contracts for the Building Consent Service approved Estimated contracted spend over renewal period approved Delegate authority to chief executive to execute variations and extensions (resolution number STR/2021/60)
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)
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.	Approval of supplier recommendation report.	Supplier recommendation report approved. (Resolution number STR/2022/23)
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.	Approval of supplier recommendation report.	Procurement Plan approved: (Resolution Number STR/2022/12) Supplier recommendation report approved (Resolution Number STR/2022/22)

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.

Update received April 2022

(Resolution number STR/2022/20)

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.

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

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/2020/20)

Increase the contract award value for the Te Whau Pathway Physical Works approved

Delegate authority to council’s chief executive to award and approve variations within contingency

(Resolution number STR/2021/62)

Community Facilities

Electricity Network Resilience Tree and Vegetation Maintenance

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

Approval of the supplier recommendations.

Procurement Plan approved

Supplier recommendations for enhanced tree and vegetation maintenance around electricity network

Delegate financial signing authority to council’s chief executive

(Resolution STR/2021/52)

Community Facilities

Avondale Community Centre

To approve procurement plan for Early Contractor Involvement engagement and construction of Avondale Community Centre

Approval of the procurement plan for Early Contractor Involvement phase and construction.

Procurement Plan approved

Delegate authority to council’s chief executive to execute the procurement plan

(resolution number STR/2022/3).

supplier for the Early Contractor Involvement contract and construction of the Avondale Library and Community Hub approved

delegate authority to the Chief Executive to approve the award and signing of construction contracts

(resolution number STR/2022/19)

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)

Healthy Waters

Corban Reserve Supplier recommendation

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.

Approval of the supplier recommendation report.

Procurement Plan approved to approach market for tender
(Resolution number STR/2021/12)

Supplier recommendations approved
Delegate council’s chief executive to carry out the award and signing of contract
(Resolution STR/2021/53)

Healthy Waters

Clinker Place Stormwater network project

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.

Approval of the supplier recommendation report to award the construction contract after ECI phase.

supplier for Clinker Place stormwater project approved
Delegate council’s chief executive to award contract and execute any necessary variations
(Resolution number STR/2021/61)

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)

Regulatory Services

Building Consents overflow services variation approval for additional years

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

Approval of variation to increase the term of contract.

Right of renewal for the contracts for the Building Consent Service approved

Estimated contracted spend over renewal period approved

Delegate authority to chief executive to execute variations and extensions

(resolution number STR/2021/60)

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)

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.

Approval of supplier recommendation report.

Supplier recommendation report approved.

(Resolution number STR/2022/23)

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.

Approval of supplier recommendation report.

Procurement Plan approved:

(Resolution Number STR/2022/12)

Supplier recommendation report approved

(Resolution Number STR/2022/22)

Strategic Procurement Committee

02 August 2022

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: Variation to Ports of Auckland stormwater outfall upgrade - design and construction

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