Meeting Agenda

Council Agenda (11 December 2018) - Agenda

MEETING AGENDA

COUNCIL

Tuesday 11 December 2018 at 3.30pm

COUNCIL CHAMBER LIARDET STREET NEW PLYMOUTH

Chairperson: Mayor Neil Holdom Members: Cr Richard Jordan (Deputy) Cr Shaun Biesiek Cr Gordon Brown Cr Murray Chong Cr Harry Duynhoven Cr Richard Handley Cr Stacey Hitchcock Cr Colin Johnston Cr John McLeod Cr Alan Melody Cr Mike Merrick Cr Marie Pearce Cr Roy Weaver Cr John Williams

1 Council Agenda (11 December 2018) - Agenda

Purpose of Local Government The reports contained in this agenda address the requirements of the Local Government Act 2002 in relation to decision making. Unless otherwise stated, the recommended option outlined in each report meets the purpose of local government and:

 Will help meet the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost-effective for households and businesses;

 Would not alter significantly the intended level of service provision for any significant activity undertaken by or on behalf of the Council, or transfer the ownership or control of a strategic asset to or from the Council.

END

2 Council Agenda (11 December 2018) - Health and Safety

Health and Safety Message

In the event of an emergency, please follow the instructions of Council staff.

Please exit through the main entrance.

Once you reach the footpath please turn right and walk towards Pukekura Park, congregating outside the Spark building. Please do not block the foothpath for other users.

Staff will guide you to an alternative route if necessary.

If there is an earthquake – drop, cover and hold where possible. Please be mindful of the glass overhead.

Please remain where you are until further instruction is given.

3 Council Agenda (11 December 2018) - Apologies

APOLOGIES

Mayor Holdom

4 Council Agenda (11 December 2018) - Deputations

ADDRESSING THE MEETING Requests for public forum and deputations need to be made at least one day prior to the meeting. The Chairperson has authority to approve or decline public comments and deputations in line with the standing order requirements.

PUBLIC FORUM Public Forums enable members of the public to bring matters to the attention of the committee which are not contained on the meeting agenda. The matters must relate to the meeting’s terms of reference. Speakers can speak for up to 5 minutes, with no more than two speakers on behalf of one organisation.

 None advised

DEPUTATIONS Deputations enable a person, group or organisation to speak to the meeting on matters contained on the agenda. An individual speaker can speak for up to 10 minutes. Where there are multiple speakers for one organisation, a total time limit of 15 minutes, for the entire deputation, applies.

 None advised

5 Council Agenda (11 December 2018) - Previous Minutes

PREVIOUS COUNCIL MINUTES Recommendation That the minutes of the following meeting of the Council, and the proceedings of the said meeting, as circulated, be taken as read and confirmed as a true and correct record:

6 November 2018 29 November 2018 (Extraordinary)

COMMITTEE MINUTES Recommendation That the minutes of the following meetings, as circulated be received and: a) Decisions made under delegated authority by the committees be incorporated in the minutes of this meeting of the Council. b) Recommendations made by committees be included in the business to be considered at this meeting of the Council.

Performance Committee 28 November 2018 Audit and Risk Committee 20 November 2018

END

6 Council Agenda (11 December 2018) - Table of Contents

REPORTS

1 Performance Committee Recommendations

Min 3 Health & Safety Quarterly Report – Period Ending 30 September 2018

Min 4 Procurement Policy Review

2 Audit and Risk Committee Recommendations

Min 4 Update to Council’s Delegations Register

3 Exclusion of the Public from the Remainder of the Meeting

7 1 Council Agenda (11 December 2018) - Performance Committee recommendations

SUPPLEMENTARY REPORT:

HEALTH AND SAFETY QUARTERLY REPORT UPDATE

PURPOSE The purpose of this report is to update the information provided to the Performance Committee on 28th November 2018.

RECOMMENDATION That, having considered all matters raised in the report, the report be noted.

SIGNIFICANCE AND ENGAGEMENT This report is provided for information purposes only, and has been assessed as being of some importance.

DISCUSSION The dashboard provided with the Health and Safety Quarterly Update to the Performance Committee included reference to a structural collapse.

The incident was not a physical structural collapse but recorded a tenant entering a restricted area without authorisation. As part of the Council’s Health and Safety reporting all incidences which could potentially result in a critical incident are recorded and linked to an identified critical risk.

This incident has subsequently been reclassified. An updated Dashboard is attached (Appendix 3 in the agenda).

FINANCIAL AND RESOURCING IMPLICATIONS There are no financial or resourcing implications.

IMPLICATIONS ASSESSMENT This report confirms that the matter concerned has no particular implications and has been dealt with in accordance with the Local Government Act 2002. Specifically:  Council staff have delegated authority for any decisions made;  Council staff have identified and assessed all reasonably practicable options for addressing the matter and considered the views and preferences of any interested or affected persons (including Māori), in proportion to the significance of the matter;

9 1 Council Agenda (11 December 2018) - Performance Committee recommendations

 Any decisions made will help meet the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost-effective for households and businesses;  Unless stated above, any decisions made can be addressed through current funding under the Long-Term Plan and Annual Plan;  Any decisions made are consistent with the Council's plans and policies; and  No decisions have been made that would alter significantly the intended level of service provision for any significant activity undertaken by or on behalf of the Council, or would transfer the ownership or control of a strategic asset to or from the Council.

APPENDICES Updated Dashboard 4 December 2018.

Report Details Prepared By: Ben Brown (Health and Safety Manager) Team: People and Wellbeing Approved By: Andrea Smith (General Manager Organisational Development) Ward/Community: District wide Date: 4th December 2018 File Reference: ECM 1570554

------End of Report ------

10 1 Council Agenda (11 December 2018) - Performance Committee recommendations

PERFORMANCE COMMITTEE RECOMMENDATIONS

3. Health & Safety Quarterly Report – Period Ending 30 September 2018 ECM7887399 This report presents the Health and Safety Quarterly Report for the period ended September 2018 as part of the Due Diligence obligations (Officers Charter - Obligation 4).

Performance Committee Recommendation Cr Johnston ) Cr Pearce ) That, having considered all matters raised in the report, the report be noted. Carried

4. Procurement Policy Review ECM7863807 The matter for consideration by the Council is acceptance of a reviewed procurement policy and manual with introduction of a procurement strategy.

A procedural motion was moved: Cr Jordan ) Cr Williams ) That, having considered all matters raised in the report, the matter be left to lie on the table pending further work on the draft Procurement Policy 2018, and that it be returned to the Performance Committee for further consideration, as soon as practicable, in 2019. Carried

Report Details Prepared By: Nadia Phillips (Committee Adviser) Team: Governance Approved By: Julie Straka (Governance Lead) Ward/Community: District wide Date: 1 December 2018 File Reference: ECM 7890762

------End of Report ------

11 1.1 Council Agenda (11 December 2018) - Performance Committee recommendations

HEALTH & SAFETY QUARTERLY REPORT – PERIOD ENDED SEPTEMBER 2018 – DUE DILIGENCE OBLIGATIONS

PURPOSE

1. This report presents the Health and Safety Quarterly Report for the period ended September 2018 as part of the Due Diligence obligations (Officers Charter - Obligation 4).

RECOMMENDATION That, having considered all matters raised in the report, the report be noted.

SIGNIFICANCE AND ENGAGEMENT

2. This report is provided for information purposes only, and has been assessed as being of some importance because of the potential implications that Officers and the Council face if due diligence obligations are not met. As this matter relates specifically to Officers, public consultation is not required.

DISCUSSION

3. HSWA 2015 came into force on 4 April 2016. It is the most significant change in New Zealand employment law in recent times. The purpose of the Act is to secure the health and safety of workers and workplaces in New Zealand. The Act has been designed to incorporate health and safety at all levels within an organisation, particularly senior leadership and explicitly defines the Elected Members and the Chief Executive as Officers.

4. An Officer is a person who holds a very senior leadership position and has the ability to significantly influence the management of a Person Conducting a Business or Undertaking (PCBU) e.g. The Council. Every Officer has a duty.

5. In order to meet his or her due diligence obligations, an Officer must take all reasonably practicable steps to address six key obligations. In response to these obligations, Elected Members in July 2016 adopted a Due Diligence Framework and an Officers Charter. Obligation Four under the framework requires Officers to ensure there is appropriate reporting and investigation processes in place and elected member reporting as specified in the Officers Charter. This report presents the Health and Safety Quarterly Report for the period ended 30 September 2017 under that framework.

FINANCIAL AND RESOURCING IMPLICATIONS

6. There are no financial or resourcing implications relating to the report. However, failure to meet due diligence obligations could result in fines and improvement notices.

12 1.1 Council Agenda (11 December 2018) - Performance Committee recommendations

IMPLICATIONS ASSESSMENT

7. This report confirms that the matter concerned has no particular implications and has been dealt with in accordance with the Local Government Act 2002. Specifically:  Council staff have delegated authority for any decisions made;  Council staff have identified and assessed all reasonably practicable options for addressing the matter and considered the views and preferences of any interested or affected persons (including Māori), in proportion to the significance of the matter;  Any decisions made will help meet the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost- effective for households and businesses;  Unless stated above, any decisions made can be addressed through current funding under the Long-Term Plan and Annual Plan;  Any decisions made are consistent with the Council's plans and policies; and  No decisions have been made that would alter significantly the intended level of service provision for any significant activity undertaken by or on behalf of the Council, or would transfer the ownership or control of a strategic asset to or from the Council.

APPENDICES (Attached as a separate document) 1. Health & Safety Due Diligence Report – Quarter 1 (01/07/2018 – 30/09/2018) “Dashboards – LEAD and LAG”

Report Details Prepared By: Ben Brown (HSE Manager) Team: People & Wellbeing Approved By: Andrea Smith (Group Manager Organisational Development) Ward/Community: District Wide Date: 30 September 2018 File Reference:

------End of Report ------

13 1.1 Council Agenda (11 December 2018) - Performance Committee recommendations

Health and Safety Due Diligence Report - Quarter 1 (01/07/2018 - 30/09/2018) Our Priority: Drive a culture of health and safety leadership and a commitment to zero harm LEAD

3. ICAM Investigations 6. Contractor Management

Contractors with current H&S prequalification 382

Contractor Management Module (Pinnacle System) due to be released in Q2 - October 2nd which will enable NPDC to track all prequalification processes, on site inductions, audits and compliance documents in one platform and ensure that our contractors supply us with relevant information. 4. Training to mitigate critical risk

• H&S Courses undertaken • Recovery: e.g. First Aid; Fire warden • Preventative: e.g. Traffic Control; Construction Safety; Driving; 134 Audit created, 2 audits failed, 80 completed or passed

5. Engagement and Wellness Initiatives 7. Hazards and Procedures

Wellness Initiatives - Delivered: Basement Project (Pilates, Massages, EnableMe, Push Up Hazard Management Module in Pinnacle released on 21st March. Internal training Challenge); Fresh Air Challenge for employees to identify operational hazards and assess risk associated with those hazards. In addition, they will have the ability to create activity based Planned: The Biggest Loser Hazard ID Forms, to consistently plan and organise work by breaking the job down into the various activities, identifying hazards and risks associated with Value add Meetings and Forums: each task and documenting effective preventative and mitigating controls. Taranaki ACC Business Customer Seminar

14 1.1 Council Agenda (11 December 2018) - Performance Committee recommendations

Health and Safety Due Diligence Report - Quarter 1 (01/07/2018 - 30/09/2018) Our Priority: Drive a culture of health and safety leadership and a commitment to zero harm LAG

1. Events 2. Events by Critical Risk this Quarter

Lost Time Incidents: Wrist fracture, fall on stairs (18/07/18) Back injury cleaning kennels (01/08/18)

Medical Treatment Incidents:

Neck strain (07/08/18) Elbow strain, washing task (03/09/18) Dog bite (11/09/18)

• Key Points - No trends identified in Quarter 1 Critical Risk incidents by category (Year to date)

• Critical Risks - a committment to establish a revised Critical Risk Framework that will enable NPDC to effectively manage H&S risks commenced in Q3 2018 (Jan-Mar). • We are conducting a full risk assessment of all items within the critical risk framework to determine an accurate risk ranking, apply a thorough risk identifiication, reduction and control process and develop detailed risk protocols to promote critical risks relevant to NPDC and individual Business Units. • Bow-tie diagrams are being developed as a simple and effective tool for communicating risk assessment results to employees at all levels and display the links between the potential causes, preventative and mitigative controls and consequences of a major incident. • Critical Risk protocols for each category of risk will help to summarise the preventative controls deemed necessary to prevent fatalities, serious incidents and injuries arising from the most common hazards and associated risks encountered by our business activities.

15 1.2 Council Agenda (11 December 2018) - Performance Committee recommendations

Health and Safety Due Diligence Report - Quarter 1 (01/07/2018 - 30/09/2018) Our Priority: Drive a culture of health and safety leadership and a commitment to zero harm LAG

1. Events 2. Events by Critical Risk this Quarter

Lost Time Incidents: Wrist fracture, fall on stairs (18/07/18) Back injury cleaning kennels (01/08/18)

Medical Treatment Incidents:

Neck strain (07/08/18) Elbow strain, washing task (03/09/18) Dog bite (11/09/18)

• Key Points - No trends identified in Quarter 1 Critical Risk incidents by category (Year to date)

16 1.2 Council Agenda (11 December 2018) - Performance Committee recommendations

Health and Safety Due Diligence Report - Quarter 1 (01/07/2018 - 30/09/2018) Our Priority: Drive a culture of health and safety leadership and a commitment to zero harm LEAD

3. ICAM Investigations 6. Contractor Management

Contractors with current H&S prequalification 382

• H&S Courses undertaken • Recovery: e.g. First Aid; Fire warden • Preventative: e.g. Traffic Control; Construction Safety; Driving; 134 Audit created, 2 audits failed, 80 completed or passed

5. Engagement and Wellness Initiatives 7. Hazards and Procedures

Wellness Initiatives - Delivered: Basement Project (Pilates, Massages, EnableMe, Push Up Hazard Management Module in Pinnacle released on 21st March. Internal training Challenge); Fresh Air Challenge for employees to identify operational hazards and assess risk associated with those hazards. In addition, they will have the ability to create activity based Hazard ID Planned: The Biggest Loser Forms, to consistently plan and organise work by breaking the job down into the various activities, identifying hazards and risks associated with each task and Value add Meetings and Forums: documenting effective preventative and mitigating controls. Taranaki ACC Business Customer Seminar

17 1.3 Council Agenda (11 December 2018) - Performance Committee recommendations

PROCUREMENT POLICY REVIEW

MATTER

1. The matter for consideration by the Council is acceptance of a reviewed procurement policy and manual with introduction of a procurement strategy.

RECOMMENDATION FOR CONSIDERATION That having considered all matters raised in the report: a) Procurement Policy P08-005 be revoked b) That the New Plymouth District Council Procurement Policy 2018 be adopted.

TE HUINGA TAUMATUA RECOMMENDATION That, having considered all matters raised in the report, the draft Procurement Policy 2018 be returned to management for further work on issues raised.

Committee Adviser’s Note The attachments to this report have not been amended subsequent to the Te Huinga Taumatua meeting and above recommendation. Should the Te Huinga Taumatua Recommendation be accepted, the changes requested would be made as part of management’s further work on the issues raised.

COMPLIANCE

Significance This matter is assessed as being of some importance. This report identifies and assesses the following reasonably practicable options for addressing the matter:

Options 1. Revoke the current policy and adopt the proposed policy

2. Not adopt the proposed policy

The persons who are affected by or interested in this matter Affected persons are the wider community.

Recommendation This report recommends option 1 for addressing the matter.

Long-Term Plan / Annual Plan No Implications

Significant Policy and Plan No Inconsistencies

18 1.3 Council Agenda (11 December 2018) - Performance Committee recommendations

EXECUTIVE SUMMARY

2. This report recommends the adoption of a new Procurement Policy.

3. The new policy more has greater alignment with guidance from the Office of the Auditor General (OAG) and the Ministry of Business, Innovation and Employment (MBIE).

4. The policy also provides clarity and transparency for the public, particularly goods and services providers regarding the Council’s approach to procurement.

BACKGROUND

5. Procurement includes the processes associated with purchasing goods and services in order to achieve the aspirations of the Council, to meet the budgets and levels of service in the Long-Term and Annual plans and to achieve the best outcome for the district.

6. The current Procurement Policy was adopted in 2008. The policy was reviewed in 2013. At that time the Council resolved to make no change to the Policy.

7. It is considered the Council procurement actions require direction and alignment with the Office of the Auditor General and Ministry of Business, Innovation and Employment guidance. The policy provides focus on the legislation to be adhered to and highlight the importance of social, economic and environmental impacts of procurement.

8. The Council currently has a procurement manual which provides guidance for staff when procuring goods and services. The manual will continue to guide procurement actions whilst, encouraging engagement with the procurement department from the outset of any supply chain activity. Changes identified in the recent procurement review have also been implemented into the Policy and will be incorporated into procurement manual updates

9. The Council is currently without a direct procurement strategy. An introduction of a procurement strategy which has been developed alongside the new policy provides clear and present expectations of the Council’s procurement actions. This also outlines key improves identified in the procurement audit to provide an efficient procurement process, eliminate and manage risk, while increasing financial visibility.

10. In summary the updated policy, strategy and manual will aid:

 Complete management guidance of any goods, works or services procured by the Council.

19 1.3 Council Agenda (11 December 2018) - Performance Committee recommendations

 Framework for Council officers to act with transparency, fairness and equality when procuring goods, works or services.

 Focus on opportunity and innovation while considering sustainable, environmental and social impacts.

 Compliance with procurement legislation and government rules of sourcing.

 Emergency procurement guidance.

 Enhanced risk assessments and due diligence for procurement actions.

 Efficient and effective procurement process.

 Increased visibility of Council contracts at all levels of value.

SIGNIFICANCE AND ENGAGEMENT

11. In accordance with the Council's Significance and Engagement Policy, this matter has been assessed as being of some importance. While there is likely to be high public interest in the procurement processes of goods and services, procurement is the implementation phase of decisions that have already been made in the LTP and annual plans. The significance of the projects is assessed when developing work plans.

OPTIONS

12. The following options assessment covers the following two options.

Option 1 Revoke the current Procurement Policy and Adopt the New Policy

Option 2 Not adopt the revised Procurement Policy a) Financial and Resourcing Implications Development of the proposed policy has occurred within existing budgets. The content of the policy is not expected to have any financial or resourcing implications as it sets out the procurement processes based on transparency, fairness and ethical actions. b) Risk Analysis Adoption of the proposed policy will reduce risk of challenge to the Council’s procurement processes.

20 1.3 Council Agenda (11 December 2018) - Performance Committee recommendations

c) Promotion or Achievement of Community Outcomes The proposed policy outlines how procurement contributes to the Community Outcomes. d) Statutory Responsibilities The Council’s purchasing activities must be in accordance with its legal responsibilities. Fundamentally the Council’s public law obligation is always to act fairy and reasonably, and in keeping with the law. This imposes a higher standard of conduct that that which may apply in the private sector.

While the Council is not legally bound to comply with the OAG and MBIE guidance, its procurement actions and decisions could be subject to judicial review or a complaint to a judicial body such as the Ombudsman. It could be expected that in investigating such a complaint a comparison would be made between the OAG guidance and the Council’s policies and procedures. e) Consistency with Policies and Plans The procurement documents have been created in accordance with the Local Government Act 2002, government rules of sourcing and MBIE mastering procurement. All documents support the Councils long term and annual plans, while aligning with the infrastructure procurement strategy. f) Participation by Māori There has no participation by Māori in development of the proposed policy. g) Community Views and Preferences Procurement processes are likely to be of interest to many in the community, particularly those that supply goods and services to the Council. h) Advantages and Disadvantages The proposed policy clearly outlines the Council’s approach to procurement in a transparent manner to ratepayers and providers of goods and services.

APPENDICES Appendix 1 Proposed Procurement Policy

Appendix 2 Current Procurement Policy (recommended for revocation)

Appendix 3 Proposed Procurement Strategy

Report Details Prepared By: Richard Gater (Procurement Lead) Team: Business Services Approved By: Alan Bird Ward/Community: District Wide Date: 25/10/2018 File Reference: ECM 7863807

------End of Report ------

21 1.3 Council Agenda (11 December 2018) - Performance Committee recommendations

New Plymouth

District Council

Procurement

Policy 2018 Version 4

22 1.3 Council Agenda (11 December 2018) - Performance Committee recommendations

New Plymouth District Council Procurement Policy

Purpose & Scope The purpose of this procurement policy is to provide guidance to suppliers and staff of New Plymouth District Council to achieve the outcomes of New Plymouth’s long term plan and vision for the future. This policy provides clear intentions to suppliers, contractors and the community on the key areas the Council will consider throughout the procurement process. This policy and the New Plymouth District Council procurement manual outline the strategic approach that the council will take to planning, sourcing and managing its procurement activities. The Council is committed to negotiating with suppliers in a fair, open and transparent manner, while ensuring maximum value for the procurement of goods, works and services.

Our Procurement Procurement covers all the business processes associated with purchasing the goods/services/works the Council use to run the business and deliver public service objectives. Procurement starts with identifying the needs, then planning the effective and efficient way to meet them; continuing through to sourcing the goods/services/works then managing the contract; and ends with the expiry of either the contract or the assets useful life. This also includes the relationship management and review of suppliers involved. The Councils approach to procurement will be dependent on the value, complexity and the risks involved. Each individual act of procurement will be in alignment with the council’s objective.

Building a Lifestyle Capital New Plymouth District Council aspire to “Building a Lifestyle Capital”. This aspiration is underpinned by three focal points; People, Place and Prosperity. How the Council procures goods, works and services will be pivotal to ensure the delivery of the best outcomes for these focal points. The Council’s procurement activity will be underpinned by

 Putting People first  Caring for our Place  Supporting a Prosperous community

Putting People first The Council recognises that procurement has a profound effect on the people of New Plymouth District. Procurement has an important commitment to effectively engage our community and achieve the best results for social, economic, cultural and environmental outcomes when procuring goods, works and services. In order to achieve these outcomes a reliable, efficient and community focused process will optimise our procurement operations.

Through increased planning, reporting and analysing the Council will be in a desirable position to make well informed procurement decisions. Providing an opportunity to eliminate waste and achieve value for money which will contribute to the reduction of project, contract and whole-of-life costs. In turn, the council, suppliers and the community can invest in their people’s wellbeing and development.

23 1.3 Council Agenda (11 December 2018) - Performance Committee recommendations

Caring for our Place New Plymouth District Council has a responsibility to understand the impacts of their procurement decisions and how they affect the environment and local infrastructure. The Council identifies that procurement has a key role in getting the right supplier, the right level of service and to provide the right community support.

The Council’s frontline procurement will provide focus on building local economies to create long lasting value and a community that stands the test of time. Procurement will aid facilitation of “Building a lifestyle capital” through vision, planning and smart investments.

Supporting a Prosperous community The development of New Plymouth as a sustainable thriving city lies at the heart of what we are trying to achieve. This requires a sustainable and vigorous local economy with a range that can deliver local services, innovate and provide local prosperity. The more money that is spent locally, the greater the positive impact this will have on the local economy and particularly the sustainability of community organisations, small and medium sized businesses.

The procurement section actively seeks a more reliable and efficient customer focused service delivery. The strategic approach to procurement in the early stages of planning and using accurate data allows the optimisation of local suppliers for goods, works and services.

Through procurement the council aspires to keep their people active, inclusive and safe.

24 1.3 Council Agenda (11 December 2018) - Performance Committee recommendations

Our Objectives New Plymouth District Council procures significant goods and services that impact on the local community. The Council’s commitment to delivering a consistent procurement service will facilitate the overall benefits of the Council’s long term plan and the wellbeing of its community. The procurement policy objectives of the council are –

 Elevate reputation for ethical and fair dealing – The Council are committed to applying impeccable ethical considerations and provide standards based on honesty, integrity and transparency.  Achieve the Council’s strategic vision – Ensure procurement activities, principles and processes are in alignment with the Council’s vision, community outcomes and strategic priorities to aid the delivery of “Building a Lifestyle Capital”.  Environmental procurement – Long term environmental costs and benefits will be considered a part of any procurement decision-making process. Environmental sustainability is recognised by the Council to benefit the business, customers and society.  Social engagement - Social costs and benefits will be outlined and considered in the Council’s procurement activity. Social equity contributes to building stronger communities and the Council will promote fairness and inclusiveness in its procurement operations.  Local recognition – The Council recognises the innovation and resourcefulness of local companies. The procurement operations identifies that procurement planning should be fair and transparent to local suppliers to provide them with an opportunity to become a more efficient and cost-effective provider.  Opportunity and innovation – Council procurement will identify opportunities in the planning stage to be flexible and allow innovative ideas. This will maximise the chance to review the current market for alternative solutions and prototypes to achieve value for money.  Sustainability – Procurement sustainability is about meeting the needs of today without compromising the ability of the future generations to meet their requirements. Social environmental and economic context all impact on sustainability. When procuring goods, works and services the Council considers – a) Strategies to avoid unnecessary consumption and manage demand. b) Minimise environmental impacts of the goods, works and services whole-of- life. c) Supplier’s socially responsible practices. d) Value for money over the procurement life cycle, rather than just the initial cost.

Te Ao Māori Value to Te Ao Māori recognises that the Councils aspirations and Māori aspirations are in alignment and there will be occasions when procurement activities require close consideration of Māori culture such as te reo Māori (Māori language), mätauranga Māori (Māori understanding, knowledge and skills), tikanga Māori (procedure, customs and practices) and Kawa (protocols).

25 1.3 Council Agenda (11 December 2018) - Performance Committee recommendations

Effective Māori participation emphasises the need to build and strengthen relationships with suppliers with experience and the capabilities of working in a Māori context. These suppliers will be encouraged to participate in the procurement process to provide shared and long-term outcomes for the Council and Māori.

Procurement Principles New Plymouth District Council will apply the principles of government procurement and government rules of sourcing when planning, sourcing and managing procurement, as these set the standard for good practice (including financial thresholds and procedures for advertising procurement opportunities). The Council will apply the approach best-suited to the individual purchase, within the framework of the principles and the rules – encouraging competitive tendering whenever possible. Principles of Government Procurement 1. Plan and manage for great results. 2. Be fair to all suppliers. 3. Get the right supplier. 4. Get the best deal for everyone. 5. Play by the rules.

1. Plan and Manage for great results

New Plymouth District Council will use resources effectively by planning and managing procurement actions. The skills and experience that are available will be used to understand the business and community’s needs when planning and approaching the market.

Planning and managing procurement will allow the Council to engage with suppliers in a timely manner, while forming the best possible supplier outcomes. The approach to market will be dependent on the size, complexity and any risks that are involved. Particularly, a focus area will be on minimising environmental impact by encouraging e-procurement.

2. Be fair to all suppliers

Open and effective supplier competition maximises the prospect of the New Plymouth District Council obtaining the most effective procurement outcome. The Council will ensure that suppliers wishing to do business are given reasonable opportunity to do so. The procurement and relationship management processes used will aim to ensure that suppliers look to continue to do business with the Council.

Evaluation of proposals will be determined by the criteria set in the Council’s procurement plan. The criteria will regulate which proposal satisfies the requirements and provides value for money over the procurement lifecycle.

The Council’s commitment to openness and fairness to suppliers will continue through to the feedback and proposed learnings for the successful and unsuccessful suppliers. Consistent evaluation methods and feedback will be submitted for an opportunity for the supplier to improve their business and increase competition.

26 1.3 Council Agenda (11 December 2018) - Performance Committee recommendations

3. Get the right supplier

New Plymouth District Council plan to provide a framework for procurement that promotes consistent, transparent and efficient procurement practices to a high professional standard. The procurement process will apply sound ethical considerations, provide equitable and fair opportunity for procurement.

The Council will activity seek innovation and sustainable delivery approaches from the market.

4. Best deal for everyone

New Plymouth District Councils procurement actively promotes best value for money and benefits over the course of the procurement lifecycle. The principle of best deal for everyone does not necessarily mean the lowest price response, but rather the best outcome for the total lifecycle. This includes but does not exhaust social, environmental and economic effects, with strategic focus on risk, innovation and sustainability.

Where appropriate group sourced procurement ensures the Council is utilising its size and buying power to make certain the best outcome is realised. The Council will continue to monitor supplier performance by tracking and reporting to deliver value for the ratepayers.

5. Play by the rules

The local Government act 2002 (section 14) details the principles relating to local authorities. The principles most relevant to the Council’s procurement activities are:

1) In performing its role, a local authority must act in accordance with the following principles: a) A local authority should – i. Conduct its business in an open, transparent and democratically accountable manor; and ii. Give effect to its Identified priorities and desired outcomes in an efficient and effective manner: f) A local authority should undertake any commercial transactions in accordance with sound business practices; and g) A local authority should ensure prudent stewardship and the efficient and effective use of its resources in the interests of its district or region, including by planning effectively for the future management of its assets; and h) In taking a sustainable development approach a local authority should take into account – i. The social, economic, and cultural interests of people and communities; and ii. The need to maintain and enhance the quality of the environment; and iii. The reasonably foreseeable needs of the future generations.

In particular, commercially sensitive information and conflict of interest will be identified and managed, to ensure the procurement process acts responsibly, lawfully and with integrity.

27 1.3 Council Agenda (11 December 2018) - Performance Committee recommendations

Government Rules of Sourcing The Council’s procurement of goods, works and services are governed by the government rules of sourcing 3rd edition. Representatives of the Council involved in procurement must be mindful of the fact the council is subject to and should comply with, all applicable legislation - www.procurement.govt.nz/procurement/principles-and-rules/government-rules-of-sourcing/

Emergency Procurement In the event of a genuine emergency the council will need to be flexible in how they procure goods and services that are required for their response. In these situations rapid procurement may mean it is not possible or prudent to satisfy all requirements of this policy.

When making emergency procurement decisions the Council will act lawfully and with integrity. Once the situation is stabilised and there is no risk to human life, the environment or critical infrastructure, a recovery plan will be established to authorise necessary procurement activity.

The Council will endeavour to document and account for all emergency procurement activity to safeguard against the high risk of corruption. Emergency situation can include but are not limited to-

 Natural or manmade disasters; such as earthquakes, cyclones, tsunamis, volcanic eruptions, flooding, fires or contamination.  Failures of critical infrastructures or equipment; such as failure to prison security service or critical hospital infrastructure.  Critical health or environment emergencies; such as pandemic or food safety incident.  Political emergencies; such as war, coup, or civil insurrection in New Zealand or countries where the New Zealand Government offers support.  Critical security emergencies; such as terrorist attacks, serious crime or major cyber security emergency.  Unanticipated events that make it impossible for an agency to perform a statutory or critical function in the necessary timeframe; such as the destruction of critical election supplies immediately prior to an election would be an emergency for the electoral commission.

Compliance Procurement activity must be conducted in a manner which ensures the Council maintains a reputation of being fair, transparent and equitable towards suppliers and evidenced through sound and robust record keeping. Representatives of the Council undertaking procurement activities must declare any perceived or actual conflicts of interest to the procurement group as soon as practicable. Prior to any procurement activity being undertaken internal processes must be followed and should be completed. The budget must be identified and approved, procurement plans must be prepared for purchases over $25,000.00 (including two levels of sign off, procurement lead and either Group manager or Elite leadership team). Compliance with this policy and the procurement manual is required for all procurement activity undertaken by the council’s temporary and permanent employees, consultants and

28 1.3 Council Agenda (11 December 2018) - Performance Committee recommendations

contractors. Any departure from this approach must be approved by the Chief Finance Officer. This policy is to be read in conjunction with the council’s procurement strategy, procurement manual and relevant council policies and procedures.

Relative Legislation, policies and other documents  Commerce Act 1986  Contract and Commercial Law Act 2017  Fair Trading Act 1986  Health and Safety at Work Act 2015  Local Authorities (Membership Interests) Act 1968  Local Government Official Information and Meetings Act 1987  Local Government Act 2002  Official Information Act 1982  Public Records Act 2005  Civil Defence Emergency Management Act 2002  Goods and Services Tax Act 1985  Land Transport Management Act 2003  Resource Management Act 1991  Construction Contracts Act 2002  Public Works Act 1981  New Plymouth District Council Delegation Register  New Plymouth District Council Probity of Expenditure Policy  New Plymouth District Council Procurement Manual  New Plymouth District Council Procurement Strategy  Principles of Government Procurement  Government Rules of Sourcing  Purchasing Card Policy ECM 1324461

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Version Control

Version No: 4.2 Date: 10/09/2018

Status: Draft for approval

Owner: Richard Gater Procurement Lead

Signed:

Version No: 4.2 Date: 10/09/2018

Status: ELT approval

ELT Authorisation:

Signed:

Version No: 4.2 Date: 10/09/2018

Status: Final approval

Council Authorisation:

Signed:

30 1.3 Council Agenda (11 December 2018) - Performance Committee recommendations

APPENDIX 2 – CURRENT PROCUREMENT POLICY

P08-005 Procurement

The procurement policy objectives of the Council are to:

- Ensure purchases are made in an open, fair and transparent manner.

- Deliver best value over whole life through the most appropriate service provider.

- Ensure open and effective competition.

- Support environmental procurement and sustainability where feasible to do so.

- Appropriately manage risk.

- Promote efficient purchasing practices and their continuous improvement.

- Ensure the Council's purchasing activities are in accordance with its legal responsibilities.

To enable these objectives to be met the Council sets procurement policies as described in the following policy statements:

Policy Statement 1: Procurement will only be made in accordance with budgets approved by the Council.

Policy Statement 2: Procurement will be made in an open, fair and transparent manner.

Policy Statement 3: Procurement will be based on value for money, taking into account the "whole of life" costs of goods or services.

Policy Statement 4: The methods used in procurement will be appropriate to the risks and benefits involved.

Policy Statement 5: There shall be no specific preference given to local suppliers and manufacturers, however procurement packages will provide full and fair opportunity for local suppliers/manufacturers to compete provided they have sufficient capacity and capability to do so.

Policy Statement 6: The Council has a commitment to sustainability and environmental protection. This will be pursued by promoting, where legally possible to do so, purchasing practices which conserve resources, save energy, minimise waste, and will protect the environment and human health whilst maintaining environmental safety and quality.

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New Plymouth District Council Procurement Strategy 2018 -2021

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Contents –

Executive Summary 3 Strengthening the Structure 13 About the Strategy 4 Health & Safety 14 Building a Lifestyle Capital 5 Managing Risk 14 Delivering Procurement Ambition 7 Achieving Excellence 16 Our Piece in the Puzzle 8 Supply Chain Leadership 17 Building the Procurement Lifecycle 10 Let’s Get Sustainable 12

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Executive Summary  A focus on early stakeholder and vendor

In a challenging and evolving procurement engagement. environment, New Plymouth District Council have  Increased guidance to the business on taken the opportunity to develop their procurement procurement processes and procedures.

operations. The introduction of a business  Streamline low risk, high volume procurement.

procurement strategy, along with a review of the  Review of risk and evaluation assessment Pukekura Park is often described as the jewel in New processes. existing procurement policy and manual. These Plymouth’s crown. Pukekura Park covers 52ha (128 changes recognise that the Council understands the  New guidance documents and structured acres) right at the heart of the city and is one of New major impact procurement has on many aspects of templates. Zealand’s premier botanical gardens. The park has an life in New Plymouth, including environment, social international Green Flag award and is a Garden of By providing clear directions for the procurement of factors and local economic development. National Significance. goods, works and services, this strategy will deliver This strategy provides the Council’s framework for value for money to the Council. Value for money will The Park began life as a treeless, swampy valley in embedding fair, open and transparent procurement be considered as the most advantageous combination 1876, it was the foresight of Robert Clinton Hughes practices. The purpose of this strategy is to indicate of total cost of ownership, quality and sustainability. that the passing of the Botanical Gardens Bill enabled the park to be founded. In 1878 the main lake was how the Council will pro-actively support the delivery This strategy promotes opportunity when procuring formed, followed in 1884 by ‘Poets Bridge’ which was of business priorities, improve commercial reputation goods, works and services with the intention to have built from the winnings of a horse race. 1888 saw the a positive impact on environmental, social and and value for money. This will be complemented by erection of the Bandstand and in 1897, to mark the procurement activities to elevate risk analysis, while economic aspects of sustainability for the district. Diamond Jubilee of Queen Victoria, the drinking producing an effective and efficient procurement This strategic approach has been developed by fountain was unveiled. The park was named process. ‘Pukekura’ in 1907, the name taken from the stream considering each of the decision-making principles set that runs through it. The Fernery (1928) and Tea The scope of the strategy encompasses the whole out in the Council’s aspiration to “Build a Lifestyle House (1931) were next to be established. A fountain procurement lifecycle and is aligned to the key stages Capital”. This has then been applied in procurement was commissioned in 1955 to commemorate the visit of procurement planning, sourcing and management context, it therefore sits alongside the various of Queen Elizabeth II. operations. These are supported by the key changes strategies, plans and policies of the Council to assist in Adjacent to the park is the garden estate area of in the Procurement manual, including – the delivery of the Council’s long term plan. Brooklands, home to the acclaimed TSB Bowl of Procurement will endeavour to “Build a Lifestyle Brooklands and Brooklands Zoo. As a popular  Increased structure and visibility of contracts Capital” by – under $100,000.00. destination for locals and visitors alike, Pukekura Park lights up over the summer as the backdrop for the  Putting People first. annual TSB Festival of Lights.  Caring for our Place.

 Supporting a Prosperous community.

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About Our Strategy This strategy, the procurement policy and manual set The New Zealand local government act 2002 requires out to –

all Councils to provide good quality infrastructure,  Make procurement easier for suppliers and the local public services and performance of regulatory Council alike. function in a way that is cost effective, efficient and  Increase professionalism and commercial skills of The Coastal Walkway is a 12.7km long walkway appropriate for households and businesses. located along the coast of New Plymouth. The those carrying out procurement and contract walkway stretches from near Port Taranaki, past management duties. The NPDC spends $134 million a year with creditors, Central City, through Hickford Park, past Bell Block over 70 percent of this being spent on capital  Give opportunity to local small and medium and to Tiromoana Crescent, north-east of New infrastructure; we need to maximise value from this enterprises to participate in procurement Plymouth. The walkway runs through a number of expenditure. This strategy sets out the overall context processes through increased market planning. bridges, most notably, the Te Rewa Rewa Bridge. for the procurement and contract management in  Maximise innovation, sustainability and The Coastal Walkway is a foreshore way constructed collaboration in our procurement operations. Council and, by building on existing elements of good in 1999, originally as a 7km long walkway. In 2004 the practice, to map future developments and likely  Identify sustainability, encourage social and new ‘lightning bolt’ bridge over the Te Henui stream improvements. economic benefits whilst minimising opened and 2 years later the pedestrian bridge and

environmental impact through the procurement viewing platform from Liardet Street opened. In 2010, We have maintained a simple procurement strategy lifecycle extensions were made to the walkway and an to remove unnecessary complexity from processes additional 3 km were added. The development was and procedures and, to retain only those that add part of a joint programme by NPDC and NZTA to value to the service we deliver. encourage and enable people to use active transport. In 2014, the walkway was extended bringing the

length to 12.7km. An important feature of the walkway is the use of

robust materials with strong lines and textures to stand up to and reflect upon the character of the west coast as well as a curved seawall in front of the city centre to provide protection from the waves.

As part of the Council’s Long Term Plan the Coastal Walkway is set to be extended by another 7.3km, connecting Waitara to an eco-friendly and safe route to the city.

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Building a Lifestyle Capital Putting People First Caring for our Place We as an organisation have a key responsibility for NPDC are very conscious of character, heritage and our staff, the wellbeing of our community, and the pride towards our place. Our place is the primary visitors to our district. This Strategy is placing thought when we engage in infrastructure projects Mount Taranaki is an active but quiescent emphasis on building trust and an understanding of or actions that impact the environment. stratovolcano. The 2,518 metres mountain is one of the people we engage with and optimising our As a supply chain we have framework to ensure the the most symmetrical volcano cones in the world. relationships through procurement. As a supply planning and sourcing of Council projects are chain we aspire to lead the way and provide the best For many centuries the mountain has been called focussed on minimising impact and actions are in results for social, economic, cultural and Taranaki by Māori. The Māori word Tara means the best interest of our place. We also have an mountain peak, and Naki come from Ngaki, meaning environmental outcomes. obligation to select the right suppliers that produce “shining”, a reference to the snow-clad winter slopes. Through our procurement planning we will regularly the highest quality goods, works and services for our It was also named Pukehaupapa and Pukeonaki by iwi engage with the community and service providers. long term strategy. who live in the region in ancient times. We will deepen our understanding of the local Through procurement and infrastructure we aspire In1881, a circular area with a radius of six mile from market through planned analysis, which in turn, the summit was protected as a Forest Reserve. Areas to deliver innovative and engaging public spaces, keeps us flexible when responding to the encompassing the older volcanic remnants of Pouakai while maintaining and improving existing community’s changing needs and emergencies. and Kaikate were later added to the reserve and in infrastructure and pedestrian movement within the 1900 all this land was gazetted as Egmont National Through education, inclusion and empowering of our district. The Council is committed to a greener future Park, the second national park in New Zealand. There employees we will support our community and and procurement has a vital part to play. We will are parts of the national park where old growth service providers, while encourage learnings on the ensure we are aligning with suppliers that share our forests can be found. impacts of sustainability, innovation and vision for the future generations. We will dedicate There are three roads leading part-way up the environmental issues. We as a Council have a ourselves to improving water savings, CO2 emissions mountain. The highest is to East Egmont plateau, with responsibility to invest in our people and to ensure a and identify recycling opportunities. a viewing platform and visitors centre. There is no safe, healthy and flourishing network to activate our Procurement endeavour to lower the whole of life road access on the western side. However, a road workforce. winds for 10km through native bush over the saddle contract costs and lead by example to reduce our between Pouakai and Kaikate. Near the top of this It has been recognised by our procurement actions community’s environmental footprint. road is the renowned Pukeiti Trust rhododendron to honor the already profound work performed by garden. New Plymouth District Council. As a community we are entitled to celebrate the key achievements that we all enjoy, from our infrastructure projects to the local events gaining international recognition.

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Supporting Local Prosperity

The development of New Plymouth as a sustainable thriving city lies at the heart of what we are trying to achieve. We are transparent in actively supporting the local economy and developing relevant relationships.

Our procurement strategy sets out to regularly review and assess our local market and economy. We have an invested interest into local and national services so that the suppliers we use are right and have the right talent, right quality of goods available, at the right time. The development of our district should not be restricted to infrastructure but embody our entire community. Investment and opportunity can reward the Council and the community in cost effective and non-cost efficiency gains.

We are focused not only through procurement but as an organisation in creating excellence through leadership of the district. The Council’s vision has

established policies to manage us, impeccable strategies to lead us and an opportunity to ‘Build a Lifestyle Capital’.

Enablers

 Community Engagement  Excellence in Infrastructure  Local & National Law & regulations  Investment in learning and development  Procurement Lifecycle  Asset Management  Culture  Local Services  Investment

 Celebrating achievement  Local Events  Opportunity

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Delivering Procurement Ambitions

Building a Lifestyle Capaital New Plymouth’s Te Rewa Rewa pedestrian/cycle bridge is an impressive illustration of innovative local Delivering Procurement engineering. The tied arch bridge has a clear span of Ambitions almost 70 metres & is part of the award-winning New Plymouth Coastal Walkway. Spanning the Waiwhakaiho River, its iconic form represents the sacred relationship between the land, sea & the wind, the Ngati Tawhirikura hapu.

Te Rewa Rewa Bridge opened in June 5, 2010 as part PEOPLE PLACE PROSPERITY of the extension of the Costal Walkway, making possible a 12.7km off-road route for cycling, walking, running, skateboarding & rollerblading. The bridge Creating investment opportunities Engaging strategic suppliers Creating commercial opportunity has quickly become a proud piece of Taranaki with a for community wellbeing and (local and aligned with council with early stakeholder and couple of international awards already to its name: development. goals). supplier engagement. Plan, report and analyse data to Smart investments in local Progressive management of Footbridge Awards 2011 – Aesthetics Medium-Span Winner (for bridges with spans between 30 metres to achieve value for money. infrastructure/projects. contracts and supplier 75 metres) Create a reliable, efficient & Management of whole of relationships. community focussed process. procurement lifecycle. International Bridge Conference: Bridge Awards 2011 Encourage staff involvement. – Arthur G. Hayden Medal (Outstanding achievement in bridge engineering) Enablers The bridge was commissioned by NPDC and designed  Reviewed Procurement Focus (Policy & Manual). & constructed by a consortium of Whitaker Civil  Introduction of Business Procurement Strategy. Engineering, Novare Design Ltd, Apex Consultants Ltd  Direction & development of professional services. & Fitzroy Engineering. The bridge was funded by  Development of procurement process & eliminate waste (Planning, Resourcing and Managing). NPDC & the Whitaker Family.  Early stakeholder and supplier engagement.  Centralise contract information to facilitate effective reporting.

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Our Piece in the Puzzle Our procurement strategies of the past have been

Our approach to procurement will consist of a driven by a traditional approach. This methodology number of stages, when executed well each stage emphasises and relies heavily on the approach to meets the required results and benefits this strategy market and the delivery of the contract. As a sets out to achieve. In turn, we create a continuous consequence of insufficient analysis in the planning stages, increased levels of effort are required through ‘chain of success’ resulting in an increasing beneficial outcomes and overall stronger market position. the contract and relationship management. If The 45 metre tall fibreglass Wind Wand has become contract reviews fail to be considered, there is little or one of the most recognisable symbols of New no opportunity to benefit from feedback, risk analysis Plymouths waterfront. or lessons learned. Conceived by New Zealand born artist Len Lye, the Wind Wand was commissioned by the NPDC & made by the Len Lye Foundation to celebrate the new millennium. The red light at the top was illuminated for the first time at midnight, December 31, 1999.

The main construction materials used for the Wind Wand are fibreglass and carbon fibre. There are 1296 light-emitting diodes (LEDs) in the red sphere on top providing the gentle illumination visible at night and the Wind Wand can bend approximately 20 metres in any direction.

Len Lye described his sculptures as dancers, in this case swaying and oscillating in response to the The Traditional Approach motion of the wind. Lye produced several smaller versions of the Wind Wand during his lifetime but hoped that one day a 45 metre wand could be built. The Procurement Lifecycle Height 45 Metres The procurement lifecycle model illustrates our Diameter 200 Millimetres strategic direction for procurement activities. Planning, sourcing and managing are the 3 defining Weight 900 Kilograms stages, these are then subdivided into 8 interrelated steps.

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By applying a change and taking a strategic approach The Council is mindful that the procurement impact is to NPDC procurement and the procurement lifecycle, much more than this definition of ‘approach’ and our emphasis is placed on the planning stage. Completing vision. Objectives and principles set out in this each stage fully adds significant value to developing strategy can make effective contributions to socio- our procurement operations. Through this we establish economic plans, including equality and diversity, a an improved understanding of cost, levels of service, successful local economy, environmental issues and requirements and identify further solutions. Added the safety of the community. The Len Lye Centre is an international destination for focus on relationship development and management experimental film and kinetic art. It houses the

means less time is spent resolving issues and more collection and archive of Len Lye, one of the most time applied to assessing the quality of contract original artists of the twentieth century. delivery. This is achieved through Key performance Led by a growing interest locally and internationally in indicators and identifying opportunities for cost and his work, the centre opened in 2015 adjoining the non-cost savings. Govett-Brewster Art Gallery. The state of the art facility houses Lye’s archive, display galleries, an education centre, and a 62 seat cinema. Designed by New Zealand architect Andrew Patterson, the building is a contemporary interpretation of the essence of Lye and a major cultural destination on the Pacific Rim.

With its curved exterior walls of mirror-like stainless steel, the Govett-Brewster/Len Lye is the country’s first example of destination architecture linked to contemporary art and is one of the country’s most iconic buildings.

Significantly, all of the construction costs (approximately $11.5m) were raised from outside the local council, which is most unusual for a large project The Strategic Approach of this kind. NPDC is committed to meeting the operating costs of the building and exhibitions.

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Building the Procurement Lifecycle 3 - Specify Requirements (PLAN)

The Procurement lifecycle is an important measure of Outcomes - the Councils objectives and illustrates clearly  Buying the right quality and quantity to be procurements role in ‘Building a lifestyle Capital’. This delivered at the right time and place for the right

simple but strategic method can hold significant impact price. on the procurement of goods, works and services when  The intended results satisfy the needs. preformed without neglect or confusion.  The right solutions, policy and business needs are The concept of Puke Ariki was formed in 1993 when a clearly articulated and detailed. working party was established by New Plymouth By completing each step of the lifecycle correctly the District Council to address the problem of the town’s Benefits – benefits and outcomes can be clearly defined as – museum and library running out of space. The war  Detailed specification of requirements. memorial building, which housed the museum and

1 – Initiating the Project (PLAN)  Specification endorsed by key stakeholders. library had suffered a lack of space for 35 years. Just 5% of the museum’s collection was on display to Outcomes - visitors.  Having the right people, doing the right things at 4 - Plan Approach to Market and Evaluation (PLAN)

the right time to ensure procurement activity Outcomes - In 1995 the site for the new building was agreed – the achieves optimal outcomes.  Right methodology informs optimal choices. old Puke Ariki Pā site, a culturally important site for both Māori and Pākehā. The earliest known history of Benefits -  Probity assurance manages the risks. this location dates to around 1700 when it was a  Initiating early stakeholder engagement. Benefits - significant hill along this coastline on which was  Establishing the project team and expertise.  Ideal approach to market, with the right located the pā (fortified village). This was the home of  Establish project probity, governance and timeframe and evaluation method. the great Māori Chief Te Rangi Apitirua. The new museum complex was to be built here, on the management framework.  Procurement plan sanctioned by the team and foreshore and under the mountain, with the library projects sponsors. expanding to fill the existing building. The two would 2 – Identify Needs & Market Analysis (PLAN) be joined by a bridge over Ariki Street. And the Outcomes – 5 - Approach Market and Select Supplier (SOURCE) project got its name – Puke Ariki. In 1996/7, Komiti  Analytical strategic thinking leads to smarter Outcomes – Māori was formed to represent all the iwi in the Taranaki region so ensuring the entire community procurement and better results.  Right suppliers submit quality offers. were able to give their input into this ambitious,  Best supplier selected for the right reasons.  Informed decision making optimises outcomes, the innovative project. Benefits – Council should not be disadvantaged through lack of knowledge.  Recorded evaluations of offers and panel On 15 June 2003, the doors were swung open for Puke Ariki’s first visitors and history was made. The recommendations of preferred suppliers provides Benefits – world’s first integrated museum, library and tourist  High level statement of needs and a link between clear judgement with fair and open analysis. information centre was open. And its success was needs, policy and business objectives.  Relevant senior authorisation of recommendation immediate. Awards for the buildings’ innovative  Comprehensive understanding of the market and and approval to proceed to contract. design, its interior design and, most importantly, the local people and the out-of-town visitors loved it too. operating environment.  Indication of the whole of life costs, benefits and 10 risks

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6 - Negotiate and Award Contract (SOURCE) 8 - Renew (Manage) Outcomes – Outcomes –  Best deal (quality of goods/services represents  The Council demonstrates that it is a learning value for money) agreed with supplier. organisation.  Contract drives performance.  Verification that good procurement delivers

 Enhancement of Council reputation with quality results. The TSB Festival of Lights is an annual event held in organised, fair and ethical behaviour. Benefits – Pukekura Park, New Plymouth. The event runs from

Benefits –  Review outcomes and results. mid-December to early February, there are day and  Clear negotiation plan for signed contract.  Identify lessons to be learnt. night time programmes of events for people of all  Unsuccessful suppliers debrief and encouraged to ages, and the festival itself transforms the park into use feedback positively. With this strategic approach we begin to move away an illuminated wonderland every evening. from procurement being just an administrative The Colourful lights are used to highlight tree crowns, 7 - Manage contract and relationships (Manage) function and add value to the whole lifecycle. With ferns, and other plants. Light art displays are installed Outcomes – the outcomes and benefits of each step, procurement along the festival walking routes and the waterfalls lit  What was intended to meet the needs is uncovers the whole of life view of its activities. There in changing colours. The festival has been a major

delivered to specification. are several differences between the traditional summer attraction and cultural event for the city  Issues do not become problems. Instead, Council, procurement method and this strategic approach but since 1993, and is attended by over 100,000 people supplier and stakeholder’s collaboration focuses the overall benefit is being able to see the whole of each year.

on continuous improvements and efficiency life cost. In essence, the procurement lifecycle is The Festival of Lights brings in nearly $4.7 million to gains. providing a cost assessment that considers the start- the region. The operations are testament to NPDC’s Benefits – up, maintenance and end of life costs as well as organising skills being able to run a large event and

 Regular reporting, monitoring and evaluation of social, environmental and economic implications. managing resources. There is a considerable cost of delivery (contract management plan). From here we can start to consider the ‘value of $500,000, half of the funding for the event is provide  Develop effective working relationships with sustainability’ to learn and enhance the whole of but sponsors and grants.

supplier and key stakeholders. Council operations.  Early recognition of end of contract allowing strategy and transition plan to be established.

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Let’s Get Sustainable

Price in the past has been the single most important  Economic regeneration factor in procuring goods, works and services. Now  Legal compliance social and environmental factors are also becoming  Public image protection and enhancement

important measures in awarding contracts. As part of procurement practices we will be Sustainable public procurement means local authorities must consider long-term economic impact interested in our supplier’s ability to provide Brooklands Zoo was officially opened to the public in 1965. Jack Goodwin, a former Director of Parks, and being socially responsible when procuring goods, environmental management systems, corporate social responsibility practices and sustainable achievements. envisaged a collection of aviary birds and small works and services at all stages of the operations, This procurement strategy document is setting the animals for the community to enjoy. The New instead of considering comparative cost and benefits Plymouth Jaycee Chapter and the New Plymouth Cage standard for local and national companies to achieve, of products and services throughout their operational Bird Club were key partners who contributed to the not only to make New Plymouth Green, but to ensure life. construction of the original enclosures and the we are achieving value for ratepayer’s money. There acquisition of bird and animal stock. Within the procurement operations we will add focus are further benefits to sustainable procurement for The Zoo has undergone many changes since 1965. to the value of sustainability. Sustainability for the both New Plymouth and New Zealand of providing Recent building developments have created more Council is achieving the needs of the business without incentives to industry to meet requirements and develop new and better technologies. natural habitats for the animals while allowing closer, compromising the future. By taking a sustainable unrestricted viewing for the visitors. viewing point to procurement we are considering At NPDC we envisage sustainable procurement Enrichment is an important and challenging part of a unnecessary consumption and managing demand of practice will be augmented into departmental Brooklands Zoo keeper’s daily routine. Animals of all goods, works and service required, while minimising priorities. Traditional risk management techniques do types need enrichment to help encourage and environmental impacts, adhering to legislation and not adequately capture the impact on social, stimulate natural behaviors such as foraging for food, obligations, and managing the whole of life cost not environmental and economic vulnerabilities in the stalking and hunting, smelling new scents and just the initial cost. Some issues that will impact on supply chain. The procurement lifecycle will changing their environment. the Councils procurement and sustainability have encourage the key processes of – been identified as the following – Brooklands Zoo works closely with fully qualified veterinarians for health and dietary advice on our 1. Identify the business need for the product or animals and to help maintain regular health checks.  Optimising use of natural resources service. Part of a Keepers’ daily duties involve checking the  Minimisation of hazardous substances 2. Assess key impacts of the product or services to be procured. health of each individual animal throughout the  Job Creation day. Preventative health practices are also followed 3. Carry out risk assessment.  Equality such as regularly worming animals etc. 4. Evaluate specified products and services against  Building sustainable markets criteria.  Climate change  Waste minimisation For NPDC sustainable procurement activities will be  Health and safety ‘business as usual’. 12

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Strengthening the Structure Volume purchases make it possible to make

New Plymouth District Council utilise a decentralised significant gains in the price of goods and lower the procurement structure, which involves each area of price of services. The opportunity to consolidate the business performing their own procurement goods and service contracts would lead to a strong market position for the Council. This does not mean activities. There are common challenges when an overhaul of Council processes, simple steps in operating a decentralised model. The main restriction gathering information and authorisation schedules The TSB Bowl of Brooklands is a unique design, is the limited visibility of economies of scale. Here, the will in effect show a realisation of the benefits of a comprising of an impressive outdoor sound stage and procurement department has an opportunity to a large grass amphitheatre, set against the backdrop coordinated process. deliver some significant results for the Council. of New Plymouth’s Pukekura Park. With capacity of 15,000, the bowl is a spectacular venue for summer

Identifying areas of consolidation by increased concerts and when night comes, visitors and visibility is fundamental in order to improve and performers are spellbound as the stage and advance procurement effectiveness. With over 80 surroundings trees takes effect.

percent of Council business transactions governed by The venue was judged New Zealand’s most contracts, visibility into all the information is what will atmospheric venue following a survey undertaken by empower our decisions. Gemba Group in 2013 and can be hired out for weddings and conferences for up to 350 guests.

The TSB Bowl of Brooklands was built on previous swamp land, the venue opened in 1956 with the first

Festival of Pines, which later included the popular Miss Brooklands contest. In 1997 the Bowl of Brooklands Trust and the New Plymouth District Council began a major upgrade of the venue realigning the existing seating areas, narrowing the lake to accommodate a larger stage with curved The benefits would be efficient spending, informed roofing, plus improving the backstage areas, dressing decision making and added flexibility in contracts. rooms and facilities. Non-cost benefits such as one point of contact, single The Bowl has hosted many international artists like source of the truth and effective contract Elton John, Brian Adams, Fleetwood Mac, REM, Lionel management are all areas to be considered. Richie and Cliff Richard to name but a few.

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Managing the Risk In turn, the Council gains further time for accurate

analysis by the departments into current markets and Risk management is the attempt to define the access available knowledge in the Council. Using unknown; restricting or mitigating its effects and individual departments for procurement lets us tap managing the consequences. In procurement terms,

into expertise and business knowledge adding further this means suitable and well timed decisions, always returned value to procurement. We also add more bearing in mind public responsibility and value for value to our procurement documents and potentially The iconic TSB showplace is located in the heart of money. The key factor in risk management is not the New Plymouth and is the main theatre hosting removing waste by removing non-conforming elimination of the risk, which is ever present, but the numerous international touring productions, while it supplier and old ineffective contracts. The cost of awareness and management. caters for conferences of up to 1,000 intimate dinners procuring centrally and selecting incorrect goods, for six, through to large banquets for 350. The two Our structured approach to the identification, works and services through lack of knowledge would main venues at the TSB Showplace include the be demonstrably more expensive than procuring quantification and subsequent management of risk beautiful TSB Theatre and the Theatre Royal. The confidently with the right knowledge. must be robust and adaptable so that the risk is venue has numerous other rooms and break-out retained by, or transferred to, the party who can areas with bar and lounge options. Effective improvements to the process have been manage the risk most effectively. It is important in our TSB Showplace is a category A heritage building that highlighted as setting procurement templates with procurement planning that we use suitable techniques heightened authorisation with procurement, with was known as Alexandra Hall when built in 1883 by a so that the risks are appropriately balanced with the further automated contract retention with elevate group of businessmen. It was enlarged in 1904 and potential benefits and opportunities that may arise sold to New Plymouth Theatre Company and contract goals for Council departments. through the procurement process. renamed the Theatre Royal, before it was destroyed by a fire on 21st July, 1916. Following this, the site During our significant procurement planning process, stood empty for several years. In 1923, the town’s procurement and project officers are expected to Health and Safety two cinema companies pooled their resources consider the specific risk associated with that together to establish the New Plymouth Opera House. New Plymouth District Council recognises its procurement in more detail, including risk associated T.H. Bates, who had been involved in the building the obligation as a principal under health and safety at with procurement in general (i.e. supply market nearby Mayfair Theatre, designed the Opera House works act 2015. As such we are required to take all considerations and business risk considerations), as and it was rebuilt and opened 25th November 1925.

practical steps to ensure safe work practices are well as risks particular to probity of the procurement By 1969 the venue had once again fallen into disuse. employed by all of our suppliers. We require all process. The determination of risk involves analysis In 1970 it was offered up for sale, with the greatest suppliers we engage with to comply with these and the application of judgement to the specific interest coming from an Auckland man who planned requirements and actively explore ways to promote circumstances and context of the particular to bulldoze the site and build a supermarket. The New best practice health and safety throughout the procurement. The onus is on us as the procuring Plymouth Operatic Society stepped in to raise the procurement lifecycle. officers to demonstrate that a thorough risk analysis funds needed to purchase the building and create the

has been undertaken and to provide justification for New Plymouth Opera House Trust. In 1997 the Trust the assigned risk to the procurement (and how these handed management of the Theatre to NPDC. NPDC risks will be managed). and the TSB Bank refurbished and expanded the Theatre and reopened 6th February 1999. 14

45 1.3 Council Agenda (11 December 2018) - Performance Committee recommendations

As part of the risk assessment process the following We are introducing a new approach into our risk factors may indicate that procurement is high risk. assessments when handling the procurement process. However, these factors should not be regarded as As this is a relatively new action for some areas of the either complete or conclusive when determining Council we are keeping the pathway clear and simple

whether procurement is high risk. in order to meet key objectives and encourage New Plymouth Airport serves the city of New Plymouth, engagement into the process. We then have the and the surrounding region of Taranaki. The original airport  The project is high value. option to advance the assessments once time opened in 1933 with the NP Airport Act. During World War  Council is not an informed buyer progresses and sustainable risk assessments become II the airport became RNZAF Bell Block Airbase. Post war, the airport returned to civilian use, and was used by New  The procurement is subject to high degree of business as usual for the Councils procurement public scrutiny. Zealand National Airways Corporation with links to actions. Whenuapai (Auckland) and Paraparaumu (Wellington).  The selection criteria involves a high level of subjectivity. A common valuable tool the Council will utilise is the In line with general improvements throughout the 1950s  PESTEL analysis. This type of analysis undertakes a and 1960s, of New Zealand’s infrastructure, and National The project is complex, unusual or contentious. Airways Corporation (NZNAC) acquisitions of Fokker F27  The project will utilise a complicated contract scan of our wider environment and identifies external Friendships, New Plymouths airport was reviewed. In view structure. factors that may impact on procurement. of the undulating land, the need for a tarmac runway for the F27, and the clearer approach paths required, a new  There is a high potential for a conflict of interest or  Political airfield was soon under construction at the end of Brown perceived COI.  Economic Road (recently renamed Airport Drive). During construction of the airport, a small hill at the west end of the runway had Some thresholds of Council procurement naturally  Social to be levelled off, due to take-off and landing path

carry a high risk due to their nature.  Technological infringements. This was rather controversial, due to said hill  Environmental being a Māori burial ground. The government of the day decided to go ahead with construction anyway, and despite  Legal protests, the hill was levelled. Part of it still remains. The airport opened in 1966, the airport's terminal building Analysing these areas during our procurement opened in 1967 and was designed to handle just 60,000

planning with also the Councils internal risk allows the passengers per year. positive and negative features to be determined In 2016, 411,661 people flew in and out of New Plymouth through a SWOT reasoning. making it the 9th busiest airport in the country. In an uncommon move, councillors - without any arguing - approved the most expensive option for the redevelopment, rejecting plans for a cheaper, more functional building.

A proposal for a $28 million airport terminal upgrade at New Plymouth Airport has been given its final approval by the New Plymouth District Council.

1.3 Council Agenda (11 December 2018) - Performance Committee recommendations

Achieving Excellence

Our teams aspire to operational excellence, we constantly challenge the status quo and never stop thinking ‘we can do better’. Our teams are welcoming of change and view continuous improvement as business as usual. As a team we strive to get it ‘right first time, every time’. This is supported by clearly In 1989, as a part of New Zealand-wide reorganization of local government, New Plymouth City Council was documented and consistent processes. merged with Taranaki District Council (Taranaki County Council and Waitara Borough merged in We hold organisational knowledge in high regard. We 1986), Inglewood District Council (Inglewood Borough convert data into information and then into and County merged in 1986), and Clifton County

knowledge. Our teams have enough depth to retain Council to form New Plymouth District Council. key knowledge and intellectual property. We share This type of approach allows the procuring officer to examples of operational excellence and incorporate it Every three years the Mayor, 14 councillors and 16 determine the areas that need immediate attention into our continuous improvement programmes so that community board members are elected by the New and management. There is also an advantage of it becomes our business as usual. Plymouth District's enrolled voters. The full council, highlighting the areas for monitoring and reviewing, sub-committees and standing committees meet on a as well as positioning our strength and opportunities Within our development framework we have made a six-weekly cycle. to increase our presence in the markets and apply conscious effort to include and draw on employee’s The Chief Executive, the elite leadership team and the our strategies. views and opinions. We are committed to constructing Council’s team of staff provide advice and information one road of engagement for our employees that drives to the elected members and the public, implement New Plymouth District Council regard risk assessment our vision and ambition. We are enthusiastic and council decisions and manage the district's day-to-day of paramount importance, as it informs resource passionate on having highly skilled and trained operations. This includes everything from maintaining allocations priority settings of both managing impacts more than 280 parks and reserves, waste water workforce. They will have access to build healthier and contracts for action. In conclusion, as a lifestyles and a good work/life balance. Our work management and issuing consents and permits, through to providing libraries and other recreational procurement team we are committed to focusing our environment will be family friendly with a strong social efforts on maximising our return in order to facilitate services and ensuring the district's eateries meet aspect. All of our workplaces will be drug and alcohol health standards. and align our strategy of ‘Building a Lifestyle Capital’. free.

Our procurement team will have good levels of literacy and numeracy. This will underpin the support and guidance we can produce for the rest of Council. We are devoted to producing an assured procurement processes and a high quality procurement lifecycle.

47 1.3 Council Agenda (11 December 2018) - Performance Committee recommendations

Supply Chain Leadership Our procurement team will create clear lines of

communication across all levels of our organisation, As the Councils procurement team we recognise the from the Council’s senior management all the way to need and importance to provide quality, effective our suppliers. Procurement leadership will effectively and efficient guidance to the whole of Council. We build staff engagement across our organisation so we envisage a fundamental shift throughout the life can achieve consistency. We have aspirations of the span of this strategy in to a supply chain leader. The tangata whenua whose rohe or area is business being able to understand the different levels Council and the procurement department are the situated in New Plymouth District have histories of procurement and how our procurement model first link in the supply chain that deliver’s goods, that originate hundred, even thousands, of years and their behaviour aligns into the policies, strategies works and services for our community. ago. and values. As a forming supply chain we will look to influence All but one of the iwi groups in our district As a community aware business we will look to take and inspire good practice through strategy and identify as iwi of Taranaki. These iwi are Ngāti advantage of opportunities for sustainability and leadership, while remaining focused on our Tama, Ngāti Mutunga, Te Atiawa, Ngāti Maru innovation in local services. We also strive to make community vision and developing culture to and Taranaki. There can be confusion sometimes the procurement process quicker, simpler and less enhance performance. because there is an iwi called Taranaki, as well as costly across the whole of life. We will pursue the the confederation of iwi in the Taranaki region highest standard and lead the way for our who are often referred to collectively as Taranaki community by inclusion, diversity, equality and iwi. However for the collective group of iwi we ethical conduct. We will continue to elevate our will use the term Taranaki Whānui. business integrity by complying with our legal requirements and national governance. The other iwi in our district, which is not part of Taranaki whānui, is Ngāti Maniapoto, who identify with the confederation of iwi in the Waikato known as Tainui. The iwi of our district are descendants from tupuna (ancestors) who arrived in a great number of waka (canoes) over many decades. However, the mana whenua of today associate themselves mainly through oral traditions such as whaikōreo (speeches) and waitata (song) with canoes from the last wave of migration. Namely Tainui, tomomaru and kurahaupo waka.

48 1.3 Council Agenda (11 December 2018) - Performance Committee recommendations

By elevating our supply chain strategy and To achieve our supply chain leader aspiration, we as leadership, we influence excellence and begin to a procurement team are managing our tasks, events build this into our DNA. This is inclusive to the fact and processes so we can be more effective at that by changing procurement behaviour through guiding our procurement operations and leading our the procurement lifecycle, we do not only lead more staff and community. We are confident as a supply effectively but we also begin to manage our chain that we will share the same vision with our procurement better. However, relying solely on the supply chain partners in order to put people first, The original clock tower was part of the Post Office management of supply chain we are only defining care for our place and support a prosperous building, which was built in 1906-7. Following an earthquake in 1942 a decision was made to demolish task parameters in order to get the desired community. performance. But, a lack of management creates a the tower due to safety concerns. Although it took 2 risk in that we may not be achieving our goals. attempts due to opposition the clock tower and post office were not demolished until April 1969. We have a balancing act to perform and this strategy outlines the way in which we achieve the balance. Residents wanted the clock tower back, so a replica The best supply chains know when to apply was built in 1985 that incorporated the original clock leadership and management to greater and lesser and its mechanism. Henry Rodgers an expert degrees. horologist from Nelson, and Alan Reed of Boon, Goldsmith and Company set to work in the mechanism room of the new clock tower. Accurately timed and perfectly synchronised, the clock was set into action ending 16 years of tardiness. The clock tower incorporates the original clock installed in the Post Office building, when it was built in 1907.

49 Council Agenda (11 December 2018) - Audit and Risk Committee recommendations 2

AUDIT AND RISK COMMITTEE RECOMMENDATIONS

4. Update to Council’s Delegations Register ECM7821633 The matter for consideration by the Council is updating the Council’s Delegation Register to ensure that the delegations are current and delegated to the appropriate level.

The report recommends that the Council delegates its powers and duties to specified Council officers, as set out in the attached Schedule, to ensure that the Council officers have the necessary authority to undertake the functions, powers, or duties on behalf of the Council.

Audit and Risk Committee Recommendation: Cr Weaver ) Mayor Holdom ) That having considered all matters raised in the report the Council:

a) delegates the powers and duties, as set out in the attached Schedule, to the specified Council officers;

b) delegates all powers and duties currently delegated to the Council’s “Planning Lead” officer in the electronic Delegations Register (available at: http://delegations.npdc.nz/) to the new position of “Regulatory Solution Lead”;

c) revoke all delegations made under the Land Transfer Act 1952 in the Delegations Register due to its repeal effective from 12 November 2018;

d) directs that the Council’s Delegations Register be updated accordingly. Carried

------End of Report ------

50 Council Agenda (11 December 2018) - Audit and Risk Committee recommendations 2.1

UPDATE TO COUNCIL’S DELEGATIONS REGISTER

MATTER

1. The matter for consideration by the Council is updating the Council’s Delegation Register to ensure that the delegations are current and delegated to the appropriate level.

2. The report recommends that the Council delegates its powers and duties to specified Council officers, as set out in the attached Schedule, to ensure that the Council officers have the necessary authority to undertake the functions, powers, or duties on behalf of the Council.

RECOMMENDATION FOR CONSIDERATION That having considered all matters raised in the report, the Council: a) delegates the powers and duties, as set out in the attached Schedule, to the specified Council officers; b) delegates all powers and duties currently delegated to the Council’s “Planning Lead” officer in the electronic Delegations Register (available at: http://delegations.npdc.nz/) to the new position of “Regulatory Solution Lead”; c) revoke all delegations made under the Land Transfer Act 1952 in the Delegations Register due to its repeal effective from 12 November 2018; d) directs that the Council’s Delegations Register be updated accordingly.

COMPLIANCE

Significance This matter is assessed as being of some importance. This report identifies and assesses the following reasonably practicable options for addressing the matter:

1. Delegate the powers and duties set out in the Schedule Options to the officers specified

2. Resolve not to delegate the updated powers and duties set out in the Schedule.

The persons who are affected by or interested in this matter Affected persons are Council Officers.

51 Council Agenda (11 December 2018) - Audit and Risk Committee recommendations 2.1

COMPLIANCE

Recommendation This report recommends Option 1 for addressing the matter.

Long-Term Plan / Annual Plan No Implications

Significant Policy and Plan No Inconsistencies

EXECUTIVE SUMMARY

3. Delegations made by the Council to the Chief Executive and to Council Staff for the purposes of efficiency and effectiveness in the conduct of its business are held in the Delegations Register. Recent amendments to the Building Act 2004, the passing of the Land Transfer Act 2017, coming into effect on 12 November 2018, (and subsequent repeal of the Land Transfer Act 1952) and the adoption of the New Plymouth District Council Freedom Camping Bylaw 2017, requires the Delegations Register to be updated.

4. In addition, existing delegations in relation to the New Plymouth Airport (Airport) require updating since the Airport is owned and managed by a council- controlled organisation, Papa Rererangi I Puketapu Limited (PRIP) rather than a business unit of Council as shown in Appendix A of the Schedule.

5. The Airport is run pursuant to a Service Level Agreement between the Council and PRIP dated 8 January 2018. The Agreement is intended to enable PRIP to carry out the Airport operations on behalf of Council, who will remain “operator” for the purposes of the Civil Aviation Rules. The Council remains liable to the Civil Aviation Authority to maintain compliance with its obligations under the Aerodrome Operator Certificate to the extent that PRIP is unable to do so, with senior Airport personnel reporting directly to the Council’s Chief Operating Officer. It is also considered appropriate to remove delegates from the Delegations Register who are no longer Council officers and who are now employed by PRIP.

6. The Register is also required to be updated to account for new positions within the Council’s structure. The Customer and Regulatory Solution Team has a new officer position of Regulatory Solution Lead which will require all delegations currently held by the Planning Lead.

52 Council Agenda (11 December 2018) - Audit and Risk Committee recommendations 2.1

7. Existing delegations in relation to the Council’s Water and Waste Team also require updating following changes to that team structure. This is necessary to account for the new positions of Manager Three Waters, Manager Resource Recovery, Quality and Compliance Lead and Technical Capability Lead as shown in Appendix B of the Schedule. It is also considered appropriate to remove former positions of Manager Water and Waste, Waste and Compliance Lead and Quality and Compliance Coordinator.

BACKGROUND

8. The Council, by resolution dated 28 February 2017, adopted the New Plymouth District Council Delegations Register (the Register) which comprises the delegations made by the Council to specific job roles (e.g. Environmental Planner).

9. The Register is required to be updated from time to time for any of the following purposes:

 To reflect changes to existing legislation;

 To incorporate new legislation;

 To add to or amend any part of the Register;

 To account for new positions within the Council’s structure;

 To add or remove delegates as considered appropriate by senior Council staff;

 To correct any errors or omissions in the Register.

10. The Council has delegated to the Chief Executive all of its responsibilities, duties, and powers in relation to any matter in respect of which the Council is empowered, subject to the exceptions and conditions set out in that delegation.

11. The Chief Executive has the delegated authority to undertake any updated powers and duties in the Register and has the power to sub-delegate the powers and duties delegated by the Council pursuant to clause 32B of Schedule 7 to the Local Government Act 2002.

12. Delegating the powers and duties specified in the Schedule is necessary to ensure that Council officers have the necessary authority to undertake the functions, powers, or duties on behalf of the Council and to mitigate the potential risk associated with officers acting without the necessary delegated authority.

53 Council Agenda (11 December 2018) - Audit and Risk Committee recommendations 2.1

13. From a risk management perspective, and for the purposes of efficiency and effectiveness it is considered necessary for the powers and duties set out in the Schedule to be delegated to the specified Council officers.

SIGNIFICANCE AND ENGAGEMENT

14. In accordance with the Council's Significance and Engagement Policy, this matter has been assessed as being of some importance because it potentially impacts on the Council’s obligations, duties and requirements.

OPTIONS Option 1 Delegate the powers and duties set out in the Schedule to the specified officers and approve the recommended updates to the Delegations Register.

a) Financial and Resourcing Implications  There are no financial and resourcing implications.  There are no matters affecting prudent stewardship and efficient and effective uses of resources.

b) Risk Analysis  There is no risks associated with this option.  No legal opinion is required.

c) Promotion or Achievement of Community Outcomes This is an operational matter which does not impact on the Community Outcomes.

d) Statutory Responsibilities There is no statutory responsibility in the delegation of the powers and duties.

e) Consistency with Policies and Plans Option 1 is consistent with the purpose of the Delegations Register.

f) Participation by Māori This matter relates to Council’s efficiency and effectiveness in the conduct of its business as governed by the Local Government Act 2002. Accordingly there is no requirement for Māori to participate in the Council’s decision-making processes.

g) Community Views and Preferences Council is not required to seek the views and preferences of its communities’.

h) Advantages and Disadvantages

54 Council Agenda (11 December 2018) - Audit and Risk Committee recommendations 2.1

The advantage of this option is that it empowers Council officers to make decisions within their area of competence which assists in an efficient and effective conduct of Council’s business.

Option 2 Do not delegate the powers and duties set out in the Schedule and recommendations.

a) Financial and Resourcing Implications This option would affect prudent stewardship and the efficient and effective use of resources.

b) Risk Analysis  There is an operational risk associated with this option: o The specified officer would not be authorised to carry out the powers and duties relevant to their positions; and

o The Council would be required to undertake those specific powers and duties taking up valuable Council time that could be better used for important decision making; and

o The Council could be exposed to risk should an officer carry out a power and duty without having the requisite authority as staff.

 No legal opinion is required.

c) Promotion or Achievement of Community Outcomes This is an operational matter which does not impact on the Community Outcomes.

d) Statutory Responsibilities There is no statutory responsibility to delegate the powers and duties of the Council.

e) Consistency with Policies and Plans This option would not be consistent with the purpose of the Delegations Register.

g) Community Views and Preferences

55 Council Agenda (11 December 2018) - Audit and Risk Committee recommendations 2.1

Council is not required to seek the views and preferences of its communities’.

h) Advantages and Disadvantages  This option would not facilitate the efficient and effective conduct of Council’s business.

 There are no advantages in adopting this option.

Recommended Option This report recommends option 1, Delegate the powers and duties set out in the Schedule to the specified officers and approve the recommended updates to the Delegations Register, for addressing the matter.

APPENDICES

Appendix A Schedule of Delegations

Appendix B Schedule of Delegations relevant to Water and Waste Team

Report Details Prepared By: Frieda Winstanley (Legal Adviser) Team: Legal Services Approved By: Alan Bird (Chief Financial Officer) Ward/Community: District Wide Date: 30 October 2018 File Reference: ECM 7821633 ------End of Report ------

56 Council Agenda (11 December 2018) - Audit and Risk Committee recommendations 2.1

APPENDIX A Schedule of Delegations

Acts

Building Act 2004

Sections Summary of Powers/Duties Primary Secondary Delegate Delegate s123A Powers and duties (as TA) in relation to the application of this Customer and Building Services subpart if it is satisfied that only part of a building is Regulatory Coordinator dangerous or insanitary as specified. Solutions Manager

Building Lead s124-125 Powers and duties (as TA) re the fencing off of dangerous, Customer and Building Services affected or insanitary building and requiring remedial work to Regulatory Coordinator be carried out; notification, etc Solutions Manager

Building Lead s133AG Duties (as TA) to identify potentially earthquake-prone Customer and Building Services buildings and reporting to chief executive within applicable Regulatory Coordinator timeframe as specified Solutions Manager

Building Lead s133AH Powers and duties (as TA) to request engineering Customer and Building Services assessment of potentially earthquake-prone buildings as Regulatory Coordinator specified Solutions Manager

Building Lead s133AI Powers (as TA) to cancel a request for engineering Customer and Building Services assessment of potentially earthquake-prone buildings or Regulatory Coordinator obtain an engineering assessment of the building in the Solutions circumstances specified Manager

Building Lead s133AJ Powers and duties (as TA) in relation to an application for Customer and Building Services extension of time by the building owner to provide Regulatory Coordinator engineering assessment in the circumstances specified Solutions Manager

Building Lead s133AK Powers and duties (as TA) in relation determining whether a Customer and Building Services building or part is earthquake prone and notice requirements Regulatory Coordinator as specified Solutions Manager

Building Lead

s133AL Powers and duties (as TA) in relation the issue of an EPB Customer and Building Services notice for earthquake-prone buildings and notice Regulatory Coordinator requirements as specified Solutions Manager

Building Lead

57 Council Agenda (11 December 2018) - Audit and Risk Committee recommendations 2.1

s133AN Powers and duties (as TA) in relation to dealing with an Customer and Building Services application/review/revocation of an exemption from the Regulatory Coordinator requirement to carry out seismic work by a building owner as Solutions specified Manager

Building Lead s133AO Powers and duties (as TA) in relation to dealing with an Customer and Building Services application for an extension of time to complete seismic work Regulatory Coordinator by owners of certain heritage buildings as specified Solutions Manager

Building Lead s133AP Powers and duties (as TA) in relation to the Customer and Building Services attachment/removal and replacement of EPB notices and Regulatory Coordinator EPB exemption notices to earthquake-prone buildings Solutions Manager

Building Lead s133AQ Powers and duties (as TA) re assessing information relating Customer and Building Services to earthquake-prone buildings status to determine in Regulatory Coordinator accordance with EPB methodology whether the building or Solutions part is earthquake-prone, its earthquake rating and Manager notification requirements Building Lead s133AR Powers and duties (as TA) to impose safety requirements in Customer and Building Services respect of any earthquake-prone building including fencing Regulatory Coordinator off, attaching warning notices, requiring remedial work to be Solutions carried out and notification requirements Manager

Building Lead s133AS Powers and duties (as TA) re applying to the District Court Customer and Building Lead for an order authorising the territorial authority to carry out Regulatory the seismic work in the circumstances specified. Solutions Manager Restrictions:

a. This power cannot be sub-delegated. b. This delegation is subject also to General Delegations - Legal Proceedings. s133AT Duties (as BCA and TA) not to grant building consent for Customer and Building Services alteration/allow alteration dependent on the circumstances Regulatory Coordinator specified for a building or a part of a building that is subject to Solutions an EPB notice Manager

Building Lead

S133AW Powers and duties (as TA) in relation to consultation Customer and Building Lead requirements including a reasonable opportunity for territorial Regulatory authorities and other interested persons to make Solutions submissions Manager

s133AY Powers and duties (as TA) if the definition of ultimate Customer and Building Services capacity or moderate earthquake, as set out in regulations Regulatory Coordinator made for the purpose of section 133AB is amended or Solutions replaced. Manager

Building Lead

58 Council Agenda (11 December 2018) - Audit and Risk Committee recommendations 2.1

Airport Authorities Act 1966

The New Plymouth Airport is owned and managed by a council-controlled organisation, Papa Rererangi I Puketapu Limited (PRIP). The New Plymouth Airport is run pursuant to a Service Level Agreement between the Council and PRIP dated 8 January 2018. The Council holds the aerodrome operator certificate and is the “airport authority” for the purpose of the Act.

Pursuant to s 3(1), with the prior consent of, and in accordance with any conditions prescribed by, the Governor- General by Order in Council, a local authority may establish, improve, maintain, operate, or manage airports (including the approaches, buildings, and other accommodation, and equipment and appurtenances for any such airports) and may acquire land for any such purpose either within or without its district or region.

The powers and duties delegated are those of the Council as a “local authority” or “airport authority”.

Section Summary of Powers/Duties Primary Secondary Delegate Delegate s3 Power (as local authority) to carry on airports and any Chief Operating subsidiary business or undertaking with prior consent of Officer Governor-General. s4 Power (as airport authority) to improve, maintain, operate, or Chief Operating manage an airport; Officer

Power (as airport authority) to enter into and carry out any agreement or arrangement necessary for the exercise of any power or function conferred;

Duty (as airport authority) to operate or manage airports as a commercial undertaking. ss4A-4B Duty (as airport authority) to consult with every substantial Chief Operating customer in respect of any fixing/altering charges in the Officer absence of written consent s6 Power to grant a lease (for a period not exceeding 5 years or Chief Operating less) of any land, buildings, or installations vested in the Officer airport authority subject to certain conditions;

Duty (as airport authority) to consult and have regard to the directions of the Civil Aviation Authority of New Zealand. s9 Duty (as airport authority) to pay unclaimed proceeds of sale Chief Operating of lost property and money into such bank account kept by Officer the authority Civil Aviation Act 1990 The New Plymouth Airport is owned and managed by a council-controlled organisation, Papa Rererangi I Puketapu Limited (PRIP). The New Plymouth Airport is run pursuant to a Service Level Agreement between the Council and PRIP dated 8 January 2018. The Council holds the aerodrome operator certificate and is the “airport authority” for the purpose of the Act.

The powers and duties delegated are those of the Council as “participant in a civil aviation system”, “airport authority” or as otherwise specified.

Section Summary of Powers/Duties Primary Secondary Delegate Delegate s8 Power (as participant in the civil aviation system) to apply for Chief Operating grant of renewal of an aviation document in the form Officer prescribed. s12 Duties (as participant in the civil aviation system) in relation to: Chief Operating Holding of aviation documents and qualifications; Officer

Compliance with relevant rules or regulations and conditions attached to relevant aviation documents; Prescribed safety standards;

Establishing/following management systems as required/ prescribed.

59 Council Agenda (11 December 2018) - Audit and Risk Committee recommendations 2.1

s39 Power (as person or authority to whom any fees or charges are Chief Operating payable under regulations made under this Act) to grant a Officer rebate of fees or charges to any person as specified. s95 Power (as airport authority) to use any money representing the Chief Operating airport authority's share of the proceeds of any fees or charges Officer for such purposes as set out in the LTP;

Restriction: The financial outcome must be reported to Council for purposes of Annual Plan. ss99B Duty (as holder of an aviation document relating to an air traffic Chief Operating 99C service) to make statements and information available as Officer specified.

Civil Aviation Rules

Section Summary of Powers/Duties Primary Secondary Delegate Delegate Part 139 Powers and duties relating to aerodromes - certification, Chief Operating operation and use Officer

Land Transfer Act 2017 The powers and duties delegated are those of the Council as an “applicant”, “owner”, “ transferee”, “transferor”, ”lessor”, “lessee”, “grantor”, “grantee”, “territorial authority” or as otherwise specified.

Section Summary of Powers/Duties Primary Secondary Delegate Delegate s27 Duties (as owner/party to instrument) in relation to Property instruments for which an Authorisation and Instruction (A&I) Manager Form is required. Customer and Power to execute A&I Form and paper instruments not in the Regulatory form of a Deed Solutions Manager Restrictions: a. The power to execute A&I forms and paper instruments is Planning Lead limited to the Primary Delegates and cannot be sub- delegated. Property Management b. Subject also to General Delegations – Property Asset Lead Management s33 Power and duty (as owner/party to instrument), subject to Property Property s27 of the Act, to execute paper instruments, not in the form Manager Management Lead of a deed, in the manner specified in the regulations to the Act. Customer and Regulatory Restriction: The power to execute instruments is limited to the Solutions Primary Delegates and cannot be sub-delegated. Manager

Planning Lead ss58-60 Powers and duties (as person/ purchaser) in relation to Chief Operating Property Manager bringing an action against the Crown in the circumstances Officer specified. Chief Financial Restrictions: Officer a. Subject also to General Delegations – Legal Proceedings b. These powers and duties cannot be sub-delegated ss87-88 Powers and duties (as applicant) in relation to making Property Property application to the Registrar to have the transmission registered Manager Management Lead

Property Officer

Property Asset Advisor

60 Council Agenda (11 December 2018) - Audit and Risk Committee recommendations 2.1

Property Services Officer ss91-92 Duties (as owner/lessee) in relation to form and execution of Property Property a lease instrument/variation of lease instrument for the Manager Management Lead purpose of registration. Property Officer Restrictions: a. The power to execute an instrument is limited to the Property Asset Primary Delegate and cannot be sub-delegated. Advisor

b. The execution of a document in the form of a deed is not Property Services delegated - see s9 of the Property Law Act 2007 re execution Officer of a deed.

Power to do all things necessary to effect the registration of the lease instrument. s94 Duties (as lessor/lessee) in relation to form and execution of Property Property a lease surrender instrument; Manager Management Lead

Restrictions: Property Officer a. The power to execute a lease surrender instrument is limited to the Primary Delegate and cannot be sub-delegated. Property Asset Advisor b. The execution of a document in the form of a deed is not delegated - see s9 of the Property Law Act 2007 re execution Property Services of a deed. Officer

Power to do all things necessary to effect the registration of the lease surrender instrument s95 Power (as lessee/owner), to apply to the Registrar to register Property Property a lease as a replacement lease as specified. Manager Management Lead

Property Officer

Property Asset Advisor

Property Services Officer s96 Power (as registered lessee who acquires fee simple estate) Property Property to request Registrar to record on the record of title all of the Manager Management Lead interests, etc, to which the lease was subject. Property Officer

Property Asset Advisor

Property Services Officer s97 Duty (as lessor) to transfer land if covenants observed by Property Property lessee, in the circumstances specified; Manager Management Lead

Power and duty to do all things necessary to effect registration Property Officer of the transfer to lessee. Property Asset Advisor

Property Services Officer s98 Powers and duties in relation to providing proof of re-entry of Property Property any leasehold premises to the satisfaction of the Registrar Manager Management Lead

Property Officer

Property Asset Advisor

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Property Services Officer s108 Power (as grantor/grantee) to use transferring instrument for Property Property the purpose of registration and surrender of easements and Manager Management Lead profit a prendres. Planning Lead Property Officer Power to do all things necessary to effect registration of the transfer. Property Asset Advisor ss109-112 Powers and duties (as grantor/grantee/owner as applicable) Property Property in relation to the creation, surrender and variation of: Manager Management Lead easements; rights and powers implied into certain easements; in accordance with the provisions and subject to Customer and Property Officer the exceptions specified. Regulatory Solutions Property Asset Power and duty to execute instrument not in the form of a Manager Advisor deed; Planning Lead Property Services Restriction: Power and duty to execute instruments is Officer limited to the Primary Delegates and cannot be sub- delegated.

Power and duty (as owner) to do all things necessary to effect the registration of an easement ss116 Powers and duties (as grantor/grantee/owner as applicable) Property Property in relation to the notation of covenants as specified. Manager Management Lead

Customer and Property Officer Regulatory Restriction: Power and duty to execute instruments is Solutions Property Asset limited to the Primary Delegates and cannot be sub- Manager Advisor delegated. Planning Lead Property Services Officer s138 Power (as person that meets the requirements specified) to Property Property lodge a caveat against dealings as specified. Manager Management Lead

Property Officer

Property Asset Advisor

Property Services Officer s142 Power (as applicant, owner or any person having an estate Property or interest affected by a caveat against dealings), to apply to Manager the court for removal of caveat.

Restriction: Subject also to General Delegations – Legal Proceedings s143 Powers and duties (as owner/caveator) in relation to early Property Property lapse of a caveat against dealings Manager Management Lead

Property Officer

Property Asset Advisor

Property Services Officer ss144-145 Power (as caveator) to withdraw caveat or to consent to the Property Property registration instrument. Manager Management Lead

Property Officer

62 Council Agenda (11 December 2018) - Audit and Risk Committee recommendations 2.1

Property Asset Advisor

Property Services Officer s154 Duty (as grantee or other person or body corporate in whom or Property Property in which any land under the Act is vested as a public reserve) Manager Management Lead to hold that land subject to the trusts expressed or declared. Infrastructure Property Officer Manager Property Asset Advisor

Manager Parks and Open Spaces s174 Power (as person with interest in land that is the subject of an Property Property application seeking to bring the land under the Act) to lodge a Manager Management Lead caveat as prescribed. ss186-187 Power (as territorial authority) to lodge a caveat in the form Property Property prescribed for the purposes specified. Manager Management Lead

Planning Lead s208 Implied powers and duties (as covenantor) in relation to every Property Property instrument charging, creating, or transferring any estate or Manager Management Lead interest under the Act. Property Officer

Property Asset Advisor

Property Services Officer s219 Powers and duties (as applicant/party claiming under or in Property Property respect of an instrument) in relation to signing certificate re Manager Management Lead false statements as specified. Property Officer

Property Asset Advisor

Property Law Act 2007

Section Summary of Powers/Duties Primary Secondary Delegate Delegate ss307A- Powers and duties (as covenantor/covenantee) in relation to Property Property 307C covenants in gross; construction of and legal effect of Manager Management Lead covenants in gross as specified. Infrastructure Manager Parks and Manager Open Spaces

Customer and Planning Lead Regulatory Solutions Manager ss318A- Powers and duties in relation to enforcement, modification Property Property 318E and extinguishment of covenants in gross as specified. Manager Management Lead

Restriction: Subject also to General Delegations – Legal Infrastructure Manager Parks and Proceedings Manager Open Spaces

Customer and Planning Lead Regulatory Solutions Manager

63 Council Agenda (11 December 2018) - Audit and Risk Committee recommendations 2.1

General Delegations

Summary Proceedings Act 1957

Legal Proceedings: Infringements

Clause Summary of Powers/Duties Primary Secondary Delegate Delegate 11 Power to commence proceedings under section 21 of the Customer and Compliance Lead Summary Proceedings Act 1957 for infringement offences; to Regulatory make any decision on any matter relating to such proceedings; Solutions Enforcement and to take enforcement action in relation to a judgment Manager Coordinator obtained. Customer Support Coordinator

Business Support Coordinator

Bylaws

New Plymouth District Council Freedom Camping Bylaw 2017

Officers Area of Responsibility

Customer and Regulatory Solutions Manager, Compliance Lead, Freedom Camping Parking Officer, Enforcement Coordinator, Environmental Health Officer

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APPENDIX B Schedule of Delegations relevant to Water and Waste Team

Acts A-Z

Building Act 2004

Sections Summary of Powers/Duties Primary Secondary Delegate Delegate s134 Duty to classify dam in accordance with prescribed criteria. Infrastructure Quality and Manager Compliance Lead

Manager Three Technical Capability Waters Lead

s134B Duty (as owner of dam to which s134 applies) to classify the Infrastructure Technical Capability dam in the manner and in accordance with the criteria Manager Lead specified. Manager Three Quality and Waters Compliance Lead

s135 Duty to provide regional authority with dam classification and Infrastructure Technical Capability engineer’s certificate as prescribed. Manager Lead