Item 9: Infrastructure
Quarter Three Report
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Infrastructure Committee
3 June 2021
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REPORT R22709
Infrastructure
Quarter Three Report
1. Purpose
of Report
1.1 To
inform the Committee of the financial and non-financial results for the third
quarter of 2020/2021 for the activities under its delegated authority.
2. Recommendation
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That the Infrastructure Committee
1. Receives
the report Infrastructure Quarter Three Report (R22709) and its attachments A2617656 and A2629920.
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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 31
March 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 38 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 $1Million 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
regarding the budget factor.
4. COVID-19
costs impacts
4.1 The
level of product delays and cost changes has increased over the quarter. Demand
for construction materials is very high across NZ, and with very large
contracts occurring in Auckland, product is often not available outside this
area.
4.2 Products
being sourced from overseas are subject to long delays because of shipping
issues across the globe.
4.3 To
help mitigate delays the team has identified key product requirements early in
the project and are placing orders for materials such as pipe and pump
components ahead of planned construction commencement. Unfortunately, this
still does not guarantee delivery and it is expected that this trend will get
worse over the coming months.
5. Tenders
Awarded
5.1 Tenders
above $300,000 awarded under delegated authority in the last quarter are listed
below:
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Project Name
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Awarded to
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Tender Price
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Poorman Stream Shared Path
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Nelmac
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$645,000
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Gloucester & Konini Stormwater and Watermain
Improvements
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Ching Contracting
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$691,000
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Tosswill to Tahuna Stormwater Improvements
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Tasman Civil
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$470,000
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Tahunanui SH6 Stormwater Culvert Upgrade (Rocks Road)
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Fulton Hogan
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$420,000
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5.2 Tenders
Subcommittee
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Project
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Awarded to
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Tender Price
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None for this quarter
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6. Financial
Results
Profit and Loss by Activity
Notes
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· 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.
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· 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.
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Operating Revenue (excluding rates)
Operating Expenditure (excluding internal interest)
Capital
Expenditure Infrastructure (excluding vested assets)
6.1 As
at 31 March 2021, Capital Expenditure is $4.0 million behind budget. Renewals
are $1.6 million behind budget and increased LOS projects are $3.3 million
behind budget. Capital Growth expenditure is $881,000 ahead of budget.
6.2 There
have been some minor delays during the quarter, along with some timing changes
to start dates, due to contractor availability and potential work clashes. The
full year forecast as at 31 March was projected to be $37.7 million which is
$1.8 million behind the operating budget of $39.6 million.
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Terms Used
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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.
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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.
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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.
6.3 Transport
6.3.1 Subsidised
Roading income is less than budget by $269,000. Waka Kotahi income is $290,000 under budget at the
end of the quarter and expecting to be $208,000 under budget at the end of the
year. Subsidised roading expenditure was phased correctly throughout the year. However,
Subsidised Roading income was misaligned causing a larger variance.
6.3.2 Subsidised
Roading expenditure is less than budget by
$379,000. Staff costs are behind budget by $148,000 as staff are
coding work to specific projects instead of to general subsidised roading. The
category titled “Condition assessment” which covers several
overheads, is currently underspent by $121,000. The entire work category will
be balanced out across the subsidised work programme to maximise Waka Kotahi subsidy
uplift. Parking Strategy is $63,000 behind budget with work underway.
6.3.3 Unsubsidised
Roading income is less than budget by $604,000.
Waka Kotahi Funding for Kawai Street is $532,000 behind budget due to a timing
issue, with associated expenditure also behind. Recoveries from Corridor Access
are under budget by $75,000 and expecting to be $96,000 under budget by the end
of the year.
6.3.4 Unsubsidised
Roading expenditure is less than budget by
$542,000. Kawai Street Innovative Streets is behind budget by $486,000,
but the budget is spread across both Kawai Street and Hampden Street/Locking
Street initiatives and is on target for full expenditure this financial year.
Champion Road Roundabout expenditure is behind budget by $150,000, with payment
to TDC to be made by June. Street Tree Maintenance is behind budget by
$66,000. Depreciation is over budget by $200,000. 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.
6.3.5 Parking
Regulation income is greater than budget by
$109,000. Infringement Fees are $132,000 over budget due to the new
meters increasing fine activity. This is expected to continue for the remainder
of the year with Infringement Fees expecting to be $179,000 over budget by the
end of the year.
6.3.6 Parking
and CBD Enhancement income is greater than
budget by $123,000. Off Street Meter Fees are over budget by
$195,000 due to the installation of the new meters and is anticipated to be
over budget by $265,000 at the end of the year
6.3.7 Public
Transport income is greater than budget by
$656,000. Waka Kotahi income is $537,000 ahead of budget and
expecting to be $395,000 over by the end of the year due to unprogrammed
expenditure for the response to COVID-19. TDC’s contribution to public
transport is $47,000 over budget and Beecard revenue is $66,000 over budget.
6.3.8 Public
Transport expenditure is greater than budget by
$183,000. Unprogrammed expenditure of $172,000 for the response to
COVID-19 has been incurred against a nil budget, however this is covered by
additional Waka Kotahi income.
6.4 Solid
Waste
6.4.1 Transfer
Station income is greater than budget by
$126,000. Local Disposal Levies are $56,000 ahead of budget and
Disposal Fees are $41,000 ahead of budget.
6.4.2 Total
Transfer Station expenditure is greater than budget by
$115,000. The transfer station revenue is $126,000 above budget
while total costs are $109,000 over budget. This is a Quarter 3 positive result
of $17,000 and follows Council taking the transfer station kiosk back
in-house. Following maintenance work
presently being undertaken at the transfer station, it is expected the end of
year result will be +/- $20,000 against budget.
6.4.3 Recycling
income is less than budget by $78,000.
Local Disposal Levies are $64,000 behind budget and Recycling Bin sales are
behind budget by $19,000.
6.4.4 Recycling
expenditure is less than budget by $143,000.
The Kerbside Contract is $121,000 behind budget due to the invoice not being
received in March. Recycling Bins expenditure is $41,000 behind budget because
bins have not yet ordered as stock this year.
6.5 Wastewater
6.5.1 Wastewater
income is less than budget by $334,000.
Commercial Trade Waste income is behind budget by $117,000. The Return of
Investment from NRSBU is behind budget by $214,000. These are timing variances
expecting to correct themselves by the end of the year.
6.5.2 Wastewater
expenditure is greater than budget by $717,000.
Due to the revaluation of assets, depreciation expense is $813,000 over budget.
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 wastewater assets increase by an
average of 25% when compared with values at 1 July 2019.
6.6 Stormwater
6.6.1 Stormwater
expenditure is greater than budget by $358,000.
Due to the revaluation, depreciation expense is $529,000 over budget.
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.
6.7 Water
6.7.1 Water
Supply income is greater than budget by
$353,000. Commercial and Residential Water charges are $402,000
ahead of budget due to increased commercial sales volumes compared with budget
and prior year.
6.7.2 Water
Supply expenditure is greater than budget by
$461,000. Due to the revaluation, depreciation expense is $441,000
over budget YTD. 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.
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
following projects were completed this quarter:
7.2.1 Gracefield
Sewer Diversion project.
7.2.2 Seafield
Terrace revetment works. A Karakia and breakfast were held just after
completion. The physical works went extremely well with no significant
challenges experienced resulting in an underspend of $130,000 (refer also carry
forward section).
7.2.3 The
inner-city bike shelter in Trafalgar Street.
7.2.4 Waimea
Road Snows Hill Footpath upgrade.
7.2.5 Footpath
widening Annesbrook Drive.
7.3 The
following projects commenced in the quarter:
7.3.1 Poorman
Stream shared path.
7.3.2 Orphanage
Stream flood protection.
8. Provincial
Growth Funded Projects
8.1 Both
the raised table at Waikare Street/Beach Road and the Maitai path improvements
works are complete.
8.2 The
following two projects have had a contract variation approved to extend the
12-month initial contract by a further 16 weeks to maximise use of the funding
opportunity on site.
8.2.1 Eves
Valley Planting – Ground preparation for planting is underway in April
and planting will follow in May/June to maximise seedling strike.
8.2.2 York
Valley Road resurfacing – the balance of the access road was resurfaced
over Easter weekend and the remaining funds will be used to do works at the
truck wheel wash area.
9. Three
Waters Services Reform Stimulus Package Update
9.1 The
Department of Internal Affairs (DIA) and Crown Infrastructure Partners (CIP)
have approved the Council’s Delivery Plan (Plan) resulting in just over
$5.7M of external funding being awarded to Council.
9.2 Key
items to note during this quarter are as follows:
9.2.1 Staff
Resources – One out of three roles have been appointed. The
recruitment for the two remaining roles is delayed due to the difficulty in
attracting suitable applicants. Officers anticipate this is a result of the
uncertainty with job security due to the three waters reform. This delay in
recruitment will result in a $91,319 underspend by the end of March 2022.
Officers have requested approval from the DIA to reduce the funding allocation
to $388,683 and reallocate the $91,319 underspend to an already approved
project, NWWTP Pond Management Improvements. This additional money will
continue to provide additional support to the Pond Management Team to proactively
monitor the discharge quality and pond health (algae counts, diversity, total
suspended solids and other influencing water quality parameters) to enable
timely operational changes, including making sludge.
9.3 A
summary of the progress for all projects is summarised below:
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PROJECT
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TYPE
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ORIGINAL FUNDING
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UPDATED FUNDING
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Progress
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General
Programme
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3
Waters roll out - discussion/collaboration
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Opex
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$300,000
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$300,000
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To start in May 2021
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General Programme Sub-Total
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$300,000
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$300,000
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Staff
Resources
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$480,000
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$388,683**
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Commenced
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Staff Resources Subtotal
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$480,000
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$388,683
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Water
Programme
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Maitai
Dam – Lindavia Testing
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Opex
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$40,000
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$40,000
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Commenced
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Climate
Change – Emission Reduction Strategy
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Opex
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$30,000
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$30,000
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Commenced
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Water
Pipeline Renewals Strategy
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Opex
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$30,000
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$30,000
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Commenced
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Maitai
Original Raw Water Pipeline Renewal Strategy
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Opex
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$60,000
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$60,000
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Commenced
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Reticulation
Water Quality Improvement and Pressure Management Strategy
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Opex
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$70,000
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$70,000
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Commenced
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Water Programme Sub-Total
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$230,000
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$230,000
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Wastewater
Programme
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NWWTP
Resource Consent Monitoring Programme
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Capex
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$200,000*
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$200,000
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Commenced
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NWWTP
Pond Management Improvements
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Opex
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$60,000
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$151,317**
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Commenced
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Awatea
Road Pump Station
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Capex
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$3,538,458*
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$3,538,458*
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Procurement Stage
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Beach
Road Wastewater Storage
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Capex
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$300,000*
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$300,000*
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Completed
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Trade
Waste Improvement Programme
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Opex
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$170,000
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$170,000
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Commenced
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Wastewater
Pipeline Renewals Strategy
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Opex
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$30,000
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$30,000
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Commenced
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Climate
Change - Wastewater Network Heat Mapping
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Opex
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$30,000
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$30,000
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Commenced
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Climate
Change Emission Reduction Strategy
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Opex
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$175,000
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$175,000
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Commenced
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Pump
Station Data Collection, Storage and Use
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Opex
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$50,000
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$50,000
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Commenced
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Wastewater Programme Sub-Total
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$4,553,458
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$4,644,775
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Stormwater
Programme
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Condition
Performance Assessment
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Opex
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$30,000*
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$30,000*
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Commenced
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Stormwater
Quality Strategy
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Opex
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$130,000
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$130,000
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Commenced
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Stormwater Programme Sub-Total
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$160,000
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$160,000
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GRAND TOTAL
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$5,723,458
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$5,723,458
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* Does not represent total
project budget, only the external contribution from the Three Waters Stimulus
Programme.
** Subject to DIA approval.
9.4 Three
Waters Services Reform: Request for Information Update. Officers
submitted the RFI in accordance with agreed timeframes. Officers are continuing
to liaise with both the DIA and Water Commission for Scotland on this
substantial exercise.
10. Potential
Carry Forward into 2021/22
10.1 The following carryovers are
likely:
10.1.1 Wastewater
model calibration has been delayed due to model technical issues -
$60,000.
10.1.2 Seafield
Terrace construction – whilst physical works are complete an information
board acknowledging the archaeological site describing the importance of Ngati
Kuia, Apa, and Rangitane is still required. A hui was held on the 26 March 2021
to discuss this further, but the works will not be completed this financial
year and $25,000 is required to be carried forward.
10.1.3 Mount
Street/Konini Street stormwater & watermain (linked to the Vanguard/Hardy
watermain project) – As a result of the delay in commencing the
construction works for Vanguard/Hardy due to the request from New World to only
commence work after Easter, there is a later start for Gloucester/Konini
requiring a carry forward of approximately $100,000.
10.1.4 Washington
Valley services upgrade project. Design delays requires a carry-over of
$120,000
10.1.5 Flood
Protection - Jenkins Stream near Nelson Airport. Approximately $60,000 is
being requested to be carried over to continue both detail design and
negotiation with the airport.
10.1.6 Whakatu
Drive Stormwater project has seen delays in achieving traffic management
approvals from Waka Kotahi and pipeline delivery resulting from COVID-19. There
is potential need to carry forward approximately $300,000.
10.1.7 Cawthron
Crescent Stormwater upgrade requires a carry forward of $45,900 from 2020/21 to
next financial year, to supplement the 2021/22 budget – to allow the
project to continue.
10.1.7 Tosswill
Stormwater has been delayed some months due to clashes with services requiring
a significant re-design. Works are on site, but bad weather may result in a
carry forward of $100,000.
11. Status
Report Update
11.1 Sandbags
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).
12. Commentary
on operational projects
12.1 There
is a detailed status report for two operational projects (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.
Waste Minimisation
12.3 The
first collection of the kitchen waste trial commenced on 11 February. There are
presently 130 participants from the 302 residents that were invited. Each
participating resident has received a 20-litre bucket with a lid. This is
placed on the street on Thursday and a clean bucket is left in its place.
12.4 To
date the average weight from a household is 5.5 kg/week, which is about 14
litres of kitchen waste. This compares favourably with the amount of kitchen
waste produced in other NZ cities. The collection route extends from The Wood
to Saxton Road and reflects the variety of households in Nelson. Community
compost are contracted to deliver this trial.
12.5 The
initial results suggest that, if upscaled to the whole city, Nelson could
divert at least 3,000 tonnes per year from the landfill and prevent the production
of 5,700 tonnes of CO2 per annum. The trial will run until February 2022 giving
a full 12-month trial to identify seasonal variations and supply data on which
any future plans can be based.
12.6 The
waste minimisation Rethink Waste programme delivered the following activities
in this quarter:
12.6.1 Delivered
Round 2 of the waste minimisations grants trial, with five grants being awarded
for projects ranging from building local repair café capacity to
supporting waste minimisation at markets and events through packaging and
refill your own container projects. The final round will be delivered in Q4,
after which the grants process will be reviewed to support the delivery of a
more extensive grant programme in 2021/22.
12.6.2 Design
and implementation of an autumn programme of Rethink Waste workshops and
events.
12.6.3 Support
for completion of Halifax Street deconstruction project including internal
staff engagement session, and planning for building sector engagement.
12.6.4 Completion
of the shared work programme with Tasman District Council to support the
delivery of the Joint Waste Management and Minimisation Plan (JWMMP).
12.6.5 Design
commenced on Council Walking the Talk programme for Council-run events and use
of Council facilities, including building waste minimisation into Council
Events Team requests for proposals, advice for Matariki Festival, collaboration
with NRDA to improve delivery of waste minimisation in Nelson Events Fund
grants, and working with Tahuna Summer Sounds organiser to create case study
with generic plan and budgets for Council event waste minimisation.
12.6.6 Participation
in national steering group for voluntary product stewardship for textile waste
– focusing on future projects in partnership with opshops.
12.6.7 Ongoing
delivery of ‘business as usual’ waste minimisation activities
including Second-hand Saturday, Rethink Waste newsletter, subsidy programmes to
encourage diversion of waste from landfill and supporting waste minimisation at
events.
12.6.8 A
large event focused on developing Repair Café culture is planned for
delivery Quarter 4.
12.7 Council
continue to collaborate and share information with Tasman District Council and
staff from the regional landfill business unit. Recent ‘SWAP’
(solid waste assessment protocol) survey work by the business unit has
identified the proportion of waste able to be diverted from landfill and
Council will be using this information to inform it’s diversion efforts,
including investigating options for diverting batteries from landfill.
12.8 We
have received preliminary results from the audit of contamination levels at the
materials recycling facility and are working through the findings. We have also
jointly commissioned, with Tasman District Council, a survey to identify attitudes
and behaviours relating to waste minimisation and recycling, (data from
previous surveys will provide a baseline to measure change against). We will be
using the results of these two surveys later in the year to identify where we
need to improve our information to ratepayers and how to focus our waste
minimisation engagement work.
12.9 At
the time of report writing we are also working with Tasman District Council to
investigate an application for funding to the Waste Minimisation Fund. The next
round of funding opens in late April and closes in May. The investment focus
for the fund this year is reducing construction and demolition waste and
achieving beneficial outcomes for organic waste. This focus aligns with the
areas that we are already working on with Tasman District.
Transport
12.10 Innovative
streets
12.10.1 Phase
1 of the project on Kawai Street was completed prior to the end of Q2 but
monitoring data has since shown its effectiveness. The aim of this phase was to
slow down vehicles and reduce through traffic and both have been achieved with
a 37.5% reduction in mean speed and a 30% reduction in average daily traffic
volume at measured sites. Nelson Intermediate School support the project and an
evening engagement session was held at the school on 11 March 2021 (original
date delayed 1 week by move from Covid alert level 1 to 2) where more feedback
was received on phase 1 and some ideas for phase 2 were gathered.
12.10.2 Phase
2 focuses on connecting the community with destinations such as schools,
Victory Community Centre, and the railway reserve. This will include enhancing
pedestrian and cycling safety. Concepts for traffic calming on Tipahi Street
were trialled on the street in the first week of April and more feedback
gathered.
12.10.3 The
project received high praise at the national Walking and Cycling conference in
March and, in May won the prestigious National 3M Innovation Awards. This award
recognises exemplary innovation and effectiveness to save lives and injuries on
roads. Judges considered innovations in thinking and technology,
problem-solving, cost-effectiveness and transferability to other areas when
making their decision.
12.11 Locking
Street
12.11.1 A
community meeting was held in late February 2021 to discuss options for a way
forward that would mitigate the effects the Locking Street community have
experienced due to the trial Hampden Street closure. Feedback and suggestions
were received from residents of Locking Street, Locking Terrace, Kawai Street
(and the surrounds) that added to the understanding of the challenges they
face, and what could possibly be done do to make the street safer.
12.11.2 As
a result, Council will be trialling new road markings, signage changes, speed
cushions, and landscaping improvements on the street gardens to create safer
areas for pedestrians to stand and wait for passing traffic. The physical work
will be done in May. Officers will carry out ongoing traffic volume and speed
monitoring on Locking Street and Kawai Street (north), including pedestrian,
cyclist, and vehicle monitoring.
12.11.3 Hampden
Street Trial Closure will continue and will next be bought to the committee in
November 2021. Officers will assess the success of these trial measures on
Locking Street as part of this review.
12.12 Road
safety activity. A variety of road safety activities have taken place in the
last quarter.
12.12.1 Cops
with Cakes: A safety promotion event that is in its second year and proving to
be very popular with the community. Over 4,000 people attended the event that
involved several government and community agencies including Fire and
Emergency, Police Search and Rescue and Police dog sections, along with St John
Ambulance. NCC involvement included teaching of introductory cycle skills.
12.12.2 Shiny
Side Up: 900 people attended this Motorcycle Safety event. NCC and TDC were
present, giving away tool kits and drink bottles with Motorcycle Safety
information. The event was an opportunity to promoting our “save a mates
life” Ride2Live campaign, where mates can sign their motorcycling mates
up to a Ride2Live course for free. Enrolments for 42 riders were taken on the
day.
12.12.3 School
Stopping Demonstrations: Unfortunately, due to a change in COVID-19 levels, the
School Stopping Demonstrations were postponed. These events involve a
professional travelling around school locations and demonstrating the distance
it takes a car to stop at 20, 50 and 60km/h. This highlights that just a small
increase in speed can have a devastating impact in a crash. The demonstrations
will be rescheduled for later in the school year.
12.12.4 Go
by Bike Day: An annual event held in February, during the Aotearoa Bike
Challenge month. The 1903 Square was packed with cyclists celebrating with
breakfast, coffee, and entertainment by the Plinkers
Ukulele band, who fundraise for Hospice. Council adopted a zero-waste
approach to this event and although 120 coffees and breakfasts were served, no
disposable cups plates or utensils were used.
12.12.5 Rotary
Young Driver Awareness (RYDA): RYDA is a road safety education programme that
helps young drivers understand road safety and what they can do to keep
themselves and their friends and whanau safe on our roads. NCC has supported
RYDA for the last 10 years. Students become crash investigators for the day to
discover the cause of real-life crashes. This year’s event was attended
by 311 high school aged students from Nelson Schools.
12.12.6 Distraction
campaign. Following on from last years ‘Be Undistractable’
campaign Council continues to distribute drink bottles with safety messages to
novice drivers through the AA.
12.12.7 RideOn:
RideOn is the name of our local cycle education programme which has been
running several years. During this quarter 786 primary and intermediate
students received grade 1 cycle skills and an additional 213 year 1 and 2
students received scooter safety skills. The instructors are working towards
being ‘BikeReady’ accredited, which is Waka Kotahi’s national
prescribed programme.
12.12.8 Waka
Kotahi has again 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, because of the COVID-19 disruptions
between July 2020 and 30 June 2021 would be 100% funded. This 100% subsidy
remains conditional on councils contributing at least their planned 2020/21
local share into public transport services.
12.13 Bee
Card use accounted for an average of 77% of all bus trips in this quarter,
showing continued high use of the scheme.
13. Risks
13.1 Several
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 continue to move at pace. Risks associated
with this are:
13.1.1 Potential
prices above approved budgets that will require Council approval resulting in
contractors’ programmes disrupted with potential for them to give
preference to other work resulting in projects not proceeding this financial
year.
13.1.2 Delays
on material delivery (local and overseas) is a high risk and has now been
realised, with price increases and supply chain issues. As noted last quarter
there are confirmed increases in the costs of pipes of up to 9%, and officers
are also noting more products are taking longer to secure.
13.1.3 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.
13.1.4 Market
buoyancy leading to inability to secure resources in a timely manner.
13.1.5 There
is some uncertainty around delivering Council’s preferred transport
programme in full in 2024-27, due to the unknown level of funding subsidy to be
provided by Waka Kotahi. Waka Kotahi have signalled that the 2024-27 National
Land Transport Fund (NLTF) has significant financial pressure. Officers
expect to have an indication of funding subsidy levels in May 2021.
14. Temporary
Traffic Management (TTM) Changes & Cost Increases
14.1 Traffic
management across New Zealand’s network of state highways and local roads
is fundamental to keeping people safe on our roads. Waka Kotahi NZ is
responsible for setting the requirements for the safe and efficient management
and operation of temporary traffic management (TTM) on all roads in New
Zealand. The Code of Practice for Temporary Traffic Management (CoPTTM) is best
practice guideline for temporary traffic management in New Zealand.
14.2 Following
several fatalities in recent years and subsequent industry discussions current
CoPTTM rules have been amended and the impacts on Council are as follows:
14.2.1 Changes
to the traffic management qualifications and higher levels of compliance
expectations will impact Council’s ability to perform work on site for
the same cost. The qualification changes have begun to be deployed throughout
New Zealand in a staged approach by Waka Kotahi commencing in April 2021 and
expected to continue over the next 5 years.
14.2.2 New
training and competency levels are being introduced so that staff have a higher
level of understanding and risk evaluation to ensure practical site management
responsibility experience. This has broken the qualifications down to being
more task specific and will introduce practical assessments i.e. to check the
member of staff can install traffic management correctly and safely whereas to
date this assessment has all been classroom based. These extra qualifications
and additional practical testing are playing a role in traffic management cost
increases.
14.2.3 A much earlier consultation process with Road
Controlling Authorities to ascertain the projects viability within
the new rules and increased traffic volumes found on our roads today - this in
the interim will potentially force council to set the traffic plans in planning
phases reducing contractors ability to offer smarter/cheaper solutions in their
methodologies.
14.3 This change means that only
authorised people can draft traffic Management Plans (TMP’s). Locally,
only five contractors have passed the new TTM Planner qualification and have a
valid practising warrant (as at April 2021). This creates a significant backlog
of processing. Waka Kotahi has implemented a 4-month grace period on the new rules
expiring at the end of April.
14.4 With
the recent deaths as a result of poor traffic management, companies are
starting to realise the level of risk that they are putting their staff, their
company and in the case of council work Nelson City Council in if they do not
have people onsite with a higher level of understanding of traffic management
requirements and are dedicated to the onsite traffic management. A result of
this is we are seeing this in recent projects where contractors engage a full time
Site Traffic Management Supervisor (STMS). In the past this role has often be
shared with ground staffs’ other tasks and has not been prioritised.
While the focus on safety needs to be a priority this additional role does come
with additional cost.
15. Key
Performance Measures
15.1 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 results for each performance measure will be reported on through the Annual
Report.
· On track
· Not on track
· Achieved
· Not achieved
15.2 Attachment
two lists all performance measures within the Infrastructure Committee delegations,
their status and commentary for the quarter.
15.3 Overall, 28 out of the 35 performance measures can be confirmed as
being on track. Six performance measures are presently ‘Not on
track’ and two performance measures have ‘Not been measured yet’
at this time.
15.4 For utilities, one performance
measure not on track is within the Flood Protection activity, ‘Develop
risk based Maitai flood response options – Community engagement on
response options.
Officers ran a public workshop
at the Infrastructure Committee on the 11 February 2021. Following this
workshop, consultation with the community was planned to begin following the
Nelson Plan consultation on Flood Hazards in May/June 2021. However, due to the
delay with the Nelson Plan, consultation is now anticipated to take place in
Quarter 1 & Quarter 2 of the 21/22 FY.
15.5 In the 25 February 2021 Quarterly
Report, officers had reported that one performance measure was not on track,
‘100% compliance with the Nelson North Wastewater Treatment Plant (Plant)
resource consent’. This performance measure was at risk, due to
issues surrounding the high total suspended solids (TSS) being experienced in
the treated effluent prior to discharge to sea. Due to seasonal algae change,
and improved management of the wetlands, officers can confirm that this
performance measure is now back on track.
15.6 Three of the seven transport measures
are not on track, two have not been measured due to timing, and two are on
track.
15.6.1 There have been 14 DSI (Deaths and /or
Serious Injuries) crash events on the local road network to the end of March
2021. One crash resulted in a fatality. This is one more than the full year in
2018/19 and 4 more than the full year in 2019/20 (affected by COVID -19
shutdowns).
15.6.2 NBus patronage for the third quarter was
87% of the same quarter in 2019/20. Patronage patterns have been affected by COVID-19 but less so here
than in other metropolitan areas.
15.6.3 Residents' Survey is undertaken in 4 waves,
the results for November and December averaged 19% of those surveyed journeyed
to work by walking, running, or cycling. The annual figure for 2019/20 was 16%
and the end of year target for 2020/21 is 21%.
15.7 Quantity of waste to landfill
per capita is not on track. The results for this measure in 2019/20 were
skewed by two months of low tonnage caused by minimal commercial activity
during COVID-19 lockdowns. This created an end of year (EOY) artificially low
waste figure of 565Kg, per capita.
15.8 This
has also resulted in YTD 2020/2021 disposal being over 5,000 tonnes (of
general, commercial skips, and demolition) higher than the YTD 2019/20 year,
but this total is not significantly different from the YTD 2018/19 year. Due to
COVID-19's influence future comparisons will be more informative if made
against the 2018/2019 year.
15.9 There
has been a significant increase in home renovation (potentially due to the
inability to travel overseas). In the last quarter of 2020/21, there will be
more waste disposed than for the same period last year, resulting in an EOY
projection of 625Kg per capita.
Author: Lois
Plum, Manager Capital Projects
Attachments
Attachment 1: A2617656 -
Infrastructure Q3 one page reports ⇩
Attachment 2: A2629920
- Infrastructure Q3 Performance measures ⇩
