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AGENDA

Ordinary meeting of the

 

Works and Infrastructure Committee

 

Thursday 23 May 2019

Commencing at 9.00a.m.

Council Chamber

Civic House

110 Trafalgar Street, Nelson

 

Pat Dougherty

Chief Executive

 

Membership: Councillor Stuart Walker (Chairperson), Her Worship the Mayor Rachel Reese, Councillors Luke Acland, Paul Matheson, Matt Lawrey, Gaile Noonan, Tim Skinner and Mike Rutledge (Deputy Chairperson)

Quorum: 4

 

Nelson City Council Disclaimer

Please note that the contents of these Council and Committee Agendas have yet to be considered by Council and officer recommendations may be altered or changed by the Council in the process of making the formal Council decision.


Guidelines for councillors attending the meeting, who are not members of the Committee, as set out in Standing Order 12.1:

·      All councillors, whether or not they are members of the Committee, may attend Committee meetings

·      At the discretion of the Chair, councillors who are not Committee members may speak, or ask questions about a matter.

·      Only Committee members may vote on any matter before the Committee

It is good practice for both Committee members and non-Committee members to declare any interests in items on the agenda.  They should withdraw from the room for discussion and voting on any of these items.

 


N-logotype-black-wideWorks and Infrastructure Committee

23 May 2019

 

 

Page No.

 

1.       Apologies

An apology for lateness has been received from Councillor Rutledge.

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

5.       Confirmation of Minutes

5.1       28 March 2019                                                                        9 - 14

Document number M4118

Recommendation

That the Works and Infrastructure Committee

1.     Confirms the minutes of the meeting of the Works and Infrastructure Committee, held on 28 March 2019, as a true and correct record.

5.2       28 March 2019                                                                      15 - 17

Document number M4125

Recommendation

That the Works and Infrastructure Committee

1.     Confirms the minutes of the meeting of the Works and Infrastructure Committee, held on 28 March 2019, to deliberate on the Waimea Road Speed Limit Review, as a true and correct record.

  

6.       Chairperson's Report  

7.       Nelson Regional Sewerage Business Unit 2019/20 Business Plan                             18 - 43

Document number R9841

Recommendation

That the Works and Infrastructure Committee

1.  Receives the report Nelson Regional Sewerage Business Unit 2019/20 Business Plan (R9841) and its attachment (A2165220).

 

 

Recommendation to Council

That the Council

1.  Approves the Nelson Regional Sewerage Business Unit 2019/20 Draft Business Plan (A2165220), noting that the increase in operational funding can be catered for in the 2019/20 financial year.

 

 

8.       Nelson Tasman Regional Landfill Business Unit 2019-20 Business Plan                             44 - 60

Document number R10069

Recommendation

That the Works and Infrastructure Committee

1.     Receives the report Nelson Tasman Regional Landfill Business Unit 2019-20 Business Plan (R10069) and its attachment (A2165219).

 

 

Recommendation to Council

That the Council

1.     Approves the Nelson Tasman Regional Landfill Business Unit 2019-2020 Business Plan (A2165219).

 

 

9.       Works and Infrastructure Committee Quarterly Report to 31 March 2019                        61 - 126

Document number R10101

Recommendation

That the Works and Infrastructure Committee

1.     Receives the report Works and Infrastructure Committee Quarterly Report to 31 March 2019 (R10101) and its attachments (A2182699 and A2182701).

 

 

10.     Infrastructure Fees and Charges 2019-2020 127 - 131

Document number R9920

Recommendation

That the Works and Infrastructure Committee

1.      Receives the report Infrastructure Fees and Charges 2019-2020 (R9920) and its Attachment (A2167740).

 

 

Recommendation to Council

That the Council

1.      Approves the proposed fees and charges as per Attachment (A2167740) of Report R9920, effective 1 July 2019.

 

 

11.     Parking Meter Renewal - Referral of powers 132 - 135

Document number R10175

Recommendation

That the Works and Infrastructure Committee

1.     Receives the report Parking Meter Renewal - Referral of powers (R10175); and

2.     Refers to Council all powers of the Works and Infrastructure Committee relating to the renewal of parking meters.

 

 

Recommendation to Council

That the Council

1.     Considers the matter of the renewal of parking meters.

 

 

12.     Wakatu Lane - Potential Road Stopping and Sale - Referral of Powers                      136 - 143

Document number R10187

Recommendation

That the Works and Infrastructure Committee

1.     Receives the report Wakatu Lane - Potential Road Stopping and Sale - Referral of Powers (R10187) and its attachments A2179994 and A2179989; and

2.     Refers to Council all powers of the Works and Infrastructure Committee relating to Potential Road Stopping and Sale of part of Wakatu Lane - referred to in Report R10152.

 

 

Recommendation to Council

That the Council

1.     Considers the matter of Potential Road Stopping and Sale of part of Wakatu Lane.

 

       

Public Excluded Business

13.     Exclusion of the Public

Recommendation

That the Works and Infrastructure Committee

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

2.       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

Wastney Terrace Stormwater Upgrade - Property Negotiations - Referral of Powers

 

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

·    Section 7(2)(g)

     To maintain legal professional privilege

·    Section 7(2)(i)

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

2

Nelson City Road Maintenance and Renewal Contract 2019-24 EC3948 Tender Approval

 

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)(b)(ii)

     To protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information

 


 

 Note:

·             (delete as appropriate)Lunch will be provided. (delete as appropriate)

·             Youth Councillors Hamish Smith and Ryan Martyn will be in attendance at this meeting. (delete as appropriate)

 

 

  


Works and Infrastructure Committee Minutes - 28 March 2019

 

 

Minutes of a meeting of the Works and Infrastructure Committee

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

On Thursday 28 March 2019, commencing at 9.02a.m.

 

Present:               Councillor S Walker (Chairperson), Councillors L Acland, P Matheson, M Lawrey, G Noonan, T Skinner and M Rutledge (Deputy Chairperson)

In Attendance:     Councillor Barker, Chief Executive (P Dougherty), Group Manager Infrastructure (A Louverdis), Governance Adviser (E Stephenson) and Youth Councillors (A Burton and H Smith)

 

Apologies :          Her Worship the Mayor R Reese

 

 

1.       Apologies

 

 

Resolved WI/2019/009

 

 

That the Works and Infrastructure Committee

1.     Accepts the apology from Her Worship the Mayor R Reese.

 

 

 

Noonan/Matheson                                                            Carried

 

2.       Confirmation of Order of Business

There was no change to the order of business.

3.       Interests

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

4.       Public Forum 

There was no public forum.

5.       Confirmation of Minutes

Attendance: Councillor Rutledge entered the meeting at 9.04a.m.

5.1       14 February 2019

Document number M4022, agenda pages 7 - 11 refer.

Resolved WI/2019/010

 

That the Works and Infrastructure Committee

1.     Confirms the minutes of the meeting of the Works and Infrastructure Committee, held on 14 February 2019, as a true and correct record.

Rutledge/Lawrey                                                                             Carried

  

Attendance: Councillor Skinner entered the meeting at 9.05a.m.

6.       Chairperson's Report   

 

            There was no Chairperson’s Report.

7.       Great Taste Trail - Hounsell Circle to Tahuna Beach Holiday Park

Document number R9897, agenda pages 12 - 24 refer.

Property Parks and Facilities Asset Manager, Andrew Petheram, answered questions regarding the loss of car parks, and confirmed that residents had been visited, that most of them had been spoken to and that there had been no significant objections to the proposal.

Discussion took place regarding the level of consultation with the Business Association and its preferences. It was noted that the proposal had not been before an Association meeting.

Mr Petheram answered questions regarding the compatibility of the proposal in the event of changes to Modellers Pond.

Attendance: Councillor Matheson left the meeting from 9.13a.m. until 9.17a.m.

Discussion took place on the options, car parking and traffic safety concerns. Clarification was provided that Option D was compatible with the Tahunanui Pathways Project and the need to get the project underway was highlighted. It was confirmed that the raised table intersection was a response to complaints of speeding on Beach Road, it was a best practice design to reduce speeds with its own approval process and would happen whichever Great Taste Trail option was used.

Attendance: Councillor Acland left the meeting at 9.43a.m.

Resolved WI/2019/011

 

That the Works and Infrastructure Committee

1.       Receives the report Great Taste Trail - Hounsell Circle to Tahuna Beach Holiday Park and its attachments (A2144222 and A2114137); and

2.       Approves the reconfiguration of road reserve space to accommodate reduced parking and the proposed Great Taste Trail from Hounsell Circle to Tahuna Beach Holiday Park generally as shown as Option D on Figure 2 Tahuna Beach Reserve Options.

 

Skinner/Noonan                                                                              Carried

 

 

8.       Nelson Regional Sewerage Business Unit Wastewater Asset Management Plan

Document number R9495, agenda pages 25 - 171 refer.

Group Manager Infrastructure, Alec Louverdis, noted that this was a  procedural item that reflected the decisions made by the Nelson Regional Sewerage Business Unit (NRSBU). Mr Louverdis advised that Mr Don Clifford was present to answer any questions.

Acting NRSBU Interim General Manager, Mr Clifford, confirmed that he was happy that the management plan delivered to the overall direction of vision and priorities relating to water quality and the environment in Nelson City Council’s Long Term Plan 2018-2028. He highlighted the work being undertaken in this area and the high aspirations of the NRSBU.

Attendance: Councillor Rutledge left the meeting from 9.52a.m. until 9.54a.m.

It was noted that Councillors Skinner and Walker were both members of the NRSBU and an invitation to visit Bells Island was extended to all councillors.

Resolved WI/2019/012

 

That the Works and Infrastructure Committee

1.       Receives the report Nelson Regional Sewerage Business Unit Wastewater Asset Management Plan (R9495) and its attachment (A2151474).

 

Walker/Rutledge                                                                             Carried

Recommendation to Council WI/2019/013

 

That the Council

1.     Approves the Nelson Regional Sewerage Business Unit Wastewater Asset Management Plan (A2151474) of report R9495.

 

Walker/Rutledge                                                                             Carried

 

9.       Nelson Tasman Regional Landfill Business Unit Terms of Reference and Nelson Regional Sewerage Business Unit Memorandum of Understanding

Document number R10053, agenda pages 172 - 192 refer.

Group Manager Infrastructure, Alec Louverdis, noted that this was a  procedural item that reflected the decisions made by the NRSBU. Mr Louverdis confirmed that this decision was to approve alterations to the existing Memorandum of Understanding and Terms of Reference for the NRSBU and Regional Landfill respectively.

Resolved WI/2019/014

 

That the Works and Infrastructure Committee

1.       Receives the report Nelson Tasman Regional Landfill Business Unit Terms of Reference and Nelson Regional Sewerage Business Unit Memorandum of Understanding (R10053) and its attachments (A2144233 and A2144291).

 

Noonan/Walker                                                                               Carried

Recommendation to Council WI/2019/015

 

That the Council

1.       Approves the revised Nelson Tasman Regional Landfill Business Unit Terms of Reference (A2144233), Attachment 1 of report R10053; and

2.       Approves the Nelson Regional Sewerage Business Unit Memorandum of Understanding (A2144291), Attachment 2 of report R10053; and

3.       Removes the requirement for a separate audit of the annual reports of the Nelson Tasman Regional Landfill Business Unit and the Nelson Regional Sewerage Business Unit, subject to similar approval by Tasman District Council.

 

Noonan/Walker                                                                               Carried

       

10.     Exclusion of the Public

 

Resolved WI/2019/016

 

That the Works and Infrastructure Committee

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

2.     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:

Rutledge/Noonan                                                                            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

Works and Infrastructure Committee Meeting - Public Excluded Minutes -  14 February 2019

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

The meeting went into public excluded session at 10.00a.m. and resumed in public session at 10.01a.m.

 

Please note that as the only business transacted in public excluded was to confirm the minutes, this business has been recorded in the public minutes. In accordance with the Local Government Official Information Meetings Act, no reason for withholding this information from the public exists.

 

 

1.       Confirmation of Minutes

1.1       14 February 2019

Document number M4023, agenda pages 3 - 4 refer.

Resolved WI/2019/017

 

That the Works and Infrastructure Committee

1.     Confirms the minutes of part of the meeting of the Works and Infrastructure Committee, held with the public excluded on 14 February 2019, as a true and correct record.

Noonan/Rutledge                                                                            Carried

          

2.       Re-admittance of the Public

Resolved WI/2019/018

That the Works and Infrastructure Committee

1.     Re-admits the public to the meeting.

 

Skinner/Noonan                                                                   Carried

There being no further business the meeting ended at 10.01a.m.

 

Confirmed as a correct record of proceedings:

 

 

 

                                                         Chairperson                                   Date

        


Works and Infrastructure Committee Minutes - 28 March 2019

 

 

Minutes of a meeting of the Works and Infrastructure Committee, to deliberate on submissions to the Amendment to the Speed Limits Bylaw 2011 (210) – Waimea Road

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

On Thursday 28 March 2019, commencing at 10.19am

 

Present:               Councillors S Walker (Chairperson), L Acland, P Matheson, M Lawrey, G Noonan, T Skinner and M Rutledge (Deputy Chairperson)

In Attendance:     Councillor I Barker, Chief Executive (P Dougherty), Group Manager Infrastructure (A Louverdis), Governance Adviser (E-J Ruthven), and Youth Councillors A Burton and H Smith

Apologies :          Her Worship the Mayor R Reese

 

 

1.       Apologies

Resolved WI/2019/019

That the Works and Infrastructure Committee

1.   Receives and accepts the apologies from Her Worship the Mayor for attendance.

Skinner/Noonan                                                                              Carried

2.       Confirmation of Order of Business

There was no change to the order of business.

3.       Interests

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

      

 

4.       Confirmation of Minutes

Document number R10061, agenda pages 5 - 8 refer.

Recommendation WI/2019/020

That the Works and Infrastructure Committee

1.     Confirms the minutes of the meeting of the Works and Infrastructure Committee hearing of submissions to Amendment to the Speed Limits Bylaw 2011 (210) – Waimea Road, held on 6 March 2019, as a true and correct record.

 

Rutledge/Lawrey                                                                             Carried

 

5.       Waimea Road Speed Limit Review - Deliberations

Document number R10000, agenda pages 9 - 22 refer.

Engineering Adviser, Sue McAuley, and Transport Planner, Waheed Ahmed, presented the report. 

Ms McAuley explained the amendment to clause one of the officer recommendation, aligning the description of the area of Waimea Road for which the speed reduction was proposed with the wording in the Speed Limits Bylaw.  She added that paragraph 7.1 of the report should state that three, rather than four, options had been considered.

Attendance:  Councillor Acland joined the meeting at 10.22a.m.

Ms McAuley and Mr Ahmed answered questions regarding the relationship between the proposed speed reduction area and the proposed intersection of Princes Drive and Waimea Road, safety considerations and potential traffic effects relating to the proposed speed limit reduction, historical reasons for the 70kph portion of Waimea Road, and past approaches to Council to consider lowering the speed limit in this area.

Attendance:  Councillor Skinner left the meeting from 10.27a.m to 10.28a.m.

Councillor Lawrey, seconded by Councillor Noonan, moved the amended recommendation in the officer report.

Committee members discussed the motion, noting that any negative traffic effects as a result of lowering the speed were outweighed by the safety benefits gained as a result of a lower speed limit. 

Recommendation WI/2019/021

That the Works and Infrastructure Committee

1.  Receives the report Waimea Road Speed Limit Review - Deliberations  (R10000).

 

Lawrey/Noonan                                                                               Carried

Recommendation to Council WI/2019/022

That the Council

1.   Approves the changes to the Speed Limits Bylaw 2011 (No. 210) by removing the section of Waimea Road 240m south of Market Road (Market Road) through to 200m north of the Beatson Road roundabout (being the section of Waimea Road 300m north of its intersection with the northern end of Beatson Road to a point 130m west of Tuckett Place, as described in Schedule H of the Speed Limits Bylaw) from Schedule H (70kph speed limit zones) and adding it to Schedule F (50kph speed limit zones); and

2.   Approves the changes to the Speed Limits Bylaw 2011 (No. 210) Schedule A, which includes the maps of the city’s speed limit zones; and

3.   Approves the implementation of the new speed limit, to take effect four weeks after the Council approval.

 

Lawrey/Noonan                                                                               Carried

         

 

There being no further business the meeting ended at 11.00am.

 

Confirmed as a correct record of proceedings:

 

 

                                                         Chairperson                                   Date

 


 

Item 7: Nelson Regional Sewerage Business Unit 2019/20 Business Plan

 

Works and Infrastructure Committee

23 May 2019

 

 

REPORT R9841

Nelson Regional Sewerage Business Unit 2019/20 Business Plan

     

 

1.       Purpose of Report

1.1       To receive, consider and either approve the Draft Nelson Regional Sewerage (NRSBU) 2019-20 Business Plan (Business Plan) with or without conditions or to provide feedback to the NRSBU Acting General Manager to take back to the NRSBU Board for consideration.

 

 

2.       Recommendation

That the Works and Infrastructure Committee

1.  Receives the report Nelson Regional Sewerage Business Unit 2019/20 Business Plan (R9841) and its attachment (A2165220).

 

Recommendation to Council

That the Council

1.  Approves the Nelson Regional Sewerage Business Unit 2019/20 Draft Business Plan (A2165220), noting that the increase in operational funding can be catered for in the 2019/20 financial year.

 

 

 

3.       Background

3.1       The NRSBU was established by the Nelson City Council (NCC) and Tasman District Council (TDC) in July 2000.  Its purpose is to manage and operate the wastewater treatment facility at Bell Island and the associated reticulation network efficiently and in accordance with resource consent conditions and to meet the needs of its customers.

3.2       A Memorandum of Understanding (MoU) has been signed by both Councils, as required, and this MoU requires that a Draft Business Plan for each financial year (commencing 1 July) be presented to both Councils annually by 31 December.

3.3       The NRSBU will then consider any comments from the Councils before finalising the Business Plan and presenting the final Business Plan to both Councils by March the following year.

4.       Discussion

4.1       The NRSBU Board considered the current 2019/20 NRSBU Business Plan presented by the Acting General Manager and resolved on 8 March 2019 as below:

Approves the draft Nelson Regional Sewerage Business Unit Business Plan 2019/2020”.

4.2       The Draft 2019/20 Business Plan was received by NCC officers from the Acting General Manager of the NRSBU on 29 March 2019 (refer to Attachment 1). That, according to the MoU, is three months late.

4.3       This 2019/20 Business Plan was substantially delayed as a result of the additional work required to the previous 2018/19 Business Plan that was sent back to the Acting General Manager and the NRSBU Board to include work around this Council’s Long Term Plan and its environmental aspirations. That previous 2018/19 Business Plan was presented to the Works and Infrastructure Committee in September 2018, and was approved by the Committee on 15 November 2018 and approved by Council on 13 December 2018.

4.4       The Draft 2019/20 NRSBU Business Plan, according to the MoU, was to be presented to the Committee in December 2018. As a result of the delay resulting from the 2018/19 Business Plan and only receiving the draft Business Plan in March 2019, the figures in the 2019/20 Draft NRSBU Business Plan did not make it into the NCC 2019/20 Draft Annual Plan. The result of this is a deficit of around $230,000 in the NCC wastewater activity and this is not catered for. 

4.5       Looking ahead, and in order to prevent a recurrence, the Acting General Manager has been requested to commence work on the Draft 2020/21 Business Plan immediately, to better inform the Draft 2020/21 Annual Plan.  

4.6       However, offsetting this deficit, the budgeted trade waste income within the wastewater activity is understated by $230,000. $53,000 of this relates to the above additional NRSBU costs feeding into trade waste income, and the fact that the volumes going through the trade waste system were not reviewed during the draft annual plan process and are understated. The Draft Annual Plan 2019/20 had budgeted trade waste income of $1.498 million; this is more likely to be around $1.728 million, an increase of $230,000.

4.7       Therefore, the net impact is that the deficit from the NRSBU Business Plan being received late can be covered within the wastewater activity without impacting the wastewater rate.

Draft 2019/20 Business Plan details

4.8       The 2019/20 Business Plan signed off by the NRSBU Board reflects an increase in expenses as detailed below:

4.8.1    An increase in operations and management costs of $476,000, which includes the costs for the Acting General Manager, operational oversight of the facility and increased infrastructural maintenance costs (deemed necessary by the Acting GM) for both Bell Island and Rabbit Island Bio-solids.

4.8.2    An increase of $500,000 in upgrades to reflect the implementation of the filtration system to allow re-use of the treated wastewater with the old filters from the Nelson Water Treatment Plant. This work is underway.  

4.9       The 2019/20 Business Plan also reflects an increase in income to the NRSBU of $418,000.

4.10     The implication to the NCC wastewater activity is that its share of the increased cost is around $140,000 (the total is split between the five contributors) and a reduction in the half share paid back to both TDC and NCC of $90,000 each. Total deficit is $230,000.

4.11     The Chair of the NRSBU and the NRSBU Acting General Manager will be in attendance to answer any questions.

5.       Options

5.1       The options include to accept the Draft 2019/20 Business Plan, or to send the Draft Business Plan back to the Acting GM and the NRSBU Board for more work.

 

Option 1: Accept the 2019/20 Draft Business Plan

Advantages

·    Will allow the Acting GM and NRSBU Board to focus on the draft 2020/21 Business Plan.

Risks and Disadvantages

·    None. 

 

Option 2: Refer back to Acting GM with request to reduce budgets

Advantages

·    Will allow the Acting GM and NRSBU Board to re-look at the budgets and the Business Plan.

Risks and Disadvantages

·    No operational saving may be possible.

·    Delays approval of 2019/20 Business Plan.

·    Delays work on 2020/21 Draft Business Plan. 

6.       Conclusion

6.1       The NRSBU Draft 2019-20 Business Plan has been approved by the NRSBU Board and released to the two Councils for comment/approval.

6.2       This is late and shows a deficit that has not been included in the NCC 2019/20 Annual Plan currently out for consultation. However, this deficit can be covered by correcting the trade waste income budget line.

6.3       The Committee has the option to provide feedback to the Acting General Manager or to present the Business Plan to Council for approval. 

 

Author:           Alec Louverdis, Group Manager Infrastructure

Attachments

Attachment 1:    A2165220 - NRSBU Draft Business Plan 2019/2020

  

 

Important considerations for decision making

1.   Fit with Purpose of Local Government

The NRSBU is a joint committee constituted pursuant to the provisions of Schedule 7 to the Local Government Act 2002. 

2.   Consistency with Community Outcomes and Council Policy

The decision in this report assists Council in providing key infrastructure and services to the community in a cost effective manner. 

The following community outcomes are applicable:

·      Our unique natural environment is healthy and protected.

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

3.   Risk

The risk of not approving the Business Plan is that this could delay the NRSBU implementing its Business Plan for 2019/20 and will delay the preparation of the Draft 2020/21 Business Plan.   

4.   Financial impact

The current Business Plan exceeds the provision in the 2019/20 Annual Plan out for consultation but can be offset by correcting the trade waste income budget line.

5.   Degree of significance and level of engagement

The decision is of low significance and therefore no community consultation is planned. 

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.

       Areas of Responsibility:

·        Wastewater

       Powers to Decide:

·        To perform all functions, powers and duties relating to the areas of responsibility conferred on Council by relevant legislation and not otherwise delegated to officers

         Powers to Recommend:

·        Asset and Activity Management Plans falling within the areas of responsibility

·        Development or review of policies and strategies relating to areas of responsibility

·        Any other matters within the areas of responsibility noted above.

 

 


Item 7: Nelson Regional Sewerage Business Unit 2019/20 Business Plan: Attachment 1

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Item 8: Nelson Tasman Regional Landfill Business Unit 2019-20 Business Plan

 

Works and Infrastructure Committee

23 May 2019

 

 

REPORT R10069

Nelson Tasman Regional Landfill Business Unit 2019-20 Business Plan

     

 

1.       Purpose of Report

1.1       To receive, consider and approve the Draft 2019-20 Nelson Tasman Regional Landfill Business Plan (Business Plan).

 

 

2.       Recommendation

That the Works and Infrastructure Committee

1.     Receives the report Nelson Tasman Regional Landfill Business Unit 2019-20 Business Plan (R10069) and its attachment (A2165219).

Recommendation to Council

That the Council

1.     Approves the Nelson Tasman Regional Landfill Business Unit 2019-2020 Business Plan (A2165219).

 

 

 

3.       Background

3.1       The NTRLBU was established by the Nelson City (NCC) and Tasman District (TDC) Councils in April 2017 and became operational from 1 July 2017.

3.2       The Deed of Agreement was approved in April 2017. The approved Terms of Reference requires that the Draft Business Plan be presented annually to each Council by October each year and allow for each Council to provide feedback (or to approve) the NTRLBU on the Business Plan.   

3.3       The Draft 2019-20 Business Plan was delayed pending award of the new landfill operation and maintenance contract.

3.4       The NTRLBU can only formally adopt the Draft Business Plan after receiving and considering comment from the two Councils and is then required to present the final Business Plan to the Councils by 31 May for inclusion in each Council’s draft Annual Plan.

3.5       The NTRLBU Board resolved on 8 March 2019 as below:

“Approves the Nelson Tasman Regional Landfill Business Unit draft Business Plan 2019/2020; and

Approves the Nelson Tasman Regional Landfill Business Unit’s proposed landfill charges for 2019/2020”.

4.       Discussion

4.1       The Draft Business Plan was received from the Acting General Manager of the NTRLBU on 29 March 2019 (refer to Attachment 1).

4.2       The Chair of the NTRLBU and the Acting General Manager will be present at the meeting to answer any questions.

4.3       Key features of the draft Business Plan are discussed below:

          Local Disposal Levy

4.4       The local disposal levy distributed to the two Councils has been increased by $200,000 to $2.4 million each for the 2019-20 financial year and has been included in the NCC Annual Plan 2019-20.

          Landfill Charges

4.5       The NTRLBU has the authority to set fees and charges and those have been set and included in the NCC’s Annual Plan 2019-20 for consultation.

4.6       Landfill charges have increased by 15.6%. This increase reflects the effect of the additional costs of the local waste disposal levy, the increase in operational cost of the landfill following the procurement of a new operations contract and the increased costs for the Emissions Trading Scheme.

          Options

4.7       The Committee has the option to provide feedback to the NTRLBU or present the Business Plan to Council for approval.

4.8       Officers recommended that Council approves the Business Plan.

5.       Conclusion

5.1       The NTRLBU Draft 2019-20 Business Plan has been approved by the NTRLBU Board and released to the two Council’s for comment.

 

Author:           Alec Louverdis, Group Manager Infrastructure

Attachments

Attachment 1:    A2170038 - Draft NTRLBU Business Plan

 

 

Important considerations for decision making

1.   Fit with Purpose of Local Government

The NTRLBU is a joint committee constituted pursuant to the provisions of Schedule 7 to the Local Government Act 2002. A regional landfill contributes to good quality local infrastructure.

2.   Consistency with Community Outcomes and Council Policy

The draft Business Plan aligns with the 2019/20 Annual Plan.

3.   Risk

This report allows Council to comment on the NTRLBU Business Plan and these comments will be considered by the Joint Committee. The risk of not approving the Business Plan is that this could delay the NTRLBU implementing their Business Plan for 2019/20.

4.   Financial impact

The NTRLBU 2019/20 Business Plan reflects an increase in landfill fees and charges and this is included in the 2019/20 Annual Plan currently out for consultation.

5.   Degree of significance and level of engagement

The NTRLBU is a Joint Committee of the two Councils and its activities are included in the Long-term Plans and Annual Plans of each Council.  Consultation is undertaken by both Councils in the preparation and adoption of these plans.

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 the Nelson Tasman Regional Landfill Business Plan:

Areas of responsibility: 

• Solid Waste, including landfill and transfer stations

• Recycling, including waste minimisation

Powers to Decide:

•  To perform all functions, powers and duties relating to the areas of responsibility conferred on Council by relevant legislation and not otherwise delegated to officers

Powers to Recommend:

•  Asset and Activity Management Plans falling within the areas of responsibility;

•  Development or review of policies and strategies relating to areas of responsibility;

•  Any other matters within the areas of responsibility noted above.

 

 


Item 8: Nelson Tasman Regional Landfill Business Unit 2019-20 Business Plan: Attachment 1

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Item 9: Works and Infrastructure Committee Quarterly Report to 31 March 2019

 

Works and Infrastructure Committee

23 May 2019

 

 

REPORT R10101

Works and Infrastructure Committee Quarterly Report to 31 March 2019

     

 

1.       Purpose of Report

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

 

 

 

2.       Recommendation

 

That the Works and Infrastructure Committee

1.     Receives the report Works and Infrastructure Committee Quarterly Report to 31 March 2019 (R10101) and its attachments (A2182699 and A2182701).

 

 

3.       Background

3.1       Quarterly reports on performance 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 performance (1 July 2018 to 31 March 2019) compared with the year-to-date (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 additions or changes as approved by the Committee or Council. 

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

3.5       Project status 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 (yellow), 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.

4.       Key developments for the three months to 31 March 2019

           

4.1       Investment Performance Audit report

Every three years NZTA undertake a detailed audit of all regional authorities. The objective of the audit is to provide assurance that the NZTA’s investment in NCC’s land transport programme is being well managed and delivering value for money and that the NCC is appropriately managing risk associated with the Transport Agency’s investment.

The last audit was undertaken in 2015 and the most recent audit was undertaken this year. The latest 2019 audit was received in April 2019 and the rating assessment across the following areas were deemed to be Effective – Financial Processes, Contract Management, Professional Services, Public Transport and Total Mobility/Supergold schemes.

The audit noted that:

a)  Contract management activities were found to be appropriately documented and supported by effective recordkeeping systems

b)  That whilst effective bus contract oversight has continued to be hindered by the limited information Council has been receiving from its electronic ticketing provider, that this will change when the Regional Interim Ticketing Solution (RITS) has been fully implemented later in 2019.

c)  NCC’s ability to manage the Total Mobility Scheme has been enhanced by the adoption of RideWise, an electronic system for recording total mobility trips and fares and improved information is assisting day to day administration of the scheme.

The audit also noted that two opportunities exist to further augment procurement practices around some management practices including:

a)  The need to include in its contract requests a statement about the process to be followed in the event of late tenders received. The audit found no issues but suggested that provision be included in all NZTA contracts the process to be followed in the event of errors or omissions in submissions. This work is underway.

b)  The need to extend the conflicts of interest. Council does have a robust conflict of interest register that is checked regularly by the Business Unit Managers, Group Managers and the Senior Leadership Team. Whilst the audit found no impropriety, NZTA suggest strengthening the conflicts of interest to include all members of the procurement team, all members of the evaluation panel, any consultant asked to advise the team, anyone asked to make a recommendation and anyone making a final approval. This has been actioned.

5.          Financial Results

Profit and Loss by Activity

Transport

YTD
Actuals

YTD
Operating
Budget
2018/19

YTD
Variance

Total Operating Budget 2018/19

Total
Annual
Plan
Budget
2018/19

Latest forecast

Income

 

 

 

 

Rates Income

(8,269)

(8,269)

0

(11,025)

(11,025)

(11,025)

Other Income

(4,502)

(4,492)

(10)

(5,962)

(6,606)

(6,126)

Total Income

(12,771)

(12,761)

(10)

(16,987)

(17,631)

(17,151)

 

 

 

 

 

Expenses

 

 

 

 

Staff Operating Expenditure

1,855

1,487

368

1,995

1,958

1,958

Base  Expenditure

6,618

6,639

(21)

8,626

9,752

8,510

Unprogrammed Expenses

213

69

144

185

8

224

Programmed Expenses

375

569

(194)

797

578

832

Finance Expenses

445

487

(42)

649

649

649

Depreciation

5,498

5,264

234

7,018

7,018

7,400

Total Expenses

15,004

14,515

489

19,270

19,963

19,573

 

 

 

 

 

(Surplus)/Deficit

2,233

1,754

479

2,283

2,332

2,422

 


 

Solid Waste

YTD
Actuals

YTD
Operating
Budget
2018/19

YTD
Variance

Total Operating Budget 2018/19

Total
Annual
Plan
Budget
2018/19

Latest forecast

 

 

 

 

 

Income

 

 

 

 

Rates Income

0

0

0

0

0

0

Other Income

(4,181)

(4,295)

114

(5,796)

(5,796)

(5,537)

Total Income

(4,181)

(4,295)

114

(5,796)

(5,796)

(5,537)

 

 

 

 

 

Expenses

 

 

 

 

Staff Operating Expenditure

213

200

13

267

275

275

Base  Expenditure

3,549

3,603

(54)

4,830

4,830

4,623

Unprogrammed Expenses

28

17

11

23

23

24

Programmed Expenses

124

184

(60)

266

266

230

Finance Expenses

28

29

(1)

38

38

38

Depreciation

112

191

(79)

254

254

150

Total Expenses

4,054

4,224

(170)

5,678

5,686

5,340

 

 

 

 

 

(Surplus)/Deficit

(127)

(71)

(56)

(118)

(110)

(197)

 

Stormwater

YTD
Actuals

YTD
Operating
Budget
2018/19

YTD
Variance

Total Operating Budget 2018/19

Total
Annual
Plan
Budget
2018/19

Latest forecast

Income

 

 

 

 

Rates Income

(3,121)

(3,113)

(8)

(4,151)

(4,151)

(4,151)

Other Income

(5)

0

(5)

0

0

0

Total Income

(3,126)

(3,113)

(13)

(4,151)

(4,151)

(4,151)

 

 

 

 

 

Expenses

 

 

 

 

Staff Operating Expenditure

524

535

(11)

713

713

713

Base  Expenditure

340

259

81

307

277

305

Unprogrammed Expenses

150

213

(63)

300

220

300

Programmed Expenses

112

163

(51)

289

186

303

Finance Expenses

351

395

(44)

527

527

527

Depreciation

1,787

1,671

116

2,228

2,228

2,394

Total Expenses

3,264

3,236

28

4,364

4,151

4,542

 

 

 

 

 

(Surplus)/Deficit

138

123

15

213

0

391

 

 

 

Water Supply

YTD
Actuals

YTD
Operating
Budget
2018/19

YTD
Variance

Total Operating Budget 2018/19

Total
Annual
Plan
Budget
2018/19

Latest forecast

Income

 

 

 

 

Rates Income

(2,723)

(2,722)

(1)

(3,629)

(3,629)

(3,629)

Other Income

(4,760)

(4,730)

(30)

(8,508)

(8,508)

(8,500)

Total Income

(7,483)

(7,452)

(31)

(12,137)

(12,137)

(12,129)

 

 

 

 

 

Expenses

 

 

 

 

Staff Operating Expenditure

641

741

(100)

988

988

988

Base  Expenditure

2,558

2,479

79

3,299

3,299

3,310

Unprogrammed Expenses

1,458

1,115

343

1,975

1,925

2,075

Programmed Expenses

106

175

(69)

296

307

210

Finance Expenses

1,017

1,041

(24)

1,388

1,388

1,388

Depreciation

3,183

3,173

10

4,231

4,231

4,256

Total Expenses

8,963

8,724

239

12,177

12,138

12,227

 

 

 

 

 

(Surplus)/Deficit

1,480

1,272

208

40

1

98

 

Flood Protection

YTD
Actuals

YTD
Operating
Budget
2018/19

YTD
Variance

Total Operating Budget 2018/19

Total
Annual
Plan
Budget
2018/19

Latest forecast

Income

 

 

 

 

Rates Income

(1,244)

(1,240)

(4)

(1,654)

(1,654)

(1,654)

Other Income

0

0

0

0

0

0

Total Income

(1,244)

(1,240)

(4)

(1,654)

(1,654)

(1,654)

 

 

 

 

 

Expenses

 

 

 

 

Staff Operating Expenditure

131

110

21

146

146

146

Base  Expenditure

35

42

(7)

61

61

42

Unprogrammed Expenses

53

44

9

48

80

73

Programmed Expenses

0

9

(9)

10

16

10

Finance Expenses

508

564

(56)

753

753

753

Depreciation

346

448

(102)

598

598

465

Total Expenses

1,073

1,217

(144)

1,616

1,654

1,489

 

 

 

 

 

(Surplus)/Deficit

(171)

(23)

(148)

(38)

0

(165)

 

 

Wastewater

YTD
Actuals

YTD
Operating
Budget
2018/19

YTD
Variance

Total Operating Budget 2018/19

Total
Annual
Plan
Budget
2018/19

Latest forecast

Income

 

 

 

 

Rates Income

(5,864)

(5,845)

(19)

(7,794)

(7,794)

(7,819)

Other Income

(1,376)

(1,722)

346

(2,474)

(2,474)

(2,402)

Total Income

(7,240)

(7,567)

327

(10,268)

(10,268)

(10,221)

Expenses

 

 

 

 

Staff Operating Expenditure

555

619

(64)

825

825

825

Base  Expenditure

3,705

3,606

99

4,648

4,648

5,109

Unprogrammed Expenses

340

412

(72)

550

550

550

Programmed Expenses

727

911

(184)

1,075

1,070

1,016

Finance Expenses

58

43

15

57

57

57

Depreciation

2,836

2,753

83

3,670

3,670

3,834

Total Expenses

8,221

8,344

(123)

10,825

10,820

11,391

 

 

 

 

 

(Surplus)/Deficit

981

777

204

557

552

1,170

 

Notes

Base Expenditure is expenditure that happens year after year, for example yearly contracts or operating expenses.

Programmed Expenditure is planned, or there is a specific programme of works. For example, painting a building.

Unprogrammed Expenditure is reactive or unplanned in nature, for example responding to a weather event. Budgets are included as provisions for these expenses which are unknown.

 

 


 

Other Operating Revenue

 


 

Operating Expenditure

Depreciation

The depreciation expenditure forecast is greater than the current operating budget for several of Council’s activities.  The reason for the increase is due to the effects from 2017/18 revaluation being greater than originally allowed for. 

Subsidised Roading income is greater than budget by $110,000. NZTA subsidies and Tasman District Council recoveries are $85,000 and $25,000 ahead of budget respectively due to ahead of budget expenditure.

Subsidised Roading expenditure is greater than budget by $422,000. The allocation of staff costs is $318,000 ahead of budget. Some of this variance relates to more time correctly being coded to subsidised roading, as opposed to unsubsidised roading, in order that costs can be recovered where possible. Costs that are ahead of budget include drainage maintenance ($86,000), footpath maintenance ($76,000), and February 2018 Storm Event costs ($80,000). Some costs are behind budget, including TRACKS and SATURN Modelling ($94,000) and bridge maintenance ($148,000).

Unsubsidised Roading expenditure is greater than budget by $65,000. The allocation of staff costs is $76,000 behind budget. Some of this variance relates to less time being coded to unsubsidised roading, and more time being coded to subsidised roading, in order to take full advantage of NZTA subsidies where these are available. Depreciation is $244,000 ahead of budget due to the 2017/18 revaluation.  The end of financial year forecast is anticipated to be below total operating budget (this doesn’t include depreciation).

Parking Regulation income is less than budget by $88,000. Court Fines Recovered are behind budget by $46,000. Infringement fees, including Section 2A Registration and Warrant of Fitness fees, are behind budget by $34,000.

Parking Regulation expenditure is less than budget by $27,000. Court Processing costs year to date are $29,000 behind budget. EIL Contract costs are behind budget by $24,000 due to the new contract price. The allocation of staff costs is $28,000 ahead of budget, relating to Contractor IT Support costs.

Parking and CBD Enhancement income is less than budget by $93,000. Off Street Meter fees are behind budget by $106,000, with low returns currently being investigated.

Parking and CBD Enhancement expenditure is greater than budget by $98,000. The allocation of staff costs is ahead of budget by $84,000, including $56,000 of costs allocated to the Wakatu Square land disposal proposal.

Public Transport income and expenditure are now tracking to budget. Income and expenditure budgets have been re-allocated to reflect delays in moving to a gross contract, which is anticipated to occur when electronic ticketing goes live in late 2019.

Waste Minimisation income is less than budget by $43,000. Waste minimisation income is driven by expenditure.

Waste Minimisation expenditure is less than budget by $22,000. Waste Management and Minimisation Plan expenses are behind budget $19,000 due to delays resulting from fire emergencies. Waste Minimisation Community Contract costs are behind budget by $20,000 due to investigative projects being completed in the current year, and it is anticipated that the full year budget may be underspent.

Transfer Station income is less than budget by $87,000. Transfer station income is driven by expenditure.

Transfer Station expenditure is less than budget by $106,000. Depreciation is behind budget by $78,000 due to re-categorisation of assets to the joint landfill. Plant and Equipment Maintenance costs are behind budget by $28,000 due to timing of expenditure not matching budget phasing, and work is on track to be completed by the end of the financial year.

Landfill expenditure is less than budget by $47,000. Local disposal levies are behind budget by $85,000. These are internal charges and reflect the behind budget costs of other solid waste cost centres.

Wastewater income is less than budget by $346,000.  Commercial trade waste income is ahead of budget by $96,000 year to date and is forecast to be ahead of budget by $360,000 for the full financial year. This variance is due to catch-up invoices relating to the prior year being invoiced in the current year, and to the budget being set too low.

The Council’s share of the Nelson Regional Sewerage Business Unit (NRSBU) net surplus is year to date behind budget by $445,000. The NRSBU is described in more detail below.

Wastewater expenditure is less than budget by $138,000. The allocation of staff costs is behind budget by $64,000. Wastewater Reticulation Reactive Maintenance is behind budget by $29,000 due to timing of expenditure not matching budget phasing. Depreciation is ahead of budget by $83,000.

The Council’s share of the Regional Sewerage Business Unit costs are currently behind budget by $78,000, however are forecast to be overspent by $462,000 for the full financial year due to the end of year wash-up to recover the additional expenses. The NRSBU is described in more detail below.

Nelson Regional Sewerage Business Unit

The NRSBU has incurred higher than budgeted management and maintenance costs. In addition, Council’s proportionate share of costs, due to volumes and waste type, have increased compared to budget. For the full financial year, once the wash up is completed, Council’s share of NRSBU net surplus is forecast to meet budget, however Council’s share of NRSBU expenses are forecast to exceed budget by $462,000.

Stormwater expenditure is greater than budget by $72,000. Depreciation is $116,000 ahead of budget due to the 2017/18 revaluation of assets. The end of financial year forecast is anticipated to be approximately $12,000 over total operating budget (this doesn’t include depreciation).  Operational work in other areas of the stormwater activity are being actively reduced to balance out this forecasted overspend. 

Water Supply income is greater than budget by $30,000. Commercial Water by Meter charges are ahead of budget by $282,000. Residential Water by Meter charges are behind budget by $278,000. The residential year-to-date income relates to the October / November meter reading, which typically accounts for about 45% of the full year income. The April / May residential meter readings are currently being completed.  The effects to income from the drought (water restrictions) will only be known by the end of the financial year following the completion of the April / May residential meter readings. 

Water Supply expenditure is greater than budget by $263,000. Water Reticulation Reactive Maintenance costs are ahead of budget by $337,000 due to a run of large watermain breaks and associated road resurfacing costs. The number of minor leak repairs also increased this quarter as leaks were more visible (patches of green grass) during the drought.  The end of financial year forecast is anticipated to be approximately $25,000 over total operating budget (this doesn’t include depreciation).  Operational work in other areas of the water activity are being actively reduced to balance out this forecasted overspend. 

Flood Protection expenditure is behind budget by $89,000. Depreciation expenses are behind budget by $103,000.  The end of financial year forecast is anticipated to be approximately $6,000 over total operating budget (this doesn’t include depreciation).  Operational work in other areas of the Flood Protection activity are being actively reduced to balance out this forecasted overspend.  

 


 

Capital expenditure

5.1       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:

5.2       Saltwater Creek Bridge Upgrade – Construction is now underway, but as result of delays in funding decisions required prior to award of contract, work will not be completed this financial year.  It is expected that the total budget of approximately $1,200,000, will be underspent by $400,000 in this financial year, and will be spent in the 2019/20 financial year, this has been catered for in the 2019/20 Annual Plan.

5.3       Street light conversion to LED – the bulk purchase price of luminaires resulted in close to $700,000 underspend which has been used to install new street lights along Waimea Road, and replace decorative street lights as appropriate.  The overall projected savings will be somewhere around $300,000 in this financial year.

5.4       Residential Water Meters – the purchase price of the meters has come in lower than original estimate.  This has resulted in an anticipated saving of $300,000.

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

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

5.7       Rutherford Stage 1 Girls College Detention. – This project has a projected spend of $50,000 versus a budget of $290,000 ($240,000 underspend). Stormwater issues in this area are complex with various potential solutions, each potential option has its own unique risks which need to be factored into the final solution, the complexity of the issues and resource issues through this year have resulted in this underspend. The rephrasing of this has been addressed as part of the Annual Plan.

5.8       Noting the potential underspends and savings as detailed above, officers continue to review alternative methods to maximise capital expenditure this financial year. This has resulted in the Tui Glen Road watermain renewal going out to tender shortly, with potential to start construction this financial year.

6.       Commentary on capital projects

6.1       All capital projects with a budget greater than $250,000 in this financial year have a project sheet in Attachment 1 of this report.

            Key Points to note:

6.2       Hardy Street Watermain renewal is due to get underway late May and as a result will not be completed this financial year.

6.3       Westbrook Convergence Bridge Deck replacement project has moved forward quicker than anticipated, with construction starting in May. As a result the previously expected underspend in this financial year will be minimal.

6.4       Bus Ticketing – This project has a projected underspend of $248,000.  This is due to the timeline of the project being extended as a result of initial testing.

6.5       Construction is underway for the Tahunanui Shared Path and new watermain along Annesbrook Drive (including underground ducting for Network Tasman).

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.

7.3       The removal of the dewatered sludge from the Nelson Wastewater Treatment Plant has been completed ahead of schedule.  The removal of the final two sludge bags was brought forward into this financial year as a preventative measure due to risks associated with the summer drought.  The drought had caused the quality of the sewerage within the reticulated network to be potentially of poor quality and posed a risk of ‘crashing’ the treatment plant ponds following the first major rainfall event.  The removal of the final two sludge bags provides the buffer pond facility (that was housing these bags) to be available to redirect the initial flush of poor quality sewerage following a large rainfall event.   This risk didn't eventuate due to the severity of the rainfall events being smaller than anticipated.  There will be a minor overspend this financial year (~$20,000) due to the removal of these bags. Although this project is classified as operational expenditure, it is loan funded, and therefore, this minor overspend will be funded from savings within the Capital expenditure programme.

8.       Status Reports

8.1       Tahunanui Cycle Network – Preferred Option – Resolved WI/2018/029 updated comments:

Refer to the specific item in Attachment 1 of this report for the update.  Community engagement for Tahunanui Pathways Stage 2 is planned for autumn 2019, with construction to follow in summer 2019/2020.

8.2       Sand Bags – Resolved CL/2018/119 updated comments:

To inform a future Works and Infrastructure report, work has commenced to investigate what policy and practice other New Zealand Councils have in this area.  Advice is being taken from Emergency Management.  In addition, messaging about sandbags in general for council communication will be improved (e.g. how they work where to get them, how to install/dispose of).

9.       Other notable achievements, issues or matters of interest

9.1       Risks

9.1.1    The key risk for the Capital projects team relates to achieving delivery of the capital programme. Whilst work is programmed to be completed, as with all projects circumstances can change at any time resulting in delays, which will then effect the ability to achieve the expected timelines.

9.2       Recruitment

9.2.1    Capital projects has filled a team leader position but has had one resignation during the period which has resulted in four open vacancies. Work is ongoing to fill these positions.

9.2.2    The utilities team is now fully staffed following the recruitment of one new external staff member, recruitment of an internal staff member and one existing staff member withdrawing their resignation.

9.2.3    The roading operations team has carried a vacancy for this quarter but successful recruitment will see a new staff member commencing in May.

9.3       Water drought

9.3.1    From January through to the mid-March, the region experienced a severe drought.  This resulted in Council issuing water restrictions to the urban network from the 30 January through to the 28 March.  Due to the severity of the drought, stage three restrictions were in place for approximately two weeks.

9.3.2    The Council supplied water to the Tasman District Council (TDC) Richmond water supply scheme for approximately five weeks. At the height of the drought, the Council was supplying TDC in the order of 1,600m3/day of water.

9.3.3    As a result of the drought, the water level within the Maitai Dam dropped by approximately 4.5m below the spill level and dropped to a storage volume of approximately 2,775,000 m3  (69% full).

9.3.4    The water level in the Maitai Dam dropped sufficiently that the second dam intake had to be used. Elevated concentrations of iron and manganese was present at this level and resulted in discoloured water being distributed into the network. This water is safe to drink, however it resulted in a number of complaints, primarily from motels, due to towels being discoloured once washed. Water pipelines to affected properties were flushed and a cleaning product was given to assist with removing stains. Customers were advised to consider installing a filter onto their water supply lateral in order to avoid any possible recurrence of issues resulting from water discolouration.

9.4       Fire Emergency

9.4.1    A number of staff in infrastructure were involved in the Pigeon Valley fire efforts, resulting in additional work being taken up by others, or delayed, the effect has also continued to some degree with staff taking special leave and time in lieu.  The impact of this continues to be felt with staff showing high levels of stress associated with workloads.

9.4.2    As a result of the fires there have been a number of delays to projected project timelines, however these are still on track to be completed within this financial year, including:

·   Anzac Park to Maitai Walkway

·   Maitai Valley Road Shared Path

·   Brook Stream Fish Passage

·   Bolt Road Watermain

·   Brook Mountain Bike Hub Bridge

·   Saxton Mountain Bike Trail

·   Natural Hazards three waters study

·   Athol Street Slip reinstatement

·   Storm Water Strategy

·   Road Line Marking

·   Joint Waste Management and Minimisation Plan with Tasman District Council. This plan will not be finalised until June and will come before Council for approval in September 2019.

10.     Workshop Update

10.1     On 14 February 2019 a workshop was held with this Committee to discuss the next update of the Infrastructure Strategy and the Maitai River Flood Protection project.

10.2     For the Infrastructure Strategy, officers provided a high level summary of the current strategy and the key challenges over the next 30 years.

10.3     For the Maitai River Flood Protection project, officers gave a presentation on the proposed risk based approach philosophy.  The workshop attendees discussed this approach to flood protection and potential need to consult with the community sooner than currently planned.  Sea level rise as per the new Ministry for the Environment Guidance Document on Coastal Hazards and Climate Change (2017) was discussed. This issue will be further discussed as part of the Nelson Plan.

11.     Key Performance Measures

11.1     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

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

Quarterly Review of Key Performance Indicators

    

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

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

11.5     One performance measure is not on track – 2.02 Water Supply, Quality, c) part 8 of the drinking water standards (chemical compliance criteria).  This new performance measure was included as part of the 2018-28 long term plan. During the third quarter the water reticulation had a single chemical transgression (in the Enner Glynn area) due to an elevated reading of Haloacetic Acids (actual value was 1.01 vs a threshold limit of 1).   Haloacetic Acids are a by-product produced from the reaction between chlorine and naturally occurring dissolved organics from the river water.  The Ministry of Health Drinking Water Assessor was notified at the time.  Officers are undertaking additional testing to confirm this incident was an anomaly (which would result in meeting this performance measure) and exploring options to prevent a reoccurrence. 

11.6     Due to the odour issues at the NWWTP, one performance measure was not achieved.  This reason for this odour issue was detailed in the second quarterly report that was presented to Works and Infrastructure Committee in February 2019.

12.     Conclusion

12.1     The review of performance for the third 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:    A2182699 - Project Reports

Attachment 2:    A2182701 - Key Performance Measures

   


Item 9: Works and Infrastructure Committee Quarterly Report to 31 March 2019: Attachment 1

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Item 9: Works and Infrastructure Committee Quarterly Report to 31 March 2019: Attachment 2

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Item 10: Infrastructure Fees and Charges 2019-2020

 

Works and Infrastructure Committee

23 May 2019

 

 

REPORT R9920

Infrastructure Fees and Charges 2019-2020

     

 

1.         Purpose of Report

1.1       To approve fees and charges for Infrastructure services for the 2019/20 financial year.

 

 

2.         Recommendation

 

That the Works and Infrastructure Committee

1.      Receives the report Infrastructure Fees and Charges 2019-2020 (R9920) and its Attachment (A2167740).

 

Recommendation to Council

That the Council

1.      Approves the proposed fees and charges as per Attachment (A2167740) of Report R9920, effective 1 July 2019.

 

 

 

2.         Background

2.1       Fees and Charges are reviewed annually and either adjusted in line with the Consumer Price Index (CPI) or changed to reflect any changes in process and/or costs incurred by Council. This report addresses Infrastructure fees and charges.

2.2       Officers currently have delegations to set fees and charges. For increases over CPI officers are of the view that approval via a recommendation from the relevant committee to Council is appropriate.

3.         Discussion

3.1       Proposed fees and charges for Utilities (water) reflect a CPI adjustment of 1.9% across the board. No other changes are proposed.

3.2       For Roading, a CPI adjustment of 1.9% is applied across the board with the exception of road closure application fees. 

3.2.1    Road closure fees are based on cost recovery of staff time and advertising costs. Since council now uses its own media channels to advertise road closures rather than public newspapers, and this still meets legal requirements, these costs have come down and are reflected in the reduced charges proposed. The new charges are more closely aligned to those of Tasman District Council. The change to fees is shown in Table 1 of Attachment 1

3.3       Changes to proposed fees and charges for Solid Waste at the transfer station other than CPI are listed in Table 2 of Attachment 1. Rounding for ease of cash transactions has been applied.

3.3.1    The transfer station charge for residual waste needs to increase by $6.36 per m3 to match the proposed 15.6% increase in the Joint Regional landfill charges.

3.4       Subject to approval by this Committee, all users will be given a minimum 30 days’ notice of the proposed changes prior to implementation.

4.         Options

4.1       Option 1 (Recommended option) Approve the proposed charges effective 1 July 2019.

4.2       Option 2 Do not approve the proposed charges.

5.         Conclusion

5.1       Officers recommend that the fees and charges as set out in Attachment 1 of this report be approved.

         

 

Author:           Margaret Parfitt, Manager - Transport and Solid Waste

Attachments

Attachment 1:    A2167740 Proposed Changes to  Fees and Charges for Infrastructure 2019-20

 

 

Important considerations for decision making

1.   Fit with Purpose of Local Government

Annual review of fees and charges enables Council to meet the current and future needs of communities for good-quality local infrastructure, local public services, in a way that is most cost-effective for households and businesses.

2.   Consistency with Community Outcomes and Council Policy

Approving amended fees and charges enables Council to carry out activity that is aligned with the community outcome “our infrastructure is efficient, cost effective and meets current and future needs”.

3.   Risk

Fees and Charges are reviewed annually and either adjusted in line with the Consumer Price Index or changed to reflect any changes in process and/or costs incurred to Council. If proposed changes are not approved the income generated from fees and charges may not cover actual costs incurred and result in a financial shortfall.

4.   Financial impact

The fees and charges income is included in Council’s Long Term Plan. 

5.   Degree of significance and level of engagement

The recommendations outlined in the report are not considered significant in terms of Council’s Significance Policy. Other than consultation on the annual plan relating to increases in the Regional Landfill charges no formal consultation has occurred with regards to the fee increases in this report.

6.   Inclusion of Māori in the decision making process

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

7.   Delegations

6.5.1    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

·        Cycleways and Shared Pathways with an active transport focus[1]

·        Water

·        Wastewater

·        Stormwater and Flood Protection

·        Solid Waste, including landfill and transfer stations

·        Recycling, including waste minimisation

·        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.

 

6.5.3    Powers to Recommend:

 

•      Any other matters within the areas of responsibility noted above.

Currently officers have delegated authority to set fees and charges. For increases over CPI, officers are of the view that approval by Council is appropriate. 

 

 


Item 10: Infrastructure Fees and Charges 2019-2020: Attachment 1

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Item 11: Parking Meter Renewal - Referral of powers

 

Works and Infrastructure Committee

23 May 2019

 

 

REPORT R10175

Parking Meter Renewal - Referral of powers

     

 

1.       Purpose of Report

1.1       To refer authority to Council to consider all matters relating to the renewal of parking meters.

 

 

2.       Recommendation

That the Works and Infrastructure Committee

1.     Receives the report Parking Meter Renewal - Referral of powers (R10175); and

2.     Refers to Council all powers of the Works and Infrastructure Committee relating to the renewal of parking meters.

Recommendation to Council

That the Council

1.     Considers the matter of the renewal of parking meters.

 

 

 

3.       Background

3.1       A priority of the Council’s Long Term Plan (LTP) is a healthy, vibrant and thriving Central Business District (CBD); one that supports our retail and other businesses, while attracting visitors and residents alike. There is a strong relationship between parking and CBD vitality.

3.2       The City Centre parking meters are dated and have reached the end of their useful life, with maintenance costs and machine downtime increasing. Additionally existing meters no longer offer the payment flexibility and options expected by the public.

3.3       Council has allocated a budget of $800,000 in the Draft Annual Plan 2019/21 for their renewal.

3.4       There are a number of hardware/software options for the renewal that will provide a modern smart system whilst maintaining the future flexibility for any changes to fees and time limit options to support the vitality and amenity in the City Centre.

3.5       A workshop was held in December 2018 where potential options were explored with Council and there was some hesitancy to commit to further exploring any option without considering a parking strategy. Work is underway bring to Council more information regarding a high level

4.       Discussion

4.1       The close relationship between parking and CBD vitality has resulted in Transport Officers working closely with the City Development Team to inform a report on options for parking meter replacement. A summary of the work recently undertaken to consider future parking options will be presented to Council at a briefing on 28 May 2019.

4.2       A decision on whether to proceed with the renewal, and if so which option to adopt, is required in order to proceed to Request for Tender. Officers request full Council consideration at an early date given the risk of meters failing and the urgent need to proceed with a solution. In addition, officers consider the strong relationship between CBD vitality and parking as one warranting full Council consideration rather than the subset of the Works and Infrastructure Committee.

          Options

4.3       The Committee can either refer this matter to Council or not.

 

Option 1: Refer matter to Council (preferred option)

Advantages

·   A formal decision to proceed with an option will be able to be made within an appropriate timeframe.

·   Recognises the strong relationship between parking and CBD vitality which is a priority to full Council under the LTP.

·   Parking is of high interest to Councillors and it is appropriate that full Council has knowledge of the background information and options for procurement of any new meters.

Risks and Disadvantages

·   None

Option 2: Retain at this Committee

Advantages

·    Committee retains full overview

Risks and Disadvantages

·    Fails to recognise the strong relationship between parking and CBD vitality which is a priority for full Council.

·    Decision making process will be lengthened and meters are at the end of their life.

 

5.       Conclusion

5.1       The vitality of the CBD is strongly influenced by parking and is an important issue for Council. Due to the risk of aging meters failing a decision on whether to proceed with the renewal, and if so which option to adopt, is required in order to proceed to Request for Tender. Budget is set for procurement in 2019/20 year and officers recommend referring this matter to Council for expediency.

 

Author:           Margaret Parfitt, Manager - Transport and Solid Waste

Attachments

Nil

 

Important considerations for decision making

1.   Fit with Purpose of Local Government

Not applicable – this is an administrative matter.

2.   Consistency with Community Outcomes and Council Policy

This decision is not inconsistent with any Council policy.

3.   Risk

There is currently an expectation that the parking meter renewal will occur in 2019-20. There is an increasing risk that aging meters will fail. The risk of not delegating this to Council may delay procurement and renewal.

4.   Financial impact

This decision does not involve any financial impact.

5.   Degree of significance and level of engagement

This matter is of low significance as it is an administrative matter and not a substantive decision and therefore no consultation has been undertaken

6.   Inclusion of Māori in the decision making process

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

7.   Delegations

The Works & Infrastructure Committee has the following delegations to consider Parking Meter Renewal

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

Powers to Decide:

·      Nil

Powers to Recommend:

·    Any other matters within the areas of responsibility noted above.

 

 


 

Item 12: Wakatu Lane - Potential Road Stopping and Sale - Referral of Powers

 

Works and Infrastructure Committee

23 May 2019

 

 

REPORT R10187

Wakatu Lane - Potential Road Stopping and Sale - Referral of Powers

     

 

1.       Purpose of Report

1.1       To refer to Council the Committee’s mandate to make decisions on the potential road stopping and sale of Wakatu Lane.

 

 

2.       Recommendation

 

That the Works and Infrastructure Committee

1.     Receives the report Wakatu Lane - Potential Road Stopping and Sale - Referral of Powers (R10187) and its attachments A2179994 and A2179989; and

2.     Refers to Council all powers of the Works and Infrastructure Committee relating to Potential Road Stopping and Sale of part of Wakatu Lane - referred to in Report R10152.

Recommendation to Council

That the Council

1.     Considers the matter of Potential Road Stopping and Sale of part of Wakatu Lane.

 

 

 

3.       Background

3.1       A proposal has been received from a Nelson based developer, Cephas Properties (Nelson) Limited, to purchase part of the eastern end of Wakatu Square, including part of Wakatu Lane, to facilitate the development of an urban shopping precinct. The proposed parcel of land for sale/purchase is shown in red in Attachment 1 – Aerial of Proposed Land for Sale (A2179994). The final shape and size of the parcel of land for sale will take into account the scale, shape and design of an acceptable development, public car parking, bus services and public amenity of this location.

3.2       Public feedback on the proposal is currently being obtained through a Special Consultative Procedure before a decision by Council on the potential sale.  The closing date for submissions on the Statement of Proposal (A2145385) is 2 May 2019 with deliberations scheduled for 4 June 2019.

3.3       If Council decides to sell the proposed parcel of land, a separate consultation process will be required if part of Wakatu Lane is to be included in the sale.  The indicative portion of Wakatu Lane that could be stopped is shown in blue over the proposed parcel of land for sale (red) in Attachment 2 – Aerial of Wakatu Lane- Potential Road Stopping (A2179989).

3.4       The Works and Infrastructure Committee has the delegated authority for the Nelson roading network and all land associated with that roading network.  The Committee has the power to hear, consider and decide all applications for road stopping.  Further, the Committee has the power to recommend to Council on property transactions that involves the sale of land in the Nelson roading network.

3.5       As the decision on the stopping of Wakatu Lane requires consideration of similar issues as the deliberations for the sale of part of Wakatu Square and there is some timing pressure, the Committee is requested to refer the mandate for any decisions on Wakatu Lane to Council.

4.       Options

4.1       The Committee can either refer this matter to Council or not

 

Option 1: Refer matter to Council (preferred option)

Advantages

·   The decision to stop Wakatu Lane is of high public interest and it is appropriate that the full Council consider the issue.

·   A decision can be made in more timely fashion

Risks and Disadvantages

·   None

Option 2: Retain at this Committee

Advantages

·    Committee retains delegated authority

Risks and Disadvantages

·    Decision making process takes longer, slowing progress on the proposed development

 

 

Author:           Antony Hobbs, Strategic Property Adviser

Attachments

Attachment 1:    A2179994 - Aerial of Proposed Land for Sale

Attachment 2:    A2179989 -  Aerial of Wakatu Lane - Potential Road Stopping

 

 

Important considerations for decision making

1.   Fit with Purpose of Local Government

The decision to refer the Committee’s mandate allows timely decision making on a matter which has the potential to deliver good quality local infrastructure for the community and support the local economy.

2.   Consistency with Community Outcomes and Council Policy

This decision is part of the process to consider a significant potential development for the city centre and therefore supports the community outcome “Our region is supported by an innovative and sustainable economy”.

3.   Risk

This decision does not carry any risk as the matters will be considered in full by Council.

4.   Financial impact

This decision does not involve any financial impact.

5.   Degree of significance and level of engagement

The decision to refer the matter to Council is of low significance as it is an administrative matter and therefore no consultation is required.

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 Road Stopping.

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:

·      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 12: Wakatu Lane - Potential Road Stopping and Sale - Referral of Powers: Attachment 1

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Item 12: Wakatu Lane - Potential Road Stopping and Sale - Referral of Powers: Attachment 2

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[1] The shared pathways with an active travel focus may be updated as part of the review of the Parking and Vehicle Control Bylaw 2011.  Shared pathways with an active travel focus currently include Atawhai Shared Path, Beatson Road, Coastal Route, Gloucester Street, Maitai River, Nile Street, Orchard Stream, Poormans Stream, Railway Reserve, St Vincent Street, Stoke to Richmond, Toi Toi Street, Vanguard Street, Waimea Road, Willow Walk and Whakatu Drive.