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
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Meeting Date:
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Thursday,
18 October 2018
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Time:
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9.00am
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Venue:
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Landmarks
Room
Ground Floor
Civic
Administration Building
Lyndon Road
East
Hastings
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Subcommittee Members
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Chair: Councillor
Travers
Ex Officio: Mayor Hazlehurst
Councillors Lawson, Nixon, Redstone and
Watkins (Deputy Chair)
Acting Chief Executive
Group Manager: Asset Management
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Officer
Responsible
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Group Manager: Economic Growth &
Organisation Improvement – Craig Cameron
(Quorum = 4)
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Committee
Secretary
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Carolyn Hunt (Extn 5634)
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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 or for which funds are allocated to the Council
by the Provincial Growth Fund (and related parties).
Membership
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 $10,000,000
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
HASTINGS DISTRICT COUNCIL
Tenders Subcommittee MEETING
Thursday, 18 October 2018
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VENUE:
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Landmarks Room
Ground Floor
Civic Administration Building
Lyndon Road East
Hastings
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TIME:
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9.00am
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A G E N D A
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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 General Counsel or the Democratic Support Manager
(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 4 October 2018, including minutes
while the public were excluded.
(Previously circulated)
4. CON2018056 - Water
Sampling & Testing Services - Drinking (Potable) Water 5
5. Additional
Business Items
6. Extraordinary
Business Items
7. Recommendation
to Exclude the Public from Item 8 9
8. Direct Engagement
of TechnologyOne for Procure to Pay Software
REPORT TO: Tenders
Subcommittee
MEETING DATE: Thursday 18
October 2018
FROM: 3 Waters Manager
Brett
Chapman
SUBJECT: CON2018056
- Water Sampling & Testing Services - Drinking (Potable) Water
1.0 Summary
1.1
The purpose of this report is to advise the
Tenders Subcommittee that a contract has been agreed with Water Testing HB Ltd
to cover our ongoing drinking water sampling and analysis programme.
1.2
The report also requests that the action of the
Chief Executive in agreeing to the direct engagement and the contract be
endorsed.
1.3
Contract No. CON2018056 - Water Sampling &
Testing Services – Drinking (Potable) Water includes all routine
sampling, analysis and reporting based on the international Standard NZS
ISO/IEC 17025:2018.
1.4
HDC and Water Testing HB Ltd have operated in a
service delivery arrangement for many years however, a more formal contractual
basis was necessary so that this critical service would continue to be
delivered enabling Council to meet its obligations under the Health Act and
Drinking Water Standards.
1.5
This contract is in effect a formalisation of
arrangements that have been in place for a number of years. The arrangement and
operational expenditure form part of our core drinking water obligations each
year.
1.6
The development of a routine schedule and the
pricing of this work demonstrates value to Council and the community.
1.7 As
the only Ministry of Health registered laboratory based locally, there was no
advantage in tendering this work and the contract was approved by the Chief
Executive Officer under his financial delegation. As there is potential that
the value of the contract could, on an annual basis exceed the level of the
Chief Executive’s delegation, officers consider it prudent that the direct
engagement and contract arrangements are reported to and endorsed by the
Subcommittee.
1.8 The
contract is expected to run for three (3) years with the ability for HDC to
extend the contract by 2 years and a further 2 years at its sole discretion up
to a maximum term of 7 years.
1.9 This
report concludes by recommending that this report be received and the Chief
Executive’s actions endorsed.
2.0 Background
and Scope of Work
2.1 The
scope of work is to manage and undertake water sampling and testing for the
Hastings District Council (HDC) Water Services Asset Management Group. All
sampling will occur within the Hastings District and will cover all water
supplies under HDC management.
2.2 The
water quality sampling and testing for drinking water supplies enables HDC to
comply with the requirements of the Drinking Water Standards for NZ 2005
(2008).
2.3 Further,
based on the Government Inquiry into the Havelock North contamination event,
gaps were identified in HDC’s approach to managing the sampling and testing
of drinking water such that the results for compliance could not be fully
relied upon.
2.4 Both
HDC and Water Testing HB have been developing improved standards, practices and
procedures to ensure that we can have a high degree of confidence in the
sampling and analytical results produced.
2.5 All
sampling and testing for compliance purposes will be carried out by an IANZ
accredited laboratory meeting the requirements of NZS ISO/IEC 17025:2018
– General Requirements for the Competence of Testing and Calibration
Laboratories.
2.6 This
standard contains requirements for laboratories to demonstrate that they
operate competently and are able to generate valid results. This standard is
also used as the basis for independent annual audits by IANZ to maintain
accreditation.
2.7 The
establishment of a formal contract encapsulates the work that has been underway
to ensure a high standard is applied and imbedded in all aspects of our
drinking water compliance programme.
2.8 Performance
standards and key deliverables are as follows:
3.0 Budget
3.1 The
Annual Budget Allocation for this routine operational work for the 2018/19
financial year is $1.0M excluding GST.
3.2 This
amount is based on an increased level of sampling and analysis following the
Havelock North contamination event in August 2016.
3.3 It is
noted that the sampling regime is determined from the HDC drinking Water
Monitoring Plan which sets out the extent and frequency of sampling to satisfy
operational and compliance needs. The contract sets out the agreed charge rates
for samples.
3.4 This
monitoring plan will be reviewed periodically to ensure that we are maintaining
our monitoring regime in accordance with changes that are being implemented as
part of our Drinking Water Strategy and as new projects are delivered over the
next 3 – 5 years.
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Budget Area
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Annual Operational Budget
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Total Contract Budget (3 Years)
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740.2342.100750.00
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$1,000,000 ex.
GST
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$3,000,000 ex.
GST
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Total
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$1,000,000 ex.
GST
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$3,000,000 ex.
GST
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Table 1
3.5 There
are no additional Council supplied materials for this contract.
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4.0 RECOMMENDATION
A) That the report of the 3 Waters Manager titled “CON2018056 -
Water Sampling & Testing Services - Drinking (Potable) Water” dated
18/10/2018 be received.
B) That the Chief Executive’s actions in entering into Contract
No. CON2018056 - Water Sampling & Testing Services – Drinking
(Potable) Water by direct engagement with Water Testing HB Ltd be endorsed.
C) That authority be granted to the Group Manager: Asset Management
to award, within the authorised budget allocation, variations and contract
extensions up to a maximum of seven (7) years.
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Attachments:
There are no
attachments for this report.
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TRIM File No. CG-14-17-00221
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HASTINGS DISTRICT COUNCIL
Tenders Subcommittee MEETING
Thursday, 18 October 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:
8. Direct
Engagement of TechnologyOne for Procure to Pay Software
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:
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GENERAL SUBJECT OF EACH MATTER TO BE CONSIDERED
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REASON FOR PASSING THIS RESOLUTION IN RELATION TO
EACH MATTER, AND
PARTICULAR INTERESTS PROTECTED
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GROUND(S) UNDER SECTION 48(1) FOR THE PASSING OF EACH
RESOLUTION
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8. Direct
Engagement of TechnologyOne for Procure to Pay Software
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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 pricing is
subject to further negotiation with the supplier..
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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.
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