Agenda of Engineering and Services Committee Meeting

Engineering and Services Committee Meeting Agenda 20 April 2021

5.2 Asset Manager's Report

Author: Bernie Haar, Engineering Manager

Authoriser: Tim Harty, General Manager Operations

Purpose of Report

This report is to update the Assets and Services Committee on the progress of various projects and the normal operation of the department for the past month.

Staff Recommendations

1. That the report be received.

GENERAL

Resource Consents

Resource consents continue to be lodged that require input from the engineering team prior to being granted. Another stage for Mackenzie Park in Twizel has been lodged and Stage 6 for Tussock Bend in Twizel is close to being lodged.

Fairlie Skate Park

The project management of the new Fairlie Skate Park has been managed by the Engineering Team.

The project was completed within budget and was officially opened on the 1^st April 2021. The park has been very popular with the locals and e have also noticed the travelling public have been spending extra time in Fairlie whilst their young family members use the skate park.


Official Opening

Covid Recovery Packages

Staff continue to support the Project Manager for this project over the last month. The focus has been getting the contract in place for the start of stage 1 of the watermain replacements. Also there has been 4 separate contracts let for the shared use paths projects. Staff have been involved in evaluating contractors, letting the work to four different contractors, and then participating in pre contract start up meetings. Council staff in Twizel will be monitoring the contract performance of the various contracts.

Shared Use Path in Ohau Road, Twizel

Site Inspection Audits

Staff have increased the frequency of site auditing on Councils main maintenance contracts, with the recent results outlined below:

Roading	Location	Any issues	Corrective Action	Comments
Whitestone Contracting	Regent Street	N/A	N/A	Correct TTM as per TMP, Unmanned site at the time of inspection
Whitestone Contracting	School Road	N/A	N/A	No work being undertaken due to weather conditions but correct TTM
Whitestone Contracting	Talbot Road	N/A	N/A	Unmanned site, no work due to bad weather, Correct TTM in place
Whitestone Contracting	School Road	N/A	N/A	Unmanned site, concrete was setting, Correct TTM in place
Whitestone Contracting	Hamilton Street	N/A	N/A	Concrete was setting in boxing, correct TTM in place
Whitestone Contracting	Talbot Road	N/A	N/A	Site recently sealed, two cones in place to protect seal
Whitestone Contracting	Morris Road	N/A	N/A	Recently graded road, material also being laid in places, 30km speed signs in place, correct TTM

Community Facilities	Location	Any issues	Corrective Action	Comments
Whitestone Contracting	Village Green	N/A	N/A	Safe site, worker was doing a really good job tiding the path and surrounding area
Whitestone Contracting	Village Green	N/A	N/A	Mowing services being undertaken,
Whitestone Contracting	Nixons Road/SH8	N/A	N/A	Removal of tree damaged in the wind on weekend, safe site, correct procedures,
Whitestone Contracting	By Skate park/Village Green	N/A	N/A	Tiding mess from fallen tree, raking the ground etc


Other	Location	Any issues	Corrective Action	Comments
Civil Concrete Ltd	Fairlie Skate Park	N/A	N/A	Site Safe, Unmanned site, Whitestone have tidied the site up as it was very rough,
Whitestone Contracting	Clayton Road - Private works	N/A	N/A	Shoulder closed, vehicles off the road safely, Correct PPE worn
Geraldine Signs	Main Street	blocked footpath, forced pedestrians onto road	Spoke to young guy he then left	Spoke to the young guy installing the sign, he was leaving due to wrong sign but was advised how to set up site if he returned
Civil Concrete Ltd	Fairlie Skate Park	Concrete pump was blocking footpath,	advised the skate park staff not acceptable	Asked our contractors to drop some footpath closed signs off to remediate the situation,
Civil Concrete Ltd	Fairlie Skate Park	NA	NA	Prep for gardens taking place, work nearly complete
Civil Concrete Ltd	Fairlie Skate Park	NA	NA	Tiding the site for return to the Community, packing the fencing up, ground muddy due to rain and no grass

UTILITIES

On the Allandale scheme over the last month several leaks have been occurring, these are mostly due to butt welded joints prematurely failing from when the scheme was upgraded in 2006.

Preliminary compliance reports form ECAN are showing that the sewer ponds at Fairlie and Burkes Pass are compliant Twizel is non-compliant due to the event at New Years. The Pukaki look out sewer disposal system is also compliant.

Budget Breakdown

Water:

Operation and maintenance expenditures as at the end of March 2021.

Electricity cost of $56,523 is under budget by $33,489.

Contractors cost of $319,514 is over budget by $49,478. Original budgets were based on rates under the previous contract. Staff are actively managing the contractors and work programmes to ensure only necessary works are carried and in the most efficient way to attempt to claw back the overspend.

The new contract has increased reporting requirements along with KPI targets.

Some of the extra ordinary issues that contributed to this cost were:

Twizel Treatment Plant Gantry Crane – Rust protection, paint, fit new pully and block for compliance certificate.

Pukaki Airport upgrade works in conjunction with Lakes Construction and new line and connection.

Leak detection Roto place and Aorangi Cres

Fairlie Chlorine analyser installation.

Siegerts Road install new water meter.

Xylem - Servicing Twizel WTP

Various water leaks

Water quality monitoring cost of $41,527 is over budget by $15,500. This is due to the increase monitoring that is now carried out.

Consent monitoring cost of $417 is under budget by $6,707.

Wastewater:

Operation and maintenance expenditures as at the end of March 2021.

Electricity cost of $26,246 is over budget by $2,478.

Contractors cost of $169,543 is under budget by $94,885.

Quality monitoring cost of $12,585 is under budget by $3,296.

Consent monitoring cost of $3,235 is over budget by $2,070. ECAN have been sending in more monitoring account than the last few years.

Landfill and bin hire cost of $12,625 is over budget by $2,625. This is for the hire of skip and disposal to landfill.

CCTV cost of $0 under budget by $34,448. There has been some CCTV work done but no accounts have been received for the work done.

Storm water:

Operation and maintenance expenditures as at the end of March 2021.

Contractors cost of $10,428 is under budget by $7,073.

Consent monitoring cost of $6,028 is over budget by $4,404.

Allandale:

Operation and maintenance expenditures as at the end of March 2021.

Electricity cost of $4,201 is under budget by $825.

Contractors cost of $49,526 is under budget by $17,232.

Water quality monitoring cost of $6,036 is over budget by $979. This is due to carrying out an increased number of samples to ensure bacterial compliance.

Water Sample taken 2020/21

	Albury	Allandale	Burkes Pass	Fairlie	Kimbell	Tekapo	Twizel	Total
Plant	42	46	42	94	0	42	97	363
Retic	10	15	13	50	10	50	46	194
Fails	0	2	0	1	0	1	0	4
Grand Total								557

Number of service Request for Three Water from 1/8/2021 for the new maintenance contract

District	Total	Completed	In Time
Allandale	18	18	16
Ashwick	1	1	1
Burkes Pass	3	3	3
Fairlie	51	51	51
Kimbell	2	2	2
Lake Tekapo	23	23	23
Twizel	92	92	78
Other	3	3	3

Grand Total:	193	193	177

ROADING

Opihi Street Seal Extension

The next section of seal extension is now complete on Opihi Street in the Eversley Reserve, Fairlie. This follows on from the previous section in North Street earlier in the year. This section was completed later to allow the water main to be renewed prior to the roading works being undertaken. These works complete this year’s portion of the project. We are proposing to continue this program, and this will form part of the LTP. We then propose to move onto Kimbell and Lake Takapō (Tekapo) after the completion of the Eversley Reserve in Fairlie.

Lilybank Road Recycle treatment

We have undertaken a recycle treatment on the first section of Lilybank Road to rebind the material. Similar treatments have been undertaken in the past but given the use and speed travelled over this section the fines are lost to dust. The previous treatments have historically been of smaller scale. The alternative with this material is to pick it up and cart it away and replace in with newly manufactured material. Given the road was down to the base and we are on the approach to winter it is likely that this section wouldn’t have lasted the winter season with the skifield traffic or it. If not treated now it is very difficult to spread material or treat this surface over the winter months given traffic volumes wet frozen conditions experienced. Instead with this treatment we have been able to rebind the majority of the material and get it back on the road as the most cost effective solution available to date. Given this is our highest volume road we have proposed to begin a rural seal extension programme as part of the long term plan for this road to reduce the consumption of gravel, wear and limit the maintenance required.

Fairlie & Lake Takapō (Tekapo) Ultra Fast Broadband

Ultra Fast Broadband (UFB) is programmed for rollout in Fairlie early May. Works are proposed to be undertaken by Visionstream which involves installing fibre optic cable. This will involve a number of disruptions around the town in relation to footpath and berms been excavated to install cables and associated works. Works are proposed to utilize trenchless technology providing ground conditions are suitable for the majority of the works. At this stage works are proposed within the Town boundary from SH79 (Allandale Road) south at this stage.

Lake Takapō (Tekapo) township is programmed for later in the year (around August). Works will be undertaken by Ventia (Broadspectrum) for this project. This will involve the same works as above. Works are proposed within the town boundary.

Shared Use Path Works

The primary package for the Shared Use Path has now been let. Downer where the successful contractor for these works. Other smaller packages of work are currently being undertaken by other local contractors. These works are primarily located in Twizel in the Ostler, Ohau Road, North West Arch area. Works will cause some inconvenience in accessing some properties during construction works. There will be disruption for pedestrians that would typically use this area for recreation. We ask that people avoid this area while the construction works are undertaken. Letter drops are being undertaken advising residents in affected areas. BECA Consultants have been aiding council in the delivery of this project.

Tekapo School Improvements, Twizel Long Vehicle & Tekapo Carpark Update

A contract is currently out to the market for Tender for these projects. The tender is advertised on the Local Government GETs platform. Tenders close for this work on the 21^st April 2021 at which time tenders will be evaluated and awarded to the successful contractor under the lowest price conforming evaluation model.

Re graveling/ Maintenance of Unsealed Roads

We are now reaching the end of our re -gravelling program for the year. A few changes have been required due to some roads showing greater wear and damage than others from use over the year. We are trialing a few treatments on our roads to improve the maintenance and prevent damage. There may be some interim changes in conditions over the next few months to what is typically expected. For example, as can be seen in the image below windrows of organic material left to breakdown between grading cycles which isn’t visually appealing but this will return to its regular condition in the coming months.

There have also been a number of conditioning treatments on selected roads in the Opuha ward to remove ingrained faults. This is undertaken using a specialized tool on the graded blade. It is typically only used when there is moisture in/on the road surface to avoid losing fines or breaking up the surface. This will be used up country in the basin as conditions allow, given the absence of consistent moisture or rain and variance of seasons. We are constantly having to adapt maintenance routines, treatments and material properties with our contractor to combat climate change effects.

Footpath & Seal Repairs

Footpath and seal repairs are currently being undertaken in preparation for the onset of winter. The current works are currently will remediate outstanding faults in the surface to waterproof and treat these prior to the onset of winter and meet councils seal cutoff date of the 15 May 2021 – 15 September 2021.

Clayton Road Seal Widening

Seal widening works have begun on Clayton Road to remove edge break and low shoulder faults that continue to occur on this route as a result of the agricultural traffic and heavy vehicles and given the narrowness of the sealed surface. This to future proof against ongoing maintenance. Works involve adding 600mm to each side of the road in-line with historic sections that have been completed further up the road. Works are being undertaken as part of the maintenance contract by Whitestone. Temporary traffic signals will be used while construction is undertaken as the current road with isn’t of sufficient width to run two-way traffic while works are being carried out.

It is planned to join up to the previous section completed previously from about RP 3.5km (approximately). This should result in a consistent width from State Highway 79 (Allandale Road) to the South Opuha Bridge. Repairs will be undertaken above the South Opuha bridges in the interim, but it is likely that seal extension works we will need to be completed further up the road in future given its current classification as a secondary collector for the Clayton, Ashwick, Sherwood, Lochaber area.

Road Maintenance Contract Renewal

The Road Maintenance contract renewal is progressing. A draft procurement plan has been prepared and has been discussed and reviewed with Waka Kotahi (New Zealand Transport Agency) in line with conversations to date. A small number of changes were required but we are nearing a final procurement plan. There are some additional approvals required as part of the procurement method adopted with the agency as co-funding partners and the majority shareholders. The time frame for procurement is likely to be pushed out 2 – 3 months to allow a quality process to take place and from market sounding undertaken within the contracting community the timeframes were deemed too tight to achieve a quality process. Because of this a further contract extension to the existing contract is likely providing all parties are in agreeance. Staff have had initial discussions with Whitestone Contracting regarding this extension. This will allow the process for the procurement and tendering to take place appropriately and will ensure a quality procurement process to deliver the appropriate outcome for Council and our community being largest council contract for the next contract term.

Regional Investment Opportunity (RIO) Projects

Waka Kotahi (New Zealand Transport Agency) are undertaking a number of projects within the Mackenzie District along the State Highway Network to address known problem locations associated with tourism and growth along the corridor. Many of these works are currently under construction on the State Highway network with some still to begin. Works include right turn bay construction, slow vehicle bays, rest area improvements, address traffic related issue cause by tourist stopping/ gathering, etc.

Streetlighting Upgrade

The replacement streetlights should be with NETcon or arriving any day. Change out has begun in Twizel and addressing known outages in the district. Lights are 2200K fittings compliant with the International Dark Sky reserve requirements for the Gold status Aoraki Mackenzie dark sky reserve and will be rolled out district wide.

There are still only 30 new lights replaced as there have been significant shipping delays getting the LED gear trays into the country due to COVID. There is a shipment scheduled to arrive at the end of April and NETcon have two crews ready to start installing the new lights as soon as they are available.

Vegetation Maintenance

There has been a significant amount of vegetation requiring treatment around the district recently with the high growth seasons both this year and previous seasons. Treatment has included mechanical hedge trimming, hand cutting, mowing and spraying to address this growth. Majority of this is related to visibility and maintaining Council’s road reserve.

We also had a tree within private property fall across Plantation Road unexpectedly. Staff have organised an arborist to inspect the surrounding tress and provide advice on next steps given the trees are on private land. With the amount of clearance and forestry occurring around the district trees are coming more of an issue in wind events. The climate change effects and strong out of context wind events also cause issues and clean up requirements.

Regent Street Seal Widening

Regent Street seal widening works are now complete which included both sides of the road from SH8 to Banks Street. Then from Banks Street to Martin Street on the true left-hand side of the road. Whitestone undertook this work as part of the road maintenance contract.

Conclusion

To update the Assets and Services Committee on the progress on various projects and also the normal operation of the department for the past month.

Engineering and Services Committee Meeting Agenda 20 April 2021

5.3 Community Facilities Report

Author: Brian Milne, Community Facilities and Services Officer - Contractor

Authoriser: Tim Harty, General Manager Operations

Attachments: 1. Monthly Pool Report ⇩

2. CLM Pool Report ⇩

3. Township Contract Auditing Results ⇩

4. Peace Avenue Tree Report ⇩

Purpose of Report

The report gives Council an overview of activities within the Community Facilities area, with specific focus on Township Maintenance works.

Staff Recommendations

1. That the report be received and information noted.

HEALTH AND SAFETY

Township Maintenance works are inherently high risk and involve work outside, with machinery and exposure to multiple hazards.

Staff continue to monitor H&S requirements as part of the monthly performance audits plus casual observation of staff and work practices at other times.

No issues with Health and Safety practices have been observed over the last 2 months.

TOWNSHIP MAINTENANCE CONTRACT

The township maintenance contract continues to progress well, with no major issues.

The performance audit system continues to be developed to ensure it accurately meets contract requirements as well as recording other issues. Staff are also planning to work with the contractor in the coming months to set them up to use the system to undertake audits themselves, in addition to Council audits. This intention is that they become somewhat more proactive in identifying items for improvement.

The summary of results to date is attached for information.

The Service Request system is being used to manage community requests, and all current requests have been responded to or are under action.

POOL MANAGEMENT

The pools have now closed for the season and staff will be undertaking a review of the contract/season performance along with development of long-term options for service delivery for Council to consider. This is likely to be in the form of a 17a Review and will recommend a way for managing the pools, long term. This process will be workshopped and reported to Council in the coming months to ensure we have adequate time to set up the operations for the 2021/22 season.

March CLM and survey reports are attached.

TREE MAINTENANCE

Staff have started work on the backlog of tree work, which is mainly involving the removal of unsuitable trees, particularly where impacting on residential properties, and any outstanding or current hazards. This work will continue in April and May and has an impact on available budgets.

The assessment of the Peace Trees has now been completed, and the final report is attached. This report will be worked through in detail with the Fairlie Community Board. Work is programmed to be undertaken in, or from 2021/22, subject to LTP process funding approval.

The major wind storm during Easter severely damaged four Peace Avenue Trees, where they lost significant limbs, and three of these trees have now been removed as the extent of the damage meant they were no longer safe (and their form is also severely impacted). The remaining tree will be further assessed, to determine if it can be saved. Several of branches fell onto the State Highway, but contractors cleared these quickly, so disruption to traffic was relatively minor. One of the branches fell onto a passing car, causing severe damage but fortunately no injury to the occupants. Other than some branch breakages in a few other trees, overall, the majority of the trees suffered surprisingly little damage, given the severity of the winds. All urgent repairs/hazards have now been dealt with and remaining minor damage can be left to be included with the programmed maintenance works.

ALPS 2 OCEAN (A2O)

Staff continue to work with the wider A2O team and provide support as and when required. Usage numbers continue to be high and satisfaction surveys very positive

Operationally the trail continues to be maintained by Recreation Construction contractors with regular (6 weekly) inspections and routine maintenance work as required. As the original contract has now expired, we are working on reviewing this contract and re-establishing over the next 2-3 months.

TIF Funding

A new round of TIF funding has been announced, with Mackenzie District included as one of the targeted areas. Staff will work on identifying a list of potential projects to apply for this funding and seek Council input and approval.

PROJECTS

A number of projects are also underway within the Open Spaces area. A brief update on some key projects is listed below:

1. Fairlie Skate Park

Works have now been completed and the ramp was opened for the Easter weekend where it was very popular. Grass seeding and landscaping around the perimeter is being undertaken in April, and this will need be staged to continue to allow access, so probably won’t be fully established/complete until the spring.

2. Barbara Hay Reserve Tekapo

Initial works have been completed, with the path installation and landscaping being implemented over the next 2 months.

3. D’Archiac Reserve Tekapo

Final details on the planting selection are being worked on with the Community Board and implementation of the first stage earthworks is being progressed.

4. Lakeside Drive Tekapo

Work on the landscaping (planting) of the mound in front of the Church of the Good Shepard is being completed this month.

5. Man Made Hill Twizel

Work is underway investigating plans for the development (predominantly planting) of this site.

6. Market Place Twizel

Work is underway to finalise detailed construction plans for the modification of the ramp/steps in the vicinity of the Twizel Council office.

The four key strategic documents in the Parks and Open Spaces area, have now awarded to consultants following the tender process, and stakeholder engagement work is underway, as follows:

· Parks Strategy - Beca

· Trails Strategy – Beca

· Playground Strategy – Xyst

· Public Toilet Strategy – Xyst

BUDGET

At this stage of the year, the total overall District budget for operational matters is tracking on par with expectation (on a simple 1/12^th tracking basis). There are some variances in individual township budgets, due to budgets not matching routine/contract costs. This will be rectified from the 2021/22 budget.

A number of minor township improvement projects are now being proceeded with, now that we have more confidence that these can been undertaken within overall budget limits.

Tracking of capital works is still in development and will be reported back to the committee when available.

CONCLUSION

There is significant activity occurring in the area of Open Spaces and Township Maintenance. The new Township Contract is now functioning smoothly, and staff are working on implementing various system enhancements, backlog maintenance work (trees and furniture mainly), together with various development and improvement projects.

Reports and information are included within this report and work will continue focusing on these matters.

Engineering and Services Committee Meeting Agenda 20 April 2021

5.4 Community Services and Waste

N/A

Author: Angie Taylor, Community Services and Solid Waste Officer

Authoriser: Tim Harty, General Manager Operations

Attachments: Nil

Staff Recommendations

That the information be noted.

Waste Minimisation and Management Contract – transition process

The transition process leading into the new Waste Minimisation and Management Contract is progressing well, with ongoing collaboration within the Governance Group involving the three Councils from the joint procurement process. The current focus for Mackenzie is collating the information and data required to establish new systems, such as the Fleetmind system that will allow real time tracking of collection trucks and monitoring bin collections and missed bins.

Waste levy changes

In early March, the Government confirmed timing of changes to the waste levy and the additional classes of landfills the levy will be applied to, these are shown in Table 1.

Of relevance to the Mackenzie is the progressive increase to the levy on municipal class 1 landfills. This is the levy that is applied to all residual waste from the Mackenzie that is currently sent out of the district to landfill. The levy is currently $10 per tonne, with the first increase to $20 per tonne effective from 1 July. New Zealand current has one of the lowest landfill levies in the world and these increases will bring the country more into line with international practices. These changes have been factored in to the 10 year budgets for solid waste.

Currently, half of the waste levy revenue is distributed to territorial authorities (TA’s) to spend on waste minimisation work. As part of the levy review, the Government has confirmed this will continue. The remaining levy revenue will be invested into a variety of waste minimisation projects and initiatives to continue the direction towards a circular economy.

It is expected that there will be changes to the reporting requirements from TA’s to the Ministry of the Environment. While final details of the additional reporting required are yet to be received, this will require additional staff time to meet an increase to reporting.

Waste composition audit

The Mackenzie Waste Management and Minimisation Plan was adopted in 2018 and will be reviewed every six years to assess current challenges and issues and ensure the direction of waste management and minimisation remains relevant. The WMMP includes a number of goals and targets, measuring of these targets is addressed through waste audits undertaken approximately every three years, being as part of the waste assessment to develop the WMMP and then halfway through the life of the plan. A waste audit was carried out in 2016 leading up to the development of the WMMP, with a second audit being completed near the end of 2020.

The waste composition audit is undertaken in accordance with the Solid Waste Analysis Protocol (SWAP) and was undertaken by Waste Not Consulting, who specialise in waste audits throughout New Zealand. Using the SWAP approach retains consistency between audits and allows comparison with other areas.

The audit provides a range of valuable information that can be used to inform decisions on waste management in the district. In particular, the audit shows the diversion potential of kerbside waste that is sent to landfill, such as items that can be recycled and organic waste that could be processed into compost.

There is a small amount of recyclable materials that are sent to landfill via the red kerbside bin, however of more significance is the amount of organic material including food and garden waste, that makes up 55.3% of kerbside residual waste. It is recognised that not all organic waste is readily compostable and the report identifies that the amount of divertible organic waste that is able to be composted is 52.9% or 6.23kg per red bin. This consists of 24.1% kitchen/food waste at 2.83kg and 28.8% green/garden waste at 3.39kg.

The amount of organic material contained in kerbside waste varied between the three main towns, being highest in Fairlie with 58.9% and lowest in Tekapo at 46%, with Twizel in the middle at 56.3%.

The report also provides an estimate of the per capita disposal rate of kerbside residual waste, the 2016 audit showed this to be 157kg/capita/annum and this has reduced to 138kg/capita/annum in the 2020 audit. This reduction is positive and a comparison with other districts shows that the per capita for the Mackenzie is relatively low in relation to other districts. A table showing a range of districts is below.

Table 2 - Comparison of per capita disposal of kerbside rubbish

Kerbside rubbish - Annual per capita disposal rate compared to other areas	Kg per capita per annum	Kerbside rubbish collection services
Christchurch City 2011	110	Rates-funded fortnightly 140-litre MGBs (with weekly organic collection)
Gisborne District 2017	122	Rates-funded rubbish bag stickers
Mackenzie District 2020	138	Rates-funded fortnightly 140-litre MGBs
Whangarei District 2017	153	User-pays rubbish bags + private MGBs
Auckland Council 2016	156	User-pays rubbish bags + rates-funded MGBs + private MGBs
Mackenzie District 2016	157	Rates-funded fortnightly 140-litre MGBs
Matamata-Piako District 2020	183	User-pays rubbish bags + private MGBs s
Dunedin City 2018	187	User-pays rubbish bags + private MGBs
Tauranga and WBOP District 2019	192	User-pays rubbish bags + private MGBs
Hamilton City 2017	197	Rates-funded bags (2 per h/h max)
Palmerston North 2017	201	User-pays rubbish bags + private MGBs
Hastings District/Napier City 2019	221	Rates-funded bags (2 bags h/h max) + User-pays rubbish bags + private MGBs

Climate Change Commission - draft advice for waste

The Climate Change Commission has recently made a number of draft recommendations to allow the Government to progress towards emission reduction targets.

In the waste area, the Commission supports the shift towards a circular economy and recommends a reduction in waste emissions through landfill management techniques, reducing the amount of waste generated and a focus on reducing the amount of organic waste sent to landfills to decrease by at least 23% from 2018 to 2030. While these are recommendations, the waste audit results showing the amount of food and garden material within our kerbside waste highlights that an introduction of a kerbside green bin has the potential to take significant steps in line with the recommendation to reduce organic waste to landfill.

Waste Data and Trends

The graphs below present waste data for the district since 2011.

Engineering and Services Committee Meeting Agenda 20 April 2021

5.5 3 Water Stimulus Programme Progress Report

Author: Mike Davies, Program Manager - 3 Waters

Authoriser: Tim Harty, General Manager Operations

Attachments: Nil

Staff Recommendations

That the information be noted.

Background

The Funding Agreement signed In October 2020 between the Department of Internal Affairs (DIA) and Mackenzie District Council (MDC) provided a 100% stimulus grant ($5.111m) for Three Waters projects, as part of the Three Waters Services Reforms.

Approximately $2.5m (50%) of funding has already been delivered to MDC, which is to enable these projects to be commenced. A Delivery Plan has been submitted to DIA, with the 32 separate projects. Provision of a dedicated Program Manager resource is the 33 project and a requirement of the funding being released.

DIA require quarterly reporting (the next is due to be submitted 16 April) and programme completion by 31 March 2022.

OVERVIEW OF THE 3W REFORM PROGRAMME (33 Projects)

Category	Capex Projects	Opex Projects	Category Value	Study or Design	Constn	In Progress
Accelerated Renewals/Capital	13		$2.221m	9	4	4
Asset Condition Assessment	2	1	$0.450m	2	1
Deferred Maintenance	3	2	$1.140m	3	2	1
Asset Management Systems	1		$0.290m	1	0
Water Leakage/Management	3		$0.420m	2	1
Water Safety Priorities	6		$0.340m	5	1	1
Preparation for 3W Reform	1		$0.050m	1	0
Programme Delivery	1		$0.200m	1	0	1
Totals	30	3	$5.111m	24	9	7

There are 3 Operational Projects covering CCTV Condition Assessment, Desludging Design, and Desludging Works that total $1.080m. The balance of the works (which are mostly studies/designs) are Capital Works as they will result in the delivery of infrastructure immediately, or over time through the Long Term Plan process.

PROGRAMME PROGRESS

· DIA accepted first quarterly report (to end December 2020) unchanged.

· Next DIA report drafted, with some amendments to timelines and cashflow. Due 16 April. DIA are keen to see expenditure starting to ramp up.

· Expenditure to date is about $100k, with 12 months of the program to go. Expenditure is DIA’s main concern, and they have informally asked MDC to expedite procurement to fulfill the stimulus requirement.

· Scopes for all 33 projects are being reviewed and refined as more information is collected.

· 7 projects are now in progress involving external resources. Project #1 (Water Supply Pipe Renewals) will be addressed by extending the design/construct scope of the package already contracted – this will avoid duplication of effort, and the potential for scope conflict.

· A single Request for Expressions of Interest (REOI) covering all the remaining projects is to be put on Government Electronic Tendering Service (GETS) to determine the level of interest in each. This will cover both Consultants and Contractors services. From the responses, lists of tender invitees will be drawn up, with a target of 3 invited tenderers per package. This to minimise bid effort/costs across multiple projects and to expedite the procurement process.

· ECAN have accepted MDC assertion that desludging works can occur without further discharge consents being required. MDC will still require land-use consents for earthworks.

· Contact has been made with Iwi to collaborate in the programme and determine their key priorities. Project Briefs are being copied to AEC as they are completed for review.

PLANNED PROGRAMME OVER NEXT PERIOD

· Progress new easements for Twizel rising main (new alignment).

· Issue multi-project ROI and compile tender shortlists to expedite procurement.

· Progress specific briefs for each project for tender.

· Have 50% of remaining projects let by end June 2021 (some projects, especially construction, are dependent on other works completing first).

COSTS, SCOPE, RESOURCES, PROGRAMME

· Scope and detail are not sufficiently defined to flag any cost issues at present, so budgets have not been changed yet (this will be likely). Some projects (especially Wastewater CCTV and Water Meter Installs) can be varied to cope with budget adjustments in other projects.

· Scopes require further refinement (briefs prepared) before going out to market.

· Resourcing may be an issue due to competition from other districts. Some bundling of projects and latitude with timelines will be necessary to increase attractiveness.

· The programme duration is appropriate for individual projects; however, some projects are consecutive (not concurrent) and the quantum (and external resourcing) may be an issue.

RISKS & ISSUES

· Timeline (completion by March 2022) - 9 projects involve physical works (3 of which can be variable) which require tender packages to precede them.

· Cost Variance is a risk, particularly construction related, so scopes need to be refined to meet budgets.

· Resourcing may be an issue as noted above.

· Material Supply may be an issue as the global supply chain is being stressed. This could affect delivery of PE/uPVC pipes, PE liners, polymer, geotextiles etc.

· RMA and Consenting remains a potential risk, as are discussions with landowners where required for easements. Recent discussions with ECAN may have reduced some of that risk.

STAKEHOLDERS & ENGAGEMENT/COMMUNICATIONS

· Iwi partners are already part of the collaboration process and members of the proposed Steering Committee.

· ECAN are involved re consenting issues and will be kept in the loop with respect to non-compliance being addressed.

· Waka Kotahi collaboration will be required for at least one project, with a projected pipeline crossing.

· Landowners will need to accept easements for some proposed works. This may now be limited to just one or two projects.

· A Comms plan will be required, and some individual projects will also require Comms plans. Some projects will almost certainly require ratepayer surveys to obtain data and this will require careful messaging to both obtain the information and to provide educational material to improve drinking water safety.

ACTions/DECISIONS

· There are currently no Decisions to be made. There are 4 projects that have estimates of $350k or above (WS Pipe Renewals, Twizel WW Rising Main, WWTP Desludging and Twizel Water Meter Installs) that it is intended to let on the basis of a 3W Reform Project panel rather than taking to Engineering Committee and the CEO for approval. This will expedite these projects.

· There are a further 6 projects that have estimates in excess of $100k that will require an Evaluation Team prior to approval by the GM.

Conclusion

The Programme remains in the start-up phase, with one year to run. Information gathering for scoping and briefing purposes is now progressing well, and appropriate project bundling is well advanced. Expediting the ROI and resultant procurement of Consultants and Contractors remains the key challenge.