Agenda of Council Meeting

TRIM File No. CG-16-2-00175

HASTINGS DISTRICT COUNCIL

COUNCIL MEETING

Thursday, 7 May 2020

VENUE:

Virtual Meeting via Remote Access during the Period of the Covid-19 Pandemic Alert Level 3 & 4 Lockdown Period

TIME:

1.00pm

A G E N D A

1. Prayer

2. Apologies & Leave of Absence

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

At the close of the agenda no requests for leave of absence had been received.

3. Seal Register

4. Conflict of Interest

Members need to be vigilant to stand aside from decision-making when a conflict arises between their role as a Member of the Council and any private or other external interest they might have. This note is provided as a reminder to Members to scan the agenda and assess their own private interests and identify where they may have a pecuniary or other conflict of interest, or where there may be perceptions of conflict of interest.

If a Member feels they do have a conflict of interest, they should publicly declare that at the start of the relevant item of business and withdraw from participating in the meeting. If a Member thinks they may have a conflict of interest, they can seek advice from the General Counsel or the Manager: Democracy and Governance (preferably before the meeting).

It is noted that while Members can seek advice and discuss these matters, the final decision as to whether a conflict exists rests with the member.

5. Confirmation of Minutes

Minutes of the Council Meeting held Thursday 23 April 2020.

(Previously circulated)

6. Meridian Energy's Wind Farm Proposal on Tītīokura/Te Waka range - Petition 5

7. Re-Adoption of 2020/21 Draft Annual Plan and Development Contributions Policy 9

8. Hastings District Council COVID-19 Recovery Plan 15

9. Eastbourne - Frimley Reservoir Tender Evaluation 21

Attachment 1 to this report is confidential in accordance with the Local Government Official Information and Meetings Act 1987 Section 7 (2) (h) - The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.

10. Procurement Policy and Strategy 29

11. Local Governance Statement 33

12. Summary of Recommendations from the Hastings District Rural Community Board meeting held on 2 March 2020 35

13. Updated 2020 Meeting Schedule Changes 37

14. Items Under Action 41

15. Additional Business Items

16. Extraordinary Business Items

File Ref: 20/330

REPORT TO: Council

MEETING DATE: Thursday 7 May 2020

FROM: Strategy Manager

Lex Verhoeven

SUBJECT: Re-Adoption of 2020/21 Draft Annual Plan and Development Contributions Policy

1.0 EXECUTIVE SUMMARY - TE KAUPAPA ME TE WHAKARĀPOPOTOTANGA

1.1 The purpose of this report is to obtain a decision from the Council to adopt the following in accordance with the relevant provisions of the Local Government Act 2002.

· Draft Annual Plan 2020/21 supporting information as required by section 95A (3c);

· Draft Development Contributions Policy as required by section 102 (4b);

· Consultation Document as required by section 95 (2);

· Amendment to Revenue and Financing Policy as required by section 102 (2) (4b)

1.2 Elected members will recall that resolutions giving effect to the above were passed by Council on 19 March 2020. Due to the rapid changes brought about by the Covid-19 pandemic and our understanding of it, a resolution was subsequently passed on 24 March deferring the release of these documents until such time that further analysis of the impacts on Council and the community could be undertaken.

1.3 Councillors have since 24 March received a number of updates on Covid-19 related considerations, impacts, and options and choices. Those choices ranged from a 4% increase in rating requirement to a zero % increase in rating requirement.

1.4 Following consideration of these matters officers were given direction to amend the Draft Annual Plan so that it was better aligned with the current context and particularly to soften any rates impact on the community, but without compromising levels of service or creating further funding issues in the future for the community.

1.5 The optimal level that Council settled on after a range of considerations was an overall increase in rating revenue of 1.9%. This position also recognises that the Council can play a role in stimulating local economic activity (with a forecast capital works programme of circa $100 million) and that Central Government is appropriately leading in respect of financial support to businesses and employees. Having said that the budget does contain some capacity to assist locally where gaps in central government assistance may become apparent, and a rates relief package is also contained within the budget to assist ratepayers having difficulty meeting rates payments due to Covid-19.

1.6 It was also recognised that further expenditure cuts to deliver a zero rate requirement increase would begin to impact on renewal expenditure, which would only be deferring costs to the future.

1.7 The documentation presented for adoption gives effect to Council direction, with an increase in budgeted rating requirement across Council of 1.9% (excluding the change in the refuse/recycling service) on the previous financial year. This fiscal position is a reduction from the 4.6% position adopted by Council on 19 March prior to the impacts of Covid-19 being fully known, and is less than the 4.4% forecast in the 2018-28 Long Term Plan. Whilst the impacts on Council activities will still not be fully known for a number of months to come the revised Annual Plan makes allowances for various scenarios which have been run across Council’s significant activities.

1.8 In addition savings have been made in a number of areas, with particular focus on personnel costs and other related costs for the coming financial year. The budget contains operational savings of $1.8m but also importantly gives the Chief Executive flexibility as to how to deliver those savings over the course of the year. Providing a coherent picture of this at this time would be highly speculative and not considered to be in the best interests of the community, or the Council and its delivery of services.

1.9 A further aspect of the revised budget approach, is to utilise a portion of sale proceeds from the sale of the Orchard Road depot to fund potential additional Covid-19 costs and to place the balance of those proceeds in a contingency reserve to give Council some agility to respond to any unforeseen circumstances that may arise. Should these funds not be required they will be used to pay debt.

1.10 In summary the key drivers within the budget are as follows:

Extra costs

Reduced costs

§ Additional funds for forecast Covid-19 impacts on Council business including loss of revenue;

§ New initaitives in this plan (Food Hub, Cape Coast, Waipatu);

§ Looking after more and better parks;

§ Existing price escalations within forward maintenance contracts;

§ Public security improvements at some Council facilities.

§ Reductions in operational costs including personnel, training, travel and accommodation costs ($1.8m);

§ Operational efficiencies achieved within the drinking water activity, reducing the proposed increase in the targeted rate;

§ Other minor operational savings;

§ Partial use of sale proceeds from Orchard Road depot sale – balance of proceeds placed in a contingency reserve

1.11 In summary the revised budget position is now:

Total Increase

Rating Area One

Rating Area Two

2020/21 increase –

Including water levy

1.9%

2.2%

1.7%

1.12 In the same way that officers have explored ways to reduce rates for 2020/21 and provide assistance to ratepayers having difficulty meeting rates payments, a review of the development contributions charges has also been undertaken. Some minor changes have been incorporated that have reduced development contributions further with only minor amendments now proposed to the schedule of charges.

1.13 It is intended to make documentation publically available from May 9 2020. Arrangements to enable in person limited public access to the Council Chamber (assuming a Covid-19 alert level 2 status) will be explored further in the coming weeks. However, opportunity for face to face engagement will be dependent on what the restrictions allow.

1.14 The recommendations within this report are presented as the best balance for the community after consideration of numerous factors and recognising the difficulty and uniqueness of the situation brought about by the Covid-19 pandemic.

1.15 The objective of this decision relevant to the purpose of Local Government is to enable community participation in Council decision making processes as set out in the Local Government Act 2002.

1.16 This report concludes by recommending that the relevant documents set out within the resolutions be adopted for community feedback. Note: These will be circulated separately.

2.0 RECOMMENDATIONS - NGĀ TŪTOHUNGA

A) That the Council/Committee receives the report titled Re-Adoption of 2020/21 Draft Annual Plan and Development Contributions Policy.

B) That the Council revokes its earlier resolutions passed at the Council meeting dated 19 March 2020 in respect of the adoption of the Annual Plan, Development Contributions Policy and Consultation Document, noting that the Amendment to the Revenue and Financing Policy is still valid. That the Council now proceeds to pass the following resolutions:

C) That the Council adopt the supporting information required by section 95a (4) of the Local Government Act 2002 (The Draft Annual Plan 2020/21), the statement of matters attached under separate cover (CP-01-02-20-124), incorporating any amendments made at its meeting dated 7 May 2020.

D) That the Council adopt the Draft Development Contributions Policy in accordance with section 102 (4b) of the Local Government Act 2002.

E) That the Council adopt the Draft Annual Plan 2020/21 Consultation Document (incorporating Draft Development Contributions Policy, and amendment to Revenue and Financing Policy) pursuant to section 95 (2) of the Local Government Act 2002, incorporating any amendments made at its meeting of 7 May 2020.

F) That the Council revokes its earlier decision as to the use of the sale proceeds from the Orchard Road depot and resolves to place the proceeds from the sale within the Council’s contingency reserve, with any unspent funds used to repay debt.

G) That the Council delegate to the Chief Executive the correction of any drafting errors including any non-consequential omissions or amendments.

Attachments:

1 ⇩

Statement of Matters Annual Plan 2020-21 - Council meeting 19 March 2020

CP-01-02-20-124

File Ref: 20/348

REPORT TO: Council

MEETING DATE: Thursday 7 May 2020

FROM: Group Manager: Strategy and Development

Craig Cameron

SUBJECT: Hastings District Council COVID-19 Recovery Plan

1.0 EXECUTIVE SUMMARY - TE KAUPAPA ME TE WHAKARĀPOPOTOTANGA

1.1 The purpose of this report is for Council to adopt the Hastings District Council COVID-19 Recovery Plan (The Plan) which is marked to follow as a separate attachment to this agenda (Attachment 1).

1.2 The Plan is relevant to the purpose of Local Government as it presents the Council actions which will contribute to positive Social, Economic, Cultural and Environmental Outcomes for Hastings District and Hawke’s Bay Region as we recover from the effects of the COVID-19 Pandemic.

1.3 The report recommends that Council adopts The Plan and directs the Chief Executive to implement the Community and Economy focused Actions detailed in the Plan.

2.0 RECOMMENDATIONS - NGĀ TŪTOHUNGA

A) That Council receives the report titled Hastings District Council COVID-19 Recovery Plan.

B) That Council adopts the Hastings District Council COVID-19 Recovery Plan as attached to the report at (A) above.

C) That Council directs the Chief Executive to implement the Community and Economic focused Actions detailed in the Plan.

3.0 BACKGROUND – TE HOROPAKI

3.1 Under a Declared State of National Emergency the New Zealand Government Goal is to eliminate COVID-19 from New Zealand.

3.2 New Zealand was ordered into a Level 4 Lockdown on Thursday 26 March 2020 for a period of at least 28 days. The lockdown required all citizens to remain in their place of residence, being allowed to leave the residence for shopping, exercise and medical attention. Only essential workers could attend their workplace.

3.3 On Tuesday 28 April 2020 the Government reduced the state of restrictions to Level 3.

3.4 Level 3 Lockdown still imposes major restrictions with organisations required to manage physical distancing, gatherings still forbidden and people required to work from home if possible. Citizens are still required to remain in their place of residence and only have contact with others in their residence and close family connections.

3.5 Hastings like the rest of New Zealand is still in the midst of the Response to COVID-19.

3.6 COVID-19 presents as an extraordinary emergency and it is challenging to forecast how Recovery will work as;

· The full scale and scope of consequences won’t be realised for some time, possibly until New Zealand borders are opened and a vaccine is developed (which may be 12 to 18 months).

· There is a real likelihood the Response will continue at some level until New Zealand is vaccinated as we face the ongoing risk of COVID-19 re-establishing itself in New Zealand.

· The Ministry of Health is the lead agency in the New Zealand National Emergency Response. In addition to health consequences, the most significant consequences will be social and economic.

4.0 DISCUSSION - TE MATAPAKITANGA

4.1 The Plan represents a current Council summation of the actions we can lead and/or partner on in enabling Recovery. It will evolve over time in response to the evolution and hopefully elimination of the COVID-19 Pandemic. It is set at a strategic level. Many of the delivery actions will require their own project plans and quality Project Management.

4.2 In writing this plan, we fully acknowledge our role within the wider regional and national framework, which places responsibility for regional planning of Recovery from the Pandemic with our regional Civil Defence Emergency Management Group (as set out in the Civil Defence Emergency Management (CDEM) Act 2002). This approach reflects the need to plan for recovery at a strategic, regional level involving people across local authorities, the community, iwi, business, organisations and Government. Together, we will help our communities and our economies recover through an aligned approach.

4.3 Our Principles in the Plan reflect that Council is a participant in the Regional Recovery and adds value by respecting every stakeholder’s role and partnering well.

Principles

· Council takes an evidenced-based approach to inform and support decision making.

· Council will take a genuine engagement and a partnership approach in the ongoing design and delivery of The Plan.

· Council will work in partnership with iwi and mana whenua in the design, development and delivery of The Plan.

· Council will collaborate with Hawke’s Bay Councils, CDEM, government agencies, business, industry and community organisations and leaders to enable a two-way exchange of information about our opportunities and risks. We respect everyone’s role and will keep within our area of expertise such that we add value and refrain from creating confusion and duplication.

· Council will monitor and evaluate the progress and effectiveness of our management of Recovery, and adjust our approach where required.

· Council supports economic growth while protecting our fertile soils, waterways and environmental resources.

4.4 It is anticipated that Council’s main approaches in delivery of The Plan will be;

· Council leads procurement and projects where we have control over design and delivery.

· Partnership with other stakeholders where Council contributes to delivery of the particular Regional Recovery action as is appropriate for Council.

· Advocacy where the Council voice can add leverage to delivering the particular Regional Recovery action.

5.0 OPTIONS - NGĀ KŌWHIRINGA

Option One - Recommended Option - Te Kōwhiringa Tuatahi – Te Kōwhiringa Tūtohunga

5.1 Adopt the Hastings District Council COVID-19 Recovery Plan.

Advantages

· Having our own plan will help ensure Council understands our role in Regional Recovery and we are co-ordinated, effective and efficient in delivery of our Recovery Actions.

Disadvantages

· As discussed in section 3.5 and 3.6, we are in the extraordinary situation of being in the midst of a long term Response whilst needing to strategically plan for and start implementing Recovery Actions within a regional and national context. Failure to communicate our planning strategy properly could raise the perception that Council is rushing its Recovery and operating in isolation from other stakeholders.

· Council will need to carefully communicate that our Council Recovery Plan is about positioning Council to be a well prepared, managed and effective participant in the Regional Recovery. Our planning will evolve, assess and innovate in partnership with stakeholders and our communities as the Regional Recovery progresses.

Option Two – Status Quo - Te Kōwhiringa Tuarua – Te Āhuatanga o nāianei

5.2 Don’t adopt the Hastings District Council COVID-19 Recovery Plan.

· No advantages have been identified for Council taking an unplanned approach to enabling Regional Recovery from COVID-19.

· The disadvantage of this option is Council risks stepping outside of our role and areas of expertise in Regional Recovery and we are unco-ordinated, ineffective and inefficient in delivery of our Recovery Actions.

Attachments:

There are no attachments for this report.

SUMMARY OF CONSIDERATIONS - HE WHAKARĀPOPOTO WHAIWHAKAARO

Fit with purpose of Local Government - E noho hāngai pū ai ki te Rangatōpū-ā-rohe

The Council is required to give effect to the purpose of local government as set out in section 10 of the Local Government Act 2002. That purpose is to enable democratic local decision-making and action by (and on behalf of) communities, and to promote the social, economic, environmental, and cultural well-being of communities in the present and for the future.

This report is relevant to the purpose of Local Government as it presents the Council actions which will contribute to positive Social, Economic, Cultural and Environmental Outcomes for Hastings District and Hawke’s Bay Region as we recover from the effects of the COVID-19 Pandemic.

Link to the Council’s Community Outcomes - E noho hāngai pū ai ki te rautaki matua

This proposal promotes the well-being of our communities in the present and for the future.

Māori Impact Statement - Te Tauākī Kaupapa Māori

This proposal recommends full partnership with iwi.

Sustainability - Te Toitūtanga

This proposal enables long term and sustainable economic and community Recovery from the COVID-19 Pandemic.

Financial considerations - Ngā Whaiwhakaaro Ahumoni

This proposal is already budgeted in Councils draft 2020/21 Annual Plan.

Significance and Engagement - Te Hiranga me te Tūhonotanga

This report has been assessed under the Council's Significance and Engagement Policy as being of low significance in respect of requiring formal consultation – however The Plan does require Council to engage with and partner with as appropriate all stakeholders.

Consultation – internal and/or external - Whakawhiti Whakaaro-ā-roto, ā-waho

Council is consulting with all relevant Councils and Stakeholders regards Recovery actions for the COVID-19 Pandemic.

Risks: Legal/ Health and Safety - Ngā Tūraru: Ngā Ture / Hauora me te Haumaru

Financial risks are managed by Councils Annual Plan processes. Other Risks are mitigated by Risk Management as appropriate in the delivery of Recovery Actions for the COVID-19 Pandemic

Rural Community Board - Ngā Poari-ā-hapori

The Board has its Governance Role in respect of Council Recovery Actions for the COVID-19 Pandemic.

File Ref: 20/334

REPORT TO: Council

MEETING DATE: Thursday 7 May 2020

FROM: Director: Major Capital Works

Graeme Hansen

SUBJECT: Eastbourne - Frimley Reservoir Tender Evaluation

1.0 EXECUTIVE SUMMARY - TE KAUPAPA ME TE WHAKARĀPOPOTOTANGA

1.1 The purpose of this report is to seek approval from Council to award Contract No. CON2020024 – Urban Water Upgrade – Reservoir Procurement.

1.2 This contract forms part of the wider HDC Drinking Water Strategy and is an associated component of the approved $48m Major Water capital works programme, with an identified budget of $6m for the procurement of three reservoirs for the Frimley and Eastbourne sites.

1.3 A Request for Tender (RFT) was issued to three preselected tenderers on the 6th March 2020 for the design and build of 2 x 5,000m3 reservoirs at Eastbourne and 1 x 8,000m3 reservoir at Frimley, with tenders closing on 6th April 2020.

1.4 The RFT included the design, compliance and construction requirements for supplying three reservoirs using NZS3916:2013 as the contract template, for the Urban Drinking Water Upgrade programme. This included the construction of foundations and concrete floor, tank construction and installation of geodesic dome roofs for each structure. Complying tenders were submitted by;

· Tasman Tanks New Zealand Limited;

· Reliant Solutions Limited;

· Rendertech Limited

1.5 The tenders were evaluated using the price/quality premium method in accordance with the tender conditions. A comparison, as part of the non-price evaluation, was initially carried out between the tenders to highlight areas of difference between bids and to assess tenders against the contract design. Non-price attributes were scored by a team of three, including two HDC staff and one consultant, along with technical advisory support. The non-price attributes included preliminary design, relevant experience and track record, project management and methodology, health and safety and quality systems. Financial viability was also considered on a Pass/Fail basis. The contract and construction period is expected to run to June 2021.

1.6 The tenderer achieving the best non-price attribute scoring also provided the best tender price for this project.

1.7 This report concludes by recommending that Contract CON2020024 – Urban Water Upgrade – Reservoir Procurement be awarded to Reliant Solutions Limited for $5,107,174.70 (excl. GST).

1.8 This decision contributes to the purpose of local government by primarily promoting Social and Economic well-being of communities and more specifically through the Council’s strategic objective of providing safe and healthy drinking water.

1.9 Tenders were invited from three recognised suppliers of large scale potable water tanks, following advice and experience from other New Zealand Councils who have recently been involved in steel tank purchases.

· A decision was made to tender for epoxy coated steel bolted reservoir tanks due to their quick construction, track record, serviceability, comparative life span and competitive pricing.

· Three quality tenders were received for this project, with a clear non price order of priority identified between the tenderers.

· Reference and project checks of the preferred tenderer, along with their UK tank supplier, provided a high degree of confidence and surety for this project.

· The purchase of three tanks for both the Frimley and Eastbourne sites provides economies of scale, competitive pricing and confidence around compliance deadlines.

· The preferred tenderer provided a high quality complying tender bid, with very good references and a very competitive price, under the Council approved budget.

2.0 RECOMMENDATIONS - NGĀ TŪTOHUNGA

A) That the Council receives the report titled Eastbourne - Frimley Reservoir Tender Evaluation.

B) That the tender from Reliant Solutions Limited for Contract No. CON2020024– Urban Water Upgrade – Reservoir Procurement in the sum of $5,107,174.70 excluding GST be approved.

C) That delegated authority be granted to the Chief Executive to award cumulative contract variations to Contract No. CON2020024– Urban Water Upgrade – Reservoir Procurement within the remaining value of the approved project budget.

3.0 BACKGROUND – TE HOROPAKI

3.1 Significant above ground water storage was identified in the HDC Drinking Water Strategy as a necessary part of the proposed water treatment plant upgrades and resilience opportunities, following the 2016 Havelock North crisis.

3.2 Reservoir storage was included as a component part of the approved $48m Major Water capital works programme, established through the most recent LTP process.

3.3 The budget allocation for this component of work is $6m, which provides for 8,000m3 of storage at the Frimley site and 10,000m3 of storage at the Eastbourne site.

3.4 Significant work has been ongoing at both of these sites, of which the major components are;

· Establishment of new water supplies and bores;

· Design of new reticulation and pipelines between water supplies, new treatment plants and the existing network;

· Design of new water treatment plant facilities and buildings;

· The provisions of above ground water storage (the subject of this paper).

3.5 A number of options have been considered for water storage, with the primary options for large scale being;

· Reinforced concrete

· Steel bolted epoxy coated

· Steel bolted glass infused

· Wood.

3.6 Initial thinking included reinforced concrete on the basis of existing experience with the Havelock North reservoirs. This thinking then expanded to more recent experience with steel bolted tanks used by Tauranga City Council, purchasing both epoxy coated and glass infused tanks, along with experiences of a number of other New Zealand councils.

3.7 This along with indicative costing on concrete structures, being approx. 50% more expensive than comparative steel at this time has led to the advice of this paper in procuring steel bolted epoxy coated tanks for our applications.

3.8 The work proposed by Reliant Solutions Ltd in supplying the three reservoirs includes the following, by June 2021;

· Design, geotechnical investigations, modelling and peer review of detailed design, drawings and specifications.

· Supply of bespoke kitset epoxy coated steel tank components, shipped from UK.

· All site establishment and security facilities.

· The construction of the foundations and concrete floor structure for the tanks.

· The construction and erection of geodesic dome rooves.

· The construction of the tank structure and ancillary equipment.

· The testing, commissioning, disinfecting and handover of the completed project.

Tenders Received

3.9 Invited tenders were advertised on GET’s on 6 March 2020 with three sets of documents being uplifted by tenderers. Three complying tenders were received by the closing date of Monday 6th April 2020, ranging in price from $5,107,174.70 to $7,966,261.00.

Tender Evaluation

3.10 In accordance with the conditions of tendering, tenders were evaluated in line with the Price Quality Method.

3.11 These procedures require that where the tender includes Provisional Sums (work valued by the Principal and placed within the Schedule of Prices) they are deducted from the Tender Sum prior to evaluating each tender.

3.12 Scores for the non-price attributes were determined on the basis of information provided in each tender and the information gathered from referees nominated by the tenderers.

3.13 All three tenderers have proposed that the civil works, including excavation, foundation works and concrete placement, be carried out by Hawke’s Bay suppliers so a significant element of the work is to be carried out locally.

3.14 Reliant Solutions Ltd have undertaken several projects of a similar nature to the tendered works, including work for Hauraki DC, Palmerston North CC and Mt Isa CC. They have extensive experience in designing and constructing epoxy coated steel bolted potable water tanks. Reference interviews have been had with all three nominated projects.

3.15 The results of the tender evaluation process show that the tender submitted by Reliant Solutions Ltd achieved the lowest Premium Adjusted Price.

3.16 Reference checks on Reliant Solutions Ltd indicate that they are an experienced, highly skilled and well-resourced contractor able to meet the challenges of this project in a timely manner.

Value Engineering

3.17 Council’s tender documents provide for the opportunity to enter into discussion with the highest scoring tenderer or tenderer submitting the lowest price to explore possible value engineering opportunities, which could benefit the Council.

3.18 While not a significant number of value engineering opportunities, due to the quality and completeness of the bid, the following issues have been explored and considered in detail with Reliant Solutions Ltd:

· Architectural fittings to tanks

· Alternative pipe materials relative to tank

· Revision of dead storage provision

· Extended warranties

· Potential construction efficiencies between Frimley/ Eastbourne sites

3.19 Issues that can be incorporated in the current offer and tender price have been dealt with, while the remaining issues have been agreed to be dealt with in the detailed design phase. These detailed design issues can be accommodated within the remaining value of the approved budget.

Budget

3.20 Council’s LTP Approved Budget Allocation for this Project is $6,000,000.

3.21 There are no additional Council supplied materials proposed for this project.

3.22 NOTE: that NZS 3916:2013 provides for certain events and circumstances to be treated as variations, resulting in additional costs and time extensions. A Contingency Allowance of $400,000 will be allowed for these events.

Implementation Issues

3.23 Once final consent processes are complete there are no expected implementation issues with this contract.

4.0 DISCUSSION - TE MATAPAKITANGA

4.1 Significant effort and discussions have been had in determining an appropriate way forward for supplying large scale above ground water storage for the HDC urban drinking water upgrade project. While traditionally concrete constructed reservoirs have been the preference of the past in New Zealand, such as HDC storage in Havelock North, steel bolted reservoirs have become a viable alternative in more recent years due to their very competitive pricing, ease of construction and proven history in other parts of the world.

4.2 Both the UK and USA have a long history and experience with steel bolted tanks, in excess of 60 years. This along with more recent innovations such as tank coatings of epoxy resin or glass infusion have further enhanced the use of these types of tanks for potable water applications.

4.3 Taking account of this experience and the likely additional regulation requirements for drinking water in the near future is it expected that steel bolted tank supply will provide a competitive viable alternative to the typical concrete methods of construction used in the past.

4.4 Reliant Solutions Ltd UK tank supplier partner Permastore have installed some hundreds of thousands of tanks in over 110 countries globally. They also have extensive design experience, including seismic design, in similar countries to NZ, including Japan and South America and have constructed the largest water storage tanks in the world, with 2 x 29,000m3 in Dominican Republic.

4.5 Reliant Solutions Ltd are able to commit to a start date on receipt of tender acceptance.

5.0 OPTIONS - NGĀ KŌWHIRINGA

Option One - Recommended Option - Te Kōwhiringa Tuatahi – Te Kōwhiringa Tūtohunga

5.1 The tender process and evaluation has been carried out in accordance with the Council’s procurement policy and procedures. For the reasons outlined in the report above, the Council is recommended to approve the tender from Reliant Solutions Ltd.

6.0 NEXT STEPS - TE ANGA WHAKAMUA

6.1 This tender decision will allow the necessary arrangements to be confirmed:

· Commit to long (20 weeks) lead critical path items from off-shore (UK)

· Confirm timelines for preparatory site works and integration with other site project of new bores, reticulation, and construction of the water treatment plants.

· Further confirm budget refinements required for the 2020/21 LTP/ annual plan.

Attachments:

CON2020024 - Urban Water Upgrade Eastbourne / Frimley Reservoirs

Confidential in accordance with Section 7 (2) (h) of the Local Government Official Information and Meetings Act 1987

CG-16-2-00159

Under Separate Cover

SUMMARY OF CONSIDERATIONS - HE WHAKARĀPOPOTO WHAIWHAKAARO

Fit with purpose of Local Government - E noho hāngai pū ai ki te Rangatōpū-ā-rohe

Social and Economic

Link to the Council’s Community Outcomes - E noho hāngai pū ai ki te rautaki matua

Safe and Healthy Drinking Water

Māori Impact Statement - Te Tauākī Kaupapa Māori

N/A:

Sustainability - Te Toitūtanga

N/A:

Financial considerations - Ngā Whaiwhakaaro Ahumoni

See paragraph 3.20 -:3.23

Significance and Engagement - Te Hiranga me te Tūhonotanga

This decision has been assessed under the Council's Significance and Engagement Policy as being of Medium significance.

Consultation – internal and/or external - Whakawhiti Whakaaro-ā-roto, ā-waho

Significant community engagement as part of the Long Term and Annual Planning process

Risks: Legal/ Health and Safety - Ngā Tūraru: Ngā Ture / Hauora me te Haumaru

Water Safety is identified as a strategic risk in the Council’s Strategic risk Register.

Rural Community Board - Ngā Poari-ā-hapori

N/A:

File Ref: 20/327

REPORT TO: Council

MEETING DATE: Thursday 7 May 2020

FROM: Procurement Partnerships Manager

Angela Hirst

SUBJECT: Procurement Policy and Strategy

1.0 PURPOSE AND SUMMARY - TE KAUPAPA ME TE WHAKARĀPOPOTOTANGA

1.1 The purpose of this report is to brief Council on the revised Procurement Policy and Strategy.

1.2 These foundation documents form the structure from which Council’s procurement processes will be built - a Buyer’s Guide to Procurement resource for staff and a Supplier’s Guide for tendering businesses.

1.3 Procurement has been identified as one of Council’s strategic risks. Therefore the incorporation of risk assessment and assurance was a key driver, and will be incorporated across all aspects of the procurement lifecycle.

1.4 The report concludes by recommending that Council adopts the Procurement Policy and Strategy.

2.0 COUNCIL’S PROCUREMENT PROFILE & STRATEGIC CONTEXT

2.1 Council spends approximately $100 million annually on a variety of works, goods and services that enable the delivery of infrastructure, facilities and services for our community.

2.2 In undertaking procurement, Council must operate within a policy framework which includes wider Council strategic objectives and outcomes, Government legislative and regulatory frameworks and, for transport investment, the New Zealand Transport Agency (NZTA) procurement rules and guidance.

2.3 The procurement function within Council has three objectives: optimising public value, supporting the delivery of Council’s objectives through efficient and effective procurement, and to build procurement capability and capacity.

2.4 We are required every three years to produce a procurement strategy to meet our NZTA funding requirements as an ‘approved organisation’. The documents were provided to NZTA in December 2019.

2.5 Our draft Procurement Policy and Strategy (Attachments 1 and 2) were submitted to NZTA and have received very positive feedback and endorsement.

3.0 CHANGES TO GOVERNMENT PROCUREMENT RULES

3.1 The Government released a new set of procurement rules in October 2019 – The NZ Government Procurement Rules (4th Edition) 2019. The new rules placed specific requirements on the public sector and NZTA as a government agency which were reflected in their requirements for Council as an approved organisation.

3.2

The most significant changes to the requirements were the change from ‘value for money’ to ‘public value’, defined as not being solely focused on price, but about getting the best result over the whole life of the goods, services or works. This included the concept of ‘broader outcomes’, being that procurement can be used to support wider social, economic, cultural and environmental outcomes that go beyond the immediate purchase of goods and services.

3.3 The new Procurement Policy and Strategy positions Council strongly to support the region's recovery from COVID-19. The ‘public value’ concept developed by the Ministry of Business, Innovation and Employment (MBIE) enables procurement to focus beyond just obtaining the basis of achieving a ‘good price’ (i.e. value for money) to recognising the ability for Council procurement to deliver broader outcomes that will help our district recover strongly. It’s not about spending more but rather understanding that spend can deliver additional benefits, such as encouraging and supporting businesses to grow employment and skills training opportunities.

3.4 The framework enables Council to define its priorities such as supporting specific community groups (e.g. Maori and Pacifica) to achieve equitable outcomes.

3.5 It also enables Council to set standards relating to protecting our environment through the economic recovery, and meeting best practice health and safety and employment regulations to protect our workers.

4.0 HDC PROCUREMENT FRAMEWORK

4.1 The updated Procurement Policy and Strategy have been written to reflect the new requirements recognising that the Government Procurement Rules provide a good practice framework to guide Council in the delivery of ‘public value’. This includes taking into consideration the Government Procurement Charter and Rules, and reflecting the ‘Five Principles of Government Procurement’:

· get the right supplier

· plan and manage for great results

· play by the rules

· get the best deal for everyone

· be fair to all suppliers.

4.2 The Procurement Policy and Strategy are documents that lay the foundation for best practice procurement activities and a tool kit to follow. The Procurement Policy provides a framework to ensure consistent procurement practices across Council. It sets out the rules and requirements relating to procurement activity.

4.3 The Procurement Strategy has been developed to achieve Council’s strategic procurement objectives of optimising public value, supporting the delivery of Council’s objectives through efficient and effective procurement, and to build procurement capability and capacity in line with the strategic directives set out in the Long Term Plan. The Procurement Policy and Strategy will form the basis for a suite of key documents.

4.4 The next step (currently underway) is to update the Procedures Manual (2012), a staff operation and procedure guide which will be known as a ‘Buyer’s Guide to Procurement’, reflecting Government and Council good practice, and to develop a tool kit related to the delivery of broader outcomes.

4.5 The Buyer’s Guide to Procurement will be structured to reflect the MBIE procurement lifecycle of plan, source, and manage. Consisting of eight key stages, this approach places emphasis on the importance of planning to ensure better outcomes from Council spend. The updated procedures manual will enable the transfer of some of the additional detail that is currently included in the strategy document.

5.0 RECOMMENDATIONS - NGĀ TŪTOHUNGA

A) That Council receives the report titled Procurement Policy and Strategy

B) That Council adopts the updated Procurement Policy and Strategy.

Attachments:

1 ⇨	Procurement Policy	CG-16-3-00014	Under Separate Cover
2 ⇨	Procurement Strategy	CG-16-3-00015	Under Separate Cover

File Ref: 20/335

REPORT TO: Council

MEETING DATE: Thursday 7 May 2020

FROM: Manager: Democracy and Governance

Jackie Evans

SUBJECT: Updated 2020 Meeting Schedule Changes

1.0 PURPOSE AND SUMMARY - TE KAUPAPA ME TE WHAKARĀPOPOTOTANGA

1.1 The purpose of this report is to consider amendments to the schedule of Council and Committee Meetings for the 2020 Meeting Calendar which was adopted by Council on 10 December 2019.

1.2 The outbreak of the COVID-19 Pandemic and the introduction of movement and other restrictions as part of New Zealand’s Alert Level 4 and 3 actions to eliminate the virus has had a massive impact on the Council’s business as usual activity. In April all non-essential meetings were cancelled. It is now necessary to amend the meeting schedule in the short term to enable the Council to reprioritise its activities and divert staffing resources to where they are most needed to support the community and the economy.

1.3 All meetings are currently being held remotely via audio visual link until the Council is advised that it can relax the social distancing measures currently in place.

1.4 If necessary, extraordinary meetings will be called to deal with urgent decisions which cannot wait until the scheduled meeting.

1.5 This report recommends that the 2020 Meeting Schedule as amended below be adopted.

1.6 The Local Government Act 2002, Schedule 7, Clause 19 states:

(4) A local authority must hold meetings at the times and places that it appoints”.

(5) If a local authority adopts a schedule of meetings-

a) The schedule-

i) may cover any future period that the local authority considers appropriate, and

ii) may be amended

1.7 Although a local authority must hold the ordinary meetings appointed, it is competent for the authority at a meeting to amend the schedule of dates, times and number of meetings to enable the business of the Council to be managed in an effective way.

1.8 The following meetings are proposed to be included or amended in the 2020 meeting schedule:

· ~~12 May - Great Communities Subcommittee~~

· 12 May – COVID-19 Rapid Response Grants Subcommittee

· 19 May – COVID-19 Rapid Response Grants Subcommittee

· 19 May - Civic & Administration Subcommittee

· 20 May - Heretaunga Takota Noa: Maori Joint Committee (Informal)

· ~~21 May - District Development Subcommittee~~

· ~~25 May - Rural Community Board~~

• 26 May – COVID-19 Rapid Response Grants Subcommittee

· 27 May - Civic & Administration Subcommittee (Community Grants Subs)

· ~~28 May - Eco District Subcommittee~~

· ~~8 June -Council (Annual Plan Submissions) – Day 1~~

· 2 June – COVID-19 Rapid Response Grants Subcommittee

· 9 June – COVID-19 Rapid Response Grants Subcommittee (8.00 AM)

· 9 June - Council ~~(Annual Plan Submissions) – Day 2~~ (All Day meeting – Annual Plan/Budget Considerations)

· 15 June - Hastings District Rural Community Board

· 16 June – Civic & Administration Subcommittee

· 17 June – Landmarks Advisory Group

· 18 June – Strategy and Policy Committee

· 19 June – Joint Waste Futures (AM)

· 19 June – Omarunui Landfill Joint Committee (PM)

· 23 June – Operations and Monitoring Committee

· 25 June – Council (Adopt Annual Plan)

1.9 Councillors will be kept informed of specific changes on a day to day basis through the centralised calendar system.

2.0 RECOMMENDATIONS - NGĀ TŪTOHUNGA

A) That the Council receives the report titled Updated 2020 Meeting Schedule Changes dated 7 May 2020.

B) That the 2020 Meeting Schedule for May and June 2020 be updated at the dates and times indicated as follows:

12 May at 10.00 am – COVID-19 Rapid Response Grants Subcommittee

19 May at 10.00 am – COVID-19 Rapid Response Grants Subcommittee

19 May at 1.00 pm – Civic and Administration Subcommittee

20 May at 2.00 pm - Heretaunga Takota Noa: Maori Joint Committee (Informal)

26 May at 10.00 am COVID-19 Rapid Response Grants Subcommittee

27 May at – 9.30 am - Civic & Administration Subcommittee (Community Grants)

2 June at 10.00 am – COVID-19 Rapid Response Grants Subcommittee

9 June at 10.00 am – COVID-19 Rapid Response Grants Subcommittee

9 June at 10.00 am - Council

15 June at 2.00 pm - Hastings District Rural Community Board

16 June at 1.00 pm – Civic & Administration Subcommittee

17 June at 3.30 pm – Landmarks Advisory Group

18 June at 1.00 pm – Strategy and Policy Committee

19 June at 10.30 am – Joint Waste Futures Project Steering Committee

19 June at 1.00 pm – Omarunui Landfill Joint Committee (PM)

23 June at 1.00 pm – Operations and Monitoring Committee

25 June at 1.00 pm – Council (Adopt Annual Plan)

C) That whilst the country is at Alert level 3 and 4 all meetings will be held remotely via audio visual link. The choice of venues for future meetings will be subject to government direction on social distancing during alert level 1 and 2, and notified on the Council website.

Attachments:

There are no attachments for this report.

Items Under Action as at 24 April 2020
	Date Raised	Due Date	Completed	Description and Action	Lead Officer
1	27.11.19 Council	June 2020		The Hawke’s Bay Museums Trust Chair, Richard Grant, be invited to update the Council on the work being undertaken by the Trust.	Bruce Allan
2	3 .12.19 Council	May 2020		To make a decision on the amendment to the 2019/20 Development Contributions Policy	Ashley Humphrey
3	10.12.19 Council	2020		For new Councillors to visit the Cranford Redevelopment site.	Bruce Allan
4	20.2.20	April 2020	Finance 101 training scheduled for April	Rural/Urban Rates – briefing on how this is calculated and whether the split is equitable across the district	Bruce Allan
5	20.2.20	March 2020		Consider broadening representation on Hastings and Havelock North Business Associations to give another ward member the opportunity to be engaged	Mayor
6	23.4.20	May 2020		Report progress on the repayment of debt that is outstanding in relation to the Railway Station fire.	Bruce Allan
7	23.4.20	May 2020		Investigate options on how people are able to contribute to the Rapid Response Grants Fund – to boost those funds.	Alison Banks

Hastings District Council

Lyndon Road East, Hastings