Agenda of Tenders Subcommittee Meeting

Hastings District Council

Civic Administration Building

Lyndon Road East, Hastings

Phone: (06) 871 5000

Fax: (06) 871 5100

WWW.hastingsdc.govt.nz

Open

A G E N D A

Tenders Subcommittee MEETING

Meeting Date:

Thursday, 26 October 2017

Time:

9.00am

Venue:

Landmarks Room

Ground Floor

Civic Administration Building

Lyndon Road East

Hastings

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 (Extn 5634)

HASTINGS DISTRICT COUNCIL

Tenders Subcommittee MEETING

Thursday, 26 October 2017

VENUE:

Landmarks Room

Ground Floor

Civic Administration Building

Lyndon Road East

Hastings

TIME:

9.00am

A G E N D A

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 12 October 2017 including minutes while the public were excluded.

(Previously circulated)

4. Railway Road Stormwater 5

5. CON2017081 Lyndhurst Road Reconstruction 11

6. Additional Business Items

7. Extraordinary Business Items

8. Recommendation to Exclude the Public from Items 9 and 10 29

9. Green Bin Servicing and Maintenance Contract - Direct Engagement

10. Contract Extensions: Contract No. CON2013007 - Hastings Kerbside Refuse Collection and Contract No. CON2013008 - Hastings Kerbside Recycling Collection

File Ref: 17/1074

REPORT TO: Tenders Subcommittee

MEETING DATE: Thursday 26 October 2017

FROM: Project Manager

Amy Patterson-Horner

SUBJECT: Railway Road Stormwater

1.0 Summary

1.1 The purpose of this report is to seek approval from the Tenders Subcommittee to award Contract No. CON2017060 – Railway Road Stormwater Improvements.

1.2 A two stage tender process was followed with an initial Request for Expressions of Interest, with the aim to shortlist two contractors who would be invited to tender. Two tenders were received on the 4 October 2017. The contract is expected to start in mid-November and run for 6 months through to May 2018.

1.3 This report concludes by recommending that Contract CON2017060 be awarded to Fulton Hogan Ltd. at the tendered price of $2,286,249.10 (excl. GST).

2.0 Background and Scope of Work

2.1 This project is one of the stormwater Capital Projects listed in the Long Term Plan. The stormwater improvements are to reduce the frequency of flooding along Railway Rd and to ensure that the stormwater network is able to perform as per Councils stated level of service.

2.2 This contract is for the supply and construction of large diameter stormwater pipelines and other associated works within Railway Road, Hastings including:

§ 720m of 1200mm diameter stormwater pipeline

§ 230m of 600mm diameter stormwater pipeline

§ 17m of 375mm diameter stormwater pipeline

§ associated manholes

§ connections to existing mains and sumps

§ on-line renewal of approximately 70m of 150mm diameter sewer main with ancillary items.

2.3 Attachment 1 shows the location and extent of the proposed works

2.4 The contract period is 25 weeks, from 13 November 2017 to 17 May 2018. The objective is to reduce flooding issues, and improve the level of service for stormwater conveyance/management, while minimizing disruption to Southhampton Street and Eastbourne Street intersections during construction.

2.5 A two stage tender process has been followed with an initial expressions of interest publicly advertised via GETS in June 2017, and submissions received in July 2017 from 5 Contractors. Following evaluation of these submissions two contractors were shortlisted based on their capability, experience and track record that met the requirements of the Request for Expressions of Interest. The two contractors have participated in an early contractor involvement process between August and September to allow a better understanding of the contract works, risks and also refining of the design and contract requirements prior to a request for tender being issued.

2.6 There are some busy urban roads which will require restricted traffic movements and potential road closures. Liaison with the community and businesses has already begun and will be ongoing for the duration of the construction contract. Existing underground services have been potholed at certain locations along the pipe alignment, however the contractor will still need to confirm the location of existing services and protect them as part of the works.

3.0 Tenders Received

3.1 Tenders were invited from two shortlisted contractors through GETS. Two tenders were received by the closing date of Wednesday 4 October 2017. These are summarised in Table 1 below:

Name of Tenderer

Tendered Price

TAGS

Yes / No

1. Fulton Hogan Ltd.

$2,286,249.10

2. Mondaelphous Engineering NZ

$3,213,172.26

Table 1 - Summary of Tender Prices

4.0 Tags, Errors or Omissions

1.1 There were no errors or omissions in the tenders.

5.0 Tender Evaluation

5.1 In accordance with the conditions of tendering, tenders were evaluated in line with the lowest price conforming method. These procedures require that the lowest price tender is assessed for conformance to tender requirements. Other tenders are not assessed unless the lowest price is non-conforming.

5.2 The tender requirements to be met included a conforming statement of attributes, detailing the proposed methodology for construction of the works. The results of the tender evaluation were that the tender submitted by Fulton Hogan Ltd was conforming and is therefore the lowest price conforming tender.

5.3 This tender submitted by Fulton Hogan is 11% below the pre-tender contract estimate. A review of the schedule of prices did not identify any significantly low schedule rates and the overall tender price received is assessed as reasonable.

5.4 The tender evaluation worksheet is attached as Attachment 2.

6.0 Budget

6.1 Council’s Budget Allocation for this Project is as follows:

Budget Area	Tender Cost	Material Cost	Other Costs	Total Project Cost	Budget	Variance
710.6651.200628.00	$2,230,934	$ N/A	$186,690	$2,417,624	$2,426,525	$8,900
720.6831.200628.00	$55,315	$ N/A	$4,597	$59,912	$70,253	$10,340
Total	$2,286,249	$ N/A	$191,287	$2,477,537	$2,496,778	$19,241

Table 2 Budget Allocation

Note: Other Costs include: Fees, Auxiliary Works, and Site Investigation Works etc.

6.2 NOTE: that NZS 3910:2013 provides for certain events and circumstances to be treated as variations, resulting in additional costs and time extensions. The price includes a Contingency Allowance of $225,000.

7.0 Implementation Issues

7.1 There are no expected implementation issues with this contract.

8.0 RECOMMENDATION

A) That the report of the Project Manager titled “Railway Road Stormwater Improvements” dated 26/10/2017 be received.

B) That the tender from Fulton Hogan Ltd for Contract No. CON2017060 – Railway Road Stormwater Improvement in the sum of $2,286,249.10 plus $342,937.37 GST, totaling $2,629,186.47 be approved.

C) That authority to enter into Contract No. CON2017060 – Railway Road Stormwater Improvement on behalf of Council be delegated to the Group Manager: Asset Management or Alliance Team Manager.

D) That delegated authority be granted, on behalf of the Council, to the Group Manager: Asset Management or Alliance Team Manager to award cumulative contract variations to Contract No. CON2017060 - Railway Road Stormwater Improvement up to the value of the contingency sum of $225,000 plus GST.

Attachments:

1	Drawings combined set	CG-14-17-00095
2	Evaluation sheet	CG-14-17-00096

File Ref: 17/1092

REPORT TO: Tenders Subcommittee

MEETING DATE: Thursday 26 October 2017

FROM: Project Manager

Amy Patterson-Horner

SUBJECT: CON2017081 Lyndhurst Road Reconstruction

1.0 Summary

1.1 The purpose of this report is to seek approval from the Tenders Subcommittee to award Contract No. CON2017081 – Lyndhurst Road Reconstruction.

1.2 Tenders were invited under the Hastings District Council Prequalification System, Complex A for Road Reconstruction, water, Stormwater and Simple B for wastewater. Three tenders were received.

1.3 The contract is expected to run for 20 weeks.

1.4 This report concludes by recommending that Contract CON2017081 be awarded to Fulton Hogan Ltd at the tender price of $1,250,134.56 (excl. GST).

2.0 BACKGROUND AND SCOPE OF WORK

2.1 The contract works includes the construction of bulk stormwater, water and wastewater pipelines and ancillary items to the end of Lyndhurst Road to service the new residential development area – Lyndhurst Stage 2.

2.2 The reconstruction and upgrade of Lyndhurst Road from Nottingley Road to end to sufficiently cater for increased traffic demands (vehicular, pedestrian and cyclist) associated with the proposed residential development and future traffic flows from the HB Regional Sports Park.

3.0 TENDERS RECEIVED

3.1 This type of work has been categorised as Class 1 Work Complex A for Road Reconstruction, Water, Stormwater and Simple B Wastewater works as specified in Council’s Pre-Qualification Manual. Tenders were sent to the appropriate pre-qualified contractors via GETs. Three tenders were received by the closing date of Wednesday 4^th October 2017. These are summarised in Table 1 below:

The table below shows the Price Index for each tendered price:

Name of Tenderer	Tendered Price	TAGS Yes / No
1. Fulton Hogan Ltd	$1,250,134.56	No
2. Russell Roads Ltd	$1,195,775.69	No
3. Downer NZ Ltd	$1,321,249.00	No

Table 1 - Summary of Tender Prices

4.0 TAGS, ERRORS OR OMISSIONS

4.1 There were no tags, errors or omissions in the tenders.

5.0 TENDER EVALUATION

5.1 In accordance with the conditions of tendering, tenders were evaluated in line with the lowest price conforming methodology.

5.2 The lowest priced tender submission from Russell Roads was evaluated for completeness against the required documents set out in Section B4 of the RFT.

5.3 The programme submitted did not meet the contractual requirements.

5.4 Methodology baseline eliminators for each sub attribute item required were evaluated.

5.5 The Russell Roads methodology submission was considered non-conforming. Refer to evaluation summary in table 2 below.

5.6 The next lowest priced tender received from Fulton Hogan was evaluated for completeness against the required documents set out in Section B4 of the RFT.

5.7 The programme provided was ambiguous in nature and not clearly defined with dates.

5.8 The Fulton Hogan methodology submission was considered conforming. Refer to evaluation summary in table 2 below.

Tenderer	Methodology Attributes
Tenderer	Work Procedures	Management of Programme	Risk Management	Financial Management	Quality Assurance	Environmental Management	Health and Safety Management	Resolving Non Compliance	Qualified Water Services Personnel
Russell Roads Ltd	Fail	Pass	Pass	Pass	Pass	Fail	Fail	Pass	Fail
Fulton Hogan Ltd	Pass	Pass	Pass	Pass	Pass	Pass	Pass	Pass	Pass
Downer NZ Ltd	Not Evaluated	Not Evaluated	Not Evaluated	Not Evaluated	Not Evaluated	Not Evaluated	Not Evaluated	Not Evaluated	Not Evaluated

Table 2 - Summary of Tender Evaluation

5.9 Following confirmation that the Fulton Hogan submission was considered conforming a tender clarification was sorted to confirm the programme submitted would meet the contractual requirements set out in the RFT. Fulton Hogan confirmed this.

5.10 The Tender Evaluation Teams report is attached and provides further detail.

5.11 The Engineers estimate was $1,075,235.20. Although the tender prices received are 10 – 25% above the Engineers estimate the spread between prices is considered reasonable and there is no concern around out of step pricing. Due to the current elevated workload of the local contracting market, rates higher than the Engineers estimate which are derived from historical rates is not unexpected.

6.0 BUDGET

6.1 Council’s Budget Allocation for this Project is as follows:

Budget Area	Tender Cost	Other Costs	Total Project Cost	Budget	Variance
Lyndhurst Stormwater – 710.6651.201099	$480,361.17	$105,000	$585,361.17	$896,796	$311,434.83
Lyndhurst Wastewater –720.6671.201099	$120,543.24	$16,000	$143,543.24	$385,000	$241,456.76
Lyndhurst Water Supply - 740.6631.202022	$56,207.67	$13,000	$72,207.67	$138,500	$66,292.33
Lyndhurst Road – 603.6618.201103	$593,022.48	$120,000	$713,022.48	$750,000	$36,977.52
Total	$1,250,134,56	$254,000	$1,514,134.56	$2,170,296

Table 3

Note: Other Costs include: Fees, Auxiliary Works, and Site Investigation Works etc.

6.2 The variance outlined in table 3 above are required to be retained to extend servicing for Lyndhurst stage 2 beyond the existing road reserve.

6.3 NOTE: that NZS 3910:2003 provides for certain events and circumstances to be treated as variations, resulting in additional costs and time extensions. The price includes a Contingency Allowance of $100,000.00.

7.0 IMPLEMENTATION ISSUES

7.1 There are no expected implementation issues with this contract.

8.0 RECOMMENDATION

A) That the report of the Project Manager titled “CON2017081 Lyndhurst Road Reconstruction” dated 26/10/2017 be received.

B) That the tender from Fulton Hogan Ltd for Contract No. CON2017081 – Lyndhurst Road Reconstruction for the sum of $1,250,134.56 excluding GST, be approved.

Attachments:

Lyndhurst Road Reconstruction MWHBusiness Support and MTP Tools

CG-14-17-00099

Agenda Item: 8

HASTINGS DISTRICT COUNCIL

Tenders Subcommittee MEETING

Thursday, 26 October 2017

RECOMMENDATION TO EXCLUDE THE PUBLIC

SECTION 48, LOCAL GOVERNMENT OFFICIAL INFORMATION AND MEETINGS ACT 1987

THAT the public now be excluded from the following part of the meeting, namely:

9. Green Bin Servicing and Maintenance Contract - Direct Engagement

10. Contract Extensions: Contract No. CON2013007 - Hastings Kerbside Refuse Collection and Contract No. CON2013008 - Hastings Kerbside Recycling Collection

The general subject of the matter to be considered while the public is excluded, the reason for passing this Resolution in relation to the matter and the specific grounds under Section 48 (1) of the Local Government Official Information and Meetings Act 1987 for the passing of this Resolution is as follows:

GENERAL SUBJECT OF EACH MATTER TO BE CONSIDERED

REASON FOR PASSING THIS RESOLUTION IN RELATION TO EACH MATTER, AND

PARTICULAR INTERESTS PROTECTED

GROUND(S) UNDER SECTION 48(1) FOR THE PASSING OF EACH RESOLUTION

9. Green Bin Servicing and Maintenance Contract - Direct Engagement

Section 7 (2) (i)

The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).

Negotiations are yet to be undertaken with the Contractor..

Section 48(1)(a)(i)

Where the Local Authority is named or specified in the First Schedule to this Act under Section 6 or 7 (except Section 7(2)(f)(i)) of this Act.

10. Contract Extensions: Contract No. CON2013007 - Hastings Kerbside Refuse Collection and Contract No. CON2013008 - Hastings Kerbside Recycling Collection

Section 7 (2) (i)

The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).

Negotiations are yet to be undertaken with the Contractor.

Section 48(1)(a)(i)

Where the Local Authority is named or specified in the First Schedule to this Act under Section 6 or 7 (except Section 7(2)(f)(i)) of this Act.

Hastings District Council

Lyndon Road East, Hastings

Tenders Subcommittee – Terms of Reference