Agenda of Te Anau Wastewater Discharge Project Committee

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Notice is hereby given that a Meeting of the Te Anau Wastewater Discharge Project Committee will be held on:

Date:

Time:

Meeting Room:

Venue:

Wednesday, 16 December 2015

2.00pm

Distinction Te Anau Hotel & Villas
Lakefront Drive, Te Anau

Te Anau Wastewater Discharge Project Committee Agenda

OPEN

MEMBERSHIP

Chairperson	Mayor Gary Tong
Deputy Chairperson Councillor	Lyall Bailey
Members	Rachel Cockburn
	Mark Deaker
	Shirley Mouat
	Don Mowat
	Allan Youldon
Councillor	Ebel Kremer

IN ATTENDANCE

Chief Executive		Steve Ruru
General Manager Services and Assets		Ian Marshall
Manager Water and Waste Services		Ian Evans
Manager, Area Offices		Chris Dolan
Area Officer, Te Anau		Jenny Labruyère
	Contact Telephone: 0800 732 732 Postal Address: PO Box 903, Invercargill 9840 Email: emailsdc@southlanddc.govt.nz Website: www.southlanddc.govt.nz Full agendas are available on Council’s Website www.southlanddc.govt.nz

Terms of Reference for Te Anau Wastewater Discharge Project Committee

This Committee is a committee of Council with delegated responsibility from the Southland District Council. That delegation involves the role of project management governance for the Te Anau wastewater treatment plant except that;

· The project case shall be as approved by Council

· The separate project physical works stages tenders cannot proceed until final business cases have been approved by Council for each respective stage.

The specific responsibilities of the Project Committee are to;

a) Provide overall direction for the project.

b) Ensure a robust business case is developed and submitted to Council for approval.

c) Ensure that the projects are completed on time, within the approved budgets and in accordance with the respective approved project definitions and business cases.

d) Monitor project progress including sub-projects.

e) Ensure that appropriate reporting systems are maintained to provide accurate and timely information to the Committee and Council.

f) Act as a conduit for communication and consultation with the Te Anau Community Board and the Manapouri Community Development Area Subcommittee.

g) Ensure that proper risk assessment is performed and mitigation strategies are developed.

h) Ensure that appropriate agreements are finalised and to forward, with recommendations, completed agreements to Council for final approval.

i) Ensure that final business cases are presented to Council for approval prior to the letting of physical works contracts.

j) Approve project timelines, budget, and deliverables within the Council approved project definitions and business cases.

k) Recommend to Council changes to the project objectives, timelines, budget and deliverables outside the Council approved project definitions and business cases.

l) Sign-off the project deliverables at the relevant milestones.

m) Ensure that the proper financial checks and professional balances are included.

n) Ensure that the projects meet Council’s statutory obligations.

o) Ensure that the projects deliver the required benefits.

p) Ensure that all decisions and processes are well documented and the communities are kept informed; and

q) Ensure that appropriate quality assurance processes are maintained throughout the projects.

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Te Anau Wastewater Discharge Project Committee

Unconfirmed OPEN MINUTES

Minutes of a meeting of Te Anau Wastewater Discharge Project Committee held in the Community Room, Fiordland Medical Centre, Te Anau on Tuesday, 10 November 2015 at 2.00pm.

present

Chairperson	Mayor Gary Tong
Deputy Chairperson	Lyall Bailey
Members	Rachel Cockburn
	Mark Deaker
	Shirley Mouat
	Don Mowat
	Allan Youldon
Councillor	Ebel Kremer

IN ATTENDANCE

Chief Executive	Steve Ruru
Manager Water and Waste Services	Ian Evans
Manager, Area Offices	Chris Dolan
Area Officer, Te Anau	Jenny Labruyère

1 Apologies

At the close of the agenda no apologies had been received.

2 Leave of absence

At the close of the agenda no requests for leave of absence had been received.

3 Conflict of Interest

There were no conflicts of interest declared.

4 Public Forum

Moved Councillor Kremer, seconded Member Youldon and resolved that the Te Anau Wastewater Discharge Project Committee go into public forum to allow members of the public to speak.

Mr Alistair Paton McDonald

In his presentation Mr Paton McDonald drew attention to the minutes of the 7 September 2015 meeting in particular his concern that Pattle Delamore Partners (PDP) has plans to have progress meetings with Southland District Council every two weeks and to issue a single draft report, again to Southland District Council, without this information going to the Te Anau Wastewater Discharge Project Committee. This process was outlined in the Peer Review Methodology document.

Mr Paton McDonald stated this process was subsequently amended by a Committee resolution which stated “that this Committee requests all reports prepared by PDP be referred in the first instance to this Committee”.

Mr Paton McDonald also drew attention to the Peer Review Progress Report prepared by Council staff for today’s meeting that PDP are to make a draft report available for review and comment by MWH, Southland District Council consultants/advisors two weeks prior to the first draft report being forwarded to the Committee.

Mr Paton McDonald felt that PDP is employed to carry-out an independent and transparent Peer Review, so is concerned that PDP should seek advice and assurance from MWH before “putting their cards on the table”.

The Chairman advised that Mr Paton McDonald’s concerns will be addressed when Mr Evans (Manager Water & Waste) presents his report on the progress of the Peer Review.

Moved Councillor Kremer, seconded Member Youldon and resolved that the Te Anau Wastewater Discharge Project Committee moves out of public forum.

5 Extraordinary/Urgent Items

There were no Extraordinary/Urgent items.

6 Confirmation of Minutes

Resolution

Moved Member Cockburn, seconded Councillor Kremer

THAT the minutes of Te Anau Wastewater Discharge Project Committee, meeting held on 7 September 2015, be confirmed.

Reports

7.1

Action Sheet - 10 November 2015

Record No: R/15/11/19995

The Committee’s action sheet was tabled.

Resolution

Moved Member Youldon, seconded Member Cockburn

That the Te Anau Wastewater Discharge Project Committee: receives the report titled “Action Sheet - 10 November 2015”.

7.2

Update of Progress of the Peer Review

Record No: R/15/10/18943

Report by Mr Ian Evans (Manager, Water & Waste) outlining an update on the Peer Review Process was tabled.

Mr Evans advised that Pattle Delamore Partners Limited (PDP), have been working through all relevant documentation including feedback from meetings in preparation for the delivery of the review.

Mr Evans added to date PDP have largely completed their review of Council’s current consented proposal and are working on developing a long list of potentially alternative options which they will work down to a short list of alternatives which can be further developed to allow a comparison with the consented proposal.

Mr Evans reported that current indications from PDP are that they will have a draft report available for review by MWH by 24 November 2015. At this stage the report will be forwarded to MWH for their opportunity to comment as per the IPENZ Guidelines for undertaking such reviews.

Concern was expressed by some Committee members that the draft report will be reviewed by MWH as this Committee had resolved at an earlier meeting that all reports are to be referred to this Project Committee in the first instance.

Resolution

Moved Councillor Kremer, seconded Member Mouat

resolved that Mr Docherty, Pattle Delamore Partners Limited (PDP), be granted speaking rights on the report entitled “Review of Te Anau Wastewater Treatment and Disposal Options – Progress Update and Preliminary Findings.”

Mr Docherty gave a power point presentation on progress to date which included;

Ø Update and Preliminary findings – subject to change

Ø Previous meeting

Ø Scope of the review being undertaken by PDP

Ø Findings from review of the Kepler Block Scheme

Ø Alternative disposal options to the Kepler Scheme

v Longlist of options

v Shortlist

Ø Shortlisted options and associated treatment

Ø Summary of Pros and Cons of the Southland options

Ø Approximate costs

Ø Ranking Matrix discussion

Ø Timeline for reporting

Ø Questions

A question and answer forum followed the power point presentation.

The Committee was informed that the contents of the power point will form part of the Peer Review which is proposed to be presented to the Committee on 15 December 2015.

The issue of the draft report being available for review by MWH by 24 November 2015, for their opportunity to comment as per the IPENZ guidelines for undertaking such reviews was subject to discussion in view of the earlier resolution that any reports will be reviewed first by the Committee.

It was agreed that PDP will check IPENZ ethical requirements as to whether the draft PDP reports need to be reviewed by other consultants.

Resolution

Moved Member Cockburn, seconded Councillor Kremer

That the Te Anau Wastewater Discharge Project Committee:

a) Receives the report titled “Update of Progress of the Peer Review ” dated 29 October 2015.

b) Notes the contents of the power point presentation including the Peer Review which is proposed to be presented to the Committee on 15 December 2015.

c) Requests that PDP investigate IPENZ ethical requirements as to whether the draft PDP report is required to be reviewed by another consultant.

7.3

Management Report to Te Anau Wastewater Discharge Project Committee

Record No: R/15/10/19000

Management Report to 23 October 2015, prepared by Mr I Evans (Manager Water & Waste), was tabled.

Mr Evans reported to the Committee on the status of the on-going work relevant to;

Discharge Consent Application
Designation 80 Process
Short Term Discharge Consent Applications
Discharge to Air Consent Application (Oxidation Ponds)
Commencement of Pond Desludging
Inlet Screen Upgrade
Caswell Street Stormwater Upgrade
Upukerora Flood Defence Work
Contact Tanks and Te Anau and Manapouri Water Treatment Plants
Finance and Risk

Resolution

Moved Member Deaker, seconded Member Mouat

That the Te Anau Wastewater Discharge Project Committee:

a) Receives the report titled “Management Report to Te Anau Wastewater Discharge Project Committee” dated 23 October 2015.

Conclusion 4.00pm CONFIRMED AS A TRUE AND CORRECT RECORD AT A MEETING OF THE Te Anau Wastewater Discharge Project Committee HELD ON 10 NOVEMBER 2015

DATE:...................................................................

CHAIRPERSON:...................................................

Te Anau Wastewater Discharge Project Committee

16 December 2015

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Presentation on the Draft Peer Review to the Te Anau Wastewater Discharge Project Committee

Record No: R/15/12/22069

Author: Ian Evans, Strategic Manager Water and Waste

Approved by: Ian Marshall, GM - Services and Assets

☐ Decision ☐ Recommendation ☒ Information

Background

1 Following on from the Committee meeting on 10 November where the first cut of the peer review was presented and discussed Pattle Delamore Partners (PDP) have issued the draft final version (subject to any factual amendments identified) of their review.

2 The report is included as an attachment to this brief report.

3 Rob Docherty from PDP will be available at the Committee meeting on 16th December to discuss the report and provide an overview of options considered.

4 While the report finds no fundamental flaws with the current consented proposal or identifies any single proposal as superior to any other it does note alternative options that could potentially offer financial advantages when looking at Net Present Value (NPV) costing over 25 years.

5 Consideration of these as an alternative would require significant further investment for investigation work and ultimately gaining resource consent. There is a significant degree of risk associated with proceeding further, that the Committee will need to be fully aware of.

6 As a consequence it will be necessary for the Committee to fully understand the implications of any decision both financially and from a risk perspective. It will also be important to understand the legal implications of any departure from the current proposal under both the Local Government Act and the Resource Management Act. A significant degree of analysis of the contents of the report is required before any decision can be made.

7 Given that the report was only received on the 8^th December there has not been the time to undertake this analysis prior to the meeting. Staff members will prepare a full report outlining the range of risks and options and report to the Committee in February/March 2016. It is expected that recommendations on the future direction will be required. At this stage the only recommendation that can be made is that the peer review be received.

8 The decision to consider any alternative proposal therefore represents a significant decision under Section 77 of the Local Government Act and the Committee must be satisfied they have sufficient information to hand to allow the appropriate decisions to be made.

9 Council has already invested significant resource in purchasing the land at Kepler as well as all work required in support of the resource consent application. While it is possible recover the costs of the land purchase it would not be possible to recover significant costs associated with the resource consenting process to date.

10 Delaying the proposal and going through the resource consenting process for any alternative is likely to be as significant with the same degree of risk associated with the consenting process.

11 The Committee is still tasked with the development of the business case to proceed with the project and to provide suitable recommendations to Council for their approval.

12 It is also important that the Committee is aware that the current consent will not be surrendered until such times as any alternative proposal has been investigated and consented and that the appeal process will still need to progress. While all attempts will be made to keep the appeal process on hold it is important to remember that the Environment Court will ultimately dictate the pace of progress.

Recommendation

That the Te Anau Wastewater Discharge Project Committee:

a) Receives the report titled “Presentation on the Draft Peer Review to the Te Anau Wastewater Discharge Project Committee” dated 10 December 2015.

Attachments

a Draft - Te Anau Wastewater Peer Review Treatment and Disposal Options Report View

Te Anau Wastewater Discharge Project Committee

16 December 2015

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Management Report to the Te Anau Wastewater Discharge Project Committee

Record No: R/15/12/22181

Author: Ian Evans, Strategic Manager Water and Waste

Approved by: Ian Marshall, GM - Services and Assets

☐ Decision ☐ Recommendation ☒ Information

1 The purpose of this report is to keep Committee members updated on the progress of works being undertaken within the Te Anau and Manapouri areas that are not necessarily related to the larger discharge consent project. It is to provide information to Committee members so they may be able to deal with enquiries from ratepayers.

2 The report will be updated and presented at all upcoming Committee meetings. This information is up to date as of the week commencing 7 December 2015.

Status Report on Ongoing Work

3 Discharge Consent Application

· Consent was granted 15 January 2015.

· Three appeals were subsequently lodged with the Environment Court (EC).

· Both Council and appellants have agreed to participate in court appointed mediation.

· Response to EC was lodged by Environment Southland (ES) on 29 May 2015 indicating the position of all parties to the appeal.

· Further hold until 18 December, with the expectation this will be extended pending the outcome of the peer review.

· Council’s legal advisors will review the PDP report and provide legal advice on implications of the peer review outcomes. They will also prepare response to the Environment Court.

4 Designation 80 Process

· Council approved Commissioners’ recommendation to grant designation on 8 April 2015.

· One appeal was received but rejected by the EC.

· Council planning maps will be updated to show the designation.

· No further work required around this item at present.

5 Short Term Discharge Consent Application

· Application lodged with ES on March 2014.

· Additional information provided as requested.

· Affected parties identified and written approvals provided to ES.

· Draft conditions have been accepted by Council.

· Draft conditions have been discussed with ES on 17 August.

· Further information in support of the application has been supplied to
Environment Southland. Draft conditions have been agreed and awaiting further feedback.

· Short term consent was granted November 2015.

6 35 Year Discharge to Air Consent Application (for oxidation ponds)

· ES requested that discharge to air element of oxidation pond be separated.

· Consent for 35 years is being applied for.

· An Odour Management Plan has been drafted and will be submitted as part of the application.

· Meeting with ES has been scheduled for 17 August 2015 to agree processing times, draft conditions etc.

· The consent is likely to be processed on a non-notified basis subject to affected party approvals being sought.

7 Pond Desludging

· This work is required irrespective of the outcome of either appeal process.

· Hydra-Care has established on the site and completed the initial sludge survey and sampling of the three ponds.

· It has also begun constructing the dewatering bund which at this stage requires some final shaping.

· The bund has been constructed and fully lined.

· The desludging itself is expected to begin mid/late August which is slightly delayed from the previous report.

· Further delays to the desludging of the Winton pond have delayed the start date in Te Anau until early September.

· Hydra-Care are currently on site setting up their equipment with the plan to start desludging by the end of October.

· Hydra-Care have completed work on the large pond and disestablished from site. They will return in the new year to complete the remaining two smaller ponds.

8 Inlet Screen Upgrade

· Work required irrespective of the outcome of either appeal process.

· Te Anau Earthworks is undertaking the installation of the inlet screen.

· Earthworks commenced week commencing 18 May 2015.

· Installation is now fully complete with electrical and telemetry connections and some pipework modifications now the only items of outstanding work.

· Final installation and commissioning have been undertaken and screen is now fully operational.

9 Caswell Road Stormwater Upgrade

· This project is in no way connected to the sewerage works, it is purely a stormwater upgrade.

· Works are all but complete except for the installation of the final sump and reinstatement of the works.

· The excess gravel that is not required by Fiordland College will be stockpiled at the ponds for use in future works.

· It is expected that all works will be complete and the Contractor disestablished within a fortnight (weather dependent).

· If ground conditions are unsuitable, final grass sowing could take place in the spring.

· No further progress on this at present.

10 Upukerora Flood Defence Work

· ES is proposing flood defence work both upstream and downstream of the Upukerora Bridge.

· ES claims that work is necessary to protect both the bridge and Council’s oxidation ponds should the river deviate from its current course.

· ES indicates that any significant deviation could cause oxidation ponds to be inundated in the event of a significant flood.

· Any flood event will also increase the risk of the Upukerora Road downstream of the ponds being washed out.

· Risk of inundation also arises from not managing gravel levels in the river bed.

· Currently there is little demand for gravel and as a consequence, levels have increased over those previously measured.

· Meeting on 26 May 2015 discussed proposed works.

· As an outcome of the meeting ES will investigate feasibility and costs of a proposed alternative.

· The alternative proposal has been assessed and a draft with costs provided to Council on 24 July 2015. A further meeting will be scheduled by ES.

· Meeting with senior Council and ES staff agreed to delay the decision until the outcome of the peer review is known and understood as this may have implications for the degree of protection work required.

11 Contact Tanks at Te Anau and Manapouri Water Treatment Plants

· Full assessment of the condition and serviceability of the contact tanks at both
Te Anau and Manapouri water treatment plants will be undertaken in the upcoming financial year.

12 Finance and Risk

· Financial estimates and risk registers have been developed and will be presented to the Committee at future meetings once they have been aligned to Council’s Risk Management Policy.

· Further commentary on finances and risks will be part of the analysis report to the next Committee meeting.

Recommendation

That the Te Anau Wastewater Discharge Project Committee:

a) Receives the report titled “Management Report to the Te Anau Wastewater Discharge Project Committee” dated 10 December 2015.

Attachments

There are no attachments for this report.