Seftons 'gutted' after Rotorua Lakes Council opts for more expensive street light services option

David Sefton. Photo / Andrew Warner

A local electrical contractor is "gutted" after discovering the council awarded a contract to a more expensive out-of-town tender option.

However, Rotorua Lakes Council chief executive Geoff Williams says he is satisfied the tender process was "fair and robust".

David Sefton, who owns local company Sefton Electrical, says he recently tendered a 10-year maintenance and upgrade contract for the Rotorua street lighting network, and was unsuccessful.

He said the council had awarded the contract to Whangārei-based company McKay, which would cost $248,000 more than Sefton's tender.

Sefton said his tender was compliant with the tender documentation and technical requirements.

"[I want to] hopefully get the ratepayers of Rotorua to understand what is going on behind the scenes."

He said he'd offered employment contracts to five additional local staff subject to winning the contract, two of whom were redundant hospitality workers retrained for their roles.

Rotorua's Fenton St street lights. Photo / Felix Desmarais / LDR

"I also had ready to push 'go' on the procurement of two new utes from Rotorua Mazda, and the build of a traffic management truck from MBY Engineering, both local businesses which desperately need these deals in the current climate.

"Techlight, who is my preferred supplier is based in Rotorua, and supports the local economy. The directors of Techlight reside in Rotorua and return profits to the region."

Sefton had also intended to redeploy an existing staff member to the contract if it had been awarded, but because it had not, that person had been let go.

He'd also intended to purchase a second yard in Rotorua if he'd been awarded the contract which meant Seftons would be contributing near $20,000 in rates each year, he said.

"At this stage I have to fight for every dollar we earn, I have tendered this contract at absolute rock bottom, single digit margin to attempt to get some breathing space with a long-term contract bringing surety of revenue.

"I am rapidly losing my faith in the industry and wonder why I bother being in business.

"My grandfather, father and I have trained over 120 apprentices in Rotorua since 1961, and it leaves me wondering when will the city give back to Seftons?"

He said he believed McKay had a "better, glossier presentation".

"The council are pushing 'tatau tatau' and go local and they don't practise it themselves."

He said when he found out about the outcome of the tender he asked for a meeting with Rotorua mayor Steve Chadwick.

"It was absolutely impossible to get anywhere near her for a 'please explain' or to put across my side."

He was instead offered a meeting with the chief executive Geoff Williams and two other council employees.

"It basically became very obvious, very quickly, over our one and a half hour meeting, that none of them could see any wrongs had been done."

Chadwick and Williams were invited to reply to Sefton's comments.

A council spokeswoman said as Chadwick was not involved in the tender process she was "unable to comment".

Williams told the Rotorua Daily Post "multiple factors" were taken into consideration when assessing tenders.

"This was a fair and open tender process with clear criteria, against which tenders were evaluated.

"Our procurement process is based on best practice principles, which includes a weighting towards local services and suppliers."

Rotorua Lakes Council chief executive Geoff Williams. Photo / Andrew Warner

He said Sefton had received feedback and the council had "offered further guidance regarding tendering".

"[The] council is committed to supporting the local economy and local businesses.

"However, we also need to ensure the best possible outcomes and value for our ratepayers and wider community.

"While we understand Mr Sefton's disappointment, it is unfortunate he has chosen to attack the process and outcome of what was a rigorous procurement process."

Williams said tender evaluations was "not a function of the mayor" but an operational process carried out by an appropriately-skilled panel.

He confirmed he had met with Sefton to "hear his concerns, discuss the process and give feedback".

The council had also undertaken a tender review to "ensure the process had been fair and robust".

"I am satisfied that it was.

"Both Sefton Electrical and McKay, which has a Rotorua branch and employs locals, are existing council contractors.

"We genuinely value good working relationships with our contractors and an offer to Mr Sefton to provide further guidance and support still stands."

McKay Bay of Plenty regional manager Ross Rowe declined to comment on the matter.

In April, Chadwick stated in a council press release that supporting local businesses would be "crucial" to support the recovery of the Rotorua economy and the "future well-being and sustainability of our community".

"[The] council is committed to buying local services and products wherever possible through its procurement policy, by giving greater weighting to local providers of trades and services.

"We will also be doing whatever we can to support go/buy local campaigns to encourage residents to support our local businesses and keep our people in jobs."

In May, the council agreed to endorse pro-local procurement practices already taken by the council to "significantly" - according to a council officer's report - increase weighting applied to local contractors, as well as to develop policy in that vein.