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Special Council Agenda

 

 

 

2 September 2015

 

 

 

 

 

ALL INFORMATION AVAILABLE IN VARIOUS FORMATS ON REQUEST

 

 

 


CITY OF BUSSELTON

MEETING NOTICE AND AGENDA – 2 September 2015

 

 

 

TO:                  THE MAYOR AND COUNCILLORS

 

 

NOTICE is given that a meeting of the Special Council will be held in the the Council Chambers, Administration Building, Southern Drive, Busselton on Wednesday, 2 September 2015, commencing at 5.30pm.

 

Your attendance is respectfully requested.

 

 

 

Mike Archer

 

CHIEF EXECUTIVE OFFICER

 

31 August 2015


CITY OF BUSSELTON

Agenda FOR THE Special Council MEETING TO BE HELD ON 2 September 2015

TABLE OF CONTENTS

 

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

1....... Attendance, Apologies & Leave Of Absence. 4

Apologies. 4

Approved Leave of Absence. 4

2....... PUrpose Of Meeting.. 4

3....... Public Question Time. 4

4....... Disclosure Of Interests. 4

5....... Presentations By Parties With An Interest. 4

6....... Reports. 5

6.1          TENDER RECOMMENDATION - RFT09/15 BUSSELTON JETTY MARINE BERTHING FACILITY. 5

7....... Closure. 10

 


Special Council                                                                       4                                                             2 September 2015

 

1.               Attendance, Apologies & Leave Of Absence 

Apologies

 

Nil

Approved Leave of Absence

 

Nil

2.               PUrpose Of Meeting

To consider Tender RFT09/15 for the Busselton Jetty Marine Berthing Facility, the contract for which needs to be awared by 3 September, 2015.

3.               Public Question Time 

4.               Disclosure Of Interests

5.               Presentations By Parties With An Interest


Special Council                                                                       5                                                              2 September 2015

6.               Reports

6.1             TENDER RECOMMENDATION - RFT09/15 BUSSELTON JETTY MARINE BERTHING FACILITY

SUBJECT INDEX:

Busselton Jetty Marine Berthing Facility

STRATEGIC OBJECTIVE:

Infrastructure assets are well maintained and responsibly managed to provide for future generations.

BUSINESS UNIT:

Engineeering and Works Services

ACTIVITY UNIT:

Engineering and Facilities Services

REPORTING OFFICER:

Director, Engineering and Works Services - Oliver Darby

AUTHORISING OFFICER:

Chief Executive Officer - Mike Archer

VOTING REQUIREMENT:

Absolute Majority

ATTACHMENTS:

Attachment a   Confidential Tender Evaluation and Recommendation Report  

  

The attachment to this item is confidential in accordance with Section 5.23(2)(c) of the Local Government Act 1995, a contract entered into or that may be entered into by the Local Government.

 

PRÉCIS

 

The City of Busselton invited RFT 9/15 Busselton Jetty Marine Berthing Facility Construction and received 5 submissions. This report summarises the tender responses and makes recommendation to award the tender.  This report is presented for consideration at a Special Council meeting as the tender closed on 18 August, 2015. Five tenders were received and in order to meet the appropriate project delivery schedule a contract needs to be awarded by 3 September, 2015.

 

BACKGROUND

 

The objectives of this Request for Tender are to appoint a suitably qualified contractor for the construction of the Busselton Jetty Marine Berthing Facility located on the Busselton Jetty at the Busselton Foreshore for the City of Busselton.

 

This Request for Tender specified the requirements of the City and invited suitably qualified and experienced respondents to submit bids to enter into a Contract for the construction of the Busselton Jetty Marine Berthing Facility, in accordance with the detailed design and specification set out in the request for tender.

 

The requirements of for the new marine berthing facility include:

 

•             Demolish the existing platform (2A) at the Busselton Jetty (material to be transported to the Rendezvous waste facility)

•             Construct a new +/-_35m platform, including universal access ramp and stairs.

•             The new platform will required to be suitable for use as a marine berthing facility and includes berthing fenders.

•             The City will free issue to site the required piles and pile shoes.

 

The successful tenderer will be reporting to the Director of Engineering and Works Services.

 

The contract will be a construction contract only. Previously the City of Busselton engaged WML consultants to complete the detailed design of the marine berthing facility. WML will continue to be engaged to sign off on portions of the construction work as required to ensure the work has been completed in accordance with the detailed design.

 

The request for tender for the construction of the Busselton Jetty Marine Berthing facility was advertised from 18th July 2015 for a period of four weeks, closing on the 18th August2015.

 

The City received fifty five requests for the tender documents and received four tender submissions. A tender evaluation panel was formed to evaluate all tenders submissions and prior to the evaluation meeting and the tenders were assessed in accordance with the relevant WALGA guidelines and in the manner described in the Officer Comment section below.

 

A comprehensive summary of these responses and pricing schedules has been included in the confidential attachment.

 

STATUTORY ENVIRONMENT

 

Section 3.57 of Local Government Act 1995 requires “A local government to invite tenders before it enters into a contract of a prescribed kind under which another person is to supply goods and services”.

 

Part 4 (Tenders) of the Local Government (Functions and General) Regulations 1996 require that tenders be publicly invited for such contracts where the estimated cost of providing the total service exceeds $100,000.

 

Compliance with the Local Government Act 1995 section 3.57 is required in the issuing and tendering of contracts.

 

RELEVANT PLANS AND POLICIES

 

The City’s purchasing, tender selection criteria, occupational health and safety and engineering technical standards and specifications, were all relevant to this tender and have been adhered to in the process of requesting and evaluating tenders.

 

FINANCIAL IMPLICATIONS

 

The total budget for the construction of the Busselton Jetty Marine Berthing Facility is $1.2 million. The budget consists of a $600,000 grant from WA Tourism and $600,000 from the Busselton Jetty Reserve.

 

To date $77,846 has been spent on the detailed design and supply and delivery of timber piles (these will be free issued to the contractor onsite), leaving a balance of $1,122,154.

 

EWS submitted a tender price of $668,617.00.

 

In addition, EWS submitted an alternative price of $601,602 (excluding GST) based on a later practical completion date of 21 December 2015. City officers asked each of the other tenderers to clarify whether their submission would materially change, if the practical completion date was 21st December 2015 rather than 30 November 2015. None of the responses received materially altered the ranking of the tenderers according to the scoring process described above.

 

The tender contract value will be $601,602 (excl GST) which is under budget. This is based on accepting the later practical completion deadline.

 

There will, however, be additional costs for WML consulting engineers and other supervisory works which will be required to be spent against this budget. This figure cannot be specified at this point but is expected to be in the region of $20,000 (excl GST).

 

The above figures do not include any potential variations. Due to the nature of these works there is the potential of an unforseen element which may require a variation to be paid to the contractor.

 

It is expected that any variation will be paid from the existing budget, authorised by the superintendent. 

 

Any unspent funds will be returned to the Jetty Reserve or to the grant funding body.

 

STRATEGIC COMMUNITY OBJECTIVES

 

The Busselton Jetty Marine Berthing Facility are consistent with following the City of Busselton’s strategic Objectives:

 

2.        Well Planned, Vibrant and Active Places;

 

2.3 Infrastructure Assets that are well maintained and responsibly managed to provide for future generations.

 

RISK ASSESSMENT

 

n assessment of the potential implications of implementing the Officer’s recommendation has been undertaken using the City’s risk assessment framework. The assessment sought to identify ‘downside’ risks only rather than ‘upside’ risks and where the risk, following implementation of controls has been identified as medium or greater are included below.

 

Risk

Controls

Consequence

Likelihood

Risk Level

Delay of materials from a third party. Timber for construction is supplied by a third party. Order delivery is dependant on their work load and placement of order. The worst impact would be a delay in materials delaying the completion of the project

Early award to the contractor.

High

Likely

Medium

The contractor fails to complete the berthing facility by the end of the contract period (subject to approved extensions of time) or the financial year

Weekly project meetings to monitor progress. Liquidated damages to be imposed for delays that cause loss to the City

Medium

Likely

Medium

The contractor causes delays or losses to other contractors working on the Busselton Foreshore project

Monitor contractors’ compliance with requirement to work/coordinate with other contractors

Medium

Likely

Medium

The costs associated with the construction is over the Council endorsed budget due to variations to the contractors scope of work

Tender contract terms & conditions; Weekly project meetings to monitor progress and any variations to scope

Medium

Likely

Medium

The contractor fails to construct the berthing facility in accordance with the design

Designer will be contracted  to provide sign off on construction            in

accordance with design and any hold points

High

Unlikely

Medium

 

CONSULTATION

 

Nil.

 

OFFICER COMMENT

 

The tender assessment was carried out by a tender review panel consisting of Oliver Darby, Director of Engineering and Works Services, Shawn Lombard, Building Facilities Coordinator and Mark Tyler, Consultant. Tender submissions were received from the following organisations:

 

•             Advanteering Civil Engineers

•             SMC Marine

•             Jetty and Marine Construction

•             EWS – Engineered Water Systems

•             TAMS

 

All tenders were found to comply with the terms and conditions and mandatory requirements of the RFT. Accordingly, each tender was scored according to the qualitative criteria endorsed by Council and included in the tender documentation as follows:

 

Criteria Weighting

 

(a)          Relevant Experience                                    10%

(b)          Key Personnel Skills and Experience         10%

(c)           Tenderer’s Resources                                  10%

(d)          Demonstrated Understanding                   10%

 

The net tendered price was scored using the ‘Average Based Scoring Method’ recommended by WALGA in the ‘Local Government Purchasing and Tender Guide’.

 

The panel members individually assessed the compliance and qualitative criteria and then applied an average to provide a final rating. The scores were then added together to indicate the rankings for 

each tender. The Confidential report attached provides further detail in relation to the relative merits of each of the individual tenderers. Following this evaluation, Officer’s recommend that EWS should be the preferred tenderer for the reasons outlined in the confidential report.

 

The original practical completion deadline of 30th November was determined to coincide with the beginning of the December 2015 summer period, when the foreshore area starts to get busy and the arrival of the second cruise ship on 07 January 2016. However the alternative offer with a later practical completion date of 21st December, offers a financial benefit of over $60,000. In considering the additional time it would take to construct,  the impact was not considered to be high as the December school holidays will only commence on the 18th December 2015 and the cruise ship due in at this time will be able to use the swim jetty (as per the previous cruise ship arrivals).

 

CONCLUSION

 

The tender evaluation panel have completed their assessment in line with the City’s tender process and Officers now recommend the Council award RFT 9/15 Busselton Foreshore Jetty Marine Berthing Facility Construction to EWS.

 

OPTIONS

 

The Council may consider the following alternate options:

 

1.            The Council choose not to accept the Officers Recommendation and award the Tender to an alternate tenderer. In the view of the Officer’s this could result in a Tender being awarded to a tenderer that has not presented the “best value” for money offer.

 

2.            The Council may choose not to accept the Officers Recommendation and not award the tender. This would mean going back out to tender, resulting in significant delays to the contract award and potential significant delays to the Busselton Jetty Marine Berthing Facility Project.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

The award of the tender can be made immediately after the Council has endorsed the Officer’s recommendation. Subject to finalisation of a number of minor contractual points, the successful tenderer will receive formal written notification within seven (1) days of the resolution. All unsuccessful tender applicants will also be notified at this time.

 

 

OFFICER RECOMMENDATION

ABSOLUTE MAJORITY DECISION OF COUNCIL REQUIRED

 

That the Council:

 

1.     Award tender RFT 09/15 – Busselton Jetty Marine Berthing Facility to EWS – Engineered Water Systems for the total contract sum of $601,602.00 (exclusive GST).

 

2.     Delegate authority to the CEO to award variations in excess of 10% of the contract value, but limited so as not to exceed the overall project budget.

 

  


Special Council                                                                       10                                                           2 September 2015

7.               Closure