Notice of Meeting: I hereby give notice that an ordinary Meeting of the Strategic Growth Committee will be held on:
Date: Thursday 14 May 2020 Time: 10.00 am Meeting Room: Audio Visual Link
Richard Briggs Chief Executive
Strategic Growth Committee Komiti Rautaki Whakatupu OPEN LATE AGENDA
Membership Chairperson Cr D Macpherson Deputy Chairperson Cr R Hamilton Members Mayor P Southgate Deputy Mayor G Taylor Cr M Bunting Cr M Forsyth Cr M Gallagher Cr K Naidoo-Rauf Cr A O’Leary Cr R Pascoe Cr S Thomson Cr M van Oosten Cr E Wilson Maangai J Whetu
Quorum: A majority of members (including vacancies)
Meeting Frequency: Six weekly
Becca Brooke Governance Manager Menetia Mana Whakahaere
12 May 2020
Telephone: 07 838 6727 [email protected] www.hamilton.govt.nz
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 1 of 84
ITEM TABLE OF CONTENTS PAGE 11 Strategic Growth Committee Chairs Report - 13 February 2020 3 12 Hamilton-Waikato Metro Area Wastewater Project 6 13 Future Proof Update 38
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 2 of 84
Committee: Strategic Growth Committee Date: 14 May 2020 Author: Rebecca Watson Authoriser: Amy Viggers Item 11Item Position: Governance Advisor Position: Governance Team Leader Report Name: Strategic Growth Committee Chairs Report - 14 May 2020
Report Status Open
Staff Recommendation - Tuutohu-aa-kaimahi 1. That the Strategic Growth Committee receives the report.
Attachments - Ngaa taapirihanga Attachment 1 - Chair's Report - 14 May 2020.
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 3 of 84
Attachment 1 Attachment
Chair’s Report
Strategic Growth Work Programme
In the last 7-8 weeks, staff working in the strategic growth area have very much been burning the midnight oil – prior to the lockdown, there was already significant urgent work happening on: • H2A, the Hamilton – Auckland Corridor, including o The Metro Spatial Plan o The Three Waters study o The Mass Transit Plan • The Infrastructure Funding & Financing Bill, and related discussions about Rotokauri growth cell • Peacocke • Ruakura developments, including Item 11 o the realignment of Ruakura Rd o initial thinking about R2 and the Ruakura/R2 ‘Spine road’ • Discussions with surrounding Councils about boundaries and joint planning o Waikato District
o Waipa District • Rail service planning, including o The start-up Te Huia service o The Ministry of Transport’s Rapid Rail Business Case o The Metro (Central Waikato) Rail service (linked into the Metro Spatial Plan and the Mass Transit Plan) • Ongoing planning discussions and processes relating to o Several Rotokauri growth cell proposals o Te Awa Lakes o Amberfield o Special Housing Areas
The Covid-19 crisis hasn’t stopped any of that work continuing, but it has added quite a bit with the various economic stimulus packages including the extensive Waikato ‘shovel-ready’ projects proposal and various minor local infrastructure projects.
There have also been a number of important policy documents coming out from the Government, including Transport, Rail and urban development legislation and direction- setting items – all of which we’ve been making comments on behalf of our community.
There is no decision to be made here (and I’ll bet I’ve forgotten some things), but I wanted to remind Councillors of the extreme amount of work happening in this portfolio, and to realise the pressure staff are under.
Ryan and I, as well as other councillors in several of these areas, are working to ensure the voice and views of Elected Members and the community continue to get put forward into all of this work, and to ensure there are proper avenues for discussion and decision-making by the governance wing of Council. Strategic Growth Committee Agenda 14 May 2020- OPEN Page 4 of 84
Meeting Structure
You will have noticed that the meeting is structured in three parts
• Items in the Public Section
• Items in the Public Excluded Section Item 11 Item
• Reports in the ‘For Information’ section
This is a bit of a trial, developed from what the previous Council trialled, and following a suggestion from Governance staff – where reports that are updates on items Council or this Committee have already been dealing with are placed on the agenda ‘for information only’. Rather than having lengthy discussions within the Committee meeting itself, these reports, and staff and myself, will be available for discussion among those interested immediately following the Public Excluded session – those that have other business to attend to won’t need to stay. If any issues are identified during this third section as needing further Elected Member consideration, staff and I will ensure a ‘home’ is found for that – in workshops,
briefing sessions, Committees or the full Council.
Chair’s Recommendation That the Strategic Growth Committee receives the report.
Councillor Dave Macpherson Chair, Strategic Growth Committee Attachment1 Hamilton City Council
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 5 of 84
Item 12
Committee: Strategic Growth Committee Date: 14 May 2020 Author: Jackie Colliar Authoriser: Blair Bowcott Position: Strategic Manager - Position: Executive Director Special Infrastructure, City Projects Development Report Name: Hamilton-Waikato Metro Area Wastewater Project
Report Status Open
Purpose - Take 1. To update the Strategic Growth Committee on recent progress on the Hamilton-Waikato Metro Area Wastewater Investigations. 2. To recommend to the Strategic Growth Committee actions necessary to deliver detailed business cases for Hamilton-Waikato Metro Area Wastewater Treatment solutions with local government, iwi and mana whenua partners.
Staff Recommendation - Tuutohu-aa-kaimahi 3. That the Strategic Growth Committee: a) receives the report; b) delegates authority to the Chief Executive to commit up to $660,000 (based on 50% contribution) to deliver the detailed business case for the Southern Metro Wastewater solution in partnership with neighbouring local authorities; c) notes that operating budget availability in FY19/20 will be used to fund the HCC financial contribution and unspent 2019/20 budget will be transferred across into the FY20/21 Annual Plan using the Chief Executive annual plan submission process; d) delegates authority to the Chief Executive to determine the timing of the detailed business case for the Northern Metro Wastewater Solution and a funding plan for that work and report back to the Strategic Growth Committee; e) approves the governance structure and roles and responsibilities described in the Hamilton-Waikato Metro Wastewater Project Terms of Reference; f) approves the current Future Proof representatives as the governance group representatives for HCC (currently the Mayor and Chair of the Strategic Growth Committee); and
g) delegates authority to the HCC governance group representatives to approve the terms of reference upon establishment of the governance group and including amendments resulting from feedback from other partners.
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 6 of 84
Executive Summary - Whakaraapopototanga matua
4. Technical investigations completed as part of the Waikato Sub-Regional Three Waters project and the Cambridge Wastewater (WW) Project have identified centralised WW treatment facilities as viable options to meet the needs of existing and future settlements within the Hamilton-Waikato Metro Area (“Metro Area”).
5. Delivering detailed business cases (DBCs) using the NZ Treasury Better Business Case Model is 12 Item recommended to identify the preferred Metro Area WW servicing solutions for implementation. 6. The estimated cost to deliver the DBCs for both the Northern and Southern Metro Areas (assuming they are completed in close succession) is $2,100,000 (excluding gst). The estimated to deliver a DBC for the Southern Metro Area only is $1,300,000 (excluding gst). 7. Cost sharing with project partners (i.e. Waipa DC and Waikato DC) is proposed to fund the DBCs. 8. Staff recommend a 50% funding contribution (Approx. $660,000) by HCC to support the Southern Metro Area DBC subject the remaining 50% being funded by partners. 9. Waipa DC has confirmed a financial commitment of up to 50% of the cost of the Southern Metro Area DBC or 25% of the cost of the overall Metro Area DBC (Approx. $660,000). 10. Discussions are continuing with Waikato DC as to how and when they can be a funding partner for these projects. 11. The HCC contribution for the Southern Metro Area DBC can be accommodated within existing operating budgets but will require available budget from FY19/20 to be transferred into the FY20/21 using the CEO annual plan submission process. 12. Staff recommend that authority is delegated to the Chief Executive to determine the timing of the detailed business case for the Northern Metro Wastewater Solution and a funding plan for that work, and report back to the Strategic Growth Committee. 13. A dedicated governance and delivery structure is required to oversee the project. The proposed structure and associated Term of Reference (ToR) for the project have been developed collaboratively with partners (Attachment 1). 14. The ToR sets out the context (including rationale for stand-alone governance), scope, objectives, responsibilities, and membership of each group within the structure and the reporting lines and linkages back to the respective organisations and Future Proof. 15. Key principles used to develop the structure and terms of reference include: • Replicating the Future Proof structure and levels where appropriate i.e. elected member / director level governance; executive level advisory; project delivery layers. • Including the relevant sub-set of Future Proof members and where possible, maintaining common membership between Future Proof Committees and the project committees. • Providing for equal Local Government / Iwi – Mana Whenua representation at each level. 16. Staff recommend that the current Future Proof representatives for HCC are confirmed as the project governance group representatives. 17. The main project deliverables are DBCs for strategic WW treatment facilities for the Metro Area. However, the structure and terms of reference could be adapted to oversee implementation of the preferred WW servicing solutions in the future.
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 7 of 84
18. Staff consider the matters in this report have low significance and that the recommendations comply with the Council’s legal requirements.
Item 12 Background - Kooreo whaimaarama
Waikato Sub-Regional Three Waters Project
19. Elected Members have been briefed and updated on the Waikato Sub-Regional Three Waters project (Sub-Regional 3-Waters Project) regularly since early 2019. 20. The Sub-Regional 3-Waters Project is a collaborative project being delivered through the Future Proof Partnership and is one of several initiatives in the Hamilton to Auckland (H2A) Corridor Plan. The project is being delivered in 3 phases. i. Phase 1: Strategic Business Case, agreed vision and objectives, technical investigations, agreed evaluative methodology, master planning design sprint. ii. Phase 2: Programme Business Case including full technical study, community engagement and alignment with 2021 – 2031 Long Term Plans. iii. Phase 3: Implementation of candidate projects and delivery of priority projects funded through LTPs and other funding mechanisms (e.g. new government funding tools). 21. As noted in the General Managers Reports to the February and May 2020 Strategic Growth Committee meetings, Phase 1 of the Sub-Regional 3-Waters Project is largely complete, and Phase 2 has commenced. 22. The key deliverable for Phase 2 will be a programme business case (PBC) that identifies key 3- waters projects and activities necessary to achieve the agreed programme objectives, including delivering ‘best for river’ outcomes. The PBC will build on the strategic case delivered in Phase 1. 23. The strategic case provides the foundation for development of 3-waters infrastructure solutions for the Waikato Sub-region founded on its overarching vision, which is:
Tooku awa koiora me oona pikonga he kura tangihia o te maataamuri - “The river of life, each curve more beautiful than the last” - a future where a healthy Waikato River sustains abundant life and prosperous communities who, in turn, are all responsible for restoring and protecting the health and wellbeing of the Waikato River, and all it embraces, for generations to come.
Hamilton-Waikato Metro Area Wastewater Assessment 24. As noted at the 16 March 2020 elected member briefing, considerable effort has been put into completing a high-level assessment of WW servicing options for the Metro Area as part of Sub- Regional 3-Waters Project Phase 2 activities. Details of the assessment are included in the General Managers Update Report on Future Proof. 25. Consideration of WW solutions for the Metro Area has been accelerated ahead of other technical work required for the Sub-Regional 3-Waters Project to inform the Cambridge WW short-term consenting project and to support Waipa District Council progress a long-term solution for the Cambridge WW Management with urgency. 26. This high-level WW assessment was a necessary pre-cursor to determine whether the concept of centralised WW treatment facilities warranted further detailed consideration at a project level. 27. The assessment is complete and concluded that centralised WW treatment facilities involving two metro WW facilities (i.e. a northern (existing Pukete site) and southern (new site) centralised facilities) is the preferred servicing concept for the Metro Area and should be considered further.
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 8 of 84
28. This conclusion has been endorsed by the Future Proof Water Policy Group (6 April 2020 meeting) along with the recommendation that this option should be taken forward to detailed
business case (DBC) stage. These recommendations were also noted by the Future Proof Implementation Committee (21 April 2020 meeting). Cambridge Wastewater Project Indicative Business Case
29. The investment decisions associated with the Cambridge WW Treatment Plant are directly 12 Item linked to the Sub-regional 3-Waters Project and the Metro Area WW Assessment. 30. Waipa DC has identified a southern metro centralised WW facility as one of the three short- listed options that they will consider as part of the long-term consenting process for Cambridge1. 31. Waipa DC have directed their staff to undertake a DBC process to determine the most feasible option for Cambridge to be implemented, long term. Identification of the preferred solution and a clear implementation plan for that solution must be completed by December 2020. 32. This target date aligns with Waipa DC short-term consent application for Cambridge WW discharge and seeks to support a long-term solution for Cambridge being delivered within an acceptable timeframe. 33. Serious consideration of a centralised facility requires partnership between local authorities, not only to fund investigations but ultimately to invest in building, operating and maintaining facility. Waipa DC could not feasibly pursue or implement this option alone and are seeking a partnership approach and co-funding to investigate a southern centralised WW solution in earnest.
Hamilton-Waikato Metro Area Wastewater Detailed Business Case (DBC) Project Project Governance, Terms of Reference and Representation 34. Both the Metro Area High Level WW Assessment and the Cambridge WW Indicative Business Case identify centralised treatment facilities as solutions for the Metro Area that should be considered further. Both assessments recommend DBC processes to determine the preferred WW solutions to take forward for implementation. 35. Delivering shared centralised WW solutions will require new infrastructure delivery, funding and governance arrangements. As such, it is essential that appropriate levels of oversight, accountability and transparency are embedded into this project from the outset and maintained throughout. 36. To progress the Metro Area WW DBC Project staff have worked collaboratively with Waipa DC, Waikato DC and Waikato-Tainui to develop a project governance structure and associated Term of Reference (ToR). The ToR are included as Attachment 1. 37. At a high level the ToR sets out: • The scope of the project. • Relevant context and background.
1 The shortlisted options confirmed and endorsed by Waipa DC in December 2019 were: 1. Do Minimum option: Upgrade of Cambridge WWTP and offsetting 2. Option 1: New Cambridge WWTP (Biological Nutrient Removal (BNR) or Membrane Bioreactor (MBR) technology) 3. Option 2: Sub-regional (centralised) WWTP (Cambridge site or new site)
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 9 of 84
• The overall governance structure (including governance group and control group) objectives, roles and responsibilities, membership, meeting frequency and the
Item 12 reporting lines and linkages back to the respective organisations and Future Proof. • The administrative arrangements to support the structure. • Project director and project manager roles and responsibilities. 38. The proposed governance structure has adopted principles to support true partnership and
alignment and cohesion with other Future Proof initiatives: • Replicate the Future Proof structure and levels where appropriate i.e. elected member / director level governance; executive level advisory; project delivery layers. • Include relevant sub-set of Future Proof members and where possible, common membership between Future Proof Committees and Project level committees (e.g. the Metro area WW project) should be maintained. • Regular reporting to the Future Proof Implementation Committee (FPIC) to ensure integration and alignment with other Future Proof initiatives. • Provide for equal Local Government / Iwi – Mana Whenua representation at each level. • Include non-municipal water or WW treatment plant owners where possible • Co-opt membership or commission specialist advisors where there is a clear benefit.
39. The proposed Governance Group is made up of one member and one alternate from each respective organisation. The Governance Group will comprise of elected members/directors and mana whenua representatives. 40. At the time of writing, Waipa DC, Waikato DC, and Waikato RC had confirmed there governance group members: • Waipa DC – Jim Mylchreest (Mayor); Liz Stolwyk (Deputy Mayor). • Waikato DC – Garth Dibley (Water Governance Board Member); Aksel Bech (Deputy Mayor). • Waikato RC (observing members) - Russ Rimmington (Chair) and Kataraina Hodge (Deputy Chair). 41. Staff recommend that the current Future Proof representatives for HCC are confirmed as the Governance Group member and alternate to provide consistency and alignment between other Future Proof Initiatives and this project. 42. The rationale for establishing the project governance structure is to enable the relevant local council partners, Iwi and Mana Whenua to drive delivery of the DBCs and take ownership of the preferred WW solutions, in particular the investment needed to implement the preferred solution. Project Scope, programme, costs and deliverables 43. The main project deliverables are DBCs for strategic WW treatment facilities for the Metro Area. The DBCs will use the NZ Treasury Better Business Case Model to recommend and identify the preferred solutions for implementation. 44. A specialist team of consultants led by Price Waterhouse Cooper2 (PWC) with technical (engineering, science, cost estimating and planning) support from GHD/BECA3 is proposed to
2 The proposed PWC team has considerable experience in writing detailed business cases and providing commercial, financial, governance and strategic advice to central and local government on sensitive and complex infrastructure projects. They are engaged by the Department of Internal Affairs (DIA) to develop a range of innovative funding, financing and delivery structures for planned infrastructure projects in the
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 10 of 84
deliver the Southern Metro Area DBC. PWC and BECA/GHD have provided proposals and indicative cost estimates through the Professional Services Panel procurement process to
deliver DBCs for the both the Northern and Southern Metro Areas. 45. Dedicated project management, stakeholder engagement and mana whenua input is also required to deliver the project.
46. The estimated cost to DBC(s) for both the Northern and Southern Metro Areas (assuming they 12 Item are completed in close succession) is $2,100,000 (excluding gst). The estimated cost to deliver a DBC for the Southern Metro Area only is $1,300,000 (excluding gst). 47. Staff recommend a 50% funding contribution (Approx. $660,000) by HCC to support the Southern Metro Area DBC subject the remaining 50% being funded by partners. Waipa DC has confirmed a financial commitment of up to 50% of the cost of the Southern Metro Area DBC or 25% of the cost of the overall Metro Area DBC (Approx. $660,000). 48. The HCC contribution for the Southern Metro Area DBC can be accommodated within existing operating budgets but will require available budget from FY19/20 to be transferred into FY20/21 using the CEO Annual plan submission process. 49. A clear pathway on the long-term servicing solution for Cambridge is required by December 2020. As such there is considerable urgency on completing a DBC for the Southern Metro Area. It is important to note that the Southern Metro Area DBC must take the overall Metro Area (including the North) into consideration in order to fully assess the servicing options and benefits of centralisation. 50. Ideally, a single DBC would be delivered for the overall Metro Area. However, there is less urgency on a Northern Metro Area DBC and some risk associated with un-necessarily accelerating that work. 51. A Northern Metro Area DBC will leverage off the Southern Metro Area DBC with many common design assumptions and inputs. 52. Staff recommend that the Northern Metro DBC is undertaken in close succession to the Southern DBC. An indicative target of December 2020 is proposed for completion of Southern Metro Area DBC and June 2021 is proposed for completion of Northern Metro Area DBC (subject to funding). 53. To support delivering the Northern Metro Area DBC in close succession to the Southern Metro DBC, staff recommend an acceptable programme and funding plan being developed and reported back to the Strategic Growth Committee. The funding plan would include confirmation of financial contributions from partners including Waikato District Council.
Discussion - Matapaki 54. The Metro Area DBC project will build on the ground work set in the Sub-Regional Three Waters Strategic Case and make progress toward transformative three waters services in the Waikato. Ultimately the objective of the project is to improve water quality, environmental performance, resilience, capability and capacity of critical three-waters infrastructure across the Waikato sub-region.
Hamilton to Auckland (H2A) and are commercial and financial advisors to DIA and Treasury in relation to the Infrastructure Funding and Financing Tools and Legislation.
3 The GHD/BECA team are the incumbent consultants providing technical advice to Waipa DC in relation to the Cambridge WW consenting and upgrade projects as well as the Sub-Regional Three Waters Project. In addition, members of the proposed team are currently involved or leading several projects within the Metro Area including Pukete WWTP optimisaton study and Pukete WWTP Discharge consenting strategy.
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 11 of 84
55. The project will quantify the key benefits of centralised WW solutions vs decentralised solutions which include, but are not limited to:
Item 12 • The potential to unlock both residential, commercial and industrial growth (including wet industry) in the Metro Area. • Investing in new infrastructure to allow for easy capacity upgrades and provide higher quality discharges.
• The opportunity for resource recovery and re-use and more integrated approaches to water, energy and carbon management. • Mitigating affordability challenges through scale, alternative funding and financing tools and larger rating base. • Greater consistency across consenting requirements and ability to provide an integrated approach to delivering best for river outcomes. • Adopting common technology across the sub-region to improve operating resilience. • Ability to attract, grow and retain skilled work force. 56. Completing DBCs for Metro Area will support and inform renewal of the WW discharge consent for the Pukete WWTP which expires in 2027. 57. If the recommendations to commit funding to deliver the project is not approved a significant opportunity to deliver transformative WW infrastructure to support the health and wellbeing of the Waikato River and our communities through centralised WW treatment facilities will be lost. 58. Waipa DC will pursue a stand-alone treatment solution and consent for Cambridge. Servicing needs to smaller communities in the Metro area and overall performance and affordability challenges will be remain. Future development potential will be impeded by WW treatment capacity Options 59. Staff have assessed that there are three reasonable and viable options for the Committee to consider. The options are set out below: • Option 1: Do not progress project at this time. • Option 2: Deliver Southern and Northern Area DBCs in close Succession. • Option 3: Southern Area DBC only and accept that the Northern Area DBC will be delivered at some point in the future. 60. The pros and cons of each option are outlined in Attachment 2. Indicative costs of each option are outlined in the table below: DBC Total project Cost share estimate (incl. 10% contingency) Option 1: $0 Option 2: Northern & Southern Metro DBC $2,100,000 HCC (50%) ~$1,050,000 overall in close succession but with staged with $660,000 committed, and financial commitment subject to remainder subject to appropriate funding plan. appropriate funding plan.
WDC/WDC (25%) ~$526,000 each Option 3: Southern Metro DBC Only $1,320,000 HCC (50%) ~ $660,000
WDC/WDC (50%) ~$660,000
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 12 of 84
61. Waipa DC has confirmed that a 50% funding commitment (up to $660,000) to deliver the
Southern Metro DBC. This commitment provides certainty that the Southern Metro DBC can be delivered. It is preferred that Waikato DC also commit funding to the Southern and Northern Metro Area DBCs as the Waikato District will benefit from the work and their commitment will be needed to implement a centralised solution if they are the preferred solutions identified through the project. 12 Item 62. At the time of writing Waikato DC had confirmed participation in the overall project governance and delivery and acknowledged that they need to be a funding partner. However Waikato DC are still working through details of the timing and quantum of any contribution. 63. Staff recommend Option 2 because it: • Provides a more integrated approach to addressing the overall WW servicing issues facing the Metro Area. • Overall will be more cost and time efficient than delivering separate DBCs for North and South (particularly from a stakeholder engagement, technical services and delivery of final DBC product). • Provides evidence to demonstrate partner commitment to pursuing centralised cross- boundary wastewater solutions needed to support Waipa DC processes. • Provides enough certainty to start the work immediately while seeking an acceptable funding plan for the additional costs to complete the Northern DBC. • Retains the ability to bring the two areas together into a single DBC depending on timing of confirmed funding plan for the North. • Provides flexibility to revert to Option 3 – completing DBC for Southern Metro Area only if an acceptable funding plan cannot be determined.
Financial Considerations - Whaiwhakaaro Puutea 64. The HCC funding commitment required for the Southern Metro Area DBC is $660,000 (based on 50% of the estimated total cost to deliver the project). 65. The HCC contribution to the Southern Metro Area DBC is available through FY19/20 operating budgets. This will be transferred into FY20/21 using the CEO Annual plan submission process. 66. The estimated additional HCC funding commitment to deliver the Northern Metro Area DBC in close succession to the Southern Metro Area DBC is approx. $400,000 (based on 50% of the estimated total cost to deliver the project). 67. Delivering the Northern Metro Area DBC requires a funding plan and programme to be developed. Delivering the full project will require financial commitment from HCC, Waipa DC and Waikato DC. At the time of writing, Waikato DC had acknowledged the need to make a financial contribution but were working through the details of when and how much could be committed. 68. A funding plan and programme for the Northern Metro WW DBC will be reported back to the Committee.
Legal and Policy Considerations - Whaiwhakaaro-aa-ture 69. Staff confirm that the recommendations complies with the Council’s legal and policy requirements.
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 13 of 84
Wellbeing Considerations - Whaiwhakaaro-aa-oranga tonutanga
Item 12 70. The purpose of Local Government changed on the 14 May 2019 to include promotion of the social, economic, environmental and cultural wellbeing of communities in the present and for the future (‘the 4 well-beings’). 71. The Metro Area Wastewater Detailed Business Case(s) will adopt the Treasury Better Business Case Programme Business Case model. The 4 wellbeing’s will be core considerations in delivering the business case in addition to Te Ture Whaimana o te Awa Waikato – The Vision and Strategy for the Waikato River and relevant Iwi Management Plans.
Risks - Tuuraru 72. There are no known risks associated with the decisions required for this matter.
Significance & Engagement Policy - Kaupapa here whakahira/anganui Significance 73. Staff have considered the key considerations under the Significance and Engagement Policy and have assessed that the recommendation(s) in this report has/have a low level of significance.
Engagement 74. Given the low level of significance determined, the engagement level is low. No engagement is required.
Attachments - Ngaa taapirihanga Attachment 1 - Hamilton-Waikato Metro WW Project - Governance ToR Attachment 2 - Hamilton-Waikato Metro WW Project - Options Pros and Cons .
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 14 of 84
Item 12 Item
Attachment1
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 15 of 84
Attachment 1 Attachment
Item 12
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 16 of 84
Item 12 Item
Attachment1
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 17 of 84
Attachment 1 Attachment
Item 12
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 18 of 84
Item 12 Item
Attachment1
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 19 of 84
Attachment 1 Attachment
Item 12
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 20 of 84
Item 12 Item
Attachment1
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 21 of 84
Attachment 1 Attachment
Item 12
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 22 of 84
Item 12 Item
Attachment1
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 23 of 84
Attachment 1 Attachment
Item 12
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 24 of 84
Item 12 Item
Attachment1
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 25 of 84
Attachment 1 Attachment
Item 12
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 26 of 84
Item 12 Item
Attachment1
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 27 of 84
Attachment 1 Attachment
Item 12
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 28 of 84
Item 12 Item
Attachment1
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 29 of 84
Attachment 1 Attachment
Item 12
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 30 of 84
Item 12 Item
Attachment1
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 31 of 84
Attachment 1 Attachment
Item 12
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 32 of 84
Item 12 Item
Attachment1
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 33 of 84
Attachment 1 Attachment
Item 12
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 34 of 84
Item 12 Item
Attachment1
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 35 of 84
Attachment 2 Attachment
Item 12
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 36 of 84
Item 12 Item
Attachment2
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 37 of 84
Item 1
3
Committee: Strategic Growth Committee Date: 14 May 2020 Author: Luke O'Dwyer Authoriser: Blair Bowcott Position: City Planning Manager Position: Executive Director Special Projects Report Name: Future Proof Update
Report Status Open
Purpose – Take 1. To inform the Strategic Growth Committee on recent progress of the Hamilton-Waikato Metropolitan Spatial plan (HWMSP) and the Waikato Sub-Regional Three-Waters Project (3 Waters Project). 2. To provide an overview of the next steps for ongoing detailed transport and 3 Waters business case activities.
Staff Recommendation - Tuutohu-aa-kaimahi 3. That the Strategic Growth Committee: a) receives the report; and b) approves the direction and approach as outlined for the Hamilton-Waikato Metropolitan Spatial Plan (and subsequent transport investigations) and the Waikato Sub-Regional Three-Waters Project contained in this report and its attachments.
Executive Summary - Whakaraapopototanga matua 4. Significant effort has gone in to progressing the Hamilton-Waikato Metropolitan Spatial Plan (HWMSP) (including transport related activities) and the 3 Waters Project since the emergence of the COVID-19 pandemic. 5. An update on these projects was reported to the Future Proof Implementation Committee (FPIC) at a meeting held on 21 April 2020 (from page 22). 6. At that meeting FPIC resolved to endorse the approach and direction being taken to the development of the draft HWMSP as contained in the presentation. 7. At that same meeting, FPIC noted the direction being taken for the 3 Waters Project to progress an option to convey all communities to a northern and southern centralised facility (i.e. a new site) as the preferred long-term wastewater concept for the HWMSP area along with progressing a southern area business case. 8. Notwithstanding the impact that COVID-19 has had on the project, the HWMSP team continues to work at pace to prepare a draft plan for consideration by FPIC on 9 June 2020.
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 38 of 84
9. If endorsed by the FPIC on 9 June 2020, the spatial plan will then be reported to Cabinet in July 2020 for support while also being released for stakeholder and community feedback before it
is finalised throughout the second half of 2020. 3 10. Staff consider the matters in this report are of low significance and that the recommendations comply with the Council’s legal requirements.
Background - Kooreo whaimaarama 1 Item 11. The Future Proof Partnership was reconstituted on 15 August 2019 and now includes new partner representatives from the Crown (including Ministers Twyford and Mahuta), Auckland Council, Franklin Local Board, and Auckland/Hauraki Iwi to reflect the Crown’s commitment to the Hamilton to Auckland Corridor Plan that was completed in 2019. 12. Since the reconstitution of that partnership, the focus of effort has been on implementing the Hamilton to Auckland Corridor Plan, with emphasis on developing a draft Hamilton-Waikato Metropolitan Spatial Plan (including transport related activities) and a Waikato Sub-Regional Three Waters Project. 13. The Hamilton-Waikato wider metro area is growing fast, with the wider sub-region having the potential of growing to around 500,000 people. The result is an emerging metropolitan area that sits across local government boundaries. 14. Through the Hamilton to Auckland Corridor Plan (H2A), which sits under the Future Proof partnership, there is an opportunity for partners to work together to support and unlock the potential of this area, through this joint Metro Spatial Plan. 15. The Plan will create a shared 100-year vision and spatial framework for the Hamilton-Waikato area, with a 30-year plan for priority development areas and enabling investment. It will identify: • Areas for protection and restoration that are ‘no go’ areas for development • Core transport corridors • Priority development areas, where (if required) new planning, funding and financing tools could be piloted • Social and network infrastructure requirements. 16. In simple terms, if 500,000 people lived in this sub-region in 100-years, what would that look like, where would they live and how would they get around. 17. The HWMSP will help determine where and how we fund some of the infrastructure needed to support this scale of development including detailed plans for three waters and transport. 18. This project is transformational in the fact that it requires a joint effort across central Government, local government and iwi and will likely require new planning and funding tools to implement.
Discussion - Matapaki Hamilton to Auckland Corridor Plan 19. Since the commencement of the COVID-19 pandemic the Hamilton to Auckland Corridor Plan focus has been on identifying and nominating potential programmes of work to assist with economic stimulus recovery efforts for the Waikato in partnership with the Government’s efforts to stimulate the economy. These are summarised as nine focus areas for the Hamilton- Auckland Urban Growth Partnership.
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 39 of 84
20. A separate report on these activities and the nine focus areas has been prepared and is included as an individual item for the agenda for this Strategic Growth committee meeting.
Item 1 Hamilton-Waikato Metro Spatial Plan 21. The HWMSP seeks to deliver on the central government’s urban growth objectives by exploring how the metropolitan area centred around Hamilton can develop an urban form
3
based around a Rapid/Frequent transit network, that protects and enhances the environment, improves wellbeing and ensure there is enough land for housing and jobs and high-quality urban development for the long term. 22. An update on the project was reported to the Strategic Growth Committee meeting held on 13 February 2020. In addition, updates on the project have been provided formally in 2019 and early 2020 as follows: • 29 March 2019 – Growth & Infrastructure Committee Report (HWMSP Terms of Reference approved) • 18 June 2019 - Growth & Infrastructure Committee GM Report • 8 August 2019 – Council Report • 27 August 2019 - Growth & Infrastructure Committee GM Report • 4 December 2019 – Elected Member Briefing (HWMSP and Three Waters) • 13 February 2020 – Strategic Growth Committee GM Report • 16 March 2020 - Elected Member Briefing (HWMSP and Three Waters) 23. In addition to these updates, there have been informal discussions with Elected Members on the matters covered in this report. 24. Since the last update report on 13 February 2020, significant progress has been made on refining the key concepts and spatial elements that will underpin the draft HWMSP and a detailed summary was presented to FPIC on 21 April 2020 (from page 22). 25. The sections below outline the following: • HWMSP project and communications approach • An overview of the study area • The HWMSP approach to growth • Impact of COVID-19 • HWMSP key elements, document structure and Core Spatial Elements • Emerging settlement pattern • Transport network and urban form • Implementation, deliverables, and next steps HWMSP Project and Communications Approach 26. Not only is the HWMSP transformational in nature, it is also a dynamic, iterative and fast- moving project with many complex elements and various key stakeholders with needs to address. 27. The momentum and workload has rapidly increased in the last few weeks as the project team focuses on a key milestones for the project, those being a June 2020 Future Proof Implementation Committee (FPIC) meeting and a July 2020 Cabinet reporting requirement deadline. It has been a challenging but critically important task to strike a balance between keeping all key stakeholders appraised, updated and involved, as well as giving the project team the space to draw all the information together to enable the outputs of the project to be realised.
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 40 of 84
28. As the HWMSP is a partnership project between the Government, Iwi and Council’s, it is important to respect the cross-party project governance structure in place. This is primarily a
joint steering group, where documentation and all supporting collateral and imagery are shared and agreed before this can be made public through FPIC and Council agendas. 3 29. As part of this process, each partner will share and discuss latest material with their respective organisations (with relevant Ministers, Chairs, Boards, Elected Members and Senior Management staff) who will collectively provide a range of feedback, which is fed back to the 1 Item HWMSP Project Steering Group for cross-party discussion and potential amendments may be made. This is an agreed process which applies to all partners. To release material publicly before agreement at the Project Steering Group would jeopardise the whole partnership and risk incorrect or highly sensitive information being made public. 30. The material referred to in this report has been agreed through the HWMSP Project Steering Group and was reported for FPIC on 21 April 2020. A lot of valuable feedback was provided on the information at this meeting and the project team have been working at pace to respond to that feedback. It is important to note that due to the rapid pace of this project, information could be seen as having “moved on”, but the project team are working hard to keep key stakeholder engaged and informed. 31. Furthermore, to ensure that the HWMSP reflects the very latest input and collective view of HCC Elected Members and staff, the project team will be conducting regular public-excluded discussions with Elected Members (individually, collectively or as a sub-group as per Elected Member preference), on the latest documentation and supporting collateral over the coming weeks. This will enable Elected Members to give regular valuable feedback and input for the project team to share with the HWMSP Project Steering Group. 32. To commence this approach, there is a separate public-excluded supplementary report to this agenda, which includes latest versions of imagery to support the HWMSP. The reason this is in public-excluded is because this information has only just been produced (updated and circulated Sunday, 10 May 2020) and is in the process of being considered by each partner, with the feedback yet to be discussed and agreed by the Project Steering Group. 33. All feedback from HCC Elected Members to date has been reflected back into the HWMSP document. However, as this is a cross-party project, we can only influence what is considered and amended in the HWMSP, as we do not solely control the contents of this document. 34. The HWMSP is following an agreed format and template with “look and feel” prescribed by the Government officials. We are aware that some of the HWMSP collateral and imagery is very technical and difficult to comprehend and engage with. In some cases, the geographical context is missing and there may be an opportunity to replace or supplement some of the current material with simple diagrams. Feedback we have received includes: • The material favours a technical audience, and overlooks the need to be understood by the public, Elected Members and Ministers • Presentation and flow of some material is missing some baseline context first • Simplicity is critically important; how can we convey a simple story for key messages (especially for the transportation maps) • Support for a layered approach to presenting information – the Blue/Green network single page image/story is a good example where you can drop down each layer for more information • Can we produce supplementary material or a separate document for Elected Member public engagement that sits alongside the technical images and maps needed for the Cabinet/Ministers and Government agencies requirements – some of this material may also be appreciated by Cabinet/Ministers also
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 41 of 84
35. To address this feedback, we will involve our communications experts to work with the project team to produce a range of simple, explanatory and visual collateral to share with Elected
Item 1 Members and the public. These can accompany the HWMSP and may also include: • An executive summary style document similar to that produced for the Future Proof area ‘Shovel Ready Projects’ proposal, which can be found here.
3
• A set of FAQ’s and key messages to ensure that the same message is being understood shared by all, both internally and externally • Internal stakeholder workshops and lunchtime drop-in sessions to bring key staff and Elected Members along on the journey to understand the key elements of the Plan and how it might affect different areas of the organisation • Intranet articles and displays in common areas with opportunity for feedback and comments • A one-pager/flyer with the key HWMSP themes that form the Plan. 36. It is also important to note that there is an agreed communication and engagement plan in place and that there will be significant time invested over the coming months to ensure that the public, HCC staff and Elected Members are fully informed and engaged with the HWMSP and that there is an opportunity for feedback and comment. This will be taken on board and potentially fed into the final version of the Plan, which will be developed over the remainder of 2020. Overview of the HWMSP study area 37. The Hamilton-Waikato Metropolitan area is an urban sub-region of the Waikato. 38. Hamilton is at the core of this metropolitan area which extends from Taupiri in the north to Te Awamutu and Cambridge in the south. 39. Hamilton has significant connections and interdependencies with the surrounding towns and villages in the metropolitan area, as do these smaller settlements with Hamilton and with each other. These connections include transport and waters infrastructure, and daily movement of people for jobs, education, health services, and for cultural, community, entertainment and recreational pursuits. 40. The extent of the Hamilton-Waikato Metropolitan area has been determined on the following basis: • An acknowledgement of the interconnectedness of the settlements within in the metropolitan area; • A reflection of a desire amongst Future Proof partners to plan for this area in a in boundary-less way. • It builds and extends upon existing spatial analysis such as that done for the National Policy Statement for Urban Development Capacity (NPS-UDC) where recent efforts by the Future Proof partners were made to think about the area as one larger urban system comprised of distinct yet interdependent parts for the purposes of determining land supply and demand for housing and employment • The area is consistent with the Stats NZ definition of the Hamilton Urban Area 41. Despite the above, the metropolitan area is not a hard boundary. That the HWMSP area sits in broader upper North Island context and linkages to other towns and regions (for example, to Morrinsville, Huntly, Auckland and the Western Bay of Plenty) is acknowledged. Additionally, the HWMSP recognises that over the long term the growth of towns at the edges of the metropolitan area may not always align with the study area.
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 42 of 84
Approach to population growth in the HWMSP
42. The HWMSP takes a longer-term scenario approach to population growth rather than relying
solely on a single set of population projections. 3 43. For the HWMSP area Future Proof forecasts prepared by the National Institute for Demographic and Economic Analysis (NIDEA) have been relied on to plan for future growth
over a 30-year period. The work prepared by NIDEA has informed our existing planning and 1 Item investment framework since 2014 and indicates that future population growth in the metropolitan area is forecast to be somewhere between 300,000 and 380,000 people to 2050. 44. The HWMSP builds on the existing NIDEA forecasts for population and extends it by planning for an urban system if the population was to reach 500,000 people for the area that is significantly greater than that for HCC. 45. While there is uncertainty as to when, how and what rate the HWMSP area could reach this number, at some point the HWMSP area could grow over the long term and reach this total. 46. As such, the approach is one that takes a much longer-term view on growth (i.e. a 100+ year outlook), noting that a future state population is not a target. 47. Rather, by thinking and planning in these terms, we are giving ourselves a chance to create an urban structure that provides a road map that will enable future decision makers to have the chance to avoid the mistakes made in other larger centres where planning horizons were focused on shorter term time scales. In practical terms this means that critical future corridors can be identified and protected, green belts and “blue/green” networks planned years in advance and boundaryless planning and investment for core network infrastructure can occur. HCC approach to forecasting for local planning and investment 48. It is important to note that despite the above approach to the HWMSP, HCC continues to rely on the work prepared by NIDEA to inform our detailed Long-Term Plan (LTP) and infrastructure strategy at a local HCC level. 49. This is important as the Local Government Act 2002 requires Council’s to rely on projections for the following key Council documents, which are informed by forecasts such as the ones prepared by NIDEA as the level of certainty and time scales involved are different to those informing the development of the HWMSP. As such, forecasts such as those prepared by NIDEA inform statutory documents prepared by HCC, including but not limited to: • Our Long-Term Plan - where information on capital expenditure to meet additional demand for each council activity • The Financial Strategy – where the expected changes in population and the use of land in the district or region, and the capital and operating costs of providing for those changes is required to be understood • An Infrastructure Strategy – which must outline the most likely scenario for the management of infrastructure assets over the next 30 years in response to a number of matters including growth. How does the HWMSP address recent COVID-19 related impacts on the economy? 50. At the time of writing this report the scale of impacts that COVID-19 will have on the short- term growth for New Zealand and the HWMSP area generally are uncertain. While there will be undoubtedly significant impacts on economic activity, the scale and duration of these impacts are not known. 51. The project team acknowledges this and where possible will incorporate detailed analysis into the HWMSP as it progresses from a draft to a final document and adapt the draft where needed.
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 43 of 84
52. Notwithstanding the above, the HWMSP takes a long-term view on growth. The HWMSP identifies the key spatial elements and transformational outcomes that are enduring and will
Item 1 still be relevant even if growth slows over the short-term. 53. The key issues the HWMSP seeks to address, and the core focus of the plan remain relevant - that is to create competitive urban land markets to bring down the price of urban land;
3 creating more compact urban forms across the HWMSP area which in turn supports the creation of transformational multi modal transport networks to give our communities the mobility that they need and to allow transport networks to accommodate growth pressures without the chronic congestion. What are the key elements informing the HWMSP and its document structure 54. The development of the draft HWMSP is informed by the objectives of the Government’s Urban Growth Agenda and by the direction of the Hamilton to Auckland Corridor Plan. 55. As one of four spatial planning initiatives in New Zealand, the HWMSP plan structure and content has been developed to provide a degree of consistency that assists Central Government investment and co-ordination. The structure of the draft HWMSP includes:
Document part Content
Part 1 – Executive summary and Vision, present state, opportunities and challenges, the context need for the plan
Part 2 – Desired future state Anticipated growth, objectives, targets / Key Performance Indicators (KPIs)
Part 3 – Key spatial maps Maps indicating key spatial features of the HWMSP area, including environmental attributes, blue/green network, rural areas, key transit networks, strategic transport corridors, centres and development areas
Part 4 – Implementation Key implementation actions (including relevant Crown Infrastructure Partner submissions)
Core spatial elements 56. The draft HWMSP will contain maps and commentary on each of these core spatial planning elements outlining its importance to metropolitan planning, and key aspects that have influenced the emerging spatial form for the HWMSP area. These core elements include: • Waahi Toitu – Waahi toitu represent areas of environmental significance and include both protected areas (that is, areas currently, planned or intended to be protected from urban development) as well as constraint areas (that is, areas where hazards, risks or other aspects are deemed to make future urban development in the foreseeable future either unfeasible and/or undesirable) • Blue/Green elements - The blue/green spatial framework incorporates and integrates key elements such as wetlands, riverbeds, riparian corridors, significant biodiversity sites, habitat corridors, reserves, Department of Conservation land, parks, significant gardens, playgrounds, urban areas with high degree of tree cover, walking tracks and routes, cycling tracks, cycleways, bridal tracks, protected landscapes and viewshafts, and other key elements such as buffer zones.
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 44 of 84
Emerging settlement pattern
57. The emerging settlement pattern builds upon the success of the Future Proof strategy and
includes the following features 3 • A large urban core comprising of Hamilton. The Central City continues as the regional centre for the HWMSP area (for both employment and increasingly residential),
supported by metropolitan centres such as Te Rapa and Chartwell. Residential 1 Item development will need to be denser over the long term in greenfield areas such as Peacocke and Rotokauri (and future ones such as R2 and Ht1) • A focus on developing transit-oriented areas at Te Rapa, Frankton, Chartwell, the University, and Fairfield • The partial repurposing of industrial land at Ruakura to deliver on iwi aspiration and to provide additional housing capacity • Key employment nodes at Hautapu, Hamilton Airport, Ruakura, Horotiu / Te Rapa and Taupiri • Ongoing growth and development of towns such as Ngaruawahia, Te Awamutu and Cambridge (and Morrinsville, noting it is not part of the HWMSP), strongly linked to Hamilton through improved transport connections. Transport network and urban form 58. The progress of the transport work as of early April 2020 is indicated in the maps and diagrams included in the presentation to the 21 April 2020 FPIC meeting (from page 22). Since that time there has been ongoing analysis and development between HCC, Waka Kotahi New Zealand Transport Agency (Waka Kotahi) and the Waikato Regional Council (WRC) to further develop and refine the transport elements of the HWMSP, reflecting feedback from FPIC and also discussion following FPIC with HCC Elected Members. 59. The April 2020 progress update to FPIC includes the key routes connecting the identified future growth and renewal areas in the HWMSP area. 60. Key transport moves in the maps and diagram presented to FPIC include: • The maps provided show a network diagram of transport services. The diagram does not specify modes, and both rapid or frequent services could be provided on road or rail. • An indication of rapid and frequent service level locations. These are both frequent and fast services supporting and connecting areas of higher density urban form, with a significantly higher level of service than standard commuter or coverage-based services. Rapid is a higher service level than frequent. • Hamilton-Auckland inter regional rail service is shown terminating in the long term in the Hamilton Central City. Dashed line to east recognises future potential extension to Tauranga. Rapid transit connection in an L (Rapid L)- from Ngaruawahia to Frankton then east to Ruakura, with stops at Ngaruawahia, Rotokauri, Frankton, CBD, and Ruakura • Frequent public transit connecting remainder of future growth and renewal areas. • Note there is a frequent service proposed connecting the same nodes as the “Rapid L” but extending further, for example to Huntly. This serves a corridor development purpose, e.g. connecting to businesses along the Te Rapa strip.
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 45 of 84
• Cambridge, Te Awamutu and Huntly (and Morrinsville, noting it is not part of the HWMSP) served by frequent service – still potential to be a 10-15-minute frequency of
Item 1 services. • Frequent service through Peacocke to airport to serve airport area. 61. The proposed network diagram includes interregional transport as well as metro scale rapid 3
and frequent networks describing the future vision end state. The staging, phasing and mode will be determined through ongoing processes and updates. 62. A base assumption of the HWMSP is that significant improvement to walking and biking infrastructure and a supporting local public transport network would be required in all urbanised areas for success. This detailed transport network is the foundation for developing future frequent and rapid networks by delivering the requirements for the first and last mile of trips, and so its delivery will be required as part of the first tranche. Due to the fine-grained nature of this information, this network is very difficult to illustrate in a long-term scenario by mapping beyond capturing metro-scale connections. 63. There is significant alignment between current planned improvements for biking networks and HWMSP objectives particularly for Hamilton City, that will form a strong foundation to modify existing or develop new delivery programmes. The HWMSP will provide clear principles to guide development of these biking networks to ensure alignment and appropriate level of service. 64. A future transport network schematic is being developed and will be included in the HWMSP draft that identifies other strategic transport corridors including strategic arterials and biking routes at a metro scale. 65. To support the ongoing transport work, a background technical note as part of the methodology and ‘why story’ is being produced to support additional information needed for business case purposes. 66. Given the particularly detailed and technical nature of the transport network and modal shift changes proposed, following this meeting staff will arrange further opportunities for Elected Members to understand, test and discuss this through drop in sessions, feedback discussions or one-on-one conversations. Implementation 67. The implementation section of the draft HWMSP will include key actions necessary to see change occur over the short to long term including (but not limited to): • Progressing planning framework amendments that are necessary to support the emerging development pattern. • Planning and urban design investigations for transit-oriented development locations. • The identification of the first tranche of projects and investigation work required to deliver on the transport elements of the plan, including walking and biking, improvements to current public transport network, corridor protection. • The opportunities to apply new planning and funding tools to deliver the HWMSP.
What is being delivered for 9 June 2020 68. The content being delivered for 9 June 2020 FPIC meeting includes a draft spatial plan, implementation framework and supporting technical appendices.
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 46 of 84
Next steps
69. If endorsed by the FPIC, the spatial plan will then be reported to Cabinet for support while also
being released for stakeholder and community feedback before it is finalised throughout the 3 second half of 2020. 70. In parallel with the completion of the draft HWMSP, ongoing business case activity in the
second half of 2020 for transport and three waters will remain a priority. 1 Item Relationship between the HWMSP and ongoing transport implementation in line with Waka Kotahi (NZTA) processes 71. The HWMSP provides the strategic spatial plan for the metropolitan area and provides the preferred transport network to support growth, productivity and sustainability in the HWMSP area over the long term. 72. The HWMSP forms the strategic business case for subsequent business case processes necessary to substantiate investments from investment partners including HCC and Waka Kotahi (NZTA). 73. Consequently, to further develop the level of detail necessary to support transport infrastructure investment required to support future land use changes, a key implementation action of the HWMSP will be to continue developing the transport story programme business case (PBC). 74. The Transport Story (PBC) takes the HWMSP outputs and will develop the specificity required to support investment decisions at a programme business case level. The relationship between the HWMSP and the identification of core transport corridors (‘The Transport Story’) is illustrated below.
75. The approach on working on this business case was outlined in the last report to this Committee on 13 February 2020. Staff continue to work on the first part of the business case (the strategic case elements) which is anticipated to be completed by the end of June 2020, which then forms part of the Transport Story PBC.
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 47 of 84
Waikato Sub-Regional Three Waters Project 76. An overview of Strategic Water matters was provided at the Elected Member Briefing on 16
Item 1 March 2020. The briefing material is included as Attachment 1. 77. The briefing was to provide an overview of and discussion on:
3 • Strategic Water Maters (National, regional and local context) • HCC responses to national and regional industry water reform and changes • Waikato Sub-Regional Three Waters Project • HCC Connections and Charging for Three Waters Policy 78. As noted at the 16 March 2020 briefing, Phase 1 of Waikato Sub-Regional Three Waters Project (delivered over the last 18 months) is largely complete. The Strategic Business Case, a key Phase 1 deliverable, is complete and available online. 79. Phase 2 of the project (the detailed technical work) has been initiated to support the overall corridor plan and associated projects and initiatives (including long term planning processes). 80. Key Phase 2 activities currently underway include: • Development of detailed project management plan and programme, communications strategy and engagement plan, procurement strategy and professional services briefs. • River Communities (Huntly to Te Kauwhata/Meremere) Three Waters Strategy Investigations. • HWMSP Area Wastewater Servicing Feasibility Assessment. 81. Funding pledged by local partners (Hamilton City Council, Waikato District Council, Waikato- Tainui, Waipa District Council and Watercare) is being used to progress Phase 2. The local funding is sufficient to deliver the project activities out to around June/July 2020, however, completion of Phase 2 as currently scoped is dependent upon central government funding (or an additional source of funding) being secured. 82. The $1M co-funding application submitted to the Voluntary change to three waters service delivery fund in December 2019 has not been accepted. Feedback from Department of Internal Affairs (DIA) advised that this decision was reached because the application does not strictly meet the criteria of the fund as set by Cabinet. Whilst not accepted, the application has not been declined, which can be considered relatively positive. The relevant Ministers have directed staff to consider other sources of government funding for this work. Current advice from DIA staff is that the application and potential alternative sources of funding will be re- considered by the Ministers in late May/mid-June. The $1M co-funding request has also been included as a candidate project through the Hamilton to Auckland (H2A) corridor/MHUD stimulus package. The DIA is aware of this parallel process. 83. Several other transformational 3-waters projects identified in Phase 1 have also been included as candidate projects through the H2A corridor/MHUD stimulus package. Metro Area Wastewater Servicing Solution 84. As noted at the 16 March 2020 briefing, one of the key Phase 2 activities currently underway is a high-level assessment of Wastewater Servicing options for the HWMSP area (i.e. the area bounded by Taupiri in the North; Whatawhata in the West; Te Awamutu/Cambridge in the South and Tauwhare in the East). The focus on wastewater servicing for the Metro Plan area ahead of water and stormwater is to inform the Cambridge wastewater consenting projects. 85. A number of workshops involving project partners, including Iwi and mana whenua, and technical experts, identified wastewater servicing options and criteria to be used in the assessment. An initial list of potential servicing options (i.e. 13 concepts and 120 variations) ranging from fully centralised facilities and combinations were identified. Many of the combinations were minor variations (i.e. changes in service areas) on a set of common
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 48 of 84
themes/concepts. For the purpose of this assessment, the initial list of concept options was
consolidated to the six Wastewater Servicing Concepts included in the final assessment.
86. The final assessment has identified the option involving two metro wastewater facilities (i.e. 3 northern (existing Pukete Site) and southern (new site) centralised facilities) and retention of the Te Awamutu Plant as the preferred wastewater servicing concept for the existing and future settlements within the HWMSP. This conclusion has been endorsed by the Future Proof Water Policy Group (6 April 2020 meeting) along with the recommendation that this option 1 Item should be taken forward to detailed business case stage. 87. A summary of the assessment is attached as Attachment 2 for your information. 88. The next steps to progress the preferred concept are to: • Seek endorsement of the high-level assessment from the relevant partners • Establish appropriate project governance and delivery structures to deliver a detailed business case(s) for Metro Area Wastewater facilities. • Initiate Metro Area Wastewater project including confirming project scopes, project management structures, project plan and programme, establishing and securing project budgets. 89. The above matters are the subject of a separate paper to this Strategic Growth Committee.
Financial Considerations - Whaiwhakaaro Puutea 90. There are no financial implications in relation to the information provided in this report.
Legal and Policy Considerations - Whaiwhakaaro-aa-ture 91. This report is for information purposes only.
Wellbeing Considerations - Whaiwhakaaro-aa-oranga tonutanga 92. The purpose of Local Government changed on the 14 May 2019 to include promotion of the social, economic, environmental and cultural wellbeing of communities in the present and for the future (‘the 4 wellbeings’). 93. The subject matter of this report has been evaluated in terms of the 4 wellbeings during the process of developing this report as outlined below. The recommendations set out in this report ate consistent with that purpose. The recommendations set out in this report are consistent with that purpose 94. There are no known social, economic, environmental or cultural considerations associated with this matter.
Risks - Tuuraru 95. There are no known risks associated with the decisions required for this matter.
Significance & Engagement Policy - Kaupapa here whakahira/anganui Significance 96. This report is for information purposes only.
Engagement 97. This report is for information purposes only.
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 49 of 84
Item 1 Attachments - Ngaa taapirihanga Attachment 1 - Three Waters Elected Member Briefing 16 March 2020
3 Attachment 2 - Overview and Summary of Metro Spatial Area Wastewater Assessment .
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 50 of 84
3
Item 1 Item
Attachment1
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 51 of 84
Attachment 1 Attachment
Item 1
3
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 52 of 84
3
Item 1 Item
Attachment1
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 53 of 84
Attachment 1 Attachment
Item 1
3
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 54 of 84
3
Item 1 Item
Attachment1
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 55 of 84
Attachment 1 Attachment
Item 1
3
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 56 of 84
3
Item 1 Item
Attachment1
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 57 of 84
Attachment 1 Attachment
Item 1
3
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 58 of 84
3
Item 1 Item
Attachment1
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 59 of 84
Attachment 1 Attachment
Item 1
3
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 60 of 84
3
Item 1 Item
Attachment1
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 61 of 84
Attachment 1 Attachment
Item 1
3
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 62 of 84
3
Item 1 Item
Attachment1
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 63 of 84
Attachment 1 Attachment
Item 1
3
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 64 of 84
3
Item 1 Item
Attachment1
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 65 of 84
Attachment 1 Attachment
Item 1
3
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 66 of 84
3
Item 1 Item
Attachment1
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 67 of 84
Attachment 1 Attachment
Item 1
3
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 68 of 84
3
Item 1 Item
Attachment1
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 69 of 84
Attachment 1 Attachment
Item 1
3
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 70 of 84
3
Item 1 Item
Attachment1
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 71 of 84
Attachment 1 Attachment
Item 1
3
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 72 of 84
3
Item 1 Item
Attachment1
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 73 of 84
Attachment 1 Attachment
Item 1
3
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 74 of 84
3
Item 1 Item
Attachment1
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 75 of 84
Attachment 1 Attachment
Item 1
3
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 76 of 84
3
Item 1 Item
Attachment1
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 77 of 84
OVERVIEW AND SUMMARY OF METRO SPATIAL AREA WASTEWATER ASSESSMENT
Attachment 2 Attachment Summary of Assessment The assessment process consisted of three key steps: 1. Option and Criteria Development 2. Technical Inputs 3. Options Assessment.
The first and last step involved workshops with key stakeholders and partners to ensure all
relevant feedback and insights were captured as part of this assessment. A brief summary of the steps is outlined below.
Step 1: Options and Criteria Development This step consisted of development of a Long and Short list of potential servicing options for the area and a structured process to transition from the long, to the short list. Some 120 different variations of servicing existed in the long list. To transition from long to short list a simple consolidation process4 was followed and a short list of 6 finalised options were developed. The short list and process to develop the list was the subject of the first hui held for the project to ensure endorsement and support of the process and outcomes. The criteria outlined within the Option 3 description below, were also developed through this step.
Item 11 Step 2: Technical Inputs This step consisted of development of technical information to enable an assessment of the short- listed options to be undertaken. The technical information required consisted of the following data sets: • Population and growth assumptions: Two growth scenarios were considered; a 2045 growth scenario and a 100+ year growth scenario • Plant size standardised treatments: Three standardised plants were developed (small, medium and large). Each sized plant has its own quality and size assumptions. • Conveyancing requirements: The location and length of conveyance was determined in order to inform the overall costs of the options. • Costs: Both capital and operational costs were determined for each option.
The technical information was collated using the best available data sets and growth assumptions at the time. Plant discharges were based on what is considered existing Best Practise examples (i.e. Pukekohe WWTP) and included energy recovery and treated water reuse amongst other initiatives, applied in later years. Costs included both capital and operational and for comparison purposes a net present value (NPV) has been calculated over 30 years for the operational costs at the 2045 and 2120 flows.
Step 3: Options Assessment This step consisted of undertaking an assessed using an MCA (Multi Criteria Analysis) which uses a defined set of criteria to distinguish between options. The assessment criteria were developed by the Project Team and refined based on stakeholder feedback gathered from the first Hui. The overarching assessment criteria categories included: • Natural Environment Improvement Capability • Public Health Protection • Cultural Benefits/Impacts • Flexibility, Scalability and Risk
4 A full description of this consolidation process is outlined in the attached Executive Summary document.
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 78 of 84
• Whole of life costs • Sustainability
Each of the categories included a number of individual measures and factors which would contribute to its overall score of that criteria. A detailed description of the above criteria is contained in the attached summary document. The project team undertook an initial MCA assessment and workshopped the outputs at the MCA Hui held on the 10th of March. Feedback 11 Item and insights from this Hui have been incorporated into the final MCA.
Outcome of Assessment Based on this high-level feasibility study and associated multi-criteria analysis (MCA), Option C: Convey all communities to a northern and southern centralised facility (new site) has the greatest potential benefit and the lowest potential risk and impact. This aligns well with the work undertaken by Waipa District Council through an Indicative Business Case for the Cambridge Wastewater Treatment Plan.
Whilst Option D also sees significant benefits over the other options, Option C utilises a new more central Greenfield site, which is more flexible and adaptable and reduces the conveyance risks. It will, however, require additional consenting requirements. An overview of Option C is shown
below: Attachment2
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 79 of 84
Conclusion The wastewater assessment presents a structured process to determine the most feasible option Attachment 2 Attachment for providing wastewater solutions within the Metro Spatial Area that aligns with the vision and objectives of the Sub-Regional Three Waters Project. The outcomes have been reached following a process that aligns with the BBC process. The conclusions reached also aligns with the outcomes of the IBC work undertaken independently by Waipa District Council. Error! Unknown document property name.
Item 11
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 80 of 84
Attachment 1: Summary MCA Output
Criteria Option A (BAU) Option B Option C Option D Option E Option F
2 0
3 1 Minor improvements to -3 Quality discharge 2 Quality discharge Moderate improvements discharge quality. Natural Environment Very poor environmental improvements, removal of Quality discharge improvements, removal of to discharge quality, Additional three sites Improvement Capability outcomes if nothing upstream discharge improvements, Creation of upstream discharge additional discharge become hazardous and changes location, Creation of additional hazardous site location location required three additional discharge additional hazardous site
points Item 11 Item 2 -1 3 3 3 3 Improvements to public Some potential negative Public Health Protection Improvements to public Improvements to public Improvements to public Improvements to public health protection, still health impacts due to risk health protection health protection health protection health protection requires reliance on septic of septic tank failure tanks
Two hui were undertaken on the 26th February and the 5th March to discuss the alternative options and assessment of options. Iwi groups in FF attendance were generally supportive of the current assessment of the options. There was emphasis placed on proceeding with an option which Cultural Benefits / Impacts Does not meet Te Ture provides best for awa outcomes and providing a solution which will benefit future generations. Some iwi and mana whenua indicated a strong Whaimana preference for centralised treatment facilities. Some also sought to maintain a catchment-based approach based on the source of waste generated.
3 2 1 -1 -2 Frees up space at Pukete Frees up Pukete facility and Creates some growth Does not provide significant FF Pukete has limited build Flexibility, Scalability and Risk facility and provides provides some growth opportunities, growth opportunities, Will not meet future out capacity, high risk of significant growth opportunities, higher risk Ngaruawahia may have particularly industrial growth requirements septicity
opportunities of septicity issues some capacity limitations growth.
Not Scored Not Scored Not Scored Not Scored Not Scored Not Scored High capital costs. OPEX High capital costs. OPEX High capital costs. OPEX Lower capital costs. OPEX Lower capital costs. OPEX Lowest capital costs. OPEX Whole of life costs costs similar across all costs similar across all costs similar across all costs similar across all costs similar across all costs similar across all options. Costs spread over options. Costs spread over options. Costs spread over options. Costs spread over options. Costs spread over options larger population base. larger population base larger population base smaller population base smaller population base 2 -3 2 3 Potential for reuse and use 1 1 Significantly limited Potential for reuse and use Potential for reuse and use of sustainable Limited potential for reuse Limited potential for reuse sustainability of sustainable of sustainable technologies, can attract and use of sustainable and use of sustainable Sustainability opportunities, currently technologies, build out technologies, can attract skill and labour technologies, more difficult technologies, more difficult Attachment2 difficult to retain and capacity limits ability to skill and labour opportunities. Ability for to source enough labour to source enough labour attract required skill and construct reuse opportunities industrial reuse is limited for operation of facilities for operation of facilities labour infrastructure due to location
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 81 of 84
Attachment 2 Attachment
Item 11
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 82 of 84
Item 11 Item
Attachment2
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 83 of 84
Strategic Growth Committee Agenda 14 May 2020- OPEN Page 84 of 84