Meeting of the Tenders Committee
Date: Wednesday 4 November 2015
Hawke's Bay Regional Council
159 Dalton Street
Item Subject Page
2. Conflict of Interest Declarations
3. Confirmation of Minutes of the Tenders Committee held on 23 September 2015
4. Matters Arising from Minutes of the Tenders Committee held on 23 September 2015
5. Tenders for Taipo Stream at Park Island, Realignment & Enhancement 3
Wednesday 04 November 2015
Subject: Tenders for Taipo Stream at Park Island, Realignment & Enhancement
Reason for Report
1. Contractors with suitable equipment have been invited to tender for the above contract which is for the construction of approximately 810 metres of channel involving approximately 51,700 cubic metres of excavation and disposal of material, extension of stormwater pipelines, construction of a footbridge, and associated ancillary work.
2. There are several purposes to this project:
2.1. The project is part of HBRC’s wider enhancement initiative under Project No. 291 – item 2 (Heretaunga Plains Flood Control Scheme-Napier/Meeanee/Puketapu Enhancement) and therefore will result in an environment that is in-line with our vision for urban waterways. This includes improved aquatic habitat, a reduction in the necessity for weed management, native plantings that reflect the local environment, and an enhanced public open space.
2.2. The project will divert the existing channel to allow for expansion of the hockey grounds and the addition of 2 new hockey fields.
2.3. The project will provide additional storage to relax the existing confined stormwater conditions.
3. The project is a joint project between Hawke’s Bay Regional Council and Napier City Council, with direct benefits provided to Hawke’s Bay Hockey as well as the wider community.
4. Additional capacity for expected stormwater from a nearby sub-division has been assimilated into the Taipo Stream design under an opportunity contribution agreement between HBRC, NCC, and the sub-division developer (Silverhills Trustees Ltd). This agreement effectively allows the developer to discharge excess stormwater from the development directly into the Taipo Stream in lieu of providing on-site detention storage.
Financial and Resource Implications
5. HBRC is currently holding a contribution of $100K from NCC from the 2013-14 and 2014-15 financial years toward this project.
6. NCC has agreed to another $50K contribution from the 2015-16 financial year toward this project.
7. HBRC has set aside a contribution of $55K from the 2014/2015 financial year toward this project.
8. Silverhills Trustees Ltd. has agreed to an opportunity contribution of $100K toward this project to be paid in full by 30 June 2016.
9. Total holdings toward this project as of 30 June 2016 will be $305K.
10. HBRC engineer’s estimate for this project was $333,376.00.
11. The tender was advertised on 3 and 7 October 2015 and opened on 5 October 2015. Twelve tender sets went out to contractors with 3 tenders returned by the closing date of 22 October 2015.
12. The 3 returned tenders were from:
12.1. HES Earthmoving Ltd
12.2. Frank Burgiss Ltd
12.3. Gair Contracting Ltd.
13. The price variance of the 3 returned tenders was $221,400.00 to $502,618.14, with the lowest tender from Gair Contracting conforming and meeting all required conditions.
14. The expected built cost of the project is $254,610.00 (lowest tender @ $221,400.00 + GST) + $17,724.38 (plantings @ $15,412.50 + GST) + $10,000 (design, resource consent, consultation, and supervision) = $282,334.40.
15. Current holdings versus expected build cost for this project result in a $22,665.63 surplus.
Decision Making Process
16. Council is required to make a decision in accordance with the requirements of the Local Government Act 2002 (the Act). Staff have assessed the requirements contained in Part 6 Sub Part 1 of the Act in relation to this item and have concluded the following:
16.1. The decision does not significantly alter the service provision or affect a strategic asset.
16.2. The use of the special consultative procedure is not prescribed by legislation.
16.3. The decision does not fall within the definition of Council’s policy on significance.
16.4. Options that have been considered are discussed in this report.
16.5. The decision is not inconsistent with an existing policy or plan.
That the Tenders Committee:
1. Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted policy on significance and that the Committee can exercise its discretion under Sections 79(1)(a) and 82(3) of the Local Government Act 2002 and make decisions on this issue without conferring directly with the community and persons likely to be affected by or to have an interest in the decision.
2. Accepts the conforming lowest price tender from Gair Contracting and agrees to this project proceeding on 18 January 2016 with expected completion by 26 February 2016.
Principle Design Engineer
Group Manager Asset Management
Taipo Stream Realignment Design