Notice is hereby given that a Meeting of the Services and Assets Committee will be held on:

 

Date:

Time:

Meeting Room:

Venue:

Wednesday, 5 September 2018

9am

Council Chambers
15 Forth Street, Invercargill

 

Services and Assets Committee Agenda

OPEN

 

 

MEMBERSHIP

 

Chairperson

Brian Dillon

 

 

Mayor Gary Tong

 

Councillors

Stuart Baird

 

 

John Douglas

 

 

Paul Duffy

 

 

Bruce Ford

 

 

Darren Frazer

 

 

George Harpur

 

 

Julie Keast

 

 

Ebel Kremer

 

 

Gavin Macpherson

 

 

Neil Paterson

 

 

Nick Perham

 

 

IN ATTENDANCE

 

Committee Advisor

Fiona Dunlop

Group Manager, Services and Assets

Matt Russell

 

 

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 – Services and Assets Committee

 

The Services and Assets Committee is responsible for overseeing the following Council activities:

·                  

 

 

Transport;

·                 Property management including community facilities, acquisitions and disposals (including land dealings);

·                 Forestry;

·                 Water supply, wastewater and stormwater;

·                 Solid waste management;

·                 Flood protection;

·                 Waste management;

·                 Rural fire management;

·                 Te Anau Airport;

·                 Stewart Island Jetties and Riverton Harbour Committee;

·                 Water supply schemes.

 

The Services and Assets Committee shall have the following delegated powers and be accountable to Council for the exercising of these powers:

 

(a)            Monitoring the delivery of capital works projects and the implementation of the capital works programme.

(b)           Monitoring the delivery of operations and maintenance contracts.

(c)            To approve and/or assign all contracts for work, services or supplies where the value is in excess of $200,000 where those contracts relate to work within approved estimates.  Where the value of the work, services; supplies or business case or the value over the term of the contract is estimated to exceed $2M a prior review and recommendation of the business case by the Finance and Audit Committee is required.  The business case shall include as a minimum; risk assessment, a procurement plan and financial costings.

(d)           To monitor the return on all the Council’s investments including forestry;

(e)           To monitor and track Council contracts and compliance with contractual specifications.

 

The Services and Assets Committee is responsible for considering and making recommendations to Council regarding:

(a)                 Policies relating to the scope of activities of the Services and Assets Committee;

(b)                Changes to Council’s adopted Levels of Service;

(c)                 The dividend from the Forestry Business Unit.

 

The Services and Assets Committee may delegate the management and control of all Riverton harbour assets vested in the Southland District Council to the Riverton Harbour Committee.

 

The Services and Assets Committee may delegate the responsibility to oversee the development and maintenance of jetties located at Fred’s Camp, Millars Beach, Ulva Island, Port William and Little Glory Cove to the Stewart Island Jetties Subcommittee.


Services and Assets Committee

05 September 2018

 

TABLE OF CONTENTS

ITEM                                                                                                                                                                                  PAGE

Procedural

1             Apologies                                                                                                                                                                4

2             Leave of absence                                                                                                                                                4

3             Conflict of Interest                                                                                                                                             4

4             Public Forum                                                                                                                                                         4

5             Extraordinary/Urgent Items                                                                                                                        4

6             Confirmation of Minutes                                                                                                                               4

Reports for Resolution

7.1         Dipton Forest Tree Blanking                                                                                                                        9

Reports

8.1         Downer Water and Wastewater Maintenance Contract 10/01 - Monthly Report for July 2018                                                                                                                                                                          13

8.2         Roading Operations July 2018                                                                                                                 25

8.3         Update on Contract Status                                                                                                                        41   

Public Excluded

Procedural motion to exclude the public                                                                                                         45

C9.1      WasteNet Southland Contract 550 - Right of Extension                                                          45

C9.2      Acceptance of a tender for grazing of the North Makarewa recreation reserve       45  

 


 

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

 

Committee Members are reminded of the need to be vigilant to stand aside from decision-making when a conflict arises between their role as a member and any private or other external interest they might have.

 

4             Public Forum

Notification to speak is required by 5pm at least two days before the meeting. Further information is available on www.southlanddc.govt.nz or phoning 0800 732 732.

 

5             Extraordinary/Urgent Items

To consider, and if thought fit, to pass a resolution to permit the committee to consider any further items which do not appear on the Agenda of this meeting and/or the meeting to be held with the public excluded.

Such resolution is required to be made pursuant to Section 46A(7) of the Local Government Official Information and Meetings Act 1987, and the Chairperson must advise:

(i)            the reason why the item was not on the Agenda, and

(ii)          the reason why the discussion of this item cannot be delayed until a subsequent meeting.

Section 46A(7A) of the Local Government Official Information and Meetings Act 1987 (as amended) states:

“Where an item is not on the agenda for a meeting,-

(a)           that item may be discussed at that meeting if-

(i)            that item is a minor matter relating to the general business of the local authority; and

(ii)           the presiding member explains at the beginning of the meeting, at a time when it is open to the public, that the item will be discussed at the meeting; but

(b)             no resolution, decision or recommendation may be made in respect of that item except to refer that item to a subsequent meeting of the local authority for further discussion.”

 

6             Confirmation of Minutes

6.1         Meeting minutes of Services and Assets Committee, 26 July 2018


 

Services and Assets Committee

 

OPEN MINUTES

 

 

 

Minutes of a meeting of Services and Assets Committee held in the Council Chambers, 15 Forth Street, Invercargill on Thursday, 26 July 2018 at 9am.

 

present

 

Chairperson

Brian Dillon

 

 

Mayor Gary Tong

 

Councillors

Stuart Baird

 

 

John Douglas

 

 

Paul Duffy

 

 

Bruce Ford

 

 

Darren Frazer

 

 

George Harpur

 

 

Julie Keast

 

 

Ebel Kremer

 

 

Gavin Macpherson

 

 

Nick Perham

 

 

IN ATTENDANCE

 

Group Manager, Services and Assets

Matt Russell

Committee Advisor

Fiona Dunlop

Publications Specialist

Chris Chilton

 


1             Apologies

 

There were apologies from Councillors Paterson

 

Resolution

Moved Cr Macpherson, seconded Cr Harpur  and resolved:

That the  Services and Assets Committee accept the apology.

 

 

2             Leave of absence

 

There were no requests for leave of absence.

 

 

3             Conflict of Interest

 

There were no conflicts of interest declared.

 

 

4             Public Forum

 

There was no public forum.

 

 

5             Extraordinary/Urgent Items

 

There were no extraordinary or urgent items.

 

 

6             Confirmation of Minutes

 

Resolution

Moved Chairperson Dillon, seconded Cr Kremer and resolved:

That the Services and Assets Committee confirms the minutes of the meeting held on 9 May 2018 as a true and accurate record of that meeting.

 

 

Reports

 

 

7.1

IFS Growth Forest Manager's Report of Forestry Activity for the period 1 April to 30 June 2018

Record No: R/18/7/16381

 

IFS Growth Forest Manager – Reece McKenzie was in attendance for this item.

 

 

Resolution

Moved Cr Harpur, seconded Cr Macpherson  and resolved:

That the Services and Assets Committee:

a)            Receives the report titled “IFS Growth Forest Manager's Report of Forestry Activity for the period 1 April to 30 June 2018” dated 16 July 2018.

 

 

7.2

Roading Operations June 2018

Record No: R/18/6/15318

 

Strategic Manager Transport - Hartley Hare and Commercial Lead Roading – Dylan Rabbidge were in attendance for this item.

 

 

Resolution

Moved Cr Ford, seconded Cr Kremer  and resolved:

That the Services and Assets Committee:

a)            Receives the report titled “Roading Operations June 2018” dated 16 July 2018.

 

 

7.3

Downer Water and Wastewater Maintenance Contract 10/01 - Monthly Report for May 2018

Record No: R/18/6/15384

 

Operations Manager – Bill Witham was in attendance for this item.

 

 

Resolution

Moved Cr Perham, seconded Cr Baird and resolved:

That the Services and Assets Committee:

a)            Receives the report titled “Downer Water and Wastewater Maintenance Contract 10/01 - Monthly Report for May 2018” dated 16 July 2018.

 

 

7.4

Update on Contract Status

Record No: R/18/7/16052

 

Contracts Administrator – Trudy Saunders was in attendance for this item.

 

 

Resolution

Moved Cr Frazer, seconded Cr Keast and resolved:

That the Services and Assets Committee:

a)            Receives the report titled “Update on Contract Status” dated 16 July 2018.

 

 

 

 

 

 

The meeting concluded at 10.14am.                    CONFIRMED AS A TRUE AND CORRECT RECORD AT A MEETING OF THE Services and Assets Committee HELD ON THURSDAY 26 JULY 2018.

 

 

 

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

 

 

 

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

 


Services and Assets Committee

5 September 2018

 

Dipton Forest Tree Blanking

Record No:             R/18/8/20139

Author:                      Matt Russell, Group Manager Services and Assets

Approved by:         Steve Ruru, Chief Executive

 

  Decision                                        Recommendation                                  Information

 

 

Purpose

1        The purpose of this report is to seek unbudgeted expenditure to remove and replant approximately 15,000 dead trees covering an area of approximately 31 hectares in the Dipton Forest. This equates to roughly 16% of the 93,000 trees planted last year.

Executive Summary

2        Due to the uncharacteristically warm summer months in the 2017/2018 financial year, a significant number of trees planted last year in Dipton Forest have died and require removal and replanting.

3        In order to ensure the trees are able to be managed in line with the rest of the stock planted last year, these trees need to be replaced this season.

4        Blanking contingency is generally budgeted for at approximately $50/ha on the previous years planted area. Anecdotally, there is little or no blanking required from year to year. As such unbudgeted expenditure is sought to allow this work to be undertaken.

 

Recommendation

That the Services and Assets Committee:

a)            Receives the report titled “Dipton Forest Tree Blanking” dated 31 August 2018.

 

b)           Determines that this matter or decision be recognised as not significant in terms of Section 76 of the Local Government Act 2002.

 

c)            Determines that it has complied with the decision-making provisions of the Local Government Act 2002 to the extent necessary in relation to this decision; and in accordance with Section 79 of the Act determines that it does not require further information, further assessment of options or further analysis of costs and benefits or advantages and disadvantages prior to making a decision on this matter.

 

d)           Approves the unbudgeted expenditure of $15,948.28 to remove and replant approximately 31 hectares of dead stock at the Dipton Forest.

 


 

Background

5        Approximately 93,000 trees were planted in Dipton Forest last year. Of these 93,000 trees approximately 15,000 have died equating to roughly 16% of the 93,000 trees planted last year. This is due predominantly to the uncharacteristically dry summer months which were not considered normal.

6        In order to ensure consistency of the crop moving forward, it is considered critical to replace the dead trees this season. This process is commonly referred to as ‘blanking’. Historically a significant amount of blanking is not required, if at all. As such, this activity is not generally budgeted for. IFS Growth, SDC’s Forestry Management Contractor, have provided an estimate to undertake the required works. This estimate totals $15,948.28.

7        This report seeks the unbudgeted expenditure necessary to remove and replant the ~15,000 dead trees covering an area of approximately 31 hectares in the Dipton Forest. If approved this work would be undertaken with some urgency.

Factors to Consider

Legal and Statutory Requirements

8        There are no legal and statutory requirements necessary to consider in association with this request.

Community Views

9        No community views have been sought in relation to this request.

Costs and Funding

10      The funding is sought from the Forestry reserves.

Policy Implications

11      There are no policy implications considered relevant to this request other than ensuring responsible management of the Forestry portfolio.

Analysis

Options Considered

12      There are two options that have been considered in relation to this issue:

13      Option 1 – Do not replace the dead trees; and

14      Option 2 – Replace the dead trees.

Analysis of Options

Option 1 – Do not replace the dead trees

Advantages

Disadvantages

·        No additional expense

·        Approximately 31 hectares (area covered by the 15,000 trees) becomes either unproductive or, out of kilter in terms of crop management with the remaining ~80,000 trees planted last year.

 

Option 2 – Replace the dead trees

Advantages

Disadvantages

·        Productivity and crop management in Dipton Forest continues efficiently.

·        Additional ~$16k of unbudgeted expense is necessary.

 

Assessment of Significance

15      This issue and the associated decision is not considered to be significant.

Recommended Option

16      To proceed with Option 2 – replace the dead trees in Dipton Forest.

Next Steps

17      Following the decision from the Committee, the option taken will be actioned by Council staff.

 

Attachments

There are no attachments for this report. 

  


Services and Assets Committee

5 September 2018

 

Downer Water and Wastewater Maintenance Contract 10/01 - Monthly Report for July 2018

Record No:             R/18/7/18158

Author:                      Bill Witham, Operations Manager - Water and Waste Services

Approved by:         Matt Russell, Group Manager Services and Assets

 

  Decision                                        Recommendation                                  Information

 

 

Background

1        Downer was awarded Contract 10/01 for delivery of water and wastewater services to Council for the Southland District.  The contract was awarded in 2010 for a maximum period of 12 years.

Purpose

2        The purpose of this report is to update the Committee on the progress of this contract. 
A representative of Water and Waste Services will be in attendance to speak to the report.

Summary

3        KPI scoring of 85% for July, down 7%.

Compliance (Drinking-water)

4        All drinking water compliance testing was completed and carried out as per New Zealand Drinking-water Standards.  All samples were absent of Escherichia Coli, thus meeting the required bacteriological standards.

Compliance (Environmental)

There were no noncompliant wastewater tests during July. 

Operations and Maintenance

5        Service request calls for July were 53 including 34 water, 2 general, 9 rural and 8 sewer calls.  This is not unusual for this time of year.

Financial

6        There were no outstanding claims or variations to the contract.  All claims and invoices for completed work were certified and accepted.

Customer Service

7        There were 53 service requests received with 51 inspected within response time.

Health and Safety

8        There were no health and safety incidents in July.

Quality Assurance

9        One Non Conformance/Opportunity for Improvement Reports was issued and no instances of rework or product failure during the month.

 

Recommendation

That the Services and Assets Committee:

a)            Receives the report titled “Downer Water and Wastewater Maintenance Contract 10/01 - Monthly Report for July 2018” dated 27 August 2018.

 

Attachments

a             Downer Monthly Report July 2018    

 


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05 September 2018

 


 


 


 


 


 


 


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Services and Assets Committee

5 September 2018

 

Roading Operations July 2018

Record No:             R/18/8/18862

Author:                      Dylan Rabbidge, Commercial Lead Roading

Approved by:         Matt Russell, Group Manager Services and Assets

 

  Decision                                        Recommendation                                  Information

 

 

 

Purpose

1       The purpose of this report is to update the Committee on the progress of the major roading maintenance contracts and provide some context to the 2018/19 budget.

2       SouthRoads currently have the Waimea and Central Alliance maintenance contracts with Fulton Hogan having the Foveaux Alliance Contract.

Summary

3       Customer Satisfaction; 131 Requests for Service (RFS), across the three Alliance contracts were received in July compared to 128 in 2017/18 an increase of 3 or 2.3%.

4       Health and Safety; 14 safety audits were completed in July with no Lost Time Injuries and 25 near miss reported. 

5        Activity Performance:

·     Metalling, 6,967m3 was completed in July with a total 2018/19 budget of 57,500 m3.  Generally Fulton Hogan undertake a small amount of metalling each month where Southroads complete approx. 30% in the first half of the year with 60% occurring in the last quarter.

·     Grading, 1,260 km were graded in July with a total 2018/19 budget of 12,900 km.

6       Maintenance expenditure split for 2018/19 is provided in the graph below with a 2018/19 budget of $11.6M. This compares to a 2017/18 budget of $11M and an actual spend of $11.2M. 

 

7       Capital expenditure split for 2018/19 is provided in the graph below with a 2018/19 budget of $15.9M. This compares to a 2017/18 budget of $24.3M and an actual spend of $23.8M.

 

8       The roading team are still waiting on the final approval from NZTA for the National Land Transport Plan, this is expected in late August early September.

9       The repair of the Chaslands Highway Slip began in late July, the benching work to accommodate the drilling platform has identified that the slip is still currently moving. Fulton Hogan have stopped work due to health and safety, they are currently looking into alternative solutions.

10     A major focus of 2018/19 will be our bridge network. Both an increased maintenance regime and increased renewals. Bridging is seen as the biggest risk to Council in the Roading Department due to the number of bridges reaching the end of their useful life. 

Financial

11      There were no outstanding claims or variations to the contract.  All claims and invoices for completed work were certified and accepted. All retentions have now been paid as the Alliance partners have signed the Project Alliance Agreements.

12      Alternative Coastal Route Seal Extension:

·        The Project Status Report is attached.

 

 

Recommendation

That the Services and Assets Committee:

a)            Receives the report titled “Roading Operations July 2018” dated 28 August 2018.

 

Attachments

a             Central Report - July 2018

b             Combined Reporting - July 2018

c             Foveaux Report - July 2018

d            Health and Safety SouthRoads - July 2018

e             Safety Report Fulton Hogan - July 2018

f             Waimea Report - July 2018

g            July Project Status Report - ACR    

 



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Update on Contract Status

Record No:             R/18/8/19215

Author:                      Trudy Saunders, Contracts Adminstrator

Approved by:         Matt Russell, Group Manager Services and Assets

 

  Decision                                        Recommendation                                  Information

 

 

Background

1.      The Services and Assets Contract Management register tracks the Transport, Water and Waste and Property Departments operational and CAPEX contracts.  This report seeks to update the status of the Community Services related contracts only.

2.      The Transport, Water and Waste OPEX and CAPEX contracts are reported through their respective operational reports.

Purpose

3.      The purpose of this report is to update the Committee on the status of all Community Services contracts within Services and Assets.

Summary

Community Service Contracts as at
3 July 2018

Current

Due Soon

Work In Progress

Overdue

On Hold

TOTAL

Department

Previous

This Month

Previous

This month

Previous

This Month

Previous

This Month

Previous

This Month

Previous

This Month

Community Engineers

35

35

0

0

0

0

2

1

1

1

38

38

Property

16

16

0

2

1

1

1

0

0

0

22

18

Property – land related

4

4

0

0

1

1

0

0

2

2

7

7

 

55

55

0

2

2

2

3

1

3

3

63

63

4.      Changes made since last report:

·    Two Hall Custodian Contracts have now been extended for one year.

·    Two Hall Custodian Contracts are due soon.

Overview

5.      The Property Department is responsible for contracts that cover hall custodians and cleaning of buildings owned by SDC, such as offices and libraries.

6.      The Community Engineers’ team is responsible for contracts that cover township maintenance, mowing, gardening and cleaning of public toilets.

7.      Some cleaning of toilets and mowing areas are covered within the Roading Alliance Contracts under the Transport Team.

Type of Service (CE’s)

Number

Type of Service (Property’s)

Number

Beautification

21

Land related

7

Beautification / cleaning (townships)

3

Major projects

0

Cleaning (public toilets)

13

Hall Custodians

6

Project

1

Compliance

2

 

 

Cleaning (offices and libraries)

10

Sub Total

38

 

25

 

 

Analysis

8.      Two contracts are overdue.  These are:

·    15/17 - Browns Community Centre cleaning - with Property Officer to extend.

·    16/27 - Balfour mowing agreement with Community Engineer to confirm. This will be included in the 17A Community Services Review.

9.      The following contracts are currently work in progress:

·    None at this time.

Risk and Strategy

10.    As part of the 17A Service Delivery Review outcomes for Community Facilities, a workshop with Councillors and ELT will be held on 4 September 2018 to review options going forward.

Financial

11.    A detailed financial assessment and summary will be produced as part of the maintenance contract review later this calendar year.

 

Recommendation

That the Services and Assets Committee:

a)            Receives the report titled “Update on Contract Status” dated 28 August 2018.

 

 

Attachments

a             Community Services Full List of Contracts 13.08.2018    

 


Services and Assets Committee

05 September 2018

 

PDF Creator

  

 


Services and Assets Committee

05 September 2018

 

Exclusion of the Public: Local Government Official Information and Meetings Act 1987

 

Recommendation

 

That the public be excluded from the following part(s) of the proceedings of this meeting.

C9.1   WasteNet Southland Contract 550 - Right of Extension

C9.2   Acceptance of a tender for grazing of the North Makarewa recreation reserve

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Ground(s) under section 48(1) for the passing of this resolution

WasteNet Southland Contract 550 - Right of Extension

s7(2)(h) - The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.

 

That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists.

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Ground(s) under section 48(1) for the passing of this resolution

Acceptance of a tender for grazing of the North Makarewa recreation reserve

s7(2)(a) - The withholding of the information is necessary to protect the privacy of natural persons, including that of a deceased person.

 

s7(2)(f)(ii) - The withholding of the information is necessary to maintain the effective conduct of public affairs through the protection of such members, officers, employees and persons from improper pressure or harassment.

 

That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists.