Agenda of Works and Infrastructure Committee

N-logotype-black-wide Works and Infrastructure Committee

14 February 2019

Page No.

1. Apologies

1.1 An apology has been received from Councillor Matheson

2. Confirmation of Order of Business

3. Interests

3.1 Updates to the Interests Register

3.2 Identify any conflicts of interest in the agenda

4. Public Forum

4.1 Clare Scott - the Hampden Street-Waimea Road intersection

5. Confirmation of Minutes

5.1 15 November 2018 7 - 20

Document number M3895

Recommendation

That the Works and Infrastructure Committee

Confirms the minutes of the meeting of the Works and Infrastructure Committee, held on 15 November 2018, as a true and correct record.

6. Chairperson's Report

7. Part of Bronte Street - proposed road stopping 21 - 51

Document number R9906

Recommendation

That the Works and Infrastructure Committee

Receives the report Part of Bronte Street - proposed road stopping (R9906) and its attachments (A2120376 and A2120315); and

Delegates to the Chief Executive the authority to take the necessary steps to proceed with the process to stop the formed legal road (comprising approximately 46m²) as shown in red on diagram A2120376 in accordance with Section 342 and Schedule 10 of the Local Government Act 1974 (subject to Council approval to sell the land).

Recommendation to Council

That the Council

Approves the sale of the land as shown on diagram A2120376 of Report R9906 to the adjacent landowners for the total of $10,000 plus GST (if any) subject to completion of the process under Schedule 10 of the Local Government Act 1974; and

Agrees that the applicants pay all costs, including legal, valuation and survey, associated with the road stopping and sales process.

8. Works and Infrastructure Committee - Quarterly Report to 31 December 2018 52 - 112

Document number R9962

Recommendation

That the Works and Infrastructure Committee

Receives the report Works and Infrastructure Committee - Quarterly Report to 31 December 2018 (R9962) and its attachments (A2127467 and A2127465); and

Notes the reallocation of budget within the Stormwater Activity as detailed in Report 9962 for the Parere Street Stormwater Upgrade.

Public Excluded Business

9. Exclusion of the Public

Recommendation

That the Works and Infrastructure Committee

Excludes the public from the following parts of the proceedings of this meeting.

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

Item	General subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Particular interests protected (where applicable)
1	Works and Infrastructure Committee Meeting - Public Excluded Minutes - 15 November 2018	Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7.	The withholding of the information is necessary: · Section 7(2)(g) To maintain legal professional privilege · Section 7(2)(h) To enable the local authority to carry out, without prejudice or disadvantage, commercial activities · Section 7(2)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)
2	Request for Leave of Absence	Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7	The withholding of the information is necessary: · Section 7(2)(a) To protect the privacy of natural persons, including that of a deceased person

Item

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Particular interests protected (where applicable)

Works and Infrastructure Committee Meeting - Public Excluded Minutes - 15 November 2018

Section 48(1)(a)

The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7.

The withholding of the information is necessary:

· Section 7(2)(g)

To maintain legal professional privilege

· Section 7(2)(h)

To enable the local authority to carry out, without prejudice or disadvantage, commercial activities

· Section 7(2)(i)

To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

Request for Leave of Absence

Section 48(1)(a)

The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7

The withholding of the information is necessary:

· Section 7(2)(a)

To protect the privacy of natural persons, including that of a deceased person

Note:

· Lunch will be provided. (delete as appropriate)

· Youth Councillors Holly Goulter and Cassie Hagan will be in attendance at this meeting. (delete as appropriate)

Works and Infrastructure Committee Minutes - 15 November 2018

Minutes of a meeting of the Works and Infrastructure Committee

Held in the Council Chamber, Civic House, 110 Trafalgar Street, Nelson

On Thursday 15 November 2018, commencing at 1.04p.m.

Present: Chairperson S Walker (Chairperson), Her Worship the Mayor R Reese, Councillors P Matheson, M Lawrey, G Noonan and T Skinner

In Attendance: Councillors I Barker and B McGurk, Chief Executive (P Dougherty), Group Manager Infrastructure (A Louverdis), Group Manager Corporate Services (N Harrison) and Governance Adviser (E Stephenson)

Leave of Absence: Councillor Acland

Apology: Councillor Rutledge

1. Apologies

Resolved WI/2018/063

That the Works and Infrastructure Committee

Receives and accepts an apology from Councillor Rutledge.

Noonan/Matheson Carried

2. Confirmation of Order of Business

Item 12 of the agenda – Nelson Regional Sewerage Business Unit – Business Plan 2018-19 and Bell Island Resource Consent was considered after Item 5 - Confirmation of Minutes.

3. Public Forum

Attendance: Councillor Skinner entered the meeting at 1.05p.m.

Phil Osborne, representing residents of Seafield Terrace, spoke about the process for the residents as a community. He thanked Council for its engagement with the residents and for noting the residents’ points of interest. He noted that the residents group did not realise that a 3D model would cost $2000 (paragraph 4.1.6 of the report) and clarified that the group did not think that this was a good use of resources.

Mr Osborne thanked Council for the installation of the safety barrier.

Mr Osborne answered questions regarding his perception of problems in the way forward. He noted that this was an interim solution because of climate change and highlighted the need for a hard edge to the road to prevent erosion. He said that it would be nice if the revetment could go to the playground and suggested perhaps there could be a compromise as there was a cost involved. He noted that theirs was a diverse community with a variety of views, but that generally the community was happy and that it had been a constructive process.

4. Interests

There were no updates to the Interests Register, and no interests with items on the agenda were declared.

5. Confirmation of Minutes

5.1 28 September 2018

Document number M3788, agenda pages 11 - 19 refer.

Resolved WI/2018/064

That the Works and Infrastructure Committee

Confirms the minutes of the meeting of the Works and Infrastructure Committee, held on 28 September 2018, as a true and correct record.

Matheson/Noonan Carried

6. Nelson Regional Sewerage Business Unit - Business Plan 2018-19 and Bell Island Resource Consent (Agenda Item 12)

Document number R9759, agenda pages 100 - 143 refer.

Group Manager Infrastructure, Alec Louverdis, introduced Tasman District Councillor Kit Maling, Chair of the Nelson Regional Sewerage Business Unit (NRSBU) and Acting General Manager, Don Clifford and provided background information.

Councillor Maling and Mr Clifford noted there was a strong alignment with Nelson City Council’s Long Term Plan and environmental vision and aspirations and that the unit had $6.5M in its budget over the next few years for upgrades and that the NRSBU was engaging closely with iwi.

Councillor Mailing and Mr Clifford answered questions regarding renewable energy, reducing discharge and intended use of the old water treatment plant membranes currently being replaced at the Nelson Water Treatment Plant to clean inlet screens at Bell Island.

Resolved WI/2018/065

That the Works and Infrastructure Committee

Receives the report Nelson Regional Sewerage Business Unit - Business Plan 2018-19 and Bell Island Resource Consent (R9759) and its attachments (A2086495, A2086498 and A2086501); and

Endorses the changes made to the Nelson Regional Sewerage Business Unit Business Plan 2018/19 (A2086495) to better reflect Nelson City Council’s Long Term Plan and their environmental aspirations; and

Receives the Nelson Regional Sewerage Business Unit’s Acting General Manager’s advice (A2086498) that there is very good alignment between the Bell Island resource consent and Nelson City Council’s environmental aspirations and that the Bell Island resource consent application should proceed.

Skinner/Lawrey Carried

Recommendation to Council WI/2018/066

That the Council

Approves the Nelson Sewerage Business Unit Business Plan 2018-19 (A2086495) noting that this now better reflects Nelson City Council’s Long Term Plan and Nelson City Council’s environmental aspirations.

Skinner/Lawrey Carried

7. Chairperson's Report

There was no Chairperson’s report.

8. Quarterly Report to Works and Infrastructure Committee 1 July - 30 September 2018

Document number R9623, agenda pages 20 - 74 refer.

Group Manager Infrastructure, Alec Louverdis, introduced the report and noted the accompanying recommendations. The committee congratulated Engineering Officer, Sristy Malla for winning best presentation and the people’s award at the Young Water Professionals Workshop at the Water NZ Conference and Expo 2018.

Mr Louverdis and Senior Accountant, Tracey Hughes answered questions regarding:

· financial results and expenditure for public transport

· financial processes

· Saltwater Creek

· street lighting

· the need for good communication and visible signage for projects.

Attendance: Councillor Matheson left the meeting from 1.38p.m. until 1.40p.m.

Attendance: Councillor Lawrey left the meeting from 1.39p.m. until 1.41p.m.

Resolved WI/2018/067

That the Works and Infrastructure Committee

Receives the report Quarterly Report to Works and Infrastructure Committee 1 July - 30 September 2018 (R9623) and its attachments (A2078013 and A2087315); and

Approves a contribution of up to $150,000 towards the upgrading of the water main in Suffolk Road funded from a projected underspend in the water activity replacement of the Roding Water Supply Resource Consent as part of the Summerset development to future proof the City’s water supply noting that this work will be undertaken by the developer; and

Notes the re-prioritisation of the sewer renewals for the current 2018/19 financial year as detailed in Report 9623 based on the urgent work to rectify sewerage wet weather overflows in the Vanguard Street catchment; and

Notes the re-prioritisation of the water renewals for the current 2018/19 financial year as detailed in Report 9623, based on the urgent work to rectify ongoing water breakages in the Central Business District (Hardy Street) and the opportunity to undertake work in Annesbrook Drive as part of the Tahunanui cycleway project.

Noonan/Skinner Carried

9. Transport Asset Management Plan 2018-2028

Document number R9058, agenda pages 75 - 78 refer.

Senior Asset Engineer – Transport and Roading, Paul Devereux, presented the report.

Resolved WI/2018/068

That the Works and Infrastructure Committee

Receives the report Transport Asset Management Plan 2018-2028 and its attachment (A1755799).

Matheson/Skinner Carried

Recommendation to Council WI/2018/069

That the Council

Adopts the Transport Asset Management Plan 2018-28 (A1755799), amended to reflect the approved Long Term Plan 2018 – 2028.

Matheson/Skinner Carried

10. Recycling - Update on international markets

Document number R9485, agenda pages 79 - 87 refer.

Group Manager Infrastructure, Alec Louverdis, presented the report and answered questions regarding contractual arrangements with Nelmac, fees and financial reserves, recycling exported from New Zealand, the continuing drop in commodity prices and landfill costs and landfill lifespan.

Discussion took place on the options and Her Worship the Mayor noted that the focus should be to reduce waste in the first instance, and that New Zealand should take responsibility for its own waste and not send it overseas. The role the government has to play in ensuring systems around verification of where recyclables end up was highlighted, along with the need for investigation. Mayor Reese undertook to have a discussion regarding what local government was doing as a sector prior to the Council meeting which would consider this recommendation from the committee.

Further discussion took place regarding the split between the reserves and the increase in landfill fees. It was noted that renewal of the recycling contract was not on the current priority list but would most likely be reviewed in approximately 24 months’ time.

Resolved WI/2018/070

That the Works and Infrastructure Committee

Receives the report Recycling - Update on international markets (R9485); and

Agrees to continue with recycling for the 2019/20 financial year in Nelson recognising the strong commitment from Nelsonians.

Noonan/Her Worship the Mayor Carried

Recommendation to Council WI/2018/071

That the Council

Agrees to consider through the 2019/20 Annual Plan the additional costs resulting from the ongoing low global commodity prices, for the 2019/20 financial year at an estimated cost of between $132,000 and $192,000 funded 50% from the current reserves in the Solid Waste account and 50% through increased landfill charges.

Noonan/Her Worship the Mayor Carried

11. Tahunanui Modellers Pond Trial

Document number R9692, agenda pages 88 - 92 refer.

Group Manager Infrastructure, Alec Louverdis, provided background information and Manager Utilities, David Light, answered questions regarding the trial’s progress.

During questions, Her Worship the Mayor R Reese raised a Point of Order and requested that Councillor Lawrey withdraw a comment suggesting that officers were being evasive and apologise. The Chairperson upheld the Point of Order and the comment was withdrawn and an apology made by Councillor Lawrey.

It was noted that Council was waiting for the results of tests to confirm the results.

Resolved WI/2018/072

That the Works and Infrastructure Committee

Receives the report Tahunanui Modellers Pond Trial (R9692) and its attachment (A2078208); and

Refers a decision on the ongoing dosing trial at Tahunanui Modellers Pond to the Council meeting of 13 December 2018.

Matheson/Noonan Carried

12. Hanging Baskets Activity Review

Document number R9584, agenda pages 93 - 99 refer.

Manager Parks and Facilities, Rosie Bartlett, provided background information and answered questions. Discussion took place regarding:

· equal treatment for businesses

· business’s permission for baskets to be placed

· infrastructure costs for irrigation

· making the offer to retailers in Stoke and Tahuna

· staff time involved in administration/operating and maintenance costs.

Resolved WI/2018/073

That the Works and Infrastructure Committee

Receives the report Hanging Baskets Activity Review (R9584).

Her Worship the Mayor/Lawrey Carried

Recommendation to Council WI/2018/074

That the Council

Approves foregoing $16,000 budgeted income in the Annual Plan 2019/20 from business contribution towards hanging baskets in order to maximise the number of baskets that are hung within the City; and

Approves that the hanging baskets be funded from the Parking and CBD Enhancement cost centre, street parking meters maintenance account (5510 2010 0415).

Her Worship the Mayor/Lawrey Carried

The meeting was adjourned at 3.07p.m. and reconvened at 3.19p.m.

13. Waimea Road - Proposed Amendment to the Speed Limits Bylaw

Document number R9765, agenda pages 144 - 168 refer.

Senior Asset Engineer – Transport and Roading, Paul Devereux, answered questions regarding:

· the city-wide speed limit review date

· current average speeds

· the consented traffic lights design

· clarification of the area in question

· road and cycleway safety.

It was noted that the extension of the consultation period through January and February should be reinforced and communicated to potential submitters and that a reduction in speed limit was not a fait accompli, a decision on the matter would be made following consultation, submissions and deliberations.

Resolved WI/2018/075

That the Works and Infrastructure Committee

Receives the report Waimea Road - Proposed Amendment to the Speed Limits Bylaw (R9765) and its attachments (A2069574, A2075290, A2069647, and A2079928).

Lawrey/Matheson Carried

Recommendation to Council WI/2018/076

That the Council

Agrees a bylaw to set a permanent speed limit is the most appropriate way of addressing safety issues on Waimea Road between Market Road and the Beatson Road roundabout; and

Agrees the proposed amendments to the Speed Limits Bylaw 2011 (210) are the most appropriate form of bylaw and do not give rise to any implications under the New Zealand Bill of Rights Act 1990; and

Agrees a summary of the Statement of Proposal Amendment to the Speed Limits Bylaw 2011 (210) is not required; and

Adopts the Statement of Proposal (A2069647 of Report 9765) relating to the lowering of the speed limit along Waimea Road from 240m south of Market Road (Market Road) through to 200m north of the Beatson Road roundabout (Beatson Road roundabout); and

Approves commencement of the Special Consultative Procedure (A2069647 of Report R9765), with the consultation period to run from 14 December 2018 to 15 February 2019; and

Approves the consultation plan (A2079928 of Report 9765) and agrees:

(a) the plan includes sufficient steps to ensure the Statement of Proposal will be reasonably accessible to the public and will be publicised in a manner appropriate to its purpose and significance; and

(b) the plan will result in the Statement of Proposal being as widely publicised as is reasonably practicable as a basis for consultation.

Lawrey/Matheson Carried

The meeting was adjourned at 3.42p.m. and reconvened at 3.43p.m.

14. Seafield Terrace remediation - supplementary information

Document number R9760, agenda pages 169 - 203 refer.

Group Manager, Infrastructure, Alec Louverdis, introduced the item and thanked Mr Phil Osborne for his public forum presentation, noting that it had been a pleasure working with residents. Mr Louverdis advised the meeting that Mark Foley and Tom Shand of Tonkin and Taylor were present to answer any technical questions and then summarised the options and identified the relevant areas on a map. Questions were answered regarding road width, whether there would be any negative outcomes if the revetment protection was extended and the lifespan of interim solutions.

Attendance: Councillor Noonan left the meeting from 3.57p.m. until 4.01p.m.

Further discussion took place regarding the options, extension of the revetment to the playground to address erosion, inundation and suitable materials.

It was agreed to consider the public excluded Seafield Terrace Remediation: Legal Considerations report before making a decision on this matter.

15. Exclusion of the Public

Kerry Anderson of DLA Piper (via audiolink) and Mark Foley and Tom Shand of Tonkin & Taylor, were in attendance for Item 1 of the Public Excluded agenda to answer questions and, accordingly, the following resolution was required to be passed:

Resolved WI/2018/077

That the Works and Infrastructure Committee

Confirms, in accordance with sections 48(5) and 48(6) of the Local Government Official Information and Meetings Act 1987, that Kerry Anderson of DLA Piper and Mark Foley and Tom Shand of Tonkin & Taylor remain after the public has been excluded, for Item 1 of the Public Excluded agenda (Seafield Terrace Remediation: Legal Considerations), as they have knowledge relating to the Seafield Terrace remediation that will assist the meeting.

Noonan/Skinner Carried

Resolved WI/2018/078

That the Works and Infrastructure Committee

Excludes the public from the following parts of the proceedings of this meeting.

Noonan/Skinner Carried

Item	General subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Particular interests protected (where applicable)
1	Seafield Terrace Remediation: Legal Considerations Releasing the advice exposes Council to legal risk not outweighed by any public interest in sharing the opinion	Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7	The withholding of the information is necessary: · Section 7(2)(g) To maintain legal professional privilege

Item

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Particular interests protected (where applicable)

Seafield Terrace Remediation: Legal Considerations

Releasing the advice exposes Council to legal risk not outweighed by any public interest in sharing the opinion

Section 48(1)(a)

The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7

The withholding of the information is necessary:

· Section 7(2)(g)

To maintain legal professional privilege

The meeting went into public excluded session at 4.09p.m. and resumed in public session at 4.38p.m.

The officer’s recommendation was moved by Councillor Walker, seconded by Councillor Noonan.

That the Works and Infrastructure Committee

Receives the report Seafield Terrace remediation - supplementary information (R9760) and its attachments (A2088021 and A2086667).

Recommendation to Council

That the Council

Approves the Enhanced “Scaled-up do minimum” option as the preferred remedial solution as detailed in Attachment 2 (A2038309) of report R9621 (A2088021) for Seafield Terrace, noting a preliminary revised estimated capital cost of $1.25 Million with an expected 51% NZTA Funding Assistance Rate; and

Notes that design will commence in the current 2018/19 financial year with request for funding for consents and construction ($1.25 Million) to be made through the 2019/20 Annual Plan; and

Approves unbudgeted expense of $70,000 in the 2018/19 financial year to cover costs incurred to date and to commence detailed design of the preferred option.

Walker/Noonan

Discussion took place on increasing the funding to extend the revetment further to the playground, as discussed in paragraph 4.2.1 of the agenda report, and an amendment was moved by Her Worship the Mayor, seconded by Councillor Matheson, to increase the estimated capital cost from $1.25 million, to $1.4 million.

That the Council

Approves the Enhanced “Scaled-up do minimum” option as the preferred remedial solution as detailed in Attachment 2 (A2038309) of report R9621 (A2088021) for Seafield Terrace, noting a preliminary revised estimated capital cost of $1.4 Million with an expected 51% NZTA Funding Assistance Rate; and

Notes that design will commence in the current 2018/19 financial year with request for funding for consents and construction ($1.4 Million) to be made through the 2019/20 Annual Plan; and

Approves unbudgeted expense of $70,000 in the 2018/19 financial year to cover costs incurred to date and to commence detailed design of the preferred option.

Reese/Matheson Carried

The amendment was carried and became the substantive motion. The substantive motion was put.

Resolved WI/2018/079

That the Works and Infrastructure Committee

Receives the report Seafield Terrace remediation - supplementary information (R9760) and its attachments (A2088021 and A2086667).

Walker/Noonan Carried

Recommendation to Council WI/2018/080

That the Council

Approves the Enhanced “Scaled-up do minimum” option as the preferred remedial solution as detailed in Attachment 2 (A2038309) of report R9621 (A2088021) for Seafield Terrace, noting a preliminary revised estimated capital cost of $1.4 Million with an expected 51% NZTA Funding Assistance Rate; and

Notes that design will commence in the current 2018/19 financial year with request for funding for consents and construction ($1.4 Million) to be made through the 2019/20 Annual Plan; and

Approves unbudgeted expense of $70,000 in the 2018/19 financial year to cover costs incurred to date and to commence detailed design of the preferred option.

Walker/Noonan Carried

Exclusion of the Public
Resolved WI/2018/081 *That the Works and Infrastructure Committee* *Excludes the public from the following parts of the proceedings of this meeting.* The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows: Noonan/Matheson Carried
	Item	General subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Particular interests protected (where applicable)
	2	Graham Street and part of Rogers Street - proposed road stopping	Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7	The withholding of the information is necessary: · Section 7(2)(h) To enable the local authority to carry out, without prejudice or disadvantage, commercial activities
	3	Watermain Upgrading Vanguard Street	Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7	The withholding of the information is necessary: · Section 7(2)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

The meeting went into public excluded session at 4.50p.m. and resumed in public session at 4.59p.m.

There being no further business the meeting ended at 4.59p.m.

Confirmed as a correct record of proceedings:

Chairperson Date

Item 7: Part of Bronte Street - proposed road stopping

Works and Infrastructure Committee

14 February 2019

REPORT R9906

Part of Bronte Street - proposed road stopping

1. Purpose of Report

1.1 To consider the stopping of a portion of Bronte Street as legal road and a subsequent sale of the land to the adjacent landowners.

2. Summary

2.1 The adjacent landowners approached Council on 24 October 2018 with a proposal to purchase a 46m² portion of road reserve in front of their property on 6 Bronte Street. An acquisition would allow the owners to consolidate their retaining wall, deck and gardens frontage into their existing title area.

2.2 This report recommends the stopping and sale of 46m² of Bronte Street to the adjoining landowners.

3. Recommendation

That the Works and Infrastructure Committee

Receives the report Part of Bronte Street - proposed road stopping (R9906) and its attachments (A2120376 and A2120315); and

Recommendation to Council

That the Council

Agrees that the applicants pay all costs, including legal, valuation and survey, associated with the road stopping and sales process.

4. Background

4.1 The adjoining owners approached Council in November 2018 with a proposal to stop and purchase a 46m² section of formed legal road on Bronte Street at the road frontage of their property at 6 Bronte Street. The applicants propose to use the land for consolidating into their existing section (Attachment 1 A2120376).

4.2 This proposal to purchase the land arose out of the negotiation for a Licence to Occupy. The applicants considered options to enter into a licence to occupy or an encumbrance with Council. Neither of these options was considered suitable to them as, in their opinion, they had no control or ownership over the land. Their preference was to acquire this portion and consolidate it into their existing title.

4.3 The 46m² area proposed for purchase will allow the applicants to manage the ownership of the retaining wall, deck and gardens.

4.4 This proposal applies to Bronte Street west and is near the Nelson College for Girls Gymnasium at 10-18 Bronte Street. It does not impact on the existing traffic flows to this area or Bronte Street east.

5. Discussion

Applicant’s Proposal

5.1 A Road Stopping Application has been provided and the initial administration fee has been paid.

5.2 All costs associated with the legal road stopping which may include valuation costs, legal costs, survey costs, Land Information New Zealand costs, public notification costs, hearing costs and/or consultants, Environment Court hearing costs and administration costs (if required) in excess of the deposit, will be paid by the applicants in the order of $10,000.

5.3 The applicants have agreed the terms for valuation of the land. The valuation for the road portion was commissioned by Council and resulted in a valuation of $10,000 plus GST (if any) as at 7 December 2018 (Attachment 2 A2120315).

5.4 This purchase is estimated to cost a total of approximately $20,000 (land valuation and associated costs). A requirement of the road stopping is for the applicants to undertake the work associated for surveying the portion of proposed land, public notification, LINZ and legal costs for the title adjustment.

5.5 The applicants are aware of these costs and the possibility that the process may not be finalised and have signed a binding Agreement to reimburse Council for any costs incurred.

Infrastructure

5.6 The 46m² portion has no water, wastewater, storm water, power or telephone services within it.

5.7 Council officers advise this portion can be stopped without affecting future upgrades.

5.7.1 There will not be any notable impact on the surrounding transport environment;

5.7.2 No particular safety issues have been identified with the proposed road closure and on that basis, it is a supported project from a traffic engineering perspective.

Legislation

5.8 Road Stopping is undertaken in accordance with the requirements of Section 342 and Schedule 10 of the Local Government Act 1974.

6. Options

Option 1: Stop and sell the portion of road to the adjoining landowners.
Advantages	· Sale proceeds of $10,000 would be generated.
Risks and Disadvantages	· Residents could object to the road stopping and sale. · Costs of Environment Court process could exceed $10k and be borne by Council.
Option 2: Reject the offer – Status quo
Advantages	· Continued general public access and therefore no changes.
Risks and Disadvantages	· Constrains the owner’s intentions to manage and maintain the site. · Continued operational costs to the Council to maintain monitor and manage the occupation of legal road agreement. · Forgoes the opportunity to gain sale proceeds.

7. Conclusion

7.1 There is no compelling reason for the Council to retain ownership of this section of road. The applicants would take on full responsibility for the land once the portion of road was stopped.

7.2 Accepting the applicant’s proposal would provide sale proceeds for the Council.

7.3 Stopping and selling 46m² portion of Bronte Street proposal is recommended.

8. Next Steps

8.1 If approved by the Committee the next steps would be:

8.1.1 Assess the written responses from neighbouring owners.

8.1.2 Carry out public notification of the intent to stop the road;

8.1.3 Receive objections (if any) and prepare an objection report for Committee’s consideration. Arrange for Committee to hear objections.

8.1.4 Attend the Environment Court hearing (if required);

8.1.5 If approved, road portion is stopped, arrange gazettal and title with LINZ.

8.1.6 Complete transaction including recovery of costs.

Author: Susan Mathieson, Senior Property Officer

Attachments

Attachment 1: A2120376 - Map 46m² Part of Bronte Street Road Stopping ⇩

Attachment 2: A2120315 - Valuation Assessment for 46m² Part of Bronte Street Road Stopping ⇩

2120376

Important considerations for decision making

1. Fit with Purpose of Local Government

The recommendation in this report aligns with the need to meet the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost-effective for households and businesses.

2. Consistency with Community Outcomes and Council Policy

Our infrastructure is efficient, cost effective and meets current and future needs

· We have good quality, sustainable, integrated, affordable and effective public transport, infrastructure, and energy-use and transport networks.

Our region is supported by an innovative and sustainable economy.

· We all participate in the regional economy and it meets people’s needs.

This proposal supports Goal Seven – our economy thrives and contributes

to a vibrant and sustainable Nelson.

3. Risk

The proposal carries low risk as there is no alteration to Bronte Road access or traffic flow. There is some risk that the requirement for the public notification under section 342 of the Local Government Act 1974 will result in unforeseen objections.

4. Financial impact

The proposal will provide income of $10,000 + GST.

5. Degree of significance and level of engagement

This matter is of low significance to most members of the public as there will be little effect on the roading level of service and low community impact. The Local Government Act 1974 Road Stopping process requires public notification and allows the community to have a say in the decision.

6. Inclusion of Māori in the decision making process

No engagement with Māori has been undertaken in preparing this report.

7. Delegations

The Works and Infrastructure Committee has the following delegations to consider

Areas of Responsibility:

· Roading network, including associated structures, bridges and retaining walls, walkways, footpaths and road reserve, landscaping and ancillary services and facilities, street lighting and traffic management control

· All land and buildings relating to the areas of responsibility of the committee, including the acquisition, lease, sale or disposal, maintenance, management or development of any land or buildings

Powers to Decide:

· Power to hear, consider and decide all applications for road stopping

Powers to Recommend:

· Property transactions for any land or buildings relating to the areas of responsibility of the committee, including the acquisition, lease, sale or disposal, maintenance, management or development of any land or buildings.

Item 8: Works and Infrastructure Committee - Quarterly Report to 31 December 2018

Works and Infrastructure Committee

14 February 2019

REPORT R9962

Works and Infrastructure Committee - Quarterly Report to 31 December 2018

1. Purpose of Report

1.1 To inform the Committee of the financial and non-financial results for the second quarter for the activities under its delegated authority.

1.2 To highlight any material variations.

2. Recommendation

That the Works and Infrastructure Committee

Receives the report Works and Infrastructure Committee - Quarterly Report to 31 December 2018 (R9962) and its attachments (A2127467 and A2127465); and

Notes the reallocation of budget within the Stormwater Activity as detailed in Report 9962 for the Parere Street Stormwater Upgrade.

3. Background

3.1 Quarterly reports are being provided to each Committee on the performance and delivery of projects and activities within their areas of responsibility.

3.2 The financial reporting focuses on the year to date (YTD) performance (1 July to 31 December 2018) compared with the YTD approved capital and operating budgets.

3.3 Unless otherwise indicated, all information is against approved operating budget, which is the 2018/19 Long Term Plan budget plus any carry forwards, plus or minus any other approved additions or changes.

3.4 More detailed project status reports are included (attachments) for the 43 projects that fall under the Works and Infrastructure Committee delegation. These have been selected if their budget is at least $250,000 for 2018/19, are multi-year projects with a total budget over $1 million, or have been assessed to be of particular interest to the Committee.

4. Key developments for the three months to 31 December 2018

4.1 Four new pumps have been installed at Neale Park pump station and are now ready for commissioning in January 2019. The station will be fully functional from the commissioning date. The contract work which includes the tidy up of the site is expected to be completed in March 2019.

4.2 A concept design has been agreed for the installation of an activated carbon scrubber unit at Corder Park pump station to provide supplementary treatment of breakthrough odours. Installation is expected to be in March 2019.

4.3 The Modellers Pond trial has been extended for five months.

4.4 The Water Treatment Plant membranes are now fully installed and functioning as expected. The old membranes have been delivered to the Nelson Regional Sewerage Business unit (NRSBU) who are looking to incorporate these as a final filter and utilise this water for cleaning purposes on site.

4.5 Tenders have been awarded for sewer renewals in the city centre, Saltwater Creek Bridge replacement, and Annesbrook Drive infrastructure upgrade (Tahunanui Pathways Phase 1 and Annesbrook 150mm diameter water main).

4.6 Bolt Road and Kakenga Road Watermain tender has closed, two tenders have been received, and officers look to award in January.

4.7 The total operating capital budget for infrastructure is approximately $28million. The projected forecast for end of year spend is approximately $25million.

5. Financial results

5.1 Financial information is shown in charts overleaf, with an explanation following.

Operating revenue

Subsidised Roading is greater than budget by $187,000 – the income received via New Zealand Transport Agency (NZTA) subsidy is ahead of budget by $187,000, reflecting YTD subsidised roading expenditure being ahead of budget by $379,000.

Parking and CBD Enhancement is less than budget by $50,000 – the off street meter and permit fees income is behind YTD budget, however income is tracking in a similar fashion to prior year YTD figures.

Public Transport is less than budget by $346,000 – this variance reflects the delay in Nelson City Council going to a gross Nbus contract. The contract converts to gross when electronic ticketing goes live, which is now anticipated to occur in the next financial year. Public transport expenses are also behind budget by $292,000.

Waste Minimisation is less than budget by $33,000 – internal levy income is behind budget, however as total expenditure is on budget, this reflects a budget phasing difference.

Transfer Station is less than Budget by $43,000 –Transfer Station fees income is ahead of budget $34,000 due to fees collected being higher than anticipated. Income transferred from the Joint Landfill to balance this account is behind budget year to date by $81,000 as expenditure is also behind budget ($57,000).

Wastewater is less than budget by $104,000 – NRSBU net income is behind budget by $278,000, which is as a result of increased management, maintenance and biosolid costs. Commercial Trade Waste income is ahead of budget by $174,000, due to a large invoice being included in the current financial year which related to the prior year, and an increase in volumes over budget.

Water Supply is greater than budget by $535,000 – income is ahead of budget as a result of higher metered water volumes for both commercial and residential users.

Operating expenditure

Subsidised Roading is greater than budget by $379,000 – staff overheads are ahead of budget by $125,000. This is partly due to timesheet coding which is largely offset by savings in unsubsidised roading. Maintenance expenditure is ahead of budget by $369,000, including sealed pavement maintenance, data collection costs, drainage maintenance, due to timing of expenditure. This is not unusual and officers will adjust work programmes accordingly so the overall year end budget is on target. Bridge maintenance is behind budget by $171,000 due to timing of the Collingwood Street Bridge repaint.

Unsubsidised Roading is less than budget by $22,000 – allocation of staff overheads is behind budget by $89,000 due to transport staff working on subsidised activity. Preliminary costs for Saxton Area Growth Projects is behind budget by $49,000, as this project has not yet started pending identification of work required. Seat maintenance is behind budget by $24,000 due to contractor capacity constraints. Depreciation is ahead of budget by $162,000 due to 2018 revaluation of assets.

Parking Regulation is less than budget by $65,000 – variance includes reduced EIL contract price and towing and salvage costs behind budget. Parking regulation income is also behind budget by $30,000.

Parking and CBD Enhancement is greater than budget by $80,000 – variance includes rent for Montgomery Square now paid through to the end of the year ($68,000) and staff time spent on Upper Trafalgar Street closure and other inner city development projects. Parking survey budget appears behind by $24,000 however, surveys were carried out as programmed in December and are yet to be invoiced.

Public Transport is less than budget by $292,000 – reflecting the delay in Nelson City Council going to a gross Nbus contract. The contract converts to gross when electronic ticketing goes live, which is anticipated in the next financial year. Public Transport income is behind budget by $346,000.

Transfer Station is less than budget by $57,000 – costs are behind budget in staff overheads, depreciation charges due to re-categorisation of assets to the joint landfill, and plant and equipment maintenance which is scheduled for later in the financial year.

Landfill is less than budget by $62,000 – variance includes internal local disposal levies which reflect the behind budget costs of the other solid waste cost centres, in particular funding of the Transfer Station. There are additional costs of $13,000 related to the Atawhai Closed Landfill, including the cost of surveying private properties.

Wastewater is greater than budget by $38,000 – allocation of staff overheads are behind budget by $33,000. Maintenance costs and insurance costs are both ahead of budget ($57,000 and $50,000 respectively) due to budget phasing not matching timing of invoices. NWWTP Desludging is behind budget $82,000 due to the project being completed ahead of schedule. Depreciation is ahead of budget $55,000 due to the 2018 revaluation of assets.

Stormwater is greater than budget by $117,000 – expenditure is ahead of budget mainly in the areas of stormwater reticulation, building act compliance regarding the Maitai dam, insurance, and depreciation costs relating to the 2018 revaluation of assets.

Flood Protection is less than Budget by $93,000 – variance is caused by seasonality of open channel reactive maintenance to be completed later in the year, and depreciation expense both under budget YTD.

Capital expenditure

All capital projects with a budget greater than $250K in this financial year have a project sheet in Attachment 1 of this report.

The total capital budget for infrastructure is approximately $28million. The projected forecast for end of year spend is approximately $25million. The key projects that are presently projecting an underspend/saving include but not limited to:

· Saltwater Creek Bridge Upgrade – Construction is to begin shortly, but there is a risk of it continuing into next financial year due to a delay in awarding the tender. That delay was due to awaiting approval of additional funding late last year. It is expected that the total budget of approximately $1,200,000, will be underspent by $400,000 in this financial year.

· New footpaths – Complex design, public engagement and the retendering of the road maintenance contract could limit potential spend. It is expected that the total budget of $700,000 will be underspent by $200,000 in this financial year.

· Westbrook Convergence Bridge Deck Replacement – Project to be tendered shortly. There is a risk of construction continuing into next financial year. Due to this delay, it is now expected that the total budget of approximately $448,000, will be underspent by $300,000 in this financial year.

· Rutherford Stage 1 Girls College Detention – This project has a projected spend of $50,000 versus a budget of $290,000 ($240,000 underspend). This underspend is due to resourcing issues, resulting in higher priority projects being addressed first.

· Bus Ticketing - This project has a projected spend of $120,000 versus a budget of $368,000 ($248,000 underspend). This underspend is due to the timeline of the project being extended as a result of initial testing.

· The Water Membranes project has been completed with a $230,000 saving in this financial year.

· Neale Park Pump Station Upgrade – Construction is nearing completion, and there is now an anticipated saving in the order of approximately $230,000 in this financial year.

· Residential Water Meters – The purchase price of the meters has come in lower than original estimate. This has resulted in an anticipated saving of $470,000 in this financial year.

· Street light conversion to LED- the purchase price of the luminaires resulted in close to a $700,000 underspend, NZTA have agreed that this funding can be utilised to upgrade a number of the decorative lanterns in subdivisions along with an upgrade to lighting on Waimea Road. The overall projected savings are now $300,000 in this financial year.

Noting the potential underspends as detailed above, Officers are reviewing alternative methods to maximise capital expenditure this financial year. Any upcoming programme changes will be reported in the third quarterly report and may include:

· Tendering and beginning the construction of Tui Glen Road watermain renewal this financial year (noting construction would continue into 19/20 financial year). This project is currently scheduled to be tendered this financial year and constructed in 19/20 financial year.

· Beginning the design of watermain renewals this financial year that are currently scheduled to be designed in 19/20 financial year.

At the close of December, capital spend to date was $9.7million vs operating budget profile of $12.5million. The key projects that contribute to the slower spend include:

· Neale Park Pump Station – delivery dates have been changed with the project now due to be completed in March 2019, with approximately $1.5million still to be spent.

· Annesbrook, Bolt, Kakenga water main renewals are behind original forecast spend, however these projects are still on track for delivery this financial year.

6. Commentary on capital projects

6.1 Project progress is analysed based on three factors; quality, time and budget. From the consideration of these three factors the project is summarised as being on track (green), some issues/risks (orange), or major issues/risks (red). Projects that are within 5% of their budget are considered to be on track in regards to the budget factor.

6.2 Hardy Street Watermain Renewal was tendered in November and no tenders were received. Officers have been following up with local contracting companies to understand why they did not respond to the tender and whether they have capacity to undertake this work. Further discussions will be undertaken in January to find a solution.

6.3 The proposed Nayland Galway stormwater upgrade is planned for construction this year. The project is about to be tendered, however the estimated cost for this project has risen to $506,000 based on the updated engineers estimate. The increase in estimated cost is due to an expected inflated construction market, design changes, increase in risk contingency (due to risk of coal tar) and increase in consultant involvement. Given the issues, the construction of this project will continue into 19/20 financial year. The current budget is $206,000 and is expected to be spent this financial year. The $300,000 shortfall to continue construction has been included as part of the 19/20 Annual Plan.

6.4 The tender for the Parere Street stormwater upgrade has closed and one tender has been received. The estimated cost of this project has increased from $316,000 to $400,000. The reason for the increase is the inflated construction market. Additional funds will be shifted from existing budgets within the stormwater activity as summarised in the table below.

Project	Original Funding Proposal [2018/19 Final Inflated LTP]	Revised Funding Proposal [2018/19 Forecast]	Variance	Comment
Parere St stormwater upgrade	$316,000	$400,000	-$84,000
Piping ditches (Funding Line)	$54,000	$0	+$54,000	Low risk change. Funding line and no specific projects identified in 18/19
PVT/Public drains (Funding Line)	$58,131	$28,131	+30,000	Low risk change. Funding line and no specific projects identified in 18/19
Total	$428,131	$428,131	$0

6.5 These project updates are appended in Attachment 1.

7. Commentary on operational projects

7.1 There are detailed status reports for three operational projects included in the attachments. These projects, have been selected for quarterly reporting as they have been assessed to be of particular interest to the Committee.

7.2 These operational projects are assessed on the same factors – quality, time and budget and noted as being on track, with some issues/risks or with major issues/risks. These project updates are appended in Attachment 1.

8. Other notable achievements or issues

8.1 Award from Road Safety Education

8.1.1 Nelson City Council’s support of the RYDA (Rotary Young Driver Awareness) programme over almost 10 years has been recognised with an award from RSE (Road Safety Education), a non-profit organisation that operates road safety programmes in Australia and New Zealand.

8.1.2 Works and Infrastructure Committee Chair Stuart Walker and Manager Transport and Solid Waste Marg Parfitt accepted the award on Council’s behalf from Maria Lovelock from RSE.

8.1.3 RYDA specifically targets 16-18 year old students who are approaching that crucial time in their lives where they start to drive independently or are travelling as passengers of novice drivers

8.1.4 The RYDA programme runs every year and hundreds of local high school students go through a series of practical and powerful workshops that challenge students to change the way they think about road safety and lay the foundation for safe road use throughout their lives. RYDA will be held in Nelson again in March 2019 and Councillors are welcome to attend and observe.

8.2 Road Maintenance Contract retender.

8.2.1 Downer is the current roading maintenance contractor. They have had the contract since 1 July 2017. The contract was let for an initial 3 years plus a possible 2 plus 2 year extension.

8.2.2 At their request, and due to financial losses they could not sustain, Downer have been released from the contract and it will end on 30 June 2019. Forcing Downer to continue with delivery of this contract, at previously agreed contract rates, risked poor service delivery and a breakdown of established relationships, and dissatisfied road users.

8.2.3 An agreement has been reached that will see Downer continue to carry out work for the council until the end of June 2019 and officers have gained assurance that the work will be to the highest standard. Council will be re-tendering the contract again in January with the aim of having a new contract in place by 1 July 2019.

8.3 Road Closures

8.3.1 Council Officers in the Infrastructure group processed some large road closures in this quarter related to the summer closure of Upper Trafalgar Street and the Bay Dreams music festival. Closures required a great deal of engagement and planning and positive feedback has been received.

8.4 Waimea Road pedestrian refuge and improved bus shelters

8.4.1 A new pedestrian refuge was constructed on time and below budget in December 2018. Work included relocation of a bus stop and erection of a new bus shelter. Additional bus shelters were also constructed on Main Road Stoke and Annesbrook Drive.

8.5 Nelson North Wastewater Treatment Plant

8.5.1 Odour issues occurred at the Nelson North Wastewater Treatment Plant (NWWTP) over a period of approximately two weeks following the Labour Day weekend on 23 October 2018. The cause of the odour issues was due to the sudden collapse of the algae within the oxidation ponds.

8.5.2 During the spring season, a specific species of algae becomes dominant (Algae is a key part of the biological treatment within the oxidation pond as it releases oxygen, enabling the aerobic bacteria within the pond to treat the wastewater). With this species of algae becoming dominant, other species of algae could no longer compete and died off. This is common at that time of year, both at NWWTP and in other locations around NZ, but the extent of the problem can vary.

8.5.3 This isn’t usually an issue, however during this quarter, a parasite (that is always found with this species of algae) had rapidly spread throughout the oxidation pond and killed this dominant species of algae. This resulted in the ponds turning anaerobic and odours being released. The rapid spread of this parasite was primarily due to the sudden drop in temperature following a period of hot weather over labour weekend.

8.5.4 The steps taken to restore the pond health involved:

· Reducing the load on the pond by diverting flow into the clarifier.

· Algae was re-introduced by diverting flow from the wetlands back into the ponds. Algae was also carted from Bell Island WWTP for a short period of time.

· Sodium nitrate was added to assist with increasing oxygen levels.

8.5.5 The oxidation ponds have returned to moderate/good health, and their performance is being closely monitored.

8.5.6 Due to this odour issue, one performance measure was not achieved.

8.6 Recruitment

8.6.1 Staff shortages as reported in the last quarter continue, a number of appointments have been made, however there have been a further five resignations during the last quarter.

· Within Capital Projects four out of seven vacancies have been filled (one includes an internal promotion).

· Within Utilities and Transportation the four vacancies previously identified were filled (including one transfer of staff) however, four further resignations have been received resulting in two vacancies in each area.

8.7 Market Conditions

8.7.1 Market conditions indicate that our local contractors are all busy, with some identifying that they have confirmed forward work through until 2020. This is resulting in delays to construction of Council projects. Council Officers are meeting with contractors to look at potential ways forward, and will also approach the contractor’s federation to seek help.

9. Key Performance Measures

9.1 As part of the development of the Long Term Plan 2018-28 (LTP) Council approved levels of service, performance measures and targets for each activity. There are 35 performance measures that fall under the Works and Infrastructure Committee. The final results for each performance measure will be reported on through the Annual Report. A number of performance measures cannot be reported on until the end of the financial year, accordingly the scale to report on the performance measures is as follows:

· On track

· Not on track

· Achieved

· Not achieved

· Not measured yet

9.2 Attachment 2 lists all performance measures within the Works and Infrastructure Committee delegations, their status and commentary for the quarter.

Quarterly Review of Performance Measures

9.3 Twenty-nine of the 35 performance measures were on target as at the end of the second quarter.

9.4 The results of four performance measures are not due until the end of the year.

9.5 Due to the odour issues at the NWWTP, one performance measure was not achieved.

10. Conclusion

10.1 The review of performance for the second quarter for the Works and Infrastructure Committee is included in this report, with project reports and performance measure updates attached.

Author: Lois Plum, Manager Capital Projects

Attachments

Attachment 1: A2127465 - W&I KPI Report Quarter 2 ⇩

Attachment 2: A2127467 - W&I Project Status Reports Quarter 2 ⇩