council agenda - 24-04-19 - hauraki district · 2019-04-18 · 1 council agenda 24-04-19 doc. ref:...

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)

Council Agenda - 24-04-19


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



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.



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.



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.



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.



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



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



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



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



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



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



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



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


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.


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


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.


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.


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.


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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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


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.


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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.


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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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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


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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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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


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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


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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


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.


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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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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


Page | 1

Regional Procurement Principles, Policy and Framework for Waikato Councils

Reviewed By:

Position:

Date of latest review:


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


Page | 3

1. The Principles


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.


Page | 5

2. The Policy


Page | 6

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).


Page | 7

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.


Page | 8

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.


Page | 9

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;


Page | 10

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.


Page | 11

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.


Page | 12

3. The Frameworks


Page | 13

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.


Page | 14

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


Page | 15

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.


Page | 16


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.


Page | 17

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


Page | 18

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


Page | 19

PROCUREMENT UNDER $50,000 & LOW OR MEDIUM RISK


Page | 20

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


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


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?


Page | 21

PROCUREMENT UNDER $50,000 & LOW OR MEDIUM RISK STEP BY

STEP GUIDE


Page | 22


1. Procurement

Need







requisition.

2. Estimate Cost

and Risk






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.


Page | 23


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.


required.

Ensure all Procurement information is correctly recorded and filed.


Page | 24

PROCUREMENT BETWEEN $50,000 AND $250,000 & LOW OR MEDIUM RISK


Page | 25

No

No

Yes


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


Agree procurement person to manage project / spend

Complete the Procurement Plan or approved Project Plan or Business Case



Exemption approved?


Is the conflict resolved?


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


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?


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


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


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


Page | 29

PROCUREMENT BETWEEN $50,000 AND $250,000 & LOW OR MEDIUM

RISK STEP BY STEP GUIDE


Page | 30


1. Procurement

Need







requisition.

2. Estimate Cost

and Risk






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



6. Conflict of

Interest

resolution



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


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.


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.


Page | 31


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


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.




13. Procurement

Exemption Sign

Off




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


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


Page | 32


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.


Page | 33


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.


supplier(s) are HSE approved, if they are go to step 26.

25. HSE Approval

Process




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.




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



and any Insurance certificates required have been received.

If all aspects are agreed by the parties, go to step 30.


Page | 34


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.






required.


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


go to Step 39.

38. Contract /

Supplier

Management

Framework

Build the framework based on the agreed documentation in Step 36.


Page | 35


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.


Page | 36

PROCUREMENT OVER $250,000 & LOW OR MEDIUM RISK OR ANY

VALUE WITH HIGH RISK


Page | 37

No

No

Yes


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


Agree procurement person to manage project / spend

Complete the Procurement Plan or approved Project Plan or Business Case



Exemption approved?


Is the conflict resolved?


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


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


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?


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


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


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


Page | 42

PROCUREMENT OVER $250,000 & LOW OR MEDIUM RISK OR ANY VALUE

WITH HIGH RISK STEP BY STEP GUIDE


Page | 43


1. Procurement

Need







requisition.

2. Estimate Cost

and Risk






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



6. Conflict of

Interest

Resolution



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


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.


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).


Page | 44


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


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.




10. Procurement

Exemption Sign

Off




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


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.


Page | 45


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


Page | 46


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.


supplier(s) are HSE approved, if they are go to step 25.

24. HSE Approval

Process




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.




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.


Page | 47


28. Commercial

Negotiation



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.






required.


34. Contract /

Supplier

Management

Assess the need for on-going contract management and the level required, if


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


go to Step 38.


Page | 48


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.


Page | 49

COUNCIL SPECIFIC INFORMATION


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>


Page | 51

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


Page | 52

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


Person(s) authorised to approve

changes to this document

Role Effective date



Page | 53

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.


Page | 54

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.


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Information Report

To: Council

From: Group Manager Corporate Services

Date: Wednesday, 17 April 2019

File reference: Document: 2563802

Portfolio holder: Deputy Mayor Toby Adams


Subject: Financial Report for the Period to 31 March 2019.

Recommendation:


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.


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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


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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)


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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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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


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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 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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Community Development Financial MeasuresKey Indicators for the 9 months ending 31 March 2019


-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




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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Community Services Financial MeasuresKey Indicators for the 9 months ending 31 March 2019


-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




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


YTD Actuals YTD Budget


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


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Leadership Financial MeasuresKey Indicators for the 9 months ending 31 March 2019


-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


YTD Actuals YTD Budget


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


of 2

Decision Report

To: Council

From: Finance Manager


File reference: Document: 2563719 Appendix A: 2563716

Portfolio holder: Toby Adams


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.


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


1

PROPOSED SENSITIVE EXPENDITURE POLICY


Attachment A

http://www.hauraki-dc.govt.nz/Overview/Pumphouse_md.jpg

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:



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



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


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



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



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.



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.



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



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.



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.



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.


http://www.oag.govt.nz/

http://www.oag.govt.nz/2007/sensitive-expenditure/part8.htm

http://www.oag.govt.nz/

http://www.oag.govt.nz/2007

http://www.oag.govt.nz/2007/sensitive-expenditure

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Decision Report


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)


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)


Sports Group: Council land and buildings (example : Paeroa Croquet Club)


Sports Group: Council land (example: Paeroa Bowling Club)


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.


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.


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


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)


Community Group: Council land (example:Waihi Scout Group)



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Sports Group: Council land and buildings (example : Paeroa Croquet Club)


Sports Group: Council land (example: Paeroa Bowling Club)


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


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


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


Council Agenda - 24-04-19 Appendix A


Appendix B

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Decision Report


From: Transportation Manager


File reference: Document: M2550338 Appendix A: Proposed CAR Fee Structure

Portfolio holder: Councillor Adams


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


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.


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


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


From: Group Manager Planning and Environmental Services

Date: Monday, 1 April 2019

File reference: Document: M2557145

Portfolio holder: Councillor Paul Milner


Subject: Planning and Environmental Services Report – March 2019

Recommendation:


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


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.


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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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


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


charan

FreeText

Appendix B

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



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


http://archive.stats.govt.nz/Census/2013-census/profile-and-summary-reports/quickstats-about-a-place.aspx?request_value=13645&parent_id=13631&tabname=#13645

http://archive.stats.govt.nz/Census/2013-census/profile-and-summary-reports/quickstats-about-a-place.aspx?request_value=13645&tabname=Culturaldiversity

http://www.localcouncils.govt.nz/lgip.nsf/wpg_URL/Profiles-Councils-Hauraki-District-Council-Main?OpenDocument

https://transport.govt.nz/resources/tmif/infrastructureandinvestment/ii002/

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.



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


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



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.


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



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.


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.


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



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.


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.


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



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.


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
