Meeting of the Tenders Committee

 

 

Date:                 Wednesday 15 February 2017

Time:                8.30am

Venue:

Chief Executive's Office

Hawke's Bay Regional Council

159 Dalton Street

NAPIER

 

 

 

Agenda

 

Item       Subject                                                                                                                  Page

 

1.         Welcome/Notices/Apologies 

2.         Conflict of Interest Declarations  

3.         Confirmation of Minutes of the Tenders Committee held on 30 November 2016

Decision Items

4.         Exemption from Council's Contracts and Tenders Policy for Survey Services            3

5.         Tukituki Cycle Bridge                                                                                                    7  

 

 


HAWKE’S BAY REGIONAL COUNCIL

Tenders Committee

Wednesday 15 February 2017

SUBJECT: Exemption from Council's Contracts and Tenders Policy for Survey Services

 

Reason for Report

1.      HBRC outsources the provision of survey services under a 3 year contract with the potential to renew that contract for a further two years subject to the Surveyors performance, responsiveness and quality.

2.      The Tenders Committee has as part of its terms of reference the ability to consider and decide on exemptions to HBRC’s Contracts and Tender policy.  Staff propose that the survey contract is re-negotiated directly with the current Survey supplier, however this requires an exemption from Council’s procurement policy as the value of the contract is in excess of $50,000.

3.      This paper seeks agreement from the Tenders Committee for staff to directly renegotiate the provision of survey services for a three year period with a right of renewal for a further 2 years subject to ongoing good performance by the surveyor.

Contract for Survey Services

4.      The current contract for the provision of surveying services, expires on 30 June 2017.

5.      The bulk of the surveying required by HBRC is for the ongoing programme of surveying established river and coastal cross sections.  This work involves bulk data collection, a knowledge of the location of the cross section benchmark network, and as many of the benchmarks are on private property, how to access them.  It also requires the supplier to have competence with water craft as part of the work involves surveying the beds of rivers.

6.      A 3-year contract (1 July 2012 – 30 June 2015) for the provision of survey services to HBRC was entered into between Council and Zorn Surveying Ltd, on 27 April 2012. The contract included provision for an extension of a further 2 years after completion of the initial period. In February 2015, an extension of two years was granted by the Chief Executive under his delegated authority.

7.      The contact guarantees a minimum amount of surveying annually. The amount of surveying undertaken annually has reduced significantly over the years with efficiencies being achieved as a result of ongoing technological improvements, the pressure of a commercial environment, the benefit of long established local knowledge and as a result of Council now having LiDAR maps over a large part of the region.

8.      In the 2012-2015 contract a minimum of 1800 man hours per year of survey input were guaranteed to the contractor. It is proposed that the new contract will contain the same general conditions as the previous contract and be based on a guarantee of 1300 hours per year with an estimated annual cost of approximately $110,000 per annum.

9.      HBRC’s procurement policy that requires that a full public tendering process is used for purchases over $50,000.  The Terms of Reference for the Tenders Committee enables that Committee to consider and decide on exemptions to this policy.

10.    Zorn Surveying Ltd continues to provide Council with cost effective services for surveying. Mr David Zorn, the Senior Director of the Company, was for many years a staff member of HBRC prior to deciding to establish a company providing survey services resulting from a decision of Council to out-source the work. As a result, Mr Zorn has an excellent knowledge of HBRC requirements, and of local knowledge associated with the location of survey benchmarks and river cross sections. His staff are also available for emergency management work and oil spill response.

11.    Because of this extensive knowledge of HBRC systems, built up over considerable years, of the location of benchmarks and how best to access them even in remote locations, staff input to the management of this contractor is minimal. Staff do not believe they would obtain better value services from any other service provider.

12.    Consequently, staff seek agreement from the Tenders Committee to negotiate directly with Zorn Surveying Ltd, for the provision of surveying services to HBRC for a period of 3 years from 1 July 2017 to 30 June 2020, with provision for extension of the contract for a further 2 years subject to ongoing satisfactory performance and the satisfaction of the Chief Executive of Council that cost effective services are being obtained.

13.    Legal surveys form a small part of HBRC survey requirements and are able to be commissioned from other surveyors, however staff are not aware of any other Hawke’s Bay based survey company geared up to collect river and beach cross section data with the detailed local knowledge of the HBRC bench mark network.

Decision Making Process

14.    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:

14.1.   The decision does not significantly alter the service provision or affect a strategic asset, and provision is made for all of the services and works set out in this agenda item within Council’s Long Term Plan.

14.2.   The use of the special consultative procedure is not prescribed by legislation.

14.3.   The decision does not fall within the definition of Council’s policy on significance.

14.4.   The options available to Council are to contract in the services using a different approach than recommended in this paper, or to undertake the services using in-house resources.

14.5.   Persons who may be affected by decisions made on this agenda item have the opportunity to comment to Council through each annual plan and LTP consultation process.

14.6.   The decision is not inconsistent with an existing policy or plan.

14.7.   Given the nature and significance of the issue to be considered and decided, and 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 the Committee 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.      Authorises the Chief Executive to negotiate directly and, if able, enter into a contract with Zorn Surveying Ltd, for the provision of survey services to HBRC from 1 July 2017 until 30 June 2020 with an option, subject to satisfactory performance and the cost effectiveness of the services provided, to extend the contract to 30 June 2022.

 

Authored by:

Mike Adye

Group Manager
Asset Management

Graeme Hansen

Group Manager
Water Initiatives

 


Approved by:

Andrew Newman

Chief Executive

 

 

Attachment/s

There are no attachments for this report.  


HAWKE’S BAY REGIONAL COUNCIL

Tenders Committee

Wednesday 15 February 2017

Subject: Tukituki Cycle Bridge

 

Reason for Report

1.      At the meeting on 30 November 2016, Council agreed to be the “owner” of a proposed cycle and walkway bridge across the Tukituki River between the ends of Tapairu and Mt Herbert roads immediately downstream from Waipukurau. The bridge is to be funded by the Rotary Rivers Pathway Trust.

2.      The Trust has arranged for a bridge design and build company, Abseil Access Ltd, to provide a concept design for the structure and a cost estimate for its construction.

3.      The Trust wishes to utilise this company for the detailed design and construction of the bridge and has requested that HBRC acts as the Client for the design and build contracts. The estimated cost of design and build contract is $200,000.

4.      HBRC’s procurement policy requires that a full public tendering process be undertaken for purchases over $50,000, while the Terms of Reference for the Tenders Committee enables that Committee to consider and decide on exemptions to this policy.

5.      This paper seeks agreement from the Tenders Committee to delegate authority to the HBRC Chief Executive to enter into a contract with Abseil Access Ltd, subject to being satisfied with the terms and conditions of that contract and written agreement from the Trust that it will meet the costs of the project.

Financial and Resource Implications

6.      Since Council agreement to be the “bridge owner” in November 2016, staff have been working with the Trust:

6.1.      Reviewing the cost estimates for the project;

6.2.      Identifying a site for the bridge in consultation with the local hapu at Mataweka Marae;

6.3.      Initiating the design of the bridge and providing assistance to the designer, including a site meeting;

6.4.      Completing a resource consent application for the project.

7.      The Trust has sought advice on a suitable company with the capability and experience to design and construct the bridge, and is satisfied that Abseil Access has the necessary skills, experience and track record to deliver a cost effective project.

8.      HBRC engineering staff will have input into the final design to ensure the lifetime costs of the bridge are optimised on behalf of the Owner and to be satisfied that the foundation design is suitable given the proximity of bridge piers to the river.

Decision Making Process

9.      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:

9.1.      The decision does not significantly alter the service provision or affect a strategic asset, and as the cost of the project is being met by the Rotary Rivers Pathway Trust there is no impact on Council’s balance sheet.

9.2.      The use of the special consultative procedure is not prescribed by legislation.

9.3.      The decision does not fall within the definition of Council’s policy on significance.

9.4.      The options available to Council are to work with the Trust to tender the project, or to negotiate directly with the proposed company or another.  Staff are unaware of any Hawke’s Bay Company with the necessary experience and expertise to cost effectively complete this project.

9.5.      Staff are unaware of any persons who may be affected by this decision.

9.6.      The decision is not inconsistent with an existing policy or plan.

9.7.      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.      Authorises the Chief Executive to negotiate directly and, if able, enter into a contract with Abseil Access Ltd, for the design and construction of the proposed cycle bridge across the Tukituki River in the vicinity of Waipukurau.

 

 

Authored by:

Mike Adye

Group Manager
Asset Management

Graeme Hansen

Group Manager
Water Initiatives

Approved by:

Andrew Newman

Chief Executive

 

 

Attachment/s

There are no attachments for this report.