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Contract No 10/1030 – 1034 Community Information evening Thursday 14 April 2011

Contract No 10/1030 – 1034 Community Information evening Thursday 14 April 2011. Welcome. Introductions Meeting protocol Feedback from Councillors Feedback from 9 th March community meeting Questions welcomed at the conclusion of the presentation. Cr Marsh. Council’s Decision.

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Contract No 10/1030 – 1034 Community Information evening Thursday 14 April 2011

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  1. Contract No 10/1030 – 1034CommunityInformation eveningThursday 14 April 2011

  2. Welcome • Introductions • Meeting protocol • Feedback from Councillors • Feedback from 9th March community meeting • Questions welcomed at the conclusion of the presentation Cr Marsh

  3. Council’s Decision Council have unanimously voted in favour of proceeding with the Maketu / Little Waihi Wastewater Scheme at the Council meeting on 24 March 2011. Cr Marsh

  4. Feedback from 9th March Community Meeting • 70 people in attendance • Meeting lasted 2½ hours • Issues raised by individuals • Affordability • Funding sources for people in hardship • Alternative treatment design • Recommendation by Councillors that the project will be finally debated on 24 March 2011 • Generally the concept of a wastewater scheme for the communities had majority support (noting issues raised by the community) Cr Marsh

  5. Evening overview • Tender process • Financial analysis • Assumptions • Budget • UAC • Funding source • The project team • Three month look ahead • Keeping the community informed Kelvin

  6. Key Advantages for Community • Flush and forget • All properties are connected (no extra costs or arrangements required by property owner) • The cost of electrical supply to the pump is part of the tender cost $685,000 • All existing private property wastewater pipework from house to original septic tank replaced • Existing septic tank pumped out and collapsed / filled in as part of the scheme Kelvin

  7. Tender Process Accepted tenders: • Phase 1 - Interceptor / Grinder Pump Procurement Tender Contract No 10/1033   - EcoFlow Ltd $2.4 million • Phase 2 - Onsite Property Collection and Reticulation Tender Contract No 10/1032   - Loveridge Construction $4.8 million • Phase 3 - Treatment Plant and Disposal Field Tender Contract No 10/1030 and 10/1031 - Spartan Construction $5.142 million • Expecting total project cost to be around $14.4 - $15.2 million • Current project estimate $16.3 million Kelvin

  8. Project Budget Reticulation Component $9.2 million Treatment Plant & Disposal $4.5 million Consent Costs $0.6 million Land Lease 25 Years (capitalised) $0.5 million Engineering & Approvals $0.5 million Contingency Sum $1.0 million Total $16.3 million+ GST Kelvin

  9. Options on Project Costs • Assumptions made • Agreed refinements to project components • Growth strategy • Financial contributions Kelvin

  10. Assumptions • 367 Maketu 65 Little Waihi = Total 432 lots • 157 empty lots (varying take up) • Te Arawa 300 lot subdivision (period of take up) • Growth 110 lots (take up over 25 years) • Operating costs (final numbers to be confirmed based on final design $200k - $250k Kelvin

  11. Connection to Scheme Over 25 Years Kelvin

  12. Financial Model *** GST now 15% ($721 @ 12.5%) Kelvin

  13. UAC • Factors affecting UAC • Tender negotiations • Final construction cost • Final operating cost • Actual growth over 25 years (By May 2012) (By May 2013) ? All Go Don’t know Kelvin

  14. Funding Source Ex GST Incl GST • Subsidies Ministry of Health (SWSS*) $9.3m $10.5m • Bay of Plenty Regional Council $2.1m $2.415m • Funded by the Community & District $4.9m $5.8m TOTAL $16.3m $18.7m *Note application for extra $1.2m includes GST Contribution by Council to date (WBOPDC) $1.3m SWSS – Sanitary Works Subsidy Scheme Annual Plan 2011/12 includes 50% UAC charge Kelvin

  15. The Project Team Utilities Manager Kelvin Hill Engineer to the Contract Graeme Brown Technical Support Ulrich Glasner Project Manager Joe Stewart Ecoflow Electrical / Telemetry City Care Treatment Plant Spartan Reticulation / Onsite Project Loveridge Joe

  16. Ecoflow Karl Sentch Director / Contract Manager Jon McGettigan Director / Quality Manager • Responsible for procurement for interceptor / grinder pumps and deliver to Council • Liaise with reticulation / private property construction contractor (Loveridge) • Review design Joe

  17. Loveridge Drainage Contractors Carl Loveridge Director / Site Manager Paul Loveridge Director / Contract Manager • Responsible for installation of all associated reticulation to streets and onsite property connections • Significant interface with property owners in this regard Joe

  18. Spartan Construction Brendon Pearson Site Manager Greg Dodd General Manager Spartan Project Director / Contractors Representative Mark Gerrand Project Manager • Responsible for design and build of the treatment plant on Arawa Ave • Responsible for operating the plant for the first 12 months Joe

  19. City Care – Councils current maintenance contractor Bernard Dale Contract Manager Keith Higgins Business Development Manager • Responsible for electrical upgrades at private properties • Responsible for Councils telemetry and other electrical components requiring interfacing Joe

  20. Three Month Look Ahead • Property owners receiving a letter • Onsite meetings to be arranged • Project blessing • Design team finalising layout designs of plant (more detail provided in the community update newsletter) Joe

  21. Keeping the Community Informed • Scheduled community meetings Thursday 23 June 2011 Thursday 25 August 2011 Thursday 27 October 2011 Thursday 15 December 2011 Thursday 16 February 2012 Thursday 19 April 2012 Meetings start 6.30pm at Maketu Fire Station Kelvin

  22. Keeping the Community Informed • Scheduled newsletter distribution dates 21 April 2011 10 January 2012 30 June 2011 2 March 2012 2 September 2011 3 May 2012 4 November 2011 • Updates in Mai Maketu and Te Puke Times • Website - history and current information Kelvin

  23. Telecom Cellnet Tower Location Option Kelvin

  24. Next meeting 23 June 2011 Maketu Fire Station 6.30 – 8.00pm • Check out the ‘major projects’ section on Council’s website www.westernbay.govt.nz/Major-Projects/Small-Communities-Wastewater-Investigation/ • Please also feel free to contact the project team by emailing maketu-littlewaihi@westernbay.govt.nz or phoning 07 571 8008 Kelvin

  25. Questions?

  26. Alternative Design • Biofiltro System (worm based sewage treatment) • Southland District Council (Edendale / Wyndham communities) • Councils project team reviewed this system back in March 2010 in conjunction with MWH Consultants • Significant issues still with plant operation • Extra capital cost to install pre-treatment ponds into the design • Operational costs are yet to be proven, 14 months operation and already having to replace components • Difference in capital savings not significant when looking at potential risk (proven systems preferred) • High risk to Council in not achieving discharge requirements Kelvin

  27. Slides Presented at the 9 March Community Meeting • Maintenance zone • What if we didn’t do anything • Where are we • A closer look at the components of the scheme • Who’s being connected • Costs / funding UAC • Where to from here

  28. Direct costs to property ownersUniform Annual Charge (UAC)Based on information as at 3 March 2011 Range • Capital Component $59 $68 • Operational Component $531 $613 UAC $590 $681 Plus GST $88 $102 TOTAL $678 $783 Over the last two years the community has anticipated a UAC cost of $642 plus GST ($721) Comparative rates Omokoroa $874 Te Puke $508 Katikati $914 Waihi Beach $868

  29. Tenders Received Phase 1 - Interceptor / Grinder Pump Procurement Tender Contract No 10/1033 • Ecoflow Ltd $2,128,370 • ITT Water and Wastewater $2,300,006 • Mono Pumps (NZ) Ltd $2,561,940 • Engineers estimate $2,163,260

  30. Tenders Received Phase 2 - Onsite Property Collection and Reticulation Tender Contract No 10/1032 • Loveridge Ltd $3,847,972 • Armadillo 2007 Ltd $4,604,699 • HEB Construction $4,799,895 • Brown Drainage & Construction $5,406,670 • Hawkins Infrastructure $5,575,111 • Downer $5,728,290 • Engineers estimate $6,522,425

  31. Tenders Received Phase 3 - Treatment Plant and Disposal Field Tender Contract No 10/1030 and 10/1031 • Spartan Construction Ltd $4,247,465 • Hawkins Infrastructure (conforming) $6,728,820 • Downer $7,883,222 • Tenix New Zealand Ltd $8,500,000 • Hawkins Alternative Tender Bid $5,784,517 • Engineers estimate $4,500,000

  32. Tenders – Phase 1 Interceptor / Grinder Pump Procurement Tender Contract No 10/1033 • Grinder pumps secured by Council (savings $300k) • Adjustment made to account for all commercial properties in Maketu (multiple pans) 44 pans / 59 pans • Risk associated with exchange rates • Tender sum $2.4m

  33. Tenders – Phase 2 - Onsite Property Collection and Reticulation Tender Contract No 10/1032 • Progressing evaluations process with three companies (all lowest price conforming) • Loveridge $3,847,972* • Armadillo $4,604,699* • HEB $4,799,895* * Risk areas noted in individual submissions • Potential for revised pricings under negotiations

  34. Tenders – Phase 3 - Treatment Plant and Disposal Field Tender Contract No 10/1030 and 10/1031 • Spartan Construction Ltd $4,247,465 • Tender includes a number of additional refinements for the design • Address future growth and enhanced levels of treatment • Depending on final contract agreed sum (which effects commissioning and operational costs) • Spartans tender $5,142,465

  35. Recommendation The baseline UAC reported to the community of $642 now has validity with confirmed tender prices Final capital project costs and operational costs influence final UAC More conservative view on the growth figures should be taken Worse case scenario (model 6) $841 Expected UAC range ($550 - $642)

  36. Project Timeframe • 8th April 2011 finalise tender negotiations on all contracts • 11th April 2011 Project Manager set up on site • 14th April 2011 next community evening to provide update on contract and meet key people • 18th April 2011 physical works commences on site

  37. Recommendations THAT the Utilities Manager report dated 22 March 2011 regarding Maketu / Little Waihi Wastewater Project Tender Report be received. THAT the tender for the interceptor / grinder pump procurement tender for the Maketu / Little Waihi Wastewater Scheme Contract No 10/1033 from Ecoflow Ltd for the Eone Sewer System for $2,400,000 excluding GST be accepted. THAT Council decline all tenders received for Contract 10/1032 Maketu / Little Waihi Scheme Reticulation and the Chief Executive Officer be authorised to negotiate a schedule of rates contract with the lowest three tenderers and to accept a contract price up to $4.8 million. THAT the design build and operate tender from Spartan Construction Ltd for the treatment plant and disposal field for the Maketu / Little Waihi Wastewater Scheme tender Contract No 10/1030 and 10/1031 for $5,142,465 (subject to final contract negotiations) excluding GST be accepted. THAT the report relates to an issue that is considered significant in terms of Council’s Policy on Significance.

  38. Financial Model * Operating cost reduced by $40,000 ** Full operating cost *** GST now 15% ($721 @ 12.5%) Kelvin

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