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22. 10. 97

CITY SERVICES COMMITTEE

7 OCTOBER 1997

A meeting of the City Services Committee
was held on Tuesday 10 October 1997 at 2.00 pm

PRESENT: Councillor Denis O'Rourke (Chairman), The Mayor, Councillors Carole Anderton, David Close, Graham Condon, Ian Howell and Ron Wright.
   
APOLOGIES:
Apologies for absence were received and accepted from Councillors David Buist, Carole Evans and Garry Moore.
  Apologies for lateness were received and accepted from the Mayor and Councillor David Close.
  Councillor David Close arrived at 2.10 pm, departed at 6.50 pm and was present for all clauses.
  The Mayor arrived at 2.15 pm, departed at 4.20 pm and was present for clauses 1 and 2.
  Councillor Ian Howell left the meeting at 5.05 pm, returned at 5.25 pm and was not present for clauses 4 and 12.
  Councillor Carole Anderton left the meeting at 4.20 pm, returned at 4.40 pm, retired at 6.10 pm and was not present for clauses 3, 7 to 9, 13 and 14.
  Councillor Ron Wright retired at 5.25 pm and was not present for clauses 5 to 7, 13, 15 and 16.

 

The Committee reports that:

PART A - MATTERS REQUIRING A COUNCIL DECISION

1. TENDERS FOR REFUSE AND RECYCLABLES MATERIALS COLLECTION CONTRACT RR 6260

 

Officer responsible Authors
Waste Manager Mike Stockwell, Waste Manager and
Simon Collin, Acting Solid Waste Manager
Corporate Plan Output: Solid Waste

The purpose of this report is to provide details of tenders received for the Refuse and Recycling Materials Collection Contract and to seek the Council's endorsement of the Committee's recommendation that the Council accepts Onyx's tender.

1. BACKGROUND

Councillors will be aware of the background leading up to the tendering of the new refuse and recyclables collection contract. As a brief reminder background events are outlined below:

The agreed timing was to start kerbside collection on a staged basis one third of the city at a time (at one month intervals). This was to allow bedding in problems to be sorted out on a gradual basis rather than being overwhelmed by incoming materials from an entire city start up all at once. The start date was to be in August 1997 when the existing refuse collection contracts expired. Councillors will recall that following the setup of the Recovered Materials Foundation, startup of the new contracts was postponed to May 1998. This enables the Recovered Materials Foundation to set up its site at Parkhouse Transfer Station and be ready to receive the incoming recyclables when the new collection starts up. All of this was reported to City Services and the Recovered Materials Special Committee in various reports from November 1996 to September 1997.

2. MAIN FEATURES OF NEW CONTRACT

The Specification for the new Contract includes the following main features:

3. PROCESS

As has been reported previously to Councillors the tender process commenced in November 1996 with a public notification, calling for registration of interest from refuse collection companies to supply a refuse and recyclables collection for the city.

Nine registrations were received and seven were shortlisted to tender. After some delay due to the setting up of the Recovered Materials Foundation, tenders eventually closed on 23 July 1997. The tender documents specified that tender evaluation would be carried out by a panel of four Councillors (O'Rourke, Close, Wright, Howell), two Council Officers (Mike Stockwell, Simon Collin) and the Chief Executive Officer (Piet Beukman) of the Recovered Materials Foundation. Tenderers were given an opportunity to present their bid to the Panel and to answer questions from the Panel.

Following presentations, the Panel selected a 'preferred' tenderer from whom further information was sought. This tenderer presented additional information to the Panel at a second presentation.

The second presentation by the preferred tenderer (Onyx NZ Ltd) to the Tender Evaluation Panel confirmed with the Panel that this tenderer could indeed provide the most suitable service to the Council at the most favourable price. The factors upon which this decision was based are detailed later in this report.

4. TENDERS RECEIVED

Six tenders were received from the following organisations:

Except for Envirowaste all tenderers bid for both the north zone and south zone contracts, the boundaries of which are the same as for the existing contracts. Envirowaste bid only for the north zone.

5. PRINCIPAL FACTORS CONSIDERED

5.1 Price

Comparison between tenders is influenced by additional services that tenderers were required to price. The additional services are:

The tender analysis below compares prices based on the inclusion of the above three services which are expected to be required during the first five years of the contract after the private lane and multi-unit dwelling services have been fully developed. Prices are as follows.

Company Tender Price North Zone (annual cost) Tender Price South Zone
(annual cost) 		Tender Value Combined (single contractor)
(annual cost) 		Cost for First Five years Operation
 Combined Zones Single Contractor 		Cost Differential from Lowest Bid
Onyx 924,153 2,377,022 3,301,175 16,505,875 ZERO
Waste Care Alternative(single vehicle) (a) (b)
928,544
2,418,354
3,346,898
16,734,490
228,615
Waste Control (a) 1,349,355 2,788,269 3,379,598 16,897,990 392,115
Works Operations 1,323,391 2,937,968 3,753,285 18,766,425 2,260,550
Waste Management (a) 1,105,594 2,810,979 3,839,091 19,195,455 2,689,580
Waste Care
(separate vehicles) (a) 		1,459,242 3,545,480 5,004,722 25,023,610
8,517,735
Envirowaste
(single vehicle) (a) 		971,551 - - - NA

Notes:

  1. The table has been arranged in order of increasing cost for the tender value of the combined north and south collection zones.

  2. (a) Tender prices include an amount to cover the cost of paying out redundancy to Works Operations staff. ($80,000 per year for each of five years ie $400,000 total).

  3. (b) Waste Care's proposal mixes plastics and steel cans which would require additional separation. This would fall as an additional cost on the Recovered Materials Foundation, and is estimated to be at least $100,000 per year.

  4. All prices include allowance for payment of Works Operations retiring gratuities.

  5. Waste Care and Envirowaste bids were based on a single collection vehicle picking up both refuse and recyclables. All other bids have separate vehicles for refuse and recyclables.
  6. The specification provides for a further five year contract rollover provided both parties agree to it.

  7. Combined value is not in all cases the sum of north and south zones because of some tendered reductions for collecting entire city.

As seen from the table the Onyx bid for collection from both north and south zones is the lowest. Alternatives with different contractors collecting the north zone and south zones were considered but these options are more expensive and are therefore not included in the table.

5.2 Employment of Works Operations Staff

The tender specification stated that a redundancy sum of $400,000 (ie $80,000 per year) would be added to tendered prices (for the purposes of comparison) of those bids that did not include virtually guaranteed employment of Works Operations staff. Of course this sum was not applied to the Works Operations bid. The sum was spread over five years, (as the contract term is five years).

The tender documents also invited tenderers to propose other ways of addressing this problem. Responses from tenderers are set out below. The Onyx bid was a clear leader in this aspect.

Onyx: This company has a practise of employing Local Body or other existing staff where at all possible. Their bid contained the statement that the price includes the cost of employing the 27 current Works Operations refuse collection staff under their present contract conditions. Key conditions were spelt out clearly in the tender specifications including pay rates, retiring gratuity, leave (sick, annual, long service) medical insurance etc. In later discussion with Onyx their genuine desire to employ existing staff is apparent and they are keen to begin tripartite discussion including the Union soon as is practicable. If the Onyx bid is accepted, redundancy costs will not therefore be an issue. The redundancy cost has therefore not been added to their bid in the table above.
Waste Care: Indicated only a low possibility of employing some Works Operations staff. Redundancy cost added to bid.
Waste Control: Would offer employment only to suitable Works Operations staff but not under current conditions. Redundancy cost added to bid.
Waste Management: Employment offered to only Works Operations staff who meet Waste Management criteria. Redundancy cost added to bid.
Envirowaste: Employment not offered at all to Works Operations staff. Redundancy cost added to bid.

Refer to attachment for discussion concerning employment of Works Operations existing refuse collectors.

5.3 Vehicles and Collection Methodology

In terms of the principal requirements in the tender specifications, a main distinguishing feature between tenders was whether they proposed to collect both refuse and recyclables from a single vehicle or have a separate vehicle for each collection.

Most tenderers chose modern purpose built low entry refuse collection vehicles where the driver is also the collector, and drives in a standing position on the left hand side of the vehicle. (See details in the attachments). Tenderers vehicle details were as follows.

Onyx: Refuse collected by one man vehicle, recyclables collected by two man vehicle. Both vehicles purpose built low entry vehicles. Onyx demonstrated particular innovation in the design of their recyclables collection vehicle - refer attachments for vehicle details. Their tender allows for the following items at no extra cost:
 
  • Collection of whole bottles
 
  • Collection of household batteries
 
  • Separation of PTE & HDPE plastics
Refer to section 6.5 for other collection services offered by Onyx.
Waste Care: Provided two bids. One for separate collection vehicles which was very expensive, and one competitive bid using a combined low entry one man collection vehicle. However their combined vehicle bid mixes plastics and steel cans which would require additional separation after delivery. This additional cost would fall on the Council funded Recovered Materials Foundation and is estimated to cost at least $100,000 per year. This cost is not included in the above tender price schedule.
Waste Control: Collection by separate purpose built low entry vehicles.
Works Operations: Refuse collected by two man front loading compactor vehicles, recyclables by compartmentalised truck using one driver two lifters.
Waste Management: Refuse and recyclables collected by separate one man low entry vehicles. Green waste collection service offered as an option on the tender, on a user pays basis. The proposal was innovative but the overall tendered price was prohibitive.
Envirowaste: Refuse and recyclables collected by a single vehicle. Tender only for north zone.

6. ONYX AS PREFERRED TENDERER

Having considered tenders in terms of price, employment of Works Operations staff, vehicles and collection methodology (refer above) it became clear to the Evaluation Panel that Onyx were emerging as a preferred tenderer. To establish further confidence in Onyx other aspects of their tender, experience and company structure are outlined below.

6.1 Company Structure

Onyx is a subsidiary company of the worldwide umbrella company Compagnie Generale des Eaux. This Principal Company provides services in water (in New Zealand, United Water Ltd), energy, construction communication, healthcare, transport and waste (in New Zealand Onyx NZ Ltd). Turnover is as follows.

Onyx NZ have four contracts currently running in New Zealand as follows.

The Evaluation Panel considers that the Onyx NZ Ltd company structure is well able to support this contract.

It is relevant to note that Onyx NZ Ltd policy is to employ local people to retain all profits within New Zealand for at least the first five year operation.

6.2 Management Structure.

The management structure Onyx will put in place for this contract is depicted below.

  Onyx Head Office Auckland
Philippe Grelon: Managing Director Onyx NZ Limited
Simon Limmer: General Manager Onyx NZ Limited		      
 
  Christchurch Office
Onyx Contract Manager
John Palmer 		           
  Onyx Operations Manager
Brian Wilson 		           
Drivers   Sorters   Mechanic   Drivers   Sorters

During the start up phase of the contract Onyx also proposes to use Jean Benoit (a Director of Onyx NZ Ltd) for special advice as he has worldwide experience in initiating new collection contracts.

Whilst Onyx do not have a large kerbside refuse and recyclable collection contract in New Zealand as yet, they nevertheless have vast worldwide experience in this field including our neighbour Australia. All of the above managers are considered to be knowledgeable and experienced in this work and well fitted to oversee the setup of the Council's new contract. In addition very swift backup advice is available from their worldwide network if in the unlikely event this proves necessary.

The Evaluation Panel considers that the Onyx management structure and personnel are well able to support this contract.

6.3 Financial Backing

Onyx NZ Ltd have paid up capital of $6.0m. A credit check of the company has revealed nothing adverse. Considering the size of the umbrella company's worldwide operation and the above facts, the Evaluation Panel considered the Company to be financially adequate for this contract.

6.4 Experience

Onyx worldwide and local experience has been covered in preceding sections 6.1 and 6.2. In addition Councillor Denis O'Rourke and Simon Collin (Acting Solid Waste Manager) have visited part of Onyx/Collex Sydney operation whilst Mike Stockwell (Waste Manager) has visited Onyx Auckland operations. Refer to the attachments for summary comments from these visits.

6.5 Innovation and Miscellaneous

Innovative and/or advantageous matters that emerged in the Onyx tender, and subsequent presentations and dialogue were as follows.

  1. Onyx demonstrated a very high commitment to maximising the collection and yield of recyclables.

  2. Their approach to recycling collection was the most innovative. For example it allows for a sorter on the vehicle, which may eventually offer employment to the disabled. Onyx collection vehicle has longitudinal compartments which offers good flexibility for varying quantities of recyclables (note that quantities are not currently precisely known and will vary between demographic areas of the city). Each vehicle is essentially a mobile recyclable material sorting facility.

  3. Onyx carry Radio Telephone communication in all vehicles which will enable driver "incident reporting" to the appropriate authority (the 'safe vehicle' concept).

  4. Onyx offer bottle and battery collection at no extra cost. Also plastic separation at no extra cost.

  5. Onyx have proposed to offer householders the following alternative services on a user pay basis. This will provide customer choice should they want any of these services (Note that overseas experience is very clear in that householders do like a choice).

Note these matters are subject to further negotiation and agreement by the Council before they are in any way finalised.

  1. Onyx offer a fixed price recyclable section of the contract with regard to weight collected (subject to transparent partnership reviews at defined periods). This offer reduces the financial risk of overrun if quantities of recyclables collected exceed estimates.

  2. They have expressed serious interest in working with either Plant and Building Services Unit or CTL for their vehicle maintenance.

  3. Onyx will ensure that as many as possible of the collection and recycling vehicles bodies are manufactured in Christchurch (over half of the 24 to 27 total number). They have already identified several potential local manufacturers.

  4. They want early and ongoing involvement with the householder publicity and education campaign.

  5. Onyx overseas experience and links will enable them to tap into the latest technology and collection methods. For example they have a fleet of electric collection vehicles operating in Paris. (Though these would be too expensive to be viable for Christchurch yet).

  6. Their overseas experience will provide a very useful link for the Recovered Materials Foundation in regard to latest uses for recyclable materials.

  7. Onyx offer flexibility in terms of collecting other materials in the future as the need arises and as the Recovered Materials Foundation develops new markets. (For example putrescible kitchen scraps, waxy containers etc.)

6.6 Media Exposure

Councillors will be aware of some recent derogatory media exposure that Onyx have sustained. The Evaluation Panel asked Onyx Managing Director Mr Philippe Grelon to comment on this.

The Panel has considered Mr Grelon's comments and are satisfied that the matters raised in the media related to the water business of Generale des Eaux, not to the particular company tendering for this contract ie Onyx NZ Ltd. (The Panel noted that Generale des Eaux has in any case addressed all of the problems referred to in the media).

7. BUDGET

The lowest tender from Onyx NZ Ltd is for $3,301,175. This for a full years operation. As described in this report, this price includes a sum for collection from 600 private lanes and 500 multi unit dwellings assuming these are the fully developed numbers. In this respect the price could be a little on the high (conservative) side. Comparison with budget money allocated is as follows.

Operational
Costs 		1997/98
(Includes expected
payments to
existing Refuse
Contractors and payment
to Onyx in May and June 98) 		1998/99
(12 months)
Includes 200 lanes & zero container bins 		Future Years
Includes 600
lanes & 500 container bins
Budget Provision for Contract 2,059,600 3,059,600 3,059,600
Required Payment to Contractor 2,215,050 3,246,575 3,301,175
Variance from Budget (155,450) (186,975) (241,575)
Savings in Refuse Bag Supply 200,000 200,000 200,000
Savings in Recycling Crate Supply 46,000 - -
Net Result 90,550 13,025 (41,575)

Notes:

8. SUMMARY

The lowest tender for the new kerbside refuse and recyclables collection contract was from Onyx NZ Ltd. This tender was for $3,301,175 per year for a five year contract with a five year renewable rollover provision. The price includes an amount for collecting from private lanes and multi unit dwellings. As well as being the lowest price Onyx tender has the following advantages.

For these reasons the Tender Evaluation Panel recommend that the tender of Onyx NZ Ltd be accepted by the Council.

9. ONYX IN ATTENDANCE

The General Manager (Mr Simon Limmer) of Onyx NZ Ltd will be in attendance at the Council meeting to answer any questions the Council may have.

The City Manager, Mike Richardson, advised the Committee that an issue had been raised with him regarding an approach by the Works Operations Unit of the Council offering to undertake the refuse collection and recycling contract for $400,000 less than the tender price recommended for acceptance by the Evaluation Panel. Mr Richardson referred to the tender process noting that the Works Operations Unit is legally speaking an in-house unit. The unit had been treated as a separate business unit by the Evaluation Panel and both the Works Operations Unit and Waste Management Unit had maintained separation during the tender process.

Mr Richardson had taken legal advice on the approach the Evaluation Panel had taken in declining to receive the offer from Works Operations Unit subsequent to the closing of tenders. The revised offer had been forwarded as a result of a question asked by one member of the Evaluation Panel during the tender evaluation process. He was in no doubt that the Evaluation Panel by not considering the late offer had adopted the correct process. However, he wished to inform the Committee what had happened.

He advised the Committee that if this revised offer was to be considered the tender process would have to be recommenced.

The Waste Manager, Mike Stockwell, advised the Committee that should the Committee resolve to recommence the tender process this would delay the commencement of the recycling project by at least three months in the normal course of events and with Christmas now approaching an additional month on top of that (ie at least four months delay). Note that the tight schedule required to build the specialist vehicles by May 1998 could not be met if a tender is not accepted at the October meeting.

Evaluation Panel members advised that the Onyx New Zealand tender in addition to being the lowest tender for the contract was also attractive to the Evaluation Panel for the innovation shown in the company's approach and the extra attractive features and advantages Onyx have offered (refer City Services Committee report). A strong point was the quality of the proposal when compared with other tenderers.

The Chairman sought the Committee's approval to table a further item of correspondence from Waste Control NZ Limited. There is an allegation in the letter that there has been a mathematical error in calculating the company's tender price. The Waste Manager stated that he has carefully investigated the matters raised in the letter and is completely satisfied they are unfounded. Members of the Evaluation Panel advised the Committee that price was not the only issue considered in making a recommendation to the Committee and that the innovation and expertise offered by Onyx NZ Ltd would far outweigh the minor price difference claimed by Waste Control NZ Ltd. For this reason the correspondence from Waste Control NZ Ltd should not be considered further.

Recommendation:
  1. That the Evaluation Panel hold further discussions with Onyx NZ Limited on the pricing of the services to be contracted with a view to minimising costs without unduly reducing the level or quality of service.

  2. That the decision on the final details of the preferred contract be delegated to the Evaluation Panel.

  3. That, subject as a condition precedent to the Evaluation Panel approving the contract details, the Onyx NZ tender be accepted.

  4. That matters raised in the letter from Waste Control NZ Ltd dated 7 October 1997 and tabled at the meeting receive no further evaluation by the Evaluation Panel and the City Services Committee for the reasons that the tender price is not the only factor to be considered and that other issues are such that the recommendation would not have changed if the Panel had been aware of matters raised in the letter.

  5. That Councillor Denis O'Rourke's visit to the Ryde and Warringha Shires, New South Wales, on behalf of the Evaluation Panel be ratified by the Council.

(Councillor Carole Anderton requested that her vote against this resolution be recorded.)

 

2. KEY LEARNING POINTS FROM SEATTLE FOR SOLID WASTE MANAGEMENT RR 6261

 

Officer responsible Author
Waste Manager Mike Stockwell, Waste Manager
Corporate Plan Output: Solid Waste

The Waste Manager, Mike Stockwell, provided an overview of key learning points derived from his trip to our sister city, Seattle, in relation to solid waste management. In late August the Waste Manager, accompanied by Piet Beukman (CEO of the Recovered Materials Foundation), visited Seattle to seek information from the Clean Washington Center on current technology and industries involved in the use of recycled materials. A short visit to the Materials for Future Foundation in San Francisco was also made whilst in the area. Mr Stockwell's report has been circulated to all Councillors.

Recommendation:
  1. That the Council investigate the holding of a national conference on packaging and recycling and other related issues inviting contractors, retailers, consumers and local government members.

  2. That the cost to the Council of funding or underwriting this conference be included in the investigation.

 

3. POYNDER AVENUE BRIDGE - WEIGHT RESTRICTION RR 6197

Officer responsible Author
City Streets Manager Graduate Structural Engineer, Andrew Brown
Corporate Plan Output: Street Markings and Signs page 9.5.39

The purpose of this report is to consider imposing weight restrictions on heavy motor vehicles using Poynder Avenue road bridge.

BACKGROUND

Vehicle loadings on Poynder Avenue bridge have been assessed and fixed at a maximum axle load of 2,000 kg.

The Council is obliged under provisions in the Heavy Motor Vehicle Regulation 1974, to fix the axle limits, publish a notice in the newspaper and erect appropriate signs either side of the bridge to inform drivers of the maximum axle limit allowed on the bridge.

Recommendation: That pursuant to Clause 11(3) of the Heavy Motor Vehicles Regulations 1974 the Council imposes a maximum axle limit of 2,000 kg for heavy motor vehicles using Poynder Avenue bridge over the Wairarapa Stream.

 

4. CYCLE PROJECTS RR 6267

Officer responsible Author
City Streets Manager Alix Newman, Transport Projects Officer
Corporate Plan Output: Cycleway Planning/Implementation; p9.5.37 & 38.

The purpose of this report is to advise the Council of the status of some current cycle projects and activities undertaken in support of cycle projects.

RICCARTON BUSH CYCLE PATH

The Riccarton Bush Cycle Path realignment is progressing slowly. The following points mark its progress:

A new alignment has been developed and agreed with the Riccarton Bush Trust Board (plan attached).

Construction and illumination costs have been established at $80,000. A contingency of $5000 is recommended for development costs.

A resource consent is needed for the path, and at the time of report writing, is being applied for under the name of the Riccarton Bush Trust Board.

The Riccarton Bush Trust Board will need to let the tender for path construction.

The Riccarton Bush Trust Board are fully aware of these conditions and constraints, and are working within them.

Legal opinion (to be confirmed by report from Legal Services) is that the Council can make a grant to the Trust Board of a quantity of money, which the Riccarton Bust Trust Board would then use for development and construction of the path. At the time of report writing, the office solicitor is developing a report on the exact legal stance and process to make this grant, which will be advised to the meeting.

However, in anticipation of this legal comment, it is recommended that the City Services Committee approve a grant of $85,000 under S.601(5)(a) of the Local Government Act to the Riccarton Bush Trust Board for the development of the new cycle path.

TUAM STREET CYCLE LANES

When Tuam Street had no cycle lanes, a survey was conducted of the perceptions of cyclist comfort and safety on the road. Now that the lanes have been in place for approximately 6 months, a similar survey has been conducted.

The results indicate that cyclists are generally more comfortable on the road when cycling between blocks with the cycle lanes installed. In all situations where the cycle lanes are marked straight through an intersection, cyclists are a lot more comfortable than without the lanes. However, the cycle lanes offer no additional support for right turners in any situation, and the survey results reflect this.

In general, it can be concluded that the cycle lanes are a success in raising cyclists perceptions of safety and comfort on the road, although they do not cater for every situation. Whether they are physically and statistically any safer will not be able to be determined for a couple of years until collision trends are clear.

These cycle lanes represent the first example in Christchurch, and perhaps New Zealand, of lanes that run from intersection to intersection. As a result of the survey findings, a paper will be written and presented to the LTSA workshop in the end of October.

COLOURED CYCLE LANES

The possibility of colouring cycle lanes has been discussed at the City Services meetings before. Several photo-mock ups were presented at the meeting indicating different coloured surfaces for Kilmarnock Street and Tuam Street cycle lanes. The Committee preferred the red surface.

CENTRAL CITY CYCLE FACILITIES

At its August meeting, the City Services Committee considered a report on options for increasing cycle facilities within the central city. The option decided was for cycle positions to be marked at all signalised intersections in the city, and Manchester, Cashel, Armagh, Antigua and Victoria Streets to be marked with cycle lanes. A report outlining the various options and the recommendations of this Committee was presented to the Central City Committee on 2 October. The Central City Committee concurs with the decision of this Committee.

Recommendation: That the Council approve a grant of $85,000 to Riccarton Bush Trust Board for the development and construction of the new cycle path subject to agreement with the Riccarton Bush Trust Board.

 

5. WAIMAIRI ROAD PARKING MATTERS AT 'ISLAND' RR 6309

Officer responsible Author
City Streets Manager Dennis Morgan
Corporate Plan Output: Traffic Signs and Markings

The purpose of this report is to forward recommendations from the Fendalton/Waimairi Community Board and this Committee.

The Board received the following report from its Traffic Safety Committee at its meeting on 30 September 1997:

Further to the decisions made by the Board at its meeting on 5 August 1997, the local residents living in the immediate area of the 'island' had sought a review of the decision to install a 'no stopping' restriction on the east side of Waimairi Road immediately outside their residences.

The residents re-stated their preference for shifting the 'no stopping' lines to the east side of the 'island' and in this regard, traffic and enforcement staff indicated their agreement to such a change being made.

Several members indicated that the Board should be receptive to the residents wishes however the Committee Chairman felt that the existing arrangements should continue to be monitored and reviewed later if need be.

The provision of parking limit lines (parking ticks) to aid motorists and to keep vehicles clear of the vehicle crossings was also favoured.

The Board resolved:

  1. That a 'no stopping at all times' parking restriction be installed on the eastern side of the Waimairi Road 'island' commencing at its southern boundary with Waimairi Road and extending in a northerly direction for 30 metres.

  2. That it be recommended to the City Services Committee that parking limit lines be provided outside Nos. 264, 264a, 266, 268, 270 and 270c Waimairi Road.

  3. That the decision made by the Board on 5 August 1997 ("That a 'no stopping at all times' parking restriction be installed on the east side of Waimairi Road commencing at the southern boundary of 264 Waimairi Road and extending in a northerly direction for 60 metres") be rescinded.

The City Services Committee meeting on 7 October received this report and agrees with the Board's recommendation.

Recommendation: That parking limit lines be provided outside nos 264, 264A, 266, 268, 270 and 270C Waimairi Road.

 

6. COUNCIL INVOLVEMENT IN HOME SERVICES PLATFORM TRIAL: PROGRESS REPORT RR 6257

 

Officer responsible Author
Water Services Manager Allan Watson
Corporate Plan Output: Water Services New Assets Universal Water Metering 9.3.42

The purpose of this report is to advise on the Council's involvement with a trial currently underway in Christchurch (and in other centres) to test customer reaction to the availability in the home of electronic access to a range of services.

1. BACKGROUND

The trial is being supported by a group of companies including Southpower, Powerco, Mercury Energy, Enerco NZ, Westpac Trust, Clear Communications, Christchurch City Council and TVNZ. Each of these companies is offering a service during the trial. In addition another group of companies is offering convenience food, wine and video loan services.

Each customer accesses the desired service through an HSP (Home Services Platform) which is either their home computer or a small screen displaying lines of text. They can also access and control internal home features such as the status of their security system, monitor internal consumption of power or water or use the device to shop, bank or access information.

Power companies are obviously interested in the capabilities of and customer reaction to the system because it will eventually allow customer choice, not only of tariff but even of supplier.

2. CITY INVOLVEMENT

In the City Council's case involvement has been prompted by the opportunity the system offers in two areas: water supply and public information.

For water supply, by connecting the meter into the system a householder or business is able to monitor water consumption, obtain data on previous day/previous week etc, consumption and, in the future, choose to use water at times when there is a price differential that benefits the consumer. Meter reading would be carried out remotely by electronic means and paying for water could also be done by an EFT-POS system that bypassed billing systems. These are possibilities for the future.

For the purposes of this trial, the Water Services Unit has connected meters to the HSP in some 190 of the 194 Christchurch-based trialists and is particularly interested in obtaining actual consumption throughout the day for the variety of participating households - valuable planning information that has previously only been estimated. The Unit will also test householder reaction to a range of charging options.

In the area of public information, notices covering coming events, opening times at libraries and transfer stations, rubbish collection charges etc will be available on screen to test the usefulness to the householder. Again, looking to the future the opportunity to provide such information electronically to all households could provide significant savings over hard copy distribution of messages.

3. PROGRESS

At the time Council involvement was mooted (late 1996) confidentiality surrounding the trial was such that public reporting of the proposal was not possible. Instead, committee chairpersons with a key interest were informed of the proposal and asked to give the go-ahead. Since that time the project has been well publicised under the project name "ORCA" and publicity information is tabled for Committee members today.

The trial is planned to run for four months from early September. However from a water supply viewpoint we are most interested in the summer period and have an assurance that we will be able to continue to record consumption information through to March/April 1998.

As noted above, 190 households have their water meter connected to the "home service platform" and these have been divided into groups to allow consumer reaction to a range of charging options to be assessed. The options are:

(a) Control Group

This group will receive no information about water conservation, will be advised that water consumed during the trial will be paid for exactly as it is at present, ie through rates, whereby they pay an amount each year for water depending on their capital value, and this amount is independent of the quantity of water consumed.

(b) Seasonally Variable Group

In this group, consumers will be advised that during March to October water consumed will cost 20 cents per cubic metre: off peak November-February, 40 cents per cubic metre; and between 6 pm and 9 pm November-February, 60 cents per cubic metre.

(c) Conservation Group - no consumption based charge

This group will continue to pay for water as at present, through their rates as in (a) above but will be provided with water conservation material that focuses on the Christchurch water resource.

(d) Pricing Group

Here, consumers will be advised that their water costs 31 cents per cubic meter and asked to consume accordingly. We will undertake that their charges for the trial will not exceed what they would normally pay but we will pay the consumer for savings achieved over their previous year's consumption for the same period.

(e) Pricing Group with Conservation Education

This group will have the same arrangement as in (d) above but also receive conservation material that focuses on the Christchurch water resource.

The Department of Resource Management at Lincoln University has been engaged to help the Unit analyse the large amount of data that will be produced during the trial (800,000 meter readings) particularly to ensure the integrity of statistical analyses and to report findings in a statistically meaningful way. They will supplement the statistical data with survey information and will also survey a sample of the population who are not involved in the trial to determine attitudes to Christchurch water issues amongst a control group of non trialists.

4. RESULTS

The immediate gains from the trial will be water consumption information at half hour intervals for a wide range of households and over a six month period that includes summer. This is valuable planning data.

On a longer time scale, the trial is mimicking water supply metering technology that will one day:

Eliminate the need to read meters on site.

Eliminate billing where consumption-based charging is in place.

Allow for a variable tariff.

Provide information to the consumers that will allow them to monitor consumption and make choices about the advisability of (say) garden watering at a certain time of day, thereby levelling consumption peaks.

Because water in Christchurch is cheap, it may be some time before the benefits of this technology exceed the costs. For power on the other hand, which costs 15 times as much as water for the average householder, implementation is much more attractive. It could, for example, provide the customer with the ability to choose between power suppliers depending on who is offering the best tariff at the time.

Results of the trial will be reported to the Committee in due course.

Recommendation:
  1. That it be noted that the trial as it applies to water does not imply any intention to adopt consumption based charging for the residential consumer.

  2. That the pricing component of the water supply trial be deleted.

 

7. WATER SUPPLY TO FERRYMEAD WARD RR 6271

Officer responsible Author
Water Services Manager Eric van Toor
Corporate Plan Output: New Capital Works, Water Supply

The purpose of this report is to outline the planning work undertaken with respect to improvements to the water supply system serving the Ferrymead Ward.

BACKGROUND

The residential district east of the Ferrymead Bridge is supplied with water by pumping from the Woolston/Linwood area and is reliant on two pipes crossing the Ferrymead Bridge.

The present population of 11,300 (1996 census estimate) living east of the Ferrymead bridge is projected to increase to up to 16,000 over the next 20 years. To cater for this growth and give additional security to the area, a five year capital investment programme commencing with the doubling of the McCormacks Bay reservoir capacity to 10,000m3 was initiated in 1994/1995. The reservoir does not recover completely after peak days at present, a situation made worse when pressures at Woolston and St Johns pump stations drop below those required to pump water across the bridge due to high city demand.

The final stages are the upgrading of the St Johns pump station and reticulation along Humphries Drive from St Johns to the Ferrymead Bridge, currently programmed for the next two years ($300,000 in 1997/1998 and $1.1M in 1998/1999). In addition the Woolston (Glenroy Street) pump station is programmed for replacement in 2000/2001.

FURTHER INVESTIGATIONS

Over the past year further planning has resulted in conceptual changes to the project. The study included a detailed investigation of the option of locating a new pump station on the South Shore dedicated to supplying the area east of Ferrymead through a pipeline under the estuary to Shag Rock. This concept is not new. A consultants report in 1975 investigated the proposal of an estuary pipeline but the pipeline was not constructed because of the high cost. Recent advances in directional drilling have made this option much more cost effective.

The investigation included:

RESULTS OF THE INVESTIGATION

The computer model of the area's water supply indicated that, if the Woolston area continues to be the sole source for the Ferrymead Ward, the proposed new main in Humphries Drive can be delayed to near the end of the end of the ten year works programme, provided the necessary pump station pressures can be maintained. This would allow more urgent system upgrading elsewhere in the city to be brought forward and should enable the mains upgrading to be coordinated with roading work planned in the long term for the area. Other reticulation below the lower level reservoirs is generally adequate to meet the planned long term expansion east of the bridge.

The alternative of having a dedicated pump station on the South Shore has the advantages of not being totally reliant on the Ferrymead Bridge, and of putting less stress on the Woolston aquifers. Groundwater in the Woolston area is the subject of special consideration by the Regional Council because of declining groundwater levels and increasing salinity in the first aquifer. Deeper aquifers are either non-existent or comparatively low yield because of the proximity to the volcanic rock of the Port Hills. However the South Shore pump station option is $400,000 to $600,000 more expensive (depending on site location) than upgrading St Johns and the Humphries Drive Main. A major cost is the 300 pipe under the estuary, estimated at $500,000.

There are also environmental factors and additional risks associated with the South Shore option. The results of the electromagnetic sounding survey were inconclusive and other information on the hydrogeology of the area is scant. Yields from wells in the spit may be low and the pump station may be totally dependant on the first aquifer which could lead to quality problems in the long term. The issues associated with the two options are summarised in the table below.

TABLE: MAIN ISSUES FOR FERRYMEAD WARD UPGRADING

Issue Existing Pump
Stations 		Potential Southshore
Pumpstation
Security of Supply to Sumner Reduced when city pressure drops and becomes more reliant on reservoirs; reliant on Ferrymead Bridge in an emergency Excellent if the new pump station is a dedicated supply to Sumner.
Aquifer knowledge Excellent for aquifers I-IV Many unknowns which require further investigation
Aquifer condition Some indications of stress and contamination in first aquifer Saline risk for I-II aquifers, other conditions not known
Resource Consents required Land use and abstraction Land use, abstraction and Marine consents
Environmental issues Interference between wells including BPDC well, but unlikely to prevent issue of consent Sites are close to foreshore dunes, main laying is through sensitive bird roosting area
Site issues Land available for new wells Limited land available, construction to allow for Tsunami and liquefaction
Cost Estimate
Headworks
Reticulation
$600,000
$600,000
$800,000
$800,000 to $1,000,000 (depending on location)

CONCLUSION

The South Shore options have higher costs and greater risks than pumping from Woolston that do not appear to justify the advantages of increased security and reduced aquifer loading in the Woolston area. Nor do these advantages suggest that a test bore is likely to be a worthwhile investment.

A THIRD OPTION

Having reached that conclusion, efforts then focussed on how to improve the security of supply and reduce dependence on aquifers in the Woolston/St Johns area within the existing framework. This could be accomplished by confining the zone by shutting seven valves and installing an electrically operated valve to allow flow to or from the rest of the central zone when and if required. While the existing peak capacity of the Woolston and St Johns pump station is already well matched to the peak demand of the Ferrymead Ward, demand from the rest of the city reduces the pressure to a point where no water flows across the Ferrymead Bridge. Isolating the zone solves this problem, as well as enabling the additional capacity to be located further to the north-west, closer to where the demand is.

Placing the additional capacity at several existing pump stations elsewhere in the city (at Aldwins Road, Kerrs Road and possibly Carters Road) also has financial advantages. Better use of existing facilities (than locating all the additional capacity at St Johns) is likely to lead to significant savings on the budgeted cost of $600,000 for the St Johns upgrading. The Humphreys Drive main can safely be delayed for 5 to 10 years, particularly if pressures in the reticulation system can be maintained.

There are operational advantages during low to medium demand periods in maintaining the existing single pressure zone system. Efficiencies can be optimised by isolating the "Ferrymead Zone" only in summer months, for example to coincide with daylight saving. It is planned to trial the separation this summer.

Recommendation:
  1. That the district east of the Ferrymead bridge continue to be supplied entirely from the Woolston/Linwood area.

  2. That the continuity of supply to the Ferrymead ward be protected by partially isolating the St Johns and Woolston pumping stations from the rest of the city.

  3. That additional capacity of about 200 litres per second be provided at Aldwins and Kerrs Road pump stations over the next two years rather than the upgrade of 270 litres/sec proposed for St Johns.

  4. That the need for further capacity, probably at Carters pump station, be assessed at a later date.

 

PART B - REPORTS FOR INFORMATION

8. CHAIRMAN'S REPORT ON VISIT TO UNITED STATES CITIES

Committee Chairman, Councillor Denis O'Rourke, visited a number of cities on the West Coast of the United States on Saturday 2 August to Wednesday 13 August 1997 in the company of Mr Mark Prain, the General Manager of the Sustainable Cities Trust. The prime purpose of the trip was to attend a conference in Colorado Springs on the subject of business and the community. The opportunity was taken also to visit San Francisco, Seattle, Portland and Denver. Councillor O'Rourke's report to the Committee covered many issues including transportation systems, reuse and recycling, new technologies in the recycling industry and pedestrian amenities.

The Committee agreed to hold a seminar and invite members of the Environmental and Central City Committees to discuss the broad concepts of the matters discussed in the report with respect to transport systems for the central district business of Christchurch.

 

9. FIRE SERVICE BUDGETARY LIMITATIONS RR 6277

The Chief Fire Officer Canterbury Area, Brian Joyce, responded to the Council's submission that the fire service may consider removing the pump appliance from the Woolston Station to meet budget requirements. He advised that the consultation process has been put on hold while the newly appointed Fire Service Commission has a chance to assess the situation and formulate their own strategy for the future. He undertook to keep the Council informed of future developments and provide the opportunity for participation in any future consultation process.

 

10. CO-ORDINATING COMMITTEE FOR TRAFFIC SAFETY RR 6251

The Committee received information from the September meeting of the Co-ordinating Committee for Traffic Safety including reports on education and awareness campaigns.

 

11. REPORTING OF TRANSPORT INITIATIVES RR 6252

Over the last few months the City Streets Unit had been reviewing its structure with a view to ensuring a high degree of flexibility and responsiveness to transport changes. The result of these changes has been to more clearly define the planning and service delivery roles within the Unit and to ensure that there is a balance in the transport planning area which is targeted to achieving the agreed transport outcomes for the city. The new unit structure became operative on 1 October 1997 and the Unit is now housed totally on the third floor of the Civic Offices. A number of people previously based at service centres will now be based at the Civic Offices. The result for the City Services Committee will be a more regular reporting of a greater variety of transport initiatives.

 

12. CYCLE STEERING GROUP RR 6266

Mr Dave Kelly, a member of the Cycle Steering Group, reported on major matters being considered by the Group. The group's views on a number of cycling issues were outlined including the progress on the Council's Cycle Strategy adopted in 1996, consultation processes and the proposed Papanui Railway bike path. The Committee requested that the City Streets Manager institute a suitable procedure to implement the Cycle Steering Group's recommendation that the Cycle Planning Officer or his nominee be consulted on all City Streets roading proposals.

 

13. CORPORATE PLAN MONITORING REPORT 1996/97 - WATER SERVICES UNIT

Consideration of the report of the Water Services Unit had been deferred from the meeting of the Committee on 18 September. The Committee sought a report from the Water Services Manager on Regional Council progress in monitoring the use of water from the aquifers of the Waimakariri River. The Committee requested also that more emphasis be given to the note on rate assessments reporting annual water usage on properties.

 

PART C - REPORT ON DELEGATED DECISIONS TAKEN BY THE COMMITTEE

14. KERBSIDE RECYCLING - CRATES TENDER RR 6213

The Committee was advised of the details of tenders received for the supply and delivery of crates for use with the kerbside recycling contract.

TENDERS RECEIVED (FOR SUPPLY OF 120,000 CRATES)

Company Tender Value % Recycled Plastic Proposed
     
Roto-Form Plastics $584,676 15% mostly sourced in Christchurch
Reese Viscount $612,000 45%, 15% sourced in Christchurch
Carter Holt Harvey $624,000 100% recycled. 100% will be collected in Christchurch. Timeframe may mean some Auckland collected plastic will be used for the actual manufacture and the Christchurch collected plastic would then be used for other products.
PDL Plastics $741,600 100% recycled, 17% local product

The Tender Evaluation Panel for the new kerbside refuse and recycling materials collection contract had considered the tenders and viewed the alternative crates offered. The Carter Holt crate has been widely used in New Zealand for up to five years and has the following advantages:

It has the highest recycled plastic content (100%)

It has a proven track record of being extremely robust

It stacks well; this is important for storage handling

It is aesthetically pleasing

A sum of $670,000 is provided for kerbside recycling crates in 1997/98.

The Committee resolved that the Carter Holt tender of $624,000 for the manufacture and supply of crates be accepted.

 

15. MILTON STREET/SELWYN STREET INTERSECTION PROPOSED TRAFFIC SIGNALS RR 6169

A report on the proposal to install traffic signals at the Milton Street/Selwyn Street intersection was presented to the Spreydon/Heathcote Community Board at its meeting on 2 September 1997. The layout of the lane markings with this proposal meant there would be a loss of two car parks on Milton Street near the Super Seven premises and one park directly across the road (outside the service station).

The owner of the Super Seven, Mr McQuilken, conveyed his concerns at the loss of the car parking to the Board as it could effect his business. The Board resolved:

  1. That the Board support the proposal for installing traffic signals at the Milton Street/Selwyn Street intersection to address the high occurrence of crashes there and the difficulty that pedestrians have in crossing Milton Street.

  2. That the City Streets Unit be requested to seek ways to improve the parking available outside the Milton Street Super Seven.

The City Services Committee at its meeting on 9 September supported the installation of the traffic signals. The Committee also requested that before implementation the results of the investigation by City Streets Unit into ways of improving parking, including recessed parking, and discussions with other local businesses be reported back to the Spreydon/Heathcote Community Board and the City Services Committee.

Design work has been undertaken with two additional options incorporating recessed parking bays evaluated. The options for the traffic signals were:

Option 1 The original intersection layout as shown.

Option 2 A new intersection layout with a recessed parking bay, near the Super Seven premises, outside Nos. 112 and 116 Milton Street.

Option 3 A new intersection layout with a recessed parking bay, on Milton Street, outside the Service Station and directly across the road from the Super Seven.

The Community Board and Committee were advised that both Option 2 and Option 3 increase the initial cost estimate by $40,000 which lowers the benefit/cost ratio to 18. This ratio still allows either of both options to be subsidised by Transfund New Zealand, however, as the cost is higher the project will need to be resubmitted to them for approval. The extra cost for these options is not included in the 1997 City Council Plan.

Disbenefits of Options 2 and 3 include:

More parking manoeuvres close to a signalised intersection. Of particular concern is motorists using the front park may have to enter it by backing into oncoming traffic.

The opening of car doors and people exiting on the traffic side will result in problems with both vehicles and cyclists approaching the intersection.

From these disbenefits, Option 1 is the safest option for the installation of traffic signals.

A report, outlining all three options, was presented to the Spreydon/Heathcote Community Board at its meeting on 30 September.

The Spreydon/Heathcote Community Board recommended to the Committee that Option 1 be adopted for the installation of traffic signals at Milton/Selwyn Street intersection.

The City Services Committee resolved that the recommendation of the Spreydon/Heathcote Community Board be adopted.

 

16. CAPITAL PROGRAMME REVIEW PROJECT RR 6256

The Committee was advised of the proposed process for determining the capital projects to be smoothed or deleted to meet the goal of reducing the Council's capital expenditure programme by $15 million.

It was resolved that a special meeting of the Committee be held at 1.00 pm on 30 October 1997 to prioritise projects to be smoothed and to consider possible savings from the Woolston/Burwood expressway and the new joint venture landfill.

The meeting concluded at 6.55 pm

 

CONSIDERED THIS 22ND DAY OF OCTOBER 1997

 

MAYOR

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