Description: COAT-ARM Hastings District Council


Civic Administration Building

Lyndon Road East, Hastings

Phone:  (06) 871 5000

Fax:  (06) 871 5100










Tenders Subcommittee MEETING




Meeting Date:

Thursday, 12 October 2017




Landmarks Room

Ground Floor

Civic Administration Building

Lyndon Road East



Subcommittee Members

Chair: Councillor Travers

Acting Mayor Hazlehurst

Councillors Lyons, Nixon, Redstone and Watkins (Deputy Chair)

Chief Executive and Group Manager: Asset Management


Officer Responsible

Executive Advisor/Manager: Office of the Chief Executive

(Mr M Maguire)

(Quorum = 4)

Committee Secretary

Carolyn Hunt (Ext 5634)


Tenders Subcommittee – Terms of Reference

A Subcommittee of the Works and Services Committee


Fields of Activity

The Tenders Subcommittee is responsible for assisting council in its general overview of procurement and tender activity by accepting tenders which exceed the Chief Executive’s delegated authority to approve, for projects previously approved by Council or a Standing Committee within the delegated authority.


Chairman appointed by the Council

4 members appointed by the Council

Chief Executive

Group Manager: Asset Management


For the avoidance of doubt the references in this delegation to the ‘Chief Executive’ and ‘Group Manager: Asset Management’ extends to include any persons from time to time appointed in writing to those roles in an acting capacity.


Quorum – Any four members.


Delegated Powers

Authority to accept tenders for individual projects previously approved by the Council or a Standing Committee of the Council up to a value of $8,000,000

Responsibility to provide oversight and direction on tendering processes in general and/or specific issues relating to a particular project

The Committee reports to the Works and Services Committee





Tenders Subcommittee MEETING


Thursday, 12 October 2017



Landmarks Room

Ground Floor

Civic Administration Building

Lyndon Road East










1.         Apologies

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

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

2.         Conflict of Interest

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

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

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

3.         Confirmation of Minutes

Minutes of the Tenders Subcommittee Meeting held Thursday 28 September 2017, including minutes while the public were excluded.

(Previously circulated)

4.         Direct engagement of Techlight for the supply of Telematics light control units(LCU123)                                                                                                              5

5.         Additional Business Items

6.         Extraordinary Business Items 




File Ref: 17/998



REPORT TO:               Tenders Subcommittee

MEETING DATE:        Thursday 12 October 2017

FROM:                           Transportation Asset Manager

Marius van Niekerk

SUBJECT:                    Direct engagement of Techlight for the supply of Telematics light control units(LCU123)        



1.0       SUMMARY

1.1       The purpose of this report is to gain the subcommittee’s approval to procure 1,151 Light Control Units (LCU) by direct engagement.

1.2       The LCU’s form part of the accelerated streetlight to LED conversion programme approved by Council. In the first year of the conversion programme the LCU’s were included in the request for tender for LED lights and as a result attracted a handling charge from tenderers. The reason for the direct engagement is to avoid the handling charges.

1.3       Quotations were received from the sole licensed supplier.

1.4       This report concludes by recommending that LCU’s are procured by direct engagement of Techlight Ltd, the sole licensed supplier of the product for the supply of 1151 LCUs for the amount of $179,812 including air freight and excluding GST.

2.0       BACKGROUND

2.1       Hastings District Council is currently in the third year of an accelerated three year streetlight to Light Emitting Diodes (LED) conversion programme approved by Council. As part of the conversion programme each LED requires a light control unit (LCU) that enables the lights to be controlled and monitored from a central management system.

2.2       The use of a central management system (CMS) is essential to maximise the use of new technology LED lights. A CMS individually monitors each streetlight in terms of performance and power consumption. Streetlights may also be individually controlled in terms of on and off times and varying dimming profiles applied to maximise power savings and provide appropriate levels of light for the time of day. The system can also be used as a billing reference which may change HDC billing from a bulk charge to individually metered billing.

2.3       The LCU is the component that is installed on each streetlight and allows the CMS to communicate with the streetlight using a radio link through a data communications unit. The system has a web based software front end which enables the management of the lights.

2.4       Streetlights with control systems offer features with tremendous potential to save energy, mitigate waste, reduce light pollution and increase public safety. These features are likely to be in use for 20 years and would represent a significant lost opportunity if not adopted. This system is successfully installed at Auckland Transport with over 44,000 lights programmed to be replaced with LED lights equipped with telematics LCU’s in the next five years.

3.0       OPTIONS

3.1       Option 1 – Procure by direct engagement 1151 Telematics LCU.

3.2       The $152.00 (exclusive of GST) price is based on a quotation received from Telematics NZ for direct engagement. For comparison, the rate for the supply of the Telematics LCU last year was $197. This included handling charges added by the LED supplier. (The LCU supply was included in the Request for Tender for LED luminaire supply). Auckland Transport also use the Telematics LCU and the price for supply of 14000 units is $140.00 per unit by direct engagement. These rates include airfreight to reduce the delivery timeframes from 5–6 months to 3-4 months.

3.3       Council already owns a Telematics gateway which will be used to communicate with the LCUs.

3.4       Option 2 – Procure by separate request for tender a gateway and 1151 LCU.



3.5       The LCU price is an estimate received from Opus and is indicative. The units currently available in the market varies significantly in terms of specification (Radio based vs cellular 4G/3G vs Mesh networks) which may affect the price significantly. Phillips confirmed that their CityTouch (proprietary) connector which is the equivalent of a Telematics LCU, utilising a 3g mobile connection costs $190 per light.


3.6       Option 3Procure 1151 shortening caps to enable LED lights to function and wait for technology to mature.


3.7       This option was proposed to buy some time and wait for the LCU and gateway technology to mature in approximately 2 to 3 years. It is deemed that by then, the technology will be “plug and play” with any supplier’s equipment being able to work seamlessly with any other supplier’s equipment. With the subsidy rate change to 85%, announced recently by NZTA, it is deemed that this option is no longer viable.


4.1       When comparing the cost of the options it is clear that Option 3 has the highest cost due to the cost of installation and shortening cap. The installation of the shortening cap and then reinstallation of a LCU at a later stage is not economical when compared with options 1 and 2. Pursuing option 3 will also mean that council cannot take full advantage of the subsidy change recently announced by NZTA. Option 3 is therefore not considered a viable option.

4.2       Option 1 is the most cost efficient based on the price estimates and is delivering the best value for money as it is making use of the existing Telematics gateway. Option 2 requires the procurement of two additional gateways (assuming the cheapest option for additional gateway with 1000 unit capacity each) or, should a larger capacity gateway be considered, the cost would increase by an additional $ 25,000. There is also the added complexity it adds to the communications infrastructure setup which may have long term cost implication in terms of maintenance and operations. Option 2 has an element of the unknown as the price of LCU units could not be confirmed. It may also take an additional 6 weeks to procure and this may cause delays.

4.3       Option 1 does not require any additional spending apart from the quoted price received and all the components purchased will be used for the twenty years lifespan. Option 1 is the preferred option as it represents the best value for money, makes use of the existing Telematics gateway, has low risk and realises significant benefits of getting the LED’s installed in a short timeframe.


5.1       The preferred option is option 1 - Procure by direct engagement 1151 Telematics LCU123. The reasons for preferring this option are:


5.2       It is the most cost effective as it makes use of the existing Telematics Gateway

5.3       It has the lowest cost of the options considered.

5.4       It does not lock Council in to a specific vendor.


5.5       This option avoids handling charges that may be added to the cost if the supply of the LCU’s is included within the request for tender for LED lights.


5.6       This option has low risk as these units are currently in use on the streetlight network and is also in use by Auckland Transport for the LED conversion programme.


6.1       In accordance with Section 5.3 ‘Supplier Selection Methods’ of the Hastings District Council Procurement Strategy, it is requested that approval be given to now directly engage Techlight Ltd, being the nominated contractor to supply Telematics Light Control Units (LCU123)

6.2       Under Section 5.3, directly procuring from a single supplier may be approved when:

·    The goods or services require specialised skills or are very complex and there is a limited number of qualified suppliers

·    The required goods and services are available from only one source

·    Standardisation or compatibility with existing equipment or services is necessary, and can be achieved through only one supplier

·    The Supplier involved has already carried out a substantial amount of contributing works and prices have been competitively tested previously or the costs of proceeding through a competitive procedure are likely to be greater than any potential savings that may be secured through engaging in a competitive process.


7.1       The unit cost for each LCU is $152.00 excluding GST.  The estimated tendered price includes $4,860.00 for air freight.

7.2       This funds allocated to this project is shown below.


Budget Area

Estimated Tender Price(LED)

Supply of LCU

Ancillary Costs

Total Project Cost

Funds Allocated


Streetlight renewals







Ancillary costs includes installation and contingencies.


7.3       Funding for the purchase of LCU’s are subject to confirmation from NZTA approval to bring forward money allocated to 18/21 LTP to the 15/18 LTP as all funding in the existing 15/18 LTP is already committed.






A)        That the report of the Transportation Asset Manager titled Direct engagement of Techlight for the supply of Telematics light control units(LCU123) dated 12/10/2017 be received.

B)        The procurement by direct engagement from Techlight Limited of 1151 Telematics LCU123 for the amount of $179,812 be approved subject to availability of NZTA funding.


i)   With the reasons for this decision being that the objective of the decision will contribute to meeting the current and future needs of communities for good quality local infrastructure



There are no attachments for this report.