Committee: Infrastructure and Transport
Date: 28 November 2024
Committee
Author:
Jackie Colliar
Authoriser: Andrew Parsons
Position:
Technical Director Strategic
Position: General Manager
Waters
Infrastructure and Assets
Report Name: Wastewater Treatment Plant Master Planning, Consenting and
Designation Professional Services Contract Award
Report Status
This report is taken as a publicly excluded item to
enable Council to carry out negotiations.
Purpose - Take
1.
To inform the Committee on the progress of the Southern Wastewater Treatment Plant
Project.
2.
To seek approval from the Committee to delegate authority to the Chief Executive to negotiate
and award contract CON00002395-2023 Southern Wastewater Treatment Plant Concept
Design and Consenting to the preferred consultant for a value not exceeding s7(2)(b)(ii)
Staff Recommendation - Tuutohu-aa-kaimahi
3. That the Infrastructure and Transport Committee:
a) receives the report;
b) delegates authority to the Chief Executive to negotiate and award contract CON00002395-
2023 Southern Wastewater Treatment Plant Concept Design and Consenting to the
preferred consultant identified through the procurement process subject to the Approved
Contract Sum not exceeding s7(2)(b)(ii)
c) notes that:
i. a robust procurement process has been adopted to identify a preferred consultant for
the proposed Professional Services Contract to
Plan, Designate and Consent the
construction and operation of a new Southern Wastewater Treatment Plant and
associated discharges and activities;
ii. at the time of report writing, the tender evaluation of three short-listed consultants for
the proposed Professional Services Contract
was progressing and the preferred
consultant and contract value were unknown;
iii. the verbal update provided on the tender evaluation (including preferred consultant
and likely contract value);
iv. the 2024 – 2034 Long-Term Plan includes $7.518 million budget to deliver the project
to prepare and submit the Notices of Requirement and Resource Consent Applications
for the Southern Wastewater Treatment Plant in Years 1 to 3;
v. notes that this contract would be novated to a Waters Council Control ed Organisation
should Council decide to establish a Council Controlled Organisation; and
d) notes that the decision and information in relation to this matter remain publicly excluded
for the reasons outlined in the report.
Executive Summary - Whakaraapopototanga matua
4. The Southern Wastewater Treatment Plant (SWWTP) Project has been underway since 2022 and
has included technical assessments, site feasibility assessments, mana whenua and iwi
engagement, land purchase and confirmation of a preferred Wastewater Treatment Plant
(WWTP) site.
5. The project is now ready to engage professional services to undertake
Master Planning, Concept
Design, Designation and Consenting of the Southern Wastewater Treatment Plant on land owned
by Council at
131 Raynes Road, Rukuhia.
6. Procurement of the proposed professional services package has been delayed by more than 12
months for several reasons including the need for funding to be confirmed through the Long-
Term Plan (LTP) process; for the preferred WWTP site to be identified; and for the Co-Lab
Professional Services Panel procurement process to be completed.
7. A robust procurement process has been adopted for the proposed Professional Services
Contract. The process included a public Expressions of Interest process, shortlisting of
consultants and a further Request for Proposal (RFP) process. Submission to the RFP process
closed on 12 November 2024, and at the time of report writing, were under evaluation by a
tender evaluation team of subject matter experts.
8. In order to expedite contract award following completion of the tender evaluation process and
subsequent negotiations with the preferred consultant, staff recommend delegating authority to
the Chief Executive to award the CON00002395-2023 Southern Wastewater Treatment Plant
Concept Design and Consenting contract subject to the contract value being within existing
budget al ocations and not exceeding an Approved Contract Sum of s7(2)(b)(ii)
9. Budget is available for the contracted works within financial year 2024/25 (Year 1) and 2025/26
(Year 2) of the 2024-2034 LTP.
10. The proposed Professional Services Contract does not commit Council to detailed design or
construction of the Plant.
11. Staff consider the decision in this report has low significance and that the recommendations
comply with the Council’s legal requirements.
Background - Koorero whaimaarama
Southern Metro Wastewater Detailed Business Case
12. The Southern Metro Wastewater Detailed Business Case (DBC) was approved by Council on 19th
May 2022. The Business Case confirmed the preferred wastewater (WW) servicing solution for
the Southern Metro area which includes a standalone Cambridge WWTP (consented in 2024 and
under construction) and a new WWTP south of Hamilton to meet immediate needs of
surrounding areas and medium to long-term needs of Hamilton.
Page 2
13. A Memorandum of Understanding (MoU) was developed amongst the Project Partners
(Hamilton City Council, Waikato District Council, Waipaa District Council and Waikato-Tainui) to
support the implementation of the approved DBC. The MoU was signed by the parties 2023.
14. The MoU confirms the strategic WW treatment projects needed for the Metro Area and
minimum performance standards for those plants. The MoU also establishes the foundation of
partnership under which the projects wil be governed.
Southern WWTP Project
15. Hamilton City Council (Council) as lead for the SWWTP project has been progressing WWTP site
selection, site feasibility, due diligence, and background technical assessments in partnership
with mana whenua.
16. In September 2022 and November 2022 Council acquired two properties on Raynes Road. These
properties together with three other short-listed sites were identified for further assessment,
due diligence, and assessment for suitability for the Southern WWTP.
17. Project progress updates including the technical investigations, assessments and engagements
completed to support the project to date have been reported to this Committee, the Strategic
Growth and District Plan Committee and the Co-Management Committee since late 2022.
18. The Council owned properties on Raynes Road were confirmed as the preferred WWTP site in
August 2024. Identifying the preferred WWTP site required several additional technical
investigations and discussions with Iwi and mana whenua and Council Subject Matter Experts.
19. The preferred site was confirmed with unanimous support of the project’s Mana Whenua and Iwi
partners in late August 2024 which was supported by both technical and cultural assessments.
20. These preferred WWTP site, technical investigations, assessments, and project delivery
structures are key inputs to work that the proposed Professional Services Contract will deliver.
Proposed Professional Services Contract
21. An outline of the scope of work covered by the proposed Professional Services Contract follows:
i. Background review and report (re-confirm project staging, land use and demand
assumptions);
ii. Discharge Options and Investigations and selection of preferred discharge method and
locations;
iii. Master Planning for the entire site from Stage 1 (5000 Population Equivalent) to the
ultimate Stage 5 WWTP (servicing a future projected 200,000 population equivalent
beyond 2060);
iv. Refinement of the concept design for Stage 1 – 2b WWTP. Preliminary design for
discharge outlet/structure. Concept design of the surrounding conveyance network wil be
included as a provisional item;
v. Engagement with mana whenua, stakeholders, and the community;
vi. Obtaining designations for the SWWTP (Stage 5), the discharge outlet and associated
conveyance to the plant, and resource consents (including discharge to surface water) up
to Stage 2b.; and
vii. Associated technical investigations to support the above applications.
22. The Project is expected to span a 2-year period from award to lodgement of the consent
applications.
Page 3
23. Subject to performance, any post lodgement and hearing support wil be negotiated with the
incumbent provider.
Procurement Process 24. The procurement process for the proposed Professional Services Contract has been conducted In
accordance with Council’s Procurement Policy and Procedures Manual, which involved a public
Expression of Interest (EOI) and shortlisting process and a Request for Proposal (RFP) process.
25. A Request for Expression of Interest (REOI) was issued publicly on Government Electronic
Tenders Service between 9 November – 8 December 2023 inviting suitably qualified and
interested Professional Services Consultants to a shortlisting process.
26. Conforming expressions of interest were received from consulting firms; Aecom, Jacobs,
Aurecon, Stantec, GHD and Beca.
27. The Expressions of Interest were evaluated and three companies s7(2)(b)(ii)
Beca)
shortlisted to participate further in the procurement process. The RFP was released to the three
shortlisted companies on 3 October 2024.
28. It was anticipated that the procurement approach will deliver economic benefits, bring extensive
local experience, and deliver strong environmental and mana whenua partnership outcomes as it
has attracted companies that are familiar and capable with this work and are local to Hamilton.
29. Release of the RFP documentation to the short listed companies was delayed for several reasons:
i.
Awaiting confirmation of funding: Following the REOI process above, it was anticipated
the RFP process would be completed and ready for award early July 2024, subject to LTP
funding. Funding for the planning phase was confirmed on 1 July 2024;
ii.
Preferred WWTP Selection: Staff considered it important that the preferred WWTP site
was confirmed before the RFP was issued to focus the scope of the work being sought
from consultants; and
iii.
Co-Lab Professional Services Panel Procurement Process: Co-Lab has recently refreshed
the professional services panel contract arrangements. Advice from the internal
procurement team was that this contract should adopt the new conditions of contract
developed to support the new Professional Services Panel framework. The RFP was not
released until it was confirmed the three shortlisted consultants were on the Panel. If the
shortlisted consultants were not all on the Panel, an alternative form of contract may have
been required.
30. Submissions responding to the RFP closed on 12 November 2024. A site visit and interactive
meetings were held with each short-listed consultant prior to the submissions closing date. The
submissions are being evaluated by a Tender Evaluation Team (TET) made up of subject matter
experts and supported by our internal procurement staff. Each short-listed consultant will be
interviewed and provided time to present their proposal to the TET between 20 - 22 November
2024.
31. The tender evaluation is using the Weighted Attribute method. The evaluation will consider
methodology, skills , systems and cost. The TET are programmed to complete their moderation
and evaluation by 27 November 2024. Fol owing the TET recommendations, staff expect to enter
into negotiations with the preferred consultant prior to completing the contract award
recommendation.
Page 4
Discussion - Matapaki
32. The proposed Professional Services Contract will be commissioned under the new Waikato Local
Authority Shared Services (Co-Lab) Professional Services Panel Agreement 2024 terms and
conditions, with a contract period of 24 months.
33. Staff are working through the tender evaluation and are expected to complete their
recommendation report to award the contract by 13 December 2024.
34. The Project is currently 6-months behind schedule due to aforementioned delays in
procurement.
35. Staff are seeking delegation to negotiate and award this contract before the Christmas shut-
down period to enable certainty of the outcome before the end of the year and before key staff
and decision makers go on leave over the December – January period.
36. A pre-Christmas award will minimise further lost time over January 2025, and enable
administrative set up tasks to be finalised so the Project team can commence in earnest on
return from leave in February 2025
37. Delegation to the Chief Executive to award the contract is sought as:
i. The next Committee meeting is not scheduled until March 2025, and the next Council
meeting is not scheduled until February 2025, therefore seeking approval through that
meeting would further delay the project;
ii. The value for this proposed contract is anticipated to be greater than s7(2)(b)(ii)
for award of tendered
contracts; and
iii. In accordance with HCC’s Procurement Policy and Procedures Manual, the contract will be
procured via a public Expression of Interest and Shortlisted process.
38. The recommendations in this report support HCC’s commitments in the first 2 years of the 2024-
2027 Long-Term Plan, and Infrastructure Strategy 2021-2052.
39. Consenting a new WWTP is expected to generate a high level of localised public interest. In
March 2024 Council proposed the SWWTP and Pukete WWTP projects be added to the Fast Track
Consent Bill for consideration. Neither project was successful in making the initial list of Fast
Track Projects to be included in the Schedule for the Bil . The Future Proof partners have written
to Minister Simon Bishop requesting reconsideration of the Southern WWTP. The outcome of
that request is not yet known.
40. In the event the Act is passed, a future application may be made. This flexibility is factored into
the scope of work for the proposed Professional Services Contract.
41. Through the Government released Fast Track list of projects, the address of this site is currently
in the public arena. Despite staff attempts to have sensitive information redacted, the address
remains on their website. While no public enquiries have been received by Council at this time,
Staff want to move quickly on awarding the contract, so they can proactively manage the
communications and engagement around the Project as an early priority.
Options
42. If the recommendation to delegate award of contract to the Chief Executive is not approved, a
report seeking approval to award a contract will need to be presented to Council in February
2025 or the Infrastructure and Transport Committee on 11 March 2025. This will result in delays
to award the tender, and consequential delays to the project.
Page 5
43. The risks to Council if the recommendation to award the contract for this scope of work is not
accepted are outlined in Para 57 below.
Financial Considerations - Whaiwhakaaro Puutea
44. The 2024-2034 LTP (FY24/25 and FY25/26) includes $7.518million budget to deliver the Notice of
Requirement and Resource Consents Applications for the Southern WWTP and associated
discharges.
45. In addition to this budget, $1.224million of FY23/24 budget has been deferred to this current
financial year’s $FY2/25, providing a total approved project budget of $8.742million.
46. The approved project budget includes up to
for the scope of work captured by the
proposed Professional Services Contract. The remainder of the budget includes provision for staff
time cost, public engagement, mana whenua representation, legal costs, and other advisory
services (e.g. independent technical review).
47. The approved Southern WWTP project budget, forecast spend and associated variances across
the first three years of the LTP are summarised below.
Capital Expenditure
FY24/25
FY25/26
FY26/27
3-year Total
Deferral from FY23/24
$1.224milion
2024-2034 LTP Approved $3.15million
$4.368 mil ion
$7.518 mil ion
Funding
Total Approved Budgets $4.374million
$4.368 mil ion
$0.0
$8.742 mil ion
s7(2)(h)
48. Given the delay in releasing the RFP and in awarding the contract, a budget deferral is expected
this financial year and next financial year. This deferral will contribute to the $50.0 mil ion deferral
target included in the financial modelling that supports the 2024-2034 LTP. Note that the
forecast expenditure will be updated following award of the proposed Professional Services
Contract, and the overall budgets updated within the financial system.
Legal and Policy Considerations - Whaiwhakaaro-aa-ture
49. Staff confirm that the recommendation complies with the Council’s legal and policy
requirements. The recommendation to award the contract for the next stage of works
contributes to the following Council Strategies and Commitments:
50. Te Ture Whaimana – the Project will significantly improve the quality of a new treated WW
discharge into the Waikato River catchment. Although a new discharge is being added to the
Waikato River, this project in combination with the Hamilton – Waikato Metro Sub-regional WW
Strategy results in a significant reduction in nutrient discharge to the Waikato River. This project
enables Council to give effect to its commitments to Te Ture Whaimana.
51. He Pou Manawa Ora - the Project provides an opportunity for Council to give effect to all four
Pou within the strategy, in partnership with mana whenua. The Project has been set up to give
particular emphasis to He Pou Manawa Taiao, to recognise the role of Maaori as kaitiaki of the
natural and physical environment, working in partnership to ensure infrastructure planning
Page 6
models high environmental standards, and restoring and protecting the health of the Waikato
River for all.
52. Waikato Sub regional Three Waters Strategic Case (Dec 2019) – the Project aligns with
responding to problems outlined in the strategic case which identified a number of regulation,
compliance and inconsistent management practices have led to variable urban water system
performance across the region, which has adversely impacted the health and wel being of the
Waikato River.
53. Hamilton-Waikato Metro WW DBC (May 2022) – this Project implements the recommendations
of the DBC (Southern) in the form of securing planning, designation and consenting of the new
SWWTP.
54. Hamilton Urban Growth Strategy (Sept 2023) – the Project supports the outcomes of the
Strategy, particularly putting the health and wellbeing of the Waikato River at the heart of our
planning for and the delivery of high-quality WW discharge outcomes. The Project has
opportunities to enhance natural features in and around the site, plan for climate change
resilience and sustainability, and work with our neighbours to provide a metro sub-regional
response to growth and infrastructure.
Climate Change Impact Statement
55. Staff have assessed this option against the Climate Change Policy for both emissions and climate
change adaptation.
i.
An adaptation assessment has been undertaken and the project adequately responds to
climate change risk. By including:
A.
Reduction of the use of potable water input by the potential for re-use of treated
WW and capture of rainwater, including within the processing plant and the
surrounding natural / artificial wetland features and land-based disposal / irrigation;
B.
Design for and storage of on-site stormwater for re-use across the site ;
C.
Tree planting and landscaping of buffer areas around the plant for passive recreation
opportunities, together with ecological enhancement opportunities (flora/fauna);
D.
Broader city-wide benefits by diverting flows away from existing constrained
networks which provide capacity for projected infill and intensification within the
City; and
E.
The new WWTP and conveyance system wil provide new capacity to service existing
parts of the City and accommodate growth in the sub-region.
ii.
An emissions assessment has been undertaken and the project increases and generates
new greenhouse gas emissions, but this can be mitigated, as outlined below:
A. The proposal results in new embodied emissions arising from the construction of a
new WWTP;
B. WWTPs include a number of processes that result in the ongoing release of
greenhouse gas emissions (Methane and Nitrous Oxide, together with Carbon Dioxide
in relation to energy consumption); and
C. The discharge of treated WW to land and water can result in increased environmental
nitrogen enrichment
Wellbeing Considerations - Whaiwhakaaro-aa-oranga tonutanga
56. The purpose of Local Government changed on the 14 May 2019 to include promotion of the
social, economic, environmental and cultural wellbeing of communities in the present and for the
future (‘the 4 wellbeings’).
Page 7
57. The subject matter of this report has been evaluated in terms of the 4 wellbeings during the
process of developing this report as outlined below.
58. The recommendations set out in this report are consistent with that purpose.
Social
59. The project seeks to ensure that before 2050, municipal WW discharges are no longer impacting
on the ability of people to swim and collect kai from the river and connected waters thereby
contributing to the restoration and protection of the health at wellbeing of the river.
60. The next stage of engagement for this project will involve hearing from a number of Waikato
River stakeholders and Rangatahi to bring their voice into the process of consenting the new
plant.
Economic
61. The project will enable a WW solution to provide sufficient capacity to ensure sustainable growth
in the metro spatial area in accordance with growth projection assumptions for the next 100
years. Rapid planned development within the City limits, and more recently the emerging
growth on the fringes of the City around the Airport and Southern links environs are considered
to be best serviced by the proposed sub-regional SWWTP. Capacity constraints in Council’s
existing WW system will be alleviated by the new plant, which in turn enables this growth to be
managed in a strategic and sustainable manner.
Environmental
62. The project wil enhance the quality and extent of aquatic and terrestrial habitat and biodiversity
through the reduction of WW treatment and discharge impacts before 2050. The project has
high potential for a number of habitat and biodiversity restoration opportunities.
63. The project wil result in the creation of wetlands and planted areas to support and enhance the
existing native terrestrial and aquatic flora and fauna on the site and surrounding areas.
64. The project will maximise the efficient use of resources and resource recovery to contribute to
reduction of greenhouse gas emissions from WW treatments systems before 2050.
Cultural
65. The project will result in a WW treatment solution that will contribute to restoring and enhancing
cultural connectivity with cultural sites along the river so that before 2050 Mare, Hapuu and Iwi
access to the river and other sites of significance for cultural and customary practices within the
metro spatial area are no longer impeded by WW treatment solutions.
66. The co-design and partnership approach taken across all levels of the project from Governance
through to site selection, WW discharge optioneering and continuing into the Master Planning,
design and consenting taking a tikanga – based approach to WW treatment reflect Council’s
commitment to upholding its Te Tiriti partnership, Council’s Joint Management Agreement with
Waikato-Tainui, giving effect to Te Ture Whaimana and He Pou Manawa Ora outcomes.
67. The preferred site of the proposed SWWTP is approximately 1km to a site of cultural significance,
the Nukuhau Paa. The cultural impacts of the project are being considered and assessed by the
Kaitiaki Roopuu established for this project under their own framework.
68. This work will be embedded in the next phase of the Master Planning, Concept Design,
designation and consenting for the Plant (including the identification of any appropriate
mitigation and consent conditions).
69. Engagement and partnership with mana whenua representatives is discussed further below.
Page 8
Risks - Tuuraru
70. Risks associated with proceeding include engaging with the public regarding the development of
the SWWTP, and associated challenge with the process Council has followed to arrive at a
preferred site.
71. Robust and defendable technical analysis and decision-making including peer review and legal
review throughout the project development and delivery is a key method to mitigate risk of legal
challenge.
72. Clear communications and engagement strategy and messaging is also an important tactic to
reduce risks of widespread public opposition.
73. Risks associated with not proceeding include:
i.
reputational risk with mana whenua partners who have genuinely engaged and proactively
participated in the process of site selection and WW discharge method and location over
the past 3 years.
ii.
reputational risk of not proceeding with a key project in the Southern Metro DBC as lead
council where other councils have completed their contribution (e.g. Waipaa and
Cambridge WWTP upgrade).
iii.
risk to communications with key stakeholders like WRAL who have proceeded with an
interim WW servicing solution (truck and transfer) with Waipaa District Council until the
Southern Plant is commissioned.
iv.
risk that existing WW network capacity constraints within HCC are exacerbated when
growth within HCC relies solely on Pukete WWTP to manage this demand.
v.
reconsideration of Pukete WWTP upgrade programme to potentially bring forward works
to accommodate demand.
Significance & Engagement Policy - Kaupapa here whakahira/anganui
Staff ha ve considered the key considerations under the Significance and Engagement Policy
and have assessed that the recommendation(s) in this report has/have a low level of
significance.
74. Council has commitments under its Joint Management Agreement with Waikato-Tainui which
have been continued in the Metro Detailed Business Case Memorandum of Understanding
between the Future Proof partners in relation to this project.
75. The first task for this Project was to establish a Project Governance Framework with mana
whenua and Waikato-Tainui to reflect this ongoing commitment. The Project’s Kaitiaki Roopuu of
mana whenua and Iwi representatives has been operating and meeting regularly since November
2022 and making joint decisions at key milestones. These include;
i.
developing the Matariki Framework for site selection, WW discharge method and
location optioneering; and
ii.
the appointment of an author to prepare the Tangata Whenua Effects Assessment
report.
iii.
The Roopuu is also involved in Project risk review meetings and the preparation of joint
media communications where required.
76. Engagement with the Kaitiaki Roopuu will continue into the next phase of Master Planning,
Concept Design, Designating and Consenting the site and discharge. The production of
subsequent sections of the Tangata Whenua Effects Assessment Report wil be completed by
mana whenua representatives, along with input into proposed resource consent conditions.
77. Key stakeholders who have been engaged with over the past 3 years include:
Page 9
i.
Waipaa District Council and Waikato District Council; as project (and funding) partners;
ii.
Waikato Regional Council; as the discharge consenting authority ;
iii.
Waikato Regional Airport; as a key beneficiary of the new Plant, and regarding interim WW
servicing measures to support their Plan Change and Industrial Precinct redevelopment;
and
iv. Waka Kotahi, NZ Transport Agency; as the crown agency responsible for the nearby
Southern Links Transport Network and potential source of land for the new Plant and
associated activities.
78. The following factors have contributed to staff not engaging wider with other River stakeholders,
adjacent landowners or the general public at this time:
i.
The sensitivity of new WWTPs for surrounding residents;
ii.
The uncertainty regarding funding of the Project in Council’s LTP (confirmed in July 2024);
iii.
The time taken to complete the site feasibility and due diligence assessment and cultural
effects assessment to determine a preferred site (August 2024); and
iv. Completion of the RFP process (December 2024) to enable the successful Consultant’s
Stakeholder and Engagement team to develop and support public engagement activities.
Giv
en th e low level of significance determined, the engagement level is low. No engagement
is required.
79. The recommendation to award the Professional Services Contract and the appointment of the
Consultant team, will result in the next stage of developing and implementing a communication
and engagement plan to continue consultation with key stakeholders, potentially affected
parties, and commence engagement with the general public in conjunction with Council’s
communications team.
Attachments - Ngaa taapirihanga
There are no attachments for this report.
Page 10
