6 August 2020
Media: Local Democracy Reporter
Topic: Forest hub 2 contract variation
Enquiry
The below has been sent to me. This may be discussed today in the meeting, but if I could please invite the council and the mayor to respond if they wish, including indicating any inaccuracies.
Can you please also provide comment as to why $500,000 needed to be added to the contract? If the additional allocation was indeed for the completion of the car park and toilets, did the original contract allow for those things? Can you please also provide me with the attachments/presentation related to that recommendation (10.2 in the July 2 O+M meeting minutes)?
WHAKA FOREST HUB 2 BUDGET BLOWOUT INCOMPETENT AND WRONG
Press Release: Crs Peter Bentley, Raj Kumar, Reynold Macpherson, 4 August 2020
On 29 July, all but the three Residents and Ratepayers' councillors on Rotorua Lakes Council approved $550,000 being added to Contract 18/034 of $2,760,079. It is to complete the construction of a 400-car carpark and toilets for the Whaka Forest Hub 2 Development. While the original budget had a 2 per cent contingency, it has blown out by 20 per cent to $3,310,079.
Cr Peter Bentley is critical of Council borrowing yet more money and adding to ratepayers' debt to spend on toilets and other facilities on private land. The benefits, he said, would only go to yet-to-be-built private enterprise with the ongoing cost of asset maintenance being met by ratepayers in perpetuity.
Cr Raj Kumar said Blowouts now form a pattern where ratepayers have to pick up the cost of poor project management. The Chief Executive tells us that this is the new norm. He blames climate change, rising costs, Covid-19 and so on, but Council must tighten up and deliver on its contracts. We are all putting on the same green.
The blowout confirms inferior contract management, said Cr Reynold Macpherson. It adds insult to injury because Council has already agreed to fund capital expenditure on tourism infrastructure and to maintain it forever on land owned by its co-governance' partner, with none of the profits coming back to ratepayers. That's wrong.
The Rotorua District Residents and Ratepayers Inc was launched on 25 September 2015 to restore democracy, the rule of law, financial responsibility and policy making power to elected representatives. It has over 700 members and associates and 2,365 followers on Facebook.
Response
Regarding the release relating to Forest Hub 2 contract, see below from CE Geoff Williams and Mayor Steve Chadwick and see attached a copy of the attachment/presentation referred to in the confidential minutes now released to the public regarding the contract variation:
From CE Geoff Williams:
As was explained during today's Operations & Monitoring Committee meeting, there is no budget blowout - this was a contract variation, something which is common for major capital projects and for which allowance is made through contingencies.
The forest development project, of which Hub 2 is a component, remains within the $14.5m project budget ie the $550,000 variation is not on top of that.
Council is not borrowing more money for the project - that statement is incorrect. As was reinforced today, the contract variation fits within the forest developments budget and, as was also explained today, this project is, in fact, being very well managed.
From Mayor Steve Chadwick:
"This is very misleading. We have today again heard the facts, as we did when this matter [contract variation] came to elected members for a decision recently. There is no budget blowout, there is no addition to the overall budget, no additional borrowing for the forest developments, and the project is being well managed."
Additional note for reporter: Please refer to information provided during today's discussion at O&M for further understanding regarding Forest Hub 2 contract variation, including: reasons for the variation, other background/info provided re the variation, and for understanding of contracts and contract management and how contingencies are used.
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Media: Local Democracy Reporter
Topic: Ngongotaha Action Plan progress
Enquiry
Could you please provide me with a high-level update on the Ngongotahā Action Plan? I have this from February but I imagine some of that may have moved forward since then.
Was wondering if you can tell me the status of actions in this area - including what's on track, ahead or behind schedule and the next steps for the council now funding has been confirmed for the Ngongotahā Flood Review Project (to BOPRC) through CIP shovel-ready projects.
Or of course if things haven't moved on since February (no doubt Covid has been a factor) I can quote that document confirming the info remains up-to-date.
Response
The following information was provided:
The points below are a summary of completed actions by the end of 2019.
The epānui I sent you yesterday captures the work completed from Jan 2020 to now.
The majority of actions are completed or in progress. Reasons for the actions that are behind schedule relate to:
* The complexity of work, such as the modelling of flood mitigation options or the required risk assessments before the District Plan review can commence.
The time needed to enable community-driven action, such as establishing a working group to develop the Ngongotahā community response plan.
Status of actions
In summary, 11 of the 19 actions have been achieved. Six of these completed actions are ongoing. Five actions are in progress, although running behind schedule.
These actions relate to:
analysis of flood mitigation options and associated engagement with the Ngongotahā Community.
completion of the stream maintenance plan.
establishment of the working group for the Ngongotahā Community Response Plan.
review of the District Plan.
construction of detainment bunds in the upper catchment.
Three actions are reliant on the completion of other actions.
Achievements for 2019. The achievements for the year include:
Completion of priority stream repairs from the April 2018 flood and removal of 30 large and at-risk trees from the upper catchment.
Establishment of the Ngongotahā Community Reference Group (CRG) to guide the dual-Council project team, particularly in relation to potential flood mitigation options and community engagement.
Successful operation of dual-Council teams, particularly in relation to RMA planning; engineering options as well as communication and engagement.
Completion of a number of actions which have resulted in improved internal processes and working relationship between the two Councils.
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Media: Rotorua Daily Post
Topic: COVID card trial in Rotorua
Enquiry
Can I please have a comment from you about the trial of the CovidCard here in Rotorua?
- Was Council approached about the decision to trial it here?
- Was there any compromise in the decision?
- Why did you agree to bring it here? Are you not concerned about privacy issues of our people?
- Do you think if it worked, it would be a successful contact tracing tool or should other options be explored?
- Any other comments are welcome!
See the media release about this HERE.
Response
Please see comment from Mayor Chadwick below.
Please note we're not sure what you mean by Was there any compromise in the decision?'. The Mayor was consulted about the trial being conducted in Rotorua but it was ultimately not our decision about whether or not the trial went ahead.
From Rotorua Mayor, Steve Chadwick:
The trial was raised with me during a meeting with the Department of Internal Affairs Chief Executive Paul James and I said we'd be thrilled to host the trial here in Rotorua.
The card could potentially provide another contact tracing option for New Zealanders if the trial proves to be a success.
Robust and effective contact tracing processes will play a very important role in slowing the spread of COVID-19 should we see a recurrence of community transmission here in New Zealand. Anything we can do to better prepare for this will benefit our community in the long run.
I would expect that any privacy issues would be picked up and addressed as part of the trial and that if the card does get rolled out nationally, that it would be up to individuals to choose whether or not they use this option in addition to other contact tracing methods.
