Agenda of Council - 2 September 2021

Item	General subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Particular interests protected (where applicable)
1	Land Purchase - Stoke	Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7	The withholding of the information is necessary: · Section 7(2)(a) To protect the privacy of natural persons, including that of a deceased person · Section 7(2)(h) To enable the local authority to carry out, without prejudice or disadvantage, commercial activities · Section 7(2)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

Item 9: Water Supply Bylaw (228) - Deliberations Report

Council

2 September 2021

REPORT R23720

Water Supply Bylaw (228) - Deliberations Report

1. Purpose of Report

1.1 To deliberate, approve the draft Water Supply Bylaw (228) 2021 (Bylaw) and adopt the Bylaw.

2. Summary

2.1 Council is required under section 156(1)(a) of the Local Government Act 2002 (LGA) to give public notice, and consult with the public, using a Special Consultative Procedure (SCP) on the proposed bylaw before it can be made. A new Bylaw has to be in place by the end of December 2021.

2.2 The SCP associated with the Bylaw concluded on 27 April 2021. Four submissions were received with one submitter heard on 3 June 2021 and one on 2 September 2021.

2.3 The four submissions received are characterised as follows; one in support, one not in support, one of a more generic but not opposing nature and one suggesting the draft bylaw is not the appropriate mechanism for the restrictions the submitter considers it imposes.

2.4 This report is the culmination of the consultation process to adopt the Bylaw.

3. Recommendation

That the Council

1. Receives the report Water Supply Bylaw (228) - Deliberations Report (R23720) and its attachments (A2385695, A2723242, A2646901, A2717283, A1323825); and

2. Approves the following changes to the Water Supply Bylaw (228) 2021 (A2385695) of Report R23720:

· Amend the wording of clause 8.2(i) to read ‘Walking/jogging on Council approved tracks’; and

· Amend the wording of clause 8.2(ii) to read ‘Mountain biking on Council approved tracks’; and

· Add new clauses 8.2 (iii), (iv), (v) and (vi) to reflect specific existing activities currently being undertaken within the catchment. Clauses to read:

(iii) Subject to 8.3 (ix) hereunder, driving a motor vehicle (including a motor cycle) on the Maungatapu Track. (Note: This track is generally only suitable for four wheel drive vehicles.)

(iv) Iwi carrying out activities in the reserves which are provided for in any legislation enacting Deeds of Settlement between Iwi and the Crown.

(v) Activities required for the undertaking of Council water supply, road, track and facility maintenance, regulatory or scientific functions - not covered by (i), (ii) or (iii) above, where these have been authorised by Council, any regulatory consents granted and the caretaker has been consulted as to timing and location.

(vi) Motor vehicle access on formed public roads.

· Amend the wording of clause 8.3(viii) to read ‘Walking/jogging/mountain biking off Council approved tracks’; and

· Amend the wording of clause 8.3(ix) to read ‘Driving a four wheeled motor vehicle or any organised motor sport on the Maungatapu Track. (Note: This track is generally only suitable for four wheel drive vehicles and a $100 bond is required for the permit for four wheeled motor vehicles)’; and

· Amend the wording of clause 8.3(x) to read ‘Subject to 8.2(v) construction or maintenance activities not associated with the Nelson City Water Supply (Source Protection Zones 2 and 3 only)’; and

· Amend the wording of clause 8.5(ii) to read ‘Depositing any contaminant (subject to 8.3(vi)), refuse or waste material of any kind, including defecating, other than in an authorised facility’.

3. Delegates authority to approve any further minor technical amendments to the Water Supply Bylaw (228) 2021 to the Chair of the Infrastructure Committee and the Chief Executive; and

4. Adopts the Water Supply Bylaw (228) 2021 (A2385695) of Report R23720.

4. Background

4.1 A report was presented to the 25 February 2021 Infrastructure Committee detailing the need to approve the commencement of public consultation. That report is not replicated here but is appended as Attachment 2 for background.

4.2 The water supply bylaw sets out the areas in the water source catchments and reticulation network that Council needs to retain some regulatory control over in order to successfully operate and maintain the public water supply. The bylaw sits alongside other regulatory and planning tools such as the Building Act, the Resource Management Act, the Urban Environments Bylaw and the Conservation and Landscape Reserves Management Plan 2009. The water supply bylaw provides Council with the most appropriate way to regulate day to day activities affecting the public water supply system.

4.3 The draft Water Services Bill (Bill) currently before parliament will also be the primary regulatory mechanism supporting Taumata Arowai – the new central government water delivery regulator. Subpart 5 of the bill is devoted to Source water – specifically the preparation of source water risk management plans and the monitoring of source water quality. The provisions of the draft Water Supply Bylaw are not in conflict with the source water requirements of the Bill.

4.4 The multiplicity of documents that all have an interest in the Maitai and Roding Waterworks Reserves will need to be considered by Council in future deliberations on the central government three waters reforms – particularly the final form of ownership of the catchments and who will bear the responsibility for day – to – day regulation of activities in the source water catchments.

4.5 The SCP was undertaken between the 26 February and 27 April 2021. Submissions were received from: Nelson Marlborough District Health Board, Mr Simon Jones, Nelson Tasman Cycle Trails Trust, and Te Atiawa Manawhenua Ki Te Tau Ihu Trust.

5. Discussion

Submission 1 from Nelson Marlborough Health (Nelson Marlborough District Health Board (NMDHB)) (See Attachment 3)

5.1 Specific comments by the submitter:

5.1.1 Submitter supports the proposed changes to the bylaw.

5.1.2 Submitter supports the introduction of the concept of source protection zones with the aim of providing layers of protection related to the potential for contaminant entry to waterways.

5.2 Decisions requested:

5.2.1 Greater clarity be given to the relative protections that each (source protection) zone is to be afforded.

5.2.2 That the protection afforded to each (source protection) zone is conservative in recognition of one of the principles of Water Safety Planning that protection of source water is paramount.

5.2.3 Clause 8.2: That the wording of clause 8.2(i) and (ii) is amended to read ‘existing consented tracks’.

5.2.4 Clause 8.3(viii): Add ‘mountain biking’ to the clause.

5.3 Recommendations:

5.3.1 No change to the proposed activity controls in the source protection zones.

5.3.2 Amend the wording of clause 8.2(i) to read ‘Walking/jogging on ~~existing~~ Council approved tracks’

5.3.3 Amend the wording of clause 8.2(ii) to read ‘Mountain biking ~~(non-engine assisted)~~ on ~~existing~~ Council approved tracks’

5.3.4 Amend the wording of clause 8.3(viii) to read ‘Walking/jogging/mountain biking off ~~existing~~ Council approved tracks’.

5.4 Reasons for Recommendation:

5.4.1 The proposed activity controls in the source protection zones are considered to be appropriate at this stage and will be monitored over the next two years. The opportunity to make changes to the proposed bylaw may arise if Council is required to comply with any requirements of the central government water supply legislation that is currently under consideration by parliament.

5.4.2 There are a number of tracks in the reserve that have been constructed by members of the public without Council’s approval. It is appropriate that the proposed Bylaw should not legitimise these.

Submission 2 from Mr Simon Jones (See Attachment 4)

5.5 Specific comments by Mr Jones:

5.5.1 Not sure why these controls are being done as a bylaw rather than the District Plan.

5.5.2 Seems to be a lot of overlap with existing management plans.

5.6 Decisions requested

5.6.1 Add an explanation at the beginning of the bylaw explaining the reason for the bylaw.

5.6.2 Bylaw needs to line up with and refer to existing management plans.

5.6.3 Start again.

5.7 Recommendations: Advise Mr Jones as follows:

5.7.1 That the Bylaw has section 5 ‘Purpose and Application’ that sets out the purpose of the bylaw.

5.7.2 The proposed Water Supply Bylaw is the first of the documents impacting the water supply activity to be presented to the community. The outcome of the consultation will help inform the review process of the others.

5.8 Reasons for recommendations:

5.8.1 The proposed bylaw does address the purpose of the bylaw.

5.8.2 The Nelson Resource Management Plan, the Conservation and Landscape Reserves Management Plan 2009 and the Urban Environments Bylaw (No. 225) are all in line for review by Council. The proposed water supply bylaw is the first to be reviewed and incorporates specific proposals for water source protection that will inform the review of these other documents.

5.8.3 Council believes the draft Bylaw, as amended by the Infrastructure Committee will meet the needs of the city until it is reviewed at some point in the next five years. The proposed water supply bylaw can generally be amended to reflect the specific concerns of submitters. It is not necessary to start the process anew.

Submission 3 from Nelson Tasman Cycle Trails Trust 27 April 2021 (See Attachment 5)

5.9 Specific comments by the submitter:

5.9.1 Clause 8.2(i). Where infrastructure is separated by physical barriers (lake or fence) the restricting of walking off-track seems illogical in terms of protecting the infrastructure. In zones 2 and 3 there are existing tracks close if not in the watercourse.

5.9.2 Clause 8.2(ii). Submits there is no greater risk from electric mountain bikes over non-motorised bikes in terms of protection of source water. Definition of what is an ‘existing track’ is not clear. Submits there are sufficient controls in the Reserve Management Plan and Resource Management Plan Designation DN3.

5.9.3 Accepts that there needs to be some control over new tracks but believes the Reserve Management Plan has sufficient clauses related to this.

5.9.4 Concerned that clause 8.2 of the draft bylaw appears to be creating a recreational strategy rather than protecting the water source.

5.9.5 Clause 8.3(vii). Submits there are already sufficient controls in the Dog Control Bylaw to control dogs in the water catchment.

5.9.6 Clause 8.3(viii). Definition of what is an ‘existing track’ is not clear. Suggests there is no reason to control walking/jogging off existing tracks outside of a reduced Zone 1.

5.9.7 Clause 8.3(ix). Supports premise for restrictions on the Maungatapu Road. However concerned that the clause appears to be determining a recreational planning strategy.

5.9.8 Clause 8.3(x). Concerned that requiring a permit for non-water supply construction or maintenance activities in the proposed bylaw may be inappropriate – considers that the Resource Management Plan Designation DN3 and the Reserves Management Plan adequately deal with this.

5.9.9 Clause 8.3(xi). Asks whether the content of this clause is covered in clause 8.2 and separately under the Health and Safety Act.

5.10 Decisions requested:

5.10.1 Clause 8.2 Clarify definition of ‘existing track’.

5.10.2 Clause 8.2(i) Amend wording of clause to read ‘Walking/jogging except in zone 1 where a permit is required’. Submitter comments – (this new zone should be redrawn to only include areas where there is a likelihood of risk to infrastructure).

5.10.3 Clause 8.2(ii) Amend wording of clause to read ‘Mountain biking on Council approved trails as per the provisions of the Reserves Management Plan’.

5.10.4 Clause 8.3(vii) Remove reference to ‘dog’ in the clause.

5.10.5 Clause 8.3(viii) Better define ‘existing track’ and restrict this clause to a reduced Zone 1.

5.10.6 Clause 8.3(ix) Amend wording of clause to remove reference to motorized bike.

5.10.7 Clause 8.3(x) Amend wording to remove the need for a permit for construction and maintenance activities not associated with the Nelson City Water Supply.

5.10.8 Clause 8.3(xi) Amend wording so clause does not just apply to maintenance contractors.

5.10.9 Substantially rewrite the parts of the bylaw related to source water so that it is not acting in isolation with other planning documents nor acting as a recreation strategy. This should be done in consultation with the affected user groups.

5.10.10 Any bylaw rules must take into account Council’s acceptance of existing types of use and should only be set in place if necessary and justifiable.

5.11 Recommendations:

5.11.1 Amend the wording of clause 8.2(i) to read ‘…on ~~existing~~ Council approved tracks’. Do not require a permit in zone 1 for walking /jogging on existing Council approved tracks.

5.11.2 Amend the wording of clause 8.2(ii) to read ‘Mountain biking ~~(non-engine assisted)~~ on ~~existing~~ Council approved tracks.’

5.11.3 No change to clause 8.3(vii).

5.11.4 Amend the wording of clause 8.3(viii) to read ‘Walking/jogging/mountain biking off ~~existing~~ Council approved tracks’. See also 5.3 above.

5.11.5 Amend the wording of clause 8.3(ix) to read ‘Driving a four wheeled motor vehicle ~~(including a motor cycle or motorised bike)~~ or any organised motor sport on the Maungatapu Track. (Note: This track is generally only suitable for four wheel drive vehicles and a $100 bond is required for the permit for four wheeled motor vehicles)’.

5.11.6 Amend the wording of clause 8.3(x) to read ‘Subject to 8.2(v) construction or ….’.

5.11.7 No change to clause 8.3(xi).

5.11.8 Add new 8.2(iii), (iv), (v) and (vi) to 8.2 to reflect specific existing activities currently being undertaken within the catchment. Clauses to read:

· (iii) Subject to 8.3(ix) hereunder, driving a motor vehicle (including a motor cycle) on the Maungatapu Track. (Note: This track is generally only suitable for four wheel drive vehicles.)

· (iv) Iwi carrying out activities in the reserves which are provided for in any legislation enacting Deeds of Settlement between Iwi and the Crown.

· (v) Activities required for the undertaking of Council water supply, road, track and facility maintenance, regulatory or scientific functions - not covered by (i), (ii) or (iii) above, where these have been authorised by Council, any regulatory consents granted and the caretaker has been consulted as to timing and location.

· (vi) Motor vehicle access on formed public roads.

5.11.9 Amend the wording of clause 8.5(ii) to read ‘ Depositing any contaminant (subject to 8.3(vi)), refuse or waste…..’

5.12 Reasons for recommendations:

5.12.1 Clauses 8.2(i) and (ii) and 8.3(viii) are common to submission 1. See 5.3 and 5.4. A permit is not considered necessary to walk or jog on Council approved tracks in any of the source protection zones.

5.12.2 There are a number of existing activities that are carried out in the catchment that should continue as long as they are authorised by Council. It is appropriate for other activities to obtain a permit for construction and maintenance activities.

Supplementary presentation from Nelson Tasman Cycle Trails Trust 3 June 2021 (See Attachment 6)

5.13 Specific comments by the submitter:

5.13.1 Risks – interference with infrastructure, contamination of water, sedimentation.

5.13.2 Flawed document.

5.13.3 Applying zones that have no meaning because of exemptions.

5.13.4 No explanation of exemptions and the rationale behind them.

5.13.5 Absolutes mean there is no clear path for assessment of effects.

5.13.6 Should not be a recreational planning document as this is the role of other documents.

5.13.7 Act says if it can be done elsewhere and it should be.

5.14 Decisions requested

5.14.1 Scrap the bylaw in its present form and only include things that cannot be dealt with in other planning documents.

5.14.2 Do not apply zoning that has 15,000 exemptions

5.14.3 Some possible rules:

· No access to areas indicated to protect infrastructure.

· No earthworks or tracks to be created that are not consistent with the Reserve Management Plan.

· No use of tracks except for the purpose specified in the reserve management plan or other City planning documents.

5.15 Recommendations: Advise the submitter:

5.15.1 The Reserve Management Plan and other City planning documents are primarily planning documents and are not specifically designed for direct enforcement actions. In the case of the Reserve Management Plan enforcement is through the reserves section of the Urban Environments Bylaw (No. 225) and for the Nelson Resource Management Plan enforcement is directly through the Resource Management Act 1991. The proposed water supply bylaw is a necessary means of identifying important issues and enforcing controls on activities that are carried out in the water supply catchments and the network.

5.15.2 The proposed bylaw seeks to accommodate community access to the reserve areas while providing necessary regulation of activities. There are no specific exemptions listed in the proposed bylaw but the permitted activities may well cover the actions of the majority of the visitors to the waterworks reserve and this is not inconsistent with the purpose of the bylaw.

5.15.3 With regards the proposal for some possible rules:

· Council will continue to monitor visitor behaviour and compliance with the bylaw and consider any necessary changes regarding restricting access at the next review stage.

· The Conservation and Landscape Reserves Management Plan was adopted in 2009 and the Urban Environments Bylaw (No. 225) in June 2015 – both prior to the significant water source issues that have arisen in New Zealand in recent years. Reviewing that plan and bylaw to reflect legislative changes in the three waters space is an important future work stream for Council. In the interim the proposed Water Supply Bylaw will better reflect the current thinking about water source protection.

5.16 Reasons for recommendations:

5.16.1 The proposed Bylaw is a regulatory document rather than a planning document. Generally planning documents require a separate enforcement tool.

5.16.2 The proposed bylaw strikes a reasonable balance between open access for any activity and controlled access for specific activities. This is appropriate given the importance of the water sources to the city.

5.16.3 The various planning documents that apply to the waterworks reserves are in line for review by Council. The proposed Water Supply Bylaw is the first on the list and will provide a framework for the others.

Submission 4 from Te Atiawa Manawhenua Ki Te Tau Ihu Trust. (See Attachment 7)

5.17 Specific comments

5.17.1 No specific comment about the Draft Water Supply Bylaw.

5.18 Decisions requested

5.18.1 No specific decisions requested about the Draft Water Supply Bylaw.

5.18.2 General suggestion that Contemporary Kaitiakitanga be integrated into all decision making.

5.19 Recommendations:

5.19.1 Thank the trust for its submission.

5.20 Reasons for recommendations:

5.20.1 No specific changes to the proposed bylaw were requested.

6. Options

6.1 Council has two options as set out in the following table. A third option is to make significant changes to all or part of the proposed Bylaw and begin a new consultation process. This option is not considered necessary for the following reasons:

6.1.1 The submissions received by Council largely focussed on only one section out of 32.

6.1.2 The proposed changes to this section (8 Protection of Water Source) introduce important concepts in water source protection while not un-duly restricting public freedoms to visit the waterworks reserves.

6.1.3 Some changes have been recommended to reflect submitters concerns.

6.1.4 The bylaw will likely be reviewed within the next five years in line with any central government legislation or if required by the three waters reforms.

6.1.5 The current bylaw ceases to be enforceable in December 2021 and must be replaced in advance of the summer period.

6.1.6 It is unlikely that any new proposed bylaw can be completed before the current bylaw lapses.

6.2 The two options presented to Council are therefore to adopt (with changes) or not adopt the proposed Bylaw. Officers support option 1.

Option 1: Adopt the Bylaw with suggested changes. Recommended option.
Advantages	· Allows the benefits from the proposed changes to be realised and improves the proposed bylaw. · Will allow bylaw to be in place before end of December 2021.
Risks and Disadvantages	· Nil.
Option 2: Do not adopt the Bylaw with suggested changes.
Advantages	· Reduces complexity of bylaw provisions.
Risks and Disadvantages	· Does not allow the benefits from the proposed changes to be realised. · A new Bylaw will not be in place by December 2021 leaving Council without the means to control activities within the source water catchments and the reticulation network.

7. Conclusion

7.1 The existing Water Supply Bylaw (223) – See Attachment 8 will lapse in December 2021. Making decisions on the submissions to the proposed new Water Supply Bylaw will enable it to be adopted by Council in good time.

Author: Phil Ruffell, Activity Engineer - Water Supply and Stormwater

Attachments

Attachment 1: A2385695 - Proposed Water Supply Bylaw (228) (Circulated separately) ⇨

Attachment 2: A2723242 - Water Supply Bylaw Report to Infrastructure R22546 (Circulated separately) ⇨

Attachment 3: A2646901 - Submission Nelson Marlborough District Health Board (Circulated separately) ⇨

Attachment 4: A2646901 - Submission Mr Simon Jones (Circulated separately) ⇨

Attachment 5: A2646901 - Submission Nelson Tasman Cycle Trails Trust (Circulated separately) ⇨

Attachment 6: A2717283 - Supplementary Information Nelson Tasman Cycle Trails Trust (Circulated separately) ⇨

Attachment 7: A2646901 - Submission Te Atiawa Manawhenua Ki Te Tau Ihu Trust (Circulated separately) ⇨

Attachment 8: A1323825 - Current Water Supply Bylaw (223) (Circulated separately) ⇨

Important considerations for decision making

1. Fit with Purpose of Local Government

The proposed Water Supply Bylaw responds to Council’s broad role in ‘promoting the social, economic, environmental and cultural well-being of the community’ by ensuring the public water supply is appropriately managed and operational rules are able to be enforced.

2. Consistency with Community Outcomes and Council Policy

The water supply bylaw supports the water supply utility in 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

The recommendations in the report will lead to a reduction in the current risk profile for the water supply activity.

There will still be some residual risks to the activity arising from people not complying with the bylaw.

4. Financial impact

There are no immediate financial impacts to Council from adopting the proposed bylaw. Any requirement to better protect vulnerable parts of the water supply will be considered in future financial years through the annual plan process.

5. Degree of significance and level of engagement

This matter is of high significance because of the regulatory nature of the proposed bylaw. As a result Council undertook an extended period of public consultation through a formal SCP prior in considering this report.

6. Climate Impact

The proposed bylaw seeks to protect both the raw water sources and the reticulated network from damage, wastage of water and activities that may impact water quality. Exercising reasonable control of these areas will minimise the amount of energy required to treat and reticulate water to the city and prevent the generation of additional greenhouse gases.

7. Inclusion of Māori in the decision making process

Copies of the proposed bylaw and Statement of Proposal were sent directly to iwi (via Te Ohu Taiao email address) as part of the consultation process.

8. Delegations

The Infrastructure Committee has the following delegations to consider the Draft Water Supply Bylaw.

Areas of Responsibility:

· Bylaws, within the areas of responsibility

· Water

Delegations:

· Reviewing and determining whether a bylaw or amendment, revocation or replacement of a bylaw is appropriate

· Undertaking community engagement, including all steps relating to Special Consultative Procedures or other formal consultation processes

Powers to Recommend (if applicable):

· Matters that, under the Local Government Act 2002, the operation of law or other legislation, Council is unable to delegate.

Council will also make all decisions on matters that must be exercised by Council or unable to be delegated by law. This includes, but is not limited to:

· The power to make a bylaw

As per 5.2.2 of Council’s Delegation Register, the Chief Executive, Mayor and the Committee Chairperson have confirmed that the matter be considered by Council due to the COVID-19 Alert Level constraints.

Item 11: Infrastructure Quarterly Report

Council

2 September 2021

REPORT R25907

Infrastructure Quarterly Report

1. Purpose of Report

1.1 To inform the Council of the financial and non-financial results for the fourth quarter of 2020/2021 for the activities under the Infrastructure Committee’s delegated authority.

1.2 To approve additional funding for key projects.

2. Recommendation

That the Council

1. Receives the report Infrastructure Quarterly Report (R25907) and its attachments (A2708002 and A2482475); and

2. Approves changes to the funding for the Airlie Street stormwater upgrade, to allow construction to be undertaken in the 2021/22 financial year as planned:

- unbudgeted additional capital funding of $300,000; and

- to bring forward $50,000 from 2022/23 into 2021/22; and

3. Approves unbudgeted additional capital funding of $250,000 for the Wastney Terrace stormwater upgrade to allow construction works to be undertaken in the 2021/22 financial year as planned; and

4. Approves unbudgeted additional capital funding of $226,000 for the relocation of the stormwater reticulation across the proposed Science and Technology Precinct, that will allow commencement of works to achieve completion by December 2021, noting that this will increase Council’s overall contribution to this project to $5.726M but that this could be offset from possible savings from the Wakatu Storage World stormwater project; and

5. Approves unbudgeted additional capital funding of $1.383M for stage 1 of the Washington Valley upgrade project, that will allow the award and commencement of stage 1 of the project (being Hastings Street) to be phased over two financial years – 2021/22 ($3.9M) and 2022/23 ($2.4M), noting that estimates for stages 2 and 3 will be refined as part of the Annual Plan processes.

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 June 2021) 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 41 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 quarter has again shown increased supplier costs particularly in the supply of pipes, with some reflecting an increase of 26% since March 2021. Price increases have also been registered in the supply of steel (pipes and structural) of up to 15% in July alone.

4.2 Overseas sourced product delays continue and the team have continued to explore early product purchases to mitigate potential start delays.

4.3 Additional funding has been requested in this report for four projects and the ever increasing costs from Covid-19 have a major role in the increased capital project costs.

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
Whakatu Drive s/w culvert	Donaldson Civil	$737,000
Tosswill to Tahuna s/w	Tasman Civil	$470,000

5.2 The Tenders Subcommittee approved the award of the following works, subject to the approval of the Long-Term Plan (LTP), which has since been approved. Both tenders have been awarded:

Project Name	Awarded to	Tender Price
Saxton Creek Stage 4 (Main Rd Stoke to sea)	Downer NZ Ltd	$16,218,114
Awatea road pump station	Hunter Civil Ltd	$6,770,578

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)

Capital Expenditure Infrastructure (excluding vested assets)

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.

6.1 As at 30 June 2021, Capital Expenditure is $3.0 million under the annual plan budget of $38.4 million. Level of Service is $2.4 million under budget, Renewals are $410,000 under budget and Growth is $275,000 under budget.

6.2 Transport

6.2.1 Subsidised Roading expenditure is less than budget by $458,000. Staff costs are under budget by $197,000 due to an accounting correction for support services allocation. Network and asset management condition inspections is under budget by $159,000 due to costs being transferred to capital and other programmes. Network and asset management is underbudget by $92,000 as it was not possible to deliver pavement strength testing in Q4. The work was deferred to Q1 of 2021-22 year.

6.2.2 Unsubsidised Roading income is less than budget by $137,000. Recoveries from Corridor Access are under budget by $114,000 due to the broadband fibre roll out now being completed earlier than expected which was not taken in to account when setting up the budgets. Waka Kotahi NZTA funding for Kawai innovative streets is also $29,000 under budget.

6.2.3 Parking Regulation income is greater than budget by $165,000. Infringement Fees are $195,000 over budget due to the new meters increasing fine activity.

6.2.4 Parking and CBD Enhancement income is greater than budget by $180,000. Off Street Meter Fees are over budget by $306,000 due to the installation of the new metres with on-street lollipop meters conversely being $64,000 under budget. Income from rent is under budget by $69,000 due to rental relief to tenants.

6.2.5 Millers Acre Centre income is less than budget by $58,000. Rental income is under budget due to rental relief of $45,000 that was provided.

6.2.6 Public Transport income is greater than budget by $828,000. Waka Kotahi income is $565,000 over budget, $212,000 due to unprogrammed expenditure for the response to COVID-19 and $350,000 from an additional budget request in December 2020 for the cost difference from shifting from a net contract to a gross contract and increased operational costs for running the Bee Card. TDC’s contribution to public transport is $157,000 over budget and Beecard revenue is $96,000 over budget.

6.2.7 Public Transport expenditure is greater than budget by $287,000. Unprogrammed expenditure of $212,000 for the response to COVID-19 has been incurred against a nil budget, however this is covered by additional Waka Kotahi income. Depreciation is over budget by $103,000 due to revaluations of bus shelters.

6.2.8 Total Mobility income is less than budget by $51,000. Costs are lower than expected so income is lower as a result.

6.3 Solid Waste

6.3.1 Transfer Station income is greater than budget by $108,000. Local Disposal Levies are $56,000 over budget due to increased activity leading to increased levies from landfill and Disposal Fees are $19,000 over budget. Sundry income is $17,000 over budget due to improved metal prices and new lease arrangements at the Nelson Waste Recovery Centre generating unbudgeted rental income of $20,000 over a nil budget.

6.3.2 Transfer Station expenditure is greater than budget by $108,000. Grounds maintenance is $49,000 over budget due to asphalt repair and road-marking. Building maintenance is $19,000 over budget due to Nelson Environment Centre and other additional maintenance. There was an unprogrammed Covid-19 response expenditure of $19,000 for a gate keeper to assist with tracing whilst at Alert Level 2 and above, that was unbudgeted.

6.3.3 Landfill expenditure is greater than budget by $147,000. Waste minimisation local disposal levy is $70,000 over budget and Transfer station local disposal levy is $51,000 over budget. Atawhai closed landfill costs are $20,000 over budget due to the installation of an additional gas vent at founder’s park.

6.4 Wastewater

6.4.1 Wastewater income is less than budget by $1,175,000. Commercial Trade Waste income is under budget by $321,000 due to an over estimation of annual flow volume when setting up the budgets.

6.4.2 The Return of Investment from NRSBU is under budget by $857,000, however this is a timing issue as the final figure is still being calculated. At the time of writing this report, the final figure is anticipated to be $288,000 under budget. This reduction in income is due to lower than budgeted interest rates.

6.4.3 Wastewater expenditure is greater than budget by $898,000. Due to the revaluation of assets, depreciation expense is $1,090,000 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.

6.4.4 Regional Sewerage (NRSBU): NCC share is under budget by $112,000 however this a timing issue as the final figure is still being calculated. At the time of writing this report, the final figure is anticipated to be $22,000 over budget.

6.5 Stormwater

6.5.1 Stormwater income is less than budget by $54,000. This is associated with the Three Waters Stimulus Grant and is directly linked with expenditure. This income will be received next financial year.

6.5.2 Stormwater expenditure is greater than budget by $496,000. Due to the asset revaluation, depreciation expense is $706,000 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 as at 1 July 2019. Three Waters Stimulus Grant is $54,000 underspent and will be spent in the next financial year.

6.6 Water

6.6.1 Water Supply income is greater than budget by $137,000. Commercial and Residential Water charges are $248,000 over budget due to increased commercial sales volumes compared with budget and prior year. The income associated with the Three Waters Stimulus Grant is $138,000 under budget. This income is directly linked with expenditure and will be received in the next financial year.

6.6.2 Water Supply expenditure is greater than budget by $425,000. Due to the revaluation, depreciation expense is $588,000 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 as at 1 July 2019. This over budget variance is partially offset by the under- budget variance in prelim Capex – investigations/options/testing of $46,000. Some projects/programmes associated with the Three Waters Stimulus Grant are underspent and will be transferred to next financial year or reallocated to other projects (Refer to Section 12 of this report).

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. Key work this quarter is detailed below.

7.2 Orphanage Stream flood mitigation works was hampered by wet weather, resulting in final tidy up and planting to be done after the end of June. However, the path and other works were completed before the end of the financial year.

7.3 Konini & Gloucester stormwater and watermain slipped into July, as a result of a late start to accommodate New World, with both finishing within the first couple of weeks of July.

7.4 Wakatu Stormwater upgrade got underway in June with directional drilling under the State Highway being undertaken successfully. It is likely that this project will have an underspend as open trenching was not required. The project is due for completion during the first quarter of 2021/22.

7.5 Tosswill to Tahuna stormwater renewal planned for completion in August.

7.6 The following work are complete:

7.6.1 Saxton Creek Stage 3 upgrade;

7.6.2 Hardy/Vanguard watermain renewal;

7.6.3 Arapiki Road retaining wall;

7.6.4 Rocks Road Stormwater pipe work;

7.6.5 Poorman Valley Stream shared path.

7.7 Speed control measures have been installed on a number of local roads and monitoring will inform the speed management plan currently under development. Installations have included speed humps on Seymour Avenue, Locking Street, and Karaka Street. Speed cushions have been installed on upper Toi Toi Street.

7.8 In conjunction with the speed control work on Seymour Avenue a widened pathway was created for shared use on the western side. This is a key active transport link from the Brook Valley to local schools and the city centre.

8. Airlie Street stormwater upgrade

8.1 The Airlie Street stormwater upgrade is to improve the level of service for its residents. The lack of stormwater reticulation means that in relatively low recurrence interval storms (Q5 storm events):

8.1.1 surface flooding within 20 adjacent properties occurs.

8.1.2 Airlie Street access to the NCC water reservoir serving the Glen, Cable Bay Walkway and Cable Bay Farm is also restricted.

8.1.3 that as a result of the surface flooding the road is being damaged.

8.2 The community requested that the upgrade be sympathetic to the rural nature of road and the design allows for a combination of open drains, bunding, swales and pipes.

8.3 The outfall from the road to the Glen beach is over a vertical drop of 12m, and as a result of this requires an engineered solution to prevent erosion of the bank. The solution opted for is an engineered rock lined swale with gabion baskets.

8.4 The current approved budget is $1.02M split over two financial years - $970,000 (2021/22) and $50,000 (2022/23). As part of Council’s streamlined tendering process officers have arrived at a revised construction price with a preferred contractor (that reflects Covid-19 price increases), and in order to commence this project this financial year, the following is required:

8.4.1 An additional $300,000 (which allows for a 15% contingency); and

8.4.2 To bring forward $50,000 from 2022/23 into 2021/22 financial year to enable works to be completed over this summer.

8.5 Work is expected to take 15 weeks and commencing work during summer is preferred to minimise risk of working on a damp embankment.

9. Wastney Terrace Stormwater Upgrade

9.1 The Wastney Terrace stormwater upgrade is a long running project involving the upgrade of the stormwater network from the southern end of Wastney Terrace to Corder Park. The primary driver for this upgrade is to enable future development within the surrounding area, with allowances for increased rainfall.

9.2 The proposed pipeline route involves going through multiple private properties and a shared right of way. Easements, after several years of negotiation, have been agreed and a resource consent is being secured so that work can commence on site in quarter two of 2021/22 financial year.

9.3 The current approved LTP budget is $1,550,000 (2021/22) and $100,000 (2022/23). As part of Council’s streamlined tendering process officers have arrived at a revised construction price with a preferred contractor and this requires an additional $250,000 in 2021/22 for the works to proceed.

9.4 The additional costs (16%) reflect an increase in material costs directly attributable to the effects of Covid-19 on the material supply chain.

10. Science and Technology Precinct

10.1 Council as part of the LTP, in order to provide Cawthron with a clean site to enable the commencement of their proposed Science and Technology precinct by December 2021, approved $2.8M to specifically relocate stormwater services that traversed the site. The total Council contribution to this project was $5.5M comprising the stormwater physical works, a $1.5M capital grant and a $1.2M loan funded capital grant.

10.2 Both detailed design and the resource consent for the proposed stormwater work has been fast tracked and a contractor, using Council’s streamlined procurement process, has been identified. In addition, all the concrete pipes have been ordered to mitigate Covid-19 supply line delays and increased costs.

10.3 Two issues have arisen during detailed design – contaminated soil and a portion of the historic 1840 seawall that will be affected by the proposed new stormwater pipe. With respect to the seawall, whilst Heritage NZ authority has been secured, the risk of working alongside this remains high.

10.4 During the detailed design, geotechnical investigations were undertaken to ascertain the suitability of soil to be used as either backfill material or possible disposal. Those soil tests have shown a higher degree of contamination of heavy metals (as a result of previous Port activity), meaning that the soil cannot be used on site but will need to be disposed of.

10.5 These, now quantified risks, mean that the contingency within the project has been reduced to around 6%.

10.6 Notwithstanding detailed design and officer comfort in the technical buildability of the physical work after close liaison with the selected contractor, officers are not comfortable with commencing physical works with a 6% contingency and feel that a contingency of around 15% to address unsuitable material and the seawall is more appropriate. This equates to an additional $226,000 for which approval is sought, bringing the estimated physical works cost to $2.76M and the total cost of the project to $3.02M.

10.7 Work on this project was meant to have already commenced and this request for additional funding will delay an already extremely tight timeframe necessary to provide Cawthron with a clean site by year end. The contractor is aware of this delay and is ready to commence work as soon as Council approves the additional funding. Officers note that achieving a clean site by December will be very tight, even with a clear run of weather, but will do whatever is possible to achieve this date.

10.8 The work of relocating the Council owned stormwater reticulation from the Cawthron site has enabled Council to future-proof its infrastructure in its new location thereby creating a resilient network.

10.9 The additional cost of the physical works will increase Council’s overall contribution to this project to $5.726M. These additional costs could potentially be offset from anticipated savings from the Wakatu Storage World stormwater upgrade project. Whilst these savings have not been fully realised, early indications are that savings of up to $300,000 are likely. Officers do not recommend waiting to see what these savings are before proceeding with the stormwater relocation works as this will delay a key project that is time bound critical. Final savings from the Wakatu project will be reported in the next quarterly report.

10.10 If the quantum of Wakatu stormwater savings are realised, they will adequately cover the additional costs for the Cawthron stormwater relocation work and will also go towards offsetting other costs on either the Wastney, Airlie or Washington Street stormwater projects.

11. Washington Valley Infrastructure Upgrade

11.1 The Washington Valley Infrastructure upgrade project is a multi-year, multi activity project and is a key project for this Council – it will enable intensification in this area, address inflow and infiltration issues, upgrade existing aging three water infrastructure and for stages 2 and 3 incorporate active transport initiatives. These are all Council LTP priorities.

11.2 The project is planned to be delivered over four financial years with an approved overall LTP three waters budget of $14.9M made up as follows:

2021/22 - $4,873,000

2022/23 - $5,253,000

2032/24 - $4,703,000

2024/25 - $ 108,500

11.3 As part of the LTP and after discussions with Waka Kotahi, the project was staged to take in to account the proposed re-sealing of Rocks Road. In order to minimise possible disruption to residents and overall city traffic flow, Hastings Street was assigned to stage 1, with future Washington Road upgrades as stages 2 and 3.

11.4 Hastings Street does not include for any roading upgrades and the current work is funded exclusively from the three waters budget. The figures in item 11.2, specifically for stage 2 and 3, exclude any roading and streetlighting funding component.

11.5 Hastings Street involves the upgrade of approximately 341m of stormwater pipes varying in size from 300mm diameter to 1,800mm diameter.

11.6 The cost to complete Stage 1 (Hastings Street) was estimated at $4,873,000 with construction anticipated to commence and be completed in Year 1 of the LTP over a 30-week period. When the project was at the developed design stage, selected tenderers were invited to comment on constructability, working in close proximity of the heritage trees, health and safety, timing and procurement of materials. This early work with contractors led to changes in the location and size of the sewer line that produced savings in trenching costs, improved health and safety around constructability but also revised the construction period from 30 weeks to a 40-week construction programme - meaning that the project is now expected to take place over both the current 21/22 financial year and 22/23 financial year.

11.7 Following completion of the detailed design, the revised estimate for the work is $6,256,000 (with a 20% contingency) - an increase of $1,383,000. The reasons for the increase in costs are as follows:

11.7.1 A change in alignment of the stormwater culvert which followed discussions with contractors to reflect ease of construction and to address health and safety concerns. The result of this new alignment is the need to relocate an existing water main (not previously envisaged) and the redesign of the sewer, which now includes for a dual system, namely a 225mm diameter collector sewer and a 375mm diameter trunk sewer;

11.7.2 An increase in construction period from 30 to 40 weeks with the resulting increases in preliminary and general costs;

11.7.3 Increase in traffic management costs for the extra 10 weeks on site;

11.7.4 Increased design fees following contractor discussions;

11.7.5 General across the board increases on material and installation costs as a result of Covid-19 – the effects of which due to the rapid changes, could not be foreseen by officers or consultants in preparing cost estimates, specifically:

· Increase by around 20% for large diameter concrete pipes and around 150% for small diameter concrete pipes;

· Increase between 10% and 150% in plastic pipes;

· Increase in steel prices by 15% in July alone.

11.8 It is almost certain that with cost increases experienced already (as a result of Covid-19) along with future unknown (but likely) Covid-19 increases, and with detailed design still to be undertaken for stages 2 and 3 that the final costs for these 2 stages will be more than that estimated in the LTP. Whilst officers are simply unable to accurately ascertain or predict the effects of any future Covid-19 potential cost increases going forward or keep ahead of the increases reaching us at the moment it is likely that the costs for stages 2 and 3 could rise as much as $4M based on the cost increases experienced to date. However, officers are hoping to be in a better position on this matter with revised estimates for the next 2 stages as part of the Annual Plan.

11.9 To keep this project moving, stage one is currently out to tender to secure a contractor. This process will enable Council to determine a price for stage one of the works before seeking approval and award through the Tenders Subcommittee.

11.10 In anticipation of this, officers request approval for additional budget of $1.383M towards this project (split roughly between sewer 35% and stormwater 65%), that will allow the award of the tender and for works to commence on site early January 2022. The proposed phasing of the stage 1 of the project is as below:

Phase	Financial Year	Amount	sewer/stormwater split
Phase 1 (62%)	Y1 (2021/22)	$3.9M	Sewer - $1.4M Stormwater - $2.5M
Phase 2 (38%)	Y2 (2022/23)	$2.4M	Sewer - $0.9M Stormwater - $1.5M
Total		$6.3M

12. Provincial Growth Funded Projects

12.1 Two projects remain to be completed but agreement with Department of Internal Affairs (DIA) has been reached to have these completed by September:

12.1.1 Eves Valley Planting – the planting has been completed, and remaining funds will be used on agreed removal of wilding pines and further track works.

12.1.2 York Valley Road resurfacing has been completed and truck wheel wash works are now scheduled to be completed by September.

12.1.3 The other two projects being the Raised table at Waikare Street/Beach Road and the Maitai path improvements work were completed in quarter three.

13. Three Waters Services Reform

Stimulus Package Update

13.1 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.

13.2 The roll out of the programme is an ongoing discussion with DIA. Key items to note during this quarter are as follows:

13.2.1 Re-allocation of budget from ‘3 Waters Roll Out - Discussion/ Collaboration’ on various projects - $246,500 to staff resources ($167,000), NWWTP Pond Management Improvements ($40,000) and Climate Change – Emission Reduction Strategy for Water Assets ($40,000).

13.2.2 The only significant issue is Council’s ability to fill current Asset Engineer vacancies which is proving very difficult in attracting suitable applicants. Officers anticipate this is a result of the uncertainty with job security associated with the Three Waters Reform. This additional funding will allow Council to second engineers from engineering consultancies.

13.3 A summary of the progress for all projects is summarised below:

PROJECT	TYPE	APPROVED FUNDING	UPDATED FUNDING	PROGRESS
General Programme
3 Waters roll out - discussion/collaboration	Opex	$300,000	$53,500	Placeholder funding. Requesting approval from DIA to reallocate savings
*General Programme Sub-Total*		*$300,000*	*$53,500*
Staff Resources		$388,683	$557,000**	Requesting approval from DIA to increase funds from savings.
*Staff Resources Subtotal*		*$388,683*	*$557,000*
Water Programme
Maitai Dam – Lindavia Testing	Opex	$40,000	$40,000	Funding fully spent - Completed
Climate Change – Emission Reduction Strategy	Opex	$30,000	$70,000**	First stage nearing completion. Additional funding reallocated from savings. Approx 13k to be transferred to next FY.
Water Pipeline Renewals Strategy	Opex	$30,000	$30,000	Ongoing. Approx 5k to be transferred to next FY.
Maitai Original Raw Water Pipeline Renewal Strategy	Opex	$60,000	$60,000	Ongoing. Approx 9k to be transferred to next FY.
Reticulation Water Quality Improvement and Pressure Management Strategy	Opex	$70,000	$70,000	Ongoing
*Water Programme Sub-Total*		*$230,000*	*$270,000*
Wastewater Programme
NWWTP Resource Consent Monitoring Programme	Capex	$200,000	$200,000	Funding fully spent - Completed
NWWTP Pond Management Improvements	Opex	$151,317	$190,000**	Funding reallocated from savings.
Awatea Road Pump Station	Capex	$3,538,458*	$3,538,458*	Tender awarded
Beach Road Wastewater Storage	Capex	$300,000*	$300,000*	Funding fully spent - Completed
Trade Waste Improvement Programme	Opex	$170,000	$170,000	Ongoing. Approx 11k to be transferred to next FY.
Wastewater Pipeline Renewals Strategy	Opex	$30,000	$30,000	Ongoing. Approx 14k to be brought forward from next FY.
Climate Change - Wastewater Network Heat Mapping	Opex	$30,000	$30,000	Nearing completion. Approx 11k to be brought forward from next FY.
Climate Change Emission Reduction Strategy	Opex	$175,000	$175,000	Ongoing. Approx 33k to be transferred to next FY.
Pump Station Data Collection, Storage and Use	Opex	$50,000	$50,000	Ongoing. Approx 2k to be transferred to next FY.
*Wastewater Programme Sub-Total*		*$4,644,775*	*$4,680,000*
Stormwater Programme
Condition Performance Assessment	Opex	$30,000*	$30,000*	Ongoing. Approx 10k to be transferred to next FY.
Stormwater Quality Strategy	Opex	$130,000	$130,000	Ongoing
*Stormwater Programme Sub-Total*		*$160,000*	*$160,000*
GRAND TOTAL		$5,723,458	$5,723,458

* Does not represent total project budget, only the external contribution from the Three Waters Stimulus Programme.

** Awaiting DIA approval.

14. Carry Forwards

14.1 A summary of carry forwards follows, showing the approved carry forwards through the LTP, along with the carry forwards requested after year end. Reasons for the carryover are provided after the table.

Project	LTP agreed carry fwd	Year-end carry fwd new or increased items in italics
Wastewater model calibration	$60,000	$60,000
Seafield Terrace construction	$25,000	$25,000
Mount/Konini St s/w & water	$100,000	$100,000
Washington Valley upgrade	$118,313	$118,000
Flood protection Jenkins Stream	$60,000	$60,000
Whakatu Drive s/w	$300,000	$764,000
Cawthron Crescent s/w upgrade	$45,877	$46,000
Tosswill s/w upgrade	$100,000	$356,000
Toi Toi s/w upgrade	$38,216	$38,000
Maitai Dam aeration		$27,000
Hardy Vanguard water upgrade		$100,000
Saxton Creek Upgrade Stage 3		$80,000
Bolt Road water upgrade		$70,000
Athol Street s/w improvements		$23,000
Wolfe Street sewer renewal		$29,000
Stansell Avenue sewer Renewal		$30,000
Stormwater Network Models		$22,000
Honey Tye Way s/w upgrade		$12,000
Private/Public s/w drains		$31,000
TOTAL	$847,406	$1,991,000

14.2 Hardy Vanguard watermain project was not fully completed during the last financial year, as local retailer New World requested a delay in the Island reinstatement, which linked to closure of Gloucester Street for stormwater and watermain work. New World wanted to ensure there was no impact on delivery truck access to their business. A carry forward of $100,000 is required to complete the works. There is also $100,000 to be declared as savings in this project.

14.3 Stansell Avenue sewer renewal project has been delayed due to an impasse on property owner negotiations. A further potential option has been identified but requires further design, investigations, and negotiations with different property owners. A carry forward of $30,000 is required to finalise the new potential option.

14.4 Wolfe Street wastewater detailed design was delayed due to contractor’s availability to undertake site investigations and $29,000 is required to be carried forward to allow detailed design to be completed.

14.5 Construction of the Whakatu Drive Stormwater project is in progress. Some delays have been incurred and whilst savings are anticipated, the project is not currently at a stage where contingency can be released. A carry forward of $764,000 is requested this quarter. It is anticipated that by the end of the first quarter in 2021/22 the degree of savings will be able to be confirmed and re-allocated to other projects.

14.6 Tosswill stormwater has been delayed several months due to clashes with unidentified services, resulting in a significant redesign, and a change in contractor was required due to the timing change. The project is now under construction and will be completed by the end of the first quarter in 2021/22. A carry forward of $356,000 is requested to complete construction.

14.7 The Maitai Dam aeration project scope has increased with requirements for additional research to better understand the risks of Lindavia that has been detected in the dam. This has resulted in some of the modelling work being deferred into 2021/22 requiring a carry forward of $27,000 to complete the modelling work that will allow detailed design to proceed.

14.8 Athol Street stormwater upgrade work is scheduled to commence in 2021/22. A sum of $23,000 is required to be carried over to supplement the 2021/22 budget of $60,000 that will allow construction works to commence.

14.9 Nelmac was unable to procure specialised pipe fittings in 2020/21 for the construction of the Bolt Road watermain and $70,000 is required to be carried over into 2021/22 to purchase the necessary equipment to allow completion of the works.

14.10 Saxton Creek Upgrade Stage 3(C) was delayed due to some last-minute landowner concerns that required works to be stopped for a period of time. Resolution has been achieved and the works have continued into the 2021/22 financial year and a carry forward of $80,000 is required to finalise the project works.

14.11 Stormwater network models – An amount of $22,000 is required to be carried over to 2021/22 to enable the stormwater network modelling for Central Nelson is to be completed.

14.12 Nayland Road/Honey-Tye Way stormwater upgrade – Due to a delay with contractor availability, a carryover of $12,000 is required to complete this minor stormwater project in 2021/22.

14.13 Private Public Stormwater Drains – The wet weather events that have occurred during the last quarter and into Q1 of 2021/22 have led to the identification of a number localised capacity issues with the stormwater network. To assist with implementing localised improvements, a carryover of $31,000 is required to finish work initiated in 2020/21.

15. Status Report Update

15.1 Sandbags

To inform a future Infrastructure report, officers will investigate what policy and practice other 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).

16. LTP 2021-31 decision feedback

16.1 The following decisions were made when the LTP was approved with relevant officer comment:

Item	Council resolution	*Comment*
Awatea Place wastewater pump station upgrade	Approves provision for up to an additional $1.2 million in Year 2 of the Long Term Plan 2021-31 to meet potentially higher than expected costs for the upgrade of the Awatea pump station.	No further action. Contractor appointed.
Saxton Creek Stage 4	Approves provision for up to an additional $4.3 million, being $2,520,000 in Year 1 and $1,750,000 in Year 2 of the Long Term Plan 2021-31, to meet potentially higher than expected costs for the completion of stage 4 of the Saxton Creek project.	No further action. Contractor appointed.
Ariesdale Terrace	Approves bringing forward $40,000 from Year 5 and $40,000 from Year 6 for the Ariesdale Terrace project to Year 1 and Year 2 of the Long Term Plan 2021-31.	Officers will be commencing investigations in Q2 of 21/22 financial year.
Landfill fees and charges	Notes that no change is proposed to the 20% increase in Nelson Tasman Regional Landfill Business Unit fees that was consulted on.	No further action. Fees and charges in effect and publicised on website

17. Commentary on operational projects

17.1 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.

17.2 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.

Wet Weather Events

17.3 Through the last quarter and into Q1 of 2021/22, the Top of the South has experienced numerous prolonged periods of wet weather. The impacts from these weather events have been less severe on Nelson when compared to neighbouring districts in the Top of the South, but nonetheless disruptive on work programmes.

17.4 The Transport, Three Waters and Rivers/Stream networks have typically performed well during these wet weather events. The most noticeable issues have been localised landslides in Council roading, and utilities reserves and localised flooding from the stormwater network. Rocks Road was closed on 17 July due to tidal surges and a section of the footpath was damaged and is currently under repair by Waka Kotahi.

17.5 An intense thunderstorm on 5 August put the wastewater network under significant stress. During this event, overflow alarms were triggered at five wastewater pump stations. Following a physical inspection of these pump stations, there was no visible evidence to suggest these pump stations did overflow. However, as a precautionary measure, Council initiated the necessary water sampling within the surrounding environment, notified iwi, key stakeholders and erected warning signs.

Stormwater

17.6 Ecosol Litter Basket Update – A trial using an in-sump stormwater device that traps sediment and litter is underway within the city centre. The first round of sampling has been completed and though it’s unclear how effective these devices are, initial results show contaminants are being captured. This trial will be ongoing for the foreseeable future to yield more information on the performance of the devices, stormwater quality variation/trends and potential sources of contaminants.

Solid Waste/Waste Minimisation

17.7 During the fourth quarter, delivery of the final round of the waste minimisation grants trial took place with grants awarded to Bridge Valley for reusable lunch boxes for the school lunch programme at Stoke School, Tahunanui Community Hub for an engagement wall, and RefillNZ for a Nelson-focused refill campaign.

17.8 During this quarter officers worked with TDC to complete an Expression of Interest Statement (EOI) to the Ministry for the Environment’s (MfE) Waste Minimisation Fund to support diversion and reprocessing/reuse of building waste from new-build and demolition/deconstruction sites. In late July MfE advised this EOI for funding from the Waste Minimisation Fund 2021 funding round had been approved to go to the next stage. MfE have indicated support for the capex component of this work and have suggested that Council collaborate with local community and projects looking at creating secondary markets for C&D waste. However, a significant component of the application was to create industry change through builder and industry engagement, to include Matauranga Maori, and to establish industry practice which did not require ongoing subsidies or council funding. As the capex component would not be as effective without the opex component, officers will review how these ambitions can be achieved. At the time of report writing Council officers are preparing a full application for submission in August.

17.9 Waste minimisation activity included support for increasing availability of repair cafes, with an inaugural ‘Fix It Saturday’ event run by Council, and additional repair cafes supported through round 2 of the waste minimisation grants programme.

17.10 Delivery of workshops and activities such as Second-hand Sunday continue, and work has been undertaken to embed waste minimisation as business as usual in the delivery of Council events and facilities.

17.11 Update on soft plastic recycling: The soft plastic recycling scheme is run by the Packaging Forum. The initial national programme set up two years ago collapsed under the volumes of soft plastic presented for recycling. As a result, the scheme is being relaunched one city at a time. Officers are staying in touch with the market and support the scheme being reintroduced here as and when the Packaging Forum have capacity.

17.12 The kitchen waste trial is progressing well and will conclude in February 2022. At present the results are in line with what was anticipated, and this indicates that a city-wide kerbside collection is viable. In anticipation of that, officers will be preparing an Expression of Interest for a collection and processing service. This is a preparatory step to advise and gather information from potential service providers. A full report will be bought to a future committee meeting to decide on next steps.

17.13 Recycling collection changes occurred on 1 July 2020 when Council changed the policy on plastic recycling, collecting only types 1, 2, and 5 at the kerbside. The goal is to ensure that our plastic is recycled within New Zealand. Officers have examined the full set of 12 months data since changes were made and the analysis shows the community has adapted to the new rules, and compared to other regions, our contamination levels are low. However, the markets for plastics are very dynamic, and domestic recyclers who process plastics may reach capacity to process onshore. Our contractor has signalled that they may need to send some pure stream material for plastics 1, 2 and 5 (ie only one type of plastic) to good quality markets overseas. Presently only paper and cardboard are exported, but in the future some plastics may need to be exported for processing. Unlike the mixed bales these would be high-value bales of a single type of plastic, and officers are confident they will be properly recycled.

17.14 Batteries are becoming an increasing hazard due to fires caused by compaction in trucks and landfill, with lithium-ion batteries from personal devices and boat flares being a particular issue. A Rethink Waste ‘Don’t Bin Batteries’ programme is being designed in collaboration with Tasman District Council and the NTRLBU to encourage the public to divert all batteries from recycling and rubbish bins.

Transport

17.15 Council’s Transport Operations team has secured a global resource consent to undertake road maintenance activities at night. The main activities include road resurfacing, line marking and road sweeping. Councils’ annual night works programme will be published on our website, which will cover up to 20 resurfacing sites per year. This financial year, some of the sites identified for nightworks include Saxton Road/Main Road Stoke roundabout, Saxton Road West, and Trafalgar Street north. Officers are currently working through the planning of this these sites with contractors.

17.16 Bus patronage – During the fourth quarter bus patronage patterns have increased compared to the third quarter. Annual patronage to 30 June was about 364,000 which is close to 100% of last years’ patronage and 85% of the 2018-19 pre Covid-19 year. Bee Card use accounts for 88% of all bus trips, and cash fares 12% showing a good uptake of electronic ticketing.

17.17 Bus funding - Waka Kotahi has indicated funding support for the continuous programme of public transport. At this stage that does not include funding for the improved public transport service planned for 2023. The funding allocation provided includes a nominal amount to cover any fare revenue shortfalls or extra costs due to Covid-19. Cleaning of high touch surfaces on the bus service has been pared back but does remain in place. This cleaning will be escalated if Covid alert levels increase, and any extra costs are unbudgeted.

17.18 The Total Mobility subsidy increase came into effect on 1 July 2021 which raised the maximum subsidy from $10 to $15 per trip. All Total Mobility contracts with agencies and operators were updated to reflect this.

17.19 Innovative Streets Nelson South project has wrapped up. Phase 2 was focused on improving the active transport corridor along Tipahi Street and included road narrowing using gateway treatments and planter boxes, road art and improved connection to the railway reserve through the newly created pollinator park. Early monitoring of speed and traffic volume shows a 50% reduction in volume and a 30% reduction in speeds on Tipahi Street. Part of phase 2 introduced a bike library scheme to Nelson Intermediate which is a nationwide first for this type of initiative. A full report on the Nelson South trial will be bought to a future committee meeting.

17.20 Work on the Parking Strategy continues with meetings having been held with city centre businesses and landowners taking place alongside the city centre spatial plan engagement. Meetings with the Tahunanui and Stoke communities and other stakeholders are planned for September.

17.21 During the fourth quarter the Active Transport and Speed Management reference group has met twice (24 May and 21 June). A third meeting was held in August. This group is proving valuable in assist with development of Council strategies.

17.22 Road safety/ Travel Demand Management

17.22.1 Bikes in Schools. Professional development was provided for NCC and TDC based teachers with the overall goal of getting schools to use the previously funded bike fleets and tracks more efficiently. The day included practical lessons and shared curriculum links and ideas about how cycling and the track use can be further integrated into wider learning.

17.22.2 Council supported a Police initiative with a road safety presence at a Stoke School event designed to create positive Police interactions with students and whanau.

17.22.3 School Travel Planning. During term 2 Council ran a comprehensive travel challenge with Nayland Primary School. The percentage of students using an active mode during the challenge increased by 20%. Follow up work continues with the school. There has also been a focus on the Victory Kindergarten where officers have worked with the kindergarten community to encourage parents to park further away and walk their tamariki to kindergarten.

17.22.4 Cycle visibility. During cold, dark winter months officers worked with Police to host ‘bike light stops’ for cyclists during peak commuter times at a number of locations across the network. Unlit cyclists were grateful for the lights and vests received.

17.22.5 Child Restraint Campaign. During June Council partnered with TDC and a local car seat provider and offered parents the ability to take any car seat for professional fitting. It was found that 98% of seats checked needed some sort of adjustment. Council also worked with the car seat provider and Victory Kindergarten to provide subsidies to whanau without car seats.

17.22.6 Driver Licensing Support. Council contracts a qualified driving instructor to run four driver license courses per year targeted to high-risk groups. Each four-day course covers learning the road code and enables participants to develop the skills to pass their learners license test, which is undertaken at the end of the course. A total of 60 learner drivers went through the courses in the 20-21 financial year and a 90% pass rate for licenses achieved.

17.22.7 BikeReady Cycle Education. In partnership with TDC Council contracts Sport Tasman to deliver cycle education to schools across Nelson and Tasman. In the last financial year 2810 primary school aged students participated in a Grade 1 (basic skills and handling), and 916 intermediate aged students participated in a Grade 2 lessons under Waka Kotahi’s national Bike Ready programme. 625 students also participated in other cycle safety opportunities (Clued Up Kids, Intermediate Rides etc). Over 385 year 1 and 2 students participated in Scooter Safety sessions, which includes road crossings, looking for ‘sneaky driveways’ on footpaths , balance and braking. In the area of Adult Cycle Education, new providers have been delivering our adult cycle education since January 2021. In that time, they have delivered 30 hours of cycle education over 11 sessions. Lessons delivered follow the BikeReady curriculum and offer Grade 1 and 2 lessons to adults.

17.22.8 Older Drivers. Age Concern Nelson-Tasman continues to deliver older driver support to our community under contract from NCC. In the last year:

· 130 older adults attended Staying Safe Courses- this is a refresher on the NZ road code, including changes to road rules and local roads, intersections and how to navigate them.

· 20 older adults attended CARFIT sessions where a contracted occupational therapist adjusts mirrors, steering wheel, seat position etc to allow the driver to be in a safer and more comfortable position in their car.

· 120 older adults attended “Life Without a Car” sessions which are designed for those that may be facing or who have already made the decision to discontinue driving. This programme provides tips and tricks on maintaining independence and the ability to get around.

14.21.9 Council also supports 1:1 mobility scooter training to people purchasing mobility scooters. In recent months this support has extended into a seminar run in an aged facility for those considering purchasing a mobility scooter.

18. Risks

18.1 Several risks remained front of mind through this last quarter and are expected to continue during the next financial year. 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:

18.1.1 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 during the financial year.

18.1.2 Delays on material delivery (local and overseas) is a very high risk and has now been realised, with price increases and supply chain issues. As noted last quarter, costs of pipes has increased from a 9% increase up to 26% and officers are also noting more products are taking longer to secure.

18.1.3 Nurseries and planting contractors have raised concerns in terms of meeting forward future work (21/22 and 22/23) due to the high requirement across all sectors for plants.

18.1.4 Market buoyancy leading to inability to secure resources in a timely manner.

18.1.5 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 has signalled that the 2024-27 National Land Transport Fund (NLTF) has significant financial pressure. Officers have received notification regarding funding for continuous programmes such as maintenance, operations and renewals, and although not the full amount requested, is sufficient for Council to maintain existing levels of service. With regard to minor improvement work, including public transport, officers expect to have an indication of funding subsidy levels in August/ September 2021.

18.1.6 Staff within the Infrastructure Group are continuing to experience prolonged periods of high workloads. This is anticipated to continue for the foreseeable whilst officers are needed to provide additional support for unplanned/re-active work including the Three Waters Reform and Infrastructure Acceleration Fund as well as input into existing programmed work such as the Nelson Plan, Future Development Strategy, Land Development Manual and other cross Council projects/Government initiatives.

19. Key Performance Measures

19.1 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

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

19.3 Overall 27 out of the 35 performance measures can be confirmed as being achieved for the end of the financial year.

19.4 For utilities, one performance measure was not achieved within the Flood Protection activity, ‘Develop risk based Maitai flood response options – Community engagement on response options.

19.5 As previously mentioned in Q3 Report, officers ran a public workshop at the Infrastructure Committee on 11 February 2021. Following this workshop, public consultation 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 3 of the 21/22 FY.

19.6 One of the seven transport measures was achieved, five not achieved, and one not measured. Details are provided below as to those not achieved.

19.6.1 The road safety measure for transport was not achieved. There was one fatal crash and 18 crash events resulting in serious injury on the local road network in the 2020/21 year. The number of crash events exceeds the previous year so the reduced target has not been met. Safety is a priority through the 2021-24 Transport Asset Management Plan and Waka Kotahi funding programmes. Work is underway to better understand and manage the risks.

19.6.2 The smooth travel exposure target has been met on Regional and Arterial roads but dips just below targets for Primary and Secondary Collector roads, Access roads and Low Volume roads.

19.6.3 The past footpath surface quality measure is no longer fit for purpose and was not carried out this year. A new survey criteria was developed to match the 2021-24 AMP criteria. Surveys now score not only on surface condition, but also path width and crossfall at driveways. This guides the forward renewal programme and enables the early progress on addressing low levels of service at those sites. Results from the broader inspection criteria cannot be separated out to provide a direct comparison for the KPI. In the absence of a direct comparison measure officers are however confident our footpath condition is not deteriorating. Both the 2017/18 and 2018/19 surveys demonstrated that Council achieved the performance measure and a continual programme of footpath improvement work has been carried out since.

19.6.4 The Nbus patronage growth measure was not achieved. Nbus patronage to the end of June 2021 is 16% below 2017/18 baseline. A decline in bus patronage has been noted nationally since Covid-19.

19.6.5 The walking and cycling measure for transport as measured by the Nelson residents’ survey was not achieved. Twenty percent of respondents indicated they journeyed to work by walking or cycling which is short of the 21% target. However, this is an increase from 16% reported at the end of 2019/20. Even more encouraging is the 2018 census survey result which showed the number of Nelson students cycling or walking to education facilities exceeds national percentages with a combined total of 37.2% locally compared to 24.1% nationally.

19.6.6 The percentage of transport service requests responded to within 5 working days dropped to 75% over 2020-21. The target of at least 80% was not met due to competing demands on officer time.

19.7 Two of the three solid waste measures were achieved relating to e-waste and composting. One measure was not achieved relating to volumes of waste to landfill. Allowing for an artificially low result in 2020-21 due to Covid, figures have been compared to the previous year but still show an increase. This indicates that the increase was post-covid property improvements and construction. This is supported by the nationwide trend in these activities.

20. Year-end achievements

20.1 The 2020/21 financial year has been a very busy but productive and satisfying year. Capital spend has been the best to date with an actual spend of $35M compared to a budget of $38.4M.

20.2 In addition to this, the requested carryover is around $1.9M, mainly resulting in delays from wet weather and material procurement delays from Covid-19.

20.3 Key end of year achievements include (in no particular order):

· Finalisation of the Infrastructure Strategy;

· All Activity Management Plans to guide the Long Term Plan;

· Innovative Streets Nelson South (3M Traffic Safety Innovation Award);

· Seafield Terrace road reinstatement and revetment work (Civil Contractors New Zealand (CCNZ) award winner – Taylor Contracting);

· Poorman Stream shared path (CCNZ award winner - Nelmac);

· Anzac to Maitai Shared path (CCNZ award winner – Downer (H&S));

· Numerous successful central government funding;

· Commencing Water and Wastewater Bylaws;

· Saxton Creek stage 3 completion and design/consenting on Saxton Stage 4;

· Railway Reserve underpass;

· Tahunanui Cycleway project;

· 896m of new footpaths, plus Snows Hill footpath improvements;

· 1.95km of new shared paths;

· 2.8km of new separated cycleways in Tahunanui;

· 2.8km of footpath renewals;

· Resurfacing programme comprising 15.9 lane km in chip seal and 1.8 lane km in asphalt;

· 1.4 km of kerb, channel and dished channels renewed;

· BEE Card successful launch and implementation;

· Parking meter renewal;

· Champion Drive stage two road entrance;

· PGF funding and completion of Waikare street raised table/Maitai pathway;

· Inner city and Homezone safer lower speed limits;

· Main Road Stoke cycleway improvement;

· Pedestrian refuge on Franklyn Street;

· Commencement of the Parking Strategy;

· Bus review to inform the Regional Public Transport Plan (RPTP);

· Completion of the Regional Land Transport Plan and RPTP;

· Inner city bike stands;

· Work on Waka Kotahi Procurement strategy;

· Curtis Street/Monaco View new shared path and bridge;

· Arapiki Road retaining wall;

· Seaview Road weir and gravel removal from underpass;

· Road safety programme delivers over 3000 students through cycle and scooter skills training, 275 older driver refreshers, and ongoing work with police and other road safety partners to deliver messages regarding speed, child restraints, motorcycle safety, distracted and drunk driving;

· Successfully secured Fix-it-Fast funding from NZTA to update and improve signage on many of our shared paths and cycle routes;

· Traffic calmed Locking Street and Toi Toi Street;

· Convening of Project Reference Group comprising community group representatives to develop an Active travel Strategy and Speed Management plan;

· Commenced organic food waste kerbside collection trial;

· Changes to which plastics are collected at kerbside;

· Launch of Rethink Waste programme including compost workshops, second-hand Sunday and Repair cafes;

· Trial of waste minimisation grants and grants for waste minimisation at events;

· New contract for Nelson Waste Recovery Centre (NWRC) and bringing the Kiosk operation back under Council management;

· Initiation of waste reduction programme through support for deconstruction over demolition;

· Continuation of water meter renewal roll-out with 6,000 new meters in 20/21, bringing total installed to 11,000 to date;

· Several significant water main renewals – Hardy Street, Taupata and Melrose;

· Gracefield sewer diversion;

· Beach Road storage chamber;

· Award of Awatea pumpstation upgrade;

· Stormwater upgrades in Mount Street, Emano Street; Rocks Road; Tosswill Road, Bisley Avenue, Nile Street, Kauri Street; Te Manu Reserve; Konini Street and Gloucester Street;

· Whakatu Drive (Storage Works) flood protection;

· Orphanage Stream stormwater protection.

21. Options

21.1 There are four matters to be discussed – Additional funding for:

· Wastney Terrace Stormwater upgrade;

· Stage one (Hastings Street) Washington upgrade;

· Science and Technology Precinct Stormwater upgrade;

· Airlie Street Stormwater upgrade.

21.2 The options for each are presented below.

21.3 Additional funding for Wastney Terrace stormwater upgrade. Approve or not approve. Officers support option 1.

Option 1: Approve the additional funding for Wastney Terrace. Recommended option
Advantages	· The additional funding will allow the award of the project with sufficient contingency.
Risks and Disadvantages	· The additional budget is unplanned and will increase Councils overall capex budget for 2021/22.
Option 2: Do not approve the additional funding for Wastney Terrace
Advantages	· No increase in overall budget
Risks and Disadvantages	· There will be insufficient money to allow this project to continue.

21.4 Additional funding for Stage 1 (Hastings Street) Washington Upgrade. Approve or not approve. Officers support option 1.

Option 1: Approve additional funding for Stage 1 Washington Valley Infrastructure upgrade. Recommended option.
Advantages	· The additional funding will allow the award of the project with sufficient contingency.
Risks and Disadvantages	· The additional budget is unplanned and will increase Councils overall capex budget for 2021/22 – 2022/23
Option 2: Do not approve additional budget.
Advantages	· No increase in overall budget
Risks and Disadvantages	· There will be insufficient money to allow this project to continue.

21.5 Additional funding for Science and Technology Precinct. Approve or not approve. Officers support option 1.

Option 1: Approve additional funding for Science and Technology Precinct Stormwater Upgrade. Recommended option.
Advantages	· The additional funding will allow the award of the project with sufficient contingency. · Enables the Science and Technology precinct to continue.
Risks and Disadvantages	· The additional budget is unplanned and will increase Councils overall capex budget for 2021/22.
Option 2: Do not approve additional budget.
Advantages	No increase in overall budget
Risks and Disadvantages	· There will be insufficient money to allow this project to continue. · May jeopardise the viability of the Science and Technology Precinct.

21.6 Additional funding for Airlie Street Stormwater Upgrade. Approve or not approve. Officers support option 1.

Option 1: Approve additional funding for Airlie Street Stormwater Upgrade. Recommended option.
Advantages	· The additional funding will allow the award of the project with sufficient contingency.
Risks and Disadvantages	· The additional budget is unplanned and will increase Councils overall capex budget for 2021/22
Option 2: Do not approve additional budget.
Advantages	· No increase in overall budget
Risks and Disadvantages	· There will be insufficient money to allow this project to continue. · Risk of future flooding to surrounding area

Author: Lois Plum, Manager Capital Projects

Attachments

Attachment 1: A2708002 - Infrastructure Q4 - One Page Reports ⇩

Attachment 2: A2482475 - Infrastructure Q4 - Performance Measures ⇩

Important considerations for decision making

1. Fit with Purpose of Local Government

All construction projects are part of the current LTP, meeting the requirements of fit with purpose of Local Government. The project meets all the well-being’s in the areas of environmental, economic, cultural, environment and social.

2. Consistency with Community Outcomes and Council Policy

The recommendations in this report fit with the following community outcomes:

· 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, and resilient

· Our Council provides leadership and fosters partnerships, a regional perspective, and community engagement

3. Risk

If additional budgets are not provided for the projects in this report, the projects won’t have sufficient budget to proceed.

4. Financial impact

Additional budget not currently in the LTP is required to progress the projects.

5. Degree of significance and level of engagement

All projects were consulted on as part of the LTP and with the individual landowners.

6. Climate Impact

The primary driver for this upgrade is to enable future development within the surrounding area, with allowances for increased rainfall.

7. Inclusion of Māori in the decision-making process

No engagement with Māori 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 to Council:

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

Option 1: Adopt the TAMP. Recommended option.
Advantages	· Supports Council to meet requirements under section 93 and Schedule 10 of the Local Government Act 2002 (LGA). · Supports delivery of recently adopted LTP 2021-31
Risks and Disadvantages	· Nil
Option 2: Do not adopt the TAMP
Advantages	· Nil
Risks and Disadvantages	· Not adopting the TAMP would leave Council without a clear plan to mitigate risks and achieve levels of service.

Option 1: Adopt the final SWAMP. Recommended option.
Advantages	· Supports Council to meet the requirements under section 93 and Schedule 10 of the Local Government Act 2002 (LGA). · Supports delivery of the recently adopted LTP 2021-31.
Risks and Disadvantages	· Nil
Option 2: Not adopt the final SWAMP
Advantages	· Nil
Risks and Disadvantages	· Not adopting the AMP would leave Council without a clear plan to mitigate risks and achieve levels of service.

Option 1: Adopt the Bylaw. Recommended option.
Advantages	· Ensures the ability to regulate and manage discharges to the wastewater network. · Will allow Bylaw to be in place before end of 9 October 2021.
Risks and Disadvantages	· Nil.
Option 2: Do not adopt the Bylaw.
Advantages	· Nil.
Risks and Disadvantages	· Does not allow the benefits from the proposed changes to be realised. · Does not ensure the ability to regulate and manage discharges to the wastewater network. · A new Bylaw will not be in place by 9 October leaving Council without the means to control activities within the reticulation network