Big savings with procurement strategy?

At a special meeting of Project & Services Committee elected members received a detailed presentation from staff and consultants on procurement of council goods, services and contracts.

There were no media present. With $1.3 billion expenditure in the 10 year plan, if we could save 6% by the way we go about our business that amounts to around $80 million savings. Procurement expert Tim Munroe was present and staff have also engaged Clive Tilby another well known expert to review Council's methodology with a view to significant savings. From July 2008 to August 2009 63 Capital Expenditure contracts were let. 46 were lowest price conforming, 16 weighted attributes (this is where you get brownie points for expertise) and 1 invited contract. (This is where specialist knowledge is required). Roads were $13.2 million and 3 waters (wastewater, water and storm water) $30.5 million.

Opportunity for substantial savings
I won't go on with the stats but there is opportunity for substantial savings by sharing risks and rewards, combining contracts, lengths of contracts, and costs of tendering to name a few options. This initiative came about after a discussion earlier this term about the virtues of design and build. This type of contract has its place but due to the specialist nature of some of Council requirements also has its limitations. For example, it may be possible to reduce initial capital costs at the expense of long term maintenance. So it's all a big balancing exercise which will go to the next step at Project & Services on December 8 with direction settling on value for money, risk/cost trade offs, support for local suppliers and how to support new market entrants.

Seeking resolutions
At the end of this meeting Mayor Stuart Crosby alerted Councillors to a meeting between 6 metro Mayors (of which Tauranga is now included) and Government over leaky homes. Government is seeking a resolution to what Mayor Stuart described as the gravy train of lawyers and consultants chewing up money which more properly should be used on fixing the homes. Government's idea is to get Council's, suppliers, Government agencies all paddling the same way instead of scrapping amongst each other. It's an $11.6 billion problem according to Government estimates and thinking is that if it had of been an earthquake disaster of $11.6 billion everyone would be co-operating.

A sensible way forward
On another level in Tauranga, Council stepped in and purchased 42 homes after the May 18 2005 flood disaster. It's all cleared up – but – we could still be embroiled in expensive litigation with people's lives on hold or worse, in turmoil. So provided insurance companies aren't let off the hook this is a sensible way forward. Can't help but mention what an appalling idea it was to can the apprenticeship system, change tried and tested building methods, change supervisory methods, allow untreated timbers and blur lines of accountability. Just look at all those Beazley Homes built in the 50's and 60's. Cheap effective with few problems now around 50 years old. In Tauranga we were one of the first Councils to reinstate requirement for a cavity between cladding and interior frame. Not rocket science! It seems no matter what Council does it gets clobbered by the Bay Times.

Duty of safety to the public
Headlines last Saturday had it that bars on The Strand were under financial threat due to Councils action in shifting the pedestrian accessway from adjacent to the building front along The Strand to adjacent to the road. This allows these bars and restaurants to fence off their respective areas so they can effectively control their area of responsibility from 4 pm Thursday, Friday and Saturday night. If moving of the accessway for this time is the downfall of the business then it must have been on a knife edge. A few years ago I was one of a minority of councillors promoting being able to sit outside with a meal, a drink and good company. It took a long time and now it seems that for some, it's a free for all entertainment strip after 11 pm. Well, to those bars complaining you are in a privileged position, occupying public space (sure, at a cost) and Council has a safety duty to the law-abiding public as well. We're having a year's trial and we are genuinely trying to find the middle road. But public safely and public interest is paramount. Why this outburst of negative publicity was made is hard to figure unless you were trying to attract troublemakers. Another option is to close off the outside drinking and go back to how it was. I don't promote that, but firm definite action has to be taken to stop the anarchy and violence going on down there from 11 o'clock on. One other possibility is that the police will step in and request licensing action restrictions. And yes, the cretins arriving, already tanked up looking for trouble are not an individual bar's responsibility but perhaps a collective one? Council has consulted with bars, restaurants and police until it is blue in the face – over the past 2 years.

Step closer to community centre
Another Project Committee meeting saw the around $3 million Arataki Community Centre at Grenada Park a step closer. After a lengthy and fully participated debate which included Arataki Community leaders it was decided to site it up by the skate bowl end on a majority vote 8-2.

Mike Baker and Hayden Evans thought it would be better sited elsewhere. Catherine Stewart abstained. Toilet amenities in it will mean a bit of a hike for sports field users at the Monowai St end but that's the compromise for agreeing to the site the Community leaders unanimously asked for. Graffiti in the skate bowl is disgusting and during the debate I asked why, when ratepayers had funded security cameras to help identify offenders. The Police Senior Sergeant attached to the graffiti squad told us that most cameras were useless, not connected to a central console for immediate action and not maintained properly. I was disappointed to learn this to say the least and asked for a staff report. These things cost plenty and were promoted to Council as a significant deterrent. Not so apparently.

By Cr Bill Faulkner