Marlborough District Council Roading Assets - Activity Management Plan 2015 - 2018 SECTION 1 EXECUTIVE SUMMARY 1.10.7 Approach to delivering the work programme This Asset Management Plan is for the 3 year period from July 2015 to June 2018. The following major contracts are due to expire and be retendered; MR 11/160 Marlborough Street Lighting Maintenance on 1 July 2016, NOC 01 Marlborough Maintenance contract on 1 July 2018, Local Road Asset Management Agreement with NZTA for the Marlborough Roads Network Management Contract, with Council on 1 July 2015. Major term road maintenance contracts Marlborough Roads have adopted the Network Outcome Contract model nationally for the physical works contracts. This model will be used as modified with the Marlborough local roads inclusion. The NOC contract is operating successfully, meeting the intentions of the MDC client and are acknowledged as providing excellent value for money. Street lighting maintenance contracts It was proposed the current procurement method be on the basis of a negotiated 5 year extension to the current contract with Marlborough Lines. The reasons are: There has been competition for this contract but in reality the Marlborough market does not offer serious alternative bids, Marlborough Roads staff, Council and NZTA all receive excellent service and value from Marlborough Lines, and enjoy the benefits of joint investment and contribution from Marlborough Lines, with improvements to the reticulation in the form of undergrounding, as well as other advantages to the reticulation, There will be reduced costs to all parties as a result of not requiring the preparation, evaluation and tender costs etc, of contract documentation, The Council sees the advantages of a continuation of the very high level of service currently provided, as well as the community inputs by the company, The current contract rates are very competitive when compared to national rates, Some negotiation of the rates can be expected, Marlborough Lines owns and maintains a significant asset data base. This is managed by skilled and experienced personnel. It is considered another supplier may not have or be able to supply these services to the same level, having regard to the fact that Marlborough Lines has undertaken this for many years and their staff have an intimate knowledge of the network reticulation. There would be significant costs if NZTA and Council were required to establish and maintain their own databases, The interests of the Council client are significantly important as the contract total value is apportioned approximately 15% NZTA and 85% Marlborough District Council. Marlborough Lines is owned by a Trust. The Trust is owned by people within the Marlborough District who have an electrical connection The 2011 contract was negotiated directly with Marlborough Lines as a monopoly provider as allowed under the NZTA Procurement Manual. Other contracts – street lighting energy supply The Marlborough District Council is a significant purchaser of Energy including Street Lighting and has historically tendered supply contracts for energy. By way of explanation, the Council’s total energy bill is approximately $180,000/month or $2,000,000 per annum. The component of these charges for street light energy is approximately $200,000 per annum, being approximately 10% of the total supply contract. It is proposed the procurement strategy for energy supply will be a simple continuation of the current process. Other contracts – passenger transport The Marlborough District Council operates a subsidised passenger transport service around Blenheim on a 5 1/2 days per week basis. The current contract was let in 2012 for a term of three years, with two additional one year rights of renewal. The parties have agreed to exercise the first right of renewal period to February 2016. In the last tender round the incumbent contractor was the only tenderer and offered a range of additional services as invited through the tender process. Council opted to extend services to Saturday mornings for this contract term. It is intended to go back to the open market when the contract is up for renewal. Other contracts – specialist services & emergency works 30 September 2014 Page 161 of Section 1