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Waipa Waters Programme: Project Information Form

Section 1: Key Information [Criteria 2 and 3]

1. Project Title: Waipa DC Waters Programme

2. Please provide your details: Organisation Name: Council Entity Type: Local Government Contact Name and Role: Dawn Inglis GM Service Delivery Email Address: [email protected] Telephone: 027 554 2221

3. Please provide a very brief description of the infrastructure project: Brief description of the programme Waipa District Council has compiled a programme of projects in the Waters Activity which meet the requirements of the Crown Infrastructure Partners. These projects have been selected also because they are all key enablers for Waipa District Council to continue its journey towards compliance with standards and consents, which are key to achieving community well-being and protecting public health.

These projects nominated are not currently funded as part of the current Waipa DC Long Term Plan (2018-2021 period) but were to be submitted for local funding as part of the development of the Waipa DC Long Term Plan (2021-2024). They are able to be accelerated readily to meet the funding criteria.

Problem being addressed Whilst Waipa is working hard to address issues in the Waters Activities, many of the projects required to address the issues are currently unaffordable to our communities – either in part or complete projects being deferred. Waipa has a backlog of renewal work required and is also grappling with the level of capital investment needed to cater for increased residential and commercial growth in our communities.

Key benefits being delivered Waipa is committed to the vision and strategy of the River Authority (Te Ture Whaimana o Te Awa o Waikato), which is focussed on restoring and protecting the health and wellbeing of the Waikato (and Waipa) River. This programme of works will both support that vision, and also create resilience in our water supply system for future growth.

In particular the SCADA system upgrade will ensure that our data capture is consistent and complete – without this there will be an eroding level of confidence in our reporting on water and waste water compliance. However, the significant investment cannot current be afforded.

In our partnership with Iwi, council is working hard to improve effluent quality from the Cambridge Waste Water Treatment Plant, and are implementing a number of improvements currently. The nominated project will further ensure that the restoration work is continued, until a sub-regional Waste Water Treatment Plant is able to be built.

Construction readiness & deliverable Timeframe (Projects here available to start immediately) The programme of projects do have varying levels of construction readiness.

Work at Parallel Rd can commence immediately as council has a contractor engaged (design and construct contract

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which is in the final design phase), as is the case with the Te Awamutu Waste Water Treatment Plant (although the design phase will be longer to meet consenting requirements). The SCADA upgrade could be underway within a short period of time, as could the pipe renewals projects where an existing contract is in place for both design and construction. Reservoir renewal work will require design inputs but standard design templates used in neighbouring councils have been identified as a fast-track option. Alpha Water Treatment Plant capacity increase project will require both consents and detailed design work, although modelling of the network has been completed.

How funding will aid progress As noted above, these projects will be unlikely to progress for a number of years without this stimulus funding.

Extra information The projects within this programme are noted below:

Parallel Rd Water Treatment Plant – Upgrade Expansion (4ML Expansion) – upgrade water supply to communities of Pukerimu/Ohaupo/Te Awamutu to provide additional capacity for growth and resilience Parallel Rd Water Treatment Plant – Treated Water Storage – upgrade water supply to communities of Pukerimu/Ohaupo/Te Awamutu to improve security of supply Te Awamutu Waste Water Treatment Plant Upgrade – Stage 4 – expand stage 3 upgrade (under construction) to provide further capacity for residential and industrial growth SCADA Upgrade - Telemetry upgrade (SCADA) to support compliant data capture (Water and Waste Water System) and protecting public health by maintaining a reliable service Cambridge Waste Water Treatment Plant- New Aeration process to improve effluent quality, meet consent requirements and improve sustainability Pipe renewals and upgrades- Waters pipe renewal works - accelerate programme which is currently showing backlog of work and upgrade selected pipes to service growth Reservoir renewals - Reservoir renewal programme (with increased capacity) to support ongoing resilience in the provision of drinking water to our communities Alpha St Water Treatment Plant - Increase capacity at Alpha St WTP to address future growth requirements in Cambridge

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4. This project will be located in which Territorial Authority: Waipa District Council

5. Please confirm the project sector, category and type of infrastructure:

Project Sector ✓ Project Categories ✓ Accommodation ☐ Three waters ü Agriculture, Horticulture and Forestry ☐ Transport ☐ Alcohol Availability ☐ Buildings and Structures ☐ Bioscience and Biotechnology ☐ Other infrastructure ☐ Construction ☐ Energy ☐ Project Type ✓ Film and Television ☐ Critical infrastructure ü Imports and Exports ☐ New infrastructure ☐ Information communications and technology ☐ Replacement/refurbished infrastructure ü Manufacturing and Production ☐ Repurposed infrastructure ☐ Retail Trade ☐ Tourism ☐ Wholesale Trade ☐ Central Government ☐ Local Government ü Other ☐

6. What is the total cost of the project (NZ$M): $53,030,000

7. Provide a high-level breakdown of this spend (e.g. construction costs, professional fees, land, other etc.): For these projects, council has found that generally around 10% of the total project cost is required for design, consent requirements, project management, contract management (MSQA). No land is required to be purchased for any of the projects. Therefore the breakdown is as follows:

Professional fees $ 5,303,000.00 Construction costs $47,727,000.00

8. Briefly outline the value the project will deliver in terms of employment contribution. Programme Total – 210 jobs created as part of works proposed

Parallel Rd Water Treatment Plant – Upgrade Expansion (4ML Expansion) - Total 34 (Professional services 8, Civil / Mechanical / Electrical Contractors 26)

Parallel Rd Water Treatment Plant – Treated Water Storage - Total 34 (Professional services 8, Civil / Mechanical / Electrical Contractors 26)

Te Awamutu Waste Water Treatment Plant Upgrade – Stage 4 - Total 26 (Professional services 6, Civil / Mechanical / Electrical Contractors 20)

SCADA Upgrade – Total 12 (Professional services 2, SCADA Engineering 2, Electrical Contractors 8)

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Cambridge WWTP- New Aeration Plant – Total 26 (Professional services 6, Civil / Mechanical / Electrical Contractors 20)

Reservoir renewals - Total 34 (Professional services 8, Civil / Mechanical / Electrical Contractors 26)

Pipe renewals and upgrades - Total 18 (Professional services 4, Civil Contractors 14)

Alpha St WTP - Total 26 (Professional services 6, Civil / Mechanical / Electrical Contractors 20)

9. Briefly describe how the project is currently/ intended to be funded:

The programme is currently intended to be funded via the Long Term Plan via loan funding or funding from depreciation for renewals projects. Noting that there will be resulting operational costs from these works which will be funded by Waipa DC. Further, depreciation impacts from these works may be a burden on the community during a period that is financially challenging.

10. Has this project previously applied for funding with any part of Government? Yes: ☐ No: ☒ - If Yes, please describe which part of government (i.e. PGF, NZTA FAR etc.), the outcome of the discussions and who such discussions were with (what Ministry and official).

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Section 2: Construction Readiness [Criteria 1] 11. Please briefly explain the status of the project including confirmation that the project will fall into one of the three categories of readiness (see 12 below). Waipa DC Waters Programme Parallel Rd Water Treatment Plant – Upgrade Expansion (4ML Expansion), minimal consent requirements, category A (construction underway but scope reduced to exclude additional membrane treatment, to meet funding constraints)

Parallel Rd Water Treatment Plant – Treated Water Storage, minimal consent requirements, category A (construction underway but scope reduced to exclude the treated water reservoir, to meet funding constraints)

Te Awamutu Waste Water Treatment Plant Upgrade – Stage 4, minimal consent requirements, (Stage 3 construction underway so scope could be expanded readily, although design and consents required), category B/C

SCADA Upgrade - Telemetry upgrade (SCADA) to support compliant data capture (Water and Waste Water System) and maintain reliable service, category C (no consents required, can construct once design complete, pre design completed, design commenced, category C

Cambridge WWTP- New Aeration process – options review & design commenced, some consents required, category C

Reservoir renewals - business case level – some pre design completed, but standard designs can be applied, minimal consent requirements category B/C

Pipe renewals - Waters pipe renewal and upgrade works – modelling and pre design complete, design commenced, minimal consent requirements, category B

Alpha St WTP – business case level – some pre design completed, some consents required, but acceleration is expected to be successful in bringing this project into category C

12. Confirm which of the following categories the project best falls into. Further commentary (briefly set out barriers to Status ✓ commencement)

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A. Projects which currently are (or were) in the construction phase but have been put As noted above, two projects are currently under on hold due to COVID 19 and are likely not construction and these could be readily expanded to ✓ to progress, or to progress at a much address areas which were removed from the scope to slower rate or scale/scope, if not supported meet funding constraints post COVID 19

B. Projects which have a high expectation of commencing the construction phase within Reservoir and pipe renewals and upgrades limited by ☐ the next six months (by 31 October 2020), budget availability but are unlikely to do so due to COVID 19

These projects are currently being scoped in preparation C. Projects which could have been expected to for the 2021 Long Term Plan and have not been commence the construction phase within previously progressed due to skill shortages, funding ✓ constraints and uncertainty around future consent the next 12 months (by 30 May 2021), but requirements. Council has also challenges with respect to are unlikely to do so due to COVID 19 skilled resource issues to manage works (alongside delivery of routine services to the community)

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13. Confirm the status of key milestones Expected Status ✓ Date Suitable tender complete ✓ Tender evaluation in progress ☐ Procurement Request for Tender in the Market ☐ About to put out a Request for Tender to the market ✓ July 2020 Detailed Design Complete ☐ Detailed Design Detailed Design Underway ✓ July 2020 Detailed Design to commence ✓ July 2020 Approved ☐ Lodged ☐ Designations/Consents In preparation Minor ✓ requirements No No land ☐ required Land Acquired Being negotiated under PWA (please indicate stage below) ☐ Has not commenced ✓ Not required Approved ✓ Renewals Business Case or Draft ✓ Investment Case Underway ☐ None ☐

Note this is a summary across the projects. Individual projects have differing milestones. If a regional delivery approach is adopted within the Waikato, it is anticipated that acceleration of projects will provide support to ensure all are progressed within the required timeframes. It is also acknowledged that RMA requirements for consents are currently under review, and therefore these barriers may reduce significantly soon (whilst not compromising environmental outcomes).

14. Briefly outline any other comments on the key project timetable or key milestones As it is a very large programme of work, it is anticipated that there may be constraints within the supplier sector. This may include: - Design resources - Resource consent development and processing resources (unless a fast-track process is developed) - Skilled operator knowledge to input into design - Skilled construction resources

None of these nominated projects have any new land requirements and it is anticipated that with sufficient resourcing applied, all could be moving to the construction phase within the required range of 6 months to 12 months (assuming that barriers will be removed and sector capacity is realised).

In detail, an example of this is the Parallel Rd Water Treatment Plant, which is currently being upgraded but, due to funding limitations, several elements have been removed from this construction phase (membranes for an additional 4ML capacity and an additional treated water reservoir). The site is being future proofed to accommodate these, so could be readily progressed in the timeframes required.

Equally the Te Awamutu Waste Water Treatment Plant stage three upgrade is underway, and the existing contract arrangements could be expanded to include works planned under stage four.

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Section 3: Overall Benefits and Risks [Criteria 4]

Please advise at a high level whether a project brings real value (in an economic, social and/or environmental sense) to as a whole or the region in which it is located in line with Treasury’s Living Standards Framework1 and Sustainable Development Goals2. Please take into account, where relevant, the draft 2021 Government Policy Statement on land transport, available at https://www.transport.govt.nz/multi- modal/keystrategiesandplans/gpsonlandtransportfunding/gps-2021/, and the priorities that it establishes.

15. Briefly outline the social, environmental and economic benefits of the project to the local region and New Zealand and overall value for money. Social Wellbeing The Waters activity in Waipa has the vision “Our water supply, wastewater and stormwater services are safe, reliable and fit for purpose”. The projects promoted as part of this programme are those which are seen as key enablers for the realisation of this vision. We are focussed on delivering high quality, safe drinking water as part of our public health commitment to our communities.

Economic Wellbeing The Waters sector is an area of local government where it is recognised that improvements are needed to address the lack of investment in key infrastructure and adopt a stronger risk management approach to service delivery. Waipa District Council is a growth council and has experienced significant growth in recent years. Waipa is also investing significantly in infrastructure to address the growth needs. As such a number of projects are underway which both address the growth need, and address resilience issues to the wider community, although with reduced scope to meet funding limitations. These projects have direct linkages to also improving the social and environmental wellbeing of our communities. The availability of serviced industrial zoned land in Waipa district is attractive to new industries creating additional employment opportunities. It is also noted that the additional capacity at Parallel Rd WTP is to meet community and industry water supply needs in Te Awamutu (including a Fonterra Plant) which is of significant importance in realising economic benefits from the primary sector. Whilst a separate project, the Alpha St WTP upgrade is also focussed in increasing the production capacity for water supply in Cambridge which is experiencing high demand for housing and industry. Waipa’s pipe renewals programme is currently indicating a backlog of work being required. These could indicate a significant financial burden on our communities in coming years, as well as public health and environmental impacts if they fail prior to renewal.

Cultural Wellbeing As noted earlier, Waipa is committed to the vision and strategy of the Waikato River Authority (Te Ture Whaimana o Te Awa o Waikato), which is focussed on restoring and protecting the health and wellbeing of the Waikato (and Waipa) River and their catchments. As such the SCADA Upgrade project is required to ensure that there is an ability to adequately monitor the waste water system and be able to respond if there are any issues which could lead to adverse environmental impacts (for example waste water overflows from pump stations) – protecting the public health of our communities. The project will also enable Waipa to better undertake compliance data capture for the water supply system.

The reservoir renewal programme (with increased capacity) is to support ongoing resilience in the provision of safe and reliable drinking water to our communities.

1 https://treasury.govt.nz/information-and-services/nz-economy/higher-living-standards/our-living-standards-framework

2 https://www.mfat.govt.nz/en/peace-rights-and-security/work-with-the-un-and-other-partners/new-zealand-and-the-sustainable-development-goals-sdgs/

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Environmental Wellbeing All of Waipa’s waters activities are aligned with ensuring our communities environmental wellbeing – either through the higher quality effluent discharge from our waste water treatment plants or through managed abstraction of water from our water sources (streams and rivers) to balance the impact on our surrounding environments. All projects in this package will support our overall vision of delivering safe, high quality services to our communities, and halting environmental degradation.

16. What is the expected contribution to local/ national employment? This programme of work will provide approximately 210 local jobs within the Waters Sector. The sector does suffer from a lack of resource, so a key part of this programme will be to ensure that the work enables training and upskilling to build a more resilient work force.

17. What are the risks associated with the project? Each risk should be ranked as high, medium or low and include a short explanation as to why it was given that risk rating. Low/ Risk Further commentary on risk Med/ High

A. The risk of the project not commencing Subject to funding and resource availability within the advised timescale Med

B. The risk the project will not be completed Subject to funding and resource availability on time, to cost or to specification Med

C. Risk the project will not realise the Business case reviews have been completed for all Low benefits outlined above projects and benefits are clear.

18. Are there any other key project risks or any other information which would be useful background or context at this stage? Since the Havelock North Inquiry, the Government has moved forward with the Three Waters Reform agenda to address the issues that were identified. Progressing this programme of work, alongside our regional neighbours, could be a key supporter of the signalled move towards larger scale service delivery models.

It is also reiterated that there is a significant current critical skill shortage in the industry and the potential to upskill and provide career change avenues for people from other work sectors needs to be considered when this programme of work is advanced.

Section 4: Impact of COVID-19

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19. Please briefly comment on the likelihood and timing of the project recommencing once the COVID 19 Response Level is suitable for construction to proceed The design elements of the programme of works could be commenced once funding approved, with construction starting as design allows once level 4 restrictions removed. However for those projects which are currently under construction, design work could commence during the lock-down period, to enable scope variations to be implemented very soon after the level 4 restrictions are lifted.

20. What is the best estimate of the impact (financial/social/environmental) COVID 19 has had on the project and on local industry associated with the project? The programme of projects will deliver work to the water industry in timely manner covering professional services, civil / mechanical / electrical contractors and suppliers. The estimate work programme is $53,030,000. With an estimated 50% in local employment benefit.

It is anticipated that all of council’s current construction projects will be significantly impacted by the COVID-19 pandemic, although the scale and detail of these is not yet known. However there will inevitably be a lag once Alert Levels drop below level 2 or lower, meaning that there will be significantly delayed.

21. Has this project already, or is likely to benefit from already announced Government led financial support for businesses (e.g. wage subsidy scheme/business finance guarantee scheme) Yes: ☐ No: ☒ - If Yes, please describe the scheme and extent of the support you have received/expect to receive.

22. Briefly outline the top 2-3 things that the Government can do to help progress this project. Please consider both financial and non- financial levers such as lowering regulatory barriers, adjusting Government procurement practices, fast-tracking resource consent processes. Provision of funding and government procurement practices in bundling like programmes together to establish a portfolio of work that could be let via Early contractor involvement (ECI) or Alliance models

Review RMA requirements to enable fast-tracking of consenting without compromising good social and environmental outcomes.

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Provide support to training organisations to fast-track new people into our sector.

Please indicate clearly whether you consider any information you have provided in this form to be confidential. Confidential information will not be publically released, other than in anonymised form, except to the extent that any release is required by law.

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