AGENDA

Finance and Performance Committee

Late Item

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PALMERSTON NORTH CITY COUNCIL

 

 

 

 

Finance and Performance Committee MEETING

 

20 November 2017

 

 

 

LATE ITEM

  

15.       Ashhurst Domain - Manawatu River Bank Protection Works Update           Page 5

Memorandum, dated 16 November 2017 from the General Manager - City Networks, Ray Swadel.    

     

 

 

PALMERSTON NORTH CITY COUNCIL

 

Memorandum

TO:                                Finance and Performance Committee

MEETING DATE:           20 November 2017

TITLE:                            Ashhurst Domain - Manawatu River Bank Protection Works Update

DATE:                            16 November 2017

AUTHOR/S:                   Ray Swadel, General Manager - City Networks, City Networks

 

RECOMMENDATION(S) TO Council 1.   That the update information regarding funding the Manawatu River bank protection works adjacent to the Ashhurst Domain immediately upstream of the State Highway Ashhurst Bridge be received.

 

1.         ISSUE

1.1       At its meeting of 21 August 2017 the Committee received information from the Acting General Manager – City Networks, Rob Green, about the proposed protection works to the eroded Manawatu River bank fronting the Ashhurst Domain.

 

1.2       A copy of that report is attached as Attachment 1 to this report.

 

1.3       The Committee made the following recommendations to Council:

 

1.3.1    “2.       That Council formally contact NZTA to seek confirmation of their contribution of $500,000 or third contribution.”

1.3.2    “3.       That Horizons Regional Council again be contacted for their $500,000 or third contribution and on completion of rockwall bank, that this asset be part of the Lower Manawatu Scheme.”

1.3.3    “4.       That further reports be presented to the Committee confirming outcomes of Recommendations 2 and 3.”

 

1.4       This report provides an update on the funding matters in relation to the proposed river bank protection works.

 

 

2.         BACKGROUND

2.1       Following submissions by Palmerston North City Council to Horizons Draft 2017/18 Annual Plan the Regional Council set out its funding position in relation to the proposed Ashhurst Domain river bank protection works; being a capped contribution of $300,000 towards an estimated cost of the works of $1,000,000.  This represents a 30% contribution just short of Council’s expectation of a third share envisaged under a tri-party agreement being negotiated between the two Councils and the New Zealand Transport Agency (NZTA).

 

2.2       At that time, design for the works had still to be undertaken by Horizons and there remained also an issue over erosion of Domain land fronting the Pohangina River immediately upstream of its confluence with the Manawatu River.  Accordingly the General Manager – City Networks felt it prudent to present an operational programme with a budget value of $500,000 for inclusion in the 2017/18 Annual Budget.

 

2.3       As a result operational Programme 1348 “Contribution toward the River bank protection of the Ashhurst Domain” was approved, providing what was considered an adequate budget for Council contributions to both of the erosion areas (the Manawatu River bank upstream of the Ashhurst Bridge and the Pohangina River bank).

 

2.4       With reference to Attachment 1 the Acting General Manager – City Networks incorrectly assumed that because Council had established a budget for its contribution at $500,000 and that there was an expectation of a one third tri-party agreement that the total cost of the Manawatu River bank protection works was $1,500,000.

 

2.5       That has never been the case in terms of advice from Horizons, although until the detail design had reached an advanced stage there was uncertainty as to an appropriate estimate of the work.

3.         NEXT STEPS

3.1       Officers have continued to engage with Horizons and NZTA over this matter.

 

3.2       NZTA were formally contacted on 29 August 2017 requesting written confirmation of its share of a third of the estimated cost of the works of $1,500,000 by the Acting General Manager – City Networks.

 

3.3       NZTA have advised they also have secured a $500,000 budget provision from which to make their contribution.

 

3.4       Horizons advise they now have a high level of confidence as they have worked through the design options, that the Manawatu River bank protection works can be completed within a sum of $1,000,000, subject to committing rock supply contracts now.

 

3.5       The General Manager – City Networks confirmed Council’s commitment to contributing to the Manawatu River bank protection works on the basis that it is estimated to cost $1,000,000 and would be funded $300,000 by Horizons capped contribution with the balance met on a 50:50 cost sharing basis between Council and NZTA.  Accordingly the financial contributions by Council and NZTA would be $350,000 respectively.

 

3.6       If the actual cost is below $1,000,000 the 50:50 cost sharing balance of Council and NZTA contributions would continue to apply, until this was less than $300,000 for these partners.  Below this sum a third share would apply to all contributors – Horizons, Council and NZTA.

 

3.7       Horizons are currently putting several of their design options through an independent technical peer review from which to determine the final specification and contract design.  These options have similar rock supply requirements.

 

3.8       Accordingly Horizons are about to award a rock supply contract which will see this material stockpiled on the left bank, such that it is available for the actual placement to protect the river bank around February 2018.

 

3.9       These construction works are expected to take in the order of four to six weeks to complete, which would see final completion by April 2018.

 

3.10     While Horizons have been focussing on the physical protection works along the right bank of the Manawatu River fronting the bush area of the Ashhurst Domain; they intend to address Council’s submission to their Draft 2017/18 Annual Plan that these works are embraced into the Lower Manawatu Scheme by way of an Officer’s recommendation to the Regional Council early in the New Year.

 

3.11     Likewise further discussions will occur in the New Year regarding protection works along the left bank of the Pohangina River fronting grazing land of the Domain and how these can be funded.  This will be reported upon separately once those discussions are concluded.

4.         NEXT ACTIONS

 

4.1       Actions to follow are covered under Clauses 3.7 to 3.11 above in this report.

 

 

5.         Compliance and administration

Does the Committee have delegated authority to decide? If Yes quote relevant clause(s) from Delegations Manual	No
Are the decisions significant?	No
If they are significant do they affect land or a body of water?	No
Can this decision only be made through a 10 Year Plan?	No
Does this decision require consultation through the Special Consultative procedure?	No
Is there funding in the current Annual Plan for these actions?	Yes
Are the recommendations inconsistent with any of Council’s policies or plans?	No

 

 

Attachments

1.

Report to August 2017 Finance & Performance Committee re Ashhurst Domain River Protection Works ⇩

 

 

Ray Swadel General Manager - City Networks