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

 

Date:

Time:

Meeting Room:

Venue:

 

Wednesday, 10 July 2019

9am

Council Chamber
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

 

Group Manager, Services and Assets

Matt Russell

Committee Advisor

Fiona Dunlop

 

 

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

10 July 2019

 

TABLE OF CONTENTS

ITEM                                                                                                                                                                                  PAGE

Procedural

1             Apologies                                                                                                                                                                5

2             Leave of absence                                                                                                                                                5

3             Conflict of Interest                                                                                                                                             5

4             Public Forum                                                                                                                                                         5

5             Extraordinary/Urgent Items                                                                                                                        5

6             Confirmation of Minutes                                                                                                                               5

Reports

7.1         Downer Water and Wastewater Maintenance Contract 10/01 - Monthly Report for May 2019                                                                                                                                                                          11

7.2         Roading Operations May 2019                                                                                                                29

7.3         McDonald Road Bridge Replacement - Contract 19/12                                                             41

7.4         Bridge Strategy Update Report                                                                                                              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, 05 June 2019


 

Services and Assets Committee

 

OPEN MINUTES

 

 

 

Minutes of a meeting of Services and Assets Committee held in the Council Chamber, 15 Forth Street, Invercargill on Wednesday, 5 June 2019 at 8am - 8.01am, 10.36am – 11.03am (10.59am – 11.03am PE)

 

present

Chairperson

 

Councillors

Brian Dillon

Mayor Gary Tong

Stuart Baird

John Douglas (8am - 8.01am, 10.37am – 11.03am)

Darren Frazer

George Harpur

Julie Keast

Ebel Kremer

Neil Paterson

Nick Perham

 

APOLOGIES

Councillor Duffy

Councillor Macpherson

 

ABSENT

Councillor Ford

 

IN ATTENDANCE

Chief Executive

Steve Ruru

Group Manager, Services and Assets

Matt Russell

Group Manager, Community and Futures

Rex Capil

Chief Financial Officer

Anne Robson

Communications Manager

Louise Pagan

Governance and Democracy Manager

Clare Sullivan

Committee Advisor

Fiona Dunlop


 

 

Adjournment of Meeting

Councillor Dillon advised that the meeting of the Services and Assets Committee would adjourn until the conclusion of the Council meeting.

Resolution

Moved Chairperson Dillon, seconded Cr Keast and resolved:

That the meeting of the Services and Assets Committee would adjourn until the conclusion of the Council meeting.

 

The meeting adjourned at 8.01am.

 

The meeting reconvened at 10.36am.

 

Mayor Tong and Councillors Baird, Dillon, Frazer, Harpur, Keast, Kremer, Paterson and Perham were present when the meeting reconvened.

 

 

1          Apologies

 

There were apologies from Councillors Duffy and Macpherson

 

Moved Cr Paterson, seconded Cr Perham and resolved:

That the Services and Assets Committee accept the apologies.

 

 

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/Urgent items.

 

 

 

6             Confirmation of Minutes

 

Resolution

Moved Cr Harpur, seconded Cr Frazer and resolved:

That the Services and Assets Committee confirms the minutes of Services and Assets Committee, held on 8 May 2019 as a true and correct record of that meeting.

 

 

(Councillor Douglas returned to the meeting at 10.37am.)

 

Reports

 

 

7.1

Duncraigen Rural Water Supply Transfer

Record No: R/19/3/5310

 

Manager Operations, Water and Waste – Bill Witham was in attendance for this item.

 

Mr Witham advised that the purpose of the report was to outline the steps required to transfer the Duncraigen rural water supply to Pāmu (Landcorp Farming Limited) and seek a recommendation to proceed with the transfer.

 

The meeting noted that the Te Anau Rural Water Supply Subcommittee agreed in principle to proceed to negotiate a transfer at their meeting on 12 March 2019.

 

The meeting agreed to proceed with the transfer but noted that the decision would have to be confirmed by Council. 

 

Recommendation E in the officers report was declared redundant because of the decision to proceed with the transfer.

 

 

Resolution

Moved Mayor Tong, seconded Cr Kremer recommendations a to c and d with changes (as indicated) and resolved:

That the Services and Assets Committee:

a)            Receives the report titled “Duncraigen Rural Water Supply Transfer” dated 29 May 2019.

 

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)           Recommends to Council and agrees in principle to proceed to negotiate a transfer.

 

e)            Does not agree in principle to proceed.

 

 

7.2

Downer Water and Wastewater Maintenance Contract 10/01 - Monthly Report for April 2019

Record No: R/19/5/9739

 

Manager Operations, Water and Waste – Bill Witham was in attendance for this item.

 

 

Resolution

Moved Cr Harpur, seconded Cr Keast and resolved:

That the Services and Assets Committee:

a)            Receives the report titled “Downer Water and Wastewater Maintenance Contract 10/01 - Monthly Report for April 2019” dated 29 May 2019.

 

 

 

Public Excluded

 

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

Resolution

Moved Chairperson Dillon, seconded Cr Baird and resolved:

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

C8.1 Te Anau Wastewater Upgrade – Recommendation to Award Pipeline Construction Project

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

 

Te Anau Wastewater Upgrade – Recommendation to Award Pipeline Construction Project

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

s7(2)(i) - The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).

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.

 

That the Chief Executive, Group Manager, Services and Assets, Group Manager, Community and Futures, Chief Financial Officer, Commercial Infrastructure Manager – Dylan Rabbidge and Management Accountant – Susan McNamara, Communications Manager, Governance and Democracy Manager and Committee Advisor be permitted to remain at this meeting, after the public has been excluded, because of their knowledge of the items C8.1 Te Anau Wastewater Upgrade – Recommendation to Award Pipeline Construction Project. This knowledge, which will be of assistance in relation to the matters to be discussed, is relevant to those matters because of their knowledge on the issues discussed and meeting procedure.

 

 

The public were excluded at 10.59am.

 

Resolutions in relation to the confidential items are recorded in the confidential section of these minutes and are not publicly available unless released here.

 

 

The meeting concluded at 11.03am.                    CONFIRMED AS A TRUE AND CORRECT RECORD AT A MEETING OF THE Services and Assets Committee HELD ON WEDNESDAY 5 JUNE 2019.

 

 

 

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

 

 

 

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

 


Services and Assets Committee

10 July 2019

 

Downer Water and Wastewater Maintenance Contract 10/01 - Monthly Report for May 2019

Record No:             R/19/6/11897

Author:                      Bill Witham, Manager Operations - Water and Waste

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. 

Summary

3        KPI scoring of 100% for May 2019 was unchanged from the previous month.

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)

5        There were no non-compliant tests during May.

Operations and Maintenance

6        Service request calls for May 2019 were 57 including 38 water, 7 rural, 7 sewer and 5 general calls.  This is not unusual for this time of year.

Financial

7        There are no outstanding variations. 

Customer Service

8        There were 57 service requests received with all but 2 inspected within the required response time.

Health and Safety

9        There were five incidents reported in May:

·    Motor vehicle drove over 10 cones prior to the safety zone at Great North Road, coming to a stop with cones wedged under the car.  Referred to police.

·    Trenching across road and struck cable.  Called Chorus and advised was an old inactive line.

·    Bending over fixing toby, stood up on an awkward angle and tweaked back.

·    Shut door on ute canopy and smashed window.

·    Damage to CCTV camera.

Quality Assurance

10      No Non Conformance/Opportunity for Improvement Reports were 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 May 2019” dated 2 July 2019.

Attachments

a             Downer Monthly Summary Report - May 2019

b             Downer Monthly Report May 2019    

 


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Services and Assets Committee

10 July 2019

 

Roading Operations May 2019

Record No:             R/19/5/9937

Author:                      Hartley Hare, Strategic Manager Transport

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; 197 Requests for Service (RFS), across the three Alliance contracts were received in May compared to 181 in 2017/18, an increase of 16 or 9%. This is a significant swing from April which was a relatively quiet month by comparison (total 95).

4       Health and Safety; 11 safety audits were completed in May with no Lost Time Injuries and
14 near misses reported. 

5        Activity Performance:

·        Metalling, 52,179m3 (90%) of a total 2018/19 budget of 57,500 m3.  Generally, Fulton Hogan undertake a small amount of metalling each month where SouthRoads complete approximately 30% in the first half of the year with 60% occurring in the last quarter.

·        Grading, 1,481km were graded in May with 12,605km (98%) of a total 2018/19 budget of 12,900 km.

·        The 2019/20 pre-reseal repairs are currently being completed and on track. SouthRoads focus was initial on the Central contract for the Stabilisation crew with 100% completed, Foveaux have 100% completed and Waimea are sitting at 100% completed.

6       A major focus for the Alliance is the repair of structures identified by Stantec as part of their six yearly structural inspections with the urgent tasks identified being completed. Pending the final outcome from Stantec’s 2018/19 inspection, these will then be programmed for action.

7       The Alliance also continue to focus on pre-seal repairs and getting as much of the work completed that they can during winter such as drainage works prior to completing any pavement repairs that may still be required following the post winter inspection.

Alternative Coastal Route Seal Extension

8        Legalisation work is still in progress and Bonisch are still progressing well with the last of the plans to be lodged with LINZ in early July. The whole process is taking longer than anticipated due to the share number of land parcels involved.  It was originally anticipated that this would be completed by 30 June 2019 however this is no longer the case and is more likely to be completed by December.

 

Otapiri Gorge Emergency Event

9        The majority of the work is now completed including work on the main slip on Otapiri Gorge Road along with the more minor slips on Heale Ridge Road and Spirit Burn Road.

Chaslands Highway

10      This project is now practically finished with the guardrail and sealing being completed.

Pavement Rehabilitation

11      All rehabilitation sites have been completed for the year with around 9km of road completed during the 2018/19 construction season.

12      The programme for the 2019/20 was presented to Services and Assets Committee in early May. The design and tender elements are on track with the first tenders to be released in July.

Financial

13      There were no outstanding claims or variations to the maintenance contracts.  All claims and invoices for completed work were certified and accepted.

14      As part of the July report a summary of year-end achievements will be presented in August.

 

 

Recommendation

That the Services and Assets Committee:

a)            Receives the report titled “Roading Operations May 2019” dated 2 July 2019.

 

Attachments

a             Central Alliance Safety Report - May 2019

b             Central Alliance A3 Report - May 2019

c             Waimea Alliance A3 Report - May 2019

d            Foveaux Safety Report - May 2019

e             Foveaux Alliance A3 Report - May 2019

f             May Combined A3 Reporting    

 


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10 July 2019

 


Services and Assets Committee

10 July 2019

 


Services and Assets Committee

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Services and Assets Committee

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Services and Assets Committee

10 July 2019

 

McDonald Road Bridge Replacement - Contract 19/12

Record No:             R/19/6/11599

Author:                      Roy Clearwater, Roading Asset Engineer

Approved by:         Matt Russell, Group Manager Services and Assets

 

  Decision                                        Recommendation                                  Information

 

 

 

Purpose

1        The report outlines the tenders received for Contract 19/12 – McDonald Road Bridge Replacement and seeks approval from the Services and Assets Committee to award Contract 19/12 to the recommended tenderer.

Executive Summary

2        The report covers the tendering outcome for the replacement of McDonald Road Bridge.

3        The report covers the background to the project, the tenders received, the evaluation carried out and the recommendations for letting the contract.

 

Recommendation

That the Services and Assets Committee:

a)            Receives the report titled “McDonald Road Bridge Replacement - Contract 19/12” dated 2 July 2019.

 

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)           Accept Concrete Structures (NZ) Ltd tender price of $416,478.00 plus GST.

 


 

Background

4        McDonald Road Bridge is nearing the end of its useful life and currently has a posting of 70% of Class 1.

5        The three affected properties on McDonald Road have all been consulted with and an agreement reached that Council will replace the structure but divest it to one of the property titles with an easement for remaining parties as part of the agreement.

6        On 1 November 2018 Council approved to:

·    Proceed with procurement for a bridge replacement and the divest to the landowner

·    Delegate authority to the Chief Executive and Group Manager Services and Assets to let a contract for the replacement of McDonald Road Bridge up to a contract value of $350,000.00 subject to satisfactory tenders being received.

7        Signed agreements with all affected landowners have been received to transfer ownership of the bridge post replacement.

8        A design/build tender was advertised on 27 March 2019 for a single span, 100 year design life structure.

9        The tender was advertised on Local Government Online and in the Tenders Gazette. Three conforming tenders and two alternative non-conforming were received by the closing date of
9 May 2019.

10      The submitted tenders are as follows (excluding GST):

Tenderer

Tender Price

Concrete Structures (NZ) Ltd

$416,478.00

SouthRoads

$424,223.09

Whitestone Contracting Ltd

$438,582.22

Fulton Hogan Ltd (Alternative)

$342,729.90

SouthRoads (Alternative)

$370,424.06

11     Both alternative tenderers were deemed non-conforming as they did not conform to the specific requirement for a single span structure.

12      The lowest conforming price received was 16% greater than the delegated authority approved by Council for the Chief Executive and Group Manager Services and Assets to award the contract up to the value of $350,000.00.

13      The three conforming tenders were within 5% of each other.

14      Given the size of the structure (24m span), Concrete Structures (NZ) Ltd price of $416,478.00 is consistent/competitive with market rate per lineal meter.

15      Based on the above, Concrete Structures (NZ) Ltd is the recommended tenderer for Contract 19/12 – McDonald Road Bridge Replacement.

Issues

16      McDonald Road Bridge is no longer fit for intended purpose and has reached a point where action is required.

17      Council cannot afford to continue replacing and maintaining all structures due to the share number and the cost involved. This has resulted in the development of the bridge replacement/rationalisation programme for 2018-21 Long Term Plan period.

Factors to Consider

Legal and Statutory Requirements

18      Under the Local Government Act 2002, Council has authority to dispose of assets unless expressly provided otherwise in the Act.

19      McDonald Road Bridge has had a legal agreement prepared and signed to transfer ownership of structure post construction.

20      As with all projects, there is the risk of a legal challenge regarding the tender results from unsuccessful tenderers.  To reduce this risk, the Tender Evaluation Team has carefully followed Council’s Procurement Policy and the NZTA procurement procedures.

Community Views

21      The affected stakeholders have all been consulted, along with the respective Ward Councillor.

Costs and Funding

22      McDonald Road Bridge is one of the 18 structures approved by Services and Assets Committee on 17 October 2018 for replacement or rationalisation utilising the existing approved LTP funding of $3,050,000.

23      This activity will form part of the overall bridge replacement programme and be funded from the Low Cost Low Risk category with NZTA share of 51%.

Policy Implications

24      The project has been tendered and evaluated under the NZTA Lowest Price Conforming Tender Methodology process and in compliance with Council’s Procurement Policy.

Analysis

Options Considered

25      Two options are considered and outlined below:


 

Analysis of Options

Option 1 – Award contract to replace bridge

Advantages

Disadvantages

·        Remove existing high risk posted structure in network.

·        Divest new bridge to landowners and remove a structure from Council’s asset database.

·        No ongoing costs with maintenance or inspections post replacement.

·        Greater short term financial input required to replace and divest bridge.

 

Option 2 – Reject tenders and retain existing bridge

Advantages

Disadvantages

·        Reduced financial input required in the short term.

·        Structure continues to pose risk to Council.

·        Ongoing maintenance and inspection costs.

·        Potential to not be able to divest to landowners if not carried out now.

 

Assessment of Significance

26      In terms of Council’s Significance and Engagement Policy, the proposed actions are not considered significant as the bridges are considered on a network level and not an individual basis.

Recommended Option

27      The recommended tenderer has successfully completed similar work throughout New Zealand and has completed bridge replacement projects for Southland District Council a number of years ago.  The price submitted is considered reasonable and therefore we recommend the acceptance of the tender from Concrete Structures (NZ) Ltd of $416,478.00 (excluding GST).

Next Steps

28      The Services and Assets Committee formally award the contract to the recommended tenderer and Council’s Group Manager Services and Assets, formally notifies the successful and unsuccessful tenderers of the outcome from the tendering process.

 

Attachments

There are no attachments for this report. 

 


Services and Assets Committee

10 July 2019

 

Bridge Strategy Update Report

Record No:             R/19/6/11628

Author:                      Roy Clearwater, Roading Asset Engineer

Approved by:         Matt Russell, Group Manager Services and Assets

 

  Decision                                        Recommendation                                  Information

 

 

 

Purpose

1        This report is to provide a consolidated view to Council on the bridge strategy that Southland District Council is focussed on delivering through the current Long Term Plan (LTP) period and proposed for the 2021-2031 LTP.

Background

2        The 2018-2028 LTP identified that Southland has 852 bridges and that a significant number of these will require replacement in the coming years.

3        Approximately $1M per annum was approved in the 2018-2028 LTP programme for bridge replacements.

4        As part of the 2018-2028 LTP development, it was also recognised that more work was required to be undertaken in order to better understand the asset condition and performance. Further, it was evident that a strategy will be required to deal with the significant increase in costs associated with the replacement programme for the bridge portfolio over the coming years.

Bridge Matrix

5        Traditionally renewals have been prioritised based on predominantly condition alone. However, given the scale of renewals required over the coming years and the budget available as provided through the 2018-2028 LTP, it was evident that the Transport team cannot afford to maintain all of its existing structures within the network. In order to prioritise the current available funding it was necessary to prioritise and rationalise existing assets as they reach the end of their useful lives within the current budget period.

6        The outcome of this work has resulted in the bridge matrix which has been developed as a decision making tool to determine whether a structure should be replaced, divested or removed.


 

7       The parameters used in the matrix are NZTA’s One Network Road Classification (ONRC) criteria and the available alternative detour lengths as per the below:

NZTA

ONRC

Classification

Alternative Access Detour Length

20+km or No Access

15-20km

10-15km

5-10km

0-5km

Primary Collector

 

 

 

 

 

Secondary Collector

 

 

 

 

 

ACCESS

 

 

 

 

 

Low Volume Access
(11-50 vpd)

 

 

 

 

 

Low Volume Access
(0-10 vpd)

 

 

 

 

 

Southland District Council Bridge Replacement Matrix for Bridges

NZTA One Network Road Classification (ONRC) criteria can be found here:

https://www.nzta.govt.nz/roads-and-rail/road-efficiency-group/onrc/

 

Replace (or Upgrade) Bridge

 

Replace (or Upgrade) Bridge & Divest

 

Replace (or Upgrade) Bridge & Divest with third party contribution

 

Remove Bridge

8        The bridge matrix / prioritisation tool was developed to be utilised as a first cut of the programme.  The matrix does not take into consideration other structures on the proposed alternative routes.  As a result there are potentially structures that cannot be removed, or be divested for legal reasons. Further, in some cases the available detour might not be appropriate.

2018-2021 Programme

9        On 17 October 2018, the Transportation team presented a programme of 18 structures to Services and Assets Committee for replacement/rationalisation.

10      This programme utilised the bridge matrix for the outcome of whether to replace, divest or remove a particular structure.

11      Services and Assets Committee approved the implementation of the three year bridging replacement/rationalisation programme for 2018-21 LTP within the approved LTP budget of $3,050,000.

Future Programme

12      The Remaining Useful Life (RUL) of each structure is assessed on an ongoing rolling cycle and determined by our professional services provider. As is indicated above, the RUL is used as a key input into developing the order in which bridges require attention. Generally, the approach has been to address the highest risk structures first.  It soon became evident that too many bridges are reaching the end of their lives without reaching their expected RUL.  Therefore is was proposed to look at the 12 year programme (171 structures) in entirety rather than in order of estimated RUL. This number quickly grew to 193 when reviewing the remaining timber structures in our network requiring replacement within the next 20-years. Once the current backlog is resolved, our structures network and subsequent replacement programme would reduce significantly and stabilise allowing a period of maintenance and appropriate depreciation funding to manage the workload moving forward.

13      To replace all 193 structures over the next 12 years would cost a total of $39.7M (2018 Valuation data) or an average of $3.3M per annum. As indicated above, the current LTP budget provided for approximately $1M per annum. Through the 2021-2031 LTP it is intended to engage with the community and consult on the levels of services and associated cost implications to determine the parameters utilised in the prioritisation matrix. In particular the focus intends to be around whether the detour routes too long or short, and whether the community is prepared to accept an aggregate level of service reduction (i.e. the removal of some structures), in order to minimise the cost implications of the replacement programme.

14      For clarity, utilising the bridge replacement matrix moving forward would result in the replacement of approximately 150 bridges and the removal of more than 40 bridges. This approach would rationalise the overall cost of the renewals programme by approximately $8M. However, it is recognised that the community may not wish to reduce the number of structures on the network at all.

15      Irrespective of whether the community is prepared to rationalise the structures network, there will be a need to prioritise the delivery of the replacement programme. The matrix will generally be utilised to determine the replacement priority. As such, where bridges deteriorate at an accelerated pace, but an acceptable detour is available, it is likely that temporary closure will be the outcome. These closures may remain in place for a number of years pending the priority order of the programme. It is acknowledged that this will be the source of significant frustrations for some communities, however, safety risk and accessibility considerations need to be prioritised.

16      It is worth noting that the bridge matrix tool can only be used as a first cut of the programme.  The matrix does not take into consideration other structures on the proposed alternative routes.  There will also be situations where structures cannot be removed or be divested for legal reasons.  However, there are some situations where some proposed replacements can be considered for removal or postpone replacement until beyond the 12-year programme with a degree of structural upgrade work. 

17      For the second cut of the programme, each bridge has been reviewed (desktop) one-by-one to determine the flow on effects and whether the matrix recommendation is appropriate. As part of the validation it was considered whether or not the bridge has a detour available, the detour length, ownership of land either side of the bridge, likely forestry or other industry impacts and other social impacts such as tourism. 


 

Approved LTP 2018-21 projects

18      Of the 18 approved structures for replacement or rationalisation, this three-year period we have achieved the following as at the end of Year 1:

·    George Road Bridge – Constructed

·    Wadworth Road Bridge – Upgraded and Divested

·    Wyndham River Bridge – Divested

·    McIntosh Road – Agreement for removal almost complete

·    Mararoa Road Bridge – Contract awarded for construction 19/20

·    MacDonald Road Bridge – Tendered; seeking approval to award for construction 19/20

·    Off Tussock Creek Road Bridge – Programmed for removal July 2019

19      See Attachment A for current status of the 18 structures.

Accelerated two year programme (design/builds)

20     Noting the scale of renewals required over the next 12 years and the need to get underway with the replacement programme, on 22 May 2019, staff sought approval from both NZTA and Council for further unbudgeted expenditure of $3M (SDC share of $1.47M) to help resolve some of the shortfall in the required bridge replacement programme over the next two-year period (prior to the 2021-2031 LTP).

21     To best utilise the additional $3M approved by Council staff are working with the Contracting industry to identify and complete as many ‘quick wins’ as possible. The “quick wins” generally involve simple design/build opportunities that have been deemed required to be replaced and retained by Council and hence no divestment or significant consenting issues are likely to cause delays. There are also a number of bridges that have been added to this list on the basis of the risk they pose to the network should failure occur both in terms of Safety and lack of alternative access.

22     It is recognised that with this approach, Council may lose the opportunity to divest some of these structures in the short term – however the health and safety risks must take precedence in the short term.

23      The “quick win bridges” have then been sorted by length to determine sites that will lend themselves to simple design/build methodology. Structures less than 3m have been left out as these will be evaluated separately for possible culverts. Structures greater than 12m have also been left out as these will most likely need bespoke type designs and therefore only 4-12m structures have been considered for design/build replacement.

24      The list of structures have then been prioritised based on existing postings and remaining useful life.

25      The design/build contracts will be let in such a way that the sites can be changed or added to if we have an urgent bridge that needs to take priority.

26      Taking this approach it is expected approximately 15-20 structures can be replaced by design/build methodology utilising this additional $3 million of funding during 2019-2021.

27      Geotechnical investigations are programmed for the month of July for the top 20 highest risk 4-12m structures to provide tenderers with as much site specific information as economically viable and possible.

28      Post receiving the geotech information it is intended that a tender will go to market with 2 x packages of work with additional provisional sites to add into the programme if budget allows following the tender process. This work will assist in informing the budget requirements through the 2021-2031 LTP. 

29      The tenders will be lowest price conforming methodology with a pass/fail non-price attributes.

30      It is anticipated that Council will be in a position to award the contracts in approximately September, at which point the Transportation team will report to the Services and Assets Committee to seek approval to award the contracts with the finalised programme and price.

Bespoke Designs

31      Within the 12-year programme of renewals there are a number of structures that are greater than 12m span and as such are expected to require site specific designs.

32      Of these, 10 have an RUL of 10 years or less.  It is proposed that these 10 structures are designed over the next two years of this LTP so they are ready to go and can be budgeted for in next LTP.  In addition to these structures, the Lake Monowai suspension bridge needs consideration for a long term solution (significant upgrade or replacement).

33      The above designs are estimated to cost approximately $600-700K. However this will put Council in a good position to release work early in the 2021-2031 LTP period.

2031 LTP

34      It is anticipated that all of the bridge replacements will fall into the NZTA Low Cost Low Risk category (under $1M).

35      Structural component replacements will be considered prior to any replacement if a positive Net Present Value (NPV) can be achieved when considering whole of life.

36      Short term, low cost upgrades will also be an option considered to keep structures open and prolong life until a replacement can be programmed.

37      The 12-year programme based on the 193 bridges is approximately $40M (with an average cost of just over $200K per bridge) which therefore = ~$10M required per 3-year cycle to replace all the bridges that are likely to reach their RUL.  Significantly more than the ~$3M allocated.

38      If we were to utilise the matrix in its current form, it is estimated that this cost would be reduced to approximately $30M over 12 years, or $7.5M per 3-year cycle.

39      Significant additional investment will be required (at least double) compared to the approximate $180K/annum budgeted for Structures Component Replacements, over this period to extend asset life and buy time, including dealing with any surprises.

40      There are no bridges greater than $1M on radar in 2031 LTP. Monowai Suspension bridge is the only exception that is going to either need significant upgrade work ($1M+) or replacement in due course.

Summary

41      Quantity Statistics – as at 18/19 financial year:

·    Council has 92 bridges that are currently posted

·    of these 92 posted structures; 90 of them fall within the 193 programme (RUL of less than 20)

·    Under the matrix, of the 193 bridges, 152 would be replaced (with a number of these proposed to be divested)

42      Dollar Statistics – as at 18/19 financial year:

·    The 193 structures have a replacement cost of $39.7M

·    Under the matrix, 41 structures to be removed have a replacement cost of $9.4M and will cost $0.8M to remove – a saving of $8.6M.

·    Matrix replacement budget (NZTA +SDC share): $30.1M

·    12 year programme annual expenditure required: $2.5M + maintenance.

 

 

Recommendation

That the Services and Assets Committee:

a)            Receives the report titled “Bridge Strategy Update Report” dated 3 July 2019.

 

Attachments

a             18/19-20/21 Bridge programme - year 1 status    

 


Services and Assets Committee

10 July 2019