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A G E N D A
COUNCIL MEETING
Wednesday, 24 April 2019, 9.00am
Council Chambers Council Office William Street Paeroa
Mayor J P Tregidga Councillors Cr D A Adams (Deputy Mayor) Cr P D Buckthought Cr C Daley Cr R Harris Cr G R Leonard Cr M McLean Cr P A Milner Cr A Rattray Cr D Smeaton Cr A M Spicer Cr D H Swales Cr J H Thorp Executive Leadership L D Cavers D Peddie A de Laborde P Thom S Fabish Public Distribution Paeroa Office Plains Area Office Waihi Area Office Chief Executive L D Cavers
Hauraki District Council, P O Box 17, William Street Paeroa, New Zealand P: 07 862 8609 or 0800 734 834 (within the District) E: [email protected] www.hauraki-dc.govt.nz
Membership
1 Council Agenda 24-04-19 Doc. Ref: 2563937
COUNCIL AGENDA Wednesday, 24 April 2019 – 9.00am Council Chambers, Council Office, William Street, Paeroa Order of Business Pages
1. Karakia
2. Apologies
3. Declarations of Interests
4. Declarations of Late Items
5. Confirmation: Council Minutes - 27-03-19 (2558281) 4
6. Chief Executive Monthly Report - April 2019 (2563963) 18
7. Proposed changes to WLASS Governance Arrangements - April 2019 (2563635) 28
8. Proposed Procurement Policy Review - April 2019 (2563713) Appendix A - Regional Procurement Principles Policy Framework (2563499)
3538
9. Council Financial Report – 30-03-19 (2563883)
10. Proposed Sensitive Expenditure Policy April 2019 (2563771)
92
102 Attachment A - Proposed Sensitive Expenditure Policy April 2019 (2563773) 104
11. Fees and Charges for Leases and Licenses (2563828) 116
12. Renewal of Licence to Occupy L-67660 Kiwirail (2563827) 123 Appendix A - Aerial view of level road crossings (2562537) 126 Appendix B - Licence L-67660 (2562538) 133
13. Road Corridor Management Cost Recovery 2563762) 161
14. Planning and Environmental Report - March 2019 (2563830) 167
15. Final CouncilMARK Assessment Report 2019 (2563496) 183
16. Draft Smokefree - Vapefree Policy (2563849) 201
17. Non Financial Performance Targets - Third Quarter -2018-19 (2563653) 211
18. Future Living Skills Programme (2563760) 233
19. Hauarahi Stream Works - Kaiaua (2563654) 239
20. Fencing Projects for Water and Wastewater Treatment Plants (2563956) 247
21. MEA for Tiaki Repo Ki Pukorokoro Reserve Community Trust (2563641) 252
22. Transport Activity Report - March 2019 (2563777) 267
23. Water Services Activity Report - April (covering March) (2563774) 275
24. Solid Waste Activity Report - March 2019 (2563782)
25. District Drainage Activity Report (2563706)
26. Receipt and adoption: Western Plains Drainage District Committee (2563858)
27. Receipt and adoption: Eastern Plains Drainage District Committee (2563855)
283
287
292
295
1 Council Minutes – 27-03-19 Doc Ref: 2558281
HAURAKI DISTRICT COUNCIL MEETING
MINUTES OF A MEETING OF THE HAURAKI DISTRICT COUNCIL HELD IN THE COUNCIL CHAMBERS, WILLIAM STREET, PAEROA ON WEDNESDAY, 27 MARCH 2019 COMMENCING AT 9.00 AM
KARAKIA The meeting was opened with a karakia by Cr Leonard. APOLOGIES RESOLVED THAT the apology of Cr Adams and Cr Rattray be received and sustained. C19/72 Milner/Daley CARRIED LATE ITEMS There were no late items. DECLARATIONS OF INTERESTS Cr Leonard declared an interest in Item 16 – Ngatea Library Services Update report. CONFIRMATION OF COUNCIL MINUTES (27-02-19) (2543628) The Mayor presented the minutes. RESOLVED THAT the minutes of the meeting of the Hauraki District Council held on Wednesday, 27 February 2019 are confirmed and are a true and correct record. C19/73 Harris/McLean CARRIED
PRESENT J P Tregidga (His Worship the Mayor), Cr P D Buckthought, Cr C Daley, Cr R Harris, Cr G R Leonard (9.00am – 1.45pm), Cr M McLean, Cr P A Milner, Cr D Smeaton, Cr A M Spicer, Cr D H Swales and Cr J H Thorp
IN ATTENDANCE Messrs L D Cavers (Chief Executive), A de Laborde (Group Manager -
Engineering Services), D Peddie (Group Manager - Corporate Services), P Thom (Group Manager - Planning & Environmental Services), S B Fabish (Group Manager - Community Services), L Robcke (Senior Strategic Planner), Ms C Mischewski and Ms G Murphy (Policy Analysts), Mrs S Holmes (Strategic Planner), L de Haast (Transportation Manager), E J Wentzel (Water Services Manager), S de Laborde (Manager, Planning and Infrastructure Systems) and Ms C Black (Council Secretary)
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CONFIRMATION OF EXTRAORDINARY MEETING OF COUNCIL (19-03-19) (2551701) The Mayor presented the minutes. RESOLVED THAT the minutes of the Extraordinary meeting of the Hauraki District Council held on Tuesday, 19 March 2019 are confirmed and are a true and correct record. C19/74 Buckthought/Spicer CARRIED RECEIPT AND ADOPTION AUDIT AND RISK COMMITTEE MINUTES – (19-02-19) (2542940) The Mayor presented the minutes. RESOLVED THAT the minutes of the meeting of the Audit & Risk Committee held on Tuesday, 19 February 2019 are received and the recommendations contained therein be adopted. C19/75 Harris/Milner CARRIED CEO MONTHLY REPORT FOR MARCH 2019 (2551859) The Chief Executive presented his monthly report for March 2019. The report updated on the members on recent staffing activity within the organisation. RESOLVED THAT the report be received. C19/76 Tregidga/Swales CARRIED Declaration of Interest: Item 16 Cr Leonard declared a conflict of interest in the following item and took no part in the discussion and decision. NGATEA LIBRARY SERVICES UPDATE REPORT (25522858) The Group Manager – Community Services and Development presented a report which sought agreement from Council that the proposed option that was being considered to site the new Ngatea library services facility on 11 Orchard West Road, Ngatea be withdrawn. RESOLVED THAT the report be received. C19/77 Swales/McLean CARRIED RESOLVED THAT 11 Orchard West Road, Ngatea is not to be considered for the site of future Plains Ward Library Services. C19/78 Milner/Thorp CARRIED
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COUNCIL FINANCIAL REPORT - 2019 (2552255) The Group Manager – Corporate Services presented the financial report for the period to 28 February 2019. RESOLVED THAT the report be received. C19/79 Tregidga/Harris CARRIED REVISED ANNUAL PLAN 2019-20 BUDGET (2552235) The Chief Executive presented the revised budget for the Annual Plan 2019/20 as requested at the March Community Services and Development Committee meeting. RESOLVED THAT the report be received. C19/80 Tregidga/McLean CARRIED RESOLVED THAT the budget changes be approved for inclusion in the Annual Plan 2019/20. C19/81 Tregidga/Harris CARRIED PRESENTATION: (WAIKATO DISTRICT HEALTH BOARD) DRAFT SMOKEFREE/VAPE FREE POLICY (# 2562880) Ms Kay Kristensen and staff from the Waikato District Health Board provided a presentation in support of and provide feedback on Councils Draft Smokefree/Vapefree Environments Policy presently being developed by Councils nationally. The meeting adjourned at 10.25am. The meeting reconvened 10.45am PRESENTATION: (WAIKATO REGIONAL COUNCIL) TSUNAMI AND COASTAL INUNDATION MODELLING (# 2562875) Mr Rick Liefting (WRC – Team Leader – Regional Hazards) provided a presentation which updated on Coastal Inundation Tool update and Firth of Thames Tsunami assessment. 5 PERCENT UAGC SHIFT RATING IMPACT (2552338) The Group Manager – Corporate Services presented a report which provided information to Council on the likely effect on sample properties of the 5% movement from the Uniform Annual General Charge (UAGC) portion of district rates to the Capital Value (CV) based portion. The information will assist Council’s decision making regarding how quickly to implement the 5% UAGC to CV shift that was determined in the 2018-28 Long Term Plan.
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RESOLVED THAT the report be received. C19/82 McLean/Leonard CARRIED RESOLVED THAT Council resolves to implement the remaining two-thirds of the 5% UAGC-to-CV movement in 2019/20. C19/83 Harris/Smeaton CARRIED STORMWATER RATES RESOLUTION WORDING (2552684) The Group Manager – Corporate Services presented a report which advised of an issue with how Council determines which properties pay stormwater rates, and how this issue could be rectified. RESOLVED THAT the report be received. C19/84 Harris/Milner CARRIED The current wording of the stormwater rates resolution only captures properties that are able to connect to a stormwater asset. Other properties benefit from the stormwater system so should contribute to the cost of providing stormwater protection. Council can correct this issue by rewording its rates resolution, and the Funding Impact Statement in the 2019/20 Annual Plan. RESOLVED THAT Council resolves to include the amended wording in the 2019/20 Annual Plan Funding Impact Statement and 2019/20 Rates Resolution. C19/85 Leonard/Daley CARRIED 2019 ELECTIONS UPDATE REPORT (2552767) The Group Manager – Community Services and Development provided a report which updated on the 2019 triennial local government elections and on preliminary matters relating to the election process. RESOLVED THAT the report be received. C19/86 Tregidga/Spicer CARRIED The Local Electoral Regulations 2001 provide for Council to resolve the order of candidate names to appear on the voting documents (alphabetical, pseudo-random or random order). If no decision is made, the order of names defaults to alphabetical. It was requested that Council decide on the order of candidate names to appear on voting documents.
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RESOLVED THAT Council resolves for the 2019 triennial election, to adopt:
(i) the alphabetical order of candidate names.
C19/87 Daley/Swales CARRIED ELECTION COMMUNICATION AND ENGAGEMENT (2552576) The Group Manager – Community Services and Development presented a report which outlined the proposed communication and engagement plan for the 2019 local government elections. RESOLVED THAT the report be received. C19/88 Tregidga/McLean CARRIED Under Section 42 of the Local Government Regulatory Systems Amendment Bill, Councils have a duty to facilitate and foster community participation in the local government electoral process. This responsibility is placed on the chief executive of a local authority. A communication and engagement plan (attached as Appendix A) has been developed as a guideline which Council can refer to it goes through the different phases of the election process. It recognises that there are many different people and groups within the Hauraki District and that to reach them all, Council will need to engage in different ways. RESOLVED THAT according to Section 42 of the Local Government Regulatory Systems Amendment Bill the Council approves the overall approach outlined in the 2019 election communication and engagement plan (Appendix A), and THAT staff will present an updated report and plan to the Council with detailed actions added following this approval. C19/89 Leonard/McLean CARRIED REMUNERATION AUTHORITY UPDATE (2552850) The Group Manager – Community Services and Development presented a report which updated on the potential councillor remuneration pool for implementation after the 2019 Local Government elections, following a major review of elected member remuneration which was undertaken by the Remuneration Authority in 2018. RESOLVED THAT the report be received. C19/90 Swales/Smeaton CARRIED MEMORIAL BENCH SEAT REQUEST - WHIRITOA (25522785) The Group Manager – Community Services and Development presented a report which sought the consideration of a request to install a memorial bench seat at Whiritoa Beach, on the northern side of the Surf Club building.
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6 Council Minutes – 27-03-19 Doc Ref: 2558281
RESOLVED THAT the report be received. C19/91 McLean/Daley CARRIED RESOLVED THAT the request to have a memorial bench seat placed on the northern side of the Surf Club building be approved. C19/92 McLean/Daley CARRIED SMOKEFREE POLICY REPORT - MARCH 2019 (2550074) The Policy Analyst provided the recommendations of the smokefree working party that Council prepare a draft smokefree policy applying to specified outdoor areas and events. Members were referred to the information and feedback provided in the presentation provided by the Waikato DHB on developing a ‘smoke-free/vape-free’ policy earlier in the meeting. RESOLVED THAT the report be received. C19/93 Tregidga/McLean CARRIED RESOLVED THAT Council prepare a draft smoke-free/vape-free policy applying to specified outdoor areas and events. C19/94 Spicer/McLean CARRIED PLANNING AND ENVIRONMENTAL REPORT - FEBRUARY 2019 (2551960) The Group Manager – Planning and Environmental Services and the Senior Project Manager presented the monthly planning and regulatory report for the month of February 2019. RESOLVED THAT the report be received. C19/95 Milner/McLean CARRIED Extraordinary Meeting – 22 May 2019 – Hearing of Feedback on Draft Bylaws It was recommended that an Extraordinary meeting of Council be scheduled for 22 May 2019 to allow for the special consultative procedure to be undertaken including a hearing of feedback on a number of bylaws.
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7 Council Minutes – 27-03-19 Doc Ref: 2558281
RESOLVED THAT all public feedback on the Draft Cemeteries Bylaw 2019, Draft Wharves and Boat Ramps Bylaw 2019, Draft Food Grading Bylaw 2019, Draft Nuisance Bylaw 2019 be considered at an extraordinary meeting of the Council on 22 May 2019. C19/96 Milner/Spicer CARRIED The meeting adjourned at midday. The meeting reconvened at 12.30pm DOG REGISTRATION FEES 2019 (2551938) The Group Manager – Planning and Environmental Services presented a report which sought Council approval for the Dog Registration and Impounding Fees for the 2019/20 dog registration year. RESOLVED THAT the report be received. C19/97 Milner/Smeaton CARRIED RESOLVED THAT pursuant to Section 37 and Section 68 of the Dog Control Act 1996 the Fees and Charges as detailed in Appendix A, Schedule 1 of this report is adopted as the scale of fees for Dog Registration and Impounding Fees for the 2019/20 dog registration year. C19/98 Swales/Buckthought CARRIED ADOPTION OF DRAFT NUISANCE BYLAW 2019 (2552372) The Policy Analyst presented a report which sought Council’s approval of the draft Nuisance Bylaw 2019, the related fee changes and the adoption of the Statement of Proposal prior to public consultation and the proposed revocation of the Franklin District Council Brothel Bylaw 2010, and the Franklin District Council Trading in Public Places Bylaw 2008 for consultation. RESOLVED THAT the report be received. C19/99 Milner/Buckthought CARRIED RESOLVED THAT in accordance with section 155(1) of the Local Government Act 2002 the draft Nuisance Bylaw 2019 is the most appropriate way of addressing the perceived problems, and THAT in accordance with section 155(2) of the Local Government Act 2002 the draft Nuisance Bylaw 2019 is the most appropriate form of bylaw and does not have any implications under the New Zealand Bill of Rights Act 1990, and THAT in accordance with section 145 and section 159 of the Local Government Act 2002 the Council approves the draft Nuisance Bylaw 2019 (as contained in the Statement of Proposal attached) for public consultation, and
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THAT the Council approves the proposed new fees for ‘permission to keep pigs, poultry or bees in an urban area or low density residential zone’ and the proposed new fee for ‘permission to drive a vehicle on the beach’ for public consultation, and THAT the Council approves the proposed revocation of the Franklin District Council Brothel Bylaw 2010 and the Franklin District Council Trading in Public Places Bylaw 2008 for public consultation, and THAT the special consultative procedure is used for community engagement on the draft Nuisance Bylaw 2019 (and associated fees and the revocation of the Franklin District Council Bylaws) and related timeframes and approach are approved, and THAT in accordance with sections 156(1)(a) and 86 of the Local Government Act 2002 the Council adopt the attached Statement of Proposal for the Draft Nuisance Bylaw 2019. C19/100 Milner/Buckthought CARRIED ADOPTION OF THE DRAFT CEMETERIES BYLAW 2019 (2551588) The Policy Analyst presented a report which sought Council approval of the draft Cemeteries Bylaw 2019, the Cemetery fees changes and the adoption of the Statement of Proposal prior to public consultation and the revocation of the Franklin District Council Cemeteries Bylaw 2008. RESOLVED THAT the report be received. C19/101 Milner/Leonard CARRIED RESOLVED THAT in accordance with section 155(1) of the Local Government Act 2002 the draft Cemeteries Bylaw 2019 is the most appropriate way of addressing the perceived problems, and THAT in accordance with section 155(2) of the Local Government Act 2002 the draft Cemeteries Bylaw 2019 is the most appropriate form of bylaw and does not have any implications under the New Zealand Bill of Rights Act 1990, and THAT in accordance with sections 145 and 159 of the Local Government Act 2002 and section 16 of the Burial and Cremations Act 1964 the Council approve the draft Cemeteries Bylaw 2019 (as contained in the Statement of Proposal attached) for public consultation, and THAT the Council approve the proposed revocation of the Franklin District Council Cemeteries Bylaw 2008 for public consultation, and THAT the Council approve the proposed changes to the Cemetery fees for public consultation, and THAT the special consultative procedure is used for community engagement on the draft Wharves Bylaw 2019, the revocation of the Franklin District Council Cemeteries Bylaw 2008, and the proposed changes to the Cemetery fees and the related timeframes and approach are approved, and THAT in accordance with sections 156(1) (a) and 86 of the Local Government Act 2002 the Council adopt the attached Statement of Proposal. C19/102 Milner/Daley CARRIED
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ADOPTION OF THE DRAFT FOOD GRADING BYLAW 2019 (2551590) The Policy Analyst presented a report which sought Council approval of the draft Food Grading Bylaw 2019 and the adoption of the Statement of Proposal prior to public consultation. RESOLVED THAT the report be received. C19/103 Milner/Harris CARRIED RESOLVED THAT in accordance with section 155(1) of the Local Government Act 2002 the draft Food Grading Bylaw 2019 is the most appropriate way of addressing the perceived problems, and THAT in accordance with section 155(2) of the Local Government Act 2002 the draft Food Grading Bylaw 2019 is the most appropriate form of bylaw and does not have any implications under the New Zealand Bill of Rights Act 1990, and THAT in accordance with sections 145 and 159 of the Local Government Act 2002 the Council approves the draft Food Grading Bylaw 2019 (as contained in the Statement of Proposal attached) for public consultation, and THAT the Council approves the removal of historical registration and food grading fees from the Council’s schedule of fees and charges, and THAT the special consultative procedure is used for community engagement on the draft Food Grading Bylaw 2019, and THAT in accordance with sections 156(1)(a) and 86 of the Local Government Act 2002 the Council adopt the attached Statement of Proposal. C19/104 Buckthought/Thorp CARRIED ADOPTION OF THE DRAFT WHARVES AND BOAT RAMPS BYLAW 2019 (2551592) The Policy Analyst presented a report which sought Council approval of the draft Wharves and Boat Ramps Bylaw 2019 and adoption of the Statement of Proposal prior to public consultation. RESOLVED THAT the report be received. C19/105 Milner/Leonard CARRIED RESOLVED THAT in accordance with section 155(1) of the Local Government Act 2002 the draft Wharves and Boat Ramps Bylaw 2019 is the most appropriate way of addressing the perceived problems, and THAT in accordance with section 155(2) of the Local Government Act 2002 the draft Wharves and Boat Ramps Bylaw 2019 is the most appropriate form of bylaw and does not have any implications under the New Zealand Bill of Rights Act 1990, and THAT in accordance with section 145 and section 159 of the Local Government Act 2002 the
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Council approves the draft Wharves and Boat Ramps Bylaw 2019 (as contained in the Statement of Proposal attached) for public consultation, and THAT the special consultative procedure is used for community engagement on the draft Wharves and Boat Ramps Bylaw 2019 and the related timeframes and approach are approved, and THAT in accordance with sections 156(1)(a) and 86 of the Local Government Act 2002 the Council adopt the attached Statement of Proposal for the Draft Wharves and Boat Ramps Bylaw 2019. C19/106 Leonard/Smeaton CARRIED REQUEST FOR DEPARTURE FROM COUNCIL’S PROCUREMENT POLICY (2552033) The Policy Analyst presented a report which invited members to consider a request for departure from Council’s procurement policy. RESOLVED THAT the report be received. C19/107 Swales/Daley CARRIED It was recommended that approval is given to depart from the Council’s procurement policy requirement to undertake public tender for the purchase/procurement of professional services and that Simon Bendall (Traverse Environmental Ltd) be appointed. Further, that the Group Manager Planning and Environmental Services be authorised to approve expenditure of up to $270,000 for professional services by Simon Bendall (Traverse Environmental Ltd) on the Kaiaua Pūkorokoro/Miranda community plan over three years. This will allow the project to carry on as planned with the necessary expertise. RESOLVED THAT the authorisation (C18/589) to appoint the consultants, Mitchell Daysh be cancelled, and THAT the appointment of the consultants, Simon Bendall (Traverse Environmental Ltd) be authorised for professional services to undertake an adaptive planning process for the Kaiaua Pūkorokoro/Miranda community plan project, and THAT the Group Manager Planning and Environmental Services be authorised to approve expenditure up to the amount specified in the report and for the consultants specified in the report, for undertaking work on the Kaiaua Pukorokoro/Miranda community plan project, over three years. C19/108 Milner/Harris CARRIED 2019 TRIENNIAL SURVEY - COUNCIL DIRECTION (2551458) The Strategic Planner presented a report on the Hauraki District Council Draft 2019 Triennial Customer Survey. RESOLVED THAT the report be received. C19/109 Thorp/Spicer CARRIED
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This triennial survey includes additional areas of focus to aid in the newly elected Council’s strategic decision-making. Member’s feedback and direction was invited on what matters should be included in the draft survey for the 2019 Year. It was agreed that the matter of ‘rates affordability’ be removed from the survey. RESOLVED THAT the Council approves the following matters be included in the draft 2019 triennial customer survey: 1. Future priorities 2. Perception of the Council 3. Communication practices and preferences 4. Climate change C19/110 Milner/Spicer CARRIED COUNCIL REPORT - KEREPEHI WWTP (2551903) The Water Services Manager presented a report which sought approval of the final costs for the Kerepehi wastewater treatment plant upgrade. RESOLVED THAT the report be received. C19/111 Harris/Swales CARRIED RESOLVED THAT the final cost of the project as set out in Table 1 of the report be noted and approval confirmed, and THAT an amount of $52,000 be provided on the 2018/19 budget for the final completion of the project. C19/112 Harris/Swales CARRIED Cr Leonard left the meeting at 1.45pm. WATER SERVICES REPORT TO COUNCIL (COVERING FEBRUARY) (2551956) The Water Services Manager presented the monthly water services activity report covering the month of February 2019. RESOLVED THAT the report be received. C19/113 Milner/Spicer CARRIED TRANSPORT REPORT - STREETLIGHT MAINTENANCE CONTRACT ROLL-OVER (2551756) The Transportation Manager presented a report which advised of the award of the streetlight maintenance contract to maintain the Hauraki District Council street lighting network. RESOLVED
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THAT the report be received. C19/114 Harris/Thorp CARRIED The Streetlight Maintenance Contract was awarded to McKay Limited to maintain the Hauraki District Council Street lighting Network. The Scope of the Contract includes:
• Defined Preventative Maintenance • Planned Maintenance • Unplanned Maintenance (Undefined Work) • Unplanned Work (Non Urgent) • Urgent or Emergency Work
The Contract Value for Separable Portion 1 is $ 299,388.51 (excluding GST). This amount included Provisional Sums. RESOLVED THAT the Council approves renewal of the Streetlight Maintenance Contract for the first +2 (2019-2021), for the amount of $ 226,800.00 (excluding GST), and THAT the Council approves an amount of $20,000.00 (excluding GST) to cover the use of Provisional Sums in the Contract as and when needed, and THAT the Council approves an amount of $15,000.00 (excluding GST) to cover escalation of the Contract Amount during Financial Years 2019-20 and 2020-21. C19/115 Buckthought/Harris CARRIED TRANSPORT REPORT - FEBRUARY 2019 (2551440) The Transportation Manager presented the monthly transportation activity report for the month of February 2019. RESOLVED THAT the report be received. C19/116 Swales/Daley CARRIED Gilmour Street, Waihi – Noise Reduction Controls Further to the decision made regarding mitigation measures to reduce noise issues of heavy vehicle traffic using the Gilmour Street route to SH2, it was requested that as per Clause 3.7.2 of the Land Transport Bylaw exclude emergency vehicles from being driven on this route. RESOLVED THAT under Clause 3.7.2 of the Land Transport Bylaw, Classes 4 to 14 vehicles (excluding emergency vehicles) (Vehicle Classification Scheme, NZTA 2011) are to be prohibited from being driven on Gilmour Street, Mueller Street and Haszard Street during the hours between 22h00 and 06h00, except for the purpose of loading or unloading goods or passengers at any property whose access is by way of the road or roads. C19/117 Spicer/Milner CARRIED
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SOLID WASTE REPORT TO COUNCIL - FEBRUARY 2019 (2551442) The Infrastructure Systems and Planning Manager presented the monthly report on solid waste activity covering the month of February 2019. RESOLVED THAT the report be received. C19/118 Smeaton/Harris CARRIED DISTRICT DRAINAGE ACTIVITY REPORT - FEBRUARY 2019 (2550292) The Infrastructure Systems and Planning Manager presented the monthly report on district drainage activity covering the month of February 2019. RESOLVED THAT the report be received. C19/119 Buckthought/Thorp CARRIED RECEIPT AND ADOPTION: WESTERN PLAINS DRAINAGE DISTRICT MINUTES - 07-03-19 (2550037) RESOLVED THAT the minutes of the Western Plains Drainage District Committee meeting held on 07 March 2019 be received and the recommendations therein adopted. C19/120 Buckthought/Thorp CARRIED RECEIPT AND ADOPTION: PAEROA RURAL DRAINAGE DISTRICT MINUTES - 07-03-19 (2550042) RESOLVED THAT the minutes of the Paeroa Rural Drainage District Committee meeting held on 07 March 2019 be received and the recommendations therein adopted. C19/121 Buckthought/Thorp CARRIED ADOPTION OF LITTER ACT INFRINGEMENT FEES AND POLICY 2 (2551445) The Group Manager – Engineering Services presented a report which sought Council adoption of section 13 and 14 of the Litter Act 1979 (the Act) allowing appointed Litter Control Officers to issue infringement notices and infringement fees The report also sought the adoption of the draft Litter Infringement Policy 2019. RESOLVED THAT the report be received. C19/122 Tregidga/Milner CARRIED
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RESOLVED THAT the Council adopts section 13 and 14 of the Litter Act 1979 allowing Litter Control Officers to issue infringement notices and infringement fees to offenders in the Hauraki District in accordance with Schedule 1 of the Hauraki District Council Litter Infringement Policy 2019, and THAT the Council adopts the Litter Infringement Policy 2019 (Appendix A). C19/123 Buckthought/Smeaton CARRIED HAURAKI DISTRICT COUNCIL - LIQUEFACTION STUDY (2551444) The Group Manager – Engineering Services presented a report which presented the recently commissioned Tonkin and Taylor liquefaction study of the Hauraki Plains in order to determine the potential for liquefaction to occur during an earthquake. RESOLVED THAT the report be received. C19/124 Tregidga/Milner CARRIED RESOLVED THAT the Council notes the report and that staff will use this report to inform liquefaction risk assessments when considering the District Plan, processing building consents and consents for developments. C19/125 Swales/Thorp CARRIED Triennial Election Update – Mayoralty The Mayor advised members of his decision that he will officially not be standing for the Mayoralty in the upcoming local government triennial elections. The meeting closed at 2.50pm. CONFIRMED J P Tregidga Mayor 24 April 2019
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2559652 Page 1 of 2
Information Report
To: Mayor and Councillors
From: Chief Executive – Langley Cavers
Date: Monday, 8 April 2019
File reference: Document: 2559652 Appendix A: 2562351 Appendix B: 2562353
Meeting date: Wednesday, 24 April 2019
Subject: Chief Executives Monthly Report – April 2019
Recommendation:
THAT the report be received.
1 Staff
Manuel Loffley has been appointed as Environmental Health Office. Manuel replaces Elizabeth Watts who retired earlier this year. He comes to us from Kerikeri where he is employed as an EHO team leader for the Far North District Council. Manuel will start in his new role within the Planning and Environmental Services team on Monday 27th May. Mike Maguire, a former Planning and Environmental Services Manager, is returning as a trainer to carry out a training and development project with a group of 12 staff. He will be popping in and out of the office over the next 12 months as part of his role. Margaret Corbin of Paeroa has joined us to take up a one-month position from 8th April as Temporary Executive Assistant, relieving for Erin Wood while she is on annual leave. Margaret will be in Erin’s office, assisting the Mayor with EA duties during that time. Margaret’s previous role with HDC was in 2000-2002 when she was Community Services Administrator. Leanne Charteris has been appointed to the role of Customer Services Team Leader. Leanne, who has been a Customer Services Advisor with HDC since 2015, commenced her new role in early April. Raylene Bane was appointed to the position of Credit Controller within the Revenue Team in the Corporate Services Department. Raylene has been promoted from her existing role of Rates Officer, with the change taking effect from Monday 25th March to coincide with Teresa Morrison’s departure.
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2559652 Page 2 of 2
Rebecca Brownlee started as Library Assistant in a part-time role at the Paeroa Library on 8th April. Rebecca is a local Paeroa girl who has a lot of customer service experience and will cover at both Paeroa and Waihi Libraries. We are awaiting confirmation of an offer to a second candidate also appointed to the Library Assistant role. David Varcoe will be joining us on 29th April to replace Daniel Sales in the Community Services Manager position. David’s most recent role has been Team Leader for City Parks - Hamilton City Council but he also has a wealth of experience from owning his own business and previously working for Waipa District Council. Teresa Ramsey has been appointed to the role of Communications Officer and started on 1st April 2019. Teresa has a journalism background and lives in Puriri so has a lot of local knowledge. Meanwhile, we farewelled Gordon Harris who resigned from his position of Management Project Accountant within the Finance Team. Gordon, who has been with HDC for around 5 years, had his last day on Friday 29th March. We also farewelled Lesley Young who was Paeroa Library Team Leader. Lesley has been part of the Library team for almost 23 years. Fellow employee Janeen Nevin will have her last day on 2nd May after working in the position of Library Assistant for almost 14 years. We have made an appointment to the role of Executive Assistant – Corporate and Engineering Services. While we have had verbal acceptance, we were awaiting written acceptance at the time of writing this report so details will be reported verbally at the meeting. We will be carrying out interviews for the position of Works Inspector – Roading early next month. Recruitment is still open for the positions of Rates Officer (2 positions) and Customer Services Advisor. Both vacancies replace existing staff who have recently been internally promoted.
2 Changes to Local Government New Zealand’s Rules
Local Government New Zealand have provided information regarding proposed changes to LGNZ’s Rules. These changes will be discussed and voted on at LGNZ’s Annual General Meeting on Sunday 7 July 2019. The information provided is attached to this report. LGNZ has provided this information on the proposed changes to the Rules well in advance of the AGM, so that council has plenty of time to consider and discuss the changes that are proposed. Langley Cavers Chief Executive
Council Agenda - 24-04-19 Page 19
LGNZ Rules Review
Proposed amendments to the Rules
Since late 2018, LGNZ has consulted with members on options for changing the LGNZ Rules, at Zone and Sector meetings.
Attached are a number of proposed substantive and technical changes to the Rules, which are based on feedback from members. These proposed changes have been discussed with, and endorsed by, LGNZ’s Governance and Strategy Advisory Group (GSAG) and National Council.
The rationale for each of the proposed changes is set out in further detail below.
These proposed changes to LGNZ’s Rules will be discussed and voted on at LGNZ’s Annual General Meeting (AGM) on Sunday 7 July 2019. Although LGNZ’s Rules provide that LGNZ is only obliged to give members 10 working days’ notice of any proposed changes to the Rules, we are providing the proposed changes to councils early so as to allow proper consideration and discussion of the proposed changes by your council, ahead of the AGM.
Proposal One – Amendments to provide Te Maruata representation on National Council (including consequential amendments)
To reflect the increasing diversity of the local government family/whanau it is proposed that the Rules be amended to provide that the Chair of Te Maruata is a member of National Council, with full voting rights.
Te Maruata Roopu Whakahaere (Te Maruata) is a subcommittee of the National Council comprised of o a remit passed at the 2008 LGNZ
councils in building strong relationsdevelopment of future policies or legislation relating to local government; and foster and support a
info
Given Te Maruata’s importance, National Council resolved in 2018 that the Chair of Te Maruata would sit on National Council as a non-voting member. Feedback from members is that the time is now right for Te Maruata’s Chair to sit as a full member of National Council.
This proposed amendment to the Rules reflects a drive for greater diversity on National Council, the tions that local
government has to reflect the obligations of the Treaty of Waitangi.
Proposal 1 (attached) details a number of consequential, technical changes that will need to be made to the Rules if the substantive proposal to provide a seat on National Council for Te Maruata’s Chair is adopted.
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Proposal Two – Amendments to give effect to Auckland Council representation on National Council (including consequential amendments)
It is proposed that the Rules be amended to provide that Auckland Council has three seats on National Council, to be held by:
The Mayor of Auckland (or an alternate member of the Auckland Council governing body appointed by the Mayor);
A member of the Auckland Council governing body; and
A member of an Auckland Council local board.
These proposed amendments are designed to reflect the scale of Auckland (one-third of New Zealand’s population). They are also designed to bring the LGNZ Rules into line with Auckland Council’s current unique governance structure (ie a governing body and local boards). The current LGNZ Rules pre-date the establishment of Auckland Council and its current governance structures, which were introduced by legislation in 2010. LGNZ’s view is that its Rules should be consistent with those changes.
Local boards are a unique governance structure, providing governance at a local level within Auckland Council and enabling democratic decision-making by and on behalf of communities within the local board area. There are 21 local boards, comprising 149 elected members in total. Local board responsibilities include adopting local board plans, agreeing annual local board agreements that set annual budgets, and agreeing and overseeing annual work programmes. Currently there is no provision for the representation of local board members on National Council. LGNZ’s view is that it is important that provision is made for the representation of this group of elected members on National Council.
As a result of these proposed changes to Auckland’s representation, Auckland Council would no longer be part of Zone 1; Zone 1 would be comprised of Far North region councils only. Zone 1 would be entitled to one seat on National Council.
To ensure that the representation of metropolitan New Zealand on National Council is not by Auckland Council alone, specific amendments are proposed to make it clear that three seats on National Council will be held by metropolitan councils other than Auckland Council.
Based on feedback from Zone meetings, it is also proposed that the Rules be amended to specifically provide that at least one of the three Metropolitan Sector representatives on National Council be from the South Island. This is designed to ensure that there is appropriate representation of metropolitan South Island on National Council.
Proposal 2 (attached) details a number of consequential, technical changes that will need to be made to the Rules if the substantive proposal to change the representation of Auckland Council on National Council is adopted.
Note that Proposals 1 and 2 will result in the membership of National Council increasing from 15 members to 18. Feedback from current National Council members is that a Council of this size for a membership based body is workable, particularly given that the Rules give National Council the power to create an executive committee, or subcommittee structures, where that is considered appropriate.
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Proposal Three – Minor (administrative) substantive changes
A number of minor administrative changes to the Rules are proposed, including:
Inclusion of community board members in the definition of Elected Member;
The ability for National Council to appoint individuals (with full speaking rights, but no voting rights) to the National Council to provide assistance to National Council because of their training, qualifications or experience; and to ensure diversity of representation;
Changes to the definition of a quorum for the purpose of National Council meetings; and
The ability for National Council to pass a resolution without a meeting with the agreement of 75 per cent of all National Council members (as opposed to all National Council members, as currently required).
These proposed amendments are designed to ensure that the Rules provide for all types of elected member, are consistent with the proposed substantive changes to the Rules, and to simplify National Council’s processes.
Proposal Four – Minor amendments to modernise and rationalise language
LGNZ is proposing that a number of changes be made to modernise the Rules (eg to make provision for electronic notices and voting), and rationalise the language of the Rules.
These changes are technical in nature, and do not result in any substantive changes to the Rules.
Next steps
As noted above, these proposed changes to the Rules will be discussed and voted on at LGNZ’s AGM on Sunday 7 July 2019. Members will receive copies of the proposed changes to the Rules as part of the formal AGM papers.
However, LGNZ is providing copies of the proposed changes in advance so that councils have plenty of time to consider the proposed changes. LGNZ encourages members to now discuss and debate the proposed changes to the Rules, ahead of the AGM.
As per Rule K4(b), each of the four proposed sets of changes to the Rules will require the support of a two-thirds majority of LGNZ’s members in order to pass. Therefore your council’s vote does matter and can make a difference.
If you would like LGNZ to visit your council to discuss the proposed changes to the Rules ahead of the AGM, please contact Malcolm Alexander or Grace Hall to arrange that – see below for contact details.
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For further information on the proposed changes, or if you have any questions, please contact Malcolm Alexander, Chief Executive ([email protected]) or Grace Hall, Senior Policy Advisor ([email protected]).
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Page 1 of 7
Decision Report
To: Council
From: Chief Executive Officer
Date: Tuesday, 16 April 2019
File reference: Document: 2563463 Appendix A: Special and Ordinary Resolutions for WLASS Board.
Portfolio holder: Mayor John Tregidga
Meeting date: Wednesday, 24 April 2019
Subject: Proposed changes to Waikato LASS governance arrangements
Recommendation:
THAT the report be received, and THAT the Council endorses the amendment of the constitution of Waikato Local Authority
Shared Services (WLASS) in the manner set out in the attached special resolution. THAT the Council approves the proposed resolution that the independent Chair be paid a fee
for service up to $45,000 per annum (plus reasonable costs and GST, if any) THAT the Council notes that the constitution for LASS as amended allows for the
independent Chair to be appointed by unanimous agreement of the Council Representative
Directors; THAT the Council approves the delegation of authority to the Council Representative
Directors to agree a fee for service for the independent Chairs up to the amount noted
above; THAT the Council approves the appointment of Mr Rob Williams CEO of Thames-Coromandel
District Council as Councils Representative director for Waikato Local Authority Shared
Services (WLASS);and THAT the Council delegates authority to the Chief Executive Officer to sign the attached
special and ordinary resolutions in Appendix A on behalf of Council.
Council Agenda - 24-04-19 Page 28
Page 2 of 7
1 Purpose
To seek the Councils’ approval on the proposed required resolutions and delegated authority
on proposed changes to the governance arrangements of WLASS. The matter or suggested decision does not involve a new activity, service, programme,
project, expenditure or other deliverable.
2 Background
WLASS is Council Controlled Organisation (CCO) established in 2005 to promote shared
services between local authorities across the Waikato region. It is owned, in equal portion, by
the 12 Waikato local authorities it serves: Hamilton City Hauraki District Matamata-Piako District Otorohanga District Rotorua Lakes South Waikato District Taupō District Thames-Coromandel District Waikato District Waikato Regional Waipa District Waitomo District WLASS’s objectives are to:
Enable the Waikato Councils to collectively be more effective as a region on the national
stage; Contribute to building central government’s confidence in the Waikato region, and to
encourage central government investment; Achieve effectiveness and efficiency gains; Reduce duplication of effort and eliminate waste through repetition; Make it easier for customers to engage with Councils in the Waikato region; Promote and contribute to the development of best practice; and Promote business transformation to improve customers’ experiences.
In 2018 the WLASS Board commissioned McGredy Winder to undertake a strategic review of
the future of WLASS and that as a result, the Board had resolved to transform WLASS. This
transformation overcomes shortcomings with the current model and allows WLASS to be better
positioned to be part of the solution to many of the challenges facing Councils. Following this review the WLASS Board, in December 2018, accepted a recommendation to
reduce the size of the Board to six, with the expectation being that it would be made up of: An independent Chair; and Council Representative Directors:
o one each from Waikato Regional and Hamilton City Councils; and o one each from the remaining central, east and south Waikato sub-regions.
The east Waikato sub-region consists of Hauraki District Council; Matamata-Piako District
Council; and Thames Coromandel District Council. The company’s constitution currently requires that each shareholder shall appoint one director.
Consequently each shareholder needs to undertake a number of formal resolutions in order for
the proposed changes to the governance structure of WLASS to take place.
Council Agenda - 24-04-19 Page 29
Page 3 of 7
3 Issue and options
Appointment of east Waikato sub-region director The Council Organisations Appointment Working Party makes recommendations to the Council
on appointments and changes to appointments to Council Organisations (CO) and Council
Controlled Organisations (CCO) in accordance with the Appointment and Remuneration of
Directors for Council Organisations Policy. Section 4.1.2 of that policy states that Council will endeavour to minimise the number of
appointments to a CO where the benefit to the Council of such an appointment is minimal. Given the topics considered by the WLASS Board appointments to the board have traditionally
been the CEO of each of the shareholder Councils. It is considered that this continue under the
proposed reform of the governing arrangement for WLASS. It is considered that the appointment of one director to represent the Councils that make up
the eastern sub-region, albeit a CEO from one of the Councils in the sub-region, is akin to the
appointment of an external director. Section 5 of the Policy considers the appointment process
of directors to CCO’s 5.1 Appointment process of Directors to CCOs
5.1.1 Where there are positions for external appointments (non-Elected Members), Council
will seek nominations accompanied by information about the nominee’s relevant skills,
experience and attributes. 5.1.2 The Council Organisation Appointment Working Party will consider all applications for
the appointment of directors to CCOs, having regard to criteria specified in this Policy.
The applicants will be scored against Council’s ‘Appointee Decision Making Matrix’
which outlines the requirements contained in section 3.0 of this Policy. 5.1.3 The Council Organisation Appointment Working Party will make a recommendation to
Council on the appointment of a director and Council will appoint its preferred
candidate by way of resolution of Council. Under the proposal there is no opportunity to applications from people other than the Chief
Executive Officers of one of the Councils within the east Waikato sub-region. Accordingly 5.1.1
and 5.1.2 would not apply in this situation. Mr Rob Williams the CEO of Thames-Coromandel
District Council has been nominated, by the CEO’s of both Matamata-Piako and Hauraki District
Councils, for the position of director to represent the east Waikato sub-region on the WLASS
Board. Accordingly, on the 16th April 2019 the Council Organisation Appointments Working Party
considered the following options in relation to the appointment of a director, on behalf of
Council, to WLASS: to endorse the proposal to appoint Mr Williams to the position of east Waikato sub-
region director on the WLASS Board; or to endorse either the CEO of Hauraki or Matamata-Piako District Council to the position
of east Waikato sub-region director on the WLASS Board. The Working Party agreed:
THAT the report be received, and THAT the Working Party endorses the appointment of Mr Rob Williams CEO of Thames-
Coromandel District Council as Councils Representative Director for Waikato Local
Authority Shared Services (WLASS). Tregidga/Milner CARRIED
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Page 4 of 7
Shareholder resolutions As identified above, there are a number of formal resolutions that need to be passed by each
of WLASS’s shareholders in order to undertake the changes requested to the governance
structure. These are set out in Appendix A. As a shareholder Council needs to consider if the proposed resolutions would be in the best
interest of Council. If so, it then needs to formally record its approval of the proposed
resolutions and delegate authority to the Chief Executive Officer to sign off the resolutions, on
its behalf at the designated WLASS meeting.
4 Significance and Engagement Assessment
This decision does not trigger the Significance and Engagement Policy Assessment Tool and
therefore is not considered significant under the Significance and Engagement Policy 2017.
5 Budget Implications
Nil
6 Recommendation
The Council should make its decision on which option to choose based on that option being the
most cost effective, and good quality option for the Hauraki District (s10 of the Local
Government Act 2002). The proposed changes to the governance structure of WLASS is intended to better enable it to
deliver on its objectives. THAT the report be received, and THAT the Council endorses the amendment of the constitution of Waikato Local Authority
Shared Services (WLASS) in the manner set out in the attached special resolution. THAT the Council approves the proposed resolution that the independent Chair be paid a fee
for service up to $45,000 per annum (plus reasonable costs and GST, if any) THAT the Council notes that the constitution for LASS as amended allows for the independent
Chair to be appointed by unanimous agreement of the Council Representative Directors; THAT the Council approves the delegation of authority to the Council Representative Directors
to agree a fee for service for the independent Chairs up to the amount noted above; THAT the Council approves the appointment of Mr Rob Williams CEO of Thames-Coromandel
District Council as Councils Representative Director for Waikato Local Authority Shared
Services (WLASS); and THAT the Council delegates authority to the Chief Executive Officer to sign the attached special
and ordinary resolutions in Appendix A on behalf of Council. Langley Cavers Chief Executive Officer
Council Agenda - 24-04-19 Page 31
Page 5 of 7
Appendix A: Proposed WLASS Shareholder Resolutions
Waikato Local Authority Shared Services Limited (“Company”)
Resolution of shareholders altering constitution Resolved on the________ day of_________ 2019 as a special resolution by all shareholders of the Company, passed by written resolution in lieu of meeting as provided in section 122 of the Companies Act 1993, that the constitution of the Company be altered by the deletion of clauses 13 (as amended by special resolution on 30 June 2011) and 15.5, and substituted with the following: 13. Appointment and Removal of Directors
13.1 Number of directors The board shall consist of not less than three (3) and not more than eight (8) directors, of whom:
a. one shall be appointed by unanimous resolution of the Council Representative Directors, and must be Independent;
b. one may be appointed by Waikato Regional Council; c. one may be appointed by Hamilton City Council; d. one may be appointed by the Waikato and Waipa District Councils; e. one may be appointed by the Thames-Coromandel, Hauraki and Matamata-Piako District
Councils; f. one may be appointed by the Otorohanga, Waitomo, South Waikato, Taupo and Rotorua District Councils;
and [the appointments under 13.1 b. – f. above, collectively being referred to as the Council Representative Directors]
g. any other appointments shall be by special resolution of the shareholders.
13.2 Extended definition
For the purposes of rule 13.1:
a. a reference to a named Authority shall include any person or body for the time being entitled to and holding the shares of that Authority in accordance with this Constitution; and
b. a director is Independent if that person is not an executive or an elected member of a shareholder and does not have any direct or indirect relationship that could reasonably materially influence that person’s decisions in relation to the Company.
13.3 Appointment and removal
A body or persons that is or are entitled to appoint a director pursuant to clause 13.1 may remove any director so appointed and appoint a replacement director. 13.4 Manner of appointment and removal
Any such appointment or removal shall be in writing and served on the company and signed by the body or persons entitled to make the appointment or removal. 13.5 Default appointment
Where any vacancy on the board has the effect of reducing the number of directors below 3, and if any body or persons entitled to appoint a replacement director fails to do so within two (2) months of the date on which the number of directors fell below 3, the board may appoint a replacement director or directors to bring the number of directors to 3. Any such appointment shall only be made at a board meeting of which 14 days’ notice in writing has been given to each director and the body or person concerned, and approved by a majority of the directors
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Page 6 of 7
present at the meeting. A director appointed under this clause will be removed upon a person next exercising their right of appointment under clause 13.1. If there is more than one director appointed under this clause on the board at any time, but less than that number are being appointed under clause 13.1, each director appointed under this clause will be replaced pursuant to the preceding sentence alphabetically. 13.6 Tenure of office
13.6.1: Other than as set out under 13.6.2, all Board terms are three years. Any Board member may be
reappointed for a further term but can serve only a maximum of six years consecutively. 13.6.2: To ensure continuity of knowledge, Board terms will initially be staggered such that:
a. on 30 June 2020, two of those persons appointed under 13.1 b. – f. shall resign (to occur in alphabetical order with reference to surname); and
b. on 30 June 2021, a further two of those persons appointed under 13.1 b. – f. (not being those who resigned on 30 June 2020) shall resign (to occur in alphabetical order with reference to surname); and
c. on 30 June 2022, the person appointed under 13.1 a. and the remaining person appointed under 13.1 b. – f., who has not previously resigned under a. or b. of this clause, shall resign.
13.6.3: Notwithstanding anything else in this clause, each director of the company can only hold office until:
a. Removal: removal in accordance with the constitution; or b. Vacation of office: vacation of office pursuant to section 157 of the Act; or c. Insolvency: an arrangement or composition with creditors made by him or her; or d. Absence from meetings: vacation of office resulting ipso facto from being absent without permission
of the board from 3 consecutive meetings of the board; or e. Resignation: written notice of resignation to the address for service of the company.
15.5 Chairperson
The chairperson of the board is the person appointed pursuant to clause 13.1(a). However, if no person is appointed under that clause or if at any meeting the chairperson is not present within five minutes after the time appointed for the meeting, the directors present may choose one of their number to be chairperson of the meeting. _______________________________ _______________________________ On behalf of Hamilton City Council On behalf of Hauraki District Council _______________________________ _______________________________ On behalf of Matamata-Piako District Council On behalf of Otorohanga District Council _______________________________ _______________________________ On behalf of Rotorua Lakes Council On behalf of South Waikato District Council _______________________________ _______________________________ On behalf of Thames-Coromandel District Council On behalf of Taupo District Council _______________________________ _______________________________ On behalf of Waikato District Council On behalf of Waikato Regional Council _______________________________ _______________________________ On behalf of Waipa District Council On behalf of Waitomo District Council
Council Agenda - 24-04-19 Page 33
Page 7 of 7
Waikato Local Authority Shared Services Limited (“Company”)
Resolution of shareholders remunerating Chair Resolved on the_______ day of __________2019 as an ordinary resolution by all shareholders of the Company, passed by written resolution in lieu of meeting as provided in section 122 of the Companies Act 1993, that:
1. An independent person appointed under the Company’s constitution to hold the office of Chair shall be remunerated up to $45,000 per annum, plus reasonable costs; and
2. Council Representative Directors on the Board of the Company are delegated authority to agree a fee with the appointed person for this role, up to this amount.
_______________________________ _______________________________ On behalf of Hamilton City Council On behalf of Hauraki District Council _______________________________ _______________________________ On behalf of Matamata-Piako District Council On behalf of Otorohanga District Council _______________________________ _______________________________ On behalf of Rotorua Lakes Council On behalf of South Waikato District Council _______________________________ _______________________________ On behalf of Thames-Coromandel District Council On behalf of Taupo District Council _______________________________ _______________________________ On behalf of Waikato District Council On behalf of Waikato Regional Council _______________________________ _______________________________ On behalf of Waipa District Council On behalf of Waitomo District Council
Council Agenda - 24-04-19 Page 34
Page 1 of 3
Decision Report
To: Council
From: Group Manager Corporate Services
Date: Tuesday, 16 April 2019
File reference: Document: 2563476 Appendix A: 2563499
Portfolio holder: Toby Adams
Meeting date: Wednesday, 24 April 2019
Subject: Procurement Policy Review
Recommendation:
THAT the report be received, and THAT The Council adopts the revised Procurement Policy with the effective date of 1 July
2019.
1 Purpose
To have the revised Procurement Policy adopted by Council.
2 Background
In recent years Councils internal auditors have recommended that Council updates its
procurement and procedures to ensure good control and consistency of procurement across
Council. In April 2018 the Waikato LASS Board met and a resolution was passed to build a single
procurement policy and supporting documents for use by Councils under the Waikato LASS
umbrella. A project team was then formed with representatives from all Waikato Councils and lead by Mr
Ian Potter, a procurement expert, to meet the above objective. Over the past twelve months
the team has reviewed the policies of all member councils together with MBIE and other
guidance in the area of procurement. The proposed Procurement Policy Appendix A is the result of that Waikato LASS work.
Council Agenda - 24-04-19 Page 35
Page 2 of 3
3 Key Changes Proposed
A. The proposed policy introduces the concept of hierarchy in relation to procurement. All of Government Regional Procurement
Syndicated Procurement Local Procurement
Once the requirement to spend has been established, the first consideration should be
whether or not there are All of Government (AOG) contracts, Regional or Syndicated
contracts available for use. If there are AOG, Regional or Syndicated contracts available, it is likely that the benefits
from these will outweigh the potential local benefits due to the economies of scale “buying
power” available.
B. Values – there has been a fundamental shift when it comes to procurement values at
their associated procurement processes. The changes in values are shown in the table
below. Proposed Policy Existing Policy
Procurement under $50,000 and
considered low or medium risk
requires
Negligible Purchases - purchases up to
$100.
a. 1 quote where a preferred supplier is
utilised or spend is under $20,000; or b. 2 quotes where a non-preferred
supplier is utilised and spend is over
$20,000; or c. a Purchase Order with a one-up
delegated authority approval.
These amounts are deemed to be negligible
purchases and do not require a purchase
order.
Procurement between $50,000 and
$250,000 and considered either low
or medium risk requires
Minor Purchases: Purchase amounts of
$101-$5,000
a. 3 quotes; or b. a Public or Invited RFx process to be
used as signed off in the procurement
plan. Note that if an approved Project Plan
or Business Case has been completed
which covers the information
required within the Procurement
Plan, completing a separate
Procurement Plan is not required.
are deemed to be minor purchases and may
be procured from any preferred supplier.
Procurement over $250,000, or any high-risk procurement, regardless of dollar value requires:
Negotiable Purchases: Purchase
amounts of $5,001 - $50,000
a. a Public or Invited RFx process, as signed off in the Procurement Plan. Note that if an approved Project Plan or Business Case has been completed which covers the information required within the Procurement Plan, completing a separate Procurement Plan is not required.
Are deemed to be negotiable purchases
whereby the Authorised Purchasing Officer
shall have the ability to negotiate with
and/or invite quotes from at least three
preferred suppliers. It is expected this
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Page 3 of 3
negotiation will lead to a demonstrably
competitive purchase. Where a contract is subject to a
New Zealand Transport Authority
(NZTA) subsidy
Discretionary Purchases: Purchase
amounts of $50,001 - $100,000
The financial limits and procedures
prescribed in the NZTA Procurement
Manual will apply if the standards are
higher than those set by the Council.
are deemed to be discretionary purchases
whereby written quotations are to be
obtained from a minimum of three
independent preferred or selected
suppliers/contractors The > $100,001 Purchase
Must go to public tender unless authorised
by resolution of Council or by the Chief
Executive provided it’s within his financial
delegation. Tenders are to be called in
accordance with the tender procedures The proposed Procurement Policy was considered by Council’s Audit and Risk Committee on
the 16th of April 2019 where they passed the following recommendations: THAT the report be received, and THAT the Committee endorses the adoption of the revised Procurement Policy. THAT the Committee instructs staff to place the proposed Procurement Policy on the
Council agenda for 24th April 2019 for Councils consideration.
4 Issue and options
Two Options are put forward for Councils consideration: A. The Council, following deliberations, adopt the proposed Procurement Policy as attached
to this paper. B. The Council, following deliberations, instruct the staff to undertake further work in
relation to the proposed Procurement Policy and bring it back to Council at a future date
for consideration. It is proposed that the revised Policy is Effective from the 1st of July 2019. The rationale for
this date is that we need to undertake training for staff across the organisation so that they
are prepared when the Policy becomes effective. A start date of 1 July provides for a more
efficient Audit. When undertaking the audit for the year ending 30 June 2019 Audit NZ will
assess all procurement under the existing policy rather than a mix of policies.
5 Recommendation
That Council receive the Report, and That Council adopt the proposed Procurement Policy as attached to this report effective from 1
July 2019. Duncan Peddie Group Manager Corporate Services
Council Agenda - 24-04-19 Page 37
Page | 1
Regional Procurement Principles, Policy and Framework for Waikato Councils
Reviewed By:
Position:
Date of latest review:
Council Agenda - 24-04-19 Page 38
Appendix A
Page | 2
FOREWORD This Framework has been built to support the management of spend across the various Councils within
Waikato. It is designed to align with those Councils who already have a robust Procurement framework
in place or provide the backbone for Procurement activity within Councils who currently do not.
The Principles will ensure that we uphold the integrity of our procurement and set a clear expectation
of what is expected when any person within the Council makes a financial commitment.
The Policy will ensure that we provide clear guidance on how procurement activity should be undertaken
at all levels. It provides the “rules” within which we should all operate. Our expectation is that anyone
who is undertaking procurement activity will abide by the rules and if they are unclear then guidance
should be sought.
The Frameworks will provide a consistent approach to procurement. They are a step by step guide to
enable the end user to select the appropriate procurement process having regard to the level of spend
and risk, and then to work through that process with confidence and consistency, regardless of whether
they are a full-time procurement practitioner or not. In addition, the document sets out how to determine
whether or not to utilise an All of Government, Regional or Syndicated contracts.
This document will make it clear for both suppliers and Council employees on the expectations when
procuring third party goods, services and/or works. It ensures that spend is planned out and creates
well executed third party solutions that minimise risk and maximise value for all involved.
Kelvin French
Chief Executive
Waikato LASS
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Page | 3
1. The Principles
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Page | 4
THE WAIKATO REGIONAL PROCUREMENT CORE PRINCIPLES
1. GET BEST VALUE FOR MONEY
Account for all costs and benefits over the lifetime of the goods, services and/or works.
Make sure that public funds are utilised most effectively.
Be clear on the scope of the requirements to avoid disappointment or dispute.
Make sure all risks, not just commercial, are considered before making any final
commitment.
Be clear in how the bids are evaluated so that the process is fair and transparent.
Be fair to all suppliers throughout the full procurement lifecycle.
Work with the supplier to develop opportunities to make savings and improvements.
Be responsible for the outcomes of the deal that is agreed.
2. PLAN AND MANAGE FOR SUCCESS
Make sure that you need to undertake the procurement and then plan how to get the best
outcome.
Make sure you follow the right procurement process - if in doubt go for the higher level
approach.
Get Procurement or your Procurement Lead involved early to create the best outcomes.
Consider the sustainability of the region, social responsibility and value to the community.
Take time to understand the market.
Be responsible for managing the health and safety requirements throughout the life of the
contract.
Support the suppliers through right-sized contract management and support.
3. FIT FOR PURPOSE PROCUREMENT
Make sure that the process and the contracts are fit for purpose both in content and size.
Consider the benefits of national, regional or local procurement dependant on the value it
will bring and the availability of each.
Make sure you understand the ethical nature of the procurement.
Seek support if proposed contractual changes materially change the contract.
4. KEEP THE INTEGRITY THROUGH CONTROLS
The controls within the procurement process are there to protect employees, supplier and
the public - follow them.
The Procurement Policy is not stand alone - ensure you understand your requirements in
other policies as well (e.g. Delegated Authorities).
Always ensure there is appropriate segregation of responsibility.
Highlight any conflicts of interest so that everyone has transparency on any relationships.
Always keep a record of the procurement activity undertaken so that there is clarity,
ownership and accountability.
5. PLAY BY THE RULES
Adhere to and own the Regional Procurement Principles, Policy and Framework.
Make sure everyone acts responsibly, legally, ethically and with integrity.
Stay impartial throughout the procurement process.
Protect suppliers’ commercially sensitive information and intellectual property.
Be respectful of the process, the people and the outcomes.
Strive to ensure everyone wins.
These Principles apply to anyone (employee or third party) committing funds on behalf of one or more
of the Councils with a supplier regardless of how big or small; complex or straight forward; or open or
closed the transaction(s) may be.
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2. The Policy
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THE WAIKATO REGIONAL PROCUREMENT POLICY
Procurement Policy
Overview This Procurement Policy is designed to provide all employees and authorised third parties with clarity and guidance over the purchase of goods, services and/or works required to support business delivery. The policy is designed to ensure that the Council obtains best whole-of-life value for the goods, services and/or works that it purchases from, and to maintain the highest ethical standards in dealing with, it’s suppliers. Value includes but is not limited to price, quality, sustainability and service.
Application In Scope
This Policy applies to all personnel and third parties committing expenditure on behalf of the Council on In Scope spend. This Policy applies to the commitment of all funds by employees, community boards / committees or approved third parties on behalf of the Council with the exception of property-related expenditure. Examples of expenditure to which this policy applies include:
1. Operational Expenditure – Goods, Services and/or Works required to support the day-to-day running of the Council.
2. Material Outsourcing Arrangements – involves Council entering into an agreement with another party (Supplier) to perform, on a continuing basis, a business activity which currently is, or could be, undertaken by the Council itself.
3. Panel Suppliers – where employees can purchase against pre-agreed rates and conditions of contract.
4. Consultancy Expenditure – involves the use of professional service providers to obtain advice and / or support relating to an area of specific expertise.
5. Project and Capital Expenditure – involves the Council entering into an agreement on a one-off basis with another party (Supplier) to provide an agreed specific set of outcomes aligned to a project or capital outlay.
6. NZTA Subsidised Arrangements – provides NZTA subsidised services obtained through the NZTA procurement process (NB as documented, the financial limits and procedures prescribed in the NZTA Procurement Manual will apply if NZTA standards are higher than those set by the Council).
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Policy Objectives Contract Hierarchy
The objectives of the Procurement Policy are to provide clear direction and support to management, employees and third parties in relation to the performance of procurement activities in line with the Procurement Principles and establishes a decision framework that ensures:
Adherence – all procurement is required and is undertaken in accordance with the Procurement Policy and all other associated Council Policies and Strategies;
Openness - all procurement is made in an open and transparent manner with full and fair opportunity for all eligible suppliers;
Fairness - all procurement is carried out in a fair manner and decisions are made with impartiality and without bias;
Integrity - all Council employees and/or third parties undertaking procurement do so ethically, equitably and with behavioural standards of the highest levels;
Value for Money – all procurement considers the costs and benefits over the life of the goods, services and/or works;
Risk – all procurement considers the risks (commercial and otherwise) and
ensures these are managed appropriately;
Lawfulness - all procurement is within the law and meets Council’s legal and
organisational obligations;
Accountability - employees and/or third parties and Suppliers are
accountable for their performance; and
Sustainability - all procurement is environmental and socially sustainable wherever possible, having regard to economic, environmental, and social impacts over their lifecycle.
Once the requirement to spend has been established, the first consideration should be whether or not there are All Of Government (AOG) contracts, Regional or Syndicated contracts available for use. If there are AOG, Regional or Syndicated contracts available, it is likely that the benefits from these will outweigh the potential local benefits due to the economies of scale “buying power” available. A review of these options should be undertaken and where the contract meets the requirements it is advisable for the Council to sign up to these rather than pursue a local procurement strategy.
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Any employee wishing to make a purchase on behalf of the Council needs to be aware from whom within the organisation they must get approval before making the commitment. Appropriate authorisation must be obtained prior to ordering goods, services and/or works. The authorising signatory is certifying that they have reviewed the transaction and all related documentation and that it conforms to Council policy and goals, as well as applicable laws. An authorising signatory should not both initiate and approve the same transaction. In no circumstances shall an authorising signatory approve payments of any kind to themselves. Any employee purchasing on behalf of the Council must ensure that they follow the correct procurement process based on the spend level and risk threshold. In all cases, when determining the correct procurement process, the spend level to be considered is the aggregate spend over the life of the contract and relates to the total spend on a project. For example:
1. for a maintenance agreement of $50k per annum with a three-year term the total spend is $150k and the procurement process for spend of a level of $150k should be applied;
2. the procurement planning for a project with multi-disciplines, such as refurbishment of a building, may require a builder - $100k, electrical work - $100k, HVAC work - $75k and plumbing - $50k: the procurement process for spend of a level of over $250k should be applied for the aggregated spend, although it is accepted that as part of the procurement process the Council may decide to go out for individual tender processes for each of these services separately.
Wherever possible, employees should direct all goods, services and/or works purchases through these preferred supplier contracted arrangements. A list of all AOG, Regional / Syndicated and local preferred suppliers should be available within each Council and reviewed before any commitment is made. There may be occasions when employees will notice cheaper alternatives to these contracted arrangements. Employees should be aware that these contracts have been arranged with the overall benefit to the Council(s) in mind. Overall quality, performance, and whole-of-life-cost have been considered when selecting the suppliers. Note: Whether utilising preferred or non-preferred suppliers, the correct procurement process must be applied. Because the contract and commercial negotiations have been completed in advance, the process for using preferred suppliers is far less time consuming. However, if there is a need to vary the existing terms or pricing (where there is an increase in cost) outside of the agreed contract, the supplier should then be treated as a non-preferred supplier and the non-preferred supplier process applied. A supplier who has pre-qualified under the Council’s approved HSE system and/or process is not automatically a preferred supplier. A preferred supplier will have also been through a commercial process and have a contract in place.
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Commercial Process
Values Procurement Exemption
Where an employee or authorised third party is looking to make a purchase they need to follow the appropriate procurement process. The processes have been separated to take into consideration the potential costs and risks to the Council.
Cost – these are the total costs expected for the life of the contract and should include any contingencies or on-going costs. It is the aggregate of all the costs that should be used to determine the correct procurement process to follow.
Risk – these are the risks, their likelihood, the ability to mitigate the risks and the relative impact to the Council should the risk occur. This should take into consideration all types of risk including but not limited to commercial, operational and reputational risk.
The different levels of procurement process are as follows: 1. Procurement under $50,000 and considered low or medium risk requires:
a. 1 quote where a preferred supplier is utilised or spend is under $20,000; or
b. 2 quotes where a non-preferred supplier is utilised and spend is over $20,000; or
c. a Purchase Order with a one-up delegated authority approval.
2. Procurement between $50,000 and $250,000 and considered either low or medium risk requires a. 3 quotes; or b. a Public or Invited RFx process to be used as signed off in the
procurement plan. Note that if an approved Project Plan or Business Case has been completed which covers the information required within the Procurement Plan, completing a separate Procurement Plan is not required.
3. Procurement over $250,000, or any high-risk procurement, regardless of dollar value requires: a. a Public or Invited RFx process, as signed off in the Procurement Plan.
Note that if an approved Project Plan or Business Case has been completed which covers the information required within the Procurement Plan, completing a separate Procurement Plan is not required.
4. Where a contract is subject to a New Zealand Transport Authority (NZTA) subsidy, the financial limits and procedures prescribed in the NZTA Procurement Manual will apply if the standards are higher than those set by the Council.
Note: These are the minimum requirements pertaining to undertaking procurement activity and more suppliers than the minimum can participate. The Council Specific Information sheet in this document should be checked to see if there are any additional requirements applicable for your Council.
The process for the relevant level should be followed fully. If deviation from the process is required, the reason for the deviation should comply with one or more of the following criteria: 1. Monopoly situation: Where there is a monopoly situation and only one
Supplier capable of supplying the requirements (e.g. engaging an arrangement for the supply of electricity on a network where the network is owned by a single party);
2. Proprietary technology: Where a Supplier is the sole Supplier and/or patent holder of a specific product that is required by Council. The Council must be satisfied that the proprietary technology is the most appropriate for the needs of Council;
3. Benefits and costs of competition: The time and costs of a competitive process outweigh the benefits of competition;
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Emergency Procurement Roles and Responsibilities
4. Unique business proposition: Where a Supplier has a unique business proposition that can minimise risks or costs to Council. This could include existing knowledge relevant to a project; or
5. Existing contract: If goods, services and/or works are in addition to, or necessary for the completion of, delivery of an existing contract, provided that the original contract was publicly advertised, and a change of Supplier cannot be made for economic, technical, legal or practical reasons.
The key requirement is the direct appointment represents best value for Council. Poor planning or organisation of procurement is not justification for deviation from the framework. In all instance a procurement exemption must be signed off by the designated person(s) as detailed in the Council Specific Information.
In an emergency it may be necessary to dispense with parts of the procurement
process so that the Council can react quickly to unforeseen events.
Emergency procurement should be used only in genuinely unforeseen
circumstances.
Poor planning or organisation of a procurement does not justify dispensing with
parts of this policy.
In the context of this policy an emergency is defined as an event which results in: 1. Employees, public, supplier, property or equipment being placed in
immediate risk; 2. Standards of health, welfare or safety having to be re-established without
delay; 3. The significant impairment of the Council’s delivery if the Council failed to
respond promptly; or 4. A declared or undeclared response to an ‘emergency’ as defined in the Civil
Defence and Emergency Management Act 2002.
Emergency procurement should be limited to what is required to cope with the emergency. Emergency procurement must be authorised by employees with the appropriate financial delegation as soon as practicable following the purchase.
Employees and authorised third parties are responsible for ensuring the purchasing, tendering and contract process is carried out in line with the Procurement Principles, Policy and Framework (and any other Council policies and procedures), by those who have the delegated authority to make decisions relating to procure. All Contracts and Purchase Orders are to be authorised by the appropriate delegated authority prior to the commitment of funds. Employees and/or authorised third parties are responsible for ensuring all contract information is uploaded on their local Electronic Document Management System, including all quotes or full RFx information. Whenever the Council awards a contract, a suitably skilled employee or third party must be appointed to manage the contract. The person identified to manage the contract is responsible for ensuring that what has been agreed in the contract is delivered, on time, to the appropriate quality standards, and within the agreed price. It requires the employee to actively track and monitor delivery and costs, manage risks and manage the supplier relationship throughout the contract.
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Corporate Purchasing Card Policy Conflicts of Interest Confidentiality
Monitoring of compliance with this policy
Where it is established that there is a regular requirement to purchase items for a cost centre to carry out their normal functions, the Council should consider arranging a preferred supplier contract. For more information regards eligibility, use, and reconciliation of expenditure please refer to your local Council’s Purchasing Card Policy (or similar Policy).
Conflicts of interest are circumstances where the exercise of an employee’s duties or responsibilities to the Council with regards to their dealings with suppliers, could be, or might be perceived to be, influenced by some other interest that the employee may have. The other interest might exist because of:
The employee’s own financial affairs;
A relationship or other role that the employee has (or has had); or
Something that the employee has said or done. Employees who believe they may have a conflict must disclose the conflict to the appropriate person(s) in a timely manner. For more information on identifying and managing conflicts of interest, employees should refer to the Council’s Conflicts of Interest Management Policy (or similar Policy).
The Council is committed to fair and ethical business practices that encourage competition and enhances our supplier relationships. A cornerstone of this policy is maintaining the confidentiality of all supplier proposals, quotations, prices, contracts and other proprietary materials by all employees and third parties. Confidential information is not to be disclosed in any way to other suppliers, outside organisations, or to any unauthorised persons, subject to the provisions of LGOIMA (Local Government Official Information and Meetings Act, 1987). Disclosure of confidential information is not only professionally unethical and damaging to the Council’s negotiations with suppliers, it also exposes the Council to possible reputational risk or legal action. If you have any questions about any request to provide information concerning contracts, pricing, supplier proposals or other internal information, please refer to the Council Specific Information.
The prime responsibility for the on-going monitoring of compliance with this policy rests with the delegated persons detailed in the Council Specific Information.
Breaches of policy
When there is evidence of a breach of this policy, Council will investigate to determine the circumstances and extent of the breach. Any breaches of this policy must be notified to the relevant Council employee and appropriate Council personnel will manage the incident and take action (which may include escalation).
Related Policies All related Policies can be found in the Council Specific Information.
Policy Owner Approver and Date
Version Reference and Effective Date
Further information
For further information please contact the person / people detailed in the Council Specific Information at the back of this document.
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3. The Frameworks
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THE WAIKATO REGIONAL PROCUREMENT FRAMEWORKS
The Procurement frameworks have been developed to accommodate the different levels and
complexity of spend within a Council’s portfolio. They have been ‘sized’ to enable the most efficient
process to be undertaken having considered the cost and risk associated with the procurement.
After ensuring that the spend is necessary, yet prior to choosing the methodology, it is important to
determine whether there are acceptable AOG, Regional or Syndicated contracts available that should
be used rather than undertaking a local process.
If it has been determined that the process is to be managed locally then the decision has to be made
on which of the three processes should be used:
Under $50,000 & Low or Medium Risk:
Procurement under $50,000 and considered low risk – Documented quotes required: One quote where
a preferred supplier is utilised or spend is under $20,000, two quotes where a non-preferred supplier is
utilised and spend is over $20,000 or a Purchase Order with a one-up delegated authority approval.
Spend between $50,000 and $250,000 & Low or Medium Risk:
Procurement between $50,000 and $250,000 and considered either low or medium risk – Three quotes
or a Public or Invited RFx process to be used as signed off in the Procurement Plan, if a Project Plan
or Business Case has been completed which covers all of the requirements at this level of spend
detailed in the Project Plan and has been appropriately signed off, this can be used in lieu of the
Procurement Plan. On certain occasions it may be a requirement for direct negotiations, in which case
a Procurement exemption would be sought as part of the process.
Spend over $250,000 & Low or Medium Risk or all High Risk spend:
Procurement over $250,000 and considered either low, medium or high risk, or any high-risk
procurement, regardless of dollar value – Public or Invited RFx process should be used as signed off
in the Procurement Plan, if a Project Plan or Business Case has been completed which covers all of
the requirements at this level of spend detailed in the Project Plan and has been appropriately signed
off, this can be used in lieu of the Procurement Plan. On certain occasions it may be a requirement for
direct negotiations, in which case a Procurement Exemption would be sought as part of the process.
NB – These are the minimum requirements pertaining to undertaking procurement activity and more suppliers than the minimum can participate. The Council Specific Information sheet in this document should be checked to see if there are any additional requirements applicable for your Council
When considering the right procurement framework to use, the spend should equate to the total spend
and cover the life of the contract.
For example:
if a building project is being undertaken the spend across all disciplines should be aggregated
to assess the spend level, not by individual discipline, although the resulting procurement
strategy may determine that the go to market strategy is by discipline.
if it is a maintenance contract, spend over the life of the maintenance agreement should be
aggregated to assess the spend level.
if panel suppliers are being developed, the total spend for the category should be considered
regardless of whether it is likely to be split across multiple suppliers.
Below are flowcharts and step-by-step guides for:
determining whether to use an AOG, regional, syndicated or local process; and
the process for each spend threshold.
NB: The most effective local processes have been highlighted in green and the decision points in red.
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DETERMINING WHETHER TO USE AN AOG, REGIONAL OR LOCAL
PROCESS
Yes
No
Yes
Is there an AOG contract available?
Order
Set up new Supplier, if required
Is there significant Regional benefit?
Review the contract
Complete sign up requirements
Is the AOG contract acceptable?
Identify procurement need
Estimate cost and risk
Choose Supplier based on options
Undertake Regional Procurement using the correct value and risk procurement process
Undertake a Local Procurement using the correct value and risk procurement process
No Yes
Is there a Regional or Syndicated contract available?
No
No
Yes
No
Is the Regional or syndicated contract acceptable?
Review the contract
Yes
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DETERMINING WHETHER TO USE AN AOG, REGIONAL OR LOCAL PROCESS STEP
BY STEP GUIDE
Step Description Guiding Information
1. Procurement
Need
Prior to undertaking any procurement, the need for procurement should be
established. To ensure that the correct goods, services and/or works are
received by the Council, it is important to understand what is required. These
requirements need to be clearly articulated with the suppliers to enable them
to effectively offer goods, services and/or works. Upon completion of the
procurement process these must be recorded in the contract or on the
requisition.
2. Estimate Cost
and Risk
Once the need is clearly defined, the person leading the process needs to
estimate the cost and risk. The cost should be the full cost of the procurement
as defined in the Procurement Policy, and the risk needs to be considered in
line with the Council or Waikato LASS risk thresholds. This will then provide
guidance as to the correct procurement process to follow.
3. AOG Contracts Is there an All of Government (AOG) contract available for use? If there is then
this should be reviewed to determine if it provides the goods, services and/or
works required. If it does then this method should be utilised. If it does not,
then go to Step 6.
4. AOG Sign Up Request the documentation required to sign up to the AOG contract, if it is
unclear on where to get the documentation or how to fill the information in then
contact either your local or regional procurement expert or the MBIE
Procurement team for guidance. Once completed submit all of the information.
5. AOG Supplier
Selection
Upon inclusion into the AOG contract, if there is a choice of supplier, assess
the most suitable provider, ensure that they meet the HSE requirements for
the Council, and go to step 10.
6. Regional /
Syndicated
Contracts
If there is no AOG contract, identify whether there is a Regional or Syndicated
Contract, if there is then assess that it meets the requirements of the
procurement, if it does, utilise the Contract if not, go to step 9.
7. Regional /
Syndicated
Contracts Sign
Up
Request to join the contract with the contract owner. This will be either Waikato
LASS or one of the other Councils in the region. They will vary the contract to
allow for your inclusion. Discuss and agree your requirements with the
Supplier, go to step 10.
8. Regional or
Syndicated
Benefit
Realisation
If there is no Regional or Syndicated Contract, assess whether it would be
beneficial to set one up. Review this with the other council’s procurement
leads. If there is agreement by all or a significant proportion of the Councils
then agree who will lead the process, select the appropriate procurement
process based on threshold and risk detailed within the frameworks and
execute.
9. Local
Procurement
If there is no appetite or need for a Regional Contract, undertake a local
procurement process. Utilise the methodology for choosing the correct
procurement process based on threshold and risk detailed within the
frameworks and follow the appropriate procurement process.
10. Supplier Set Up If the chosen Supplier is a new supplier, after they have met the HSE
requirements of the Council, ensure that they are set up on the system. Once
this is completed or if they are already on the system go to Step 11.
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Step Description Guiding Information
11. Order Award the contract and / or provide a Purchase Order detailing the goods,
services and/or works to be supplied.
Inform the unsuccessful suppliers and provide the opportunity for feedback, if
required.
Ensure all Procurement information is correctly filed.
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PROCUREMENT CHECKLIST
Below is a checklist to ensure all of the required information has been completed (NB the
green boxes are required and the red are not. Orange has been used where there is a
choice e.g. quote or RFx):
Required Documents / steps Under $50k & Low / Medium Risk
Between $50k & $250k & Low / Medium Risk
Over $250k & Low / Medium Risk or any High Risk
Estimate of total cost for the life of the agreement
Conflict of Interest forms
Confidentiality forms
Procurement Plan or acceptable Business Case /
Project Plan
Scope
Quote template
RFx documents
Draft contract
Evaluation documents
Notes to tenderers template
Bid receipt form
Evaluation report
Approval to proceed to negotiation form
HSE confirmation
Supplier insurance information
Final contract
Letters to unsuccessful tenderers
Recommendation / Approval form(s)
Supplier details for new supplier set up
Purchase Order
Contract management plan
Escalation process
Contract variation form
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Documents that may be required Under $50k & Low / Medium Risk
Between $50k & 250k & Low / Medium Risk
Over 250k & Low / Medium Risk or any High Risk Procurement
Procurement timetable
Conflict of Interest resolution plan
Preferred supplier agreements
Procurement Exemption
Risk review
Market & supplier analysis
Category strategy
Evaluation guidelines
Evaluation scoring sheet
Negotiation strategy
Legal contract review
Transition plan
KPI review meeting agenda
Annual review meeting agenda
Termination letter
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PROCUREMENT UNDER $50,000 & LOW OR MEDIUM RISK
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Yes
No
Use preferred suppliers rates and agree quotes for time and materials
No
No
Yes
No
No
Get required quotes and select the preferable supplier
Finalise details and conclude negotiations
Order
supplier , if required
No
Yes
Selected Supplier completes HSE compliance process
Order
Complete Procurement Exemption
No
Do you have any potential conflict?
Discuss with Line Manager or Sponsor for resolution
Identify procurement need
Yes
No Is it under $50,000 & low or medium risk?
Go to either the $50,000 to $250,000 & low or medium risk procurement process or the over $250,000 or any value high risk procurement process
Estimate cost and risk
Yes
Set up new supplier, if required
Yes
Complete the Conflict of Interest and Confidentiality document
Yes Is the conflict managed?
No Yes
Is the exemption approved?
Is selected supplier approved?
Are you using preferred suppliers?
Do you require a Procurement Exemption?
Is the selected supplier already HSE approved?
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PROCUREMENT UNDER $50,000 & LOW OR MEDIUM RISK STEP BY
STEP GUIDE
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Step Description Guiding Information
1. Procurement
Need
Prior to undertaking any procurement, the need for procurement should be
established. To ensure that the correct goods, services and/or works are
received by the Council, it is important to understand what is required. These
requirements need to be clearly articulated with the suppliers to enable them
to effectively offer goods, services and/or works. Upon completion of the
procurement process these must be recorded in the contract or on the
requisition.
2. Estimate Cost
and Risk
Once the need is clearly defined, the person leading the process needs to
estimate the cost and risk. The cost should be the full cost of the procurement
as defined in the Procurement Policy, and the risk needs to be considered in
line with the Council or Waikato LASS risk thresholds. This will then provide
guidance as to the correct procurement process to follow.
3. Correct threshold Ensure that the total value is below $50,000 and either a low or medium risk,
if it is not then go to either the $50,000 to $250,000 and low or medium risk
step by step guide or the over $250,000 and low or medium risk or any spend
which is high risk step by step guide.
4. Conflict of
Interest and
Confidentiality
Complete your Councils’ Conflicts of Interest and Confidentiality template(s).
If there is no conflict of interest, go to step 6.
5. Conflict of
Interest
resolution
If there is a Conflict of Interest, discuss this with your Line Manager or the
Delegated Authority / Sponsor for this spend and agree a plan for managing
the Conflict.
NB this may include removal of the individual from the procurement process if
it could materially impact the outcome or produce a potential conflict for the
individual or any supplier(s) involved.
6. Preferred
Suppliers
Are you using Preferred Suppliers? (Preferred Suppliers are defined in the
Procurement Policy Glossary of Terms). If you are, go to step 7, if you are not
using a Preferred Suppliers, go to step 9.
7. Using Preferred
Suppliers
Ensure that the Preferred Suppliers are contracted to perform the services.
Undertake the works or supply the goods that you require, if they are not go,
to step 9.
8. Time and
Materials
Supplier rates
The Preferred Supplier rates may already be established if they are then get
the supplier to provide time and materials quotes so that you can assess the
total cost, if the rates are not already provided get the supplier to provide these
as well. Ensure that the supplier is prepared to carry out the work under their
existing contract if they are go to step 18, if they are not, go to step 9.
9. Procurement
Exemption
If you are not going to comply with Procurement Policy or your Council Specific
Information sheet requirements for this level of spend complete a
Procurement Exemption form. If you are complying with Procurement Policy,
go to step 12.
NB: this is designed to support the rationale for going outside of the general
procurement process and where there is legitimacy to this the procurement
exemption provide support to the procurer.
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Step Description Guiding Information
10. Procurement
Exemption
Sign Off
Once the Procurement Exemption is complete it needs to be assessed and
signed off by the authorised person or their delegated alternate, this is detailed
in your Council Specific Information.
11. Exemption
approval
If the procurement exemption is approved, go to step 12.
If the procurement exemption is not approved go back to step 6 and reassess
the suppliers to be engaged.
12. Quoting process For spend under $50,000 it is likely that a quoting process will be utilised,
ensure that you receive the required number of quotes in line with the
Procurement Policy or as specified in the Council Specific Information Sheet.
If you are not going to receive the required number of quotes, go to step 9,
unless you have an approved Procurement Exemption..
Ensure that you have clearly articulated what you require so that all of the
suppliers have adequate information to provide you with a full quote. It is
preferable that the quotes are requested in writing, however if these are
requested verbally ensure that the responses are in writing or that you have
documented these and that they are clearly detailed in the Purchase Order.
13. Receiving quotes Ensure that you have received all of the quotes before you make a final
decision, if you have evaluate, make a decision and, go to step 14.
14. HSE At the time of requesting quotes, it is essential to establish whether the
supplier(s) are HSE approved, if they are, go to step 16.
15. HSE approval
process
If the supplier(s) are not HSE approved outline the requirements to be
approved to the supplier. If required, utilise the HSE team / expert to provide
assistance in explaining the requirements to the supplier(s).
It is acceptable to allow them to quote and undertake the full HSE approval
process if they are successful, but this must be completed prior to the award
of the contract or the raising of the Purchase Order.
If the supplier will not undertake the HSE approval process or does not gain
approval, then go back to step 12 if you have other quotes you can consider
or, step 6 if you have no other quotes to consider.
16. Finalising
Arrangements
Complete the final commercial negotiations. Include any final technical
negotiations in this process and ensure that HSE approval has been attained
and any Insurance Certificates required have been received.
17. Supplier Set Up If the chosen Supplier is a new supplier, after they have met the HSE
requirements of the Council, ensure that they are set up on the system. Once
this is completed or if they are already on the system go to Step 18.
18. Order Award the contract and / or provide a Purchase Order detailing the services
to be provided, the works to be undertaken and/or the goods to be supplied.
NB: No work should commence before the contract is signed or Purchase
Order sent or before the Insurance and HSE requirements are completed.
Inform the unsuccessful suppliers and provide the opportunity for feedback, if
required.
Ensure all Procurement information is correctly recorded and filed.
Council Agenda - 24-04-19 Page 60
Page | 24
PROCUREMENT BETWEEN $50,000 AND $250,000 & LOW OR MEDIUM RISK
Council Agenda - 24-04-19 Page 61
Page | 25
No
No
Yes
Identify procurement need
Yes
No
Yes
Procurement Plan or document approved?
Yes
Yes
No
Yes
No
Yes
No
No
No
Is it between $50,000 $250,000 & low or medium risk?
Go to either the Under $50,000 & low or medium risk procurement process or the over $250,000 or any value high risk procurement process
Do you have any potential conflict?
Agree procurement person to manage project / spend
Complete the Procurement Plan or approved Project Plan or Business Case
Do you require a Procurement Exemption?
Complete Procurement Exemption
Exemption approved?
Estimate cost and risk
Is the conflict resolved?
Discuss with Line Manager or Sponsor for resolution
Complete the Conflicts of Interest and Confidentiality document
Agree procurement methodology and start to complete Procurement Plan. NB: If an acceptable Business Case or Project Plan has or is being completed this can replace the Procurement Plan as long as it complies with the Procurement Policy requirements.
GO TO PROCUREMENT PHASE
Council Agenda - 24-04-19 Page 62
Page | 26
No
Yes
Yes
No
No
Yes
GO TO RECOMMENDATION / AWARD PHASE Complete Approval Documents
Do legal sign off on changes
Engage Procurement / Project Lead / Legal to negotiate
Yes
Yes
No
Yes
No Yes
No
Does supplier propose changes to Council contract?
No
Yes
Yes
Yes
No
No
Implement procurement process in line with procurement plan or approved document
Is there a decision on successful supplier?
Receive bids
Have all bids been received
Re-evaluate
Is selected Supplier already HSE approved?
Selected Supplier completes HSE compliance process
Is selected Supplier approved?
Build RFx or quotation documents and the evaluation method, criteria and matrix
Is evaluation documented?
Review Conflicts of Interest and evaluate using criteria and matrix
Are they a preferred contractor?
Negotiate final commercial terms
Is legal review required
Review contract changes requested
Procurement Phase
Council Agenda - 24-04-19 Page 63
Page | 27
No
Yes
Yes
No
Is all required documentation complete?
Submit for approval
Ensure all approval documentation and evaluation documentation is complete
Is approver satisfied with information and recommendation?
Approve and sign Contract
Set up new supplier, if necessary
Place order or build contract and sign off with supplier
Recommendation /
Award Phase
Council Agenda - 24-04-19 Page 64
Page | 28
Yes
No
Yes
No
Agree framework, contract owners, frequency and agendas with supplier
Is the review framework including HSE agreed with the supplier?
Build Contract / Supplier Management Plan
No
No
Yes
Yes
No
No
Build escalation process with the supplier
Yes Is the escalation process agreed with the supplier?
No
No
Yes
Yes
Yes
Yes
Has an escalation process been established?
Build contract management framework and associated documents and implement
All transition requirements are completed and the Contract Commences
Is there a major transition? Build full transition
plan
Is transition agreed with the supplier?
Does the contract need to be varied?
Negotiate contract variation or escalate if required
Continue contract
Is agreement reached with supplier and approved internally
Contract Management
Phase
Council Agenda - 24-04-19 Page 65
Page | 29
PROCUREMENT BETWEEN $50,000 AND $250,000 & LOW OR MEDIUM
RISK STEP BY STEP GUIDE
Council Agenda - 24-04-19 Page 66
Page | 30
Step Description Guiding Information
1. Procurement
Need
Prior to undertaking any procurement, the need for procurement should be
established. To ensure that the correct goods, services and/or works are
received by the Council, it is important to understand what is required. These
requirements need to be clearly articulated with the suppliers to enable them
to effectively offer goods, services and/or works. Upon completion of the
procurement process these must be recorded in the contract or on the
requisition.
2. Estimate Cost
and Risk
Once the need is clearly defined, the person leading the process needs to
estimate the cost and risk. The cost should be the full cost of the procurement
as defined in the Procurement Policy, and the risk needs to be considered in
line with the Council or Waikato LASS risk thresholds. This will then provide
guidance as to the correct procurement process to follow.
3. Correct
Threshold
Ensure that the total value is between $50,000 and $250,000 and either a low
or medium risk, if it is not then go to either the below $50,000 and low or
medium risk step by step guide or the over $250,000 and low or medium risk
or any spend which is high risk step by step guide.
4. Procurement
Lead
Establish who is going to lead the Procurement process and be responsible
for completing all of the procurement documentation
5. Conflict of
Interest and
Confidentiality
Complete your Councils’ Conflicts of Interest and Confidentiality template(s).
If there is no conflict of interest, go to step 7.
6. Conflict of
Interest
resolution
If there is a Conflict of Interest, discuss this with your Line Manager or the
Delegated Authority / Sponsor for this spend and agree a plan for managing
the Conflict.
NB: this may include removal of the individual from the procurement process
if it could materially impact the outcome or produce a potential conflict for the
individual or any supplier(s) involved.
7. Procurement
Methodology
For spend between $50,000 and $250,000 you may decide to utilise a quoting
process or an RFx process, ensure that you receive the required number of
quotes or bids in line with the Procurement Policy. If you are not going to
receive the required number of quotes or intend to use an invited RFx process
you will need to complete a Procurement Exemption as part of this process.
Ensure that you have clearly articulated what you require so that all of the
suppliers have adequate information to provide you with a full quote. It is
preferable that the quotes are requested in writing, however if these are
requested verbally ensure that the responses are in writing or that you have
these documented and clearly detailed in the Purchase Order.
8. Procurement
Plan
If there is a Business Case or Project Plan that covers all the required
procurement applicable to this level of spend in the Procurement Plan then
this can be substituted for the Procurement Plan (for clarity comply with all
sections relating to Procurement Plan using your alternate document).
Otherwise complete the Procurement Plan sections applicable to this
threshold of spend in the Procurement Plan, to assist a suite of tools have
been developed in the Council Procurement Toolkit.
Council Agenda - 24-04-19 Page 67
Page | 31
Step Description Guiding Information
9. Preferred
Suppliers
Are you using Preferred Suppliers? (Preferred Suppliers are as defined in the
Procurement Policy Glossary of Terms). If you are, go to step 10, if you are
not using a Preferred Suppliers, go to step 12.
10. Using Preferred
Suppliers
Ensure that the Preferred Suppliers are contracted to perform the services.
Undertake the works or supply the goods that you require, if they are not go,
to step 12.
11. Time and
Materials
Supplier rates
The Preferred Supplier rates may already be established if they are the get
the supplier to provide time and materials quotes so that you can assess the
total cost, if the rates are not already provided get the supplier to provide these
as well. Ensure that the supplier is prepared to carry out the work under their
existing contract if they are go to step 31, if they are not, go to step 12.
12. Procurement
Exemption
If you are not going to comply with Procurement Policy or your Council Specific
Information sheet requirements for this level of spend or if you intend to use
an invited tender process complete a Procurement Exemption form. If you are
complying with Procurement Policy, go to step 15.
NB: this is designed to support the rationale for going outside of the general
procurement process and where there is legitimacy to this the procurement
exemption provide support to the procurer.
13. Procurement
Exemption Sign
Off
Once the Procurement Exemption is complete it needs to be assessed and
signed off by the authorised person or their delegated alternate, this is detailed
in your Council Specific Information.
14. Procurement
Exemption
Approval
If the Procurement Exemption is approved, go to step 15.
If the Procurement Exemption is not approved, go back to step 7 and reassess
the suppliers to be engaged.
15. Procurement
Plan Approval
Upon completion of the Procurement Plan this should be approved by the
authorised person detailed in the Council Specific Information or the delegated
person.
16 Build
Procurement
Documents
Depending on whether a quoting or an RFx process is being utilised, build the
appropriate documents to enable you to go to market for either quotes or
formal responses.
Ensure that you build in sufficient negotiation time and flexibility.
This should also include providing a draft contract where appropriate,
requested changes can then be marked up by the supplier as part of their
submission. (NB: It is often good to add this in as a weighted criterion in the
evaluation, especially as this can minimise their requested changes to those
which are material).
17. Build Evaluation
Documents
Prior to going to market it is important to develop and sign off the evaluation
criteria and methodology, what the weightings are and the panel who will be
evaluating the responses (this should include both technical and commercial
reviews).
18. Go To Market Once all the documents have been completed (and if required, signed off).
The Procurement Lead should go to market, this may be a direct process if a
quoting methodology is used, or an invited or an open tender process if an
Council Agenda - 24-04-19 Page 68
Page | 32
Step Description Guiding Information
RFx process is being used. If an open process is being used it is important
that you follow the Council requirements and use the correct system
(TenderLink or GETS).
Ensure that your process provides for an adequate amount of time for the
suppliers to respond. This will ensure that you get the most complete and well
developed responses from the suppliers.
Ensure that you have clearly articulated how you want the documentation
provided (paper, memory stick, electronically), where the information is to be
sent to, the number of copies and any specific splits (such as non-commercial
copies for technical only evaluators).
Ensure that there is also a clear deadline for submissions, regardless of
whether you run a quoting or RFx process so that all suppliers are working to
the same rules and timelines.
19. Quote or RFx
Questions
If any supplier seeks clarification on anything to do with the Procurement
Documents, the question and response should be shared with all other
bidders in writing.
The only exception to this is if the information requested by the supplier is of
a personal nature to their bid / quote, the Procurement Lead should then
decide whether this information should be kept proprietary or shared with all
bidders and inform the supplier prior to answering the question. In the event
the information would be shared the supplier should make a final decision on
whether they want the question answered or whether they want to withdraw
the question (this is likely if they feel it would have a detrimental impact on
their bid / quote).
20. Bid Receipting All bids / quotes should be received by the deadline. Any supplier bid which is
late must be approved by the person with delegated authority. Council should
only extend the deadline if there is a significant reason for allowing an
extension of time (e.g. a significant change or addition to the scope).
No bids / quotes should be opened prior to the deadline, if these are being
received electronically, they should not be reviewed, however they can be
printed ready for the deadline.
All bids or quotes should be registered. If paper copies are provided / printed
these should be initialled and witnessed at the time of opening and recorded
on the bid opening sheet. If electronic copies are to be utilised these should
be recorded on the bid opening sheet.
21. Evaluation The evaluation panel established in step 17, now undertake the evaluation
subject to no further Conflicts of Interest being identified. Ensure that the right
documentation is received by each evaluator (e.g. if they are undertaking a
technical only evaluation do not provide the commercial
documentation).Provide a timeline for the panel to feedback their evaluations.
Upon completion of the individual evaluations the Procurement lead may bring
the evaluation team together to go through the evaluations and collate the
results with the team (this is useful if you want a deep understanding of their
rationale, often used on technically complex or large scale tenders) or collate
the results and feed back to the team (this is less time consuming and often
used on straight forward tender processes.
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Page | 33
Step Description Guiding Information
It is important that the evaluation team are on board with the final decision.
Therefore there should be an opportunity to challenge and review the results
of the evaluation to ensure that the correct decision is being made.
At this point all appropriate due diligence should also be undertaken as part
of the evaluation process.
22. Evaluation Sign
Off
It is important that all of the evaluators sign off on the evaluation, process,
results and final decision prior to proceeding. If this cannot be agreed the
results should be escalated for a final decision.
If there is a requirement for any other sign off of the evaluation prior to
proceeding, this should be undertaken at this stage.
23. Supplier
Selection
Advise the selected supplier of their selection and the intention to enter into
formal negotiations, do not advise the other bidders of being unsuccessful at
this stage as you still need to complete the negotiation process.
24. HSE At the time of requesting quotes, it is essential to establish whether the
supplier(s) are HSE approved, if they are go to step 26.
25. HSE Approval
Process
If the supplier(s) are not HSE approved outline the requirements to be
approved to the supplier. If required, utilise the HSE team / expert to provide
assistance in explaining the requirements to the supplier(s).
It is acceptable to allow them to bid or quote and undertake the full HSE
approval process if they are successful, but this must be completed prior to
the award of the contract or the raising of the Purchase Order.
If the supplier will not undertake the HSE approval process or does not gain
approval, then go back to step 21 if you have other quotes you can consider
or, step 7 if you have no other quotes to consider.
26. Negotiation
Preparation
Identify the negotiating person or team.
Review the tender documentation and establish the technical and commercial
points of negotiation.
Review the contract and identify any changes requested by the supplier.
27. Legal Team
Review
Where there are significant changes to contract ensure the Legal Team
undertake a review of the changes.
If you are unsure whether they are significant ask the Legal Team to advise.
28. Legal Team Sign
Off
If the Legal Team sign off the changes, go to step 29.
If the Legal Team do not sign off the changes negotiate the terms in line with
the Legal Team’s guidance and, go to step 29.
If all aspects of the contractual negotiations are not agreed escalate for
resolution, if resolution is successful, go to step 29. If resolution cannot be
reached, go to step 21 and reconsider the supplier to be selected.
29. Commercial
Negotiation
Complete the final commercial negotiations. Include any final technical
negotiations in this process and ensure that HSE approval has been attained
and any Insurance certificates required have been received.
If all aspects are agreed by the parties, go to step 30.
Council Agenda - 24-04-19 Page 70
Page | 34
Step Description Guiding Information
If all aspects are not agreed escalate for resolution, if resolution is successful,
go to step 30. If resolution cannot be reached, go to step 21, and reconsider
the supplier to be selected.
30. Complete
Recommendation
to Award
Documentation
Ensure all of the Procurement Plan, Evaluation Documentation and all
Approval Documentation is completed
31. Approval process Submit for final approval to the appropriate person within the Council Specific
Information, the Delegate Authority holder or the designated person with the
delegation provided to them.
32. Final Approval If approval is given, go to step 33.
If approval is not given either:
a. if additional approval information is required, go to step 30;
b. if additional evaluation is required, go to step 21;
c. if the process is to be run, go to step 7; or
d. end the process and inform all Suppliers of the decision not
to proceed.
33. Supplier Set Up If the chosen Supplier is a new supplier, after they have met the HSE and
Insurance requirements of the Council, ensure that they are set up on the
system. Once this is completed or if they are already on the system go to Step
34.
34. Order Award the contract and / or provide a Purchase Order detailing the services
to be provided, the works to be undertaken and/or the goods to be supplied.
NB: No work should commence before the contract is signed or Purchase
Order sent or before the Insurance and HSE requirements are completed.
Inform the unsuccessful suppliers and provide the opportunity for feedback, if
required.
Ensure all Procurement information is correctly recorded and filed.
35. Contract /
Supplier
Management
Assess the need for on-going contract management and the level required, if
there is no need for Contract / Supplier Management (e.g. one off purchase),
go to Step 37.
36. Contract /
Supplier
Management
Framework
Agree the required Contract / Supplier Management with the supplier; this
should include all documents, reports, meetings and HSE requirements to be
produced or attended, their frequency and the owner.
37. Escalation
Process
Agree with the supplier an escalation process for both commercial and
technical issues, and go to step 38, or if it has been established in step 35 that
there is no need for Contract / Supplier Management (e.g. one off purchase),
go to Step 39.
38. Contract /
Supplier
Management
Framework
Build the framework based on the agreed documentation in Step 36.
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Page | 35
Step Description Guiding Information
39. Transition Determine whether there is a transition plan required. If not, go to Step 42.
40. Transition plan Create a full transition plan with the supplier; this should take into
consideration timeframes, operational issues / challenges associated with the
change, resources and employee awareness requirements.
41. Transition Undertake transition and complete process.
42. Contract
Commencement
Commence contract on the agreed start date.
43. Contract
Variations
During the life of the contract, if the contract needs to be varied identify the
variation required and negotiate / agree with the supplier.
44. Variation
approval
Seek approval to vary contract in line with Council Specific Information or the
Delegated Authority budget holder.
If agreed write variation to contract, sign off with supplier, get authorised
Council sign off, implement and file variation with the other procurement
documentation.
If not agreed, go to step 45 and continue the contract, or, step 37 to escalate.
45. Continuance Continue Contract in line with agreed Contractual Terms.
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Page | 36
PROCUREMENT OVER $250,000 & LOW OR MEDIUM RISK OR ANY
VALUE WITH HIGH RISK
Council Agenda - 24-04-19 Page 73
Page | 37
No
No
Yes
Identify procurement need
Yes
No
Yes
Procurement Plan or document approved?
Yes
Yes
No
Yes
No
Yes
No
No
No
Is it over $250,000 or any value & high risk? ?
Go to Section either under $50,000 or $50,000 to $250,000 both with low or medium risk
Do you have any potential conflict?
Agree procurement person to manage project / spend
Complete the Procurement Plan or approved Project Plan or Business Case
Do you require a Procurement Exemption?
Complete Procurement Exemption
Exemption approved?
Estimate cost and risk
Is the conflict resolved?
Discuss with Line Manager or Sponsor for resolution
Complete the Conflicts of Interest and Confidentiality document
Agree procurement methodology and start to complete Procurement Plan. NB: If an acceptable Business Case or Project Plan has or is being completed this can replace the Procurement Plan as long as it complies with the Procurement Policy requirements.
GO TO PROCUREMENT PHASE
Agree procurement methodology
Council Agenda - 24-04-19 Page 74
Page | 38
No
No
Yes
Yes
Yes
Yes
Yes
Yes
No
No
No
No
Yes
No
Build RFx Documents
Receive bids
Have all bids been received?
Run competitive procurement process
Sign off RFx Documents
Run Exemption agreed procurement process
Have the bidders raised questions for clarification?
Respond to questions
Have all bidders received response?
Send response
Document response to all bidders
Have more questions been raised?
Complete Approval documents for extension
Procurement & witness open and record all valid RFx responses once all are received
Go To Page 2
Is a Procurement Exemption approved?
Build evaluation method, criteria and matrix before procurement process commences
Does a supplier require an extension?
Extension approved?
Remove supplier from process and inform them of decision
Procurement Phase
Council Agenda - 24-04-19 Page 75
Page | 39
No
Yes
Yes
No
No
Yes
GO TO RECOMMENDATION / AWARD PHASE Complete Approval Documents
Do legal sign off on changes
Engage Procurement / Project Lead / Legal to negotiate
Yes
Yes
No
Yes
No
Yes
No
Can you use a current approved Council contract?
No
Yes
Yes
No
No
Is there a decision on successful supplier?
Page 2 – Continuation of Procurement Phase
Re-evaluate
Is selected Supplier already HSE approved?
Selected Supplier completes HSE compliance process
Is selected Supplier approved?
Is evaluation documented?
Review Conflicts of Interest and evaluate using criteria and matrix
Are they a preferred contractor?
Negotiate final commercial terms
Is legal review required
Review contract changes requested
Council Agenda - 24-04-19 Page 76
Page | 40
No
Yes
Yes
No
Is all required documentation complete?
Submit for approval
Ensure all approval documentation and evaluation documentation is complete
Is approver satisfied with information and recommendation?
Approve and sign Contract
Set up new supplier, if necessary
Place order or build contract and sign off with supplier
Recommendation /
Approval Phase
Council Agenda - 24-04-19 Page 77
Page | 41
Yes
No
Yes
No
Agree framework, contract owners, frequency and agendas with supplier
Is the review framework including HSE agreed with the supplier?
Build Contract / Supplier Management Plan
No
No
Yes
Yes
No
No
Build escalation process with the supplier
Yes Is the escalation process agreed with the supplier?
No
No
Yes
Yes
Yes
Yes
Has an escalation process been established?
Build contract management framework and associated documents and implement
All transition requirements are completed and the Contract Commences
Is there a major transition? Build full transition
plan
Is transition agreed with the supplier?
Does the contract need to be varied?
Negotiate contract variation or escalate if required
Continue contract
Is agreement reached with supplier and approved internally
Contract Management
Phase
Council Agenda - 24-04-19 Page 78
Page | 42
PROCUREMENT OVER $250,000 & LOW OR MEDIUM RISK OR ANY VALUE
WITH HIGH RISK STEP BY STEP GUIDE
Council Agenda - 24-04-19 Page 79
Page | 43
Step Description Guiding Information
1. Procurement
Need
Prior to undertaking any procurement, the need for procurement should be
established. To ensure that the correct goods, services and/or works are
received by the Council, it is important to understand what is required. These
requirements need to be clearly articulated with the suppliers to enable them
to effectively offer goods, services and/or works. Upon completion of the
procurement process these must be recorded in the contract or on the
requisition.
2. Estimate Cost
and Risk
Once the need is clearly defined, the person leading the process needs to
estimate the cost and risk. The cost should be the full cost of the procurement
as defined in the Procurement Policy, and the risk needs to be considered in
line with the Council or Waikato LASS risk thresholds. This will then provide
guidance as to the correct procurement process to follow.
3. Correct
Threshold
Ensure that the total value is over $250,000 and low or medium risk or any
spend which is high risk, if it is not then go to either the below $50,000 and
low or medium risk step by step guide or $50,000 to $250,000 and low or
medium risk step by step guide.
4. Procurement
Lead
Establish who is going to lead the Procurement process and be responsible
for completing all of the procurement documentation
5. Conflict of
Interest and
Confidentiality
Complete your Councils’ Conflicts of Interest and Confidentiality template(s).
If there is no conflict of interest, go to step 7.
6. Conflict of
Interest
Resolution
If there is a Conflict of Interest, discuss this with your Line Manager or the
Delegated Authority / Sponsor for this spend and agree a plan for managing
the Conflict.
NB: this may include removal of the individual from the procurement process
if it could materially impact the outcome or produce a potential conflict for the
individual or any supplier(s) involved.
7. Procurement
Methodology
For spend over $250,000 or high risk you will be running an RFx process
unless otherwise approved via a procurement exemption (NB an invited RFx
process will require approval via an exemption), ensure that you receive the
required number of bids in line with the Procurement Policy. If you are not
going to receive the required number of quotes you will need to complete a
Procurement Exemption as part of this process.
Ensure that you have clearly articulated what you require so that all of the
suppliers have adequate information to provide you with a full submission. Or
provide them with the opportunity to develop a response based on their
experience if you do not have clarity, detail or believe that they are best placed
to provide this.
Also consider whether you want to run a one or two stage process, if you
expect a large amount of responses it may be preferable to run an EOI
process ahead of the RFx to shortlist the tenderers to an acceptable level.
8. Procurement
Plan
If there is a Business Case or Project Plan that covers all the required
procurement applicable to this level of spend in the Procurement Plan then
this can be substituted for the Procurement Plan (for clarity comply with all
sections relating to Procurement Plan using your alternate document).
Council Agenda - 24-04-19 Page 80
Page | 44
Step Description Guiding Information
Otherwise complete the Procurement Plan sections applicable to this
threshold of spend in the Procurement Plan, to assist a suite of tools have
been developed in the Council Procurement Toolkit.
9. Procurement
Exemption
If you are not going to comply with Procurement Policy or your Council Specific
Information sheet requirements for this level of spend or if you intend to use
an invited tender process complete a Procurement Exemption form. If you are
complying with Procurement Policy, go to step 15.
NB: this is designed to support the rationale for going outside of the general
procurement process and where there is legitimacy to this the procurement
exemption provide support to the procurer.
10. Procurement
Exemption Sign
Off
Once the Procurement Exemption is complete it needs to be assessed and
signed off by the authorised person or their delegated alternate, this is detailed
in your Council Specific Information.
11. Procurement
Exemption
Approval
If the Procurement Exemption is approved, go to step 12.
If the Procurement Exemption is not approved, go back to step 7 and reassess
the suppliers to be engaged.
12. Procurement
Plan Approval
Upon completion of the Procurement Plan this should be approved by the
authorised person detailed in the Council Specific Information or the delegated
person.
13. Build
Procurement
Documents
Depending on whether a quoting or an RFx process is being utilised, build the
appropriate documents to enable you to go to market for either quotes or
formal responses.
Ensure that you build in sufficient negotiation time and flexibility.
This should also include providing a draft contract where appropriate,
requested changes can then be marked up by the supplier as part of their
submission. (NB: It is often good to add this in as a weighted criterion in the
evaluation, especially as this can minimise their requested changes to those
which are material).
14. Procurement
Document
Review
Prior to going to market it is advisable to get an independent review of the
documents. This does not need to be an external review, but by ensuring that
somebody with knowledge who has not been involved putting the tender
documents together reviews the documents enables you to have an impartial
view on them and identify any gaps or issues that the supplier may face before
they arise.
15. Build Evaluation
Documents
Prior to going to market it is important to develop and sign off the evaluation
criteria and methodology, what the weightings are and the panel who will be
evaluating the responses (this should include both technical and commercial
reviews).
16 Go To Market Once all the documents have been completed (and if required, signed off).
The Procurement Lead should go to market, this may be a direct process or
an invited tender process if a Procurement Exemption has been approved or
an open tender.
If a Procurement Exemption approved process is being used then follow the
agreed methodology.
Council Agenda - 24-04-19 Page 81
Page | 45
Step Description Guiding Information
If an open process is being used it is important that you follow the Local
Council requirements and use the correct system (TenderLink or GETS).
Ensure that your process provides for an adequate amount of time for the
suppliers to respond. This will ensure that you get the most complete and well
developed responses from the suppliers.
Ensure that you have clearly articulated how you want the documentation
provided (paper, memory stick, electronically), where the information is to be
sent to, the number of copies and any specific splits (such as non-commercial
copies for technical only evaluators).
Ensure that there is also a clear deadline for submissions, regardless of
whether you run a closed or open RFx process so that all suppliers are
working to the same rules and timelines.
17. Advising
Suppliers
In an open tender situation, there may be certain suppliers it would be
beneficial to have bidding. It is acceptable to advise these suppliers that you
have gone to market and where they can find the information should they wish
to bid.
18. EOI or RFx
Questions
If any supplier seeks clarification on anything to do with the Procurement
Documents, the question and response should be shared with all other
bidders in writing.
The only exception to this is if the information requested by the supplier is of
a personal nature to their bid, the Procurement Lead should then decide
whether this information should be kept proprietary or shared with all bidders
and inform the supplier prior to answering the question. In the event the
information would be shared the supplier should make a final decision on
whether they want the question answered or whether they want to withdraw
the question (this is likely if they feel it would have a detrimental impact on
their bid).
19. Bid Receipting All bids / quotes should be received by the deadline. Any supplier bid which is
late must be approved by the person with delegated authority. Council should
only extend the deadline if there is a significant reason for allowing an
extension of time (e.g. a significant change or addition to the scope).
No bids / quotes should be opened prior to the deadline, if these are being
received electronically, they should not be reviewed, however they can be
printed ready for the deadline.
All bids or quotes should be registered. If paper copies are provided / printed
these should be initialled and witnessed at the time of opening and recorded
on the bid opening sheet. If electronic copies are to be utilised these should
be recorded on the bid opening sheet.
20. Evaluation The evaluation panel established in step 15, now undertake the evaluation
subject to no further Conflicts of Interest being identified. Ensure that the right
documentation is received by each evaluator (e.g. if they are undertaking a
technical only evaluation do not provide the commercial
documentation).Provide a timeline for the panel to feedback their evaluations.
Upon completion of the individual evaluations the Procurement lead may bring
the evaluation team together to go through the evaluations and collate the
results with the team (this is useful if you want a deep understanding of their
Council Agenda - 24-04-19 Page 82
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Step Description Guiding Information
rationale, often used on technically complex or large scale tenders) or collate
the results and feed back to the team (this is less time consuming and often
used on straight forward tender processes.
It is important that the evaluation team are on board with the final decision.
Therefore there should be an opportunity to challenge and review the results
of the evaluation to ensure that the correct decision is being made.
At this point all appropriate due diligence should also be undertaken as part
of the evaluation process.
21. Evaluation Sign
Off
It is important that all of the evaluators sign off on the evaluation, process,
results and final decision prior to proceeding. If this cannot be agreed the
results should be escalated for a final decision.
If there is a requirement for any other sign off of the evaluation prior to
proceeding, this should be undertaken at this stage.
22. Supplier
Selection
Advise the selected supplier of their selection and the intention to enter into
formal negotiations, do not advise the other bidders of being unsuccessful at
this stage as you still need to complete the negotiation process.
23. HSE At the time of requesting quotes, it is essential to establish whether the
supplier(s) are HSE approved, if they are go to step 25.
24. HSE Approval
Process
If the supplier(s) are not HSE approved outline the requirements to be
approved to the supplier. If required, utilise the HSE team / expert to provide
assistance in explaining the requirements to the supplier(s).
It is acceptable to allow them to bid and undertake the full HSE approval
process if they are successful, but this must be completed prior to the award
of the contract or the raising of the Purchase Order.
If the supplier will not undertake the HSE approval process or does not gain
approval, then go back to step 20 if you have other quotes you can consider
or, step 7 if you have no other quotes to consider.
25. Negotiation
Preparation
Identify the negotiating person or team.
Review the tender documentation and establish the technical and commercial
points of negotiation.
Review the contract and identify any changes requested by the supplier.
26. Legal Team
review
Where there are significant changes to contract ensure the Legal Team
undertake a review of the changes.
If you are unsure whether they are significant ask the Legal Team to advise.
27. Legal Team Sign
Off
If the Legal Team sign off the changes, go to step 28.
If the Legal Team do not sign off the changes negotiate the terms in line with
the Legal Team’s guidance and, go to step 28.
If all aspects of the contractual negotiations are not agreed escalate for
resolution, if resolution is successful, go to step 28. If resolution cannot be
reached, go to step 20 and reconsider the supplier to be selected.
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Step Description Guiding Information
28. Commercial
Negotiation
Complete the final commercial negotiations. Include any final technical
negotiations in this process and ensure that HSE approval has been attained
and any Insurance Certificates required have been received.
If all aspects are agreed by the parties, go to step 29.
If all aspects are not agreed escalate for resolution, if resolution is successful,
go to step 30. If resolution cannot be reached, go to step 20, and reconsider
the supplier to be selected.
29. Complete
Recommendation
to Award
Documentation
Ensure all of the Procurement Plan, Evaluation Documentation and all
Approval Documentation are completed.
30. Approval process Submit for final approval to the appropriate person within the Council Specific
Information, the Delegate Authority holder or the designated person with the
delegation provided to them.
31. Final Approval If approval is given, go to step 32.
If approval is not given either:
a. if additional approval information is required, go to step 29;
b. if additional evaluation is required, go to step 20;
c. if the process is to be run, go to step7; or
d. end the process and inform all Suppliers of the decision not
to proceed.
32. Supplier Set Up If the chosen Supplier is a new supplier, after they have met the HSE and
Insurance requirements of the Council, ensure that they are set up on the
system. Once this is completed or if they are already on the system go to Step
33.
33. Order Award the contract and / or provide a Purchase Order detailing the services
to be provided, the works to be undertaken and/or the goods to be supplied.
NB: No work should commence before the contract is signed or Purchase
Order sent or before the Insurance and HSE requirements are completed.
Inform the unsuccessful suppliers and provide the opportunity for feedback, if
required.
Ensure all Procurement information is correctly recorded and filed.
34. Contract /
Supplier
Management
Assess the need for on-going contract management and the level required, if
there is no need for Contract / Supplier Management (e.g. one off purchase),
go to Step 40.
35. Contract /
Supplier
Management
Framework
Agree the required Contract / Supplier Management with the supplier; this
should include all documents, reports, meetings and HSE requirements to be
produced or attended, their frequency and the owner.
36. Escalation
Process
Agree with the supplier an escalation process for both commercial and
technical issues, and go to step 37 or if it has been established in step 35 that
there is no need for Contract / Supplier Management (e.g. one off purchase),
go to Step 38.
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Step Description Guiding Information
37. Contract /
Supplier
Management
Framework
Build the framework based on the agreed documentation in Step 35.
38. Transition Determine whether there is a transition plan required. If not, go to Step 41.
39. Transition Plan Create a full transition plan with the supplier; this should take into
consideration timeframes, operational issues / challenges associated with the
change, resources and employee awareness requirements.
40. Transition Undertake transition and complete process.
41. Contract
Commencement
Commence contract on the agreed start date.
42. Contract
Variations
During the life of the contract, if the contract needs to be varied identify the
variation required and negotiate / agree with the supplier.
43. Variation
Approval
Seek approval to vary contract in line with Council Specific Information or the
Delegated Authority budget holder.
If agreed write variation to contract, sign off with supplier, get authorised
Council sign off, implement and file variation with the other procurement
documentation.
If not agreed, go to step 44 and continue the contract, or, step 36 to escalate.
44. Continuance Continue Contract in line with agreed Contractual Terms.
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COUNCIL SPECIFIC INFORMATION
Council Agenda - 24-04-19 Page 86
Page | 50
Council Specific Information
Council Hauraki District Council
Document Owner Finance Manager Date Last Reviewed: <dd/mm/yyy>
Sponsor Group Manager Corporate Services
Location of
document <Document Location or link>
1. Key Information
General
Procurement
Advice /
Information
Finance Manager
Sign off of
Procurement
Documents
<Insert the name of the person(s) / position responsible for signing off Procurement
documentation (Procurement Plans / Exemptions / Strategies) >
NZTA Procurement Transportation Manager
AOG & Regional
Procurement
<Insert the name of the person(s) / position responsible for managing AOG &
Regional procurement activity>
<Insert the name of the person(s) / position to discuss Regional Procurement
opportunities with within Waikato LASS>
AOG & Regional
Contracts
<Insert the current list of AOG and Regional contracts available for use>
Risk Management <Insert the name of the person(s) / position to discuss any risk issues with>
HSE Health & Safety Advisor
Legal <Insert the name of the person(s) / position to discuss contractual and legal issues
with>
Conflicts of Interest
and Confidentiality
Finance Manager
Where to file
Procurement
Contracts /
Information
Under development
Any other
information
<Include any further information pertinent to your specific Council>
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2. Documents
Document Document Description Link or location of the
Document
Delegations Manual This Delegations Manual sets out the
current delegations of the Hauraki
District Council and, when adopted by
Council authorises them
TBA
Inducements
Procedure
Provides guidance to the employee if
they feel they are being subjected to
pressure, inducement or threat from
any source attempting to influence their
decision-making process.
It also provides action and investigation
procedures required if an event occurs.
TBA
Sensitive Expenditure
Policy
Provides guidelines for employees and
elected members who are responsible
for spending public money so that such
spending withstands public scrutiny
TBA
Purchasing Card
Policy
<Provide a brief description of the
document and the requirements. For
example: Conflicts of Interest - prior to
commencement of the procurement
process all persons involved must
complete a Conflicts of Interest form >
TBA
Fraud Policy This policy states affirms Council’s zero
tolerance position on fraud. It sets out
guidelines and procedures for the
prevention, detection and investigation
of suspected fraud or attempted fraud.
TBA
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3. Controls
Person(s) authorised to make
changes to this document
Role Effective date
<Name> <Title> <Date>
Person(s) to be informed of
changes to ensure consistency /
compliance with Regional
Principles, Policy & Framework
Role Effective date
<Name> <Title> <Date>
Person(s) authorised to approve
changes to this document
Role Effective date
<Name> <Title> <Date>
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GLOSSARY OF TERMS
Definition Detail
Approved
Contract Sum
is the sum total, exclusive of GST, of any individual agreement, purchase
requisition, purchase order, disbursement, payment authorisation certificate, or
payment made to a Supplier over the full term of the contract, including rights of
renewal.
Approved
Supplier
is a supplier set up and approved for use in the Councils financial system.
Confidentiality
Agreement
This is the Agreement between the parties and their staff to keep confidential all
information pertaining to the Agreement, except where required to divulge by law.
Conflict of
Interest
There is a conflict of interest where a staff member or an elected member’s duties
or responsibilities to Council could be affected, or perceived to be, by some other
interest or duty that the staff member or an elected member may have.
Contingency An amount allowed for in the Approved Contract Sum to take into account either
foreseen but unquantifiable requirements or unforeseen circumstances. Sum of
money to be spent only as a Variation or site instruction on approval by Council.
Contract as used in this policy shall mean any and all contracts, agreements, memoranda
of understanding (or agreement), letters of agreement, or any other document
which purports to be binding upon Council as generally defined in the Contracts
Enforcement Act 1975 - Including any subsequent extensions, renewals, or
modifications to a Contract.
Council
Specific
Information
Any amendments, additional requirements or policies and procedures that the
individual Councils wish to include. These should only be used to increase the
requirements rather than lowering the minimum requirements (e.g. the
procurement framework may require two quotes to be obtained, the council
specific information may require three as a minimum; however it cannot reduce
the minimum number of quotes to one).
Delegated
Authority
The person with the authority to approve the total Contract commitment over its
entire term. The entire term includes the initial term plus any renewal periods
contemplated at the commencement of the contract. Delegated Authority is
completed by signature or electronic signoff within Councils finance systems. All
non-electronic signatures must be accompanied by the printed name, position of
the Delegated Authority as well as the date of signatory.
Direct
Appointment
is a supplier selection method that involves the negotiation of a contract with a
single Supplier.
Invited RFx Limited numbers of Tenderers’ are invited to submit a tender without public
advertisement of Contract. Where the value of the contract is <$250,000.00,
selected Suppliers who satisfy the required criteria are invited to put forward a
submission. It is recommended a minimum of three (3) Suppliers should be invited.
LGOIMA The Local Government Official Information and Meetings Act, 1987 to which the
Council must adhere.
NZTA New Zealand Transport Authority
P-Card Purchasing Card. A Council credit card used by certain positions as required.
Purchases for goods and services which are approved by Financial Delegated
Authority.
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Preferred
Supplier
are suppliers that have been put in place with a formal Contract for the supply of
a category of goods, services or works for a period of time. This is not a guarantee
of work to the supplier.
Procurement
Exemption
is the exemption form required to be signed authorising the continuation with the
procurement activity outside of the Procurement Policy.
Procurement
Plan
Is the detailed plan outlining how the procurement activity will be carried out.
Procurement
Policy
is the Policy which provides guidance on how procurement activity is conducted.
Purchase
Order
Legal document for purchase of goods, services or works issued from the Council
following approval by the relevant Delegated Financial Authority. Terms and
conditions are governed by the Councils Purchase Order terms and conditions.
Public RFx A publically advertised RFx (Request for Quotation, Request for Expression of
Interest, Request for Proposal or Request for Tender) that any party may respond
to.
RFx A generic abbreviation that covers all ‘Request for’ “processes” (Request for
Quotation, Request for Expression of Interest, Request for Proposal or Request
for Tender). Specifies what the Council wishes to purchase, the terms and
conditions plus instructions on how to bid and respond.
Supplier The person or organisation responsible for the supply of goods, services or works
as required to Council. Also known as vendor, contractor, consultant or provider.
Syndicated
Procurement
Contract
Syndicated procurement is when a Government agency or Local Body contracts
with a Supplier on behalf of other entities. This can lead to economy of scale
advantages for Council. Council is part of a number of syndicated arrangements.
Variation written changes to the scope, price or term of a Contract.
Council Agenda - 24-04-19 Page 91
Page 1 of 10
Information Report
To: Council
From: Group Manager Corporate Services
Date: Wednesday, 17 April 2019
File reference: Document: 2563802
Portfolio holder: Deputy Mayor Toby Adams
Meeting date: Wednesday, 24 April 2019
Subject: Financial Report for the Period to 31 March 2019.
Recommendation:
THAT the report be received.
1 Summary
Operating For the nine months to the end of March, Council is $65,000 or 0.3% under budget on its
expenditure, and $277,000 or 7.3% above budget on its revenue. This gives a $342,000 or
2.1% favourable variance.
Rates and Water Rates Arrears
The following two graphs show the overdue property rates and water rates for the
2017/18 and 2018/19 financial years. Note there may be some distortion within years
on the water rates arrears graph as ‘major users’ transitioned to bi-monthly over the
first three to four months of the 2017/18 financial year.
Council Agenda - 24-04-19 Page 92
Page 2 of 10
Duncan Peddie GROUP MANAGER CORPORATE SERVICES
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
July August September October November December January February March April May June
Water Rates Arrears by Month
2018/19 2017/18
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
Property Rates Arrears by Month
2018/19 2017/18
Council Agenda - 24-04-19 Page 93
Page 3 of 10
Groups of activities overview - Financial MeasuresKey Indicators for the 9 months ending 31 March 2019
Operating Revenue (excluding Rates & Roading capital funding from NZTA) Operating Expenditure Capital Expenditure
-Favourable YTD $277,361 Favourable YTD $65,000 Favourable YTD $4,638,000
YTD budget $3,792,000 YTD budget $20,070,000 YTD Forecast $11,114,000Full year budget $5,084,900 Full year budget $37,271,000 Full year budget (Original) $10,812,000
Full year forecast $5,362,261 Full year forecast $37,206,000 Full year forecast $14,819,000
$4,069,361 $20,005,000 $6,476,000
0.0 2.0 4.0 6.0 8.0 10.0
Leadership
Networks
Community Services
Community Development
Regulatory
Millions
Operating Expenditure
YTD Actual YTD Budget
Revenue
Regulatory income is ahead of budget as a result of large consent applications received.
Expenditure
Processing the large consent applications have meant that Regulatory costs exceed the budget. Additional revenue does offset this.
Favourable variances is shown in Networks is due largely to the favourable variances across a range of components within the Water and Wastewater activities.
Leadership favourable variance is attributed largely due to Liaison Officer not being appointed until February 2019. In addition no meetings of the Mana Whenua Forum have occurred so far this year.
Capital Expenditure
Capital expenditure is tracking below the revised capital works programme approved by Council in December 2018.
As signalled previously this will lead to a number of projects previously anticipated to be delivered prior to 30 June 2019 being completed in the next financial year.
The Project Management Office is continually reviewing the practicality of achieving the approved programme.
0.0 2.0 4.0 6.0 8.0 10.0
Leadership
Regulatory
Community Development
Community Services
Networks
Millions
Capital Expenditure
YTD Actuals YTD Budget (adjusted)
Council Agenda - 24-04-19 Page 94
Page 4 of 10
Council repaid the $11million LGFA debt that matured in March 2019. Council remains fully compliant to all Policy parameters. However by 30 June 2019 Council will become non-compliant in the three to 5 year
interest rate fixed/floating profile sublimit. In order to manage the non-compliance, staff intend to enter into a forward starting interest rate
swap for a notional value of $2million with a start date of 15 July 2020 and a maturity date of 15 April 2024. KPI’s Status Comments or risks
Total net external debt will not exceed
175% of total revenue in any year.
Net interest expense is ≤ 15% of rates
revenue in any year.
Net interest expense is ≤ 10% of total
revenue in any year.
Net external debt per rating unit is ≤
$5,000 in any year.
Fixed/floating interest rates Profile
Loan Maturity Profile
parameters for the fixed/floating interest
rates and Profile
Hauraki District Council Financial MeasuresKey Indicators for the 9 months ending 31 March 2019
Borrowings Cash and cash equivalents Net borrowings Available Credit Facilities
External debt net of cash and cash equivalents
- =
Full year budget $46.63m Full year budget $.58m Full year budget $46.04m Full year budget $7.0m
Full year forecast $46.63m Full year forecast $.58m Full year forecast $46.04m Full year forecast $7.0m
$32.84m $7.00m$38.00m $5.16m
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Page 5 of 10
Hauraki District Council Financial MeasuresKey Indicators - For the period ending 31 March 2019
Forecast capital expenditure is tracking below the revised capital works programme approved by Council in December 2018.
The latest forecast indicates a capital works programme of around $13m for the year. Staff will continue to monitor progress and will keep you updated
over the coming months.
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19
Capital Expenditure Forecast - 31 March 2019
Actual Spend LTP Budget
Revised budget - Sept 2018 (and subsequent Council decisions) Revised budget - Dec 2018 (and subsequent Council decisions)
Forecast - March 2019
Council Agenda - 24-04-19 Page 96
Page 6 of 10
Regulatory Financial MeasuresKey Indicators for the 9 months ending 31 March 2019
Operating Revenue (excluding Rates) Operating Expenditure Capital Expenditure
-Favourable YTD $290,000 Unfavourable YTD $(150,000) Favourable YTD $0
YTD budget $1,359,000 YTD budget $2,938,000 YTD Forecast $0Full year budget $1,719,000 Full year budget $3,967,000 Full year budget (Original) $0
Full year forecast $2,009,000 Full year forecast $4,117,000 Full year forecast $0
$1,649,000 $3,088,000 $0
0 200 400 600 800 1,000 1,200
Animal Control
Building Services
Community Protection
RMA Implementation
Thousands
Operating Expenditure
YTD Actual YTD Budget
Operating Revenue (Excluding Rates)
Higher income due to increased consents.
Expenditure
Higher costs due to increased planning consultant costs with increased resource consents. This is offset by higher income.
Budget for Abandoned Mine and Ground Settlement sub activities unlikely to be spent.
Capital Expenditure
No capital spend or budget for this group of activities.
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Page 7 of 10
Community Development Financial MeasuresKey Indicators for the 9 months ending 31 March 2019
Operating Revenue (excluding Rates) Operating Expenditure Capital Expenditure
-Favourable YTD $3,000 Unfavourable YTD $(42,000) Favourable YTD $0
YTD budget $0 YTD budget $1,486,000 YTD Forecast $0Full year budget $0 Full year budget $2,562,000 Full year budget (Original) $0
Full year forecast $3,000 Full year forecast $2,604,000 Full year forecast $0
$3,000 $1,528,000 $0
100 200 300 400 500 600 700 800 900
Community Growth
Community Initiatives
Thousands
Operating Expenditure
YTD Actual YTD Budget
Operating Revenue (Excluding Rates)
Expenditure
Grants and Donations more than budget as a result of Paeroa Promotions Trust loan reclassified as a grant per council decision of 31 January 2019.
Capital Expenditure
No capital spend or budget for this group of activities.
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Page 8 of 10
Community Services Financial MeasuresKey Indicators for the 9 months ending 31 March 2019
Operating Revenue (excluding Rates) Operating Expenditure Capital Expenditure
-Unfavourable YTD $(26,000) Favourable YTD $0 Favourable YTD $1,144,000
YTD budget $504,000 YTD budget $3,941,000 YTD Forecast $1,644,000Full year budget $672,000 Full year budget $6,373,000 Full year budget (Original) $2,750,000
Full year forecast $646,000 Full year forecast $6,373,000 Full year forecast $2,192,000
$478,000 $3,941,000 $500,000
0 500 1,000 1,500 2,000 2,500 3,000 3,500
Community Facilities
Recreation
Thousands
Operating Expenditure
YTD Actual YTD Budget
Operating Revenue (Excluding Rates)
Library Revenue continues to lag behind budget. Staff are presenting a report to CS&D Committee in April on possible options that might address this.
Expenditure
RecreationRefuse collection costs exceed budget with $128k. A report on the Manco 'Big Belly" solar compacting bin was presented to the Community Services and Development Committee on the 17th of October (Document No. 2471685). Partially offsetting the unfavourable variances is a number of favourable variances across other activities under this group. The bulk of the saving under Swimming pools ($98k).
Council also approved $34k carry over from 17/18 for costs related to the Ngatea Library Hub project.
Capital Expenditure
Capital expenditure is tracking below the revised capital works programme approved by Council in December.It is likely that the construction of the Ngatea Main Street Renewal will not take place until the new financial year as are the additional toilet projects for Kaiaua and Paeroa Domain.0 200 400 600 800 1,000 1,200
Community Facilities
Recreation
Thousands
Capital Expenditure
YTD Actuals YTD Budget (adjusted)
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Networks Financial MeasuresKey Indicators for the 9 months ending 31 March 2019
Operating Revenue (excluding Rates & Roading capital funding from NZTA) Operating Expenditure Capital Expenditure
-Favourable YTD $9,000 Favourable YTD $170,000 Favourable YTD $3,496,000
YTD budget $1,929,000 YTD budget $9,411,000 YTD Forecast $9,471,000Full year budget $2,694,000 Full year budget $21,125,000 Full year budget (Original) $8,063,000
Full year forecast $2,703,000 Full year forecast $20,955,000 Full year forecast $12,628,000
$1,938,000 $9,241,000 $5,975,000
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0
Land Drainage
Roading
Solid Waste
Stormwater
Wastewater
Water
Millions
Operating Expenditure
YTD Actuals YTD Budget
Operating Revenue (Excluding Rates)
Expenditure
The Water and wastewater activities are showing favourable variances year to date. This is in part due to changes implemented in the way we deliver the treatment aspects of these activities as well as a resource shortage.
An increase in water treatment and pumping costs reflects high temperatures and increased water usage. Despite this the Activity maintains a positive variance.
Within the Solid Waste Activity we have seen a drop in kerbside collection expenditure as collections have been taken to RTS before landfill. This is reflected with increased costs in that aspect of the Activity. We have also seen increased volumes through the RTS's. An external audit into the RTS's has been undertaken all of which leaves us with an unfavourable variance in this activity.
Land Drainage saw the highest rainfall in Oct, Nov & Dec since 1974, resulting in pumps running more than anticipated.
Capital ExpenditureOverall capital expenditure is tracking below the revised capital works programme approved by Council in December 2018.
As previously signalled this will lead to a number of projects previously anticipated to be delivered prior to 30 June 2019 being completed in the next financial year.
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0
Land Drainage
Roading
Solid Waste
Stormwater
Wastewater
Water
Millions
Capital Expenditure
YTD Actuals
Council Agenda - 24-04-19 Page 100
Page 10 of 10
Leadership Financial MeasuresKey Indicators for the 9 months ending 31 March 2019
Operating Revenue (excluding Rates) Operating Expenditure Capital Expenditure
-Favourable YTD $1,000 Favourable YTD $87,000 Favourable YTD $0
YTD budget $0 YTD budget $2,294,000 YTD Forecast $0Full year budget $0 Full year budget $3,244,000 Full year budget (Original) $0
Full year forecast $1,000 Full year forecast $3,157,000 Full year forecast $0
$1,000 $2,207,000 $0
0 500 1,000 1,500 2,000
Democracy
Iwi Liaison
Policy Development
Thousands
Operating Expenditure
YTD Actuals YTD Budget
Operating Revenue (Excluding Rates)
Expenditure
Iwi Liaison Officer not being appointed until February 2019 and the Mana Whenua Forum meetings that have not yet taken place this year.
Capital Expenditure
No capital spend or budget for this group of activities
Council Agenda - 24-04-19 Page 101
Page 1 of 2
Decision Report
To: Council
From: Finance Manager
Date: Wednesday, 17 April 2019
File reference: Document: 2563719 Appendix A: 2563716
Portfolio holder: Toby Adams
Meeting date: Wednesday, 24 April 2019
Subject: Sensitive Expenditure Policy Review
Recommendation:
THAT the report be received, and THAT The Council adopts the revised Sensitive Expenditure Policy with the effective date of
1 May 2019.
1 Purpose
To have the revised Sensitive Expenditure Policy adopted by Council.
2 Background
At the Interim Audit for the 2018 Annual Report Audit NZ highlighted that Councils Sensitive
Expenditure Policy was due for review. Over the past few months’ staff have reviewed a number of Sensitive Expenditure policies from
our fellow Councils along with our own existing policy. We have synthesised our Sensitive
Expenditure Policies for Staff and Elected members together into one document. The proposed
Sensitive Expenditure Policy is attached in Appendix A The proposed Policy was considered by Council’s Audit and Risk Committee on the 16th of April
2019 where they passed the following recommendations: THAT the report be received, and THAT the Committee endorses the adoption of the revised Sensitive Expenditure Policy
with the following amendments.
Council Agenda - 24-04-19 Page 102
Page 2 of 2
o The clothing section is amended to record that Council will subsidise elected
members uniform. o Under the section of the policy covering Koha a requirement is inserted to report
annually to the Audit and Risk Committee on Koha paid by Council. THAT the Committee instructs staff to place the proposed Sensitive Expenditure Policy
with amendments on the Council agenda for 24th April 2019 for Councils consideration.
3 Issue and options
Two Options are put forward for Councils consideration: A. The Council, following deliberations, adopt the proposed Sensitive expenditure Policy as
attached to this paper. B. The Council, following deliberations, instruct the staff to undertake further work in
relation to the proposed Sensitive Expenditure Policy and bring it back to Council at a
future date for consideration. It is proposed that the revised Policy is effective from the 1st of May 2019.
4 Recommendation
That Council receive the Report, and That Council adopt the proposed Sensitive Expenditure Policy as attached to this report
effective from 1 May 2019. Steve Baker Finance Manager
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1
PROPOSED SENSITIVE EXPENDITURE POLICY
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Attachment A
1 Sensitive Expenditure Policy – (MaqiQ ID TBA)
OBJECTIVE
Hauraki District Council will be mindful of its responsibilities in having good controls in place and ensuring its employees make good judgement in terms of sensitive expenditure.
PURPOSE
The purpose of this policy is to provide Council employees and elected members with a clear framework for managing sensitive expenditure. The most fundamental fact applicable to all expenditure by Council is that money used is ratepayers’ funds. Consequently, sensitive expenditure needs
to be consistent with the standards of probity and prudence that are expected of a public entity and be able to withstand elected members and public scrutiny.
DEFINITIONS
“Sensitive Expenditure” is any expenditure by the Council that provides, has the potential to provide, or has the perceived potential to provide a private benefit to an individual employee that is additional to the business benefit to the Council of the expenditure. It also includes expenditure by the Council that could be considered unusual given the Council’s purposes and/or functions.
“Elected Member” means all elected members of the Hauraki District Council including the Mayor and members of Council.
PROCEDURES
The most fundamental fact applicable to all expenditure by the Council is that the money used is public funds. It is not the property of employees and elected members to do with as they please. Consequently, expenditure should:
Be consistent with the standards of probity and financial prudence that are expected of a public entity; and
Be able to withstand public scrutiny. The above standards apply the principles to ensure that expenditure decisions:
Have a justifiable business purpose; Preserve impartiality; Are made with integrity; Are moderate and conservative, having regard to the circumstances; Are made transparently; and Are appropriate in all respects.
Approval
Approval of sensitive expenditure must be:
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2 Sensitive Expenditure Policy – (MaqiQ ID TBA)
1. Given only when the person approving the expenditure is satisfied that a
justified business purpose and other principles have been adequately met; 2. Given before the expenditure is incurred wherever practical; 3. Made only when budgetary provisions and delegated authority exist; and 4. Given by the person senior to the person who will benefit or who might be
perceived to benefit from the sensitive expenditure wherever possible (the “one-up” principle). In all cases the authoriser is not partaking in the perceived sensitive expenditure. If any doubt exists the next manager up should be requested to review the expenditure and authorise if appropriate.
5. For clarity the Chief Executive’s sensitive expenditure will be signed off by the Mayor
6. All expenditure claimed by elected members must be in accordance with the Remuneration Authority approved expenses rules current at the time the expenditure is incurred.
Approval of expenditure claims for elected members must be approved as detailed below:
Expenditure by Councillors: Approved by His worship the Mayor
Expenditure by His Worship
the Mayor:
Approved by the Deputy Mayor and one of the Ward Chairs
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3 Sensitive Expenditure Policy – (MaqiQ ID TBA)
Claims
Claims relating to sensitive expenditure need to:
1. Clearly state the business purpose of the expenditure. In instances where the business purpose is not clear from the supplier documentation supporting the claim, a written statement of the purpose should be included as part of the claim;
2. Claims should be annotated – a note by way of explanation in relation to the claim. For example paying for dinner. Who was the dinner with and why.
3. Be accompanied by adequate original (not photocopied) supporting documentation such as tax invoices or other validating documentation (credit card statements do not constitute adequate documentation for reimbursement);
4. Document the date, amount, description, and purpose of minor expenditure when receipts are unavailable (e.g. from vending machines); and
5. Be submitted promptly after the expenditure is incurred. Purchasing Process
Refer to the Procurement Policy for specific guidelines on the process for purchasing, approvals, monitoring and reporting which all Council expenditure – including sensitive expenditure – is governed by. Refer to the Delegations Manual for limits of authority for specific positions. Guiding Principles for Sensitive Expenditure
The guide-lines attached as Schedule A are to be used in the determination of sensitive expenditure. These guidelines are based on the Good Practice Guide ‘Controlling Sensitive Expenditure: Guidelines for Public Entities’ produced by the
Controller and Auditor-General in 2007. Note that where figures are quoted, these are GST inclusive amounts. Additional guidance can be found in the Council reference guide – Sensitive Expenditure: Frequently Asked Questions (FAQ’s) Discretion
The Chief Executive has sole discretion to change, modify, or approve a deviation from these guidelines should he deem it necessary and justified. For further information or clarification on any matters, refer to the website of the Controller and Auditor-General (www.oag.govt.nz) Date Adopted: DDMMYY Last Modified: 25 March 2015 Approved By: Council Resolution DDMMYY Doc # Replaces M2383276
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1 Sensitive Expenditure Guidelines
SENSITIVE EXPENDITURE GUIDE-LINES
ELECTED MEMBERS’ EXPENSES AND ALLOWANCES
It is expected that members of the Hauraki District Council may, from time to time, incur expenses associated with their responsibility as members of the Council. Subject to the general principles outlined in this policy and guide-lines, no Councillor should be out of pocket in the course of performing their duty.
Actual and reasonable expenses incurred in connection with the following will entitle the member to be reimbursed subject to these sensitive expenditure guide-lines:
Attendance at properly constituted meetings of the Council; Attendance at conferences, courses, seminars and similar events as authorised by the
Council; Attendance at other meetings, events and functions when attending as an authorised
representative of the Council. The Council, or alternatively the Mayor (or in his/her absence the Deputy Mayor), is authorised to approve attendance for elected members at conferences, courses, seminars and training programmes within approved budgets and in accordance with the representatives’ approved
terms of reference. The Group Manager, Community Services is responsible for certifying reimbursement claims for elected members before they are authorised.
CREDIT CARDS & P-CARDS
Using these cards are not a type of sensitive expenditure but is a common method for payment for such expenditure. Guidelines for use of these cards are covered in Council P-Card Policy.
TRAVEL AND ACCOMMODATION EXPENDITURE
Employees and elected members may need to incur travel and accommodation costs while conducting Council’s business around New Zealand or overseas. Travel and accommodation
expenditure should be economical and efficient, having regard to purpose, distance, time, urgency, personal health, security, and safety considerations. Travel, like any other good or service, must be purchased in line with the Procurement Policy which outlines delegations for the purchase of goods by Authorised Purchasing Officers, conditions on expenditure and purchasing procedures. An employee may stay away for a weekend before or after travelling on Council business as long as any additional costs are met by the employee. Annual leave must be applied for if the employee wishes to stay away on a normal working day.
Schedule A
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All requests for reimbursement of expenses must be made using the Expense Claim Form (with receipts attached) within one month following travel. Where funds for approved expenses to be incurred are required in advance of the travel, this can be direct debited into the employee’s bank account. Any refund and receipts for expenditure is to be returned to
Corporate Services at the end of the travel. Air Travel - General To every extent practicable, air travel is to be booked well ahead of the travel date so the expenditure is as cost-effective as reasonably possible.
Air travel is to be booked through the appropriate administration support who are to ensure competitive prices are obtained.
Discounted economy or economy class (or a discount airline if applicable) is to be the first choice for journeys where the uninterrupted flight time is 5 hours or less. Council will generally only accept an upgrade to business class/premium economy if there is:
a) no additional cost to Council; or b) the cost was covered by the person travelling; or c) where the distance or hours travelled, work schedule on arrival, or personal health, safety or security reasons make business class/premium economy reasonable.
Under no circumstances will a person be authorised to travel first class.
The cost of stopovers will only be reimbursed where they are preapproved and have a clear business purpose.
Council payment for membership of airline travel clubs e.g. Koru Club requires the express approval of the Chief Executive. Membership must be supported by a clear business purpose and be reviewed every two years.
Council will provide Koro Club membership for the Mayor, Deputy Mayor and Chief Executive.
Loyalty rewards from air points (or other loyalty schemes) accruing to employees carrying out their official duties may remain with the relevant employee provided the use of airlines supplying air points does not result in Council incurring additional costs. International Travel Any proposed international travel on Council business, or for training or personal development of the Chief Executive at the cost of Council, must receive prior approval from Council including details of estimated cost and the expected benefit to the organisation and its ratepayers.
International travel undertaken for the purposes of Council business, training or personal development of employees (other than the Chief Executive), must be approved by the Chief Executive with the overall cost approved through the annual or long-term plan process.
Meals and Accommodation Meals: Where meals are not provided as part of the travel or training package, then actual and reasonable costs will be reimbursed through the usual expense reimbursement process. Employees required to be away overnight may claim reimbursement for breakfast, lunch
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and/or dinner providing expenses are reasonable and authorisation is given by the Supervisor. Separate meal expenses may not be claimed if a meal is provided as part of a package already paid for by the Council. Council will not pay for meals for accompanying partners. No meal expenses may be claimed where they are served within private accommodation – however accommodation allowances may be claimed (see ‘Accommodation’ below). Refreshments: It is acceptable for staff to have one glass of beer or wine with a meal that is reimbursed. Other alcohol purchases will not be reimbursed except at the discretion of the Chief Executive.. Reimbursement of mini-bar expenses is prohibited. Accommodation: If the employee is required to be away overnight, accommodation costs will be reimbursed providing they are reasonable and have the prior approval of the Supervisor. Where accommodation can be booked at the venue of the conference, course or event, this should be done to maximise special deals. In other circumstances, a hotel or motel offering suitable facilities at a reasonable price should be booked close to the venue. Where an employee chooses to stay in private accommodation when travelling on Council business they may claim $100 for each night they are required to be away. Motor Vehicles A Council vehicle will normally be supplied, but if the employee opts to use their own vehicle because it is more practical and cost-effective, and has permission from the Group Manager, the mileage claim rates will apply for use of a private motor vehicle for Council business. Return travel from the Council office or employee’s home (whichever is the starting point) to
the destination will be reimbursed. Where travel is overnight, it may be preferable for the employee to take their own vehicle, but this is to be discussed with the respective manager prior to travel. Rental Cars: If a rental car is required, it must be economical and the size must be relevant to the requirements (number of people, distance to be travelled). Private use of a rental car is not permitted unless authorised by the Chief Executive or Group Manager – the employee will be expected to reimburse the Council for any additional costs for such private use. Taxis: Taxi or uber fares will be reimbursed providing these are necessary and cost-effective in terms of other options. Where taxis are necessary, they should be shared with other employees or course / event attendees where possible. Use of taxis is typically acceptable for travel between the airport and hotel and hotel to conference, course or event venue.
Other Expenses: Other necessary expenses including car park fees will be reimbursed subject to usual documentation requirements. Any fines (parking, traffic offences etc.) incurred while using a Council vehicle or rental car are to be paid by the driver, not the Council. Other Incidental Travel Costs
E-mail / Internet Access: Approval is given for all business-related access.
Telephone Calls: Where an employee is required to be away from home over night on Council business, they will be reimbursed for one toll call of up to 15 minutes per day to contact home. Where an employee has a Council mobile phone, this should be used in preference to the hotel phone which is likely to incur additional connection charges. Tipping: Council will not meet the costs of tipping by employees while they are on Council business in New Zealand. The Council will meet the costs of tipping during international travel only in places where tipping is local practice at rates published in reputable travel publications.
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Spouse Travel: As a general principle, the travel costs of accompanying spouses, partners or other family members are not paid by the Council. In the rare circumstance that involvement of a spouse directly contributes to a clear business purpose, the cost or partial cost of travel may be authorised at the discretion of the Chief Executive or, in the case of the Chief Executive, by the Mayor. The costs associated with the partner of the mayor attending the Local Government New Zealand Annual Conference shall be met by Council. Reporting on Travel Expenditure A report is to be presented to the Executive Leadership Team (ELT) for the 6 months ending June and December each year detailing the staff member who travelled, reason for travel, costs involved, and who approved the travel. Any exceptions to this policy will be noted with action taken.
ENTERTAINMENT AND HOSPITALITY
Council expenditure on entertainment and hospitality may be required from time to time for the purposes of:
Building relationships Representing the organisation Reciprocation of hospitality Recognising significant business achievement
Entertainment and hospitality covers a range of items from the provision of tea, coffee and biscuits, to catering such as meals and alcohol. It also includes non-catering related items such as Council-funded entry to a sporting or cultural event. Expenditure on entertainment and hospitality must be moderate and appropriate for the circumstances, and must be subject to the usual procurement processes and purchasing officer delegated authority limits, budgets etc. The Organisational Belonging Policy has guidelines for this type of expenditure. Specific events
The Social Club will organise a Christmas Function each year that will be paid for out of the Human Resources budget.
In additional, Departments may organise and provide departmental team building activities from time to time in support of fostering organisational belonging. Such activities may include but are not limited to team Christmas lunches, team training, catered team meetings etc. Provision for such activities or events must be made by the Group Manager using a transparent approach during the annual budget process. Expenditure on these activities must be pre-approved by Group Managers with guidance given on appropriate limits for alcohol consumption. Evidence of pre-approval should be attached to the Expense Reimbursement Claim.
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ELT/Elected Members Christmas function.
The cost of partners of elected members and ELT members attending this event will be met by Council. It is a token of appreciation of the contribution that the partners of our elected members and members of the ELT make while their partners are away from home on Council business.
GOODS AND SERVICES EXPENDITURE
Sale of Surplus Assets to Employees From time to time the Council will dispose of assets that have become obsolete, worn out, or surplus to requirements. Assets identified as surplus – including furniture and fittings, computers, mobile phones, plant and other equipment - may be sold internally to employees or externally through other avenues by tender or other fair process as determined and authorised by the relevant Group Manager. The sale of assets identified as surplus over the value of $1,000 must be approved by the Chief Executive. In all instances, the asset must be valued and every endeavour must be made to recognise the value so that maximum income can be derived for the Council. Where offered internally to employees, all employees will be given the opportunity to tender or other fair process for the surplus items. The normal rules of a tender will apply and surplus assets will be sold to the highest bidder. Provided the assets are deemed surplus - computers, mobile phones and the like may be sold directly to the resigning/retiring employee provided it is authorised by the relevant group manager. Surplus Vehicles: Surplus vehicles are to be traded in or sold at auction, whichever is likely to generate the most revenue. Employees are welcome to bid for Council vehicles at auction but the private sale of vehicles to employees is prohibited unless authorised by Council.
Loyalty Reward Scheme Benefits Loyalty reward schemes are those where benefits accumulate for a customer who continues to use a particular supplier for the purchase of goods or services. Or there may be schemes where free prizes or rewards are given for the purchase of particular products. Employees making procurement decisions are not permitted to personally receive any loyalty rewards as a result of those decisions. Where loyalty rewards are given to an employee, the reward becomes the property of the Council and is to be used by the Council for business-related purposes. If the item is surplus to Council requirements, the Chief Executive will determine the appropriate way to dispose of the reward for the benefit of the Council. The exception to this are airpoint schemes. Airpoints accrue to the traveller and are not able to be transferred to the Council. Airpoints are rarely accumulated as part of Council travel and therefore may remain with the staff member. Private Use of Council Assets Any physical item owned, leased or borrowed by the Council is considered an asset, e.g. photocopiers, telephones, cellphones, internet access, stationery etc. Limited private use for
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personal purposes may be permitted in some circumstances. Refer to the Hauraki District Council Employee Resource Handbook for guidelines on the private use of Council assets. Council Use of Private Assets Sometimes it may be logical and cost-effective for the Council to reimburse an employee for the use of private assets such as private cell-phones, private motor vehicles, private computers, private tools. While this is not common practice at Hauraki District Council, an arrangement may be authorised by the Chief Executive subject to a justified business purpose. All such arrangements will be recorded in writing and will be subject to the usual financial controls – employees are prohibited from approving or administering payments to themselves for the Council’s use of their private assets. Private Use of Council Suppliers From time to time employees may qualify for discount-priced goods through a Council supplier that they would not otherwise be able to access. The Council expects that the availability of such privileges will not impact on an employee’s decision in respect of their choice of suppliers. Private use of suppliers must not be taken into account when choosing suppliers. When purchasing goods for private use through a Council supplier, employees must pay the full amount at the time of purchase. The selection of the suppliers must be in the best interests of the Council at all times. Refer to the Procurement Policy. The private use of Council fuel cards is prohibited.
STAFF SUPPORT AND WELFARE EXPENDITURE
The Council provides for staff support and welfare in a range of ways in an effort to benefit both the Council and the employee. The following guidelines apply in respect of staff support and welfare expenditure: Clothing The Council subsidises a staff and elected members uniform and provides health and safety clothing and equipment. Refer to the Council Uniform Policy. Care of Dependants The Council does not meet the costs for the care of employees’ dependants. Social Club Activities Hauraki District Council has an operative Social Club which organises events from time to time. The Council makes a monetary contribution to the Social Club on an annual basis. Refer to the Organisational Belonging Policy.
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Farewells and Retirements Any expenditure on farewells and retirements is to be pre-approved by the Chief Executive or Group Manager, and is to be moderate and conservative. It typically follows that:
Retirement functions are arranged at the discretion of the Chief Executive, with the level of Council contribution dependant on the number of years’ service completed by the employee. A gift may be purchased by the Council, again dependant on the number of years the employee has worked for the Council.
Farewell functions for employees are generally arranged by the employee leaving with assistance from their workmates, Supervisor and Group Manager. Functions are typically funded by the employee leaving. However for long serving employees the Council may, at the Chief Executive’s discretion, choose to contribute to both the
farewell and gift. Sponsorship of Employees The Council provides for the sponsorship of employees taking part in sporting or cultural events. Refer to the Organisational Belonging Policy. OTHER TYPES OF EXPENDITURE Corporate Boxes The Council prohibits expenditure on corporate boxes. Donations Donations are not typically allowed. Any requests for a Council donation must be authorised by the Chief Executive. Koha Koha is a gift, a token, or a contribution given on appropriate occasions. All koha are to be authorised by the Chief Executive or Group Manager. A report documenting Koha paid by Council is to be tabled annually to the Audit and Risk Committee Communications Technology Communications technology such as cell-phones, telephones, e-mail, and access to the internet are widely used in the workplace. While some level of personal use of this technology may be unavoidable, excessive use incurs costs that are a diversion of public money from the business purposes of the Council. Such costs include lost productivity and the direct cost of the technology. Refer to the Electronic Communications Policy. Gifts Purchasing Gifts: Gifts may be given, or received, as a token of recognition. Gifts given by Council are typically limited to:
Long Service awards – long service is recognised with the presentation of a gold watch on the completion of 20 years’ service with the Council. The watch will be presented by the Chief Executive at the applicable end-of-year function for the employee.
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It is customary to give gifts to visiting international groups, particularly those from sister cities or countries/regions with a strong alliance with Hauraki District. Such gifts will be authorised by the Chief Executive or Mayor.
When purchasing a gift, the Authorised Purchasing Officer must consider what is an appropriate in terms of the value and nature of gift for the occasion. Receiving Gifts: From time to time employees will receive a gift from a supplier or client. Employees may retain the gift if it is:
Inexpensive (i.e. the value is assessed to be less than $100); and Received infrequently (i.e. annually or longer)
Employees are prohibited from receiving gifts for favours or inferred preferences to suppliers or clients, i.e. the receipt of gifts should not, under any circumstances, be seen as a reward or inducement that could place the employee under an obligation to a third party.
Where a gift is valued at over $100 or where a gift is regularly given by a supplier or client, the employee must declare the gift to the Chief Executive who will determine whether it is acceptable for the employee to retain, or whether it should be returned or sold for the benefit of the Council. Gifts or this nature are to be documented in the Sensitive Expenditure Employee Gifts Register maintained by the Human Resources Advisor. The Chief Executive may look to the Auditor-General Sensitive Expenditure Guidelines on the website of the Office of the Auditor General for guidance on this matter. A part of the extract is replicated below to assist the Chief Executive with decision-making in this regard: www.oag.govt.nz http://www.oag.govt.nz/2007/sensitive-expenditure/part8.htm Home › 2007 publications › Controlling sensitive expenditure: Guidelines for public entities › Part 8: Other types of expenditure
Gifts
Issues and principles
The major risks with gifts include that:
the value or nature of a gift is inappropriate or excessive to the occasion or the reason for it being given;
the gift is given in explicit or implicit expectation of favour in return; and the gift is given in substitution for legitimate payment or remuneration.
The principles of a justified business purpose, moderate and conservative expenditure, and acting with integrity and preserving impartiality are particularly relevant.
Guidance
We recognise that receiving a gift is not strictly an issue of sensitive expenditure. This is because it does not involve expenditure on the part of the organisation or individual receiving a gift. Receiving a gift is nevertheless a sensitive issue, and one that entities need to manage carefully. It is especially important that receiving a gift does not alter an entity’s or individual’s decision-making, as this could be perceived as acting without impartiality or integrity.
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Decision Report
To: Mayor and Councillors
From: Property Manager
Date: Thursday, 4 April 2019
File reference: Document: 2516052 Appendix A- Current Community and Sports Groups that hold Council
agreements
Portfolio holder: Councillor Daley (Property) Councillor McLean (Recreation)
Meeting date: Wednesday, 24 April 2019
Subject: Fees and Charges for Property Leases and Licences
Recommendation:
THAT the report be received, and THAT Council adopt the lease and licence fee and charges structure as outlined in the report,
and THAT the new lease and licence fee and charges apply to new agreements being developed,
and THAT lessees are informed of proposed changes and to implement changes on 1 July 2019 for
all new leases.
1 Purpose
The purpose of this report is to gain Council’s approval of the proposed fees and charges for
leases and licences on Council owned or controlled land and /or buildings. The matter or suggested decision does not involve a new activity, service, programme, project,
expenditure or other deliverable.
2 Background
At the end of 2016 the Property Manager and Property Officer reviewed and made improvements
as to how the property portfolio is managed. With the help of the finance team, staff uncovered
multiple lessees that have not been charged for water consumption or land rates. These charges
were for services rendered from 2011 to 2015.
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The uncharged services were a result of an administration oversight, processing errors and the
change of processes within Council. At the time of this information coming to light, the Group Manager Community Services and
Development personally met with all the community groups affected, explaining the oversight
and mutually agreed that all new charges (2016 and onwards) will be invoiced in accordance
with their lease agreements, and the historical charges be outlined and options on these be
brought before Council for a decision on a way forward. At the 5 October 2018 Community Services and Development Committee meeting, Council
consider a report on the Council’s direction on how to deal effectively with the set of historical
water and rates charges to community groups. The committee passed the following resolution, THAT Council approve the preferred option, Option 1 - non recovery of the historical arrears
charges for water and rates owed by community groups. At this time, Council asked staff to work with Ward Chairs, relevant Portfolio Holders, Mayor and
Deputy Mayor to review our current leases and licences structure and what would be the best
fee structure for the future, as agreements were not consistent in fees and conditions. A number of community and sporting activity leases and licences have expired and have not
been renewed, awaiting a Council decision on the new fee structure.
3 Issue and options
Staff and the elected members met and worked through each type of lease and licence to look
at and decide on fees that take into account,
Affordability Consistency Ownership of assets Services provided Community benefit
The working party also focused on the following key attributes of a lease and licence when
deciding on an appropriate fee and conditions.
Lease type Lease set-up cost Annual lease/licence fees On-charging for services provided
They also considered when the new fees would apply from.
Principles taken into account to guide Council’s decision.
Affordability – the need to provide an appropriate balance between supporting community
groups for wider community benefit and value for ratepayer money. Simplicity and consistency – guidelines to be simple to understand and administer; will enable
consistency and transparency and not unnecessarily duplicate other legislative tools. Ownership of assets- who owns, funds and maintains the assets
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Services provided- what services are being provide to the organisation and what can be fairly
on charged Community benefit –be seen to encourage community occupancy that maximises community
benefit and empower community groups to be sustainable. The following are categories for groups or organisations and the equivalent rentals and any
applicable on-charging, being recommended for Council to consider. Lease Type Document
set up fee
Annual lease fee
On charging
Grazing (example: Ngatea- Kiahere Road,
farm)
$150 Market Full
Commercial: Council land and/or buildings (example:Waihi Council Chambers
Restaurant)
$150 Market Full
Community Group: Council land and buildings (example:Waihi Museum and Arts
Centre)
$150 $200 + annual CPI Full
Community Group: Council land (example:Waihi Scout Group)
$150 $100 + annual CPI Full
Sports Group: Council land and buildings (example : Paeroa Croquet Club)
$150 $300 + annual CPI Full
Sports Group: Council land (example: Paeroa Bowling Club)
$150 $150 + annual CPI Full
Sports Group: Land licence to occupy (example: Ngatea Touch Rugby)
$150 If
applicable*
Nil Line marking
Super User Group: (example: Sport n Action Morgan
Park)
$150 Council Working Party
to determine fee on a
case by case
Full
Emergency Services: Charitable Organisation (example: St. John)
$150 Nil Full
Emergency Services: Government Agency (example: FENZ)
$150 Market Full
* If a sports group have a lease for a building, then a licence to occupy the sports fields would
be included in this agreement. This will avoid the cost of developing 2 agreements.
Definitions Lease type- Lease categories, based on services provided, user groups etc. Document set up fee- contribution towards the cost of setting up the legal documents Annual lease fee- fee charged per year On charging- payment to Council of services provided such as water, electricity, rates etc.
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Implementation
1. For leases and licences that have currently expired, new agreements will be developed
under the new fees and charges approved by Council. These will be bought to Council for
approval.
2. Existing current leases and licences will continue under the existing conditions until they
expire. At this time the new lease or licence will be developed under the new fees and
charges approved by Council.
4 Significance and Engagement Assessment
This decision does not trigger the Significance and Engagement Policy Assessment Tool and
therefore is not considered significant under the Significance and Engagement Policy 2017. The level of engagement considered appropriate for this matter, at this point in time, is to inform
(i.e. one-way communication disseminating information) lessees of proposed changes and to
implement changes on 1 July 2019 for all new leases.
5 Budget Implications
This decision will result in some additional income for Council but is not expected to be
significant. The cost of developing new agreements will be partly paid for by the other party via
the $150 set up fee. Previously this full cost was met by Council.
6 Recommendation
The Council should make its decision on which option to choose based on that option being the
most cost effective, and good quality option for the Hauraki District (s10 of the Local Government
Act 2002). The Council working party, consisting of Ward Chairs, relevant Portfolio Holders, Mayor, Deputy
Mayor are recommending that Council adopt the following lease and licence fee and charges
structure. Lease Type Document
set up fee
Annual lease fee
On charging
Grazing (example: Ngatea- Kaihere Road,
farm)
$150 Market Full
Commercial: Council land and/or buildings (example: Waihi Council Chambers
Restaurant)
$150 Market Full
Community Group: Council land and buildings (example: Waihi Museum and Arts
Centre)
$150 $200 + annual CPI Full
Community Group: Council land (example:Waihi Scout Group)
$150 $100 + annual CPI Full
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Sports Group: Council land and buildings (example : Paeroa Croquet Club)
$150 $300 + annual CPI Full
Sports Group: Council land (example: Paeroa Bowling Club)
$150 $150 + annual CPI Full
Sports Group: Land licence to occupy (example: Ngatea Football)
$150 Nil Line marking
Super User $150 Council Working Party
to determine fee on a
case by case
Full
Emergency Services: Charitable Organisation (example: St. John)
$150 Nil Full
Emergency Services: Government Agency (example: FENZ)
$150 Market Full
Dennis Lees Property Manager
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Appendix A- Current Community and Sports Groups that hold Council agreements
Lessee Category Current
lease fee
Proposed
fee
Difference Outings
Expiry
Barnardos (Turua) Community group: Council land $345 $100 -$245.00 Yes Expired Hauraki Plains Board of Trustees Super user $1,150 Case by case Yes Expired Ngatea Kindergarten Community group: Council land and buildings $33.76 $200 +$166.24 Yes Expired Ngatea Playcentre Community group: Council land $33.75 $100 +$66.23 Yes Expires 2022 Paeroa Kindergarten Community group: Council land $2.25 $100 +$97.75 Expires 2019 Paeroa Playcentre Community group: Council land $2.30 $100 +$97.70 Yes Expired 1st Waihi Scout Group Community group: Council land $11.50 $100 +$88.75 Yes Expires December
2019 Paeroa Boy Scouts Association Community group: Council land $2.25 $100 +$97.75 No Expires 2028 Paeroa Community Support Trust Super user $580 Case by case Yes Expires 2020 Waihi Art Centre and Museum Community group: Council land and buildings $57.50 $200 +$142.50 Yes Expires 2031 Waihi Plunket Society Community group: Council land and buildings $1.00 $200 +$199.00 No Expires 2024 Waihi RSPCA Community group: Council land $500 $100 -$400.00 Yes Expires 2027 Whiritoa Surf Life Saving Club Community group: Council land and buildings $0.10 $200 +$199.90 No Expires 2046 Turua Scouts Community group: Council land - $100 +$100.00 Yes Expires 2020 Waihi Community Marae Inc. Community group: Council land and buildings $12.65 $200 +$187.35 No Expires 2022 Waikino Liaison Society Inc. Community group: Council land $1.00 $100 +$99.00 No Expires 2035 Historical Maritime Park Inc. Community group: Council land WRC
licence $100 -$300.00 No Expires 2020 -
Licence to Occupy Menz Shed Community group: Council land TBC $100 +$100 No New lease to be
entered into. Hauraki Bowling Club Sports group: Council land $180 $150 -$30.00 No Expired Hauraki Golf Club Grazing $2,587.50 Market No Expires 2023 Hauraki Golf Club Sports group: Council land and buildings $1,725 $300 -$1425.00 No Expired Hauraki Plains Junior Soccer & Athletics Sports group: Council land $93 $150 +$57.00 No Expires 2030 Kerepehi Bowling Club Sports group: Council land $225 $150 -$75.00 Yes Expired Ngatea Rugby Club Sports group: Council land and buildings $256 $300 +$44.00 No Expires 2027 – review
every 3 years Hauraki Sports Centre Sports group: Council land $393 $150 -$243.00 No As T.V. Turf Trust -
Expired Ngatea Soccer Club Sports group: Council land LTO - Line marking N/A No Ngatea Touch Rugby Sports group: Council land LTO - Line marking N/A No
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Paeroa Amateur Athletics Sports group: Council land and buildings $207 $300 +$93.00 No Expired Paeroa Bowling Club Sports group: Council land $16.88 $150 +$133.12 Yes Expires 2032 – review
1 July 2019 Paeroa Centennial Park Board Sports group: Council land $2.25 $150 +$147.75 No Expires 2019 Paeroa Croquet Club Sports group: Council land and buildings $110 $300 +$190.00 No Paeroa Lawn Tennis Sports group: Council land $5.75 $150 +$144.25 Yes Expires 2032 Paeroa Netball Association Sports group: Council land
(Exclusive use of courts – consider $$ rate $33.74 $150 +$116.26 No
Expired Paeroa Soccer Club Sports group: Council land - $150 +$150.00 No LTO between HDC
and WRC expires 2020
Sport n Action (Waihi Event Centre) Super user $920 Case by case No Expires 2020 TV Turf Trust (Hockey) Super user $1,229.74 Case by case No Expired Thames Valley Rugby Union Super user $1,334.44 Case by case No Being reviewed now Waihi Bowling Club Sports group: Council land $262.17 $150 -$112.17 Yes Expired 2015 –
Morgan Park MOU? Waihi Croquet Club Sports group: Council land $152.12 $150 -$2.12 Yes Expired – Morgan
Park MOU? Waihi Netball Association Sports group: Council land $132.02 $150 +$17.98 Yes Expired – Morgan
Park MOU? Hauraki Plains Netball Centre Sports group: Council land / LTO? - $150 +$150.00 No June 2020 Kaiaua Boating Club Inc. $115 $150 +$35.00 No Expires 2029 Ngatea Cricket Club Sports group: Council land - $150 +$150.00 No Lease to be entered
into
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Decision Report
To: Mayor and Councillors
From:
Property Manager
Date: Thursday, 11 April 2019
Portfolio holder: Councillor Daley
File reference:
Document: 2562533 Appendix A: Aerial view of proposed areas Appendix B: Licence to Occupy document
Meeting date: Wednesday, 24 April 2019
Subject: Licence to occupy land situated at Paeroa between
Hauraki District Council and Kiwirail.
Recommendation:
THAT the report be received, and THAT the Council approves entering into a new Licence to Occupy between Kiwirail and the Hauraki District Council for a term of 9 years, and THAT the licence be subject to the conditions set out in the report.
Purpose The purpose of this report is to obtain approval for a new Licence to Occupy between Hauraki District Council and Kiwirail for the use of land, for the purpose of conducting activities associated with the Hauraki Rail Trail and roading networks. The matter or suggested decision does not involve a new activity, service, programme, project, expenditure or other deliverable. Background Council has received notice from Kiwirail wishing to terminate licence L62061. The original licence was granting right of level crossings over rail land, dated 25 October 1997. The railway has been removed and there is no level crossing in place. Therefore, the current licence is no longer fit for its intended purpose. Kiwirail has invited Council to enter into a new Licence. Council’s Delegation Manual allows the Chief Executive to delegate to the Group Manager Community Services to approve renewals of existing leases.
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Leases and licences
1. To approve the renewal of any lease, licence to occupy or tenancy (other than
pensioner housing tenancy) or to vary the terms and conditions of any lease, licence
to occupy or tenancy, in respect of:
All properties, where a prospective tenant fits the criteria determined by Council.
2. To terminate any lease, licence to occupy or tenancy in respect of all property
excluding pensioner housing where non-compliance with the terms of the licence or
lease exist.
3. Authority to act under an Order of the Tenancy Tribunal.
4. To approve the allocation of tenancies for pensioner flats with any issues outside
policy being referred to the Pensioner Flats Allocation Sub-committee.
Sub-Delegation
Community Services Manager
Since this is a new Licence to Occupy, the matter needs to be put before Council. Issues and options A summary of the conditions of the Licence to Occupy between Hauraki District Council and Kiwirail as follows. Note the ‘Licensee’ is Hauraki District Council.
The licence period is from 1 March 2019 – 28 February 2028 with no right of renewal. The licence fee will be $350.00 inclusive of GST per year, subject to review, after written
notice from Kiwirail’s intention to review or increase has been received. Fee reviews will be annually. The licensee will pay all local authority rates. The licensee will use the property for the purpose of conducting activities associated with
generally recognised Hauraki Rail Trail activities. The Licensee shall not sublet the land without the prior written consent from Kiwirail. At the expiry of this lease the licensee shall remove all buildings and structures from the
land and shall reinstate the land in a clean and tidy condition. Changes to the main terms and conditions are as follows:
Notice period on early termination is 12 months. Review of the annual fee will now have a fixed increase of 2% per annum. After 5 years the fee will be reviewed to market.
Significance and Engagement Assessment This decision does not trigger the Significance and Engagement Policy Assessment Tool and therefore is not considered significant under the Significance and Engagement Policy 2014. No engagement is necessary for this decision.
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Budget Implications There are no budget implications to Hauraki District Council as a result of this decision.
The licence fee will be $350.00 including GST per year, plus all rates and outings on the land.
Recommendation Council should make its decision based on what is the most cost effective, quality option for the Hauraki District (s10 of the Local Government Act 2002). The portfolio holder and staff recommend approval of the Licence to Occupy between Kiwirail and the Hauraki District Council for the period 1 March 2019 – 28 February 2028. Dennis Lees Property Manager
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Appendix B
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Decision Report
To: Mayor and Councillors
From: Transportation Manager
Date: Wednesday, 3 April 2019
File reference: Document: M2550338 Appendix A: Proposed CAR Fee Structure
Portfolio holder: Councillor Adams
Meeting date: Wednesday, 24 April 2019
Subject: Transport Decision Report – Road Corridor Management Cost
Recovery
Recommendation:
THAT the report be received, and THAT the Council approves user fees for managing utility operator access to transport
corridors, and THAT the Council approves, for consultation, the user fee amounts as specified in Appendix
A to the report, and THAT targeted consultation on the proposed fees be undertaken in accordance with the Local
Government Act 2002 consultation principles, and THAT the Council notes that the decision to fund expenditure associated with utility operator
access to transport corridors via user fees is inconsistent with the Council’s 2018 Revenue
and Financing Policy as it does not provide for income from user fees and charges for this
purpose, and THAT in regards to this inconsistency it is not considered to be significant in accordance with
the Significance and Engagement Policy, and THAT the Council will amend the Revenue and Financing Policy to accommodate the decision
to fund expenditure via user fees when it is next reviewed as a matter of course.
1 Purpose
The purpose of this report is to seek approval from the Council to introduce fees to recover the
cost of administrating and managing construction activities and events in the road corridor.
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The matter or suggested decision does not involve a new activity, service, programme,
project, expenditure or other deliverable.
2 Background
Hauraki District Council as a Road Controlling Authority is obligated to manage and coordinate
activities in the road corridor, as well as ensure as far as reasonably possible, the healthy, safe
and efficient operation of the roading network. Currently the cost of regulating construction activities and events in the Roading Corridor is
paid from the Operational Roading Budget funded from Rates and NZTA subsidies. These costs
are however mainly attributed to organisations or persons affecting these activities.
3 Issue and options
Annually we receive approximately 500 applications to do work or other activities in the road
corridor. It is believed that there is also a significant amount of persons or organizations that
are affecting work or other activities, without submitting applications. In order to manage this
activity effectively it is necessary to assign sufficient resources to not only process and monitor
applications received, but to also monitor the general network to ensure compliance with the
Codes of Practice. It is noted that there is an increasing emphasis nationally on managing
safety in road corridors, and specifically related to construction activities. This regulatory activity is governed by two codes of practice:
National Code of Practice for Utility Operator’s Access to Transport Corridors (NZUAG
Code) Code of practice for temporary traffic management (CoPTTM)
The resources needed for this activity however result in a cost that should not be levied
against the general rate payer in the District. As noted in Clause 6.5 of NZUAG Code
… Following the ‘Causer Pays’ principle it is appropriate that Corridor Managers recover the
reasonable costs of managing the CAR activity from Utility Operators. Costs incurred by a
Corridor Manager for this service should be separately identified and fees set through an
appropriate consultative procedure…
Persons and organizations affecting activities in the road corridor include, but are not limited
to: Utility Service operators (such as Powerco, Chorus, Counties Power, HDC 3 Waters) Utility and Roading Contractors Event Organisers Private persons or organizations Etc.
The construction of private vehicle crossings is not included in the above list as this is handled
separately and a fee for this is already approved. Legislative opportunity to recover costs The National Code of Practice for Utility Operator’s Access to Transport Corridors provides
mandatory requirements and supporting guidance to assist with complying with the Utilities
Access Act 2010. The code specifies that it is appropriate that corridor managers recover the
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reasonable cost of managing the CAR activity from utility operators. These costs should be
separately identified and fees set through an “appropriate consultative procedure” for example,
the consultation and fee prescription processes outlined in the Local Government Act 2002. It
is the fee structure and amounts that will be consulted on, not whether or not to recover
income through user fees. Council funding policy The Council’s Revenue and Financing Policy does not provide for the charging of user fees for
activity on the roading corridor, except for activities outside the trafficable road surface (which
is limited to a maximum of 1%). The Policy provides for such activity to be funded through
rates or subsidies. Any decision to charge user fees to recover the costs of managing utility
operator access to transport corridors would be inconsistent with the Policy. If the decision is made to implement such a fee structure it has to be recorded as an
inconsistent decision as per section 80 of the Local Government Act, 2002. Proposed fee Structure In light of the current increased level of scrutiny nationally on traffic management, and the
safety of road corridors, an analysis of our current level of inputs were done. The following
areas were identified where increases in inputs are required: Audits of Work Sites Keeping an up to date record of all current worksites which will require increased follow
up by admin staff Coordination on Forward Works Programmes and other issues with Industry Stakeholders
Based on an increased level of inputs required an analysis of expected costs was done and a
level of cost recovery required was estimated. The cost recovery was based on a 50/50 split of
actual expected costs related specifically to applications for different levels of activities. The
cost of general administration of the activity was excluded, and the cost of rework or work
related to non-compliances were allowed for separately. The estimated cost recovery calculation will be as shown in the table below: Item Expenses Recovery
Estimated Cost of CAR activity $210k
Estimated Fees for CAR
$105k TMP budget moved to Prof
Services in 19/20 AP
$35k
Additional budget approved for
Traffic Management Controller in
19/20 AP (15 hr per week)
$70k
TOTAL $210k $210k
A breakdown of a proposed cost recovery fee structure can be seen in Appendix A to this
report.
4 New deliverable
The Local Government Act 2002 now requires that all local government deliverables (whether
it be an activity, service, project, programme, grant or involve any other form of expenditure)
must align to the purpose of local government as outlined in Section 10 of the Local
Government Act.
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For the Council’s information, the decision is new. It is therefore considered to be aligned with
the purpose of local government as it provides: performance of regulatory services
5 Significance and Engagement Assessment
Staff suggest that the consultation process would be most appropriately designed in
accordance with the consultation principles (section 82) in the Local Government Act 2002.
These – amongst other things – require councils to identify who is likely to be affected by or
have an interest in a matter and consult with them in a way that suits their preferences and
needs (so far as is reasonably practicable). That includes how information is provided and how
they can present their views. In this case staff suggest that those affected by or having an
interest in the fee amounts will be: Utility Operators (including Hauraki District Council), Event Organisers, Private individuals who intend to affect work in the road corridor. This decision does not trigger the Significance and Engagement Policy Assessment Tool and
therefore is not considered significant under the Significance and Engagement Policy 2017. The level of engagement considered appropriate for this matter, at this point in time, is to
consult (i.e. two-way communication to obtain public feedback) with affected parties on the
amounts of fees to be charged.
6 Budget Implications
The cost of regulating construction activities and events in the Roading Corridor was moved
into the Professional Services budget approximately one year ago. Therefore, an increase for
this budget was requested and approved for the 2019/20 Annual Plan. The increase will
however not be sufficient to cover the full expected cost of the Corridor Management Activity
as discussed under Clause 3 of this report. Enabling cost recovery will reduce expenditure on this budget by allocating the expense to the
parties actually causing the expense.
7 Consultation
The logistical process for consultation is currently being finalised, however it is expected that
stakeholders will be contacted in May, feedback will be collated in June and a report to Council
will be presented in June/July.
8 Recommendation
The Council should make its decision on which option to choose based on that option being the
most cost effective, and good quality option for the Hauraki District (s10 of the Local
Government Act 2002). The following is hereby recommended: THAT the report be received, and THAT the Council approves user fees for managing utility operator access to transport
corridors, and
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THAT the Council approves, for consultation, the user fee amounts as specified in Appendix A
to the report, and THAT targeted consultation on the proposed fees be undertaken in accordance with the Local
Government Act 2002 consultation principles, and THAT the Council notes that the decision to fund expenditure associated with utility operator
access to transport corridors via user fees is inconsistent with the Council’s 2018 Revenue and
Financing Policy as it does not provide for income from user fees and charges for this purpose,
and THAT in regards to this inconsistency it is not considered to be significant in accordance with
the Significance and Engagement Policy, and THAT the Council will amend the Revenue and Financing Policy to accommodate the decision to
fund expenditure via user fees when it is next reviewed as a matter of course. Lukas de Haast Transportation Manager
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Appendix A:
Proposed fee schedule for cost recovery of CAR administration (excluding Vehicle Crossing
Applications).
Description Fee effective 1 August 2019
($) (GST included)
Single Occurrence Permits*
Project 340
Major 280
Minor or Emergency 110
Trenching inspections 280
Additional Review of applications
Project 280
Major 230
Minor or Emergency 60
Penalty for non-compliance 580
Definitions of Single Occurrence Projects as per NZUAG Code Definitions
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Decision Report
To: Mayor and Councillors
From: Group Manager Planning and Environmental Services
Date: Monday, 1 April 2019
File reference: Document: M2557145
Portfolio holder: Councillor Paul Milner
Meeting date: Wednesday, 24 April 2019
Subject: Planning and Environmental Services Report – March 2019
Recommendation:
THAT the report be received.
Summary
In this month’s report another busy month for Customer Services. There are updates on the
Kaimai Windfarm resource consent application and the Healthy Rivers Plan Change process. Consultation continues on the bylaw reviews. Technical Advisory Group have recently met for
the Kaiaua Community Plan process – Kaiaua 2120. The new Ngatea Library engagement process
began well. There is also the monthly update on the Waihi mining activities.
Customer Services Team
The Customer Services team experienced another busy month in March. Due to unexpected sick
leave the team was short staffed for almost half the month, however the team supported each
other and worked well together to achieve the month’s results. The team received 3,664 calls
of which 3,433 were managed successfully, 231 calls abandoned (result 6.3%, target 6.0%).
The service level was almost met with a result of 79.7% (target 80% answered within 20
seconds). Calls related to building 24%, rates 11%, planning 9%, general information 6%, and
the balance of calls spread across all other areas of the Council. Progress continues to be made with the new service request system which is due to be
implemented late April. It is planned the Customer Services team will have two training sessions
on the new process during the month of April. The team also continues to gain confidence with the new cemetery processing system which
took effect last month.
Development
31 March 2019
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Consents Issued 2017/18 2018/19 Year to date
Building Consents 295 288 97%
Subdivisions 46 36 78%
Land Use 79 77 97%
Designations - - -%
Objections 4 1 25%
Certificates of Compliance - 1 100%
Variations 16 14 87%
Outline Plans - 2 200%
Right of Ways - - -%
Extension of Time 1 - -%
Permitted Boundary Activity Certificates* 6 23 -%
(*only commenced during previous year) 152 154 101%
LIMs 301 351 116%
Consent activity is now showing a slight decrease in Resource Consent numbers for
this financial year with a continued increase in the number of LIMs. Communications The new communications officer is settling in well and has already been a welcome support to
the communications advisor. The new Ngatea Library engagement process, Hey, let’s start a
new conversation, was launched with a well-attended event in Ngatea last week. Some of the
feedback received included appreciation that the council was reaching out to younger sectors of
the community and trying new ways to encourage participation from those who may not choose
to use traditional methods of giving us feedback. The conversation will continue until 13 May and conclude with an event in Ngatea towards the
end of May. Feedback will be summarised in a book that will be presented to the community at
that event. The Council will also use the book, along with all other feedback received (including
the petition it received from the community) to guide its decision on the future location and
concept for a new library and community space. Other engagement projects the team is focusing on include an extension to the Hauraki Rail
Trail, and the upcoming local government Iwi Liaison This month saw many different kaupapa (topics) flow towards the Māori Liaison Officer. These
involved many different aspects from: - Translations of key headings in many Council Documents - Advice and support in engaging with Iwi of Hauraki District Council - Review of key documents pertaining to engaging with Māori. From Reseouce Consent
matters through to general engagement with various Māori entities. - Presentation to Economic Sub-Committee re Engaging with the Māori Business
Community
This month has also seen the development of some key documents in relation to assisting Staff
and Council when engaging with Māori. These documents are designed as a guideline to assist
Council in their processes going forward. One of the key documents deals with Cultural
Responsiveness and and will assist Staff in learning better cultural practices within a Māori
Environment.
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Regulatory Services Team
Planning Implementation
Processing
For the last month 11 subdivision and 9 land use resource consent applications were lodged and
to date over that period all were processed within the statutory timeframe of 20 working days.
District Plan Changes
Proposed Rule Plan Change 1 is now at the stage where the consultant planner is preparing the
planners report for the Hearing of submissions on the 9 May.
Healthy rivers plan change
At the time of writing, Mayor Tregidga was due to speak to the Council’s Healthy Rivers plan
change submission on 8 April 2019. The Waikato Regional Council has released its second report on the written submissions received
relating to policies and rules. The report is currently being reviewed by staff.
Kaimai Windfarm Application
It was reported last month that preparations were underway for pre-hearing meetings. The
applicant has now advised that he is considering offering one on one meetings to all submitters
(220). Preparations for pre-hearing meetings and the technical reviews of the proposal and
submissions have therefore ceased until Council has a clearer picture of the process going
forward.
As at 28 March the applicant had met with New Zealand Transport Agency, Matamata-Piako
District Council, Matamata Soaring Centre, Federated Farmers, Transpower and the Department
of Conservation. If one on one meetings are offered to, and accepted by most submitters, the date for the
commencement of a hearing becomes even more uncertain than it was.
Building Team
For the last month Council granted 34 Building Consent applications with 15 new dwellings last
month and all except one were processed within the statutory timeframe.
General
Dog Control
Dog Control officers last month have been following up on non-complying known menacing and
dangerous dogs who have failed to meet their legal obligations for keeping such a dog under the
Dog Control Act.
Strategic Planning
Items covered in separate reports on this agenda, include: Draft Smokefree Policy Non-financial performance targets for the third quarter of 2018/19 Next-steps for the CouncilMARK programme
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Kaiaua Community Plan = Kaiaua Coast 2120
Some lessons learned from the Councillor and ELT visit to Napier and Hastings that can be
applied to our project include: that it is critical to have good governance oversight, and the community need to be heavily involved.
Discussions are ongoing with iwi regarding putting forward iwi representatives for the Joint
Working Party to govern the project. The next Technical Advisory Group (TAG) meeting for the project is on 15 April and will focus on
natural hazards information which will lead into more detailed project planning. Annual Plan
Due to some processes taking staff longer than expected with the Annual Plan, the document
will be presented in May for Council consideration. This has no effect on the overall process, as
the Annual Plan itself is required to be finalised by end of June 2019 to come into effect 1st July
2019.
Reviewing the Bylaws
Public consultation is under way for the draft Nuisance Bylaw, draft Cemeteries Bylaw, draft Food
Grading Bylaw and draft Wharves and Boat Ramps Bylaw. It has been recommended by the
bylaw working party that the Council use the special consultative procedure, including a hearing
at an extraordinary meeting of the Council on 22 May 2019. Phase two of the bylaw review is underway and includes review of the following bylaws: Part 5: Water Supply Part 7: Land Drainage Part 8: Solid Waste
Surveying what our people think
The Mayor and Councillors are thanked for their input into the 2019 customer triennial survey
areas of focus. As instructed, a working group meeting will be organised to review the survey
questions – this is likely to occur in June 2019.
More long term planning on the horizon
Believe it or not, staff are about to kick start the 2021 long term planning process. Initial steps
will involve looking at what is needed from the next round and how staff can support the newly
elected council in late 2019/early 2020.
What’s up in Wellington?
The series of local government legislation change continues to proceed through Parliament: The Local Government Regulatory Systems Amendment Bill (the one that makes
technical and procedural fixes and modernises requirements) has now been passed and has
come into effect. The Local Electoral Matters Bill (the one that provides for trialling new voting methods
and access information to help analyse voter participation) had its third reading in April and
is now pending royal assent. The Community Wellbeing Amendment Bill (the one that aims to restore the community
wellbeing purpose of local government and the power to collect development contributions
for any public amenities needed as a consequence of development) had its second reading
earlier in the month. The local government minister will be seeking amendments to the Bill
to provide transitional provisions where a policy introduces or reintroduces development
contributions for community infrastructure (being public amenities and associated land).
Waikato Plan Update
The Waikato Plan Leadership Committee met on 25 March 2019. Minutes of this meeting are
attached (Appendix B). The committee discussed its membership and a final update on the
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Waikato Plan Project Refresh. The committee also received reports on Te Waka: Anga Whakamua
Waikato (Waikato Moving Forward), priority actions, the regional housing initiative, advocacy
matters and the Waikato Wellbeing Project. The meeting was attended by our Deputy Mayor.
Mining Matters
Project Martha - Implementation
As reported last month, having gained the necessary resource consents to enable Project Martha,
Oceana Gold is now turning its attention to implementation of the consents. Prior to
implementation of the Hauraki District Council consents, there are a number of management
plans that need to be prepared by Oceana Gold and then reviewed and certified by the Council.
Management plans for Project Martha that have been received so far are:
Noise Management Plan: draft (for land use) received 14 March; referred to Council noise
expert; HDC comments subsequently provided; awaiting response to comments. Vibration Management Plan: received 14 March; referred to Council blasting and vibration
expert; HDC comments subsequently provided; awaiting response to comments. Landscape Management Plan: draft received 28 March; referred to Council landscape
expert; HDC comments subsequently provided; amended plan received 16 April; awaiting
HDC certification. Void Management Plan: draft received 26 March; referred to Council geotechnical expert;
HDC comments subsequently provided; amended plan provided; awaiting final amended
plan for HDC certification. Dewatering and Settlement Monitoring Plan: draft received 3 April; referred to Council
geotechnical expert to review land settlement/stability matters; HDC comments
subsequently provided; amended plan provided; awaiting final amended plan for HDC
certification (the dewatering aspects of the plan are required to be certified by the
Waikato Regional Council). We are still awaiting other important management plans including the Pit Slope Management
Plan and the Construction Management Plan which are required to address specific requirements
of the Project Martha land use consent. Stability Report 2018
The Council recently received, as required via consent conditions, the annual land stability report
for mining activity associated with the Correnso, Slevin (SUPA) and Martha Drill Drives Projects.
The report contains reasonably detailed information on: location, depth, height and volume of
stopes; the extent of development and exploration drives; backfilling and compaction; ground
conditions revealed by excavations; monitoring and measures for stability; mining within consent
boundaries, etc. and concludes: “… the risk of ground surface instability is extremely low due to the geology of the area and
best practice underground mining methodologies which have been employed. Please note also that the 6 monthly tilt surveys have continued to show there is no
evidence of mining induced surface instability.” The Stability Report 2018 was referred to Council’s geotechnical engineering expert, Dr Peter
Fuller, along with the Tilt Report to November 2018, and he concurs with the conclusions reached
by Oceana Gold. New Mining Activity within Trio and Favona
With the Waikato Regional Council consent for the Correnso mine providing for dewatering down
to 700mRL, Oceana Gold has recently started developing access tunnels to enable mining of an
additional 2 – 3 levels of the amaranth vein in the Trio mine (which has not been subject to
mining activity since 2015). Oceana Gold is currently updating the Heritage Items Monitoring
Plan which needs to be in place prior to the first production blast.
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The Council has also recently been advised that the Company wish to re-enter the Favona mine
to target ore within pillars that were not mined during previous operations. Council’s
geotechnical expert (Dr Fuller) has reviewed Oceana Gold’s plans and has confirmed there will
be no surface stability issues as a result of the Company’s plans. Peter Thom Group Manager: Planning and Environmental Services
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Appendix A: Monitoring Report Publication of the Annual
Report.
That the Annual Report is
completed, audited and
adopted by Council by 31st
October, each year.
The last Annual Report for 2017/18 was adopted on 24 October
2018.
Special Consultative
Procedure
That all issues subject to a
special consultative
procedure meet the
requirements of the Local
Government Act, 2002.
This has been undertaken as required with all Council Plans; Policies and Bylaws. At the time of writing, the joint sub-regional
review of the Waste Minimisation and Management Plan is
currently being consulted on in the form of the special
consultative procedure.
Resource Consents &
LIMs
Target Progress towards success
All notified resource
consents applications are
decided and issued within
statutory timeframes.
99% of all notified resource
consent applications are
decided and issued within 70
working days.
31 March 2019
Notified Consents to the end of February 2019 In 0 Out of time 0 (Limited Notified)
All non-notified resource
consent applications are
decided and issued within
statutory timeframes.
All non-notified consent
decisions, not requiring a
hearing, are issued within 20
working days.
1 July 2017 – 31 March 2019
Total 154 In time 154 100% Out of time 0 0%
Land Use 77 In time 77 100% Out of time 0 0 %
Subdivision 36 In time 36 100% Out of time 0 0 %
Other
Misc/Desig 26 In time 26 100% Out of time 0 0 %
Variations 14 In time 11 100% Out of time 0 0 %
Objections 1 In time 1 100% Out of time 0 0 %
Ext. of time - In time - 100% Out of time 0 0 %
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Issue
building
consents
within
statutory
timeframes.
100% of all
building
consents are
issued within
statutory
timeframes -
20 working
days
Mar-18
YTD 2017/18
Mar-19 YTD 2018/19
No. of Consents 32 295 28 288
% in time 100% 97%
New Houses
Paeroa 18 24
Waihi 45 44
Plains 32 29
TOTAL 86 97
0
10
20
30
40
50
60
No
. o
f B
C's
Month
Number of BC Processed
2017/18
'2018/19
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
1 2 3 4 5 6 7 8 9 10 11 12
Nu
mb
er
of
Days
Month
2018/19 Average Processing Time of BC's
2017/18 2018/19
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All LIMs are
issued within
statutory
timeframes
All LIMS are
issued within 10
working days
Mar-18 YTD 2017/18
Mar-19 YTD 2018/19
No. of LIMs 52 301 45 351
% in time 100% 100%
LIMs by Ward
Paeroa 89 93
Waihi 118 155
Plains 94 103
TOTAL 301 351
# LIMS 2017/18
%in time 2017/18
Avg Processing
# LIMS 2018/19
%in time 2018/19
% Overtime
Avg Processing
July 20 100% 5.2 49 100% 0% 6.50
August 33 100% 5.7 49 100% 0% 6.00
September 33 100% 6.5 32 100% 0% 6.10
October 34 100% 6.7 45 100% 0% 6.04
November 39 92% 7.1 44 100% 0% 5.30
December 23 100% 5.4 28 100% 0% 4.3
January 28 100% 5 25 100% 0% 4.7
February 39 100% 5.6 34 100% 0% 5.8
March 52 100% 6.6 45 100% 0% 6.5
April 49 98% 6.2
May 38 100% 5.8
June 34 100% 6.9
TOTAL 388 99% 6.05 351 100% 0% 5.68
0
10
20
30
40
50
60
No
. o
f L
IMS
Month
LIMS Processed
2017/18 2018/19
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Appendix B Waikato Plan Leadership Committee Minutes
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Decision Report
To: The Mayor and Councillors
From: Policy Analyst
Date: Friday, 12 April 2019
File reference: Document: 2562491 Appendix A: CouncilMARK grading scale Appendix B: Hauraki District Council CouncilMARK Report (2562923)
Portfolio holder: The Mayor
Meeting date: Wednesday, 24 April 2019
Subject: Hauraki District Council CouncilMARK Assessment Report and the next steps
Recommendation: THAT the report be received, and THAT the CouncilMARK working party work with staff to draft an action plan prioritising and budgeting for the areas of improvement identified in the CouncilMARK report, and THAT the action plan be presented to the incoming Council (after the 2019 local government elections) for consideration.
1 Purpose
This report formally presents the Hauraki District CouncilMARK report to the Council and seeks approval for the development of an action plan for the areas of improvement contained in the CouncilMARK report. The action plan will then be presented to the incoming Council after the 2019 local government elections. The matter or suggested decision does not involve a new activity, service, programme, project, expenditure or other deliverable, however the resolution will result in a new action plan being developed which will likely include new programmes/projects.
2 Background
The Council joined the CouncilMARK local government excellence programme in 2018, and two independent assessors were on-site to assess the Council over two days in October 2018. The assessors met with elected members, staff and a number of stakeholders including iwi, local
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developers, town promoters, community representatives, and staff from the New Zealand Transport Agency and the Waikato Regional Council. The Hauraki District Council CouncilMARK Assessment Report was released in March 2019 and the Council received an overall performance rating of an A grade. The overall grade is based on the grades for the four priority areas, which are based on criteria in the CouncilMARK Performance Assessment Framework. The grading areas and the Council’s corresponding grades are outlined in the table below: Grading Areas Grade What does this mean? Overall performance rating grade
A Some clearly identifiable areas of strength and leadership.
Governance, leadership and strategy priority area (leading locally)
Stand Out
The Council has high standards and some examples of leadership and best practice. It is noted in the CouncilMARK Report that the Council understands the importance of effective collective decision making. Strong and inclusive leadership is in place amongst both elected members and Council staff. Relationships with ratepayers and other stakeholders are positive. There is a well-established and strong vision for the district that is embraced by the community whose interests it strives to serve.
Financial decision-making and transparency priority area (investing money well)
Competent
The Council is achieving a basic standard in this priority area, it doesn’t stand out in any way. It is noted in the CouncilMARK Report that the Council has a long history of conservative financial management. Affordability is intensely monitored while apportioning investment and expenditure across the community, balancing the needs of the three wards. Important decisions are supported by robust financial analysis and justification, considering both compliance and performance. The Council manages its finances conservatively, with relatively low levels of debt. Elected Members and Council staff are acutely aware of rising compliance costs and the potential impact on service provision in the future.
Service delivery and asset management priority area (delivering what’s important)
Performing Well
There are high standards across this priority area. It was noted in the CouncilMARK report that the Council's delivery of core infrastructure services to meet community expectations is well managed. Bringing roading services back in-house has begun the recovery of asset knowledge. Hauraki District Council is managing the cost of rising compliance and increasing demands on immediate infrastructure proactively.
Communicating and engaging with the public and business priority area (listening and responding)
Stand Out
The Council has high standards and some examples of leadership and best practice. It is noted in the CouncilMARK report that the Mayor, elected members’, and Chief Executive's commitment to effective communications within Council and with the broader community is outstanding. The Council is recognised nationally for producing accessible consultation documents in plain English without over-simplifying issues. The Council has an effective and well-developed communications strategy and a series of actions designed to engage with, and listen to, each of the local communities. The strategy is well understood by Elected Members and staff.
The full Hauraki District Council CouncilMARK Assessment Report is attached as Appendix B. To provide context for the grades the CouncilMARK grading scales can be viewed in Appendix A. The Council’s Assessment Report and further information can also be viewed on the Council’s website and the CouncilMARK website http://www.lgnz.co.nz/about-councilmark/
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3 Issue and options
While there are many areas of strength highlighted in the CouncilMARK report, it is expected that each participating council, with support from LGNZ, will develop an action plan or strategy to address the areas for improvement identified in their individual assessment report. The areas for improvement are outlined in the table below: Priority Areas Areas for improvementGovernance, leadership and strategy priority area (leading locally)
• Tensions between the three wards versus responsibility to the entire district could be better managed.
• The process and benefits of the councillor induction need to be better communicated to the community.
• Response rates to Audit New Zealand’s recommendations could be improved.
• An annual independent assessment of Elected Member performance could be established.
Financial decision-making and transparency priority area (investing money well)
• There is a need for Council to identify gaps between community expectations and Council’s anticipated deliverables.
• The management of rates arrears needs to be formalised and published.
• The procurement policy/purchase order process needs to be refined to achieve consistency across the organisation.
• Emergency responses may require greater investment. Service delivery and asset management priority area (delivering what’s important)
• Asset management plans could make better links to the District Plan and Economic Development Strategy.
• HDC needs to follow through on the survey results, to understand the real cause and any changes in service delivery required to meet expectations.
• Asset register updates required for waste treatment plants. • Project management disciplines by way of a dedicated Project
Management Office need to be implemented. • HDC may be better focusing on GDP per capita, as opposed to
population growth. • The Council needs to develop an enforcement and regulatory
compliance policy and strategy. Communicating and engaging with the public and business priority area (listening and responding)
• Continued development of the digital communications interface may assist in reducing the time commitment to other engagement processes.
• The HDC could provide more detail as to how funding levels for local and regional economic development are determined.
It is recommended the CouncilMARK councillor working party work with staff to develop a draft action plan to address the areas for improvement identified in the assessment report for the consideration of the incoming Council, after the 2019 local government elections. The working party includes the Mayor, Deputy Mayor Adams and Councillors Milner and Leonard.
4 Significance and Engagement Assessment
The level of engagement considered appropriate in relation to receiving the CouncilMARK report was considered by the Council at its meeting on 26 September 2018 where it approved the draft CouncilMARK engagement plan (2453099).
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5 Budget Implications
There are no budget implications associated with the development of a draft action plan, however there may be budget implications associated with the individual actions. Those implications will be assessed prior to the action plan being presented to the incoming Council.
6 Recommendation
It is recommended the CouncilMARK working party work with staff to develop an action plan to address the areas for improvement identified in the assessment report for the consideration of the incoming Council. Charan Mischewski Policy Analyst
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Appendix A
Overall CouncilMARK Ratings and Interpretation
Priority Area Grades
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Hauraki District Council assessment report 1
An independent assessment report issued by the Independent Assessment Board for the CouncilMARK™ local government excellence programme. For more information, visit www.councilmark.co.nz
Independent assessment report | February 2019*
Hauraki District Council
*Assessment October 2018
Cover photo credit: Artzentao Photography
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2 CouncilMARK™
Hauraki is a largely rural district with three distinct urban areas, in which conservative values, strong ties to the land, and a commitment to deliberate sustainable growth are prevalent.
The current situation Hauraki District Council (HDC) serves the residents of Ngatea (Plains Ward), Paeroa (Paeroa Ward), Waihi (Waihi Ward), numerous smaller settlements, and a large, prosperous rural community. Relationships with residents, ratepayers, businesses, Māori and other stakeholders are especially strong. Council is highly responsive to each of the communities’ needs and judiciously balances the demands of the three major communities. Council also has an adept manner of balancing compliance and performance and, in doing so, maintains high respect across the district.
The performance of the HDC is excellent, starting from the Mayor’s commitment to making the Elected Members (EMs) a coherent and effective body through close engagement and a willingness to develop a constructive decision-making culture whereby all views are valued and consensus is willingly sought. A clear sense of vision is apparent, priorities are identified and strategies are enacted and managed appropriately on an annual basis.
Twenty-one per cent of the district’s population identify as Māori. Hauraki iwi include Ngāti Hako, Ngāti Tai ki Tāmaki, Ngāti Hei, Ngāti Maru, Ngāti Paoa, Ngāti Porou ki Hauraki, Ngāti Pūkenga, Ngāti Rāhiri Tumutumu, Ngāti Tamaterā, Ngāti Tara Tokanui, Ngāti Whanaunga and Te Patukirikiri.
Period of assessment The assessment took place on 18 and 19 October 2018.
AT A GLANCE
AssessmentSummary
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Hauraki District Council assessment report 3
SERVES
17,8081 PEOPLE, A MIX OF2 85.2% EUROPEAN/PĀKEHĀ 21.2% MĀORI 2.4% PASIFIKA 2.5% ASIAN
POPULATION TREND STABLE
MAKES UP
0.5%3
OF NEW ZEALAND’S TOTAL LAND AREA REPRESENTING THE HAURAKI DISTRICT, THE AREA FROM THE FIRTH OF THAMES IN THE NORTH, ACROSS THE KAIMAI/ COROMANDEL AND KARANGAHAKE RANGES TO THE PACIFIC COAST IN THE WEST. A TOTAL AREA OF:
1,270 km2
RESPONSIBLE FOR
644km ROADS 4
Key learnings The Hauraki District Council (HDC) is extremely effective. The process used to develop the Long Term Plan (LTP) is rational and constructive, and the HDC’s management of the Annual Plan and emergent operations is excellent. The understanding of the use of policies, and the need to balance the policy environment with effective management, is impressive. Expectations from various communities across the district are high, and are being actively managed to that effect:
> The Mayor is very competent in his role, and is highlyrespected throughout the district.
> The equally long serving CEO adheres to a similarly humblestyle of leadership, and is extraordinarily well regarded withinthe organisation. Both are committed to a demonstrablysustainable growth programme for the district and region.
1 StatsNZ, 2013
> Community engagement and support for the Council and itsstaff is especially strong.
> The HDC and Māori, through multiple forms of representation, are committed to working together to achieve mutuallybeneficial outcomes.
2 StatsNZ, 2013 3 Dept of Internal Affairs 4 Ministry of Transport
$575m GROSS DOMESTIC
PRODUCT
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4 CouncilMARKTM
Hauraki District Council is well led by a highly engaged Mayor, a cohesive group of elected members, a committed CEO, and a capable and trustworthy management team. Both individually and collectively, the Council demonstrates a deep understanding of the role of a territorial authority, the constraints to its operations and the pursuit of worthwhile investment.
Findings
1. EFFECTIVE DECISION MAKING WHICH MEETS THE COMMUNITY’S NEEDS
The Mayor and Councillors understand, and are committed to, effective and robust decision making. A very strong understanding of community needs is apparent and the needs are being delivered.
2. STRONG EMPHASIS ON CONTINUED INFRASTRUCTURE INVESTMENT.
Growth projections are ambitious, aided by proximity to Auckland, Hamilton and Tauranga. Judicious financial management is provided to meet potentially conflicting demands across the district.
3. OUTSTANDING COMMUNITY ENGAGEMENT
The enthusiasm with which the Mayor, elected members, Chief Executive, and Council staff listen to and engage with the broader community is outstanding.
OVERVIEW RATING
Assessment Summarycontinued…
Commonly used terms Term Definition
Asset Management Plan A tactical plan for managing a council’s infrastructure and other assets to deliver an agreed standard of service.
Infrastructure Local and regional roads, pathways and cycleways, drinking water, wastewater and stormwater assets, sports and recreation facilities (parks, sportsgrounds, green spaces etc.), community and tourism facilities (playgrounds, public toilets, libraries, museums, galleries and public art etc.), town centres, and other facilities.
Local Government Act 2002 (LGA 2002)
The legislative Act that provides a framework and powers for councils to decide which activities they undertake and the manner in which they will undertake them.
Long Term Plan The document required under the LGA 2002 that sets out a council’s priorities in the medium to long term.
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Hauraki District Council assessment report 5
Governance, leadership and strategy
Financial decision-making and transparency
Service delivery and asset management
Communicating and engaging with the public and business
Stand out Competent Performing well Stand out
The long standing Mayor and long serving CEO understand their respective roles and maintain a professional relationship that delivers results for the community.
A thorough induction process is conducted for all elected members (EMs) through which good governance process is understood and respect for one another is developed, resulting in a high standard of behavior and constructive collaboration.
Open, transparent and supportive relationships exist between EMs and Council staff, supported by portfolios and a strong quest for knowledge by both.
There is strong support between the community and the Council, resulting from a Council that listens and is receptive to community needs and aspirations.
The future capacity of some key infrastructure, especially wastewater due to both rising compliance standards and greater demands through population growth, requires adherence to long-term planning.
Greater achievement rate of LTP projects is needed.
Further development of the Council’s digital communications strategy is required, as well as access to digital means by lower socio-economic groups.
STRENGTHS AREAS OF IMPROVEMENT
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6 CouncilMARKTM
Leading locally Governance, leadership and strategy Council, ably led by a long serving Mayor, understands the importance of effective collective decision making. Strong and inclusive leadership is in place amongst both elected members and Council staff. Relationships with ratepayers and other stakeholders are positive.
Priority grading
Stand out
< The HDC has a well-established and strong vision for the district that is embraced by the community whose interests it strives to serve. >
Setting the direction for the community The Hauraki District Council (HDC) is deeply and genuinely engaged with its community. The public and stakeholder involvement in setting the HDC’s community outcomes includes public meetings, a caravan-style roadshow focusing on each of the three major towns (Ngatea, Paeroa and Waihi) and continuing consultation through the subsequent Long Term Plan processes.
The elected members (EMs) are all well connected with their respective constituencies and have adopted a highly collegial oversight of the district beyond their representative responsibilities to the respective traditional ward structure. The Council formally reviews its vision, goals and other strategic documents every three years, and effectively allocates resources on the basis of urgency and importance, taking care to balance effective governance, management and administration/ compliance.
Well-established leadership The fact that the HDC has only had two mayors and two chief executives since its creation in the early 1990s is unique in New Zealand. The current Mayor and CEO have maintained their professional responsibilities throughout their long terms, respecting one another’s different roles and responsibilities, and have not succumbed to either complacency or the common trappings of proximity.
Building collective understanding A three day retreat, coordinated by the Mayor, is held for EMs and the Executive Leadership Team immediately after local body elections. The retreat includes a discussion of the Council’s vision and goals, organisational structure, roles and responsibilities of staff and elected members, portfolios, expected conduct, and other relevant matters. This process delivers constructive collaborative decision making, roles and responsibilities are identified and understood, and collegiality is developed and nurtured. The measurement of organisational performance by the achievement of district outcomes is emphasised. This process is deliberate, constructive, and appears to achieve very successful outcomes. The induction process is reviewed upon its completion, and improvements identified for future inductions. Ongoing training is subsequently provided for EMs on the basis of their portfolios and committee appointments.
Organisational structure The HDC’s organisational structure supports the district’s vision, goals and strategies. The Council’s culture is fit for the purpose of service delivery and achievement of outcome, consequently structural change is rare.
EMs are each responsible for a select and unique portfolio to ensure direct links to the respective activity/asset and to provide a connection point with the community. This mechanism is well understood and enacted, does not impede management, and
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Hauraki District Council assessment report 7
overcomes any information asymmetry – which doesn’t appear to arise.
The Mayor and Chief Executive meet both formally and informally, in private and in public. Together, they provide a united and compelling face for an organisation committed to serving the local community and broader region.
Health and safety focus There is an active health and safety framework in place at HDC. Council uses the online tool ‘Vault’ to collate incident reports and to report to EMs. Improvement projects/plans are then put in place. EMs are well informed, engaged and understand their obligations to the staff and broader community. The Audit and Risk Committee also receives quarterly health and safety reporting. Health and safety policy is both efficient and cost effective.
Strong relationships HDC has a strong working relationship with the Waikato Regional Council (WRC) and other territorial authorities in the region. Engineering and planning staff regularly meet with representatives at WRC. HDC is a member of the Waikato Local Authority Shared Services, the Waikato Road Asset Technical Accord (RATA) and the Waikato Building Consent Group.
The Council’s constructive relationships with neighbouring Thames-Coromandel and Matamata-Piako district councils (known collectively as the ‘Eastern Waikato’) are noteworthy for being productive and transparent.
Understanding risks and their management The Council’s Audit and Risk Committee has a defined Terms of Reference (ToR) and is chaired by an independent member. Under the ToR, one member is always to be external (independent) to the Council. The ToR outlines members’ roles, responsibilities, and reporting. The Council receives treasury advice from PwC, who present to the Committee annually. KPMG has undertaken internal audits of Council processes and presented the results to the Audit and Risk Committee. Council understands the need to actively manage outcomes and constantly strives to achieve a balance between compliance needs and performance objectives. While some improvement could further be recommended, and is being pursued, the deliberateness of actions is noted.
Performance measurement HDC’s vision, goals and strategies are well reflected in the Chief Executive's performance agreement, which comprises both internally and externally generated performance measures. There is a focus on managing and maintaining rich stakeholder relationships (including those with iwi; five marae with whakapapa and two community marae), leading an organisational culture that delivers performance outcomes while maintaining positive external relationships, accountability for delivering projects, prioritising customer service, and ensuring that all statutory obligations are met.
Strengths
The Council and its EMs understand and practice effective collaborative decision making which, in turn, supports the delivery of a coherent vision.
Roles and responsibilities of all parties (the Mayor, EMs, CEO, ELT and staff) are well understood and respected by all.
HDC demonstrates a commitment to personal development of both EMs and staff.
Areas for improvement
Tensions between the three wards versus responsibility to the entire district could be better managed.
The process and benefits of the councillor induction need to be better communicated to the community.
Response rates to Audit New Zealand’s recommendations could be improved.
An annual independent assessment of EM performance could be established.
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8 CouncilMARKTM
The Council has a long history of conservative financial management. Affordability is intensely monitored while apportioning investment and expenditure across the community, balancing the needs of the three wards. Important decisions are supported by robust financial analysis and justification, considering both compliance and performance.
Priority grading
Competent
< The Council manages its finances conservatively, with relatively low levels of debt. However, EMs and Council staff are acutely aware of rising compliance costs and the potential impact on service provision in the future. >
Financial strategy Council has a well-developed understanding of its financial strategy. HDC takes responsibility for making and verifying its own assumptions on population growth and service capacity needs to meet community demands over time. Population modelling is outsourced every three years, and the results are then examined against local empirical data from which three scenarios are produced. HDC’s confidence in the accuracy of their own growth rate projections is high.
The financial strategy is best described as being conservative. Council maintain a deliberate and cautious approach to financial management, aligning effort with the risks involved, and reviewing the effectiveness of the process against both needs and the outcomes being achieved. The current financial strategy reflects long-term thinking and emerging population trends within the district, including the number of people commuting to work in the
greater Auckland, Waikato and Bay of Plenty regions. One of the unintended consequences of the number of daily commuters to employment outside the district is the need to develop a sense of belonging for these ratepayers.
Underpinned by affordability The financial strategy is underpinned by affordability. HDC understands that rates must be less than five per cent of household income lest they become unaffordable (see the Shand Report, 2017). Currently, 28 per cent of properties in the district have rates above that level. During the 2018-28 LTP process, it was decided to shift a further five per cent of general rate funding from uniform annual charges to capital value based rates to reduce the burden on those less able to pay. There was minimal subsequent change in user charges.
Deliberate information flows Audiences within the Council, from EMs to budget managers, the Executive Leadership Team (ELT) and the Audit and Risk Committee (ARC), receive financial reports with an appropriate level of detail. EMs demonstrate a common and consistent interest in the Council’s financial performance. The financial reporting template includes a carry forward request report for capital works from one year to the next, which are then prioritised by EMs to meet the district’s needs. Attention is paid to maintaining a balance across the three wards to ensure both equitable and appropriate service delivery. Maintaining harmony between the needs of the three wards and the broader district is well understood across the Council, from the Mayor, EMs, CEO, and the ELT to budget managers.
Discretionary (non-budgeted) expenditures are managed by way of a flowchart for out-of-cycle requests. There is a record of cumulative Council resolutions to move away from the Annual Plan budget. The Council’s Annual Reports are always compliant
Investing money well Financial decision making and transparency
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Hauraki District Council assessment report 9
with Part 3 of Schedule 10 of the Local Government Act 2002, as determined by Audit New Zealand.
Risk and control function HDC has a well-developed Risk Management Policy in place. Significant Council risks are reported to the ARC on a bi-monthly basis via the Risk Register. The Council’s Policy and Risk Register is up to date, well maintained, accurate and accessible. Further reports are produced as needed and the ARC has initiated ‘deep-dive’ reviews into risk topics of interest, as and when they emerge.
Risk mitigation is included in the Risk Register. There is a register of interests that lists all declared conflicts of interest for EMs; these are actively managed by the Mayor, the EMs, and those conflicted members themselves. The transparency offered by ward chairs enhances this process. The EMs demonstrated a very good understanding of conflict and the need to manage it, recognising that its elimination was unlikely.
Balanced budgeting HDC generally runs a balanced budget, however, where Council deems it prudent to do so, it will run an unbalanced budget. As set out in Section 5f of the LTP, HDC has a policy of smoothing both rates increases and also the funding of irregularly occurring expenditure over several years. This policy can cause surpluses or deficits in individual years; on the other hand it means that rates increases are gradual and predictable, producing less risk to funding streams. The net result is that HDC can forecast small deficits in 2017/18 through 2019/20, only to be offset by a small surplus in the third year of the LTP.
External assessments of performance HDC assesses its performance against established Government benchmarks. While it seeks to comply with fiscal benchmarks, there will be occasions when the Council considers non-compliance is prudent. On other occasions, Council may not meet some benchmarks, for example, the water rates (water by volume component) creates variability of income which can lead to breaches of the rates cap because water consumption is levied.
The HDC’s LTP has never been given an adverse opinion, disclaimer of opinion, or qualified opinion. HDC works toward clearing matters raised by both its external and internal auditors prudently. The HDC conducts its own risk assessment and actions items as they emerge against their own priorities, to avoid duplication of effort.
Fee setting processes and transparency The last LTP update attracted over 200 submissions, with more than 70 people attending community engagement events. The funding mix is outlined for each activity group. Importantly, Council knows and understands the limitations of the LTP planning cycle, which appears to reflect an air of optimism, and is comfortable about managing outcomes across three annual plans within the LTP cycle. Its willingness to actively manage the process, as opposed to simply adhering to it, is notable.
The Council sets fees and charges annually to reflect increases in costs or changes to charging structures. The fees and charges schedule is available on the Council website, as are key financial reports and annual reports. The monthly financial report is included in the EM’s agenda, which is also placed on the website.
Strengths
There is a shared understanding of financial management across EMs, CEO, ELT and budget managers, and there is no evidence of information asymmetry between EMs and council staff.
There is a robust understanding of the role of policy, what can be achieved by policy, and the limitations of policy that may necessitate interventions through effective deliberate management.
Council is shifting to a risk-based planning environment and is working to embed this approach across all long term planning.
Areas for improvement
There is a need for Council to identify gaps between community expectations and Council’s anticipated deliverables.
The management of rates arrears needs to be formalised and published.
The procurement policy/purchase order process needs to be refined to achieve consistency across the organisation.
Emergency responses may require greater investment.
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10 CouncilMARKTM
The Council’s delivery of core infrastructure services to meet community expectations is well managed. Bringing roading services back in-house has begun the recovery of asset knowledge.
Priority grading
Performing well
< Hauraki District Council is managing the cost of rising compliance and increasing demands on immediate infrastructure proactively. >
Asset management planning Council’s Asset Management Policy (AMP) recognises, and is consistent with, the district’s strategic direction, in particular, the district’s vision. Community outcomes are closely linked to each Council asset and activity, as outlined in the LTP.
The Council’s Infrastructure Strategy is closely aligned to the financial strategy. The strategy covers infrastructure services provided by the Council for water supply, wastewater, stormwater, land drainage and land transport (roading and footpath) activities in each of the three wards and across the broader district.
The HDC is facing a number of new infrastructure challenges due to rising compliance requirements. This is approaching the point of affecting the Council’s ability to deliver services at a reasonable cost, placing the pricing model under considerable stress. There are high levels of awareness of the impacts of climate change and changing land use, and the consequential impact on infrastructure.
Service delivery and service levels Versus Research was commissioned by HDC to conduct the 2016 Triennial Resident Satisfaction Survey, identifying the perceptions
that residents have on a wide range of services and facilities provided. The survey separates satisfaction by ward, rural/urban satisfaction, and across various demographics, including age groups and gender. The HDC also surveys the satisfaction of its residents and local businesses annually. The results of the last year, almost without exception, demonstrated a decline in service satisfaction across the district. HDC are working to understand the reasons for the decline and the appropriate responses.
The HDC has a Section 17A review programme in place and an internal project team to undertake this work. Council resolutions are passed not to undertake a review when it is determined that the cost of reviews outweighs the benefit. The current review programme was completed in late 2017. One important outcome was to bring the roading professional services activity back in-house. The end result appears to be cost neutral and knowledge positive. The link between planning and delivery is now shorter, more effective, and open to better outcomes.
Developing human resources
The HDC has a dedicated training budget for staff and has participated in the Australasian Management Challenge for four years. The Council invests in its people, and Council staff have a very open and supportive attitude towards the organisation in return. Staff core skills and training are documented in Vault. Staff productivity programmes are discussed as part of MeTime and progressed in accordance with the relevant manager, in an open and collegial manner.
The HDC is a participant in the PwC Australasian LG Performance Excellence Programme which provides a number of metrics with which their staffing levels and performance can be measured against similar councils.
Anticipating increased service demands Recent asset studies conducted by HDC reveal that wastewater network capacity is approaching its limits, due to raising the quality of outgoing discharge and increasing population. All discharge consents expire in the next five years. The capacity of existing wastewater treatment plants (in Kerepehi and Paeroa) will be stretched due to a combination of population growth and the new discharge standard constraints. The HDC is now measuring
Delivering what’s important Service delivery and asset management
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discharge to better understand where and when capacity constraints may exist. The HDC is also considering increasing capacity when required to increase discharge compliance requirements. The Council has just completed a 15 year strategy for its plants that has been embedded in the LTP.
Recovering roading The land transport activity is one of the Council’s biggest spend areas. The need to better understand roading was at the centre of the decision to bring service delivery back in-house. The actual state of all roads is now known to the Council. The Council has decided to increase operating costs to keep sealed and unsealed roads to a standard expected, and they are generally well maintained. The Council works closely with NZTA on road safety matters, including the Karangahake Corridor project, which may, or may not, result in substantial investment by central government. The Council does not provide public transport.
Serving communities The Council assesses the implications for the rating base of expected service levels in libraries, community and sports facilities, and parks, all of which are replicated, at least in part, across the three wards in the district as part of the development of the LTP and Revenue and Financing Policy.
User fees and charges (and targeted rates) are utilised with discretion as cost becomes prohibitive and could potentially impact the community’s use of the service. The use of user fees and charges and targeted rates is therefore balanced with other funding sources. The Council has integrated service delivery with other asset owners, i.e. the Ministry of Education and school pools.
Managing regulatory services The Council has a dog control/noise contract in place which has KPIs. However, this contract and the monitoring of the KPI’s could be better supported by a well-defined, as opposed to as needed enforcement strategy. Resource consent monitoring is included in the LTP and has non-performance monitoring.
The Council consistently meets the timeframes imposed under the RMA for making decisions on resource consents. This is reported to the Council on a monthly basis in the Group Manager – Planning and Environmental Services monthly report.
Planning for growth The draft Growth Strategy provides a statement of future development for the district over the next 30 years and incorporates future demographics, natural hazard information and infrastructure considerations. It provides a clear direction for the Council on future potential growth areas around existing settlements, which tend to be aspirational.
The Council’s Economic Development Strategy and Social Strategy have links with the Council’s district planning and the Council has committed to facilitating housing and business growth when it reviews it rules, including ensuring the district plan provides for sufficient serviced land for residential and business growth. The Council has recently adopted, for notification, the rural plan change for affordable housing. HDC has a keen understanding of the triggers for growth, and is now benefitting from proximity to greater Auckland.
Strengths
The Council understands projected demands on services and is comfortable about managing LTP expectations via annual plans.
Recovery of service delivery for roading to recapture knowledge and, potentially, deliver service less expensively.
Active and individual management of Section 17A reviews to ensure that the process creates value.
Areas for improvement
Asset management plans could make better links to the District Plan and Economic Development Strategy.
HDC needs to follow through on the survey results, to understand the real cause and any changes in service delivery required to meet expectations.
Asset register updates required for waste treatment plants.
Project management disciplines by way of a dedicated Project Management Office need to be implemented.
HDC may be better focusing on GDP per capita, as opposed to population growth.
The Council needs to develop an enforcement and regulatory compliance policy and strategy.
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12 CouncilMARKTM
The Mayor, elected members’, and Chief Executive’s commitment to effective communications within Council and with the broader community is outstanding. They are renowned across the district for their willingness to listen.
Priority grading
Stand out
< The Council is recognised nationally for producing accessible consultation documents in plain English without over-simplifying issues. Their use of a ‘road trip analogy’ was commended by the Office of the Auditor General. >
The Hauraki District Council (HDC) has an effective and well-developed communications strategy and a series of actions designed to engage with, and listen to, each of the local communities. The strategy is the result of coordinated activity between the EMs and Council staff. The communications strategy reflects the district’s vision, broad goals and objectives, and the LTP and annual work plan. Considerable effort is placed on communicating with local communities across each of the three wards, and with more defined communities and audiences within each ward as required, such as the Kaiaua ‘beach’ community of largely holiday homes.
The strategy is well understood by EMs and staff. While the strategy is one of being outbound, the primary function of the Council is to listen. An EM working party is deliberately focused on implementation of the communications strategy and, like the LTP and annual plan, it is understood to be a working document to be managed judiciously. The strategy provides a guide for all.
Enhanced by digital engagement The Council’s brand has recently been refreshed and is being rolled out in a phased process across the various digital platforms. The Council Facebook page has grown from 800 to approximately 4,000 followers in the past two years and the Council has just launched on Instagram. Council sees engagement via digital channels as a means of enhancing its communications strategy with various constituencies. It does not intend to replace the various other initiatives, including the real strength, which is the value placed by the community on the EMs, who are accessible and direct. Digital platforms could be further enhanced, but their role is viewed as being part of the suite of tools, not a substitute for any of them – and especially not a substitute for face-to-face contact.
Engagement with Māori The Council does not have a separate strategy for engaging with local iwi and hapu, instead preferring iwi liaison activity to facilitate input from Māori and iwi into democratic and community decision-making processes. The Council, and Council staff, recognise Māori and iwi as an important group within the community. The Council has committed to working with the Hauraki Collective post-settlement governance entity to establish a forum within 18 months following the signing of the Hauraki Collective Treaty Settlement. In 2011, the Council and representatives of Hauraki iwi established Te Mana Whenua Forum mo Te Rohe o Te Kaunihera Hauraki to provide Hauraki iwi and the Council a body through which both parties can discuss matters of common interest. However, it remains inactive because Hauraki iwi have been engaged with their own treaty settlement negotiations.
Deliberate conversations with young people The Council has sought to engage more with young people across the district via Instagram, Facebook and YouTube. During the development of the 2018 LTP, secondary school students were invited to the Council to learn about local government. The
Listening and responding Communicating and engaging with the public and businesses
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Council is also involved with the Secondary Schools Employment Partnership Programme.
Council staff and elected members also attend Business After 5 (BA5) meetings and engage with various community groups on a regular basis.
Recognised as effective communicators
The HDC’s documentation and response to engagement, starting with listening, are real strengths for the Council. Their documents are not only remarkably easy to follow, but are presented in a very fair and engaging manner.
Civil Defence in action
The HDC has Civil Defence community response plans that have been enacted twice in the last 12 months following adverse weather events (sustained heavy rainfall). The key result of these events, however, is the Council’s attitude towards risk. Over the last two years, the Council has developed a more advanced understanding of its role and attitude towards key infrastructure.
Strengths
The Council is both accessible and direct in its communication with the communities it serves, and EMs and Council staff are willing listeners.
Significant numbers of people are attracted to various Council forums.
The Mayor, EMs, Chief Executive and ELT are all accessible to ratepayers and the broader constituency.
Areas for improvement
Continued development of the digital communications interface may assist in reducing the time commitment to other engagement processes.
The HDC could provide more detail as to how funding levels for local and regional economic development are determined.
The CouncilMARK™ local government excellence programme is a proprietary programme operated by Local Government New Zealand (utilising independent assessors). The rating given to a council is an independent assessment of that council’s performance in certain areas, as at the time the rating was given. LGNZ does not accept any liability to any person whatsoever in relation to any rating, or the council’s participation in the programme. For more information, visit www.councilmark.co.nz
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