Agenda of Infrastructure Committee Meeting

	Authorising Body	Mayor/Council
	Status	Standing Committee
COUNCIL COMMITTEE	Title	Infrastructure Committee Terms of Reference
	Approval Date	7 May 2020
	Responsible Officer	Chief Executive

Purpose

The purpose of the Infrastructure Committee (the Committee) is to ensure cost effective, quality and sustainable infrastructure decisions are made to meet the current and future needs of Far North communities and that Councils infrastructure assets are effectively maintained and operated.

The Committee will review the effectiveness of the following aspects:

· Affordable core infrastructure to support healthy and sustainable living;

· Operational performance including monitoring and reporting on significant infrastructure projects

· Delivery of quality infrastructure and district facilities

· Financial spend and reprogramming of capital works

· Property and other assets

To perform his or her role effectively, each Committee member must develop and maintain

his or her skills and knowledge, including an understanding of the Committee’s responsibilities, Councils’ infrastructure assets such as roading, three waters and district facilities.

Membership

The Council will determine the membership of the Infrastructure Committee.

The Infrastructure Committee will comprise of at least six elected members (one of which will be the chairperson).

Mayor Carter

Felicity Foy – Chairperson

Ann Court – Deputy Chairperson

Dave Collard

Kelly Stratford

John Vujcich

Mate Radich

Rachel Smith

Mike Edmonds

Adele Gardner

Non-appointed councillors may attend meetings with speaking rights, but not voting rights.

Quorum

The quorum at a meeting of the Infrastructure Committee is 5 members.

Frequency of Meetings

The Infrastructure Committee shall meet every 6 weeks, but may be cancelled if there is no business.

Power to Delegate

The Infrastructure Committee may not delegate any of its responsibilities, duties or powers.

Committees Responsibilities

The Committees responsibilities are described below:

Quality infrastructure and Facilities

· Assess and provide advice to Council on strategic issues relating to the provision of Council’s infrastructural activities and district facilities

· Review, and recommend to Council, policy and strategies for the delivery of infrastructural asset services

· Monitor achievement of outcomes included in the Infrastructure Strategy and other infrastructure strategies e.g. District Transport Strategy

· Ensure that Council protects its investment in its infrastructural assets in accordance with accepted professional standards

· Monitor the risks, financial and operational performance of the Council's infrastructural activities and facilities

· Monitor major contract performance measures/key result areas (KRAs)

Significant Projects – spend, monitoring and reporting

· Monitor significant projects

· Approve budget overspend (above tolerance levels in the CE delegations) and any reprogramming of capex for a project or programme provided that:

o The overall budget is met from savings

o The overall budget for capex is not exceeded. Where this is not the case, the Committee must either:

§ Recommend to Council that additional funding is approved (outside the Annual Plan or Long Term Plan process), or

§ Recommend as part of the next round of Long Term Plan or Annual Plan process that the funding is considered for inclusion.

· Approve tenders and contracts provided they are:

o Up to $3 million,

o in accordance with the current year’s plan, whether that be Annual Plan or Long Term Plan, and

o deemed low by the Significance and Engagement Policy

Compliance

· Ensure that operational functions comply with legislative requirements and Council policy

· Ensure that consents associated with Council's infrastructure are being met and renewals are planned for

Service levels (non regulatory)

· Recommend service level changes and new initiatives to the Long Term and Annual Plan processes.

Relationships

· Monitoring Council’s relationship with the Northland Transportation Alliance

o Receive quarterly performance reports

· Monitoring Council’s relationship with the Far North Waters Alliance Partner

Property

· Recommend to Council the acquisition or disposal of assets.

· Approve new leases and lease renewals (of non-reserve land), in accordance with the current years’ plan, whether that be Annual Plan or Long Term Plan.

Receive updates on changes to national and regional policies that impact on Council provision of infrastructure and where appropriate make recommendation to Council.

Rules and Procedures

Council’s Standing Orders and Code of Conduct apply to all the committee’s meetings.

Annual reporting

The Chair of the Committee will submit a written report to the Chief Executive on an annual basis. The review will summarise the activities of the Committee and how it has contributed to the Council’s governance and strategic objectives. The Chief Executive will place the report on the next available agenda of the governing body.

INFRASTRUCTURE COMMITTEE - MEMBERS REGISTER OF INTERESTS

Name	Responsibility (i.e. Chairperson etc)	Declaration of Interests	Nature of Potential Interest	Member's Proposed Management Plan
Hon John Carter QSO	Board Member of the Local Government Protection Programme	Board Member of the Local Government Protection Program
Hon John Carter QSO	Carter Family Trust
Felicity Foy (Chair)	Flick Trustee Ltd	I am the director of this company that is the company trustee of Flick Family Trust that owns properties in Cable Bay, and Allen Bell Drive - Kaitaia.
	Elbury Holdings Limited	This company is directed by my parents Fiona and Kevin King.	This company owns several dairy and beef farms, and also dwellings on these farms. The Farms and dwellings are located in the Far North at Kaimaumau, Bird Road/Sandhills Rd, Wireless Road/ Puckey Road/Bell Road, the Awanui Straight and Allen Bell Drive.
	Foy Farms Partnership	Owner and partner in Foy Farms - a farm on Church Road, Kaingaroa
	Foy Farms Rentals	Owner and rental manager of Foy Farms Rentals for dwellings on Church Road, Kaingaroa and dwellings on Allen Bell Drive, Kaitaia, and property on North Road, Kaitaia, one title contains a cell phone tower.
	King Family Trust	This trust owns several titles/properties at Cable Bay, Seaview Rd/State Highway 10 and Ahipara - Panorama Lane.	These trusts own properties in the Far North.
	112 Commerce Street Holdings Ltd	Owner of commercial property in Commerce Street Kaitaia.
	Foy Property Management Ltd	Owner of company that manages properties owned by Foy Farms Rentals and Flick Family Trust.
	Previous employment at FNDC 2007-16	I consider the staff members at FNDC to be my friends
	Shareholder of Coastline Plumbing NZ Limited
Felicity Foy - Partner	Director of Coastline Plumbing NZ Limited
Felicity Foy - Partner	Friends with some FNDC employees
Deputy Mayor Ann Court (Deputy)	Waipapa Business Association	Member		Case by case
	Warren Pattinson Limited	Shareholder	Building company. FNDC is a regulator and enforcer	Case by case
	Kerikeri Irrigation	Supplies my water		No
	District Licensing	N/A	N/A	N/A
	Ann Court Trust	Private	Private	N/A
	Waipapa Rotary	Honorary member	Potential community funding submitter	Declare interest and abstain from voting.
	Properties on Onekura Road, Waipapa	Owner Shareholder	Any proposed FNDC Capital works or policy change which may have a direct impact (positive/adverse)	Declare interest and abstain from voting.
	Property on Daroux Dr, Waipapa	Financial interest	Any proposed FNDC Capital works or policy change which may have a direct impact (positive/adverse)	Declare interest and abstain from voting.
	Flowers and gifts	Ratepayer 'Thankyou'	Bias/ Pre-determination?	Declare to Governance
	Coffee and food	Ratepayers sometimes 'shout' food and beverage	Bias or pre-determination	Case by case
	Staff	N/A	Suggestion of not being impartial or pre-determined!	Be professional, due diligence, weigh the evidence. Be thorough, thoughtful, considered impartial and balanced. Be fair.
	Warren Pattinson	My husband is a builder and may do work for Council staff		Case by case
Ann Court - Partner	Warren Pattinson Limited	Director	Building Company. FNDC is a regulator	Remain at arm’s length
	Air NZ	Shareholder	None	None
	Warren Pattinson Limited	Builder	FNDC is the consent authority, regulator and enforcer.	Apply arm’s length rules
	Property on Onekura Road, Waipapa	Owner	Any proposed FNDC capital work in the vicinity or rural plan change. Maybe a link to policy development.	Would not submit. Rest on a case by case basis.
David Collard	Snapper Bonanza 2011 Limited	45% Shareholder and Director
David Collard	Trustee of Te Ahu Charitable Trust	Council delegate to this board
Mate Radich	No form received
Rachel Smith	Friends of Rolands Wood Charitable Trust.	Trustee.
	Mid North Family Support.	Trustee.
	Property Owner.	Kerikeri.
	Friends who work at Far North District Council.
	Kerikeri Cruising Club.	Subscription Member and Treasurer.
	Vision Kerikeri	Financial Member
Rachel Smith (Partner)	Property Owner.	Kerikeri.
	Friends who work at Far North District Council.
	Kerikeri Cruising Club.	Subscription Member.
	Vision Kerikeri	Financial Member
	Town and General Groundcare Limited	Director, Shareholder
Kelly Stratford	KS Bookkeeping and Administration	Business Owner, provides book keeping, administration and development of environmental management plans	None perceived	Step aside from decisions that arise, that may have conflicts
	Waikare Marae Trustees	Trustee	Maybe perceived conflicts	Case by case basis
	Bay of Islands College	Parent Elected Trustee	None perceived	If there was a conflict, I will step aside from decision making
	Karetu School	Parent Elected Trustee	None perceived	If there was a conflict, I will step aside from decision making
	Māori title land – Moerewa and Waikare	Beneficiary and husband is a shareholder	None perceived	If there was a conflict, I will step aside from decision making
	Sister is employed by Far North District Council			Will not discuss work/governance mattes that are confidential
	Gifts - food and beverages	Residents and ratepayers may ‘shout’ food and beverage	Perceived bias or predetermination	Case by case basis
	Taumarere Counselling Services	Advisory Board Member	May be perceived conflicts	Should conflict arise, step aside from voting
	Sport Northland	Board Member	May be perceived conflicts	Should conflict arise, step aside from voting
	He Puna Aroha Putea Whakapapa	Trustee	May be perceived conflicts	Should conflict arise, step aside from voting should they apply for funds
	Kawakawa Returned Services Association	Member	May be perceived conflicts	Should conflict arise, step aside from voting should they apply for funds
	Whangaroa Returned Services Association	Member	May be perceived conflicts	Should conflict arise, step aside from voting should they apply for funds
	National Emergency Management Advisor Committee	Member		Case by case basis
	Te Rūnanga ā Iwi o Ngāpuhi	Tribal affiliate member	As a descendent of Te Rūnanga ā Iwi o Ngāpuhi I could have a perceived conflict of interest in Te Rūnanga ā Iwi o Ngāpuhi Council relations	Declare a perceived conflict should there appear to be one
	Te Rūnanga ā Iwi o Ngāti Hine	Tribal affiliate member	Could have a perceived conflict of interest	Declare a perceived conflict should I determine there is a conflict
	Kawakawa Business and Community Association	Member		Will declare a perceived conflict should there appear to be one
Kelly Stratford - Partner	Chef and Barista	Opua Store	None perceived
Kelly Stratford - Partner	Māori title land – Moerewa	Shareholder	None perceived	If there was a conflict of interest, I would step aside from decision making
John Vujcich	Board Member	Pioneer Village	Matters relating to funding and assets	Declare interest and abstain
	Director	Waitukupata Forest Ltd	Potential for council activity to directly affect its assets	Declare interest and abstain
	Director	Rural Service Solutions Ltd	Matters where council regulatory function impact of company services	Declare interest and abstain
	Director	Kaikohe (Rau Marama) Community Trust	Potential funder	Declare interest and abstain
	Partner	MJ & EMJ Vujcich	Matters where council regulatory function impacts on partnership owned assets	Declare interest and abstain
	Member	Kaikohe Rotary Club	Potential funder, or impact on Rotary projects	Declare interest and abstain
	Member	New Zealand Institute of Directors	Potential provider of training to Council	Declare a Conflict of Interest
	Member	Institute of IT Professionals	Unlikely, but possible provider of services to Council	Declare a Conflict of Interest
Mike Edmonds	Chair	Kaikohe Mechanical and Historic Trust	Council Funding	Decide at the time
Mike Edmonds	Committee member	Kaikohe Rugby Football and Sports Club	Council Funding	Withdraw and abstain
Adele Gardner	N/A - FNDC Honorarium
	Te Hiku Education Trust	Trustee
	Te Ahu Charitable Trust	Trustee
	ST Johns Kaitaia Branch	Trustee/ Committee Member
	Te Hiku Sports Hub Committee	Committee Member
	I know many FNDC staff members as I was an FNDC staff member from 1994-2008.
Partner of Adele Gardner	N/A as Retired

Infrastructure Committee Meeting Agenda

16 June 2021

MINUTES OF Far North District Council
Infrastructure Committee Meeting
HELD AT THE Council Chamber, Memorial Avenue, Kaikohe
ON Wednesday, 5 May 2021 AT 9.30 am

PRESENT: Cr Felicity Foy, Mayor John Carter (HWTM) via video conference, Deputy Mayor Ann Court, Cr Rachel Smith, Cr Kelly Stratford, Cr John Vujcich, Kaikohe-Hokianga Community Board Chairperson Mike Edmonds, Te Hiku Community Board Chairperson Adele Gardner

STAFF PRESENT: Shaun Clarke (Chief Executive Officer), Andy Finch (General Manager Infrastructure and Asset Management), Dean Myburgh (General Manager District Services), William J Taylor, MBE (General Manager Strategic Planning and Policy - Acting), Jacine Warmington (General Manager - Corporate Services (Acting)

1 Karakia TimatAnga – Opening Prayer

Chairperson Felicity Foy opened the meeting with a karakia.

2 NGā WHAKAPāHA ME NGā PāNGA MEMA / Apologies and Declarations of Interest

Apology

Resolution 2021/11

Moved: Cr Felicity Foy

Seconded: Cr Kelly Stratford

That the apology received from Cr Collard be accepted and leave of absence granted.

Carried

3 NGā tONO kŌRERO / Deputation

Stewart Otene and Louise Mischewski representing Te Rūnanga o Te Rarawa spoke to Item 5.1 – Economic and Practicability Assessment for Disposal of Treated Wastewater to Land from Kaikohe and Kaitaia Wastewater Treatment Plants.

Nick Marshall – Team Leader Road Safety and Traffic Engineering and Sandi Morris – Road Safety and Traffic Engineer, from Northland Transport Alliance presented on major consent applications that have been lodged with the Far North District Council and provided an update on the Far North Footpath Matrix and changes that are going to be implemented.

tabled documents

Attachments tabled at meeting

1 Presentation - Northland Transport Alliance

4 Confirmation of Previous Minutes

4.1 Confirmation of Previous Minutes

Agenda item 4.1 document number A3155852, pages 14 - 21 refers.

Resolution 2021/13

Moved: Cr Felicity Foy

Seconded: Cr John Vujcich

That the Infrastructure Committee confirm that the minutes of the:

a) Ordinary Infrastructure Committee 24 March 2021 be confirmed as a true and correct record.

b) Extraordinary Infrastructure Committee 27 April 2021 be confirmed as a true and correct record.

Carried

5 Reports

5.1 Economic and Practicability Assessment for Disposal of Treated Wastewater to Land from Kaikohe and Kaitāia Wastewater Treatment Plants

Agenda item 5.1 document number A3155862, pages 22 - 40 refers.

motion:

Moved: Cr Felicity Foy

Seconded: Cr Kelly Stratford

That the Infrastructure Committee:

a) agree the option of disposing treated wastewater to land from the Kāitaia and Kaikohe Wastewater Treatment plants is further investigated, specifically:

i) engagement with affected landowners and mana whenua to determine the selection of a preferred site to be taken forward for preliminary design.

ii) complete a preliminary design that includes site specific technical, design, and cost investigation of land disposal in which mana whenua are to be included.

b) request that the preliminary designs are to be completed prior to December 2023, to enable the Long Term Plan engagement process and request staff report back to the Infrastructure Committee to present the findings of the preliminary design reports.

c) request staff seek replacement resource consents for discharge of treated wastewater to water from the Kāitaia and Kaikohe Wastewater Treatment Plants and that during the term of the consent, staff progress investigation of disposal to land options for both the Kāitaia and Kaikohe Waste Water schemes.

d) request a treated wastewater disposal to land workshop be scheduled for late 2021 with the Infrastructure Committee, which will cover methodologies and processes associated with establishing a disposal to land scheme.

That the Infrastructure Committee recommend to Council that expenditure of up to $330,000 to cover both the Kāitaia and the Kaikohe sites, is allocated in the Long Term Plan deliberations, to complete a preliminary design for each Wastewater Treatment Plant, and sufficient staffing resources are assigned to enable ongoing engagement with mana whenua and other stakeholders.

The meeting was adjourned from 11.33 am to 11.50 am.

carried

Abstained: Crs Ann Court and Rachel Smith

The amendment became the substantive motion.

Resolution 2021/14

That the Infrastructure Committee:

a) agree the option of disposing treated wastewater to land from the Kāitaia and Kaikohe Wastewater Treatment plants is further investigated, specifically:

i) engagement with affected landowners and mana whenua to determine the selection of a preferred site to be taken forward for preliminary design.

ii) complete a preliminary design that includes site specific technical, design, and cost investigation of land disposal in which mana whenua are to be included.

Carried

Abstained: Crs Ann Court and Rachel Smith

At 10:53 am, Mayor John Carter left the meeting.

At 11:04 am, Cr Kelly Stratford left the meeting. At 11:06 am, Cr Kelly Stratford returned to the meeting.

6 Information Reports

6.1 Tourism Infrastructure Fund Round Four, Boat Ramp Study

Agenda item 6.1 document number A3160545, pages 41 - 42 refers.

Recommendation

Moved: Cr Kelly Stratford

Seconded: Cr Felicity Foy

That the Infrastructure Committee receives the report Tourism Infrastructure Fund Round Four, Boat Ramp Study TIF-R4-002 FNDC.

amendment

Moved: Deputy Mayor Ann Court

Seconded: Cr Rachel Smith

b) That the Chief Executive Officer prepare a delivery plan on the Tourism Infrastructure Fund Boat Ramp Study.

Carried

The amendment became the substantive motion.

Resolution 2021/17

Moved: Cr Kelly Stratford

Seconded: Cr Felicity Foy

That the Infrastructure Committee:

a) receives the report Tourism Infrastructure Fund Round Four, Boat Ramp Study TIF-R4-002 FNDC; and that,

b) That the Chief Executive Officer prepare a delivery plan on the Tourism Infrastructure Fund Boat Ramp Study.

Carried

6.2 Infrastructure and Asset Management (IAM) Monthly Business Report for March 2021

Agenda item 6.2 document number A3162730, pages 43 - 44 refers.

Resolution 2021/18

Moved: Cr Felicity Foy

Seconded: Cr Rachel Smith

That the Infrastructure Committee receive the report Infrastructure and Asset Management (IAM) Monthly Business Report for March 2021.

Carried

7 tE wāHANGA tūMATATI / Public Excluded

RESOLUTION TO EXCLUDE THE PUBLIC

Resolution 2021/19

Moved: Cr Felicity Foy

Seconded: Cr Kelly Stratford

That the public be excluded from the following parts of the proceedings of this meeting.

The general subject matter 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 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 for the passing of this resolution
7.1 - Confirmation of Previous Minutes - Public Excluded	s7(2)(h) - the withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities	s48(1)(a)(i) - the public conduct of 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 would exist under section 6 or section 7
7.2 - Proposed Paihia Water Treatment Plant Project Delivery Roadmap	s48(1)(d) - the exclusion of the public from the whole or the relevant part of the proceedings of the meeting is necessary to enable the Council to deliberate in private on its decision or recommendation where a right of appeal lies to any court or tribunal against the final decision of the Council in these proceedings	s48(1)(d) - the exclusion of the public from the whole or the relevant part of the proceedings of the meeting is necessary to enable the Council to deliberate in private on its decision or recommendation where a right of appeal lies to any court or tribunal against the final decision of the Council in these proceedings

Carried

8 Karakia Whakamutunga – Closing Prayer

Councillor Stratford closed the meeting with a karakia.

9 tE kAPINGA hUI / Meeting Close

The meeting closed at 12.41 pm.

The minutes of this meeting will be confirmed at the Infrastructure Committee meeting to be held on 16 June 2021.

...................................................

CHAIRPERSON

Infrastructure Committee Meeting Agenda

16 June 2021

5 Information Reports

5.1 Waka Kotahi New Zealand Transport Agency Technical Audit of Far North District Council

File Number: A3200811

Author: Cushla Jordan, Asset Manager

Authoriser: Andy Finch, General Manager - Infrastructure and Asset Management

TAKE PŪRONGO / Purpose of the Report

To present to the Infrastructure Committee the findings of the Waka Kotahi NZ Transport Agency (Waka Kotahi) Technical Audit of Far North District Council’s Road Network.

WHAKARĀPOPOTO MATUA / Executive SummarY

Waka Kotahi undertook a technical audit of Far North District Council’s Road Network in November 2020.

TŪTOHUNGA / Recommendation

That the Infrastructure Committee receive the report Waka Kotahi New Zealand Transport Agency Technical Audit of Far North District Council.

tĀHUHU KŌRERO / Background

Under Section 95(1)(e)(ii) of the Land Transport Management Act 2003 Waka Kotahi is required to periodically undertake technical audits of Councils road network to provide assurance that Waka Kotahi’s investment in Council’s land transport programme is being well managed and is delivering value for money. Waka Kotahi also seeks assurance that the Council is appropriately managing risk associated with Waka Kotahi’s investment and recommends improvements where appropriate.

MATAPAKI ME NGĀ KŌWHIRINGA / Discussion and Next Steps

Waka Kotahi’s Audit Team undertook a field visit, with Northland Transport Agency (NTA) staff, of the Council’s road network over four days between 23 November to 26 November 2020.

A copy of the approved audit report detailing Waka Kotahi’s findings and associated recommendations is provided as Attachment 1 to this agenda.

The Audit reports Executive Summary raises the following points:

· The Far North District’s road network is well managed by an engaged and cohesive team and is largely in good condition.

· Expenditure on maintenance and renewal is high when compared to peer councils.

· Structures, signage, and delineation devices are the principal areas where improvement is warranted.

· Capital improvement and renewal works are completed to a good standard and effective, innovative treatments are being applied.

· Council takes a strategic approach to the management of its maintenance and renewal activity and this has significantly contributed to an improved network in terms of both condition and operation.

· The impacts of the 2020 COVID-19 lockdowns were well managed and network integrity maintained. Contractors developed pandemic plans to ensure that essential works were safely undertaken, and additional cost has been minimal.

· Significant improvements in data quality have been made but there is still room to strengthen systems to ensure reliable and accurate data for decision-making and to provide the evidence needed for investment by Waka Kotahi.

· Condition rating is a mandatory requirement of Waka Kotahi and must be reinstated.

· The annual number of deaths and serious injuries, listed in New Zealand’s Crash Analysis System as occurring in the Far North District, has been steadily increasing over the past eight years and personal risk (crashes per VKT) is higher when compared to similar councils.

· A large proportion of crashes occur on bends, on unsealed roads, at night and one in four involves motorcycles.

· The Council’s safety improvement projects appear well designed and implemented to achieve the project’s desired outcomes and Council was seen to be proactive in addressing safety issues generally.

The last Technical Audit was undertaken five years ago in March 2016 and the rating assessment of both audits are shown below. The format of the audit assessment has changed since 2016 and the new Assessment Rating Definitions are also shown below.

Audit Rating Assessment

Subject Area		Rating Assessment 2016	Rating Assessment 2020
1	Previous Audit Issues		N/A
2	Network Condition and Management	Significant Improvement Needed	Some Improvement Needed
3	Activity Management planning	Significant Improvement Needed	Effective
4	Data Quality		Some Improvement Needed
5	Road Safety	Significant Improvement Needed	Some Improvement Needed
Overall Rating			Some Improvement Needed

The new Assessment ratings are defined below. These are slightly more complex than the 2016 assessment ratings and include a more detailed rating system.

Assessment Rating Definitions

There were a number of issues raised in the 2020 Audit. Some of these issues have been accepted by Council and improvements have already been implemented. Some of the significant issues raised are commented on in further detail below. Full details are provided in the attached Audit Report.

Assessment Findings

The following recommendations were made by Waka Kotahi on significant issues from the Audit.

· S2.1 Investigate and reports to Waka Kotahi on the reasons for their comparatively high maintenance and renewal expenditures

Council Response - This matter was discussed in the Audit, and also with NZTA as part of the development of the 2021-31 AMP which is quite clear that some of the key reasons for FNDC higher costs are: Lack of access to good quality materials; long material cartage distances from the few quarries; poor subgrade conditions resulting in earlier failures and thicker pavement; lack of contractor competition especially for specialist work such as bridging and streetlights; and the operation of the Hokianga Ferry service also adds a significant cost to the MO&R categories. Half of the comparative councils in the FNDC Peer Group are South Island councils which have comparatively good subgrades and ready access to quality pavement materials.

· R3.1 Reviews development standards (technical specifications and detailed drawings) to reduce the variety and ensure the quality of asset types to be maintained by Council

Council Response - The FNDC are currently reviewing the Engineering Standards document for development throughout the District. Council is working with the other Councils in Northland to develop a single EES document for the region. The NTA is responsible for the management of roading and traffic safety issues relating to new developments for the FNDC and will be able to apply appropriate and consistent standards across the Region.

· S3.2 Considers the long-term restriction of heavy vehicles on vulnerable bridges by means of a Bylaw process

Council Response - Improvements have been made to the Bridge Management Professional Services contract and provision has been made in the 2021-31 AMP for increases in the programme to bring bridge inspections back to a 2-yearly inspection cycle. Council is aware that they have a significant problem with vulnerable bridges and a large number of logging trucks on the network.

· R4.1 Ensures compliance with Waka Kotahi funding rules that require condition rating surveys to be undertaken

Council Response - The NTA has not completed Condition Rating for a number of years due to its proven inaccuracies, safety concerns and the emergence of better repetitive collection technologies. The NTA ran both condition rating and HSD Cracking collection in parallel for two years to determine the effectiveness of HSD crack data. It was found that manual rating failed to capture the extent of cracking and potholes on the network, which was poorly informing decision-making tools such as the long-term pavement performance model. We understood and took lead from the NZTA State Highways, in stopping condition rating on the same grounds as they did. However, the NTA has introduced, tested, and has implemented new technology to provide this data and is currently in the last steps to fully implement the population of this data into the standard rating tables in RAMM. Since Council has been collecting the HSD Crack data, we have been analysing the data and using this in our decision-making process. This will allow NTA to more fully report SCI and PII on the network. SCI is the only measure heavily impacted by this technology implementation. PII uses the data sets already captured by the NTA through HSD survey (in the form of HSD rutting roughness and texture flushing, 100% network coverage).

As commented above, we have taken lead from NZTA H&O in discontinuing condition rating as blunt tool for the system we run today. Unlike the NZTA H&O condition rating has been replaced with more effective repetitive data collection through HSD Crack and Pothole data collection as part of comprehensive HSD data collection strategy (roughness, rutting, texture, geometry, cracking, potholes, video survey completed as one exercise) which covers 100% of the sealed network to better inform tools such as long term pavement performance models. RR 528 refer section 4.6; visual rating remains a subjective process with variable outcomes regardless of sample size as clearly demonstrated by the report.

PĀNGA PŪTEA ME NGĀ WĀHANGA TAHUA / Financial Implications and Budgetary Provision

Some of the recommendations made by Waka Kotahi have already been implemented within current funding allocations.

Āpitihanga / Attachments

1. Far North DC (T) FINAL Audit Report 2021 - A3237350 ⇩

Infrastructure Committee Meeting Agenda

16 June 2021

5.2 Waka Kotahi NZ Transport Agency Procedural Audit of Far North District Council

File Number: A3201195

Author: Cushla Jordan, Asset Manager

Authoriser: Andy Finch, General Manager - Infrastructure and Asset Management

TAKE PŪRONGO / Purpose of the Report

To present to the Infrastructure Committee the findings of the Waka Kotahi NZ Transport Agency (Waka Kotahi) Procedural Audit of Far North District Council.

WHAKARĀPOPOTO MATUA / Executive SummarY

Waka Kotahi NZ Transport Agency (Waka Kotahi) undertook a Procedural Audit of Far North District Council during November and December 2020.

TŪTOHUNGA / Recommendation

That the Infrastructure Committee receive the report Waka Kotahi NZ Transport Agency Procedural Audit of Far North District Council.

tĀHUHU KŌRERO / Background

Under Section 95(1)(e)(ii) of the Land Transport Management Act 2003 Waka Kotahi is required to periodically undertake a Procedural Audit of Councils to provide assurance that Waka Kotahi’s investment in Council’s land transport programme is being well managed and is delivering value for money. Waka Kotahi also seeks assurance that the Council is appropriately managing risk associated with Waka Kotahi’s investment and recommends improvements where appropriate.

MATAPAKI ME NGĀ KŌWHIRINGA / Discussion and Next Steps

Waka Kotahi’s Senior Investment Auditor undertook an investment audit over four days, 30 November to 3 December 2020.

The copy of the approved audit report detailing Waka Kotahi’s findings and associated recommendations is provided as Attachment 1 to this agenda.

The Audit reports Executive Summary raises the following points:

· Council has sound financial management systems in place with clear trail between claims for funding assistance and the general ledger.

· There are strong links in place between the Transport and Finance sections and this is encouraged to continue to ensure deferred expenditure is captured and recognised within the three-year programme.

· Council manages the land transport programme for a Special Purpose Road on behalf of the Waitangi Trust. We reconciled three years claims made by the Trust.

· Transactions tested during the audit were all eligible for funding assistance and claims made by contractors as a direct result of the COVID-19 pandemic were valid, expenditure was reasonable and well documented.

· A review of the retentions account revealed a few outstanding retentions. These need to be investigated further to ensure they are still valid.

· Procurement processes are generally sound, but Council needs to ensure a qualified tender evaluator is used when required and notices of award meet Waka Kotahi procurement rules.

· Council procures significantly more contracts than other Approved Organisations of a similar size. We suggest Council considers value for money options when procuring suppliers for financially assisted activities.

· Council has a good understanding of road safety audit requirements and this area has improved significantly since the last audit in May 2018. However, audit reports were not always complete, and we recommend that decision tracking forms are included to address any safety concerns raised in the reports.

· Council has two conditions of approval registered in Transport Investment Online (TIO) which now appear outdated. We have asked the Waka Kotahi Investment Advisor to investigate and close out any conditions which have been met.

The last Procedural Audit was undertaken three years ago in May 2018 and the rating assessment of both audits are shown below. The format of the audit assessment has changed since 2018 and the new Assessment Rating Definitions are also shown below.

Audit Rating Assessment

Subject Area		Rating Assessment 2018	Rating Assessment 2020
1	Previous Audit Issues	N/A	N/A
2	Financial Processes	Effective	Effective
3	Procurement Procedures	Some Improvement Needed	Some Improvement Needed
4	Contract Management	Effective	Some Improvement Needed
5	Professional Services	Effective	Effective
6	Waitangi Trust	Effective	N/A
7	Hokianga Ferry Service	Significant Improvement Needed	N/A
Overall Rating		Some Improvement Needed	Some Improvement Needed

Assessment Rating Definitions

The new Assessment ratings are defined below. These are slightly more complex than the 2018 assessment rating and include a more detailed rating system.

Assessment Findings

The following recommendations were made by Waka Kotahi on significant issues from the Audit.

· S2.1 That Far North District Council investigates contract retentions older than three years to ensure that they are still valid

Council Response - Council agrees to investigate contract retentions older than three years and will implement these by 30 June 2021. The current process is that Council’s Accounts Payable team at each month end send out the latest retentions report requesting staff to review and advise if any changes to the retention dates are to be made, if there are, these changes are reflected back in Techone.

· R3.2 Ensures there is a Qualified Proposal Evaluator on the tender evaluation team for all Waka Kotahi financially assisted contracts with an estimated value exceeding $200,000

Council Response - Council will ensure that a tender evaluator or the Tender Chair must have the NZTA Evaluator Accreditation (therefore one resource within the TET) – as this is requirement by NZTA for any projects that are funded by NZTA.

To ensure this requirement is fulfilled this is to be identified when completing a procurement plan and FNDC will ensure the process is followed, therefore when we list the evaluators and the Chair within the procurement plan, it needs to be identified who within the team has the accreditation.

NZTA’s comments that ‘Council has procured a large number of contracts over the period audited (over 100) which is significantly more than other Approved Organisations of a similar size. We suggest Council considers value for money options to ensure this is still the Audit: Far North District Council REPORT NUMBER: RATPI -2019 PAGE 9 OF 12 most efficient way of procuring financially assisted activities. For example, this could include bundling similar scoped works such as low cost, low risk or varying existing contracts where appropriate’.

Council Response - There are opportunities to packaging contracts together although realising some resources have a preference for smaller sized suppliers to gain opportunities of delivering work for FNDC. As this increases the suppliers potential through development of capabilities and track record – within our District, however there is a long term opportunity of creating / implementing panels, as to gain benefits, efficiencies, best value for money for both FNDC and our suppliers – this would be the best solution going forward

PĀNGA PŪTEA ME NGĀ WĀHANGA TAHUA / Financial Implications and Budgetary Provision

There are no financial implications to Council.

Āpitihanga / Attachments

1. Far North DC Audit Final Report - A3237355 ⇩

Infrastructure Committee Meeting Agenda

16 June 2021

Meeting: FNDC Infrastructure Committee

Name of item: FNDC NTA and Transportation activity update

FY 2020/21 – Nine-month period to 31 March 21

Author: Calvin Thomas – NTA General Manager

Meeting Date: 16^th June 2021

1 Purpose

The purpose of this paper is to provide the FNDC Infrastructure Committee Members with an update on Far North District Transportation activities delivered through the Northland Transportation Alliance (NTA) for the first nine months of the current financial year (1^st July 2020 – 31^st March 2021).

2 Background

The NTA is responsible for overseeing and managing the delivery of Transportation services for all Northland Councils (FNDC, KDC, NRC and WDC).

Each quarter the NTA Management team provide a summary report to the Alliance Leadership Group (NTA Governance) on activities and progress across the Region. Information from that report pertaining to Far North District Council is included within this update.

3 Discussion

Updates are provided for both the wider NTA Organisation and specific FNDC transportation activities for the nine-month period of July 2020 to March 2021. Future briefing papers will provide similar information for the preceding quarter, aligning with existing Governance reporting provided to the Alliance Leadership Group.

3.1 NTA Deliverables, Vision and Values

In late 2020 the NTA Leadership Group and Management Team confirmed the following Organisational Strategic Deliverables:

· Industry Leader in Asset Management;

· Improve the reach of the public transport network;

· Deliver the Capital Works programme(s);

· Deliver the Maintenance programme(s);

· Lift the quality of customer experience; and

· Prove a demonstrable improvement in the Northland Transport Network.

An NTA Cultural Working Group (CWG) was then established involving NTA staff representatives from each Council and functional team.

The purpose of the CWG was to lead the development of the NTA’s Vision and Values, designed to support achievement of the Strategic Deliverables.

The NTA Vison and Values have now been confirmed and endorsed (by both NTA Staff and the Alliance Leadership Group). The embedding process for the Values & Behaviours has commenced through the nominations for monthly NTA staff awards being linked to demonstration of these Values & Behaviours. Each year there will be annual staff awards for each of the values along with an overall team award focused on the NTA Vision (to be awarded to the team who have encapsulated the ethos of the vision throughout the year).

NTA Vision

NTA Values

	*INTEGRITY* - We are honest in all we do, and we deliver with openness and transparency
	*INNOVATION* - We are open and flexible in the ways we work to deliver a better transport network for Northland
	*TEAM-WORK* - We work together as one to deliver better and safer transportation for the people of Northland
	*RESPECT* - We acknowledge, understand and accept diversity while supporting and celebrating good ideas
	*CUSTODIANS* - Developing and improving Northland's transportation network
	*MANAAKITANGA* - Generosity and care for our people, our partners, our communities and our visitors.

3.2 Financials

Average expenditure across the Region for “Business as Usual” activities in the nine months year to date was 63.9% of total budget (vs. 57.3% for same period of 2019/20). Actual NTA managed Regional transportation expenditure for the nine months year to date ($97.632m) is up by 40% on the same period last year and already exceeds the total expenditure of the full 2019/20 financial year ($93.3m).

FNDC year to date transportation delivered expenditure is approximately 63% greater than the comparable period last year as summarised in the table below.

With full resourcing of the functional based structure model in place, operational management and specialist staff are being utilised as intended to complete tasks across the three District Councils. This is evidenced through NTA timesheet data showing a stabilised percentage of cross council charging:

· 2019/20 Full Year (July 19 -> June 20) 15.5%;

· 2020/21 Nine Months (July 20 -> March 21) 15.7%.

The following table demonstrates the percentage of hours attributed to each Council YTD remains relatively well aligned with each Council’s portion of overall YTD NTA managed District Council expenditure.

FNDC’s unsealed road expenditure is tracking well, with 77% of the total annual budget expended to the end of March 2021. The primary budget line items related to routine unsealed road maintenance are:

3.3 Operational Highlights

Asset Management & Strategy

The final Regional Activity Management Plan (AMP) document, incorporating minor changes required by Waka Kotahi NZTA, and LTP adjustments to programmes by each Council, was completed by the end of January 2021 and has been made available on each Council’s website.

The single AMP document is a strategic Business Case required by Waka Kotahi NZTA as part of the funding application for each Council. The AMP document is made up of a single Programme Business Case (defining the Problem), and the Detailed Business Case (specific funding requests for each Council’s requested programme of works for 2021-24).

Some additional AMP Programme activities and improvement works may continue over the next few months but are likely to only impact the next version of the AMP document. Changes to the current final AMP document will only be required to be made if Waka Kotahi make significant changes to the requested programmes as a result of the moderation process, or Council’s make significant changes to their programmes as a result of LTP consultation.

Waka Kotahi are presently considering the final submissions for the Maintenance, Operations and Renewals Programmes (MO&R), with the following feedback provided by Waka Kotahi as part of the review:

“This AMP is assessed as an excellent example of a Strategic Case, Programme Business Case (PBC), Detailed Business Case. The in-depth analysis of: Demand and Growth, Problems Benefits and Consequences, Root Cause Analysis, Option development, Low Cost Low Risk (LCLR) etc. provide sound evidence that the Northland Network is being managed with sound asset management principles. (Holistic, Systematic, Systemic, Risk based, Optimal & Integrated.)

Section 4.17 State of the Network provides excellent modelling analysis and options assessment for the sealed pavement.

The PBC with; Root Cause analysis, Option Development and Assessment provide excellent evidence using PMRT and Peer Group comparison analysis and discussion.

The Principal Structures Engineer has reviewed the wc215 & 216 Programmes in depth with the AO consultant and made some suggestions to the programme which have been agreed.

NTA have been consistently diligent with completing and documenting the NZTA 2018/21 Funding conditions.”

Any final submissions on the Council’s Capital Improvements Programmes are to be submitted by 21st May and will be considered by Waka Kotahi in June. This will include the prioritisation process of major Regional projects by the Regional Transport Committee (RTC) following consideration of the Regional Land Transport Plan (RLTP) and Regional Public Transport Plan (RPTP) consultation feedback received. The RTC formally deliberated on the submissions on Tuesday 11 May 2021 with staff now making the necessary changes to both plans (RLTP & RPTP) and table these at the 9^th June 2021 RTC meeting with a recommendation they be approved for forwarding to the Northland Regional Council for their approval for submission to Waka Kotahi by 30 June 2021.

Final approval of the NLTP programme will be considered by the Waka Kotahi Board by late August and the final approved NLTP is due to be published by early September 2021.

Development Applications (Transportation component)

Over the past 18 months, the NTA have been become more actively involved in the assessment of consent applications with respect to transport and roading impacts and assessment of required consent conditions in this area.

With Northland being one of the fastest growing regions in New Zealand, the volume, size and complexity of developments to be reviewed has increased. Since October 2019 the volume of consents processed via the NTA Safety and Transportation team has increased by an average of 300-400%, as demonstrated in the graph below.

cid:image001.png@01D74BC1.8F721A30

Figure 2 – Northland (NTA) volume of development applications - October 2019 to April 2021

To date the processing of the increasing volumes has been handled through contracting out a significant portion of application assessments to consultants, particularly for Development Engineering. As a result, there have been some inefficiencies, inconsistencies and workload issues, and much of our strategic planning for Traffic Engineer specifically has been stalled due to lack of resource internally, with these functions unable to be outsourced.

A resource assessment was completed in January 2021 where it was identified that considerable time is being spent by our current in-house Engineers in dealing with;

o Consents / Development Engineering

o Customer complaints systems (CRMs and RFS)

o District Plan and Policy Reviews

As a result of this review it was identified that engaging additional resources to enable bringing the delivery of these activities in-house will be more efficient and provide a more consistent level of service to Councils and our customers and in April 2021. As part of the wider NTA resource review, approval was given to proceed with recruitment of:

· A new role of Senior Development Engineer - Transportation to specifically manage and process the transportation components of the Development Engineering process (consent application reviews and approvals);

· An additional Graduate Transportation Engineer to assist Development Engineering Team with increased workload requirements;

In conjunction with this recruitment two functional units will be created within the NTA Road Safety & Traffic Engineering Team being:

1. Road Safety & Traffic Engineer, and

2. Development Engineering.

Road Safety & Traffic Engineering will focus on the planned/strategic activities, whereas Development Engineering will focus on the reactive actives such as consents and customer enquiries. The scope of the Development Engineering unit and its associated resources is to include:

· Pre-application meetings

· Land Use & Subdivision Consent application reviews

o Section 92 requests for further information

o Conditions of consent

o Hearings

· Engineering Standard reviews

· Input into District Plan & Policy Reviews

· Customer Enquiries (RFS & CRM)

Recruitment of these positions is about to commence with a targeted start date of 1^st July aligning with the new financial year.

Capital Works & Procurement

The Capital Works programme delivery risks are assessed and reported at an individual project level with monthly update reports provided for each Council with the information below summarising the status March 2021 status report. This programme summary & budgets includes the FNDC’s externally funded projects where NTA is responsible for managing delivery (i.e. Redeployment footpaths).

FNDC Programme
Budget	$30,081,630
Actual	$18,922,694
Forecast	$28,510,996
Carry-Over	$1,570,633

The original forecast was undertaken at the start of the financial year when information was limited. The reforecast has occurred several times aided with additional information such as contractors’ programmes, with difference in revised forecast as a result.

Carry overs relate to:

o Historic emergency event funds no longer required;

o Funds for future designs to be allocated once programme confirmed; and,

o Savings made from unsubsidised seal extension programme.

Seal Extension Programme update

Excellent progress has been made completed the significant seal extension programme during the 2020/21 summer construction season.

Though a combination of Unsubsidised, Waka Kotahi subsidised and Tourism Infrastructure Fund (TIF) subsidised funding, 17 individual sites have been targeted, with 99% of a total of approximately 13,000 metres of sealing extensions completed (the remaining 100m of the TIF funded Pungaere Road is scheduled to be completed prior to the end of the financial year). Details of the completed site locations and lengths is provided in the table below.

In addition, NTA staff and contractors have been supporting the construction and delivery of nearly 15km of PGF MBIE funded seal extensions across three specific Far North sites (details below). Preparation works have commenced on all sites with approximately 3800m of seal laid to date (Peria Road). The balance of sealing for these three sites is scheduled for the 2021/22 summer construction season, aligned with the funding contract timeframes.

MBIE Worker Redeployment programme – Transport items

All work associated with the original MBIE funded Te Tai Tokerau Worker Redeployment Funding ($9.32m total / $2.2m FNDC component) was completed in February 2021, with activities related to the additional WDC/FNDC Storm Damage funding continuing through until May 2021.

The table below provides a Regional summary of the Employment Outcomes at the peak of the programme:

In addition to exceeding the programme’s employment objectives, significant opportunities for Northland’s Local and Maori/Pasifika owned businesses as summarised below.

Maintenance & Operations

Over the last five (5) months all the Regional Maintenance & Renewal Contracts have met the 90% compliance target, with the two FNDC contracts achieving >90% for all nine months of the current year. While a good result, there remains a concern that the performance scores do not reflect the actual condition of the roads, particularly the unsealed road networks.

The unsealed road network typically suffers deterioration over the dry summer months (i.e. corrugations and loose gravel roads) that are problematic to treat by grading when still dry. Nonetheless the requirement to meet response times remains a priority that all the Contractors are falling behind on. Non-Conformance Records (NCRs) have been issued where response times are behind, with payment penalties applied to the respective monthly claims. There are presently twelve (12) graders in operation on the FNDC network (7 x FH || 5 x Ventia).

The NTA is reviewing the data and weightings apportioned to the various activities for any opportunities to better align these to drive desired outcomes. It must be noted the majority of the 36 KMPs assessed are ‘behavioural’ measures, against Contract specifications, not actual physical road condition measures. Nonetheless there requires further analysis of the KPM calculations, with emphasis on ensuring confidence to extend the contracts beyond June 2022 is provided.

No major issues have been reported or observed relating to quality of workmanship and the NTA remain confident the Contractors will meet their achievement targets.

The 3rd Quarter summary for the FNDC MO&R Contracts is as follows:

· FNDC North Area (Fulton Hogan):

o Very good progress initially completing 16.2km of unsealed road strengthening works, with 13.5km of the remaining program now underway;

o To date have completed 10.5km of a total of 11.5km Seal Extension projects with the three (3) short Marae and School dust strip seals now finished and only 1km of sealing to complete on Peria Rd (The remaining 1km to seal on the Peria Road PGF funded project has been agreed with MBIE for completion in the new Financial Year);

o The Resealing of the 33km of sealed network was completed earlier than forecast;

o The 4.8km Rehabilitation program, that had slipped slightly with design submissions, has all now been completed;

o All the Summer 2020/2021 Dust Suppressant sites met their expected useful life, with the ban on grading of dust suppressant sites is lifted on 1^st April. No sites required a second application during the summer; and,

o Fulton Hogan has struggled to meet response times for unsealed road routine works, with resourcing stretched due to the major Seal Extension construction above although, with construction projects now coming to an end, additional resources are now being deployed in this area;

· FNDC South Area (Ventia)

o Ventia has deliberately left their unsealed road strengthening works until the autumn period in readiness for winter;

o Completed 37km of Reseals and 3.2km of Rehabs on the sealed network;

o The five (5) short Marae and School dust strip seals were all completed before Christmas, with the Seal Extension Projects on Koropewa Rd (1.8km) and Pungaere Rd (3.6km) are 95% complete at the end of March 2021;

o The Ruapekapeka and Ngapipito PGF Seal Extensions are behind the originally forecast targets however are on track for completion next summer (with these extensions all agreed with MBIE).

· Hokianga Ferry

The new Hokianga Ferry Operations Contractor, Fullers Bay of Islands (FBOI), has demonstrated that they are well versed in managing this type of service, with improved level of responsiveness and diligence regarding compliance and safety.

Examples include replacing all life-jackets, new anchor, new navigation unit with wind meter, new electronic ticketing and CCTV installed.

Revenue received from ticket sales for the 2020/21 financial year to date is approximately 30% higher compared to the same period for the previous two financial years. This significant increase in revenue is a result of a strong domestic tourism market which is an unexpected silver lining of the Covid-19 pandemic.

Fig. 1 Hokianga Ferry - Ticket sales & Revenue

Customer Interactions

There remain challenges with the unsealed networks with significant dissatisfaction in customer surveys and this is also evidenced by the high volumes of complaints, particularly regarding the extent of corrugations in the dry summer period. There will be a significant increase in unsealed road maintenance activities as the grader resources, that have been tied up with construction works, are freed up to attend the unsealed road maintenance needs.

The adjacent table shows how the level of Customer Interactions has trended at a pure volume level, since the inception of the revised maintenance contracts, for comparative quarter. Noting the end of 2019/20 quarter saw a reduction in interactions due to the COVID level 4 lockdown, FNDC interaction numbers have now returned to 2018/19 levels.

The chart below commences from the 1^st July 2018 (commencement date of current Maintenance Contracts) with interaction numbers returning to a pre-pandemic normal level. The spike in July 2020 results from the significant weather event and a seasonal increase in the first quarter of 2021 is seen as a result of deteriorated unsealed road network conditions as the impact of dryer weather continues.

Key - FNDC (Grey) / KDC (Green) / WDC (Blue)

Hokianga Ferry

There was a total of five recorded Customer Interactions related to the Ferry Operations during the second and third Quarters of 2020/21 as detailed below:

Month	Details
October (0)
November (1)	Compliant received from truck driver who had been left behind during the evening charter work. Resolved the following day after finding out there had been a miscommunication between the ‘clippie’ and driver at the time of boarding.
December (1)	Telephone complaint was received by the FGS in respect of inappropriate comments by a crew member onboard. Requested to put their complaint in writing but have not done so.
January (1)	A request from emergency services to run the service for additional hour through to 21.00 was received. This was due to a bush fire blocking the road into Rawene.
February (1)	Customer challenged the size and thickness of the paper stock which is used for the concession card.
March (1)	Complaint received related to shutting down of service due to Tsunami warning.

4 Summary

This briefing report is provided for the information of FNDC Elected Members. A further update summarising the full 2020/21 achievements and outcomes will be provided at the September 2021 Infrastructure Committee meeting.

5 Report Approval

Approved by:

Calvin Thomas

General Manager – Northland Transportation Alliance

21^st May 2021

Infrastructure Committee Meeting Agenda

16 June 2021

5.4 Road Efficiency Group (REG) FNDC Roading Report 2019/2020

File Number: A3206312

Author: Cushla Jordan, Asset Manager

Authoriser: Andy Finch, General Manager - Infrastructure and Asset Management

TAKE PŪRONGO / Purpose of the Report

The purpose of this item is to present the Roading Efficiency Group (REG), Far North District Council Roading Report for 2019/2020 and discuss the outcomes leading into the development of the 2021/2031 Long Term Plan.

WHAKARĀPOPOTO MATUA / Executive SummarY

To present the REG, Far North District Council Roading Report for 2019/2020.

TŪTOHUNGA / Recommendation

That the Infrastructure Committee receive the report Road Efficiency Group (REG) FNDC Roading Report 2019/2020.

tĀHUHU KŌRERO / Background

REG has evolved from the Road Maintenance Task Force back in 2012 and plays a vital role in supporting the Transport sector capability.

REG has now published the second round of annual roading reports using individual performance results and evidence for each of the 67 Road Controlling Authorities, i.e. Councils.

Publishing the Road Controlling Authorities (RCA) reports are a significant step assisting us to collectively deliver better value in the Transport sector. These reports provide a national, objective picture of Transport investment and performance, collated into a single resource.

MATAPAKI ME NGĀ KŌWHIRINGA / Discussion and Next Steps

The Far North District Council’s RCA report is shown in Attachment 1. The reports for Whangarei District Council (WDC) and Kaipara District Council (KDC) are shown for comparison purposes in Attachments 2 and 3.

REG has placed each Council in a national peer group based on Councils, with similar size and types of networks. Far North is in the Rural Districts Peer Group with councils like Kaipara, Wairoa, Selwyn, Ashburton Southland and Ruapehu.

WDC is in the Provincial Centres Peer Group.

The information provided in the reports are based on 2019/2020 data, and trends are shown for the period 2016-2020.

4.1 Panel 1- Summary of key facts

· The attached reports are divided into panels of information. Panel 1 provides a summary of key facts about the Council from Statistics NZ and the MBIE Regional Economic Activity Reporting Tool.

· Valuation figures are the roading assets depreciated replacement cost (current value).

· Expenditure is the gross value invested in Roading (Council plus NZTA subsidy).

4.2 Panel 2 – Activity Management

· Assessment score of Council’s 2018 AMP by REG and separately by NZTA.

Good (>2.25)

Fit for Purpose (>1.5 to 2.25)

Room for Improvement (<=1.5)

· Procurement score is based on a self-assessment by FNDC and is rated as Developing, as we are still looking for better outcomes.

· Quality of Data in FNDC’s RAMM database – score has increased from 69% to 83% resulting from our improvement programme.

4.3 Panel 3 – Service Performance

· The Council’s LTP/ Annual Plan LOS Mandatory Performance Measures from Council’s Annual Reports.

4.4 Panel 4 – Co-Investor Assurance

· Results of previous NZTA Audits of FNDC subsidised Roading Activity.

· Procedural Audit - this audit focuses on ensuring Council is complying with Waka Kotahi NZTA financial requirements (2018).

· Technical Audit – this audit focuses on what we do, how we do it and what results are achieved. (2016).

Note results from the recent 2020 audit are not yet included.

4.5 Panel 5 – Delivery

· Council expenditure by Activity.

· Total expenditure per km compared to peer group.

· FNDC is higher than its peer group due to poor geology, lack of access to good quality materials, few quarries, poor subgrade conditions and higher forestry traffic.

4.6 Panel 6 – Achievements

· Volume of Work completed compared to planned work (lane kms).

o Rehabilitations: - low, a reduction in length due to higher costs

o Reseals: - low, a reduction in length due to higher costs.

o Road condition (sealed roads)

o Surface: - stable

o Pavements: - slight deterioration, average pavement age increasing

o Ride quality: - (smoothness) stable

4.7 Panel 7 – Safety

· Fatal and Serious Injuries reflecting Northland’s very high accident rate.

· Personal risk = crash rate per 100M vehicle km travelled, (VKT), volume X road length. Result: - higher compared to peer group

· Collective risk = crash density per 1,000 km, used to identify blackspots.

Result: - higher compared to peer group

· Crash distribution = accidents on our different road classes, e.g. 20% of DSI’s on 6% of the network, (Primary Collector roads), used to identify blackspots.

4.8 Panel 8 - Network Availability and Accessibility

· Percentage of network not available to Class 1 and 50Max HPMV vehicles. Note this is a new measure.

4.9 Panel 9 - Territorial Activity

· Population Growth (statistics)

· GDP by Industry (MBIE).

4.10 Panel 10 - Network Physical Characteristics (trends)

· Total network length sealed and unsealed.

· Urban percentage by length.

· Cycleway network lengths.

· Number of bridges on network.

4.11 Panel 11 - Road Network Use (trends)

· Vehicle kilometres travelled, (VKT) traffic volume X road length.

· Number of weight restricted bridges on the Network, (excluding 50 Max, and HPMV).

· Journey distribution = road trips (VKT) on the different classes of roads in the network.

e.g. 25% of trips occur on 6% of the network (Primary Collector roads).

4.12 Panel 12 - Public Transport

· Public transport (bus service) only data for WDC reported

Comparison 2019/20 to 2018/19 Results

Panel	Results 2018/2019	Results 2019/2020	Comments
Panel 1- Summary of key facts	64,600 population	6,600 population increase 6.8% increase in GDP	Standard Council statistics
Panel 2 – Activity Management	Data Quality score 69%	83% REG assessment	Asset management at expected standard
Panel 3 – Service Performance	2 KPI’s of 5 achieved	2 KPI’s of 5 achieved no change	Council’s Annual Plan targets
Panel 4 – Co-Investor Assurance	2018 Financial Audit 2016 Technical Audit	No change	Note: results from the recent 2020 Audit are not yet included.
Panel 5 – Delivery	Total expenditure $14,000/km	$12,000/km 47.2% of $126.4M delivered	Reduced expenditure reflecting impact of COVID on program
Panel 6 – Achievements	Improving Road condition trend	Less works completed and road condition stable	Reduced expenditure reflecting impact of COVID on program
Panel 7 – Safety	Fatal and Serious injuries – High compared to peers	Reducing trend in all categories except cycling	Results generally at peer group average
Panel 8 - Network Availability and Accessibility		New measure 95.9% network availability	Records the number of bridges below capacity
Panel 9 - Territorial Activity	1,300 population growth	1,540 (2.4%) increase population growth	Resident population growth (5-year annual average)
Panel 10 - Network Physical Characteristics (trends)	2,508 kms	-7.4 Km (-0.3%) Growth plus loss of Mangakahia (SH15) and correction with road lengths	Network length reduction (5-year annual average)
Panel 11 - Road Network Use (trends)	246 vkt	303M vkt represents a 3.4% annual increase	Vehicle km’s travelled on network (5-year annual average)

PĀNGA PŪTEA ME NGĀ WĀHANGA TAHUA / Financial Implications and Budgetary Provision

There are no financial implications to Council.

Āpitihanga / Attachments

1. 2019-20-RCA-Report-Far-North-District-Council - A3206549 ⇩

2. 2019-20-RCA-Report-Whangarei-District-Council - A3206550 ⇩

3. 2019-20-RCA-Report-Kaipara-District-Council - A3206551 ⇩

Infrastructure Committee Meeting Agenda

16 June 2021

5.5 Sludge Update

File Number: A3208723

Author: Helen Ronaldson, Manager - Asset Management and Infrastructure

Authoriser: Andy Finch, General Manager - Infrastructure and Asset Management

TAKE PŪRONGO / Purpose of the Report

To provide an update to the Infrastructure Committee of the planned and proposed activities on the topic of sludge.

WHAKARĀPOPOTO MATUA / Executive SummarY

In order to progress the implementation of the Sludge Strategy prepared in early 2018, four tactical workstreams have been established. These will be concurrent activities running in parallel, while certain aspects of the strategy are also revisited to ensure its currency.

The tactical plan framework is depicted in the diagram below:

The following next steps are planned to support the overall strategy:

· Finalise engagement of Jacobs to revisit elements of the strategy.

· Prepare a plan for community and other stakeholder engagement on sludge management for the district.

· Continue the procurement of mechanical equipment for desludging of oxidation ponds and associated de-watering.

· Finalise engagement of Jacobs to investigate the potential of improvements of the Kaitaia drying pans and associated, sludge reuse opportunities.

· Continue options development for longer-term sludge management and end use with the first step being the establishment of a roadmap to a trial.

· Raise the potential of FNDC working with the community on the end use of sludge with the East Coast wastewater treatment plant (WWTP) working group.

TŪTOHUNGA / Recommendation

That the Infrastructure Committee receive the report Sludge Update.

tĀHUHU KŌRERO / Background

In 2017 FNDC engaged CH2M (now Jacobs) Beca to develop a strategy for managing the biosolids from FNDC’s 17 community sewerage schemes. The final biosolids strategy report was issued 31January 2018. It recommended that:

· Far North District Council’s (FNDC) treatment ponds be de-sludged, using mobile dredges and dewatering equipment, to be owned and operated by FNDC and the Far North Waters Alliance Partners

· Waste activated sludge from the Russell, Kerikeri^{^[1]} and Hihi wastewater treatment plants WWTP’s continue to be transported to the Kaitaia and Kaikohe WWTP’s to allow further treatment and aging

· Two preferred end-use options (mine/quarry rehabilitation and vermicomposting) be investigated further

While some work has continued overriding priorities from various activities have slowed the progress on this topic. Following the tabling of the Electrocoagulation Wastewater Treatment information report to the February Infrastructure Committee an update on the wider topic of sludge was requested.

MATAPAKI ME NGĀ KŌWHIRINGA / Discussion and Next Steps

At this time the overall strategy remains unchanged; however, we have requested Jacobs to review certain aspects of it including:

· Current technology advancements that may have been considered emerging at the time of writing the strategy but now could be proven, in trials or no longer considered viable.

· Any impact from regulatory changes including draft biosolids guidelines and Waste Minimisation Act update 2020.

· Revisiting the assumptions noted in the strategy based on upgrade plans for some of the treatment plants which were previously unknown – i.e. Kaikohe, Kaitaia.

The tactical plan framework noted above has also been developed to pursue parallel workstreams of activity stemming from the strategy. These streams are described below:

Community Engagement and Liaison

In this workstream, consideration will be given to how we commence community engagement and liaison on sludge management for the district. Learnings from both the Taipa working group and what is being established for Hihi will be applied to a plan for this engagement. The approach to be taken for effluent disposal to land following the workshop planned for later in 2021 will also form part of the approach to be taken here.

Procurement of de-watering equipment

To progress the procurement of mechanical equipment for desludging of oxidation ponds and associated dewatering, the procurement plan for this purchase as outlined in the strategy document has been prepared. However as per the Long Term Plan (LTP) amendments, this spend has been deferred and will be re-visited with suppliers early in the FY2021/2022.

Due to the delay of this machinery de-sludging activity for Taipa and Rawene is expected to be underway at the time using the same method deployed previously via Far North Waters (FNW).

Immediate sludge management improvements

Jacobs is being engaged to commence the investigation into the potential further use of the Kaitaia drying pans and associated, sludge reuse opportunities.

While the sludge strategy is being reviewed and updated and long-term options for sludge management are investigated and then implemented, there remains a need to manage the current sludge inventory of the treatment plants in the region. The drying pans at Kaitaia WWTP provide a readily available means of providing for this, while not prohibiting the migration to a long-term sludge management strategy in the future.

There are two key components to this work:

1. Assessment of the capacity of the existing beds

a. Reviewed and determine if capacity is available immediately within the beds.

b. Consider whether the new draft guidelines for biosolids reuse open up new opportunities for reuse of the existing stabilised sludge.

c. Look for opportunities to increase capacity i.e. through removing stabilised sludge which could be beneficially reused for:

i. Landfill capping

ii. Quarry rehabilitation

iii. Use in parks/recreation areas for landscaping

d. Assess additional capacity against current sludge backlog to determine if the drying pans need to be expanded.

2. Expansion of the (if needed pending the outcomes of 1. above) to allow the current management option to be extended while the long-term solution is implemented

a. Look at potential development on the adjacent land within the Kaitaia WWTP designation.

b. Considered to be a relatively low-cost option compared with the longer-term sludge management options and would likely be able to be completed in a reasonably short time frame. It also avoids disposal to landfill, which is no longer a viable pathway.

Longer-term sludge end use and management

The preferred upgrade option for Kaitaia WWTP includes the decommissioning of the oxidation pond. It is planned to investigate the conversion of the oxidation pond into a sludge lagoon which could take the activated sludge from the mechanical plants across the district. This is thought to be the cheapest option available to treat the activated sludge.

Some options for the biosolids end use which will be explored during assessment work based on mechanical plants include the following:

· Landfill capping.

· Mine/quarry rehabilitation (requires engineering design to better understand associated costs).

· Onsite burial (monofil).

· Vermicomposting (non-viable for pond sludge).

· Production of fertilizer pellets similar to that done in New Plymouth.

· Production of fuel.

We will also consider if a pilot project or trial is possible for one of the districts to allow specific options for the biosolids end use to be explored. This will provide a clear plan sustainable re-use and local community benefits might include:

· Commercial entity / job creation.

· Beneficial reuse of sludge locally, minimising trucking and thus carbon generation.

· Minimising impacts to ratepayers.

PĀNGA PŪTEA ME NGĀ WĀHANGA TAHUA / Financial Implications and Budgetary Provision

Financial requirements for each activity will be managed through existing operating budgets or LTP provisions.

Āpitihanga / Attachments

Nil

[1] Please note that since the completion of the new Kerikeri WWTP, this sludge is no longer transported to Kaikohe

Compliance requirement	Staff assessment
State the level of significance (high or low) of the issue or proposal as determined by the Council’s Significance and Engagement Policy	This is a matter of low significance.
State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision.	This report complies with the Local Government Act 2002 Schedule 7 Section 28.
State whether this issue or proposal has a District wide relevance and, if not, the ways in which the appropriate Community Board’s views have been sought.	It is the responsibility of each meeting to confirm their minutes therefore the views of another meeting are not relevant.
State the possible implications for Māori and how Māori have been provided with an opportunity to contribute to decision making if this decision is significant and relates to land and/or any body of water.	There are no implications on Māori in confirming minutes from a previous meeting. Any implications on Māori arising from matters included in meeting minutes should be considered as part of the relevant report.
Identify persons likely to be affected by or have an interest in the matter, and how you have given consideration to their views or preferences (for example – youth, the aged and those with disabilities.	This report is asking for the minutes to be confirmed as true and correct record, any interests that affect other people should be considered as part of the individual reports.
State the financial implications and where budgetary provisions have been made to support this decision.	There are no financial implications or the need for budgetary provision arising from this report.
Chief Financial Officer review.	The Chief Financial Officer has not reviewed this report.