Agenda of Policy and Projects Committee meeting

Policy and Projects Committee meeting Minutes

22 November 2023

DRAFT

MINUTES OF Carterton District Council
Policy and Projects Committee meeting
HELD AT THE Carterton Events Centre, 50 Holloway St, Carterton
ON Wednesday, 22 November 2023 AT 9:00 am

PRESENT: Cr Steve Cretney (Chair), Cr Steve Gallon (Deputy Chair), Mayor Ron Mark, Deputy Mayor Dale Williams, Cr Brian Deller, Cr Robyn Cherry-Campbell, Cr Lou Newman, Cr Steve Laurence, Cr Grace Ayling (via videoconference from 9.15 am)

IN ATTENDANCE: Staff

Geoff Hamilton (Chief Executive), Solitaire Robertson (Planning and Regulatory Services Manager), Johannes Ferreira (Infrastructure Services Manager), Elisa Brown (Communications and Engagement Manager), Marcus Anselm (Communications and Engagement Coordinator) via videoconference, Robyn Blue (Democratic Services Officer)

1 Karakia Timatanga

The meeting opened with a karakia by Cr Steve Cretney.

2 Apologies

MOVED

That apologies be received from Mayor Ron Mark and Ra Smith, and Grace Ayling for lateness.

Cr S Cretney / Deputy Mayor D Williams

CARRIED

3 Conflicts of Interests Declaration

There were no conflicts of interest declared.

4 Public Forum

There was no public forum.

5 Confirmation of the Minutes

5.1 Minutes of the Policy and Projects Committee Meeting held on 4 October 2023

MOVED

1. That the minutes of the Policy and Projects Committee Meeting held on 4 October 2023 are true and correct.

Cr R Cherry-Campbell / Deputy Mayor D Williams

CARRIED

6 Reports

6.1 Road and Street Naming Policy

1. Purpose

For the Committee to adopt the updated Road and Street Naming Policy to reflect the addition of culturally significant names.

MOVED

That the Committee:

1. Receives the report.

Cr S Laurence / Cr L Newman

CARRIED

2. Adopts the updated Road and Street Naming Policy in Attachment 1 with the amendments as noted.

Cr S Cretney / Cr B Deller

CARRIED

6.2 Resource Consent Update

1. Purpose

The purpose of this report is to update the Committee on the resource consents issued since the previous update.

MOVED

That the Committee:

1. Receives the report.

Cr S Cretney / Cr R Cherry-Campbell

CARRIED

6.3 Major Projects update

1. Purpose

To update the Committee on the progress of major projects.

MOVED

That the Committee:

1. Receives the report.

Cr S Cretney / Cr S Laurence

CARRIED

7 Karakia WhakamUtunga

The meeting closed with a karakia by Cr R Cherry-Campbell

The Meeting closed at 9.45 am

Minutes confirmed: ……………………………………

Date: ...................................................

Policy and Projects Committee meeting Agenda

28 February 2024

6 Reports

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6.1 Decision on English Oak - Carrington Park

1. Purpose

For the Committee to decide the outcome of the English Oak at Carrington Park.

2. Significance

The matters for decision in this report are not considered to be of significance under the Significance and Engagement Policy.

3. Background

From our research and historical reports, it is believed the English Oaks at Carrington Park, were planted on 15 July 1904 as part of the Arbour Day event. At this event approximately three hundred trees were planted in Carrington Park by school children, the Mayor, councillors, and those who volunteered to assist.

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From those plantings only 34 trees remain. These thirty-four 122 year old trees have local historical value being part of a significant community event.

Ka Pai Carterton contracted Paper Street Tree Company to provide a Tree Constraints Plan for the trees that stand within Carrington Park, as part of the design work for the proposed Carrington Park upgrade.

This report has provided us with valuable insight into the management plan for these historical trees.

Out of the 34 historical trees, 25 show a history of canopy loss from overextended limbs. This suggests that limb failure is likely in the foreseeable future, and the history of failure shows that is has also been the case to date. As trees are in a group, where limbs are lost, adjacent limbs become more exposed to increased loads. Therefore, a higher proportion of limb loss will contribute to propensity for further limb failure. Intervention is required to ensure the appropriate level of duty of care is administered, and important community assets are preserved.

The Parks and Reserves team is working with an arborist to ensure a Tree Management Plan is in place. This will include an inspection regime, specifications for the work, management recommendations with priorities as to what order the works are to be carried out, and protection guidance for any development works. However, we envisage that with the age of these trees that we are going to start seeing significant issues appearing.

4. Discussion

For the purpose of this report, we will specifically be discussing the English Oak that is between the skate park and the bike track:

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The tree in question has been assessed by two professional arborist experts who have both described the tree as having structural integrity issues which have compromised its form, health and potential longevity.

The initial survey conducted by Paper Street Tree Company notes its condition was assessed and rated as having a 76% health rating and a 70% structural rating. Within the structural rating mechanical weaknesses were identified where the failure of 25% - 50% of the tree is foreseeable. Its value at the time of assessment was $68,932.00 and noted to be decreasing.

Also noted in their report was that the tree protection zone (TPZ) for this tree has been compromised (with hard surface encroachment) any further development within the TPZ would adversely affect the ongoing health of the tree.

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The Skate Park Group is currently undertaking their design work for the development of a new skate park (which will sit along side the Ka Pai Carrington Park detailed design). The Skate Park group had requested we consider removing this tree. At this time Officers advised that tree removal would not be an option, however we would seek an additional report to address the remedial work.

An additional report was undertaken from Wairarapa Treescaping on 14November 2023. Their assessment supported the report from Paper Street Tree Company and recommended we undertake the remedy and maintenance works – specifically on the northern structural limbs overhanging the bike track, including a canopy lift over the skate park area to counterbalance any remedial works.

As recommended by both reports maintenance work was undertaken to remedy the immediate concerns. Through this maintenance work further structural and limb dieback issues were identified. The revised recommendations from the arborists are that:

· They do not believe formative pruning is required due to the severity of the structural integrity.

· Removing these structures will lose approximately 35% (if not more) upper canopy and will have a poor amenity appeal/value.

· With the tree situated where it is, and the new hazards now identified, the view of the arborists is that the removal of the English Oak tree would be the best option due to safety reasons.

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This is likely to be an ongoing challenge with the remaining Oak trees in Carrington Park. The English Oaks have grown rapidly in New Zealand’s more temperate climate. At 122 years old they are some of the oldest Oak trees in the Wairarapa. We are now discovering the fast growth suggests the trees are more prone to heavy limb failure. We should anticipate these symptoms may also appear in other Carrington Park Oaks.

5. Options

Option 1 – undertake pruning of the tree, understanding this will lose approximately 35% (if not more) of the upper canopy and have a poor amenity appeal/value. This does not guarantee the future survival of this tree and ultimately could result in the health of the tree continuing to decrease, with further structural maintenance required.

Option 2 – removal of this tree as is now recommended by the arborists. If this option is adopted, the wood will be reutilised – sold or donated to local organisation(s) for re-use in manufacturing or repairing timber furniture and products. Seedlings from this particular tree are already being grown and will be planted at a more suitable location once at an appropriate size.

6. NEXT STEPS

Next steps are dependent on the decision on the options. If option one is preferred, officers will action the pruning works.

If Option 2 is preferred, officers will action the tree removal, noting communication will be undertaken with the wider community of the works to be undertaken.

7. CONSIDERATIONS

7.1 Climate change

It is noted in the Paper Street Tree Company report that climate change predictions for the region are likely to have an impact on species as climate is likely to become more favourable for Mediterranean species (e.g. Turkey oak). Therefore, maintaining and improving tree resilience will be important for long-term retention (e.g. maintaining and allowing for mulched surfaces).

7.2 Tāngata whenua

Tāngata whenua have not had input into the decisions of this report.

7.3 Financial impact

Both options will be managed within existing Parks tree maintenance budgets.

7.4 Community Engagement requirements

Communication on the decision will be shared out to the community.

7.5 Risks

Risk to public safety – doing nothing is not an option for this tree. There is a 25 – 50% likelihood of mechanical weakness.

Risk to public perception – it is noted that the decision to remove this tree may cause public concern. We will attempt to mitigate this through our communications, press releases and engagement with park users.

7.6 Wellbeings

Social

The trees are a much-loved asset of Carrington Park, and as noted above the trees have local historical value being part of a significant community event. Seedlings from this tree will be planted in more suitable locations around the park, once big enough.

8. Recommendation

That the Committee:

1. Receives the report.

2. Agrees to Option 1, undertake pruning of the tree.

3. Agrees to Option 2, removal of the tree as recommended by the arborists.

File Number: 386097

Author: Glenda Seville, Community Services Manager

Attachments: Nil

Policy and Projects Committee meeting Agenda

28 February 2024

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6.2 Consents update

1. Purpose

To update the Committee on the consents that are currently progressing and highlight any risks for the other current consents.

To update the Committee on the Draft water management plan that needs to accompany the Kaipatangata consent renewal application.

2. Summary

The main consents currently being worked on are the water race renewals and the Kaipatangata water take consent.

A number of expired consents have been on-hold pending further information, such as the landfill consent while council decides the sludge disposal route.

3. Consents

The waters team manage 8 different consents these are summarised in the table below:

Consent	Expiry	Status	Risks
Kaipatangata Surface Water Take	2013	2012 application on-hold, reapplying with updated information for the natural resources plan	Low flow restrictions Request 20 years
Carterton Landfill	2016	2014 Application on-hold, providing further information for sludge disposal options	Restrictions of sludge disposal Unknown risk for unlined cell and what may be required for monitoring.
Frederick St groundwater take	30/9/2034	Current	Nitrate levels for drinking water
Taratahi Water Race	30/6/2023	2023 application – public notification expected soon	Restriction during low flow, amount of monitoring required Requesting 20 years, but may not get this
Carrington Water Race	30/6/2023	2023 application – public notification expected soon
Waingawa swamp cleaning	3/9/2023	Expired, included in the Water race consent application
Wastewater discharge	17/1/2053	Current; multiple consents	Capacity for population growth
Stormwater	15/8/2027	Current; Monitoring consent to create stormwater management strategy	Roading run-off treatment

A draft CDC Water Demand Management Plan is attached for consideration by the Committee. This needs to accompany the Kaipatangata consent renewal application.

4. REnewal Progress

There are currently three consents that are in different stages:

· A priority is the water race consents relating to responding to section 92 request for information. Public notification is expected to be in the next couple of months, but we will try to work with stakeholders to progress this. For example, initial discussions with Fish and Game and Iwi have been positive.

· The updated application for the Kaipatangata has been on hold since 2015 while different strategies developed by Council on use of Frederick St Water Treatment Plant and the Kaipatangata supply. These were included in the considerations in the alternative water supply project.

· Landfill consent for the closed landfill which is the monitoring of the groundwater around the site.

4.1 Kaipatangata Water Take Renewal

The application has been updated to reflect the updated natural resource plan which was finally finalised last year. NRP (operative) version requires consideration of the health needs of people for low flow conditions and a water management plan to be developed.

The application will be resubmitted by March, and then it is likely to go to public consultation. A draft water demand management plan is attached to the report.

Budget: $384,664 was transferred for the Alternative water source, of which $185,677 was available for consultant review and stakeholder engagement

4.2 Water Race renewal

A response to the section 92 information request was sent to Wellington Regional Council in February.

The application will be resubmitted by March, and then it is likely to go to public consultation.

Budget: $326,864 of which $39,042 was unallocated for stakeholder engagement and the hearing/negotiation process. The actual cost during this period is unknown and a risk.

4.3 Landfill Renewal

The initial application for the landfill (discharge of stormwater) was included as part of the wastewater treatment plant renewal, however delay of the pond desludging has resulted in this being put on hold.

The application will be discussed with Wellington Regional Council in March, with the update of plans for the desludging projects in the LTP, condition on the public consultation.

Budget: There is no specific budget for the consent, however $54,000 is available for the transfer station facility, but the reports have been previously included in the wastewater treatment budget due to the main use will be sludge disposal.

5. Recommendation

That the Committee:

1. Receives the report.

2. Notes the Draft CDC Water Demand Management Plan.

File Number: 385410

Author: Lawrence Stephenson, Waters Operations Manager

Attachments: 1. CDC Water Demand Management Plan 2024 ⇩

Policy and Projects Committee meeting Agenda

28 February 2024

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6.3 Major Projects update

1. Purpose

To update the Committee on the progress of major projects.

2. Significance

The matters for decision in this report are not considered to be of significance under the Significance and Engagement Policy.

3. Background

The Infrastructure Services Team delivers multiple projects as part of the delivery of the Long-Term Plan.

4. Discussion

4.1 Wastewater Treatment Plant Reservoirs

We are pleased to report that all construction defects have been completed and the reservoirs are now fully operational. The adjustments to the concrete blocks at the Reservoir outlets were completed by Ordish and Stevens just before Christmas 2023.

It was therefore with great satisfaction that CDC finally received the Code of Compliance Certificate for the construction of the reservoirs on 24 January 2024.

The installation of the last 4 buoys in Reservoir 1 was outstanding due to extraordinary delays in delivery from an overseas supplier. This has now been resolved and the buoys were installed towards the end of January. The reservoirs are now fully operational.

4.2 High Street North Rider main construction

Work on the High Street North Rider main and the lateral connections were completed on 13 February 2024. This project will have a significant (positive) impact on CDC’s 3 waters operation budget. The benefits of this project are as follows:

· No laterals that cross the live lane – meaning that there will be less load and vibration on the lateral and main connection, which in turn will result in an extended asset life.

· The laterals that are being removed are past their expected life.

· The pavement can be renewed without the restriction on shallow laterals. Lateral depths range from 250mm to 300mm, meaning that there is not much room for building the required pavement.

· The pavement will not have to be dug out for new laterals or maintenance.

· Future maintenance will be outside of the live lane resulting in a significant saving in temporary traffic management.

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The work was delivered within the approved annual plan budget.

Items that have a significant financial impact were:

· Underground services – There were 6 utility services directly in the area of our trench, meaning that hydro-vacuuming was required to excavate the trenches. This was more expensive than traditional trenching, but the safest way to dig and prevent damage to telephone, power, and fibre cables.

· Temporary Traffic Management – TTM makes up roughly 40% of the cost estimate and affects by every activity on site. Although TM has an effect on costs it is also an area of opportunity to potentially have a saving if the time on site can be reduced.

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4.3 Sewer Network Renewals

After considering various options to renew the High Street North Sewer Main it was decided to defer the renewal of this section due to the estimated costs. The estimated cost for this section exceeded the current and anticipated next financial year’s budget combined.

For the next LTP cycle we will focus our attention to priority 1 sites that are not on state highway. This will result in getting more meters of critical pipe network renewed due the significant cost difference in temporary traffic management cost.

Subsequently, he next sewer renewal site is on Lincoln Road between Belvedere Road and Victoria Street. We aim to start construction within the next 6 weeks.

4.4 Brooklyn Street Water Main Renewal Design

Design for the replacement of the water main on Brooklyn Street, between High Street South and Lincoln Road has been started. This will be the next water reticulation renewal project after High Street North. The route of this pipe replacement will require the pipe to be laid under the railway track. A steel sleeve will be drilled under the tracks after which the pipe will be installed through the sleeve.

4.5 Dalefield Road Pump Station

Staff are pleased with the way in which this project was delivered. The project was delivered on time and within budget whilst delivering on the outcomes that we aimed to achieve. The project team consisted of Max Tarr Infrastructure Engineers ltd., Egis NZ and CDC officers. Key drivers to the successful outcome can be attributed to:

a. Detailed project scope definition and design. The infrastructure team worked collaboratively between Operations, Asset Development and Projects to ensure that the final product would be operationally sound.

b. Procurement process – A thorough procurement process was followed using a Price Quality Evaluation method. This allowed the evaluation team to consider the tenderers relevant experience, track record and broader outcomes.

c. Contract management – The team delivered the project in line with NZS 3910 with all parties staying within their defined roles.

d. Sufficient time and budget – The time allowed for the delivery of the entire project was sufficient while having a very firm targeted completion date. The fact that the budget was approved based on the preferred design and tender outcomes, meant that quality was not compromised.

We endeavour to continue to follow this approach in future to ensure the best outcomes for our community.

4.6 Climate change mitigation – Solar Project

The primary focus of this project is to reduce Carterton’s annual operational cost through the investment of better of funding. The climate change benefits are a secondary outcome.

As part of our procurement process, we received two compliant tender submissions on 14 November. The tender evaluation team has identified Hoskins Energy Systems from Carterton as the preferred tenderer. Hoskins’ proposed methodology will require a resource consent as a discretionary activity. We have engaged Incite – A Wellington resource management consultancy, to prepare the resource consent application.

4.7 Dalefield Road Sewer

CDC has been waiting for Downer to return to the site to remedy surface defects on the trench reinstatement as identified in the post construction walk over.

This work was done on 12 February 2024.

4.8 Lincoln Road dual water main

CDC have similarly been waiting for Downer to return to site to do surface repairs to the trench areas identified in the post construction walk over.

This work was done on 13 February 2024.

4.9 Valve testing

Detection Services have completed their survey of the Council’s valves on 15 Jan 2024. Their report was submitted 23 Jan 2024 and is currently being evaluated. It is important to have an updated condition assessment of the underground valves to enable Council to prioritise repairs and spending as well as having a clear understanding of the risks associated with possible failure of these assets.

Failure of valves can lead to:

· underground water loss

· loss of water to residents

· damage to roads and other infrastructure

· loss of or, no available water for fire-fighting purposes

The results of this exercise were as follows:

Total amount of valves in Carterton 348

Total valves exercised 269 = 77%

Unable to exercise 79 = 23%

Leaking Valves 31 = 9%

The data shows that while there are a large number (79) of inoperable valves, whilst 77% of CDC valves are in working condition. This information will now be used to update asset data and inform forward work planning.

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1 Aerial view of CDC valves assessed by Detection Services

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Valve testing in progress

5. NEXT STEPS

The Infrastructure Services Team will continue to deliver on these projects and ensure the Committee is informed on progress.

6. CONSIDERATIONS

6.1 Climate change

Climate change is considered in project planning and development as required.

6.2 Tāngata whenua

This report is a regular update which is of interest to all members of our community, including iwi and hapū. However, there are no particular areas of interest or concern contained within this report that require specific iwi or hapū input.

6.3 Financial impact

The financial matters in the report are covered within existing budgets.

6.4 Community Engagement requirements

There are no community engagement requirements required for this report.

6.5 Risks

Project risks are being managed and mitigated as and when required.

7. Recommendation

That the Committee:

1. Receives the report.

File Number: 384333

Author: Christo Heyns, Project Manager

Attachments: Nil

Policy and Projects Committee meeting Agenda

28 February 2024

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6.4 Waingawa Process Water Project

1. Purpose

For the Committee to be updated on the project progress and consider future of the Waingawa Process Water Project.

2. Significance

The matters for decision in this report are not considered to be of significance under the Significance and Engagement Policy.

3. Background

Following endorsement by the Policy and Projects Committee, on 13 September 2023 Council approved unplanned expenditure for the Waingawa Process Water Project (WPWP). The Policy & Projects Committee endorsed the project on the basis that the project would proceed progressively, achieving specific deliverables at each milestone.

4. Discussion

As the project progressed through the milestones more information has become available which has changed the risk profile of the project deliverables negatively. An update on the various milestones follows:

4.1 Policy and Project Committee endorsement - Endorsed 16 August 2023

4.2 Mana Whenua support and formally endorsed the project – Mana Whenua’s support for this project will be critical when applying for the GWRC resource consent for the bore and will be required for the physical works to proceed. Meetings have been held with both Kahungunu ki Wairarapa and Rangitāne Iwi representatives. Both were supportive of the concept and will confirm their individual official position following further deliberation internally.

4.3 Council approval of unplanned capital expenditure drawn from Reserves, with loans required – Approved 13 September 2023

4.4 Masterton District Council (MDC) $250,000 contribution – On 13 September 2023 MDC agreed to provide funding to the project of up to $250,000 on terms that do not disadvantage Masterton ratepayers. Following the adoption of this resolution, MDC officers proposed to treat the funding as a loan to CDC, which was not in line with the request for capital funding. The way MDC fund this request is not a matter for CDC. Management continues to progress on the basis funding will be in line with our request – i.e. capital funds, and not a loan.

4.5 Kānoa approved $1,750,000 of grant funding – Approved.

4.6 JNL agreed to a 10-year supply agreement – To date, JNL has not committed to a long-term take agreement. JNL has however indicated that they were not in agreement with the original proposed take of 65,000 mᵌ and were thinking more towards 35/45,000 mᵌ. This was noted as one of the more significant risks identified.

4.7 Master plan design and construction estimate to be completed – The design and estimate has been completed – The updated estimate is noted under Item 7.3 Financial Impact.

4.8 Concrete Tank condition assessment – The condition assessment that was completed recommended further Geotech and concrete reinforcement assessments which will have an impact on the cost estimate. The updated estimate is noted under Item 7.3 Financial Impact.

4.9 Detailed design for procurement – not started.

4.10 Resource consent for the bore supply – not started.

4.11 Risk Assessment

Further to the milestones discussed above, the project team is actively managing the associated risks.

An updated risk assessment follows:

a) Co-funding from Kānoa is fixed and therefore CDC will own the risk of project cost overruns or variations. - This risk has been validated after Kānoa confirmed that there will not be support for the increased cost estimate.

b) The final design exceeds the initial project estimate. - This has occurred not only due to design but also further requirements like the proposed Geotech and concrete testing.

c) Tendered prices exceed the initial/design estimate.

d) Affordable Waters Reform – CDC will lose our in-house Three Waters Operations team currently used for all for waters maintenance and operations activities. – This is unlikely to occur now.

e) GWRC Resource Consent for the bore water take may take longer than anticipated, cost more than expected, or be widely notified. – highly likely to be required based on the bore assessment.

f) Due to proximity of the wetlands the final bore location may be a considerable distance from the tank. - highly likely to be required based on bore assessment.

g) Bore supply could have “take” restrictions during summer. Unlikely to be clarified until we have submitted a resource consent to GWRC.

h) Water tank proximity to the earthquake fault line. No further update.

i) Bore water quality is still unknown and may require treatment / filtering if not suitable for non-potable purposes. No further update.

j) The proposed bore site is in a known contaminated site, where bulk storage of hydrocarbons, mineral acids, and the treatment of hides historically took place. No further update.

k) It is not known whether there is sufficient power supply to the site for the pump station. No further update.

l) JNL uses roughly 70% of current Waingawa potable water supply from MDC. A significant reduction in demand from JNL (e.g. a rainwater roof capture system, a reverse osmosis plant) will have a significant impact on CDC’s ability to recover the cost of this investment - Refer to Item 4.6.

m) Success of establishing a bore – based on the bore assessment there are numerous risks associated with the establishment of a bore in this area that could compromise our ability to take water. Geotech reports suggest establishing a borehole is likely to result in a further cost escalation.

4.12 Cost Estimate and Funding

Due to various considerations the estimated cost to complete has increased to $2,767,679. It is noted that the detailed design and tender processes will further refine and confirm final cost estimates.

Based on the estimates the project is proposed to be funded as follows -

1. $1,750,000 - Kānoa

2. $ 102,000 - CDC (Waingawa Reserves funded)

3. $ 915,679 - CDC Loan – funded through Process Water Charges

4.13 Cost Benefit analysis

Whole life cost over 50 years (excluding depreciation, inflation, or growth).

1. Establishment cost $2,767,679

2. Operational cost - $26,640/annum $1,332,000

3. Interest on Loan - $530,234 (10 yr x $53k/annum) - $398K $332,004

Whole life cost $4,431,683

Revenue (assumed $1.00 / CUM) $ 57,500p.a. x 50 $2,875,000

Benefit / burden ($1,556,683)

5. Conclusion

Three critical elements of this project have changed, and all of them have adverse impacts for CDC.

Firstly the cost to construct the infrastructure have increased from $2.5m to $2.77m. Kanona is not prepared to support any costs increases, meaning it is likely all of the increase will fall on Carterton ratepayers increasing our funding demand from $500,000 to $767,679.

Secondly the anticipated revenue earned from JNL has been scaled back due to their revised raw water demand forecasts. Additional risks remain with JNL installing rainwater collection and reverse osmosis systems on site, which will further reduce demand for process water.

The revenue assumptions over the 50-year project life does include additional customers connecting to the Process Water reticulated network. Combined with JNL, we have assumed demand for Process Water will average 57,500cum p.a. compared to 60,000cum at the outset of the project.

Thirdly the geotechnical report has indicated risks with drilling a bore on site due to the earthquake fault line and hinted at further cost escalation with moving the bore to an alternative site.

Due to these changes and some new risks being identified, it is now unlikely that the project outcomes can be successfully delivered without significant increase in the project budget. The increase in investment required, and reduced revenue mean this investment is now uneconomic, even before additional risks or cost escalations are considered.

Based on a 50-year view and with no time value calculation, the cost and risk associated with this project outweighs potential financial benefits.

Management notes that once the network is installed it will need to be maintained, and depreciation will need to be funded beyond year 10 (when the loan is repaid) at a rate of around $50k p.a. These costs will be in addition to those outlined above.

The project will deliver non-financial benefits, such as the environmental effect from reduced chlorine treatment of potable water; lower demand for potable water during summer months; and the potential to better manage fire risk at the Industrial Park are difficult to measure. These benefits will not be seen by Carterton ratepayers in the immediate future, nor will they show on our balance sheet.

6. NEXT STEPS and progress

Option 1

The Projects & Policy Committee:

Note – the updated milestones.

Note – the updated risks.

Recommend to Council to approve an increase in the project budget to $767,769.

Recommend to Council an increase in the total loan funding.

Option 2 – (Preferred Option)

The Committee recommends Council terminate the project with immediate effect.

7. CONSIDERATIONS

7.1 Climate change

Reducing the volume of water treated will have a positive impact on climate change. The environmental impact of the new bore hole will be assessed through the resource consent application.

7.2 Tāngata whenua

The matters in the report might be of interest to Māori. Mana whenua participation is critical for the project’s success. Engagement on concept plans with Hurunui-o-Rangi has occurred. Further engagement with mandated iwi organisations has occurred following endorsement from Committee to proceed with the detailed design work.

7.3 Financial impact

Based on the initial high-level estimates, in the first 10 years CDC’s investment and operational expenses will be recovered through water charges to users.

Over the whole of life of the project, or 50 years, the project will result in a net deficit of $1,556,683.

Further financial risks are associated with the risk assessment as most of the identified risk will have a financial impact.

7.4 Community Engagement requirements

Community engagement is not required for the decisions in this report.

7.5 Risks

Please refer to Item 4.11 under Risk Assessment.

8. Recommendation

That the Committee:

1. Receives the report.

2. Recommends that Council terminates the project with immediate effect.

File Number: 385252

Author: Johannes Ferreira, Infrastructure Services Manager

Attachments: Nil

Policy and Projects Committee meeting Agenda

28 February 2024

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6.5 Raumāhanga roads maintenance contract

1. Purpose

For the Committee to be informed on the Raumāhanga Roads maintenance contract.

2. Significance

The matters in this report are not considered to be of significance under the Significance and Engagement Policy.

3. Background

Ruamāhanga Roads (RR) is business unit that was established though a multi-party funding agreement between South Wairarapa and Carterton District Council.

Under the agreement, both councils contribute roading staff that works across both councils. Through their procurement process RR engaged Fulton Hogan as the maintenance contractor.

4. Discussion

Contract

The RR contract is a based on the New Zealand Standard 3917 general conditions of contract. This type of contract is intended for use when contracts are let for maintenance and renewal works where the contract is intended to run for a defined period, as opposed to a contract for a defined scope of work.

Basis of Payment

The basis of payment for this contract is on a measure in value principle based on tendered scheduled rates. This means that the volumes of work delivered are equal to the approved LTP budget divided by the various unit rates.

Contract specifications define the detail included in scheduled items.

Preliminary and general cost include items such as programming, quality control and asset management.

RAMM (Road Asset Management & Maintenance system)

RAMM is the asset management system used by most councils and NZTA to manage roading assets. RAMM holds all asset information, network faults, works programme and financial management (estimates, claims and maintenance cost history). Faults are continuously recorded through network inspections, service request and high-speed data collection.

Image – Screen shot of RAMM showing asset information and faults.

Programming of physical works

The process of how physical works are managed under this contract:

1. Fulton Hogan is required to present RR officers with a monthly programme in RAMM. The programme identifies the specific physical works to be completed as well as the estimated cost. The programme is developed from the faults data base.

2. RR officers review and approve the programmed estimates prior to commencement of the work. The programme can be revised and reprioritised by RR officers. This ensures that council is always in control of budgets and priorities.

3. Following approval of a programme Fulton Hogan will complete the work. Any variation to the approved programme during the month needs to be approved by RR Officers.

4. Fulton Hogan then submits their monthly claim through the same system (RAMM).

5. RR officers then review and audit the claim. The review includes confirmation of works completed, review of approved estimates vs the claim and the quality of the works.

RR officers continuously manage the network’s physical demands within the boundary of approved budgets. This is achieved through a risk-based approach.

Performance and Contract Evaluation (PACE)

PACE has been introduced into the contract to enable both parties to monitor the performance of the Contractor. If the PACE score is unsatisfactory, a performance improvement plan is required under the contract.

The process considers:

- Health And Safety

- Financial management

- Collaborative approach

- RAMM Management

- Management of Sub-contractors

- Quality of Workmanship

- Progress of making good defects

- Customer satisfaction

5. NEXT STEPS

To enable a better understanding of the Raumāhanga Roads contract, RAMM and work programming on our roading network, Management suggest an interactive workshop for Councillors, which would also be open to the public. If this is of interest, it will likely occur in late March / April.

In the meantime, Management will continue to work with Fulton Hogan to maintain and renew the roading network, whilst managing their performance against the agreed work programme.

6. CONSIDERATIONS

6.1 Climate change

This matters in this report do not have climate change considerations.

6.2 Tāngata whenua

The matters in the report might be of interest to Māori, however there are no decisions with an impact on Māori in this report.

6.3 Financial impact

The RR contract is delivered through existing approved LTP budgets and receives a 51% subsidy from NZTA Waka Kotahi.

6.4 Community Engagement requirements

The matters in this report are not considered to be of significance under the Significance and Engagement Policy.

6.5 Risks

There are no risks associated with the matters in this report.

6.6 Wellbeings

Decisions related to social, cultural, environmental and economic wellbeings are not being considered in this report.

7. Recommendation

That the Committee:

1. Receives the report.

File Number: 386553

Author: Johannes Ferreira, Infrastructure Services Manager

Attachments: Nil

Policy and Projects Committee meeting Agenda

28 February 2024

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6.6 Ruamāhanga Roads and Corridor Access

1. Purpose

For the Committee to be updated on Ruamāhanga Roads and Corridor Access activities.

2. Significance

The matters for decision in this report are not considered to be of significance under the Significance and Engagement Policy.

3. Background

The report relates to activities in January 2024.

4. Discussion

Overall expenditure of the approved roading budget is on with majority of renewals planned for next few months. We are managing network demand within the individual working categories.

4.1 Sealed road pavement maintenance

Sealed Road pavement maintenance is 16% overspent due to significant network demand.

In the January 2024 Programme, we fixed 20 potholes in the network, and edge break failures on Te Whiti Rd, Te Wharau Road, Mt Holdworth Rd and Haringa Rd were repaired. We inspected 128 km of sealed roads in the network, and all roads that we inspected were programmed based on the routine maintenance inspection category.

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Pavement repairs on Hughes line

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Edge break repairs on Te Wharau Rd

4.2 Unsealed road maintenance

Unsealed road maintenance is 76% spent in relation to Waka Kotahi NZTA budgets.

Unsealed road inspection and grading were the major categories of the job completed by the contractor. During January 2024 we graded 116 km of unsealed roads. We also inspected 37 km of unsealed roads during in January 2024.

4.3 Drainage maintenance

Drainage Maintenance was 30% spent in relation to Waka Kotahi NZTA budgets. We inspected 66 drainage assets on the network. We didn’t do any drainage maintenance in January.

4.4 Structure’s maintenance

The structure’s maintenance is 26% spent in relation to Waka Kotahi NZTA budgets. In January, we inspected 10 bridges on Moffats Rd, Tea Creek Rd, Matarawa Rd, Waiohine George Rd, Watersons Line, and Thomas Rd.

4.5 Environmental maintenance

Environmental Maintenance is 43% spent in relation to Waka Kotahi NZTA budgets. In January, there wasn’t any spillage on our roads.

4.6 Traffic services Maintenance

Traffic services were 17.45% spent in relation to Waka Kotahi NZTA budgets.

Sign inspection and asset data updating are continuing every month and minor streetlight maintenance is continuing.

We inspected 82 signs on the network, and 3 signposts were replaced on Te Kopi Road and Cobden Rd. One sign was replaced on Borlase Rd due to its poor condition. All the activities including the asset health were updated in the RAMM database.

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Sign post replaced on Te Kopi Rd

4.7 Footpath maintenance

Footpath maintenance is 76% spent in relation to the Waka Kotahi budget allocation.

In the January programme a pothole was repaired on a footpath on Wyndham Rd.

CaPEX expenditure

Expenditure reports are again set against the Waka Kotahi budget allocations which are approved for the financial year 2023/2024 and 24% of the CAPEX budget spent.

4.8 Unsealed Road Metaling

Unsealed Road Metaling was 25% spent in relation to the Waka Kotahi NZTA budget allocation. No work was completed in this category in January 2024.

4.9 Drainage renewals

Drainage Renewals was 41% spent in relation to Waka Kotahi NZTA budget allocation.

No work was completed in this category in January 2024.

4.10 Pavement rehabilitation

Pavement rehabilitation was 9% spent in relation to the Waka Kotahi NZTA budget allocation.

Pavement rehabilitation on Wiltons Road is planned for March 2024.

4.11 Traffic service renewals

Traffic Service Renewals is 51% spent in relation to Waka Kotahi NZTA budget allocation.

In January one sign was replaced on Park Road.

4.12 Footpath renewal

Footpath Renewal is at 85% spent in relation to Waka Kotahi NZTA budget allocation.

No work was completed in this category in January 2024.

4.13 Sealed road resurfacing

Sealed Road surfacing is 86% spent in relation to Waka Kotahi NZTA budget allocation. No seal road surfacing was undertaken in January.

4.14 Low-Cost Low Risk (LCLR)

Longbush Road and Millers Road Safety improvements

The team is currently working with professional service providers and contractors on options to improve the general road safety and road user behaviour at the intersection. The concept under review will include bringing a lane adjustment and raised concrete islands. The team is optioneering a solution of not more than $50,000 to remain within existing approved LCLR budgets.

LCLR Forward works programme.

- Hughes Line culvert extensions are planned for March 2024

- Wiltons Road widening in March 2024 as part of the pavement rehabilitation work.

- Brooklyn Road footpath extension to Lincoln Road April – June 2024.

4.15 Emergency event works

More Dropout repairs were completed on Te Wharau Rd and Clifton Grove. The team is currently focusing on Glendburn Road which will be used as a detour when we are doing repairs on Te Wharau between Glendburn and Flat Point Roads.

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4.16 Service requests

In January we received 18 Service requests for Roading.

4.17 Corridor Access

In January we received 17 corridor access requests (CAR) and issued 16 work access permits (WAP).

Since the introduction of the new fee structure for Corridor Access, we have managed to recover most of our costs from private users. Historically this burden was carried by rate payers.


AGENDA Policy and Projects Committee meeting
Date:	Wednesday, 28 February 2024
Time:	9:00 am
Location:	Carterton Events Centre 50 Holloway St Carterton
Cr S Cretney (Chair) Cr S Gallon (Deputy Chair) Mayor R Mark Deputy Mayor D Williams Cr B Deller	Cr R Cherry-Campbell Cr L Newman Cr S Laurence Cr G Ayling R Smith - Hurunui-o-Rangi Marae representative