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

Date: Time: Meeting Room: Venue:	Tuesday, 18 April 2023 10.00am Reception Lounge Auckland Town Hall 301-305 Queen Street Auckland
Komiti mō te Kaitaonga me te Whakahaere i ngā Whakapaunga Pūtea / Expenditure Control and Procurement Committee OPEN AGENDA

MEMBERSHIP

Chairperson	Cr Maurice Williamson
Deputy Chairperson	Cr Greg Sayers
Members	Cr Angela Dalton	IMSB Member Tony Kake, MNZM
	Cr Julie Fairey	Cr Mike Lee
	Cr Alf Filipaina, MNZM	Cr Daniel Newman, JP
	Cr Shane Henderson	IMSB Chair David Taipari
Ex-officio	Mayor Wayne Brown
	Deputy Mayor Desley Simpson, JP

(Quorum 5 members)

Duncan Glasgow

Kaitohutohu Mana Whakahaere Matua /
Senior Governance Advisor

13 April 2023

Contact Telephone: +64 9 8902656

Email: duncan.glasgow@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

Expenditure Control and Procurement Committee 18 April 2023

ITEM   TABLE OF CONTENTS                                                                                         PAGE

1 Ngā Tamōtanga | Apologies                                                                                         5

2          Te Whakapuaki i te Whai Pānga | Declaration of Interest                                         5

3          Te Whakaū i ngā Āmiki | Confirmation of Minutes                                                    5

4          Ngā Petihana | Petitions                                                                                                5

5          Ngā Kōrero a te Marea | Public Input                                                                           5

6          Ngā Kōrero a te Poari ā-Rohe Pātata | Local Board Input                                        5

7          Ngā Pakihi Autaia | Extraordinary Business                                                              5

8          Expenditure Control and Procurement Committee Forward Work Programme    7

9          Te Whakaaro ki ngā Take Pūtea e Autaia ana | Consideration of Extraordinary Items

PUBLIC EXCLUDED

10        Te Mōtini ā-Tukanga hei Kaupare i te Marea | Procedural Motion to Exclude the Public        11

C1       CONFIDENTIAL: Extension of Small Waters and Wastewater Systems Operations and Maintenance contracts                                                                                        11

C2       CONFIDENTIAL: Materials Recovery Facility contract costs                                 11

C3       CONFIDENTIAL: Procurement approach for facilities management of Auckland Council's recreational facilities                                                                                  12

C4       CONFIDENTIAL: Council Group Insurance Renewal 2023/2024                            12

1          Ngā Tamōtanga | Apologies

2          Te Whakapuaki i te Whai Pānga | Declaration of Interest

3          Te Whakaū i ngā Āmiki | Confirmation of Minutes

            Click the meeting date below to access the minutes.

That the Expenditure Control and Procurement Committee:

a) confirm the ordinary minutes of its meeting, held on Tuesday, 21 March 2023, including the confidential section, as a true and correct record.

4          Ngā Petihana | Petitions

5          Ngā Kōrero a te Marea | Public Input

6          Ngā Kōrero a te Poari ā-Rohe Pātata | Local Board Input

7          Ngā Pakihi Autaia | Extraordinary Business

Expenditure Control and Procurement Committee 18 April 2023

Expenditure Control and Procurement Committee Forward Work Programme

File No.: CP2023/03647

Te take mō te pūrongo

Purpose of the report

1.       To whakaae / approve the Expenditure Control and Procurement Committee’s forward work programme.

Whakarāpopototanga matua

Executive summary

2.       This committee was established to assist the council to be cost effective and make financial savings. The committee will oversee proactive identification of money saving opportunities and consider the cost effectiveness of the governance, funding and delivery across the Auckland Council Group.

3.       The full terms of reference can be found here.

4.       Areas of work are briefly described and identified as requiring either decision or direction. Where possible, likely timeframes for coming before the committee have also been identified.

5.       The forward work programme will be updated and reported monthly for information as part of the summary information report. 

6.       Staff recommend that the forward work programme be reviewed after decisions are made on the Annual Budget 2023/2024 and generally every six months.

Ngā tūtohunga

Recommendation/s

That the Expenditure Control and Procurement Committee:

a)      whakaae / approve the Expenditure Control and Procurement Committee forward work programme (Attachment A of the report)

b)      whakaae / agree that the Expenditure Control and Procurement Committee forward work programme be reported monthly for information and reviewed on a six-monthly basis in March and September each year.

Ngā tāpirihanga

Attachments

No.	Title	Page
a⇩	Expenditure Control and Procurement Committee Forward Work Programme	9

Ngā kaihaina

Signatories

Author	Duncan Glasgow - Kaitohutohu Mana Whakahaere / Governance Advisor
Authoriser	Ross Chirnside - General Manager Value For Money

Expenditure Control and Procurement Committee 18 April 2023

Komiti mō te Kaitaonga me te Whakahaere i ngā Whakapaunga Pūtea / Expenditure Control and Procurement Committee
Draft Forward Work Programme 2023

This committee deals with assisting the council to be cost effective and make financial savings.  The full terms of reference can be found here: Auckland Council Governing Body Terms of Reference

Area of work and Lead Department	Pūnga / Reason for work	Committee role (whakatau / decision and/or tika / direction)	Expected timeframes Highlight the month(s) this is expected to come to committee in 2023
			Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
Procurement
Small Waters and Wastewater System maintenance contract renewal Healthy Waters	Approval to exercise the 2 years right of renewal for the Small Waters and Wastewater System maintenance contract from 1 July 2023 to 30 June 2025	Decision: Approval of the contract extension for 2 years right of renewal. A report will be provided in April 2023
Recruitment and Temp Supplier Panel P&C	Auckland Council’s permanent and temporary positions are often recruited using its supplier panel from All of Government, this panel is due to expire in Sep 2023. A market activity is proposed to identify preferred suppliers either accessing the new All of Government panel members or a sole approach by council.	Decision: Approval of the procurement plan to identify recruitment panel suppliers. A report will be provided in May 2023.
Electricity (Time of Use / Non Time of Use) C&CS and Corporate Property	Auckland Council electricity supply contracts are due to expire at the end of the year hence Auckland Council is taking its contracts to market to identify a preferred supplier.	Decision: Approval of the procurement plan for the supply of electricity to Auckland Council. A report will be provided in May 2023.
Recruitment and Temp Supplier Panel P&C	Supplier recommendation report for the award of contract(s) to the preferred supplier that form a panel for council.	Decision: Approval of the supplier recommendation report for recruitment panel. A report will be provided in August 2023.
Electricity (Time of Use / Non Time of Use) C&CS and Corporate Property	Supplier recommendation report for the award of contract(s) to preferred vendor for the supply of electricity to Auckland Council.	Decision: Approval of the supplier recommendation report for electricity contract(s).  A report will be provided in October 2023.
Insurance
Insurance Strategy and Placement Risk and Assurance	Approve insurance strategy and then note outcomes	Further update (April) Note insurance outcome (August) Progress to date: Approve high level insurance strategy and delegate final approval to Group Chief Financial Officer Link to decision
Asset optimisation
Asset recycling Auckland Council and Eke Panuku Development Auckland	Mayoral Proposal for 2023/2024 set asset optimisation and strategic assessment of council’s asset ownership as one of the focuses to cover council’s financial gap.	Agree to proceed with recommended asset recycling opportunities or disposals Note: Committee has responsibility for approving acquisition and disposal of council property in accordance with the Long-term Plan/Annual Budget and which is not the responsibility of any other committee including non-service property (i.e. the Transport and Infrastructure and Planning, Environment and Parks Committee also have acquisition and disposal responsibilities) Progress to date: Update on asset recycling programme provided Link to decision
Expenditure Control and Procurement savings target opportunities
Service optimisation Value for Money	The draft Annual Budget Consultation Document tasks the Expenditure Control and Procurement Committee with identifying $5 million in savings from Auckland Council and other council controlled organisations.	Agree to recommend to proceed with optimisation opportunities
Committee savings target Auckland Transport	The draft Annual Budget Consultation Document tasks the Expenditure Control and Procurement Committee with identifying $7.5 million in savings from Auckland Transport	Provide direction on proposed savings opportunities from Auckland Transport. Progress to date: Workshop scheduled for 19 April 2023
Section 17A reviews
Section 17A reviews Value for Money	Council has a legal obligation under section 17A to review the cost-effectiveness of the delivery of our services	Monitor compliance with Section 17A and implementation of review recommendations Agree recommendations arising from Section 17A reviews

Expenditure Control and Procurement Committee 18 April 2023

Exclusion of the Public: Local Government Official Information and Meetings Act 1987

That the Expenditure Control and 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: Extension of Small Waters and Wastewater Systems Operations and Maintenance contracts

Reason for passing this resolution in relation to each matter	Particular interest(s) protected (where applicable)	Ground(s) under section 48(1) for the passing of this resolution
The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.	s7(2)(h) - The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities. s7(2)(i) - The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations). In particular, the report contains information that could prejudice the council's position with potential suppliers.	s48(1)(a) The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

C2       CONFIDENTIAL: Materials Recovery Facility contract costs

Reason for passing this resolution in relation to each matter	Particular interest(s) protected (where applicable)	Ground(s) under section 48(1) for the passing of this resolution
The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.	s7(2)(h) - The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities. s7(2)(i) - The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations). In particular, the report contains information which could prejudice the council's position in commercial negotiations.	s48(1)(a) The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

C3       CONFIDENTIAL: Procurement approach for facilities management of Auckland Council's recreational facilities

Reason for passing this resolution in relation to each matter	Particular interest(s) protected (where applicable)	Ground(s) under section 48(1) for the passing of this resolution
The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.	s7(2)(c)(ii) - The withholding of the information is necessary to protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely to damage the public interest. s7(2)(h) - The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities. s7(2)(i) - The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations). In particular, the report contains information that could prejudice the council's position with potential suppliers.	s48(1)(a) The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

C4       CONFIDENTIAL: Council Group Insurance Renewal 2023/2024

Reason for passing this resolution in relation to each matter	Particular interest(s) protected (where applicable)	Ground(s) under section 48(1) for the passing of this resolution
The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.	s7(2)(h) - The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities. In particular, the report contains details of the proposed insurance strategy, polices and programme for which terms and costings are being sort from negotiated with the insurance market.	s48(1)(a) The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.