Agenda of Infrastructure Committee

Infrastructure Committee

19 November 2020

Page No.

1. Apologies

1.1 Apologies have been received from Her Worship the Mayor R Reese, Councillors J Edgar and R O’Neill Stevens for attendance (all on Council business)

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 1 October 2020 8 - 12

Document number M15172

Recommendation

That the Infrastructure Committee

1. Confirms the minutes of the meeting of the Infrastructure Committee, held on 1 October 2020, as a true and correct record.

6. Chairperson's Report 13 - 14

Document number R21397

Recommendation

That the Infrastructure Committee

1. Receives the report Chairperson's Report (R21397).

7. Nelson Regional Sewerage Business Unit - Annual Report 2019/20 15 - 50

Document number R20285

Recommendation

That the Infrastructure Committee

1. Receives the report Nelson Regional Sewerage Business Unit - Annual Report 2019/20 (R20285) and its attachment (A2458265); and

2. Receives the Nelson Regional Sewerage Business Unit - Annual Report 2019/20 (A2458265).

8. Nelson Regional Sewerage Business Unit 2021/22 Business Plan 51 - 70

Document number R20284

Recommendation

That the Infrastructure Committee

1. Receives the report Nelson Regional Sewerage Business Unit 2021/22 Business Plan (R20284) and its attachment (A2511235); and

2. Provides feedback to the General Manager of the Nelson Regional Sewerage Business Unit on the draft Nelson Regional Sewerage 2021/22 Business Plan (A2511235).

9. Nelson Regional Sewerage Business Unit - 2021/31 Activity Management Plan 71 - 81

Document number R11480

Recommendation

That the Infrastructure Committee

1. Receives the report Nelson Regional Sewerage Business Unit - 2021/31 Activity Management Plan (R11480) and its attachment (A2496103); and

2. Provides feedback to the General Manager of the Nelson Regional Sewerage Business Unit on the Draft 2021 – 2031 Nelson Regional Sewerage Business Unit Activity Management Plan.

10. Nelson Tasman Regional Landfill Business Unit - Annual Report 2019/20 82 - 107

Document number R20286

Recommendation

That the Infrastructure Committee

1. Receives the report Nelson Tasman Regional Landfill Business Unit - Annual Report 2019/20 (R20286) and its attachment (A2458270); and

2. Receives the Nelson Tasman Regional Landfill Business Unit - Annual Report 2019/20 (A2458270).

11. Nelson Tasman Regional Landfill Business Unit 2021/22 Business Plan 108 - 130

Document number R20283

Recommendation

That the Infrastructure Committee

1. Receives the report Nelson Tasman Regional Landfill Business Unit 2021/22 Business Plan (R20283) and its attachment (A2495934); and

2. Provides feedback to the General Manager of the Nelson Tasman Regional Landfill Business Unit on the draft Nelson Tasman Regional Landfill 2021/22 Business Plan (A2495934).

12. Nelson Tasman Regional Landfill Business Unit - 2021/31 Activity Management Plan 131 - 150

Document number R11479

Recommendation

That the Infrastructure Committee

1. Receives the report Nelson Tasman Regional Landfill Business Unit - 2021/31 Activity Management Plan (R11479) and its attachment (A2495930); and

2. Provides feedback to the General Manager of the Nelson Tasman Regional Landfill Business on the Draft 2021-2031 Nelson Tasman Regional Landfill Business Unit Activity Management Plan.

13. Draft 2021-31 Water Supply Activity Management Plan 151 - 193

Document number R21386

Recommendation

That the Infrastructure Committee

1. Receives the report Draft 2021-31 Water Supply Activity Management Plan (R21386) and its attachment (A2483711); and

2. Approves the Draft 2021-31 Water Supply Activity Management Plan (A2213226) as the version to inform the Long Term Plan 2021-31; and

3. Notes that the Draft 2021-31 Water Supply Activity Management Plan will be updated and, the final Activity Management Plan approved, after the adoption of the Long Term Plan 2021-31.

14. Draft 2021-31 Wastewater Activity Management Plan 194 - 236

Document number R15872

Recommendation

That the Infrastructure Committee

1. Receives the report Draft 2021-31 Wastewater Activity Management Plan (R15872) and its attachment (A2491606); and

2. Approves the Draft 2021-31 Wastewater Activity Management Plan (A2424421) as the version to inform the Long Term Plan 2021-31; and

3. Notes that the Draft 2021-31 Wastewater Activity Management Plan will be updated and, the final Activity Management Plan approved, after the adoption of the Long Term Plan 2021-2031.

15. Infrastructure Quarterly Report 237 - 304

Document number R20310

Recommendation

That the Infrastructure Committee

1. Receives the report Infrastructure Quarterly Report (R20310) and its attachments (A2411176, A2500601 and A2500539).

Recommendation to Council

That the Council

1. Approves additional unbudgeted capital funding of $320,000 for the Saxton Creek upgrade (Stage 3C) to allow the works between Champion Road and Main Road Stoke to be completed, noting that unbudgeted offsetting income of $113,000 was received from external parties in 2019/20.

Infrastructure Committee Minutes - 1 October 2020

Minutes of a meeting of the Infrastructure Committee

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

On Thursday 1 October 2020, commencing at 9.00a.m.

Present: Councillor B McGurk (Chairperson), Her Worship the Mayor R Reese, Councillors Y Bowater, T Brand, M Courtney, J Edgar, K Fulton, R O'Neill-Stevens (Deputy Chairperson), G Noonan and T Skinner

In Attendance: Group Manager Infrastructure (A Louverdis), Governance Adviser (J Brandt), Governance Support (K McLean) and Youth Councillors Nathan Dunn and Vienna van Heemswyck

Apologies: Councillors Lawrey, Rainey and Sanson

1. Apologies

Resolved IC/2020/048

That the Infrastructure Committee

1. Receives and accepts the apologies from Councillors Lawrey, Rainey and Sanson.

McGurk/Edgar 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

4. Railway Reserve Petition

Clare Scott, supported by Rebecca Glen, gave a presentation. The Powerpoint is attached (A2479295). Ms Scott tabled a petition to preserve the Railway Reserve (A2477269 and A2477292). She noted the petition had over 3,000 signatures in support of keeping the Railroad Reserve in its current form from Beatson Road to Victory, highlighting safe cycling and resilience as key benefits.

Attachments

1 A2479295 - Powerpoint Presentation Railway Reserve C Scott

2 A2477269 - Railway Reserve Petition part 1

3 A2477292 - Railway Reserve Petition part 2

Attendance: Her Worship the Mayor R Reese joined the meeting at 9.07a.m.

5. Confirmation of Minutes

5.1 26 August 2020

Document number M13077, agenda pages 6 - 10 refer.

Resolved IC/2020/049
	*That the Infrastructure Committee* *1. Confirms the minutes of the meeting of the Infrastructure Committee, held on 26 August 2020, as a true and correct record.*
Brand/Courtney Carried
Attendance: Councillor Fulton joined the meeting at 9.19a.m.

6 Chairperson's Report

Councillor McGurk tabled his report (A2478115) and highlighted some of the $21M worth of physical works currently underway or about to commence.
Resolved IC/2020/050
	*That the Infrastructure Committee* 2. Receives the report Chairperson’s Report (R20329) .
McGurk/O'Neill-Stevens Carried
Attachments 1 A2478115 - Infrastructure Committee Chairperson's Report 1Oct2020

7. Draft 2021-2051 Infrastructure Strategy

Document number R15936, agenda pages 11 - 24 refer.

Manager Capital Projects, Lois Plum, presented the report.

Resolved IC/2020/051

That the Infrastructure Committee

1. Receives the report Draft 2021-2051 Infrastructure Strategy (R15936) and its attachment (A2475059); and

2. Approves the Draft 2021-2051 Infrastructure Strategy (A2364365) as the version to inform the Long Term Plan 2021-31 and all Activity Management Plans; and

3. Notes that the Draft 2021-2051 Infrastructure Strategy will be updated following Council workshops in December 2020 and January 2021.

O'Neill-Stevens/Edgar Carried

8. Draft 2021-31 Stormwater and Flood Protection Activity Management Plan

Document number R16969, agenda pages 25 - 64 refer.

Attendance: Councillor Skinner joined the meeting at 9.39a.m.

Activity Engineer, Toby Kay, presented the report, supported by Manager Utilities, David Light. Mr Kay answered questions about future growth requirements and climate change mitigation measures.

Resolved IC/2020/052

That the Infrastructure Committee

1. Receives the report Draft 2021-31 Stormwater and Flood Protection Activity Management Plan (R16969) and its Attachment (A2453216); and

2. Approves the Draft Stormwater and Flood Protection Activity Management Plan 2021-31 (A2427836) as the version to inform the Long Term Plan 2021-31; and

3. Notes that the Draft Stormwater and Flood Protection Activity Management Plan 2021-31 will be updated and, the final Activity Management Plan approved, after the adoption of the Long Term Plan 2021-2031.

Edgar/Brand Carried

9. Draft Solid Waste Activity Management Plan 2021-31

Document number R14835, agenda pages 65 - 88 refer.

Manager Roading and Solid Waste, Marg Parfitt, presented the report, supported by Environmental Programmes Adviser, Karen Lee, and Activity and Operations Supervisor - Solid Waste, Terry Dwyer.

Mr Dwyer answered questions about recycling, waste disposal levies, street litter, and the emphasis on reduce, reuse and repair.

Attendance: Her Worship the Mayor Reese left the meeting from 10.18a.m. until 10.20a.m.

Resolved IC/2020/053

That the Infrastructure Committee

1. Receives the report Draft Solid Waste Activity Management Plan 2021-31 (R14835) and its attachment (A2462529); and

2. Approves the Draft Solid Waste Activity Management Plan 2021-31 (A2468611) as the version to inform the Long Term Plan 2021-31; and

3. Notes that the Draft Solid Waste Activity Management Plan 2021-31 will be updated and, the final Activity Management Plan approved, after the adoption of the Long Term Plan 2021-2031.

Edgar/Noonan Carried

The meeting was adjourned from 10.26a.m until 12.00p.m., during which time Her Worship the Mayor and Councillor McGurk left the meeting.
When the meeting reconvened Councillor O’Neill Stevens assumed the chair.

10. Hampden Street Closure - monitoring results and next steps

Document number R13687, agenda pages 89 - 138 refer.

Manager Roading and Solid Waste, Marg Parfitt presented the report, supported by Team Leader Transport Activity Management, Sue McAuley, and Transport Planner, Callum Inns.

Ms Parfitt answered questions about traffic calming measures on Locking Street, input from residents, and managing community expectations regarding innovative street measures.

Resolved IC/2020/054

That the Infrastructure Committee

1. Receives the report Hampden Street Closure - monitoring results and next steps (R13687) and its attachments (A2476129, A2466857, A2472740); and

2. Approves the continuation of the Hampden Street Closure trial for a period of approximately 12 months, and

3. Notes that any temporary trial traffic measures planned for Locking Street will be discussed with the residents and the Chair of Infrastructure Committee prior to implementation.

Fulton/Brand Carried

There being no further business the meeting ended at 12.29p.m.

Confirmed as a correct record of proceedings:

Chairperson Date

Item 8: Nelson Regional Sewerage Business Unit 2021/22 Business Plan

Infrastructure Committee

19 November 2020

REPORT R20284

Nelson Regional Sewerage Business Unit 2021/22 Business Plan

1. Purpose of Report

1.1 To receive, consider and provide feedback on the Draft 2021/22 Nelson Regional Sewerage Business Unit (NRSBU) Business Plan (Plan) to the NRSBU General Manager.

2. Recommendation

That the Infrastructure Committee

1. Receives the report Nelson Regional Sewerage Business Unit 2021/22 Business Plan (R20284) and its attachment (A2511235); and

2. Provides feedback to the General Manager of the Nelson Regional Sewerage Business Unit on the draft Nelson Regional Sewerage 2021/22 Business Plan (A2511235).

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 facilities 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 The five major customers are NCC, TDC, Turners and Growers, Alliance and Nelson Pine Industries.

3.3 The Memorandum of Understanding requires that the Draft Business Plan be presented annually to each Council by 31 December each year and allows for each Council to provide feedback on the draft Business Plan.

3.4 The draft 2020/21 Business Plan has been prepared by the General Manager and was presented to the Board, who resolved on 11 September 2020 as follows:

“Approves in principle the Draft Nelson Regional Sewerage Business Unit Draft Business Plan 2021/22 (A2458266) for presentation to the Nelson City Council and Tasman District Council, with delegation of all minor amendments to the Nelson Regional Sewerage Business Unit Chairperson; and

Recommendation to Nelson City Council and Tasman District Council

That the Nelson City Council and Tasman District Councils

Receive the Draft Nelson Regional Sewerage Business Unit Activity Management Plan 2021-2031 (A2458264) for review, and provide feedback to the Nelson Regional Sewerage Business Unit if required.

3.6 The NRSBU can only formally adopt the Draft Plan after receiving and considering comment from the two Councils and is then required to present the final Business Plan to the Councils by 20 March, for inclusion in each Council’s draft Long Term Plan.

4. Discussion

4.1 The Draft Business Plan is appended as Attachment 1 and the General Manager will be present at the meeting to answer any questions.

4.2 The NRSBU Draft Activity Management Plan (AMP) has been used as the basis for the Draft Business Plan. The Draft 2021/31 AMP is the subject of a separate report also on this agenda and should be read in conjunction with this report. Any comments provided to the General Manager on the Business Plan will equally apply to the draft AMP (and vice versa).

4.3 A long term objective includes the commitment to measure and reduce greenhouse gas emissions from the facility.

4.4 Key features of the draft Business Plan for 21/22 are discussed below:

4.4.1 Reduced owner’s distribution due to lower return on capital due to lower interest rates;

4.4.2 Increased operations and maintenance expenditure to address a backlog of work and the increased cost of the biosolids contract;

4.4.3 Increased depreciation costs;

4.4.4 Increased renewals on the inlet, aeration basin, clarifier, ponds, buildings and electrical work;

4.4.5 Capital upgrades of $5.45M comprising pipeline upgrades, works to align with the Bell Island and biosolids resource consent and desludging of the ponds.

5. Implication on NCC budgets

5.1 The Business Plan (and by association the AMP) shows significant increases in both capital and operational costs over the next three years and beyond, but noticeably in 2021/22.

5.2 From an NCC perspective, this trend from both an operational (opex) and capital budget perspective is not sustainable in the current post COVID-19 environment. The budgets need to be considered in terms of the overall NCC finances.

5.3 NCC have solicited opinion from TDC who share NCC’s concerns. TDC advise that the proposed budgets place pressure on both their rating and net debt cap, but are still working through the consolidated financial results of the regional Business Plans and AMP’s and that these are likely to be impacted by that review.

5.4 The Business Plan shows operating expenditure of $8.2 million in 2021/22 (including interest and depreciation) – an increase of $1.1 million (16%) compared to the 2020/21 costs presented to this Committee in November 2019, and referenced in Nelson City Council’s 2020/21 Annual Plan. Further year-on-year increases of 4% are included in years 2022/23 and 2023/24 of the Business Plan.

5.5 The nett impact on NCC numbers including share of costs, surplus and interest are provisionally estimated to be $611,000 in 2021/22. This is an increase on top of $651,000 seen over the last two years ($266k and $385k in 2019/20 and 2020/21 respectively).

5.6 Nelson in setting its budgets for the Long Term Plan also need to make several assumptions - each Council has to make its own assessment on assumptions and budget accordingly. In this matter one of the contributors, Turners and Growers (T&G), has given notice that their discharge will significantly reduce and that they may wish to withdraw from the scheme. They account for around 5% of the scheme. If this happens, this will result in increased costs, as a minimum, to the other users.

5.7 NCC has made the assessment that in the short term, up until 30 June 2021, T&G will continue to pay its fixed charge quota but will discharge less and so pay lower variable costs. From 1 July 2021, it is assumed that T&G will have sold its land along with the fixed quota share and variable discharge costs to the purchaser. This will mean there will be no impact on NCC’s costs, fixed or variable, from 1 July 2021.

5.8 The Business Plan shows that the capital ($5.45M) and renewals ($2.194M) budgets/programmes are very high and the General Manager has noted that delivering these will be challenging.

5.9 NCC officers have on several occasions advised the Board that the opex budgets are very high and with respect to the capital/renewals budget that staff well-being is paramount and that the works programmes needed to reflect this above delivering a programme that would most likely result in staff burn-out. Resources (within both councils, the NRSBU and external consultants) are finite. Nor is it easy to quickly recruit the right staff.

5.10 For this reason officers suggest that the Committee request the NRSBU General Manager to:

5.10.1 With respect to opex – prioritise and smooth out the budget increases over the next 5 years; and

5.10.2 With respect to the capital and renewals programmes - to prioritise and spread out the capital programme over the next 10 years to ensure an achievable work programme and to ease any burden on the debt caps of the two Council’s.

6. Options

6.1 The Committee has the option to provide feedback to the NRSBU on the draft Plan. Officers recommend that the committee provide feedback to the NRSBU General Manager as detailed in this report.

7. Conclusion

7.1 The NRSBU Draft 2021/22 Business Plan has been approved by the NRSBU Board and released to the two Councils for comment.

8. Next steps

8.1 The NRSBU Board will consider the comments from both NCC and TDC and refer the Business Plan back to the Council’s for consideration.

Author: Alec Louverdis, Group Manager Infrastructure

Attachments

Attachment 1: A2511235 - NRSBU Business Plan ⇩

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. A regional sewerage unit contributes to the following Local Government well-beings of social, economic, environmental and cultural.

2. Consistency with Community Outcomes and Council Policy

The Plan supports the delivery of the following Council Community Outcomes:

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

• Our communities are healthy, safe, inclusive and resilient

3. Risk

This report allows Council to comment on the NRSBU Business Plan and these comments will be considered by Board. The risk of not approving the Business Plan is that this could delay the NRSBU implementing its Business Plan for 2021/22 or council feeding the information into their LTP.

4. Financial impact

The NRSBU 2021/22 Business Plan reflects an increase in both opex and capital expenditure and this has a significant impact on NCC.

5. Degree of significance and level of engagement

The NRSBU 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. Climate Impact

A key feature of the draft NRSBU Business Plan is mitigating greenhouse gas emissions. This incudes and a commitment to measure and reduce greenhouse gas emissions from the facility.

7. Inclusion of Māori in the decision making process

No engagement with iwi has been undertaken in preparing this report, but iwi have representation on the Board.

8. Delegations

The Infrastructure Committee has the following delegations to consider the Nelson Regional Sewerage Business Plan:

Areas of responsibility:

· Wastewater, including Bell Island Wastewater Treatment Plant

Delegations:

· Developing, monitoring and reviewing strategies, policies and plans, with final versions to be recommended to Council for approval

Item 9: Nelson Regional Sewerage Business Unit - 2021/31 Activity Management Plan

Infrastructure Committee

19 November 2020

REPORT R11480

Nelson Regional Sewerage Business Unit - 2021/31 Activity Management Plan

Purpose of Report

1.1 To receive the Nelson Regional Sewerage Business Unit (NRSBU) Asset Management Plan (AMP) and provide any comments to the NRSBU General Manager.

2. Recommendation

That the Infrastructure Committee

1. Receives the report Nelson Regional Sewerage Business Unit - 2021/31 Activity Management Plan (R11480) and its attachment (A2496103); and

2. Provides feedback to the General Manager of the Nelson Regional Sewerage Business Unit on the Draft 2021 – 2031 Nelson Regional Sewerage Business Unit Activity Management Plan.

3. Background

3.1 The NRSBU was established by Nelson City Council (NCC) and Tasman District Council (TDC) to manage and operate regional sewage assets and is required under the agreed Memorandum of Understanding to submit the AMP to the two Councils for comment and then approval.

3.2 The NRSBU resolved on 11 September 2020 as follows:

Approves in principle the Draft Nelson Regional Sewerage Business Unit Activity Management Plan 2021-2031 (A2458264) for presentation to the Nelson City Council and Tasman District Council, with delegation of all minor amendments to the Nelson Regional Sewerage Business Unit Chairperson.

Recommendation to Nelson City Council and Tasman District Council

That the Nelson City Council and Tasman District Councils

Receive the Draft Nelson Regional Sewerage Business Unit Activity Management Plan 2021-2031 (A2458264) for review, and provide feedback to the Nelson Regional Sewerage Business Unit if required.

3.3 The NRSBU can only formally adopt the Draft AMP after receiving and considering comment from the two Councils and is then required to present the final AMP to the Councils by 20 March, for inclusion in each Council’s draft Long Term Plan.

4. Discussion

4.1 The AMP provides analyses of the assets and services delivered by the NRSBU to its customers, future demand and financial analysis of the NRSBU operations and outlines how risk is managed.

4.2 The AMP aligns with the Draft 2021/22 NRSBU Business Plan and includes the following details:

· Areas of focus for the activity during 2021-31;

· Levels of Service;

· The activity budgets for operations and maintenance, renewals and capital expenditure.

4.3 The AMP includes a significant amount of capital expenditure throughout the 10 year period and is required implement a number of improvements to the capacity of the regional pumping and pipework network specifically works to allow improved maintenance, resilience to avoid overflows from the network and additional redundancy, including:

4.3.1 acquiring land to allow adaption and managed retreat resulting from sea level rise;

4.3.2 treatment plant changes to increase capacity,

4.4 Operational costs to run the NRSBU will increase significantly over the next 10 year and includes:

4.4.1 Increase debt servicing costs;

4.4.2 Increased capacity associated with increase growth;

4.4.3 Increased monitoring and operational costs associated with the new resource consents.

4.5 The executive summary is appended as Attachment 1.

4.6 The AMP is a significant document and is available on the Council’s website, 2021 – 31 Activity Management Plans page (www.nelson.govt.nz/2021-31-activity-management-plans).

4.7 The Draft AMP has been used as the basis for the Draft Business Plan. The Draft NRSBU 2021/22 Business Plan is the subject of a separate report also on this agenda and should be read in conjunction with this report. Any comments provided to the General Manager on the Business Plan, as recommended in that report, will as a minimum equally apply to this draft AMP.

5. Options

5.1 Two options are considered – either provide comment or not to provide comment to the General Manager.

Option 1: Provide comment to the GMA
Advantages	· Gives effect to the MOU and demonstrates support for the Business Unit. · Supports Council in meeting the requirements of the LGA.
Risks and Disadvantages	· Nil
Option 2: Do not provide comment to the GMA
Advantages	· Nil
Risks and Disadvantages	· Not providing useful comment when comment is required does not demonstrate support for the Business Unit

6. Conclusion

6.1 The AMP has been approved by the NRSBU to be forwarded to the two Councils for comment.

7. Next Steps

7.1 The next steps would include providing the General Manager with any comments and for the NRSBU Board to approve the AMP to come back to the two Council’s.

Author: Alec Louverdis, Group Manager Infrastructure

Attachments

Attachment 1: A2496103 - NRSBU AMP Executive Summary ⇩

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. A regional sewerage unit contributes to the four Local Government well-beings of social, economic, environmental and cultural.

2. Consistency with Community Outcomes and Council Policy

The AMP supports the delivery of the following Council Community Outcomes:

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

· Our communities are healthy, safe, inclusive and resilient

3. Risk

There is no risk in this matter as all that is being represented is commentary on the AMP.

4. Financial impact

There are significant financial impacts on this Council on both opex and capital and officers recommend that the General Manager reconsider both.

5. Degree of significance and level of engagement

This matter is of high significance because the adoption of the LTP is a statutory requirement under the LGA Act 2002. Consultation with the community will occur with the public advertising of the draft LTP.

6. Climate Impact

A key feature of the NTRLBU AMP is mitigating greenhouse gas emissions. This includes an undertaking to measure and reduce greenhouse gas emissions from the facility.

7. Inclusion of Māori in the decision making process

No consultation with iwi was undertaken with respect to this report, but iwi have representation on the Board.

8. Delegations

The Infrastructure Committee has the following delegation:

Areas of Responsibility.

· Wastewater, including Bell Island Wastewater Treatment Plant

Delegations:

· Developing, monitoring and reviewing strategies, policies and plans, with final versions to be recommended to Council for approval

· Developing and approving draft Activity Management Plans in principle, including the Infrastructure Strategy, for inclusion in the draft Long Term Plan

Item 11: Nelson Tasman Regional Landfill Business Unit 2021/22 Business Plan

Infrastructure Committee

19 November 2020

REPORT R20283

Nelson Tasman Regional Landfill Business Unit 2021/22 Business Plan

1. Purpose of Report

1.1 To receive, consider and provide feedback on the Draft 2020/21 Nelson Tasman Regional Landfill Business Unit (NTRLBU) Business Plan (Plan) to the NTRLBU General Manager.

2. Recommendation

That the Infrastructure Committee

1. Receives the report Nelson Tasman Regional Landfill Business Unit 2021/22 Business Plan (R20283) and its attachment (A2495934); and

2. Provides feedback to the General Manager of the Nelson Tasman Regional Landfill Business Unit on the draft Nelson Tasman Regional Landfill 2021/22 Business Plan (A2495934).

3. Background

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

3.2 The approved Terms of Reference require that the Draft Business Plan be presented annually to each Council by 31 October each year and allow for each Council to provide feedback on the draft Business Plan.

3.3 The Draft 2020/21 Business Plan has been prepared by the NTRLBU General Manager and was presented to the NTRLBU Board who resolved on 11 September 2020 as follows:

“Approves the 2021/2022 Draft Nelson Tasman Regional Landfill Business Unit Business Plan (A2458269) for presentation to the Nelson City Council and Tasman District Council with delegation of all minor amendments to the Nelson Tasman Regional Landfill Business Unit Chairperson; and

Recommendation to Nelson City Council and Tasman District Council

That the Nelson City Council and Tasman District Councils

Receive the 2021/2022 Draft Nelson Tasman Regional Landfill Business Unit Business Plan (A2458269) for review, and provide feedback to the Nelson Tasman Regional Landfill Business Unit if required, by the 30 November 2020.”

3.4 The NTRLBU can only formally adopt the Draft 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 to inform each Council’s draft Long Term Plan.

4. Discussion

4.1 The Draft Business Plan is appended as Attachment 1 and the General Manager will be present at the meeting to answer any questions.

4.2 The Draft Activity Management Plan (AMP) has been used as the basis for the Draft Business Plan. The Draft 2021/31 AMP is the subject of a separate report also on this agenda and should be read in conjunction with this report. Any comments provided to the General Manager on the Business Plan will equally apply to the draft AMP (and vice versa).

4.3 A long-term objective includes greenhouse gas emissions with the undertaking to measure and reduce greenhouse gas emissions from the landfill.

4.4 Key features of the Draft Business Plan are discussed below:

Local Disposal Levy (LDL)

4.5 The LDL is a sum received by each of the two Councils from the NTRLBU, which each Council uses to cover its expenses on solid waste activities. In the case of NCC, this includes for recycling; greenwaste collection at the transfer station and transfer to Richmond; operating the Pascoe Street Transfer Station and transportation of waste to York Valley Landfill and waste minimisation initiatives.

4.6 For the Committee’s information, each Council submits, independently, to the General Manager their required LDL, after which the General Manager puts forward equal amounts for each Council for inclusion in the draft Business Plan – the amount being the lesser of the two requests from each Council.

4.7 The current 2020/21 financial year LDL is $2.4M. The proposed LDL in the draft 2021/22 Business Plan is $2.7M, this being the lesser of the two amounts requested. NCC requested $3M.

Landfill Charges

4.8 The NTRLBU has the authority to set fees and charges and these are proposed to increase by 20% for 2021/22. This increase is made up of:

4.8.1 Significant capital expenditure in the first two years of the ten year period required to implement a number of improvements to the gas management system so that NTRLBU can reduce its carbon emissions, and reduce the cost to the community of those carbon emissions.

4.6.2 Significant increases to the Government’s Waste Minimisation Levy; the increasing cost of carbon emissions under the NZ Emissions Trading Scheme and the increasing funding requested by NCC and TDC for the local disposal levy.

4.9 The contribution from these items to the overall increase is roughly as follows – 23% from capital expenditure, 13% from operating costs and carbon studies and 64% from increases in the Waste and LDL.

5. Implication on increasing landfill fees and charges

5.1 The increase of 20% ($29/tonne) is not insignificant and this follows on from an increase of 13% ($19/tonne) in 2019/20 and 5% ($7/tonne) in 2020/21.

5.2 All users have been advised, in line with current practices, of the proposed landfill increase. The General Manager will provide an update of the user’s feedback at the meeting.

5.3 Any increase in landfill charges will reflect the same increase at the Pascoe Street Transfer Station – ie fees will increase by 20%.

6. Options

6.1 The Committee has the option to provide feedback to the NTRLBU on the draft Plan.

7. Conclusion

7.1 The NTRLBU Draft 2021/22 Business Plan has been approved by the NTRLBU Board and released to the two Councils for comment.

8. Next Steps

8.1 The NTRLBU Board will consider the comments from both NCC and TDC and refer the Business Plan back to the Councils for consideration.

Author: Alec Louverdis, Group Manager Infrastructure

Attachments

Attachment 1: A2495934 - 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 the following Local Government wellbeings of social, economic and environmental.

2. Consistency with Community Outcomes and Council Policy

The Plan supports the delivery of the following Council Community Outcomes:

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

• Our communities are healthy, safe, inclusive and resilient

3. Risk

This report allows Council to comment on the NTRLBU Business Plan and these comments will be considered by the Board. The risk of not approving the Business Plan is that this could delay the NTRLBU implementing their Business Plan for 2021/22 or council feeding the information into their LTP.

4. Financial impact

The NTRLBU 2021/22 Business Plan reflects an increase in landfill fees and charges and this will be included in the LTP and will have the effect of increasing fees at the Pascoe Street Transfer station.

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. Climate Impact

A key feature of the NTRLBU Business Plan is mitigating greenhouse gas emissions. This includes a commitment to measure and reduce greenhouse gas emissions from the facility

7. Inclusion of Māori in the decision making process

No engagement with iwi has been undertaken in preparing this report, but iwi have representation on the Board.

8. Delegations

The Infrastructure Committee has the following delegations to consider the Nelson Tasman Regional Landfill Business Plan:

Areas of Responsibility:

· Regional landfill

Delegations:

· Developing, monitoring and reviewing strategies, policies and plans, with final versions to be recommended to Council for approval

Item 12: Nelson Tasman Regional Landfill Business Unit - 2021/31 Activity Management Plan

Infrastructure Committee

19 November 2020

REPORT R11479

Nelson Tasman Regional Landfill Business Unit - 2021/31 Activity Management Plan

1. Purpose of Report

1.1 To receive the Nelson Tasman Regional Landfill Business Unit (NTRLBU) Landfill Activity Management Plan (AMP) and provide any comments to the NTRLBU General Manager.

2. Recommendation

That the Infrastructure Committee

1. Receives the report Nelson Tasman Regional Landfill Business Unit - 2021/31 Activity Management Plan (R11479) and its attachment (A2495930); and

2. Provides feedback to the General Manager of the Nelson Tasman Regional Landfill Business on the Draft 2021-2031 Nelson Tasman Regional Landfill Business Unit Activity Management Plan.

3. Background

3.1 The NTRLBU was established by Nelson City Council (NCC) and Tasman District Council (TDC) to manage and operate regional landfill facilities and the Terms of Reference require the NTRLBU AMP to be submitted to the two Councils for comment and then approval.

3.2 The NTRLBU resolved on 11 September 2020 as follows:

Approves the Draft Nelson Tasman Regional Landfill Activity Management Plan 2021-2031 (A2458268) for presentation to the Nelson City Council and Tasman District Council with delegation of all minor amendments to the Nelson Tasman Regional Landfill Business Unit Chairperson”.

Recommendation to Nelson City Council and Tasman District Council

That the Nelson City Council and Tasman District Councils:

Receive the Draft Nelson Tasman Regional Landfill Business Unit Activity Management Plan 2021-2031 (A2458268) for review, and provide feedback to the Nelson Tasman Regional Landfill Business Unit if required.

3.3 The NTRLBU can only formally adopt the Draft AMP after receiving and considering comment from the two Councils and is then required to present the final AMP to the Councils by 20 March, for inclusion in each Council’s draft Long Term Plan

4. Discussion

4.1 The AMP provides analysis of the assets and services delivered by the NTRLBU to its customers, future demand and financial analysis of the NTRLBU operations and outlines how risk is managed.

4.2 The AMP aligns with the Draft 2021/22 NTRLBU Business Plan and includes the following details:

· Areas of focus for the activity during 2021-31;

· Levels of Service;

· The activity budgets for operations and maintenance, renewals and capital expenditure.

4.3 The AMP includes a significant amount of capital expenditure in the first two years of the ten year period. This capital expenditure is required to implement a number of improvements to the gas management system so that NTRLBU can reduce its carbon emissions, and reduce the cost to the community of those carbon emissions.

4.4 The AMP also includes an allowance for the construction of a buttress at the toe of York Valley Gully 1 to allow further waste to be accepted and to allow the life of the landfill to be extended.

4.5 The AMP allows for consent application for a new landfill in the early to middle years of the ten year period, with allowance being made for the construction of a new landfill facility toward the end of the period.

4.6 The costs to run the NTRLBU will increase significantly over the next four years. These cost increases are largely related to activities outside NTRLBU control, including significant increases to the Waste Minimisation Levy; the increasing cost of carbon emissions under the NZ Emissions Trading Scheme and the increasing funding requested by NCC and TDC for the local disposal levy.

4.7 The executive summary is appended as Attachment 1.

4.8 The AMP is a significant document and is available on the Council’s website, 2021-31 Activity Management Plans page (www.nelson.govt.nz/2021-31-activity-management-plans).

4.9 The Draft AMP has been used as the basis for the Draft Business Plan. The Draft NTRLBU 2021/22 Business Plan is the subject of a separate report also on this agenda and should be read in conjunction with this report. Any comments provided to the General Manager on the Business Plan, as recommended in that report, will as a minimum equally apply to this draft AMP.

5. NCC comment

5.1 The AMP makes mention that under section (ix) Asset Management Practices that over the next 10 years that a significant amount of capital development will be required on an ongoing basis and that the intention of the Business Unit is to take on additional staff to undertake these activities.

5.2 Officers do not support the automatic increase of staff within the business unit to deliver an increased capital/renewals programme as this decision cannot be considered in isolation and has to be undertaken in the context of both Council’s work programmes. There are currently options within NCC to provide resource assistance to achieve the work programme that need to be explored. It is proposed that resourcing for the capital works programme will be decided nearer the time after discussions between the two Chief Executives of NCC and TDC.

6. Options

6.1 Two options are considered – either provide comment or not provide comment to the General Manager.

Option 1: Provide comment to the GM
Advantages	· Gives effect to the Deed of Agreement and demonstrates support for the Business Unit. · Supports Council in meeting the requirements of the LGA.
Risks and Disadvantages	· Nil
Option 2: Do not provide comment to the GM
Advantages	· Nil
Risks and Disadvantages	· Not providing useful comment when comment is required does not demonstrate support for the Business Unit

7. Conclusion

7.1 The AMP has been approved by the NTRLBU to be forwarded to the two Councils for comment.

8. Next Steps

8.1 The next steps would include providing the General Manager with any comments and for the NTRLBU Board to approve the AMP to come back to the two Council’s.

Author: Alec Louverdis, Group Manager Infrastructure

Attachments

Attachment 1: A2495930 - NTRLBU AMP Executive Summary ⇩

Important considerations for decision making

1. Fit with Purpose of Local Government

2. Consistency with Community Outcomes and Council Policy

The AMP supports the delivery of the following Council Community Outcomes:

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

· Our communities are healthy, safe, inclusive and resilient

3. Risk

There is no risk in this matter as all that is being requested is commentary on the AMP.

4. Financial impact

As a result of this AMP the fees at the NCC Transfer Station will increase.

5. Degree of significance and level of engagement

6. Climate Impact

A key feature of the NTRLBU AMP is mitigating greenhouse gas emissions. This includes an undertaking to measure and reduce greenhouse gas emissions from the facility

7. Inclusion of Māori in the decision making process

No consultation with iwi was undertaken with respect to this report, but iwi have representation on the Board.

8. Delegations

The Infrastructure Committee has the following delegation:

Areas of Responsibility.

· Regional landfill

Delegations:

· Developing, monitoring and reviewing strategies, policies and plans, with final versions to be recommended to Council for approval

· Developing and approving draft Activity Management Plans in principle, including the Infrastructure Strategy, for inclusion in the draft Long Term Plan

Item 13: Draft 2021-31 Water Supply Activity Management Plan

Infrastructure Committee

19 November 2020

REPORT R21386

Draft 2021-31 Water Supply Activity Management Plan

1. Purpose of Report

1.1 To approve the Draft 2021-31 Water Supply Activity Management Plan (AMP) as the version to inform the Long Term Plan 2021-31 (LTP).

2. Recommendation

That the Infrastructure Committee

1. Receives the report Draft 2021-31 Water Supply Activity Management Plan (R21386) and its attachment (A2483711); and

2. Approves the Draft 2021-31 Water Supply Activity Management Plan (A2213226) as the version to inform the Long Term Plan 2021-31; and

3. Notes that the Draft 2021-31 Water Supply Activity Management Plan will be updated and, the final Activity Management Plan approved, after the adoption of the Long Term Plan 2021-31.

3. Background

3.1 Draft Activity Management Plans (AMPs) are prepared for the approval of the Committee to inform the development of LTP’s. This Draft AMP will inform the development of the 2021-31 LTP.

3.2 Following consultation on, and adoption of the LTP, the AMPs will be updated to align with the adopted LTP. The final updated AMPs will be brought back to Council early in 2021/22 for adoption.

3.3 The Draft AMP takes account of previous Council and Committee resolutions and feedback at workshops on the proposed levels of service and key issues. Officers have undertaken a high level review of budgets across Council activities however, the AMPs are at different stages of development and amendments may be required to the draft Plan once all AMPs have been received by their respective committees and, the cumulative effect of the AMPs has been considered at the workshops in December 2020 and January 2021. Officers will update the Plan after these workshops. The final AMP will be brought to the Committee for approval after it has been updated to include decisions made during the LTP process.

4. Discussion

4.1 This Draft AMP sets out the background to Council’s Water Supply Activity and includes details of the following:

· Key issues and areas of focus for the activity during 2021-31.

· Levels of Service.

· The activity budgets for operations & maintenance and capital expenditure (including renewals, growth and level of service upgrade projects).

4.2 Workshops were held with Council on 10 December 2019 and another on 20 August 2020 as part of the Infrastructure Strategy, to confirm priorities for 2021-31 and seek direction from Council on any changes or additional priorities.

4.3 The following items are the key outcomes from these workshops:

· Water Treatment Plant coagulant chemical: Councillors are aware of the use of Ferric Chloride at the Water Treatment Plant and the opportunity to change to a more commonly used chemical Aluminium Chlorohydrate. Councillors confirmed that further work needs to be done examining any impacts that changing the coagulant chemical may have on the water network and customers before any changes are considered.

· Three waters review, Water Services Regulator Bill: Council is aware of central government proposals to create a new regulator for water suppliers and to explore options for the more efficient delivery of water supply services nationally.

· Water pipe renewals: Council was supportive of the concept of bringing forward pipe renewals to smooth the renewals profile and reduce the bow wave of renewals projected from the 2030’s.

· Issues and Priorities for the Activity: No additional issues or priorities were proposed for the activity.

4.4 The Executive Summary of the Draft AMP is appended as Attachment 1.

4.5 The full Draft 2021-31 Water Supply AMP (A2213226) is a significant document and is available on the Council’s website, 2021-31 Activity Management Plans page (www.nelson.govt.nz/2021-31-activity-management-plans).

5. Options

5.1 The Committee has two options - to either approve the Draft AMP, or to not approve the Draft AMP.

Option 1: (Recommended): Approve the Draft 2021-31 Water Supply AMP
Advantages	· Meet the requirements of the Local Government Act 2002. · Reflects the input of elected members during the December 2019 workshop.
Risks and Disadvantages	· Nil
Option 2: Do not approve the Draft 2021-31 Water Supply AMP
Advantages	· Nil
Risks and Disadvantages	· Fail to meet requirements of Local Government Act 2002

6. Conclusion

6.1 The Draft AMP has been prepared to inform the LTP and will support Council in meeting its obligations under Section 93 and Schedule 10 of the Local Government Act 2002.

Author: Phil Ruffell, Senior Activity Engineer - Water Supply

Attachments

Attachment 1: A2483711 Executive Summary - Draft 2021-31 Water Supply Activity Management Plan ⇩

Important considerations for decision making

1. Fit with Purpose of Local Government

The Draft Water Supply AMP supports the social, economic and environmental wellbeing of the Nelson community by putting in place the planning for good quality local infrastructure that is efficient, effective, and appropriate to present and anticipated future circumstances as defined under the Local Government Act 2002.

2. Consistency with Community Outcomes and Council Policy

The Water Supply Activity supports the following Community Outcomes:

· Our unique natural environment is healthy and protected.

· Our urban and rural environments are people friendly, well planned and sustainably managed.

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

· Our communities are healthy, safe, inclusive and resilient.

· Our region is supported by an innovative and sustainable economy.

3. Risk

Not adopting the Draft AMP will leave Council without a document to support the goal of developing and adopting the LTP.

4. Financial impact

There are no direct funding implications from the recommendation. The AMP guides the funding in the proposed LTP and will be subject to a consultation process with the community.

5. Degree of significance and level of engagement

This matter is of high significance because the adoption of a LTP is an statutory requirement under the Local Government Act 2002. Therefore consultation with the community will occur with the public advertising of the draft LTP and calling for submissions.

6. Climate Impact

The Draft AMP considers the potential impacts and risks that climate change presents to the city, particularly in relation to the future water supply activity. This has been incorporated into the Draft AMP through identifying climate change as a key issue with a focus on developing various strategies to inform mitigation and adaptation options for the future. As the AMP supports the proposed LTP this emphasis will transfer into that document and be subject to public scrutiny and submissions.

7. Inclusion of Māori in the decision making process

Iwi feedback is being sought on the draft AMP and any matters that require additional consideration will be covered at the December LTP workshop.

· Delegations

The Infrastructure Committee has the power to consider and approve Activity Management Plans

Areas of Responsibility:

· Water Supply

Delegations:

· Developing, monitoring and reviewing strategies, policies and plans, with final versions to be recommended to Council for approval

· Developing and approving draft Activity Management Plans in principle, including the Infrastructure Strategy, for inclusion in the draft Long Term Plan

Item 14: Draft 2021-31 Wastewater Activity Management Plan

Infrastructure Committee

19 November 2020

REPORT R15872

Draft 2021-31 Wastewater Activity Management Plan

1. Purpose of Report

1.1 To approve the Draft 2021-31 Wastewater Activity Management Plan as the version to inform the Long Term Plan 2021-31 (LTP).

2. Recommendation

That the Infrastructure Committee

1. Receives the report Draft 2021-31 Wastewater Activity Management Plan (R15872) and its attachment (A2491606); and

2. Approves the Draft 2021-31 Wastewater Activity Management Plan (A2424421) as the version to inform the Long Term Plan 2021-31; and

3. Notes that the Draft 2021-31 Wastewater Activity Management Plan will be updated and, the final Activity Management Plan approved, after the adoption of the Long Term Plan 2021-2031.

3. Background

3.1 Draft Activity Management Plans (AMPs) are prepared for the approval of the Committee to inform the development of LTP’s. This Draft AMP will inform the development of the 2021-31 LTP.

3.2 Following consultation on, and adoption of the LTP, the AMPs will be updated to align with the adopted LTP. The final updated AMPs will be brought back to Council early in 2021/22 for adoption.

4. Discussion

4.1 This Draft AMP sets out the background to Council’s Wastewater Activity and includes details of the following:

· Key issues and areas of focus for the activities during 2021-31.

· Levels of Service.

· The activity budgets for operations & maintenance and capital expenditure (including renewals, growth and level of service upgrade projects).

4.2 Workshops were held with Council on 03 March 2020, and another on 20 August 2020 as part of the Infrastructure Strategy, to confirm priorities for 2021-31 and seek direction from Council on any changes or additional priorities.

4.3 The following items are the key outcomes from these workshops:

· Wastewater Treatment Plant & Atawhai Rising Main: Council was supportive with the assumption that the Nelson Wastewater Treatment Plant will be located in the north Atawhai area for the foreseeable future, therefore the renewal of the Atawhai Rising Main will continue as programmed.

· Wastewater pipe renewals: Council was supportive of the concept of bringing forward pipe renewals to smooth the renewals profile and reduce the bow wave of renewals projected from the 2040’s.

· Issues and Priorities for the Activity: No additional issues or priorities were proposed for the activity.

· Levels of Service: No change to the current levels of service was agreed.

4.4 The Executive Summary for the Draft AMP is appended as Attachment 1.

4.5 The full Draft 2021-31 Wastewater AMP (A2424421) is a significant document and is available on the Council’s website, 2021-31 Activity Management Plans page (www.nelson.govt.nz/2021-31-activity-management-plans).

5. Options

5.1 The Committee has two options – to either approve the Draft AMP, or to not approve the Draft AMP.

Option 1 (Recommended): Approve the Draft 2021-31 Wastewater AMP
Advantages	· Meet the requirements of the Local Government Act 2002. · Reflects the input of elected members during the March 2020 workshop.
Risks and Disadvantages	· Nil
Option 2: Do not approve the Draft 2021-31 Wastewater AMP
Advantages	· Nil
Risks and Disadvantages	· Fail to meet requirements of Local Government Act 2002.

6. Conclusion

6.1 The Draft AMP has been prepared to inform the LTP and will support Council in meeting its obligations under Section 93 and Schedule 10 of the Local Government Act 2002.

Author: Warren Biggs, Activity Engineer - Wastewater

Attachments

Attachment 1: A2491606 Executive Summary - Draft 2021-31 Wastewater Activity Management Plan ⇩

Important considerations for decision making

1. Fit with Purpose of Local Government

The Draft Wastewater AMP supports the social, economic and environmental wellbeing of the Nelson community by putting in place the planning for good quality local infrastructure that is efficient, effective, and appropriate to present and anticipated future circumstances as defined under the Local Government Act 2002.

2. Consistency with Community Outcomes and Council Policy

The Wastewater Activity supports the following Community Outcomes:

· Our unique natural environment is healthy and protected.

· Our urban and rural environments are people friendly, well planned and sustainably managed.

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

· Our communities are healthy, safe, inclusive and resilient.

· Our region is supported by an innovative and sustainable economy.

3. Risk

Not adopting the Draft AMP will leave Council without a document to support the goal of developing and adopting the LTP.

4. Financial impact

There are no direct funding implications from the recommendation. The AMP guides the funding in the proposed LTP and will be subject to a consultation process with the community.

5. Degree of significance and level of engagement

This matter is of high significance because the adoption of an LTP is a statutory requirement under the Local Government Act 2002. Therefore consultation with the community will occur with the public advertising of the draft LTP and calling for submissions.

6. Climate Impact

The Draft AMP considers the potential impacts and risks that climate change presents to the city, particularly in relation to the future wastewater activity. This has been incorporated into the Draft AMP through identifying climate change as a key issue with a focus on developing various strategies to inform mitigation and adaptation options for the future. As the AMP supports the proposed LTP, this emphasis will transfer into that document and be subject to public scrutiny and submissions.

7. Inclusion of Māori in the decision making process

Iwi feedback is being sought on the draft AMP and any matters that require additional consideration will be covered at the December LTP workshop.

· Delegations

The Infrastructure Committee has the power to consider and approve Activity Management Plans.

Areas of Responsibility:

· Wastewater Activity

Delegations:

· Developing, monitoring and reviewing strategies, policies and plans, with final versions to be recommended to Council for approval

· Developing and approving draft Activity Management Plans in principle, including the Infrastructure Strategy, for inclusion in the draft Long Term Plan

Item 15: Infrastructure Quarterly Report

Infrastructure Committee

19 November 2020

REPORT R20310

Infrastructure Quarterly Report

1. Purpose of Report

1.1 To inform the Committee of the financial and non-financial results for the first quarter of 2020/2021 for the activities under its delegated authority.

2. Recommendation

That the Infrastructure Committee

1. Receives the report Infrastructure Quarterly Report (R20310) and its attachments (A2411176, A2500601 and A2500539).

Recommendation to Council

That the Council

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 2020 to 30 September 2020) 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 2020/21 annual 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 37 projects that fall under the Infrastructure Committee. These have been selected if their budget is at least $250,000 for 2020/21, are multi-year projects with a budget over $1 Million, or have been assessed to be of particular interest to the Committee. The Provincial Growth Fund (PGF) funded projects have also been added as will any other projects that will be receiving external funding.

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 (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.

4. COVID-19 cost impacts

4.1 The COVID-19 lockdown lasted for Alert Levels 4 and 3 (total of seven weeks from 25 March to 13 May 2020). Costs associated with the lockdown for the previous quarter based on the information to hand at that time have been claimed and additional funding was approved for these costs in the last quarterly report.

4.2 Officers noted in the last quarterly report that with projects moving into winter there was potential for further additional costs for projects (that have been delayed by COVID19) as a result of wet weather.

4.3 Ongoing issues have resulted in further costs during this quarter resulting in additional costs against project budgets that were never budgeted or expected – and are outside any contingency funding within the projects.

4.4 Additional costs for Saxton Creek Stage 3 have been incurred by the contractor from winter weather (as a result of COVID 19) affecting their ability to work in the creek which has resulted in a longer duration onsite. Refer to commentary under item 8 for further information.

5. Tenders Awarded

5.1 Tenders above $300,000 awarded under delegated authority in the last quarter are listed below:

Project Name	Awarded to	Tender Price
Gracefield Sewer Diversion	Donaldson Civil	$1,360,000
Awatea – Beach Road Storage Facility	Ching Contracting	$720,000
Anzac to Maitai Shared path	Downer	$863,653
Main Road Stoke Cycleway	Asphalt & Construction	$625,731
Hardy-Vanguard Street watermain	Ching Contracting	$1,112,485
Kauri Street watermain & stormwater renewal	Tasman Civil	$385,659
Mount Street	Ching Contracting	$489,508

5.2 Tenders Subcommittee 19 August 2020

Contract Name	Awarded to	Tender Price
Transfer Station Hoppers & Refuse/Greenwaste Cartage	Fulton Hogan	$420,000 p.a

6. Financial Results

Profit and Loss by Activity

Notes

· The “Total Operating Budget” differs from the “Total Annual Plan Budget” in that it includes carry forwards and reallocations made after the final approval of the Annual Plan.

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

· Programmed Expenditure is planned work, 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.

Operating Revenue (excluding rates)

Operating Expenditure (excluding internal interest)

Terms Used

Ahead/behind – this indicates that the variance is due to timing, or that it is not yet known whether the variance will continue for the full year. This should be clarified in the commentary.

Over/under – this indicates that a budget has been overspent or underspent, and that it is likely there is an actual cost saving or overrun. This should be made clear by the commentary.

Activity income and expenses have been reviewed in detail and commentary has been included below for variances between actuals and budget of greater than or less than $50,000.

6.1 Transport

6.1.1 Subsidised Roading expenditure is behind budget by $156,000 due to maintenance expenses in relation to Sealed Pavement Maintenance ($27,000), Bridge Maintenance ($25,000), Structures Inspections ($25,000), Travel Demand Management ($35,000), Road Marking ($17,000) and Condition Inspections and data collection ($14,000) being behind budget in Q1 but expected to be on budget by the end of the year.

6.1.2 Parking and CBD Enhancement expenditure is behind budget by $97,000 due to rates being less than budgeted by $51,000. This was due to a budgeting error that will be corrected. CBD development is currently under budget by $20,000 but is expected to be spent by the end of the year. Maintenance of Street Trees is behind budget ($12,000) but the remainder of the budget is expected to be spent in the winter months.

6.1.3 Public Transport income is over budget by $192,000 due to higher than budgeted subsidised income from NZTA of $151,000 mainly due to receiving an annual lump sum of $159,000 in relation to SuperGold Card expenses during Q1 when the budget is phased evenly across the year.

6.2 Wastewater

6.2.1 Wastewater income is behind budget by $243,000 due to a phasing misalignment in relation to NRSBU investment return, it is on track to be on budget for the year.

6.3 Water Supply

6.3.1 Water Supply income is ahead of budget by $343,000 due to incorrect budget phasing for Commercial Water by Meter, but is in line with the same period in 2019/20.

6.3.2 Water Supply expenditure is ahead of budget by $65,000 mainly due to depreciation expenditure being over budget by $147,000. Depreciation budget was based on the value of assets at the start of 2019/20 but actual depreciation is based on the revaluations completed on 30 June 2020 which saw depreciated replacement value of water supply assets increase by an average of 13% when compared with values at 1 July 2019.

6.4 Stormwater

6.4.1 Stormwater Expenditure is ahead of budget by $130,000 mainly due to depreciation expenditure being over budget by $175,000. Depreciation budget was based on the value of assets at the start of 2019/20 but actual depreciation is based on the revaluations completed on 30 June 2020 which saw depreciated replacement value of stormwater assets increase by an average of 29% when compared with values at 1 July 2019.

7. Commentary on Capital Projects

7.1 All infrastructure capital projects with a budget greater than $250,000 in this financial year or have an overall project budget of over 1M across the life of the project have a project sheet in Attachment 1 of this report.

7.2 The Gracefield Sewer Diversion has commenced on site one year ahead of original programme.

7.3 Saxton Creek Upgrade stage 4 (Main Road Stoke to Sea), the last stage of the Saxton Creek upgrade was successful in being awarded $7.5M from the COVID Response and Recovery Fund (CRRF). The required contracts/reporting requirements and other documentation have been identified through this quarter. Land owner agreement in principle has been given to allow works to be undertaken on the preferred alignment. Resource consent documentation is underway and iwi engagement is progressing in a positive manner. Delivery budgets will be updated in the draft Long Term Plan.

7.4 The Anzac to Maitai Shared pathway improvements construction at the corner of Halifax and Rutherford Street’s has commenced.

7.5 The Awatea Pump Station – Beach Road Storage construction has commenced. The work has been delayed due to very solid ground conditions but is still currently within budget. The team also reduced the hours of work following noise complaints from local motels.

7.6 The Neale Park Pump Station project has a confirmed $75,000 saving and this has been transferred to the Awatea Pump Station/Beach Road Storage unit project to cover any costs that may result from the delays as noted above.

7.7 Awatea Pump station design has continued during the period, with peer reviews being undertaken. This review has noted a high level of complexity and as a result the estimated budget has increased by $2M bringing total cost to $10M. The estimated budget and budget sources is summarised below.

Awatea/Beach Road	Amount
Revised estimate	$10,000,000
Funding Split
Three Waters Stimulus – Awatea PS	$3,538,458
Three Waters Stimulus – Beach Road Wastewater Storage	$ 300,000
NCC funded - Awatea PS & Beach Road Storage Tank (20/21 & 21/22)	$6,161,542
Total	$10,000,000

7.8 The pedestrian refuge on Franklyn Street was completed.

7.9 The Wastewater Model Calibration project has had some delays due to the Auckland COVID-19 lockdown. This has had a knock-on effect regarding when the contractor can start the flow monitoring, as a result it shifts the monitoring into the summer/dryer months which is not ideal for data collection. The flow monitoring will now start in April 2021 and should still allow the works to be completed in this financial year, but there is a risk that it might push into the next financial year.

7.10 Construction is underway on the Bisley Avenue stormwater stage 1 project in conjunction with the upgrade of a private retaining wall funded by the landowner.

7.11 Seafield Terrace works has been awarded with work planned to commence in November.

7.12 Washington Valley Stormwater project requires an increase in funding to continue activities in this financial year (potholing and completion of design). Genuine savings from the stormwater activity have been identified from two projects that have been reallocated to the project:

7.12.1 $48,000 from Dodson Valley Stormwater upgrade – recent hydraulic modelling results show that the local infrastructure has sufficient capacity. A targeted survey with local residents identified no significant issues.

7.12.2 $51,500 from Tosswill to Tahuna Stormwater upgrade – final contractor pricing came in below estimates resulting in savings.

8. Saxton Creek Upgrade – stage 3

8.1 The upgrade of Saxton Creek (Champion Road to sea) has been a priority following the 2013 extreme rainfall event that caused severe flooding in the area. The portion between Champion Road and Main Road Stoke was awarded in 2015 to Downer, with the works to be undertaken in three separate stages with the last stage broken up into sub-phases.

8.2 Stages 1, 2 and most recently stage 3A and 3B (including the new bridge serving the new Wahanga development) are now complete.

8.3 The last phase of stage three, namely 3C (Ngāti Rārua St to Hill St), is now ready to commence. The budget is summarised below and shows that there is a budget shortfall to continue this last critical stage and additional budget is required.

Description	Amount	Comments
Annual Plan budget	$2,350,000
Approved carry-forward	$ 209,000
Covid 19 Lockdown Period Funds	$ 97,617	Requested and approved in June Q4 19/20 FY Quarterly Report
Other funding sources	$ 191,000	Revenue from Wakatu Incorporated – NCC undertook power ducting and street services for their new subdivision. Additional funds from Water activity for a change in scope to increase pipe size, and additional funds from Parks & Reserves to achieve a higher specification of footpath design.
Available budget	$2,847,617
Less Stage 3A & 3B	$1,690,000	Both stages now complete
Sub-total Remaining Budget	$1,157,617
Revised estimate to complete Stage 3C	$1,590,000	See notes below (includes retaining a 14% contingency)
Sub-total	$ -431,383	Shortfall
Revenue to be offset against the project	$113,000	Contribution from two landowners towards the bridge costs that was constructed wider at their request
Shortfall	$ -318,383	$320,000

8.4 Stage 3 has had additional unexpected budget pressures including revised pricing from the contractor post COVID19, additional work to cater for Summerset development retaining walls (as a result of other local developments utilising the empty land to dump their fill resulting in height changes to the original design which has in turn led to size and complexity changes to the retaining walls), increased plantings required under the resource consent, additional work to cater for the Wahanga subdivision off Ngāti Rārua Street, additional costs associated with easements, additional impacts of winter weather which has affected the contractor’s ability to work within the creek and additional time claims including additional professional services costs.

8.5 As noted previously work on Saxton Creek Upgrade stage 4 (Main Road Stoke to Sea) the last stage is well advanced with Council receiving $7.5M from the COVID Response and Recovery Fund (CRRF).

8.6 The $113,000 represents income received from external parties and represents the extra–over cost for a wider bridge requested by those parties.

8.7 Additional funding of $320,000 is required to complete Stage 3C in 2020/2021.

9. River Flood Modelling - Inventory of Urban Streams

9.1 Work on river flood modelling is well underway as part of infrastructural planning and the Nelson Plan. Initial assumptions of tidal level and flood modelling showed an over estimation of the combined return period. Following a detailed review (including statistical modelling), new tidal parameters have been determined that are realistic, practical and robust. Work is now underway to update and peer review the river flood models (seven in total), to reflect the latest parameters and ensure public engagement on the flood hazard maps as part of the Nelson Plan can take place in early 2021.

9.2 This work is managed under the Inventory of Urban Streams project within the Flood Protection Activity. The budget for 2020/21 is $104,000 and the cost of re-running and peer reviewing the flood models to incorporate the new parameters is estimated to be an additional $190,000. The additional $190,000 will be addressed through underspends within the Flood Protection Activity, as detailed in the table below.

	20/21 Annual Plan Budget	20/21 Forecast	Underspend/ Increase	20/21 Amended Budget
Inventory of Urban Streams	$104,000	$294,000	+$190,000	$294,000
Brook Stream Fish Passage (see item 9.3)	$167,000	$67,000	-$100,000	$67,000
Orphanage Stream - bunding Saxton Road East (see item 9.4)	$970,000	$880,000	-$90,000	$880,000
Total	$1,241,000	$1,241,000	$0	$1,241,000

9.3 The original scope for the Brook Stream Fish Passage project was to monitor and construct additional fish passage improvements. However due to insufficient rainfall events in 2019/20, the monitoring period has been extended for a further eight months. Construction of the fish passage improvements will now be considered as part of the 2021-31 Long Term Plan.

9.4 Suffolk Road culvert improvements, part of the Orphanage Stream Flood mitigation project, has been delayed due to ongoing land negotiations. Land acquisition may be required and it is unlikely the budget of $200,000 will be spent this financial year, therefore $90,000 has been reallocated to Inventory of Urban Streams.

10. Provincial Growth Funded Projects

10.1 The raised table at Waikare Street and Beach Road is complete.

10.2 The Maitai path improvements works are complete.

10.3 Eves Valley Planting – this work has commenced with further work planned to be completed April/May 2021.

10.4 York Valley Landfill roading resurfacing – Resurfacing has commenced, with final activities to be completed in February 2021.

11. Status Report Update

11.1 Sand Bags

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

11.2 Nelson Tasman Joint Regional Landfill (NTRLBU)

The Committee has requested further work on the matter regarding receiving material from Hazardous Activities and Industries List sites (HAIL). This is on the NTRLBU General Manager’s work programme and he is working towards gathering the necessary information to present back to the NTRLBU Board and then back to the Committee.

12. Commentary on operational projects

12.1 There is a detailed status report for two operational project (Inflow and Infiltration and Water Loss Reduction) 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.

12.2 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.

12.3 The Annual Plan has approved an organic kitchen waste trial for this financial year using budget from the Climate Change reserve. Officers have completed procurement and Community Compost will undertake the collection and processing work. Letters have gone out inviting a random selection of households on an agreed representative route to participate. Due to summer holidays it is now planned to commence collection in early February 2021.

12.4 Waste minimisation: This quarter saw a focus on rebranding waste minimisation through the new Rethink Waste campaign. Activities being developed include a focus on Council walking the talk with work started with Council facilities and internal staff engagement, preparation for the launch of waste minimisation grants in Q2 and the preparation of a Rethink Waste newsletter linked to community engagement through Shape Nelson. . A focus is also being maintained on changes to kerbside recycling, with targeted messaging to the community depending on the results of kerbside audits. A series of seasonal workshops and activities will be taking place under the Rethink Waste Spring Programme to engage our community in waste minimisation. Council walking the talk also includes initial investigations being done by Capital Projects to consider how waste minimisation can be built effectively into project delivery. Other projects underway include the launch of the Compost Courier e-bike initiative funded through the Climate Change Reserve Fund to promote composting for the management of food waste from retailers, and the updating and promotion of the opshop map to support reduction of textile waste

12.5 On 1 October the kiosk services at the Nelson Waste Recovery Centre came back under NCC control from Nelmac. The NCC customer service team staff the kiosk with the wider Waste Recovery Centre operations managed by the Infrastructure team. Long serving staff member Mr Peter Hemi who had worked at the kiosk for NCC and later Nelmac has retired and was recognised in a ceremony at Council on 1 October.

12.6 NCC has been successful in its funding application to Waka Kotahi’s NZTA Innovating Streets fund for $852,000 (being 90% of the projected cost). NCC is required to contribute $95,000 towards this and this will be funded as shown below. Work is expected to start in late November using Council’s roading maintenance contractor Higgins with completion by June 2021.

Source	Budget to be reallocated
Preliminary Capital Growth projects	$69,000	On hold pending Future Access Study
Transport AMP	$26,000
	$95,000

12.7 Changes to the speed limit bylaw were recommended by the Infrastructure Committee on 30 September pending Council approval on 12 November. Once approved the first phase of changes will occur in the inner city from 1 December, followed by further changes in home zones and Selwyn Place from 1 May 2021.

12.8 Work is currently underway on the development of a Speed Management Plan to identify a framework for speed limits throughout the City. A draft is expected to be available by mid-2021.

12.9 As part of this speed management work the Speed Hump Policy will be reviewed and updated. Officers plan to trial various speed control devices in various parts of the City next year (where speed humps have been requested) to identify their effects and impacts in order to inform any revised Speed Hump Policy. Officers will work with residents in a number of locations regarding the trials (including Locking Street). Any temporary measures, funded from existing budgets, will either be made permanent, adjusted or removed. Councillors will be kept informed through the Councillors newsletter as to the locations of the trials.

12.10 The tender for the Parking Strategy is expected to be issued early November, with the work awarded before Christmas. It is expected to be developed in draft by mid-2021.

12.11 The Pay by Plate parking payment system was introduced on 29 June 2020. Since then records show that 70% of transactions are undertaken using cash, the remainder Paywave and the Park Mate App. Comparing the two periods 12 August 2019 - 29 September 2019, and 10 August 2020 – 27 September 2020 shows:

· A decrease in 1 hour free parking transactions of 46%

· An increase in paid transactions by 31%

· An increase in revenue of 50%

Public Transport

12.12 On 18 September 2020 Waka Kotahi updated Funding Guidance associated with the extra funding made available through the National Land Transport Fund (NLTF) to address the ongoing financial impacts of COVID-19 on the provision of public transport. This confirmed that any fare revenue shortfall and direct operating cost increases for public transport services, as a result of the COVID-19 disruptions between July and December 2020 would be 100% funded. This 100% subsidy will be conditional on councils contributing at least their planned 2020/21 local share into public transport services.

12.13 Patronage patterns have been encouraging since Alert Level 1 (March 2020) was introduced and levels are sitting at 93% of last year’s patronage. Under level 2 until September 30 patronage was 60,407 which is 84% of last years’ patronage.

12.14 Bee Card use accounts for 78 % of all bus trips, showing a good uptake of the scheme.

13. Workshops

13.1 A number of workshops and briefings have been held since July to inform the Draft Long Term Plan. These include workshops relating to Solid Waste, Public Transport and the Regional Land Transport Plan. In addition iwi workshops have been held for the Transport, Water and Stormwater Activity Management Plans.

13.2 A workshop on the Infrastructure Strategy was held with elected members in August to refresh information previously presented in a February workshop. The draft Infrastructure Strategy was approved by the Committee on 1 October 2020.

13.3 A workshop was held with elected members on 15 September 2020 to discuss the proposed changes to the Wastewater Bylaw. Officers are planning to present the draft Wastewater Bylaw to the Committee in early 2021, prior to going out for public consultation.

14. Other notable achievements and matters of interest

14.1 COVID-19 ESR Sewage Testing Surveillance Programme – NCC has previously supported the Crown Research Institute (ESR) to finalise a methodology for testing wastewater for COVID-19. ESR have now started Phase 1 of their sampling surveillance programme which includes samples taken from the Nelson North Wastewater Treatment Plant. This first phase will continue for approximately 8 weeks (finishing in mid-November). Further information on next phases will be confirmed in due course. In the event of a positive sample, Council, Civil Defence, Ministry of Health and Health authorities will be advised immediately. The public health response to a positive sample will be led by the Ministry of Health and other Government agencies.

14.2 Council staff and contractors have been working proactively to mitigate the likelihood of odour occurring from the oxidation ponds at Nelson North Wastewater Treatment Plant (Plant). A similar incident occurred in 2018, and since then Council has established an expert Pond Management Team to monitor the health and diversity of the ponds, especially during the transition from spring to summer when this issue occurs. In the event of an odour issue, one of Long Term Plan 2018-28 (LTP) performance measures would not be met.

14.3 The oxidation ponds at the Plant play an important role in treating wastewater, and utilise a natural biological process that requires conditions in the pond to be carefully balanced. During this time of year, the algae within the ponds go through a transition phase, and as the temperature increases, some of the algae present during winter die off and are replaced by spring/summer algae. More often than not, this transition happens smoothly, however, this year, a particular winter algae became dominant and provided little opportunity for the summer algae to establish in the pond.

14.4 Healthy levels of algae ensure that the ponds remain oxygenated. When the winter algae dies off and is not replaced by summer algae, the pond can become anaerobic. It is at that point that the odour can occur. In preparation for this event, Council’s Pond Management Team put the following processes in place:

· Close monitoring of the health and diversity of the algae, enabling us to act quickly if algae conditions change

· Diverting all wastewater through additional treatment processes to take the load off the ponds – encouraging new algae to emerge

· Introduced sodium nitrate to the wastewater entering the ponds to reduce odour levels.

· Seeding the pond with algae from the nearby wetlands and Bell Island Wastewater Treatment Plant.

14.5 The proactive steps taken have been successful in avoiding odour issues whilst the transition from winter algae to summer algae takes place. Additional costs associated with this proactive work will be confirmed in the next quarterly report.

14.6 The South Island Drinking Water Assessment Unit has confirmed that the Nelson City Councils drinking water supply fully complied with the Drinking Water Standards for New Zealand during 2019/20 financial year.

Three Waters Services Reform

14.7 A Memoranda of Understanding (MoU) between Council and the Crown regarding the Three Waters Services Reform was signed in August 2020.

14.8 As part of the MoU, Officers have submitted the Draft Delivery Plan (Plan) required under the Three Water Stimulus Package to the Department of Internal Affairs (DIA) and Crown Infrastructure Partners (CIP). Dialogue has taken place between NCC/CIP officers and approval of this Plan (equating to approximately $5.7M of external funding) is expected at the beginning of November.

14.9 The MoU included a commitment to share information to support the Three Waters Reform Programme. A Request for Information (RFI) was issued by the DIA on the 23 October, seeking information to support detailed modelling and analysis. This information is to be supplied to the DIA by the 01 February 2021.

14.10 The RFI is comprehensive and will require a substantive resource commitment from the Council. The DIA are allowing a nominal sum from the ‘Three Water Stimulus Package’ to be redirected to help provide additional resource support for this request.

14.11 At the time of writing this report, Officers are in the process of developing a team within the infrastructure group and wider Council to ensure this information is delivered on time.

14.12 This RFI will be applying significant pressure on already fatigued staff. Officers will be investigating what projects/programmes (particularly those managed by Utilities Business Unit) will go on hold to help manage staff wellbeing and workload.

15. Issues

15.1 A number of risks are front of mind through this quarter and are expected to remain going forward. As a result of the streamlined procurement process and key focus on supporting the economy, projects are moving at pace. Risks associated with this are:

15.1.1 Potential prices above approved budgets that will require Council approval resulting in contractor’s programmes disrupted with potential for them to give preference to other work resulting in projects not proceeding this financial year.

15.1.2 The number of construction projects underway may result in a level of disruption to the public that is unacceptable.

15.1.3 Consultants unable to meet the required timelines.

15.1.4 Potential conflict across projects – i.e. too many projects resulting in inability to manage the traffic management requirements.

15.1.5 Staff burnout – the infrastructure group are working at a pace that is both exciting and exhilarating due to the level of construction underway however, there is genuine tiredness and anxiety within the group in respect of the year we have had due to COVID-19.

15.1.6 Delays on material delivery (local and overseas) is a high risk across many of our projects.

15.1.7 Nurseries and planting contractors have raised concerns in terms of meeting forward future work (20/21 and 21/22) due to the high requirement across all sectors for plants.

16. Key Performance Measures

16.1 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 Infrastructure Committee. The final results for each performance measure will be reported on through the Annual Report.

· On track

· Not on track

· Achieved

· Not achieved

16.2 Attachment two lists all performance measures within the Infrastructure Committee delegations, their status and commentary for the quarter.

16.3 Overall 27 out of the 32 performance measures can be confirmed as being on track.

16.4 Twenty two out of 25 utilities performance measures are on track. Three performances measures have not been measured due to timing.

16.5 Two of the seven transport measures are on track, three performance measures have not been measured due to timing, and two have not been achieved.

16.5.1 There has been five serious injury crash events on the local road network to date in 2020/21, this is two more than the same time in 2018/19 and 2019/20. If the current crash rate continues results will exceed targets.

16.5.2 NBus patronage for the first quarter was 98% of the same quarter in 2019/20.This result is affected by the free buses in August and the COVID-19 level 2 restrictions in August and September.

16.6 All three Solid waste performance measures are on track

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

17. Options

17.1 The Committee has one decision to consider.

17.2 To either approve additional funding or not approve additional funding. Officers support Option 1, approve additional funding.

Option 1: Approve Additional Unbudgeted Capital Funding
Advantages	· Allows stage 3C to move forward and allow stage 4 to progress · No disestablishment costs and reestablishment costs in the future · Keeps a skilled established team continuing on to the final section of this project
Risks and Disadvantages	· None
Option 2: Not approve additional funding
Advantages	· Additional unbudgeted funds not required
Risks and Disadvantages	· Works come to a standstill · Increased further costs due to delays, reestablishment on site, and loss of resources who have moved on to other jobs · Wil not see the progression of the upgrade of Saxton Creek from Champion Road to the sea

Author: Lois Plum, Manager Capital Projects

Attachments

Attachment 1: A2411176 - Key to Quarterly Report ⇩

Attachment 2: A2500601 - Infrastructure Quarter One 2020-21 One Page Reports ⇩

Attachment 3: A2500539 - Infrastructure Quarter One 2020-21 KPI report ⇩

Important considerations for decision making

1. Fit with Purpose of Local Government

The construction projects are all part of the current LTP and 2020/21 Annual Plan, meeting the requirements of fit with purpose of Local Government. The projects meet all the well-being’s in the areas of environmental, economic and social.

2. Consistency with Community Outcomes and Council Policy

The projects relating to COVID-19 impacts are all part of the Long Term Plan, and Annual Plan and are in the construction phase.

3. Risk

The request for COVID-19 related funding will cover the additional costs associated with the winter weather impacts solely related to the delay to the construction activities. The additional funding request for Saxton 3, will allow the final section of Champion Road to Main Road Stoke to be completed.

4. Financial impact

The additional expenditure in respect of COVID-19 is a direct result of the pandemic and lockdown level changes, this funding has not been budgeted for in either the Annual Plan or the Long Term Plan for this financial year.

5. Degree of significance and level of engagement

Engagement for the works on Saxton 3 was undertaken some time ago.

6. Climate Impact

The work on Saxton Creek is to resolve issues from a major flooding incident, and to future proof this area for potential increased flooding in the future as a result of climate impact.

7. Inclusion of Māori in the decision making process

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

8. Delegations

The Infrastructure Committee has the following delegation:

Areas of Responsibility:

· Transport network, including, roading network and associated structures, walkways, cycleways and shared pathways, footpaths and road reserve, street lighting, traffic management control and parking.

· Water

· Wastewater, including Bell Island Wastewater Treatment Plant

· Stormwater and Flood Protection

Delegations:

The committee has all of the responsibilities, powers, functions and duties of Council in relation to governance matters within its areas of responsibility, except where they have been retained by Council, or have been referred to other committees, subcommittees or subordinate decision-making bodies.

Powers to Recommend:

· Unbudgeted expenditure relating to the areas of responsibility, not included in the Long Term Plan or Annual Plan