HAWKE’S BAY REGIONAL COUNCIL
Tenders
Committee
Wednesday 21 September 2016
Subject: Waitangi Estuary
Enhancement Civil Work Contract
Reason for Report
1. Tenders have
been sought for Waitangi Reserve Enhancement Contract No. AM-16-027. The
tender documents require tenderers to include a range of information regarding
their methodology, experience and expertise. Tenders with the lowest
price conforming to those requirements will be the preferred tenderer.
2. The contract is
for the civil works part of the enhancement plan, and includes
2.1.1. Entrance
road formation
2.1.2. Carpark
construction
2.1.3. Celestial
compass construction
3. The lowest
conforming tender price is in excess of staff financial delegations and
therefore approval is being sought from the Tenders Committee to award the
contract.
Tenders
4. Tenders were
advertised in the Hawke’s Bay Today on 20 and 24 August 2016. Eleven
contractors collected tender documents and four tenders were received by the
closing date 12pm Friday 9 September.
5. Tenders
conforming to the requirements of the tender documents with a range of
$453,652.07 to $533,111.72 were received from:
5.1. Higgins HB
Ltd
5.2. Downers NZ
Ltd
5.3. Fulton Hogan
Ltd
5.4. One
additional tender received was deemed to be noncomplying by the assessment
panel.
6. The
engineer’s estimate was $420,123.00.
7. The tender
evaluation was completed by the Group Manager Asset Management, Manager Open
Spaces, Asset Engineer, and the consulting engineer who assisted in the
preparation of the tender documents.
8. The following
information required by the tender document was not provided with the non complying
tender.
8.1. Relevant
Experience
8.1.1. Relevant
environmental management experience.
8.1.2. Sediment
control or earthworks experience.
8.1.3. The process
the company uses to deal with risk.
8.2. Relevant
Skills
8.2.1. Names of
key personnel.
8.2.2. The
percentage of time and over what duration key personnel will be involved in the
contract work.
8.2.3. CV’s
for key positions.
8.3. Methodology
8.3.1. Organisational
structure
8.3.2. Construction
programme.
8.3.3. Environmental
management necessary to comply with resource consent conditions.
8.3.4. Identification
of potential significant risks.
9. Fulton Hogan
Ltd submitted the lowest price conforming tender. Their tender price of
$453,652.07 is the lowest received where all required information was included
with the submitted tender.
Background
10. At their
meeting on 16 December 2015 Council agreed in principal to commit $311,000 in
the 2016-17 financial year toward the Waitangi Estuary Enhancement project from
the Regional Open Spaces Reserves Borrowing facility, subject to funding being
sourced from other donors in accordance with the project funding strategy, and
deferral of other open space enhancement projects including $220,000 for the
northern walkway and associated works at Pekapeka from 2017-18.
11. The table below outlines the project funding strategy presented at
the December 2015 Environment and Services Committee meeting.
|
Waitangi
Estuary Enhancement Construction Estimate
|
Funding
|
Suggested
Funding Sources
|
|
#
|
Item
|
Cost
|
Funding
confirmed
|
Funding
required
|
TMAMVT
|
HBRC
|
NZTA
|
OTHER
|
|
1
|
Preliminary and General
|
$104,000.00
|
|
$104,000.00
|
|
$104,000.00
|
|
|
|
2
|
Entrance road formation
|
$55,722.00
|
|
$55,722.00
|
|
$55,722.00
|
|
|
|
3
|
Carpark
|
$131,320.00
|
|
$131,320.00
|
|
$131,320.00
|
|
|
|
4
|
Celestial Compass platform
|
$101,756.00
|
|
$101,756.00
|
|
|
|
$101,756.00
|
|
5
|
Celestial Compass Pou Carvings
|
$309,600.00
|
$95,000.00
|
$214,600.00
|
$309,600.00
|
|
|
|
|
6
|
Wetland Construction
|
$32,000.00
|
$32,000.00
|
|
|
|
$32,000.00
|
|
|
7
|
Pathways
|
$78,320.00
|
|
$78,320.00
|
|
|
|
$78,320.00
|
|
8
|
Signage
|
$27,540.60
|
|
$27,540.60
|
|
|
|
$27,540.60
|
|
9
|
Plantings
|
$43,000.00
|
|
$43,000.00
|
|
|
|
$43,000.00
|
|
10
|
Colenso Memorial "Pou Whare"
|
$55,000.00
|
|
$55,000.00
|
|
|
|
$55,000.00
|
|
11
|
Fundraising, additional site plans, Opening
|
$20,000.00
|
|
$20,000.00
|
|
$20,000.00
|
|
|
|
|
TOTALS
|
$958,258.60
|
$127,000.00
|
$831,258.60
|
$309,600.00
|
$311,042.00
|
$32,000.00
|
$305,616.60
|
12. Following the December
meeting and through the preparation of grant applications the cost estimate
above was refined primarily through removing the Colenso memorial Pou element
as well as revising the estimate with increases to planting and signage
elements.
13. In February the 2016 the
project cost estimate was revised to $950,610.00, with this figure being used
for fund raising purposes.
14. As at 1 July 2016,
$913,760.43 of the $950,610.00 had been secured, with the remaining $36,849.57
being raised via the Te Matau a Maui Voyaging Trust to meet the cost of carving
of the Celestial Compass Pou.
Financial
Considerations
15. With detailed design and
tenders now to hand the estimated cost of the project is now $1,110,614.
16. The estimate increase
relates directly to the project elements that form the contract (not the
broader project) and is made up of:
16.1. Additional consultancy
costs for detailed design and geotechnical investigations being required to
prepare contract specifications. Initial consultancy requirement estimate was
$20,000. Consultancy actual $59,150 ($39,150 increase).
16.2. Increase in
engineer’s estimate resulting from additional design / specifications.
The initial estimate based on original contract specifications was $372,798.
The revised estimate including new contract specifications was $420,123
($47,325 increase)
16.3. Difference between the
lowest conforming tendered price and revised engineer’s estimate
($33,529)
16.4. Additional design and
contract work required to connect small pou when they are ready for
installation ($40,000)
17. This has resulted in an
overall project cost estimate increase from $950,610 to $1,110,614 ($160,004).
18. The work includes
significant improvements to the current access road into the Waitangi Estuary
area, and fencing. The current access road is in poor condition and will
require improvement in the near future if the enhancement project were not to
proceed. A fence to allow the area to be better managed from a public
access point of view is also required. The cost of these two items is
approximately $120,000.
19. Staff propose that the
additional cost is met as follows
19.1. The work associated with
the access road and fencing is met from the Heretaunga Plains Scheme –
Rivers budget. This budget (project 287), includes provision for capital
works of $450,000 in the 2016/17 financial year. The budget provision is for
purchase of land associated with the proposed Hawea Park ($300,000), associated
site works for the proposed park, and contractor input for the development of
detailed design for the level of service review of the Heretaunga Plains Rivers
stopbanks ($150,000). At this stage approx. $80,000 of costs are committed
associated with the relocation of power and communication services for Hawea
Park. Timing for the land purchase, and further physical works is
currently uncertain, and therefore the likely total expenditure against this
budget by 30 June 2017 is uncertain. Staff will review this project at
the time of reforecasting 2016/17 project budgets. However the Heretaunga
Plains Scheme – Rivers operational account held a credit balance of
$685,652 as at 1 July which adequately covers the potential over expenditure in
this project in the 2016/17 financial year.
19.2. The additional design
and contract work outlined under 16.4 above, will only be required as pou are
completed by the Voyager Trust. Staff propose that this expenditure be
accounted for as and when required, utilising open space operational budgets.
Decision Making
Process
20. Council
is required to make every decision in accordance with the requirements of the
Local Government Act 2002 (the Act). Staff have assessed the requirements
in relation to this item and have concluded:
20.1. The decision
does not significantly alter the service provision or affect a strategic asset.
20.2. The use of
the special consultative procedure is not prescribed by legislation.
20.3. The decision
does not fall within the definition of Council’s policy on significance.
20.4. There are no persons directly
affected by this decision
20.5. Options that
have been considered include identifying additional external funding
sources, and/or postponing the commencement of the work.
20.6. The decision
is not inconsistent with an existing policy or plan.
20.7. Given
the nature and significance of the issue to be considered and decided, and also
the persons likely to be affected by, or have an interest in the decisions
made, Council can exercise its discretion and make a decision without
consulting directly with the community or others having an interest in
the decision.
|
Recommendations
That the
Tenders Committee
1. Agrees that the decisions to be made are not significant under the
criteria contained in Council’s adopted Significance and Engagement
Policy, and that Council can exercise its discretion 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. Awards the Waitangi Reserve Enhancement Contract No. AM-16-027 to
the lowest price conforming tenderer, Fulton Hogan Ltd, for the price of
$453,652.07, noting that the cost of the project will be above the budget
provision, but the additional funding for the project will be sourced from
the Heretaunga Plain flood control Scheme – Rivers budget under project
287, and the additional design and contract work required to connect small
pou when they are ready for installation will be met from ongoing operational
budgets as and when required.
|
Authored by:
|
Steve Cave
Asset Manager Open Spaces
|
|
Approved by:
|
Mike Adye
Group Manager
Asset Management
|
|
Attachment/s
|
1
|
Waitangi
Reserve Enhancement - Fencing Plan
|
|
|
HAWKE’S BAY REGIONAL COUNCIL
Tenders
Committee
Wednesday 21 September 2016
Subject: Heretaunga Plains
Transient Groundwater Modelling Support and Heretaunga Plains Groundwater
Transport Model Development
Reason for Report
1. A MODFLOW groundwater model to inform
the TANK planning process is being developed in-house by HBRC Senior Resource
Modeller Pawel Rakowski, with support from Institute of
Geological and Nuclear Sciences (GNS Science).
To date, this support has involved:
1.1. Provision of advice on technical
matters and guidance to direct the model development
1.2. Completion of specific tasks
undertaken in parallel with Pawel’s activities
1.3. Progression of model development while
Pawel is on vacation during July 2016.
2. Timeframes for the planning process
dictate that model development must be completed by December 2016. The
completed model will then provide a tool for planners, stakeholders and
decision makers to evaluate, throughout 2017, the effects of water allocation
scenarios on groundwater and surface water resources.
3. Calibration of a transient MODFLOW
model, integrated with a SOURCE surface water model, is scheduled for
completion in October 2016. Another two major components of the project will
then require completion before the model development is concluded:
3.1. Groundwater flow predictions - set up, calibrate and run initial
scenarios
3.2. Contaminant transport predictions - set up, calibrate and run initial
scenarios
4. To achieve model completion by
December 2016 it is essential to outsource the latter of these two major
components. The project schedule requires a service provider to:
4.1. Assist with development of a
transient, integrated groundwater model; and
4.2. Independently undertake the
contaminant transport modelling, while the HBRC modeller is engaged exclusively
on groundwater flow predictions. Both of these parallel work streams are
scheduled for completion by December 2016.
5. HBRC has been in discussions with GNS
Science about options for delivery of work described in paragraphs 3 and 4
above.
6. It is proposed that GNS Science proceed with provision
of services to ensure the modelling is completed on time.
7. Two contracts have now been negotiated with
GNS Science and staff are requesting that the committee approves delegation for
the Chief Executive Officer to sign the contracts.
Proposal for provision of services -
parallelised completion of the groundwater modelling
8. Staff involved with the TANK modelling
consider that GNS Science is the optimum NZ organisation currently holding the
expertise and experience to undertake this work and provide robust and
defendable outcomes within the project timeframes. This assertion is based on:
8.1. GNS Science having highly skilled
personnel with outstanding experience in MODFLOW and PEST calibration
techniques
8.2. GNS science have proven capability and
experience migrating MODFLOW files and utilities to the Linux environment,
which is essential for utilising the NeSI supercomputer that is intended to be
used for developing the model within required timeframes
8.3. GNS Science have significant
hydrogeological knowledge of the Heretaunga Plains as a result of their
previous work in the area
8.4. As a consequence of the support
already provided to the TANK modelling, GNS Science personnel are intimately
familiar with the current version and requirements of the model
8.5. GNS Science has confirmed they have
capacity, resources and commitment to deliver the modelling outcomes in
collaboration with the HBRC modeler, within the prescribed timeframes.
9. Approval is requested to not
pursue a competitive tender process for this work given the matters listed
above.
Financial and Resource Implications
10. Along with confirming available
resources to undertake this work, GNS Science have agreed to prices of $160,994
and $70,669 for provision of these services. These amounts are within existing
budgets for services to support the Heretaunga groundwater modelling. No budget
increases are sought.
11. Anticipated adverse consequences of
undertaking a competitive tendering process and/or appointing another service
provider include:
11.1. Delays to the project schedule while the tendering process is
undertaken. There is no slack in the schedule for this. Furthermore, it
is unlikely that other service providers have all of the skills, resources and
capability that GNS Science offer to deliver the unique requirements of the
Heretaunga modelling project
11.2. Delays to the project schedule while an alternative service provider
liaises with HBRC and GNS Science to obtain and assemble the existing model and
supporting files
11.3. Delays to the project schedule while an alternative service provider
familiarises with the current model
12. The anticipated delays listed above are certain to result in failure
to deliver a model within the timeframe required to inform the TANK Group on
the effects of water allocation scenarios
Decision Making
Process
13. Council is required to make every decision in accordance with the
requirements of the Local Government Act 2002 (the Act). Staff have
assessed the requirements in relation to this item and have concluded:
13.1. The decision does not significantly alter the service provision or
affect a strategic asset.
13.2. The use of the special consultative procedure is not prescribed by
legislation.
13.3. The decision does not fall within the definition of Council’s
policy on significance.
13.4. There are no persons directly affected by this decision
13.5. Options that have been considered include Tendering the work
13.6. The decision is not inconsistent with an existing policy or plan.
13.7. Given the nature and significance of the issue to be considered and
decided, and also the persons likely to be affected by, or have an interest in
the decisions made, Council can exercise its discretion and make a decision
without consulting directly with the community or others having an interest in
the decision.
|
Recommendations
That the
Tenders Committee:
1. Agrees that the decisions to be made are not significant under the
criteria contained in Council’s adopted Significance and Engagement
Policy, and that Council 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. Notwithstanding the current policy of Council as set out in
section 2.1.4.2 of Council’s Policy Handbook, the Tenders Committee
delegates authority to the Chief Executive Officer to enter into a contract
with GNS Science for services as follows;
2.1. Support for transient model development and flow predictions - $160,994 (Ex GST)
2.2. Contaminant transport model development and predictions - $70,669
(Ex GST)
|
Authored by:
|
Dr Jeff Smith
Team Leader/Principal Scientist –
Hydrology/Hydrogeology
|
Dr Stephen
Swabey
Manager, Science
|
Approved by:
|
Iain Maxwell
Group Manager
Resource Management
|
|
Attachment/s
There are no
attachments for this report.
