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

 

Date:

Time:

Meeting Room:

Venue:

 

Wednesday, 6 May 2020

9am

Council Chamber
15 Forth Street
Invercargill

 

Services and Assets Committee Agenda

OPEN

 

 

MEMBERSHIP

 

Chairperson

Ebel Kremer

 

 

Mayor Gary Tong

 

Councillors

Don Byars

 

 

John Douglas

 

 

Paul Duffy

 

 

Bruce Ford

 

 

Darren Frazer

 

 

George Harpur

 

 

Julie Keast

 

 

Christine Menzies

 

 

Karyn Owen

 

 

Margie Ruddenklau

 

 

Rob Scott

 

 

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

 

TYPE OF COMMITTEE

Council standing committee

RESPONSIBLE TO

Council

SUBCOMMITTEES

None

LEGISLATIVE BASIS

Committee constituted by Council as per schedule 7, clause 30 (1)(a), LGA 2002.

Committee delegated powers by Council as per schedule 7, clause 32, LGA 2002.

MEMBERSHIP

The Services and Assets Committee is a committee of the whole Council.  The mayor and all the councillors will be members of the Services and Assets Committee. 

FREQUENCY OF MEETINGS

Six weekly or as required

QUORUM

A minimum of two members physically present with at least five other members attending by way of being physically present, by audio link or by audio visual link.

SCOPE OF ACTIVITIES

The Services and Assets Committee is responsible for ensuring that Council delivers its infrastructural asset based services in an effective and efficient manner that meets the needs of its communities and protects the investment that Council has in these assets.

The 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

•      Te Anau airport

•      Stewart Island Electrical Supply Authority

•      Stewart Island Jetties and Riverton Harbour

•      water supply schemes.

The committee is also responsible for making decisions on urgent matters relating to all Council services during the period of the COVID - 19 pandemic event.

DELEGATIONS

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

Power to Act

 

The committee has the delegated authority to:

a)     assess and provide advice to Council on the strategic issues relating to the delivery of infrastructural asset services

b)    reviewing and recommending to Council strategies on how it should go about managing the delivery of the infrastructural asset services that it provides

c)     monitor the condition and performance capability of the infrastructural assets owned by Council so as to ensure that it protects its investment in these assets in accordance with accepted professional standards

d)     monitor the delivery of capital works projects and the implementation of the capital works programme

e)     monitor the delivery of operations and maintenance contracts

f)     approve and/or assign all contracts for work, services or supplies 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 $2 million a prior review and recommendation of the business case by the Finance and Assurance Committee is required.  The business case shall include as a minimum; risk assessment, a procurement plan and financial costings.  If there is a different recommendation from the Finance and Assurance Committee the matter will be referred to Council for a decision

g)     monitor the return on all Council’s investments including forestry

h)     monitor and track Council contracts and compliance with contractual specifications.

i)      approve and/or assign all contracts for work, services or supplies for unbudgeted expenditure up to $10 million and noting this excludes the power to borrow money, or purchase or dispose of assets, other than in accordance with the long-term plan.

 

Power to Recommend

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

FINANCIAL DELEGATIONS

Council authorises the following delegated authority of financial powers to Council committees in regard to matters within each committee’s jurisdiction.

Contract Acceptance:

            accept or decline any contract for the purchase of goods, services, capital works or other assets where the total value of the lump sum contract does not exceed the sum allocated in the Long Term Plan/Annual Plan and the contract relates to an activity that is within the scope of activities relating to the work of the Services and Assets committee

            accept or decline any contract for the disposal of goods, plant or other assets other than property or land.

Budget Reallocation

Committee is authorised to reallocate funds from one existing budget item to another.  Reallocation of this kind must not impact on current or future levels of service and must be:

            funded by way of savings on existing budget items

            within the jurisdiction of the committee

            consistent with the Revenue and Financing Policy.

LIMITS TO DELEGATIONS

Matters that must be processed by way of recommendation to Council include:

•      amendment to fees and charges relating to all activities

•      powers that cannot be delegated to committees as per the Local Government Act 2002 and sections 2.4 and 2.5 of this manual.

Delegated authority is within the financial limits in section 9 of this manual.

STAKEHOLDER RELATIONSHIPS

This committee shall maintain relationships including, but not limited to the following organisations:

             Community Boards

             Regional Land Transport Committee

             WasteNet

             FENZ (Fire and Emergency New Zealand)

The committee will also hear and receive updates to Council from these organisations, as required. 

CONTACT WITH MEDIA

The committee chairperson is the authorised spokesperson for the committee in all matters where the committee has authority or a particular interest.

Committee members do not have delegated authority to speak to the media and/or outside agencies on behalf of Council on matters outside of the board’s delegations.

The group manager services and assets will manage the formal communications between the committee and the people of the Southland District and for the committee in the exercise of its business. 

Correspondence with central government, other local government agencies or official agencies will only take place through Council staff and will be undertaken under the name of Southland District Council.

 


Services and Assets Committee

06 May 2020

 

TABLE OF CONTENTS

ITEM                                                                                                                                                                                  PAGE

Procedural

1             Apologies                                                                                                                                                                7

2             Leave of absence                                                                                                                                                7

3             Conflict of Interest                                                                                                                                             7

4             Public Forum                                                                                                                                                         7

5             Extraordinary/Urgent Items                                                                                                                        7

6             Confirmation of Minutes                                                                                                                               7

Reports

7.1         IFS Growth Forest Manager's Report of Forestry Activity for Period to 31 January 2020                                                                                                                                                                                    15

7.2         Services and Assets Programme Report                                                                                           23

7.3         Downer Water and Wastewater Maintenance Contract 10/01 - Monthly Report for January 2020                                                                                                                                                       35

7.4         Stewart Island Electrical Supply Authority - Retrospective unbudgeted expense approval for alternator replacement on Unit 5.                                                                            53

7.5         Unbudgeted Expenditure - Car Park, Wallacetown Cemetery                                              63

7.6         Unbudgeted Expenditure – Limehills Community Centre Kitchen and Supper Room Refurbishment                                                                                                                                                  67

7.7         19/13 - Fortrose Otara Road Seal Widening Tender - NPV and Project Options        71

7.8         Roading Operations - March 2020                                                                                                         77

7.9         Alternative Coastal Route - Haldane Estuary Otta sealed section                                     89

Public Excluded

Procedural motion to exclude the public                                                                                                         93

C8.1      Invercargill Office Relocation Procurement Strategy  


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, 24 March 2020


 

 

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 Tuesday, 24 March 2020 at 9am. (9am – 10.31am, 10.52am – 12.21pm) (Public Excluded 11.12am – 12.21pm))

 

present

 

Chairperson

Ebel Kremer

 

Mayor Gary Tong

Councillors

John Douglas

 

Paul Duffy (10.07am - 10.31am, 10.52am – 12.21pm)

 

Darren Frazer

 

George Harpur (via audio link 9.26am – 10.31am, 10.52am – 12.21pm)

 

Julie Keast (via audio link 9.40am – 10.31am, 10.52am – 12.21pm)

 

Christine Menzies

 

Karyn Owen

 

Margie Ruddenklau

 

Rob Scott

 

APOLOGIES

Councillor Ford

 

ABSENT:

Councillor Byars

 

IN ATTENDANCE

Group Manager, Services and Assets - Matt Russell

Chief Executive – Steve Ruru

Committee Advisor - Fiona Dunlop

Publications Specialist – Chris Chilton

 

 


1             Apologies

 

There were apologies from Councillor Ford.

 

Moved Chairperson Kremer, seconded Cr Scott and resolved:

That the Council 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

 

Philip Todd – Manager of the Invercargill Top 10 Holiday Park was unable to attend the meeting but provided a written note to the meeting regarding his concerns with freedom campers and the covid-19 virus issue that New Zealand is facing.

 

 

5             Extraordinary/Urgent Items

 

There were no Extraordinary/Urgent items.

 

 

6             Confirmation of Minutes

 

Resolution

Moved Cr Owen, seconded Cr Frazer and resolved:

That the Services and Assets Committee confirms the minutes of the meeting held on 11 February 2020 as a true and correct record of that meeting.

 

Reports

 

 

7.1

Services and Assets Programme Report

Record No: R/20/3/5424

 

Project Delivery Manager – Nick Hamlin was in attendance for this item.

 

 

 

Resolution

Moved Chairperson Kremer, seconded Cr Frazer and resolved:

That the Services and Assets Committee:

a)            Receives the report titled “Services and Assets Programme Report” dated 13 March 2020.

 

 

7.2

17A Community Facilities tender process update

Record No: R/20/3/5507

 

Contracts and Projects Administrator – Trudy Saunders and Community Facilities Manager – Mark Day were in attendance for this item.

 

The officers advised that the purpose of the report was to update the Committee on the work completed to date and next steps on the progress for the Community Facilities Service Delivery Review.

 

The Committee noted that the Community Facilities 17A Review outcomes were identified and endorsed by Council in February 2017.  There have been multiple discussions with elected members and Council regarding the appropriate process for achieving the recommended outcomes.

 

(During discussion on the report, Councillor Keast joined the meeting via audio link at 9.26am and also Councillor Harpur at 9.40am.)

 

(Councillor Duffy joined the meeting at 10.07am.)

 

 

Resolution

Moved Cr Douglas, seconded Cr Ruddenklau recommendations a to d, e with changes (as indicated), f and g and a new h (as indicated) and resolved:

That the Services and Assets Committee:

a)            Receives the report titled “17A Community Facilities tender process update” dated 16 March 2020.

 

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)           Agrees with the proposal for an enhanced status quo procurement approach to enable Community Board consultation and direct negotiations with existing contractors.

 

e)            Endorses the procurement plan for Community Facilities Service Delivery as follows:

 

1.         Cleaning contracts – Office / hall cleaning and Fiordland cleaning to go to tender in April 2020.

2.         Toilet cleaning contracts – spilt into two separable portions via direct negotiation.

3.         Mowing contracts – after consultation with Community Boards to confirm service levels and scope, either by direct negotiation with existing contractors or by considering further options.

4.         Gardening contracts – after consultation with Community Boards to confirm service levels and scope, either by direct negotiation with existing contractors or by considering further options.

 

e)            Endorses the procurement plan for Community Facilities Service Delivery as follows:

 

1.         Cleaning contracts – Office / hall cleaning and Fiordland cleaning to go to tender in April 2020.

2.         Toilet cleaning contracts – spilt into two separable portions via direct negotiation.

3.         Mowing contracts – split into 6 separable portions with some direct negotiation with existing contractors and some being publically tendered.

4.         Gardening contracts – after consultation with Community Boards to confirm service levels and scope either directly negotiate with existing contractors or consider further options after the consultation. 

 

f)             Approves under Section 7.3 of the Procurement Policy (2010) Alternative Procurement method of direct negotiation with selected existing contractors in principle.

 

g)           Understands that there may be changes made to the procurement plan between direct negotiation and open tender for certain separable portions based on market service availability, and as such, the identified proposal may not necessarily reflect the final procurement packages.

 

New h    Agree that the Committee recognises the implications of the covid 19 virus emergency and the potential for service provision to be jeopardised and as such acknowledges interim service provision solutions may be required and delegates authority to the Chief Executive to make these decisions through this period.

 

(The meeting adjourned for morning tea at 10.31am and reconvened at 10.52am.)

 

(Mayor Tong, Councillors Douglas, Duffy, Frazer, Harpur (via audio link), Keast (via audio link), Menzies, Owen, Ruddenklau and Scott were present when the meeting reconvened.)

 


 

 

7.3

Alternative Procurement of Stewart Island Wind Power Predevelopment Consultant

Record No: R/20/3/5494

 

Group Manager Services and Assets – Matt Russell was in attendance for this item.

 

Mr Russell advised that the purpose of the report was to outline the background and issues around engaging a consultant to undertake the predevelopment phase of the Stewart Island wind power project and determine the most suitable approach within the Council’s current procurement policy.

 

The Committee noted that the Council has entered in to a funding agreement with the Ministry of Business, Innovation and Employment for the development of wind power generation on Stewart Island.

 

 

Resolution

Moved Mayor Tong, seconded Chairperson Kremer and resolved:

That the Services and Assets Committee:

a)            Receives the report titled “Alternative Procurement of Stewart Island Wind Power Predevelopment Consultant” dated 13 March 2020.

 

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 alternative procurement method to directly negotiate with a consultant, Roaring 40s Wind Power, for the predevelopment phase of the Stewart Island wind power project to be funded from the Ministry of Business, Innovation and Employment Provincial Growth Fund funding received for this project.

 

 

7.4

Roading Operations - January and February 2020

Record No: R/20/3/5576

 

Strategic Manager Transport – Hartley Hare was present for this item.

 

Mr Hare advised that the purpose of the report was to update the committee on the progress of the major roading maintenance contracts and provide some context to the 2019/20 budget.

 

 

Resolution

Moved Chairperson Kremer, seconded Cr Menzies and resolved:

That the Services and Assets Committee:

a)            Receives the report titled “Roading Operations - January and February 2020” dated 13 March 2020.

 

 

Public Excluded

 

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

Resolution

Moved Chairperson Kremer, seconded Cr Douglas and resolved:

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

C8.1 Lake Monowai Road Canal Bridge Tender Award

C8.2 Alternative Procurement for Supplier of Services to Stewart Island Electricity Supply Authority (SIESA)

C8.3 Structural Engineering Services Contract for Transport

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

 

Lake Monowai Road Canal Bridge Tender Award

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.

 

Alternative Procurement for Supplier of Services to Stewart Island Electricity Supply Authority (SIESA)

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.

 

Structural Engineering Services Contract for Transport

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.

 

 

That the Chief Executive, Group Manager, Services and Assets, Publications Specialist 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 Lake Monowai Road Canal Bridge Tender Award, C8.2 Alternative Procurement for Supplier of Services to Stewart Island Electricity Supply Authority (SIESA) and C8.3 Structural Engineering Services Contract for Transport. 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.

 

That Strategic Manager Transport – Hartley Hare be permitted to remain at this meeting, after the public has been excluded, because of their knowledge of the items C8.1 Lake Monowai Road Canal Bridge Tender Award and C8.3 Structural Engineering Services Contract for Transport. 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.

 

 

The public were excluded at 11.12am.

 

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 12.21pm.                   CONFIRMED AS A TRUE AND CORRECT RECORD AT A MEETING OF THE Services and Assets Committee HELD ON TUESDAY 24 MARCH 2020.

 

 

 

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

 

 

 

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

 


Services and Assets Committee

6 May 2020

 

IFS Growth Forest Manager's Report of Forestry Activity for Period to 31 January 2020

Record No:             R/20/3/5582

Author:                      Ashby Brown, Commercial Infrastructure Manager

Approved by:         Matt Russell, Group Manager Services and Assets

 

  Decision                                        Recommendation                                  Information

 

 

 

Report Summary

1       The IFS Growth Forest Manager’s Report advises of forestry activity for the period to 31 January 2020.

Southland District Council Forestry Activity

2        The IFS Growth Forest Manager’s report received is attached.

 

 

Recommendation

That the Services and Assets Committee:

a)            Receives the report titled “IFS Growth Forest Manager's Report of Forestry Activity for Period to 31 January 2020” dated 17 March 2020.

 

 

Attachments

a             Memorandum to Services and Assets Committee - February 2020

b             Southland District Council Waikaia 5 1 Block 3 Reconcile 19 Final    

 


Confidential Services and Assets Committee

06 May 2020

 

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Confidential Services and Assets Committee

06 May 2020

 

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Services and Assets Committee

6 May 2020

 

Services and Assets Programme Report

Record No:             R/20/4/9697

Author:                      Trudy Saunders, Contracts and Projects Adminstrator

Approved by:         Matt Russell, Group Manager Services and Assets

 

  Decision                                        Recommendation                                  Information

 

 

 

Summary

1        CAMMS Project tracks all Services and Assets projects. This report seeks to update the status of these projects to this Committee.

2        Please see attached report for your information.

 

Recommendation

That the Services and Assets Committee:

a)            Receives the report titled “Services and Assets Programme Report” dated 22 April 2020.

 

Attachments

a             Services and Assets Programme Report as at 16 April 2020    

 


Confidential Services and Assets Committee

06 May 2020

 

Services and Assets Programme Report

Date: 21/04/2020

Author: Trudy Saunders, Nick Hamlin


Projects Count and Expenditure Totals for 2019 – 2020 – open projects

Total Project Count:    108

Total Project Expenditure:  $28,291,528.47 – budgets have increased by nearly $2 million since the last report due to Roading Project budgets now included in CAMMS.

Total Budgets for Projects by Financial Year

Executive Summary

1.   Covid 19 Overview and status

All projects were suspended during level 4 lock down

High priority projects (ready to go at level 3) have been identified as

·    Road Rehabs

·    Bridge replacement packages

·    Te Anau pump line

·    Otautau water main

·    Tower block roof replacement

·    Stewart Island infrastructure works

2.   Below is a summary of the overall asset programme of works

Currently $28m of works is underway in the 19/20 works programme

                 $0.0m is in Initiation phase

$4.4m in business case phase

$4.4m is in pre delivery phase (design / tender and consents)

$19.4m is in construction delivery         

3.   Total current project counts is as follows

·    Community Facilities 31

·    Waste and water 48

·    Roading 26

·    Commercial Infrastructure 3

4.   Completed projects in the last month include

a.   No projects were recorded as completed due to lock down

5.   Key Projects due to start in construction over next 2 months

a.   Te Anau Waste water processing plant

b.   Te Anau watermain replacements

c.   Athol railway project

d.   Regional footpath replacements

e.   Waste water pond fencing

2019-20 by Activity and Phase

Major Projects

Water and Waste

Roading

Activity by Status

Community Facilities

2019-20

With the impact of COVID19 there are a number of projects that may not be completed by the end of the financial year.

These include the replacement toilet at the Wyndham camping ground, the flying fox at Tuatapere, the kitchen upgrade at the Limehills community centre, installation of CCTV in the Te Anau CBD, the Monkey Island camping area upgrade and the upgrade of the Clifden hall.

Some of these projects require unbudgeted expenditure reports to be approved by Community Boards and Council. The reports were ready for the meetings, however the meetings were subsequently cancelled.

The Fiordland Community Board has requested that the CCTV project be put on hold so they can redirect the budget elsewhere if necessary. A lot will depend on the availability of contractors to undertake the works associated with the projects based on their priorities.

Water and Waste

2019-20

 

 

The Te Anau Waste Water project is continuing to be re-designed from CPI to SDI.   The Te Anau Membrane filtration tender is currently going through a value engineering process with the preferred tenderer.  A report updating programme and cost will be presented to Finance and Assurance Committee on 30 April and Council on 2 May 2020.

The Te Anau Watermain contract has now been awarded to Te Anau Earthworks and construction will begin in early April.

Otautau watermain renewals is progressing well.

At the time of writing all Water and Waste projects are on hold due to ongoing Level 4 lockdown.

 

Roading

2019-20

 

 

The bridges design and build replacement programme contracts have been awarded and initial pre-start meetings have been held.  The Bridge replacement programmes (with culverts) contracts have been awarded – Northern package to SouthRoads and Southern package to Downers. The Roading Company and Wilsons Contractors have each been awarded a bridge to culvert replacement package of works.

There has been good progress for the pavement rehab programme with all sites sealed. The 2019-20 reseal programme was 95% completed at the start of lockdown. No more works will be undertaken this reseal season.

Lake Monowai Road canal bridge replacement is due to be awarded post lockdown.

Otapiri Gorge Road Rehabilitation is sealed with only minor works tidy up works still to be completed.

Some projects have been delayed due to contractors prioritising flood damage works.  It is anticipated that this will not affect the completion dates.

Commercial Infrastructure

2019-20

 

Pending handover report due from Powernet this financial year, including assessment of components will inform future maintenance strategy and capital works programme to be developed through the LTP 2031 process.  

Te Anau Manapouri Airport capital works projects, generally associated with maintaining Part 139 certification are to be cancelled or deferred. Most projects, such as security fencing, were conceived on a risk or future demand basis and not strictly critical to maintaining certification status. The helipad project currently off-track is likely to be deferred also in the interim due to Covid-19 and a desire to minimise expenditure wherever possible.

Projects by Location 2019-20

Projects by Activity Group – 2019-20

 

 

Projects by Activity Name and Expenditure – 2019-20

 


Services and Assets Committee

6 May 2020

 

Downer Water and Wastewater Maintenance Contract 10/01 - Monthly Report for January 2020

Record No:             R/20/3/5359

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 92% for January 2020 equalling 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 January.

Operations and Maintenance

6        Service request calls for January 2020 were 180 including 127 water, 25 rural water, 6 sewer, 5 stormwater and 2 general calls.  Storm water calls were elevated due to inclement weather.

Financial

7        There are no outstanding variations. 

Customer Service

8        There were 156 service requests received with all but 1 inspected within the required response time.

Health and Safety

9        There was one incident reported in January:

·          A staff member was assaulted by a member of the public.

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 January 2020” dated 17 March 2020.

Attachments

a             Downer Monthly Summary Report - January 2020

b             Downer Utilities Monthly Report January 2020    

 


Confidential Services and Assets Committee

06 May 2020

 

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Confidential Services and Assets Committee

06 May 2020

 

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Services and Assets Committee

6 May 2020

 

Stewart Island Electrical Supply Authority - Retrospective unbudgeted expense approval for alternator replacement on Unit 5.

Record No:             R/20/4/9483

Author:                      Brendan Gray, Projects Manager

Approved by:         Matt Russell, Group Manager Services and Assets

 

  Decision                                       Recommendation                                  Information

 

 

 

Purpose

1        A failure of the alternator component of Stewart Island Electrical Supply Authority (SIESA) unit 5 occurred in February 2020. After analysis of options a decision needed to be made on the repair or replacement of the alternator unit and a subsequent assessment was commissioned. This report advises of the outcome of the assessment and the subsequent decision that was made for the alternator replacement.

Executive Summary

2        In February 2020 the alternator component of unit number 5 (the Scania outdoor containerised unit) suffered a catastrophic failure. After assessment by a qualified electrical winding specialist it has been determined that the failure was caused by direct shorting and most likely due to moisture.

3        The alternator unit is unrepairable therefore pricing for a new alternator commenced and was undertaken by Powernet on Southland District Council behalf. Pricing for supply of an alternator was received by two companies. Prices ranged from $23,850 to $27,700 (excluding freight to Stewart Island).

4        After an outstanding warranty issue was resolved (with South Pacific Diesel Systems Ltd) their price was revised to $23,700 + GST (incl freight to Bluff).

 

Recommendation

That the Services and Assets Committee:

a)            Receives the report titled “Stewart Island Electrical Supply Authority - Retrospective unbudgeted expense approval for alternator replacement on Unit 5.” dated 1 May 2020.

 

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 retrospective unbudgeted expenditure of up to $28,000 for the alternator replacement on Unit No. 5 and that this be funded from Stewart Island Electrical Supply Authority reserves.

 

Background

5        Unit number 5 was commissioned in 2016/2017 and is a containerised Scania engine and alternator that sits outside in a covered lean to shed. This is a primarily a backup unit for use when the other generator units are being serviced or when peak load demands use of the unit. It was always intended for this unit to be housed outside and under cover. The alternator unit had a basic form of wiring heating/protection and at the time this was considered to be sufficient.

Issues

6        The failure of unit number 5 alternator has occurred due to moisture build up within the electrical windings which caused a direct short and the failure of the unit. This is partially due to the environment on Stewart Island and the infrequent use of the generator/alternator. The basic alternator heating was insufficient to protect the wiring from moisture and the failure has occurred.

Factors to Consider

Legal and Statutory Requirements

7        There are no legal and statutory requirements.

Community Views

8        This issue has been discussed and communicated with the Stewart Island/Rakiura Community Board and the outcome has been advised to the Board chair. .

Costs and Funding

9        Prices were sought from suitable suppliers of alternators units. SIESA reserves are being used to fund the replacement alternator. The retrospective approval of up to $28,000 of unbudgeted expenditure gives some leeway over and above the alternator purchase price for freight to Stewart Island and any miscellaneous fittings that may be required to undertake the changeover of units.

Policy Implications

10      There are no policy implications.

Analysis

Options Considered

11      There was only one option that was available after the analysis of the original alternator was completed. To do nothing was not an option.

12      The new Mecce Alte unit ordered has the maximum factory fitted moisture protection available (Total +) and will ensure a failure of this kind does not occur again.

13      Specification of winding protection table below.


 

Analysis of Options

Option 1 – Replace the alternator with a new unit and include Total 1 moisture protection component.

Advantages

Disadvantages

·        Continued backup for electrical supply on Stewart Island

·        Alternator component is new and includes maximum factory fitted moisture protection

·        No level of service interruptions for consumers

·        Unbudgeted expenditure approval has to be retrospective

·        Unplanned

 

Assessment of Significance

14      The decision to replace the alternator and request for retrospective approval for unbudgeted expenditure was significant and needed to be made in order to ensure the delivery of the new component was secured and there would be no level of service issues for Stewart Island electricity consumers.

Recommended Option

15      The only option available was to replace the unit and seek retrospective unbudgeted expense approval from the Services and Assets Committee under the revised COVID-19 delegated authority protocols.

Next Steps

16      Fit the new alternator.

 

Attachments

a             Alternator pricing by Powernet

b             Revised pricing from South Pacific Diesel Systems Ltd and Mecce Alte warranty    

 


Confidential Services and Assets Committee

06 May 2020

 

27 March 2020

Ashby Brown

a)         Southland District Council

b)         15 Forth Street

c)         Invercargill 9840

Dear Ashby

SIESA Unit 5 Alternator

Unit 5 alternator suffered catastrophic failure on XX February 2020. The component has been inspected by motor winding specialists, Wallace Murray Electrical, who advise that root cause was direct shorting in the winding due to insulation failure likely caused by moisture build-up.

 

PowerNet has sought pricing from two suppliers who have submitted a total of three prices for suitable alternator replacement. Pricing detail is summarised below. Note this excludes any mark-up from PowerNet.

 

 

The pricing for the Mecc Alte units above includes pricing for the application of a proprietary winding protection scheme known as “Total+”. The pricing for the Stamford unit includes standard ‘marinisation’. Delivery cost to Bluff is not included in the above pricing but expected to be approximately $500 excl gst.

 

While Generator Rental Services have submitted the most competitive price for a Mecc Alte unit, PowerNet recommend the replacement is purchased from South Pacific Diesel. South Pacific Diesel supplied Unit 4 and Unit 5 generator replacements in recent years. Additionally, awarding the alternator supply to them may provide SDC the opportunity to recoup costs from a repair completed on Unit 5 whilst still under warranty up to a value of $4,950.

 

Please don’t hesitate to contact me for any further detail.

Yours faithfully

Nicholas Hill

Technical Manager

E: nhill@powernet.co.nz

P: 2118525

 

Encl:

 

CC:

 

 


Confidential Services and Assets Committee

06 May 2020

 

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Services and Assets Committee

6 May 2020

 

Unbudgeted Expenditure - Car Park, Wallacetown Cemetery

Record No:             R/20/3/6191

Author:                      Mark Day, Community Facilities Manager

Approved by:         Matt Russell, Group Manager Services and Assets

 

  Decision                                       Recommendation                                 Information

 

 

 

Purpose

1        The purpose of this report is to approve unbudgeted expenditure in the amount of up to $20,000 (excl GST) in order to install a gravelled car park at the Wallacetown Cemetery and associated landscaping in the form of a low hedge and lawn.

Executive Summary

2        The former Wallacetown Community Board had identified the need to provide additional car parking space to cater for off street parking for visitors to the cemetery.

3        At the final meeting of the Wallacetown Community Board on 22 August 2019 they resolved in principle the use of reserve funds to undertake a number of pieces of work within the town.

4        At the Oreti Community Board meeting held on 24 February 2020 the report “Recommendations from the former Wallacetown Community Board final meeting” was reported to provide the history of works that they wanted to be completed.

5        The current amount of space available along the road frontage is not sufficient to cater for parking requirements during burials.

6        The old hedge was removed to enable the car park to be developed at the north end of the cemetery.

7        It is proposed that this unbudgeted expenditure request, if approved, be made from the Wallacetown General Reserve. The current balance as at 30 June 2019 is $194,523.

8        This report was to be approved by the Oreti Community Board at their meeting on the 6 April 2020 and then to Council on 22 April 2020, however due to the lock down this did not happen. To keep this project on track it is now being presented to the Services and Assets committee.

9        The Oreti Community Board chairperson has been approached and asked to canvas the community board members to make sure they approve of the process to have the unbudgeted expenditure report approved.

10      The chairperson responded in an email dated 29/04/2020 that the Oreti Community Board approved the report going to the Services and Assets committee for approval.

 

Recommendation

That the Services and Assets Committee:

a)            Receives the report titled “Unbudgeted Expenditure - Car Park, Wallacetown Cemetery” dated 1 May 2020.

 

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 up to $20,000 from the Wallacetown General Reserve to install a car park and associated landscaping.

 

Background

11      The old hedge at the northern end of the cemetery was removed to make way for a car park.

12      The current off street car parking is not sufficient to cater for the number of vehicles that attend burials at the cemetery.

13      At these times the vehicles create a hazard to other road users as they spill out onto the road.

14      The remaining debris from the hedge will be removed prior to the area being levelled and gravelled to form the car park.

15      An entrance point will be formed to provide access off the road, Ailsa Street.

16      A low row of shrubs will be planted to visually enhance the site and provide a barrier between the car park and the cemetery.

Issues

17      Unbudgeted expenditure which this report is seeking to resolve.

Factors to Consider

Costs and Funding

18      The Wallacetown General Reserve currently has a budget of $194,523.  It is anticipated that the physical works will cost approximately $15,000 - $17,000 to complete. A healthy contingency sum is considered appropriate as the site is a Hazardous Activities and Industries List (HAIL) site and will require appropriate excavation management and disposal as a result.

Analysis

Options Considered

19      Either to approve or not approve the unbudgeted expenditure.

Analysis of Options

Option 1 – Approves the unbudgeted expenditure of up to $20,000 from the Wallacetown General Reserve to install a car park and associated landscaping

Advantages

Disadvantages

·        The new car park will provide sufficient parking to cater for off street parking during burials at the cemetery.

None identified.

 

Option 2 – Do not approve the unbudgeted expenditure

Advantages

Disadvantages

·        None identified.

·        There will be on going issues with parking congestion at the site.

 

Assessment of Significance

20      This request and required works are to ensure that the parking at the Wallacetown Cemetery will meet the needs of the public during burials at the cemetery.

Recommended Option

21      Option 1 – Approves the unbudgeted expenditure of up to $20,000 from the Wallacetown General Reserve to install a car park and associated landscaping.

Next Steps

22      Arrange for the car park work to be constructed.

 

Attachments

There are no attachments for this report.  

 


Services and Assets Committee

6 May 2020

 

Unbudgeted Expenditure – Limehills Community Centre Kitchen and Supper Room Refurbishment

Record No:             R/19/12/31214

Author:                      Mark Day, Community Facilities Manager

Approved by:         Matt Russell, Group Manager Services and Assets

 

  Decision                                       Recommendation                                 Information

 

 

 

Purpose

1        The purpose of this report is to request unbudgeted expenditure of $24,000 to refurbish the Limehills Community Centre kitchen and supper room.

Executive Summary

2        There is a project in this year’s annual plan to upgrade the kitchen at the Limehills hall with a budget of $10,220.

3        During an inspection of the hall with the hall committee chairperson, members of the Oreti Community Board and Councillors, they agreed with the staff assessment of the scope of work for the project.

4        This will include new kitchen joinery, rearrange the kitchen layout, replacement of the current electric oven, painting, new floor coverings and the installation of LED lights.

5        This report was to be approved by the Oreti Community Board at their meeting on the 6 April 2020 and then to Council on 22 April 2020, however due to the lock down this did not happen. To keep this project on track it is now being presented to the Services and Assets committee.

6        The Oreti Community Board chairperson has been approached and asked to canvas the community board members to make sure they approve of the process to have the unbudgeted expenditure report approved.

7        The chairperson responded in an email dated 29/04/2020 that the Oreti Community Board approved the report going to the Services and Assets committee for approval.

 

Recommendation

That the Services and Assets Committee:

a)            Receives the report titled “Unbudgeted Expenditure – Limehills Community Centre Kitchen and Supper Room Refurbishment” dated 30 April 2020.

 

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 and recommends to Council the unbudgeted expenditure of $7,378.22 to refurbish the kitchen and supper room at the Limehills Community Centre to be funded from the Limehills General Reserve and $6,380 from the Limehills Community Centre general maintenance budget on the condition that Council approves the unbudgeted expenditure of $10,241.78 from the Winton Wallacetown Ward Reserve.

 

Background

8        There is a project in this year’s annual plan to upgrade the kitchen at the Limehills hall with a budget of $10,220.

9        During an inspection of the hall with the hall committee chairperson, members of the Oreti Community Board and Councillors, agreement was reached in relation to the scope of work for the project.

10      This will include new kitchen joinery, kitchen layout and replacement of the current electric oven.

11      With the changes to the kitchen joinery, the floor and wall coverings will also need to be replaced.

12      Council staff also recommended that the adjoining supper room should be upgraded at the same time. This will entail replacing the carpet, repainting and installing LED lights.

13      The proposed scope of work exceeds the approved budget so additional funding is required to complete the whole project.

14      The Limehills General Reserve has a current balance of $7,378.22 and this will be used along with $10,241.78 from the Winton Wallacetown Ward Reserve and $6,380 to be funded from the Limehills Community Centre general maintenance budget..

Issues

15      The current kitchen and electric oven is out-dated and there are issues with the amount of available bench space and functionality of the existing kitchen layout.

16      The current sink is a single domestic size sink that is too small to wash large catering pots.

Factors to Consider

Legal and Statutory Requirements

17      There are no legal and statutory requirements.

Community Views

18      The views of the Councillors and Community Board are taken as being indicative of the community.

Costs and Funding

19      There is a project in this year’s annual plan to upgrade the kitchen at the Limehills hall with a budget of $10,220.

20      This is not enough to cover the scope of the work that has been agreed to and an additional $24,000 is required.

21      This will be funded from:

·    general maintenance of $6,380 to be funded from the Limehills Community Centre budget.

·    unbudgeted expenditure of $7,378.22 to be funded from the Limehills General Reserve

·    unbudgeted expenditure of $10,241.78 to be funded from the Winton Wallacetown Ward General Reserve.

22      The Limehills General Reserve currently has a balance of $7,378.22.

23      The Winton Wallacetown Ward Reserve currently has a balance of $425,086.01.

Policy Implications

24      There are no policy implications.

Analysis

Options Considered

25      The options considered are to fund the unbudgeted expenditure in line with the scope, or not.


 

Analysis of Options

Option 1 – Approve and recommends to Council the unbudgeted expenditure of $7,378.22 to refurbish the kitchen and supper room at the Limehills Community Centre to be funded from the Limehills General Reserve and $6,380 from the Limehills Community Centre general maintenance budget on the condition that Council approves the unbudgeted expenditure of $10,241.78 from the Winton Wallacetown Ward Reserve

Advantages

Disadvantages

·        Overdue refurbishment and maintenance undertaken and the kitchen / supper room will receive the remedial work required to extend its life

·        In line with staff and local elected member request

·        none identified

 

Option 2 – Not approve the unbudgeted expenditure

Advantages

Disadvantages

·        none identified.

·        the kitchen and supper room will continue to deteriorate

·        if left it will cost more in the future.

 

Assessment of Significance

26      The request does not trigger any of the significance criteria.

Recommended Option

27      Option 1 - Approve and recommends to Council the unbudgeted expenditure of $7,378.22 to refurbish the kitchen and supper room at the Limehills Community Centre to be funded from the Limehills General Reserve and $6,380 from the Limehills Community Centre general maintenance budget. This is on condition that Council approves the unbudgeted expenditure of $10,241.78 from the Winton Wallacetown Ward Reserve.

Next Steps

28      Engage the contractor and undertake the agreed scope of work.

Attachments

There are no attachments for this report.  

 


Services and Assets Committee

6 May 2020

 

19/13 - Fortrose Otara Road Seal Widening Tender - NPV and Project Options

Record No:             R/20/3/5397

Author:                      Rob Hayes, Roading Engineer

Approved by:         Matt Russell, Group Manager Services and Assets

 

  Decision                                       Recommendation                                  Information

 

 

Purpose

1        This report provides the additional information requested by Council and seeks to obtain approval from Council on the next steps for the proposed Fortrose Otara seal widening project following the outcome from the tender evaluation process.

Executive Summary

2        Following the outcome of the tender process and prices received the strategic transport team have under taken further assessment of options and can confirm that a full seal widen project has calculated a negative Net Present Value (NPV) of -$628,000.00.

3        Projects need to generate a positive NPV or Benefit Cost and meet a medium or high strategic alignment in order to be supported by NZTA through the current funding model.

4        The strategic transport team has considered three options.

·    option one: proceed with minimal maintenance

·    option two: proceed with a reduced project scope

·    option three: proceed with unbudgeted expenditure to cover the funding gap.

 

 

Recommendation

That the Services and Assets Committee:

a)            Receives the report titled “19/13 - Fortrose Otara Road Seal Widening Tender - NPV and Project Options” dated 30 April 2020.

 

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)           Approve option two and proceed with a reduced widening scope, and target 6.2m with any remaining funds focused on safety priorities including accessways, intersections and additional corner widening.

 

Background

5        The Long Term Plan identified $300K per year for seal widening. The 11km section of Fortrose Otara Road has narrow seal widths, less than six metres and was proposed to be widened to the ideal width of seven metres for this level of road hierarchy (secondary collector).

6        A total budget of $900K was allocated of which approximately $850K remains after the design and tender process to date.

7        The tender was put out to open market with all three tenders submitted ranging between $1.6 million and $1.8 million in price. Given the significant gap between the tender pricing and the approved budget, it is necessary to pause and reflect on how best to move forward. The Transport have previously presented to Council the following options:

·     option one: proceed with a reduced scope

·     option two: proceed with unbudgeted expenditure

·     option three: cancel the tender process and reprioritise the funding elsewhere.

8        The strategic transport team previously recommended option three.

9        Since the inception of this project and the subsequent approval by Council we have had increasing concerns with the networks bridging stock. This contributed to the previous recommendation to put the project on hold and reprioritise the funding to the bridge replacement programme.

10      Council tasked strategic transport staff to carry out further assessment of options including further analysis of cost and benefits along with further funding review with NZTA prior to making a decision on this matter.

11      This report represents the transport staff reporting back on the process that would be needed to be followed for seeking funds from NZTA, costs and risks associated with the project and the relative priority that projects would carry against other road projects across the District.

Issues and Discussion

12      Strategic transport staff have carried out the Net Present Value (NPV) calculations that NZTA require for justification of improvements including pavement rehabilitations. The NPV calculations analysed three options and forecasts costs over the remaining pavement life that we have estimated to be upto 30 years. The costs include upgrades, annual maintenance, periodic maintenance and includes two reseals at year 1 and year 15 for each option. 

13      The table below lays out the options with each NPV calculations:

Options

Scope of work included in calculations

Net present value

Additional cost

Option one: Proceed with a maintenance scope. Edge break repair to reinstate road width to 5.8m at a cost of approximately $350K. Widening works would become part of a future pavement renewal and reprioritise the remaining funds.

Two full length edge break repairs at 5.8m, annual maintenance and two reseals firstly at year 1 and secondly at year 15.

$1,750,733.00

$192,105.00

Option two: Proceed with a reduced scope widening and target 6.2m. Any remaining funds focused on safety priorities including accessways, intersections and corners upto the full remaining budget of $850K.

One full length edge break repair to 6.2m, annual maintenance and two reseals first at year 1 and secondly at year 15.

$1,558,628.00

-

Option three:  Proceed with the full widening scope as designed with $700K of unbudgeted expenditure. This option would be without NZTA funding for cost above $1M ($600K).

One full length seal widening to 7m.  Annual maintenance and two reseals first at year 1 and secondly at year 15.

$2,186,998.00

$628,370.00

14      The full seal widening project produced a negative NVP of a -$628,000.00 against the reduced scope option, therefore additional funding would not be supported by NZTA through our current business case and funding model.

15      NZTA have also reiterated that to consider a project for funding a positive cost benefit needs to be achieved along with the project achieving a high or medium strategic alignment with Investment Assessment Framework for 2018-21 National Land Transport Programme.

16      The entire 11km section is overdue for reseal. Strategic Transport do not recommend pushing this any further and resealing should be carried out next construction season.

17      The latest high speed data has detected increased cracking in the surface which supports the need for this section of road to be resealed sooner rather than later. 

Factors to Consider

Legal and Statutory Requirements

18      The tender evaluation process has expired with all tenders significantly above the available budgets and further direction is required from Council. No unusual legal considerations are involved with these projects. To date the tender evaluation team have diligently followed the Council and New Zealand Transport Agency (NZTA) procurement procedures.

Community Views

19      Preliminary notification and conversations have been had with residents that live or farm within this section of road proposed for seal widening. Initial feedback was positive, no strong opinions for or against were expressed.

20      Feedback has been sought and received from the roading contract managers and the roading alliance contractors in identifying candidate sites.

Costs and Funding

21      Currently, the project is budgeted to be funded from NZTA’s low cost low risk category which is capped at $1 million per project.

22      To complete the full package of work an additional $0.7 million of unbudgeted funding will likely be required. In order to access the NZTA funding assistance rate for this work (51%), it would be necessary to complete a full business case for approval from NZTA.

23      As discussed previously, two criteria need to be met in order for the project to be considered for NZTA funding assistance.

24      It should be noted that even if both criteria could have be met, this would not necessarily guarantee funding as projects are still priorities based on available funding.

25      Alternatively, Council could opt to fund all of the additional $0.7 million of unbudgeted expenditure and forgo this process.

Policy Implications

26      This project has been tendered and evaluated under the lowest price conforming tender methodology. This process has not been completed due to the value of the tenders received and as a result no tender has been awarded.

27      Whilst ending a procurement processes without completing an engagement is generally to be avoided, there are no policy implications preventing us from doing so. All tender documentation issued by Council reserves this right.


 

Analysis

Options Considered

28      We have the three following options and recommendation for Council’s consideration:

Analysis of Options

Option 1 – Proceed with maintenance scope

Advantages

Disadvantages

·        work proceeds within current budget and reinstate to a 5.8 m seal

·        prevents the reseal being held off any longer

·        allows some funds to be reprioritised.

 

·        not achieve the full desired width and the pavement will still be susceptible to ongoing edge break issues at 5.8m

·        the work is not considered to be a current priority.

·        no safety improvement.

 

Option 2 – Carry out reduced scope and seal widening to 6.2m. Any remaining funds focused on safety improvements

Advantages

Disadvantages

·        work proceeds within current budget and achieve a 6.2m seal

·        reduces some future maintenance work such as edgebreak repair

·        work will achieve a consistent pavement width

·        work could be carried out in colder, early season conditions by using the asphalt clip on methodology. This allows the full site to be resealed by March 2021

·        option for edge lines to be painted to guide traffic

·        prevents the reseal being held off beyond next sealing season.

·        seal width remains at 6.2m untill the future rehabilitation compared to 7m ideal width for this level of road.

·        not all safety improvements will be achieved.

 


 

Option 3 – Proceed with the full scope as designed

Advantages

Disadvantages

·        achieves full ideal seal width for this classification of road

·        safety is improved throughout the site

·        reduce future maintenance cost associate with edgebreak.

·        Council will have to fully fund the additional $600K required for the project above $1M.

·        resealing would be delayed another year.

 

Assessment of Significance

29      Based on the Council’s Significance and Engagement Policy and given that any decision made is in line with the Long Term Plan, it is believed that the decision made based on this recommendation is not significant.

Recommended Option

30      Transport recommends option two. 

Next Steps

31      Formally notify the tenderers that the full project will not be proceeding.

32      Re-tender with the reduced scope of works in line with option 2.

 

Attachments

There are no attachments for this report. 

 


Services and Assets Committee

6 May 2020

 

Roading Operations - March 2020

Record No:             R/20/4/9378

Author:                      Rob Hayes, Roading Engineer

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 2019/20 budget.

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

Executive summary

3       While Council staff and our contractors nearly got back to business as usual after the flood event the New Zealand Government introduced the Covid - 19 control guidelines and the four level alert system. New Zealand quickly passed through the alert levels and into level 4 lockdown at midnight 25 March for an estimated four weeks.

4       This has severely limited the services Strategic Transport team and our contractors can provide. With as many staff as possible working for home and only essential activities been undertaken by contractors. We believe that Council contractors have been compliant with the intent of the guidelines and running a “Skelton crew” on the activities we have deemed as essential.

5       These include cyclic work that consists of up to two staff members who need to travel in separate vehicles, reactive grading and on call emergency staff only. Council and contractor managers have had a presence on the network with the feedback to date that the roading network is holding up well.

6       Flood repairs continued through March with a cost to date of just over $1M to the end of the month.

7       Maintenance spending across the three contracts was down in March to $887K (excluding Emergency Works). This was expected but is down approximately 25% on March last year. This is due to flood recovery activities then into the Covid – 19 lockdown for the last week of the month.

8       Customer satisfaction; 121 Requests for Service (RFS), across the three Alliance contracts were received in March 2020 compared to 122 in 2019, an increase of 1, less than 1%. This is very similar compared to the same time last year which is surprising considering February’s flooding event.

9       In relation to health and safety; 8 contractor safety audits were completed in March with one lost time injury and 2 near misses reported.


 

10      Activity performance:

·        metalling, 37,010m3 (68%) has been placed of a total 2019/20 budget of 54,264m3.

·        grading, 9,582km (72%) have been graded by the end of March of a total 2019/20 budget of 13,400 km for the year.

·        the general maintenance focus has been getting reseal sites ready, drainage and spraying works completed before winter.

·        our focus post lockdown will need to be developed over the coming weeks. At this stage we are not sure what the remaining few months of the financial year will look like. We are hoping that we don’t get any weather events or wide spread snow over the next month.

Pavement rehabilitation/resurfacing

11      The Roading Company have completed works on Edendale Wyndham Road and Brydone Glencoe Road.  They are 95% complete at Niagara Tokanui Road with only pavement marking to complete.  SouthRoads are also 95% complete at Otapiri Gorge Road with the entire site sealed and also with pavement marking to be completed.

12      The 2019/20 resurfacing had a slow start due to the unsettled weather but made considerable ground over February and early March. At the time of the lockdown Downer had completed 95% of the season’s reseals, and where on track to have the programme completed by the end of March.

13      As the sealing season is now completed the remaining sites will moved into the 2020/21 programme.

Bridges

14      The two bridge design/build packages are underway with SouthRoads the successful tenderer for the Northern package and Downer the successful tenderer for the Southern. Design and manufacture of components is underway with all site work currently on hold. 

15      The Lake Monowai Road Bridge over Pioneer Energy’s hydro canal has been tendered and the evaluation completed. We have chosen to delay the award untill the alert levels are sufficiently reduced to allow work to commence. This is also to protect Council from any potential variation claims.

16      Mararoa Road Bridge is 95% complete and open to resident’s traffic. It is still signed up as close to the public for the time being. See a selection of photos below.

 

 

Flood event

17      Strategic transport staff and our Alliance contractors have had a challenging February and March dealing with flooding with 64 roads closed or under restriction at its peak. Although there has been a huge effort to date there is still a number of roads that still need our attention. Below is a selection of photos from bank and abutment repairs at Piano Flat Road Bridge number six over the Gow Burn.

 

 

 

Recommendation

That the Services and Assets Committee:

a)            Receives the report titled “Roading Operations - March 2020” dated 30 April 2020.

 

Attachments

a             Waimea A3 Report - March 2020

b             Central A3 Report - March 2020

c             Foveaux A3 - March 2020    

 



Confidential Services and Assets Committee

06 May 2020

 

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Confidential Services and Assets Committee

06 May 2020

 

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Confidential Services and Assets Committee

06 May 2020

 

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Services and Assets Committee

6 May 2020

 

Alternative Coastal Route - Haldane Estuary Otta sealed section

Record No:             R/20/4/9461

Author:                      Rob Hayes, Roading Engineer

Approved by:         Matt Russell, Group Manager Services and Assets

 

  Decision                                       Recommendation                                  Information

 

 

 

Purpose

1        To request the committee to approve strategic transport to revert the Otara-Haldane Road, Haldane estuary Otta sealed section back to gravel.

Executive summary

2        Since the completion of the alternative costal route project the Otta sealed section has required a significant amount of pavement maintenance. Strategic transport’s evaluation suggests that it is uneconomical for Council to continue to maintain this section as an Otta seal.

 

Recommendation

That the Services and Assets Committee:

a)            Receives the report titled “Alternative Coastal Route - Haldane Estuary Otta sealed section” dated 30 April 2020.

 

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 recommended option one and revert the 1800m section back to gravel.

 

Background

3        The alternative coastal route project involved the sealing or Otta sealing of approximately 23 kilometres of road to enhance tourist potential, experience and safety on the last unsealed section of the alternative coastal route on the southern scenic route and the two main side trips off this section.

4          Southland District Council had a limited budget available for this project so with both the design and construction, had to achieve a balanced solution between initial costs and long term safety and future maintenance costs.  During the business case phase stage several risks were identified including the tidal flood prone section of approximately 1800 metres directly adjacent to the Haldane Estuary, and as a result was Otta sealed. The reason for the use of Otta seal in this location was to reduce the amount invested in this higher risk section, which may also need to be raised in the future to cope with rising sea levels.

5          Technically this section is still designated as a gravel road because the Otta seal is considered a dust suppressant treatment and therefore it is not currently a sealed road.  

Issues

6        Since the completion of the project strategic transport has undertaken ongoing maintenance due to wave action and flood damage. Through the alliance maintenance contract pavement repairs have been carried out by stabilising and chip sealing some of the failures in an effort to keep the surface similar to the Otta seal. Rock protection works have also been carried out in an effort to save the road surface, however, this has not been successful.

7        Strategic transport do not believe it’s economical for Council to continue to maintain this section as an Otta seal.

Factors to consider

Community views

8        We have not undertaken any communication with local residence, however, locals will be well aware of the situation and the work completed to date by the Foveaux Alliance.

9        From a network experience prospective, this section reverting back to a gravel surface, could be a perceived reduction of level of service.

10      If Council are of a mind to support the recommendation, prior to any works being undertaken communication with the local residents in particular would need to take place.

Costs and funding

11      To date we have invested approximately $30,000 on pavement repairs and $30,000 on rock protection work.

12      This season we had another 1800m2 of stabilisation repairs programmed at an estimated cost of $60,000. We have not proceeded and in recent months we have placed maintenance gravel over the damaged Otta seal areas due to the safety concerns.

13      If we continue to maintain to the current standard, costs indicate and investment of approximately $240,000.00 over the next four years. This is based on the majority of the section needing to be repaired in that time frame.

14      A gravel surface can be funded long term from existing Foveaux Alliance contract budgets.

Analysis

Options considered

15      Strategic transport have identified three main options for the committee’s consideration:

·    option one: revert back to a gravel surface

·    option two: continue with annual heavy duty maintenance

·    option three: raise or relocate the road

Analysis of options

Option 1 – revert back to a gravel surface

Advantages

Disadvantages

·        the surface can be quickly and relatively cheaply fixed

·        current maintenance costs could be significantly reduced

·        the section is no longer Otta sealed

·        the road will have normal gravel road pros and cons including dust during summer months

·        negative public perception associated with change in levels of service

Option 2 – continue with annual heavy duty maintenance

Advantages

Disadvantages

·        keeps the Otta/chips sealed surface through the section

·        maintains the current level of service

·        the section quickly becomes one huge stabilisation patch as the repairs start to link up (sealed road by default)

·        high ongoing maintenance costs, particularly in the shorter term

 

Option 3 – Raise or relocate the road

Advantages

Disadvantages

·        would be a long term solution

·        a significant investment would be required

·        we estimate that a $1M plus budget would be required to raise this section of road

 

Recommended option

16      Option one: revert back to a gravel surface

Next steps

17      Proceed to place and maintain a gravel running surface on top of the Otta seal.

 

Attachments

There are no attachments for this report. 

 


Services and Assets Committee

06 May 2020

 

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.

C8.1 Invercargill Office Relocation Procurement Strategy

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

Invercargill Office Relocation Procurement Strategy

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.