Agenda of Infrastructure Committee - Wednesday, 24 November 2021

Infrastructure Committee MEETING

24 November 2021

Order of Business

Pursuant to Sections 46A(7) and 46A(7A) of the Local Government Official Information and Meetings Act 1987, to receive the Chairperson’s explanation that specified item(s), which do not appear on the Agenda of this meeting and/or the meeting to be held with the public excluded, will be discussed.

Any additions in accordance with Section 46A(7) must be approved by resolution with an explanation as to why they cannot be delayed until a future meeting.

Any additions in accordance with Section 46A(7A) may be received or referred to a subsequent meeting for further discussion. No resolution, decision or recommendation can be made in respect of a minor item.

3. Declarations of Interest (if any)

Members are reminded of their duty to give a general notice of any interest of items to be considered on this agenda and the need to declare these interests.

4. Public Comment

To receive comments from members of the public on matters specified on this Agenda or, if time permits, on other Committee matters.

(NOTE: If the Committee wishes to consider or discuss any issue raised that is not specified on the Agenda, other than to receive the comment made or refer it to the Chief Executive, then a resolution will need to be made in accordance with clause 2 above.)

5. Presentation - Kāinga Ora Page 7

6. Confirmation of Minutes Page 9

“That the minutes of the Infrastructure Committee meeting of 27 October 2021 Part I Public be confirmed as a true and correct record.”

7. Papaioea Place Redevelopment Six-Monthly Update Page 15

Memorandum, presented by Bryce Hosking, Manager - Property.

8. Tamakuku Terrace Six-Monthly Update Page 19

Memorandum, presented by Bryce Hosking, Manager - Property.

9. Committee Work Schedule Page 23

10. Exclusion of Public

To be moved:

“That the public be excluded from the following parts of the proceedings of this meeting listed in the table below.

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 passing this resolution

This resolution is made in reliance on Section 48(1)(a) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by Section 6 or Section 7 of that Act which would be prejudiced by the holding of the whole or the relevant part of the proceedings of the meeting in public as stated in the above table.

Also that the persons listed below be permitted to remain after the public has been excluded for the reasons stated.

[Add Third Parties], because of their knowledge and ability to assist the meeting in speaking to their report/s [or other matters as specified] and answering questions, noting that such person/s will be present at the meeting only for the items that relate to their respective report/s [or matters as specified].

Palmerston North City Council

Minutes of the Infrastructure Committee Meeting Part I Public, held in the Council Chamber, First Floor, Civic Administration Building, 32 The Square, Palmerston North on 27 October 2021, commencing at 1.00pm.

Members

Present:

Councillor Vaughan Dennison (in the Chair), The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Rachel Bowen, Zulfiqar Butt, Billy Meehan, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Orphée Mickalad.

Non Members:

Councillors Patrick Handcock ONZM, Leonie Hapeta and Lorna Johnson.

Apologies:

Councillors Renee Dingwall and Lew Findlay; Councillors Aleisha Rutherford (late arrival) and the Mayor, (Grant Smith) (early departure).

Councillor Aleisha Rutherford entered the meeting at 1.14pm during consideration of clause 7. She was not present for clause 6.

Councillor Rachel Bowen left the meeting at 2.20pm during consideration of clause 11. She was not present for clauses 11-13 inclusive.

6-21

Apologies

Moved Vaughan Dennison, seconded Grant Smith.

The COMMITTEE RECOMMENDS

1. That the Committee receive the apologies.

Clause 6-21 above was carried 14 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Vaughan Dennison, Brent Barrett, Susan Baty, Zulfiqar Butt, Renee Dingwall, Lew Findlay QSM, Patrick Handcock ONZM, Leonie Hapeta, Lorna Johnson, Billy Meehan, Karen Naylor, Bruno Petrenas and Orphée Mickalad.

7-21

Presentation - New Zealand Defence Force

Councillor Aleisha Rutherford entered the meeting at 1.14pm.

Presentation by Major Andy Olivier and Mr Hayden Prosser.

The following information was presented to the Committee outlining the proposed future development of the Linton Military facility:

· Maintenance Support Facility – consolidates all Army maintenance trades into one modern facility.

· Regional Supply Facility – consolidates Army’s military supply functions for storage and warehousing of equipment.

· Regional Vehicle Storage – provides storage for all the largest NZDF military vehicles held at Linton Camp.

· Key Regional Benefits included hiring of local contractor and suppliers, contributing to regional growth, and new facilities are more sustainably designed and includes staff with better working conditions.

· Estate and Infrastructure is being designed in collaboration with a number of defence estate projects including Linton Watercourse and Stormwater Network Upgrade, Potable Water Reticulation and Water Supply Upgrade, Linton Electrical Network Upgrade and Carparking Projects including charging stations for electric vehicles.

Moved Vaughan Dennison, seconded Patrick Handcock ONZM.

The COMMITTEE RESOLVED

1. That the Infrastructure Committee receive the presentation from Major Andy Olivier and Mr Hayden Prosser from the New Zealand Defence Force for information.

Clause 7-21 above was carried 14 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Vaughan Dennison, Brent Barrett, Susan Baty, Rachel Bowen, Zulfiqar Butt, Patrick Handcock ONZM, Leonie Hapeta, Lorna Johnson, Billy Meehan, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Orphée Mickalad.

8-21

Confirmation of Minutes

Moved Vaughan Dennison, seconded Patrick Handcock ONZM.

The COMMITTEE RESOLVED

1. That the minutes of the Infrastructure Committee meeting of 24 March 2021 Part I Public be confirmed as a true and correct record.

Clause 8-21 above was carried 14 votes to 0, the voting being as follows:

For:

9-21

Papaioea Place Redevelopment Six-Monthly Update

Memorandum, presented by Bryce Hosking, Manager - Property.

Moved Vaughan Dennison, seconded Patrick Handcock ONZM.

The COMMITTEE RESOLVED

1. That the report titled `Papaioea Place Redevelopment Six-Monthly Update’ presented to the Infrastructure Committee on 27 October 2021 be received for information.

2. That Councillors note that external funding was secured to contribute towards Stage 2 of the work.

Clause 9-21 above was carried 14 votes to 0, the voting being as follows:

For:

10-21

Infrastructure Unit Capital Works Dashboard - June 2021

Memorandum, presented by Geoffrey Snedden, Manager Project Management Office.

Moved Vaughan Dennison, seconded Susan Baty.

The COMMITTEE RESOLVED

1. That the report titled ‘Infrastructure Unit Capital Works Dashboard - June 2021’ presented to the Infrastructure Committee on 27 October 2021 be received for information.

Clause 10-21 above was carried 14 votes to 0, the voting being as follows:

For:

11-21

Six Month Transport Network Safety Update Report - 2019-20 No 3

Memorandum, presented by Sandra King, Acting Manager Transport and Infrastructure.

Moved Vaughan Dennison, seconded Zulfiqar Butt.

The COMMITTEE RESOLVED

1. That the report titled `Six Month Transport Network Safety Update Report – 2019-20 No 2’ presented to the Infrastructure Committee on 27 October 2021, be received for information.

Clause 11-21 above was carried 13 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Vaughan Dennison, Brent Barrett, Susan Baty, Zulfiqar Butt, Patrick Handcock ONZM, Leonie Hapeta, Lorna Johnson, Billy Meehan, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Orphée Mickalad.

12-21

Asset Management Improvement Plan Update

Memorandum, presented by Jono Ferguson-Pye, Manager Asset Planning Division.

Councillor Rachel Bowen left the meeting at 2.20pm.

Moved Vaughan Dennison, seconded Karen Naylor.

The COMMITTEE RESOLVED

1. That the report titled ‘Asset Management Improvement Plan Update’ presented to the Infrastructure Committee on 27 October 2021 be received for information.

2. That the Committee note an update of the Asset Management Maturity Assessment has been scheduled by the Asset Planning Division for July 2022.

3. That the Committee note that formal progression of the Asset Management Improvement Plan, which supersedes the priorities and programme recommendations of the 2019 Asset Management Maturity Assessment, started in May 2021.

Clause 12-21 above was carried 13 votes to 0, the voting being as follows:

For:

13-21

Committee Work Schedule

Moved Vaughan Dennison, seconded Leonie Hapeta.

The COMMITTEE RESOLVED

1. That the Infrastructure Committee receive its Work Schedule dated October 2021.

Clause 13-21 above was carried 13 votes to 0, the voting being as follows:

For:

The meeting finished at 3.01pm

Confirmed 24 November 2021

Chairperson

Memorandum

TO: Infrastructure Committee

MEETING DATE: 24 November 2021

TITLE: Papaioea Place Redevelopment Six-Monthly Update

Presented By: Bryce Hosking, Manager - Property

APPROVED BY: Sarah Sinclair, Chief Infrastructure Officer

RECOMMENDATION(S) TO Council

1. That the report titled `Papaioea Place Redevelopment Six-Monthly Update’ presented to the Infrastructure Committee on 24 November 2021 be received for information.

1. ISSUE

1.1 Stage 2 of the Papaioea Place Housing Redevelopment is funded through Programme 1219 – Social Housing – Papaioea Stage 2.

1.2 Stage 3 of the Papaioea Place Housing Redevelopment is funded through Programme 1743 – Social Housing – Papaioea Stage 3.

1.3 The Finance and Performance Committee Chairperson requested a quarterly update to be brought back to the Finance and Performance meeting for the duration of the construction period.

1.4 The terms of reference for the new Infrastructure Committee Meeting include scope for updates on the progress of the Papaioea Place Redevelopment. As such, this report is being presented to this Committee, and all future update reports for this programme will now be presented to the Infrastructure Committee, not the Finance and Performance (now Finance and Audit) Committee.

1.5 In the December 2019 Infrastructure Committee Meeting it was agreed that the quarterly updates would change to six-monthly updates moving forward.

2. BACKGROUND

2.1 The Papaioea Place project form of contract is a design and build contract between Palmerston North City Council (Principal) and Latitude Homes (Contractor) of New Plymouth.

2.2 Papaioea Place Stage 1 was delivered through Programme 357. This saw the demolition of the 32 existing units and the construction of 50 new units in their place. Stage 1 was completed as planned on 28 February 2020 and within budget.

2.3 Papaioea Place Stage 2 saw the demolition of the remaining blocks of units on site and the old hall and the construction of an additional 28 new units. This has taken the total number of new units on the site to 78.

2.4 The overall project management for both stages of the development is being provided by WT Partnership Advisory. The day-to-day project management is being carried out by Council Officers.

2.5 Site meetings and Project Control Group meetings are held each month and this report is a summary from the October 2021 meeting.

3. SUMMARY – PROJECT CONTROL GROUP REPORT FOR STAGE 2 – october 2021

Health and Safety

3.1 There were no new health and safety incidents reported since the last report.

3.2 There have been three near misses to date for the life of the project.

Programme Update

3.3 The final 10 units in Stage 2 was completed and handed back to Council from the contractor on 20 October 2021 and a code of compliance certificate (CCC) has been issued.

3.4 A blessing took place on 29 October 2021.

3.5 Financial

3.6 There is an approved Programme Budget for Stage 2 of $5,986,532 incl. GST.

3.7 Stage 2 was delivered within the available budget with all variations and client supplied items being accommodated within the project contingency.

3.8 Council was successful in obtaining approximately $4.7M of external funding from the Provincial Growth Fund as a contribution towards the delivery of Stage 2.

Stage 3 Progress

3.9 Council decided the scope of Stage 3 will include the construction of 7 additional units and a new tenant lounge.

3.10 Detailed design is due to be completed in October 2021/ November 2021 and is due to be submitted for consent in November 2021.

3.11 Physical construction will then commence on-site from January 2022.

4. NEXT STEPS

4.1 Award the construction contract for Stage 3 in December 2021 and commence the Stage 3 construction programme.

5. Compliance and administration

Does the Committee have delegated authority to decide?		Yes
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

The recommendations contribute to Goal 3: A Connected and Safe Community
The recommendations contribute to the achievement of action/actions in Connected Communities The action is: Upgrade the Papaioea housing complex.
Contribution to strategic direction and to social, economic, environmental and cultural well-being	The Papaioea Place Redevelopment will: · Increase Council’s social housing to help meet the demand for this type of housing and reduce the housing waiting list; · Improve the housing condition of the complex by replacing the old units; and · Provide a complex that delivers on the Social Housing Plan.

Attachments

Nil

Memorandum

TO: Infrastructure Committee

MEETING DATE: 24 November 2021

TITLE: Tamakuku Terrace Six-Monthly Update

Presented By: Bryce Hosking, Manager - Property

APPROVED BY: Sarah Sinclair, Chief Infrastructure Officer

RECOMMENDATION(S) TO Council

1. That the report titled ‘Tamakuku Terrace Six-Monthly Update’ presented to the Infrastructure Committee on 24 November 2021, be received for information.

1. ISSUE

1.1 The Infrastructure Committee requested six-monthly updates be provided throughout the duration of the project.

1.2 As monthly project reports are provided to the project team in the last week of each month from Veros Property Services, this update is a summary from the October 2021 project report from Veros.

2. BACKGROUND

2.1 The District Plan includes a specific Structure Plan and suite of planning provisions for the Whakarongo Residential Area that will direct the subdivision design and development. This includes guidance for providing different section sizes.

2.2 Tamakuku Terrace provides an opportunity to deliver a subdivision consistent with the requirements of the District Plan.

2.3 Once developed the subdivision will create 114 new residential sections. Sections will be of a variety of sizes to appeal to a wide variety of purchasers by giving options regarding design, build type and purchase price.

2.4 Section sizes will range from 275m² (a couple) through to 810m², with the average section size being 463m².

2.5 The development of the site will be split into two stages:

· Stage 1 – 79 Sections; and

· Stage 2 – The balance of 35 sections.

2.6 Stage 2 is subject to the approval of the comprehensive discharge consent (CDC) for the entire Whakarongo Growth Area from Horizons Regional Council and is anticipated to closely follow, but remain distinct from, Stage 1.

3. Development update – october 2021 veros report

Health and Safety

3.1 There was one minor incident reported by the contractor in September 2021. The incident was dealt with on site and required minor first aid.

Regulatory

3.2 All consents have been obtained for the project from both Palmerston North City Council and Horizons Regional Council for Stage 1.

3.3 Horizons Regional Council have continued to commend the contractor for the environmental controls onsite which have been working well in the recent rain events.

3.4 The KiwiRail Authority Grant and Permit have been issued to allow the Stage 1 works that are within the KiwiRail corridor to proceed. Noting this is different from the consent required for Stage 2 to construct the stormwater pipe under the rail corridor.

Progress Update

3.5 Overall, the contractor is progressing well, and the site is being well managed.

3.6 The revised practical completion date for Stage 1 is now May 2022. This has been delayed from the original expected completion date of November 2021.

3.7 Most of this delay is due to wet weather, however there were also delays caused from Covid-19 Alert Levels 3 and 4 in August 2021, and a small number of minor delays relating to additional environmental controls imposed by Horizons.

3.8 The section titles for Stage 1 are now expected in July 2022.

Key Programme Milestones

3.9 Below is a summary of the revised development milestones:

Key Project Milestones	Programmed Date	Current Status
Stage 1 Construction Completion	November 2021	May 2022
Stage 1 Presales	October 2021	October 2021
Stage 1 Titles Issued	February 2022	July 2022
Stage 2 Resource Consent Application	September 2021	October 2021

3.10 Please note the Consent application for Stage 2 is subject to Council achieving the greater Resource Consent for the Whakarongo Growth Area. This includes acquiring the Downstream Oxbow for a neighbouring party.

Sales and Marketing

3.11 The full website is now live and sales release tender period closes on 28^th of October 2021.

3.12 There are 1127 registered parties within the database as of the start of October.

3.13 As at 19 October 2021 three (3) tenders have been received and there has been strong interest.

3.14 The sections are currently advertised on social media channels and Trade Me.

3.15 Purchasers can make offers on multiple sections however we will only allow one purchase per sales release.

3.16 Conditions are allowed however due diligence and finance are expected to be completed once sales packs are issued and less likely to be accepted.

Affordable Housing Providers

3.17 In conjunction to the public sales releases, Council has agreed to partner with Homes for People and sell 20 sections to them with terms to deliver affordable housing.

3.18 Whilst the terms have been agreed upon in principle, the final terms are being formalised through a Sales and Purchase Agreement between the respective legal teams. Signing of this Agreement is anticipated in November 2021.

Financial

3.19 Stage 1 of the project continues to track within the programme budget and all variations have been accommodated within the project contingency.

4. NEXT STEPS

4.1 Continue to deliver the project in accordance to programme.

5. Compliance and administration

Does the Committee have delegated authority to decide?		Yes
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

The recommendations contribute to Goal 1: An Innovative and Growing City
The recommendations contribute to the achievement of action/actions in City Growth The action is: Housing development is initiated at Whakarongo
Contribution to strategic direction and to social, economic, environmental and cultural well-being	Progressing with the Tamakuku Terrace subdivision development within the Whakarongo Growth Area will: · Provide additional sections to the marketplace to help reduce the supply vs. demand shortfall; · Provide choice to purchasers through a variety of section sizes and provide them the freedom to choose their preferred house builder; · Provide a best practice example to the private development community showcasing the opportunities and benefits of working closely with local iwi, urban designers, territorial authorities and local experts to achieve excellent outcomes. · Support local contractors and the employment market.

Attachments

Nil

Vaughan Dennison (Chairperson)
Susan Baty (Deputy Chairperson)
Grant Smith (The Mayor)
Brent Barrett	Karen Naylor
Rachel Bowen	Bruno Petrenas
Zulfiqar Butt	Aleisha Rutherford
Lew Findlay QSM	Orphée Mickalad
Billy Meehan