Dear Manawatu District Council,

I am participating in the Himatangi Beach Sewerage Scheme and am interested to understand why the capital contribution per property differs from that proposed in 2010.

My starting point is your letter of 26 April 2012 (ref 4/3164F), in which you listed the main reasons.

In order to get a concrete explanation of the cost increase, I wish to request the following information for each constituent element:
- the amount
- why it is necessary
- why it was not foreseen.

I would like copies of the original documentation wherever possible please, irrespective of length or complexity.

Yours faithfully,

Jack Whitehead

Dear Aimee Flanders,

Your estimate of three hours is prima facie questionable. Why does the information not exist ready to hand ? Given my presumptions, I consider that I need some justification of your charge before I can agree to pay it.

Yours sincerely,

Jack Whitehead

Dear Aimee Flanders,

Thank you for your explanation.

I can confirm that I will pay the charge.

Yours sincerely,

Jack Whitehead

Dear Manawatu District Council,

You have not provided the information I requested.

Take for instance the cost of land to be purchased for the wastewater treatment plant. You state that you omitted this from the 2010 estimate; you don’t state the price paid, let alone justify that price; you don’t explain the omission. Relevant documents are ready to hand, such as the sale and purchase agreement, valuations, and the reports presented in support of the request for financial approval of the 2010 estimate and of the land purchase.

My request seems to me clear and specific. In particular, the concrete interpretation of “constituent element” must emerge, as a process of operationalization, from the exercise of providing full answers to the three questions put.

A provisional list of elements can perhaps be taken from those you have already mentioned: land purchase for the wastewater treatment plant; the right to discharge treated water on private land; easements for pipelines and access; legal fees; project management costs; contract management; on lot drainage surveys and design; obtaining individual building consents for each connecting property; preparing connection agreements; construction contingency; the number of properties connecting to the scheme; capped subsidy; GST as at 2010; increase in GST; inflation; discount for joining scheme before 31 Dec 2012; cost savings resulting from allowing two properties to drain to a single PSU; cost savings due to change to a pond treatment system with floating wetland.

I am confident that you will deal with this matter promptly.

Yours faithfully,

Jack Whitehead

Dear Manawatu District Council,

At this point I need you to tell me when you will provide the information I requested. To quote the Ministry of Justice site: “Your request must be answered within 20 working days. The time limit for answering requests can be extended in some cases but if this happens you must be told of the extension and the reasons for it.”

Yours faithfully,

Jack Whitehead

Dear Manawatu District Council,

Thank you for your email, which I reproduce below.

"
Dear Mr Whitehead

Thank you for your email dated Monday 7 October 2013.

My reading of your initial request was that you wanted to know “why the capital contribution per property differs from that proposed in 2010”. You also stated that you wanted a “a concrete explanation of the cost increase” and you requested “the following information for each constituent element - the amount, why it is necessary, why it was not foreseen”.

In my letter dated 27 September 2013 (as attached), I outlined what I believed were the answers to your questions.

The letter detailed the history of the Ministry of Health subsidy, the previous estimates, the procurement of the final contract and the finalised costings. The letter also had a table separating out the four key constituents of the project – on-lot works, community reticulation, wastewater treatment and irrigation and non-construction costs. This table clearly showed the 2010 cost vs. the 2012 cost.

There were a number of factors that contributed to the increase in cost. These include:

· There was insufficient budget initially allowed for to obtain the resource consent for the discharge of treated wastewater.

· There was insufficient budget initially allowed for to cover non–construction costs.

· There was insufficient budget initially allowed for to purchase the land for the Wastewater Treatment Plant Site. Please note that the purchase price of the land with includes a perpetual right to discharge wastewater onto farmland not in council ownership and remains confidential at the request of the vendor.

· No allowance was initially made to obtain individual building consents for each connecting property.

· No construction contingency was included in the initial estimate.

· The Ministry of Health subsidy was initially 50% of the initial estimated scheme cost at the time when the subsidy was awarded. The subsidy amount became capped at a maximum of $3,300,000 at the discretion of the Ministry of Health. As the total cost of the project increased the non-subsidised portion of the cost grew, resulting in a higher contribution of the total payable by each connection property.

· The initial figure publicised was exclusive of GST ($6,470 excl. GST) whereas the final scheme connection cost was inclusive of GST ($9,775 incl. GST).

· GST rose from 12.5% to 15% over this time to compound the effect.

Given the detailed letter you received dated 27 September 2013 and this e-mail I now consider the matter dealt with.

If you wish to discuss this further please contact Aimee Flanders on 06 323 0000 to arrange an appointment to meet with me and my Himatangi Beach Wastewater Scheme project team at the Council office in Feilding for a round table discussion.

Regards
Hamish Waugh | Infrastructure Group Manager

"

You surely must know that you haven't provided the information I requested. Accordingly my next step will be to lay a complaint with the Ombudsman.

Yours faithfully,

Jack Whitehead