2014-12-09 Infrastructure & Services Committee Agenda

INFRASTRUCTURE & SERVICES COMMITTEE MEETING AGENDA                              9 DECEMBER 2014


Other financial risks include those that arise from conflicts between operation of the landfill
site by Transpacific and construction of the project. The tender has sought to mitigate the
risks as much as possible by ensuring adequate provision for working around the existing
operations.

Given the above this report seeks an approval from Council to increase the budget for the
civil works based on the below.

Bio Basin

Contract Price                          $369,692
Contingency 5%                           $18,485
Staff allocation                          $7,500
Consultant attendance                     $7,400
SUBTOTAL                                $403,077
Budget                                  $446,900

NET                                      $43,823

HES Basin

Contract Price                          $470,817
Contingency 5%                           $23,541
Staff allocation                          $7,500
Consultant attendance                    $12,900
SUBTOTAL                                $514,758
Budget                                  $297,000

NET                                    -$217,758

Overall combined shortfall            -$173,934 (round to -$175,000)

In addition to seeking funding for the shortfall to allow the construction of the two civil works
projects under a single contract, this report seeks to obtain additional funding for the
specialist design and construction of improved chemical dosing and monitoring equipment.
This work is outside of the original scope of contract 1415T006.
This element of the overall project is estimated at costing $120,000 after applying a 20%
contingency on the former estimates developed in 2013. It was originally considered that the
existing HES dosing and monitoring equipment would be operational into future financial
years.
Advice from the Waste Management Section is that new equipment is required as soon as
practically possible, as existing equipment is failing and will not provide the optional level of
chemical dosing and monitoring required in conjunction with the improvements to the HES
basin to meet landfill licence requirements.
Combining the shortfall for the civil works project and the funds required for the dosing and
monitoring equipment, the total additional funds sought is $295,000.
Corporate Services Department (Wayne Jensen) has confirmed that funds exist within the
Waste Management Reserve to cover the additional amount of $295,000 in capital costs
associated with the delivery of the project. The operating position should not be impacted by
the transfer for capital works expenditure. Budget changes to be included in the next
quarterly budget review.




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