Agenda of Tenders Subcommittee Meeting

HASTINGS DISTRICT COUNCIL

Tenders Subcommittee MEETING

Thursday, 22 February 2018

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 8 February 2018.

(Previously circulated)

4. CON2018001 Professional Engineering Services - High Speed Road Condition Data Collection Surveys 2018 - 2021 5

5. LED Installation - CON2014001 - Hastings District Network Maintenance And Renewals - Street Lighting And Traffic Signals 2014-2017 9

6. CON2017106 - Waimarama Road, Middle Road and Rochfort Road Area Wide Pavement Treatment 13

7. Additional Business Items

8. Extraordinary Business Items

9. Recommendation to Exclude the Public from Item 10 14

10. CON2018016 Procurement of LED Luminaires V-Category Roads 2017/18

File Ref: 18/92

REPORT TO: Tenders Subcommittee

MEETING DATE: Thursday 22 February 2018

FROM: Transportation Asset Manager

Marius van Niekerk

SUBJECT: CON2018001 Professional Engineering Services - High Speed Road Condition Data Collection Surveys 2018 - 2021

1.0 Summary

1.1 The purpose of this report is to seek approval from the Tenders Subcommittee to award Contract No. CON2018001 Professional Engineering Services - High Speed Road Condition Data Collection Surveys 2018 – 2021.

1.2 The contract is expected to run for three years from 1 July 2018 to 30 June 2021. There is provision in the contract for two optional one year extensions (3 +1 +1).

1.3 This report concludes by recommending that Contract Con2018001 Professional Engineering Services - High Speed Road Condition Data Collection Surveys 2018-2021 be awarded to WDM Limited at the tendered price of $199,722.40 (excl. GST).

2.0 Background and Scope of Work

2.1 This work is allowed for in the LTP.

2.2 The Contract scope allows for the collection of road condition data such as skid resistance, rutting, roughness and flushing.

In addition to asset management planning and decision making support, the collection of pavement condition data is a condition of NZTA subsidy funding, the results from which are used by NZTA as a key performance indicator to verify value for money at local government and national government levels and to draw comparisons between local authorities and their peers. It is also used as a benchmark for auditing and for reviewing of maintenance funding allocations.

2.3 This is a Local Authority, measure and value contract for the collection and supply of high speed road condition data for the Hastings District Council’s (HDC) sealed road network, to be conducted in terms of the ACENZ/IPENZ Conditions of Contract for Consultancy Services (CCCS).

3.0 Health and Safety and Risk Management

3.1 The health and safety expectations of the contract is set out in the Scope of Services Appendix A, Item J of the contract document and includes the following:

3.2 The main risks associated with this project is working on the road as a mobile operation.

3.3 The Consultant shall comply at all times with the Health and Safety at work Act 2015.

3.4 The Consultant shall comply at all times, while working on the road with the manual TNZ – COPTTM.

3.5 Before carrying out any work on the road network the consultant shall submit for approval by the Client a traffic management plan detailing the traffic control methods that will be employed during the various data collection activities.

3.6 Before carrying out any work on the road network the Consultant shall submit for a health and safety inspection by the client to check that the required safety gear and plans are relevant and in order.

4.0 COMMUNICATIONS AND PUBLIC RELATIONSHIPS MANAGEMENT

4.1 This works will be carried out across the rural and urban networks as a mobile operation, hence the risks related to communications are low.

4.2 No specific communications plan is required, however Council website and Facebook pages will be updated with relevant details regarding the works.

5.0 Tenders Received

Tenders for the above contract closed on 4 pm on Wednesday 13 December 2017 and were opened in the presence of Robyn Comrie and recorded by Christine Hilton.

Name of Tenderer

Tendered Price

TAGS

Yes / No

1. WDM Limited

$199,722.40

Table 1 - Summary of Tender Prices

6.0 TENDER PROCESS

6.1 Tender documents indicated that the successful tendered would be determined based on lowest price conforming method in accordance with the Hastings District Council Procurement Manual.

7.0 Tender Evaluation

7.1 The evaluation was carried out by Adam Jackson, Marius van Niekerk and Martin Hunter (Stantec).

7.2 The Project Manager confirms that the evaluation team have no personal relationships with any owners, directors or employees of the companies listed below, or any financial or commercial interest in any of the companies listed below, that would create a conflict of interest with respect to this tender evaluation process. A copy of the evaluation information is appended to this letter.

7.3 As shown in the attached evaluation form the tenderer passed all the required attributes, consisting of:

· Relevant experience

· Relevant skills

· Methodology

· Resources

8.0 Budget

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

Budget Area

Tender Cost

Material Cost

Other Costs

Total Project

Cost

Budget

Variance

Subsidised Transportation Contracted Services

$199,722.40

$0.0

$199,722.40

$205,000.00

$5,277.60

Total

$199,722.40

$0.0

$199,722.40

$205,000.00

$5,277.60

Table 3

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

9.0 RECOMMENDATION

A) That the report of the Transportation Asset Manager titled “CON2018001 Professional Engineering Services - High Speed Road Condition Data Collection Surveys 2018 - 2021” dated 22/02/2018 be received.

B) That contract 2018001 Professional Engineering Services – High Speed Data Collection Surveys be awarded to WDM Limited at the tendered amount of $199,722.40 (excl GST).

Attachments:

Tender evaluation form

PRJ18-1-0011

File Ref: 18/123

REPORT TO: Tenders Subcommittee

MEETING DATE: Thursday 22 February 2018

FROM: Transportation Asset Manager

Marius van Niekerk

SUBJECT: LED Installation - CON2014001 - Hastings District Network Maintenance And Renewals - Street Lighting And Traffic Signals 2014-2017

1.0 SUMMARY

1.1 The purpose of this report is to request the approval of a variation to continue with the installation of LED units in storage, under CON2014001 Hastings District Network maintenance and renewals – street lighting and traffic signals 2014-2017.

1.2 On 14 September 2017 the Tender subcommittee approved the tender recommendation report to award the installation of P category lights to Pope Electrical as a variation to CON2014001 Hastings District Network maintenance and renewals – street lighting and traffic signals 2014-2017 for the amount of up to $256,967. This amount has now been spent.

1.3 CON2017093 Installation of LED luminaires 2017/18 is currently out for tender.

1.4 It will take another six weeks before CON2017093 Installation of LED luminaires 2017/18, can be awarded.

1.5 The installation of all LED luminaires has to be completed by December 2018 to qualify for NZTA subsidy.

1.6 The Council is required to give effect to the purpose of local government as prescribed by Section 10 of the Local Government Act 2002. That purpose is to 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. Good quality means infrastructure, services and performance that are efficient and effective and appropriate to present and anticipated future circumstances.

1.7 The objective of this decision relevant to the purpose of Local Government is to procure and install good quality local infrastructure that is safe and efficient to present and anticipated future circumstances.

1.8 This report concludes by recommending that a variation to CON2014001 Hastings District Network maintenance and renewals – street lighting and traffic signals 2014-2017 for the installation of P category LED luminaires for the amount of $160,000 excluding GST be approved.

2.0 BACKGROUND

2.1 On 14 September 2017 the Tender subcommittee approved a variation for the installation of P category lights to Pope Electrical Ltd. This was a variation to CON2014001 Hastings District Network maintenance and renewals – street lighting and traffic signals 2014-2017 for the amount of up to $256,967.

2.2 The award of CON2018016 Procurement of LED luminaries for V-Category roads 2017/18 is eminent. The delivery timeframes quoted by the successful tenderer is 12 – 14 weeks from contract award.

2.3 There are 2027 P category LED units in storage.

3.0 CURRENT SITUATION

3.1 CON2017093 Installation of LED luminaires 2017/18 for the installation of the V category lights and the remaining P category lights in storage is out for tender at the moment. With Council procurement rules it will take at least 6 weeks for this tender to be awarded.

3.2 Pope electrical has resources available to continue with the installation of P category lights currently in storage.

3.3 Under the current agreed rates and within the 6 weeks available it is estimated that a further 600 lights can be installed.

3.4 Utilising the current agreed rates it is estimated that a further $160,000 is required.

4.0 HEALTH AND SAFETY AND RISK MANAGEMENT

4.1 CON2014001 Hastings District Network maintenance and renewals – street lighting and traffic signals 2014-2017 Appendix 3 Contains a hazard register that highlights to the contractor the hazards that may be present on site.

4.2 An up to date Health and Safety checklist (Appendix 4) and certification that supervisors have appropriate training in applying the appropriate certification in terms of the use of safety standards have been supplied by the contractor.

4.3 The Supplier shall comply with relevant obligations under the Health and Safety in Employment Act 2015. Nothing in the Contract shall be taken to limit the obligations of the Supplier under the Health and Safety in Employment Act 2015.

4.4 The main risks associated with this project is working and managing live traffic, working at height and working with electricity infrastructure.

5.0 COMMUNICATIONS AND PUBLIC RELATIONSHIPS MANAGEMENT

5.1 The general public is aware of the LED conversion as it was reported in social media and the news media. To date 1300 lights have been changed and the general response from the public has been positive.

5.2 If we do receive public complaints, council staff and contractors work together with the public to resolve any issues quickly.

6.0 OPTIONS

6.1 Option A – approve a variation of $160,000 to continue with the installation of P category LED luminaires

6.2 Option B – Do not approve the variation

7.0 SIGNIFICANCE AND ENGAGEMENT

7.1 This report is not of significance considering Councils significance policy

8.0 ASSESSMENT OF OPTIONS (INCLUDING FINANCIAL IMPLICATIONS)

8.1 Option A: - Approve the variation to proceed with the installation of a further 600 P category lights.

8.2 Installation can continue while the requests for tender (RFT) for CON2017093 Installation of LED luminaires 2017/18 is progressed.

8.3 Rates for installation are deemed competitive when compared with rates paid for similar work completed by other councils.

8.4 Realise electricity savings as soon as LED lights have been installed.

8.5 Continuing the installation will reduce workload for the installation of P and V cat lights as this work has to be completed by December 2018 to qualify for 85% subsidy offered by NZTA.

8.6 Improved light levels will positively impact on the amenity and security of the community.

8.7 Option A will require funding of $160,000.

8.8 There is sufficient budget available to fund the work.

8.9 Option B: Do not approve the variation

8.10 Due to the number of lights needing installation and the timeframes imposed, not approving the variation may lead to delays in completing the programme on time by the end of 2018.

8.11 Any delays may impact on the tight programme and this may have the following negative outcomes:

· Delay in realising electricity savings by not installing LED light as soon as possible

· Delay in improved amenity and community security provided by LED luminaires through improved illumination

9.0 PREFERRED OPTION/S AND REASONS

9.1 Option A is the preferred option due to the following reasons:

9.2 There is sufficient budget available to fund the work.

9.3 Installation can continue immediately relieving pressure on the future installation programme.

9.4 Rates for installation are deemed competitive when compared with rates paid for similar work completed by other councils.

9.5 Electricity savings can be realised as soon as LED lights have been installed.

9.6 Improved illumination will positively impact on the amenity and security of the community.

10.0 BUDGET INFORMATION

10.1 Council’s budget allocation is shown in Table 1.

Budget Area

Variation Cost

Total Project

Cost

Local Share at 15%

Remaining Budget

Variance

Street light renewals

$160,000

$24,000

$2,170,000

$2,010,000

Total

$160,000

$24,000

$2,170,000

$2,010,000

Table 1

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

This is subsidised at 85% from NZTA.

10.2 The variance will be allocated to CON2017093 Installation of LED luminaires 2017/18

11.0 RECOMMENDATIONS AND REASONS

A) That the report of the Transportation Asset Manager titled “LED Installation - CON2014001 - Hastings District Network Maintenance And Renewals - Street Lighting And Traffic Signals 2014-2017” dated 22/02/2018 be received.

B) That a variation be awarded to Pope Electrical Ltd for contract no. CON2014001 Hastings District Network maintenance and renewals – street lighting and traffic signals 2014-2017, for $160,000 excluding GST for the installation of up to 600 LED lights in accordance with the P category LED luminaries rate.

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 by:

i) Realising electricity savings as soon as LED lights have been installed

ii) Improving light levels will positively impact on amenity and security of the community.

Attachments:

There are no attachments for this report.

File Ref: 18/124

REPORT TO: Tenders Subcommittee

MEETING DATE: Thursday 22 February 2018

FROM: Transportation Asset Manager

Marius van Niekerk

SUBJECT: CON2017106 - Waimarama Road, Middle Road and Rochfort Road Area Wide Pavement Treatment

1.0 SUMMARY

1.1 The purpose of this report is to obtain approval to exceed the contract sum for CON2017106 – Waimarama Road, Middle Road and Rochfort Road Area Wide Pavement Treatment.

1.2 This report concludes by recommending that the contract sum for CON2017106 – Waimarama Road, Middle Road and Rochfort Road Area Wide Pavement Treatment is increased by $60,000 to $628,786.83 (excl. GST).

2.0 BACKGROUND

2.1 On 21 December 2017 the Tenders Subcommittee approved the tender recommendation report to award the above contract to Russell Roads Limited at the amended price of $568,786.83 (excl. GST).

2.2 Work started on site in mid-January 2018, with completion expected mid-March 2018.

3.0 CURRENT SITUATION

3.1 The quantity of the pavement materials required to reconstruct the road has increased over and above the scheduled amount. This requires additional funds of $60,000 which is outside the contingency budget.

3.2 The additional costs of $60,000 puts the total contract sum at $628,786.83 (excl. GST), which exceeds the Contract Sum which was approved by the Tenders Subcommittee.

4.0 HEALTH AND SAFETY AND RISK MANAGEMENT

4.1 As part of the contract submission a health and safety checklist and supporting evidence have been submitted to confirm the contractor’s health and safety competence and to acknowledge receipt of the project specific hazard register.

5.0 COMMUNICATIONS AND PUBLIC RELATIONSHIPS MANAGEMENT

5.1 Public consultation regarding the project works have been completed during the design phase and a communications plan is being implemented, communicating with the public regarding the progress on the projects and likely completion dates.

6.0 PROJECT FINANCIAL ALLOCATION

Budget Area	Tender Price	Ancillary Costs	Additional Pavement Cost	Total Project Cost	Funds Allocated	Variance
Middle Road	$370,249.83	$59,448.00	$30,000.00	$459,697.83	$465,000.00	$5302.17
Waimarama Rd	$198,537.00	$60,116.00	$30,000.00	$288,653.00	$295,000.00	$6347.00
Total	$568,786.83	$119,629.00	$60,000.00	$748,350.83	$760,000.00	$11649.17

6.1 A Contract contingency of $50,000 (Middle Road and Waimarama Road only) has been included in the above costs.

6.2 The “Ancillary Costs” items include design fees and auxiliary works by others outside the contract.

6.3 The additional pavement cost of $60,000 will be funded from the HDC Minor Safety budget.

7.0 RECOMMENDATIONS AND REASONS

A) That the report of the Transportation Asset Manager titled “CON2017106 - Waimarama Road, Middle Road and Rochfort Road Area Wide Pavement Treatment” dated 22/02/2018 be received.

B) That the contract sum for CON2017106 – Waimarama Road, Middle Road and Rochfort Road Area Wide Pavement Treatment is increased by $60,000 to $628,786.83 (excl. GST).

Attachments:

There are no attachments for this report.

Trim File No.:

Agenda Item: 9

HASTINGS DISTRICT COUNCIL

Tenders Subcommittee MEETING

Thursday, 22 February 2018

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:

10 CON2018016 Procurement of LED Luminaires V-Category Roads 2017/18

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

10 CON2018016 Procurement of LED Luminaires V-Category Roads 2017/18

Section 7 (2) (h)

The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.

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).

The information contained in the report is commercially sensitive..

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