To provide an update on the Tauranga Marine Precinct project for the period to 30 June 2015.
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- Georgiana Imogene Scott
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1 41 Monitoring Committee 27"^ July 2015 DC No: 202 Purpose To provide an update on the Tauranga Marine Precinct project for the period to 30 June Executive Summary 2. The first draft of the Regional Infrastructure Fund (RIF) Funding Agreement has been provided by the Bay of Plenty Regional Council (BOPRC). Negotiations are underway, with a focus on providing a clear mechanism for the receipt and potential repayment of the funding. 3. The drafting of the special terms for the Sale and Purchase Agreements for the Stage 1 Lots has been concluded, with the documents currently being peer reviewed. The formal tender process will commence after the review is concluded. 4. The remediation of the entire site to remove historical contamination has been affirmed in a Site Validation Report which has been registered on the land titles. 5. Enabling consents are being applied for currently including subdivision, stormwater and earth works. 6. Procurement of the civil works construction company has commenced, with six companies shortlisted to receive the Request for Tender (RFT) when detailed designs are completed. 7. the procurement for the travel-lift continues with the receipt and evaluation of the Request for Proposal (RFP) from four international companies. 8. In the weeks ahead, detailed designs will be completed ahead of the release of the RFT for the civil works for the precinct. Recommendation/s That the City Delivery Committee: (a) Receive the Project Director's Update Report on the Tauranga Marine Precinct Project (DC202). Objective ID: XA
2 42 Discussion Council Funding Approvals and Agreements 9. The detailed terms of the RIF funding are being confirmed via a Funding Agreement with BOPRC. A draft agreement was received by TCC on 30 June This is being considered with focus on a number of areas including the drawdown schedule and a clear understanding of the terms within the agreement where repayment is aligned to economic development goals for the site. 10. A number of deliverables within the Heads of Agreement (HOA) have been provided during the last quarter, however BOPRC has retained a position that funding remains conditional on the confirmation of all necessary enabling and occupation consents for the project. Due to this fact, an application for subdivision consent has been filed, and progress has been made on the stormwater and earthworks consent applications. Property Sales and Marketing 11. Interested parties in the acquisition of Lots continue to come fonvard as the final preparation of the legal package of documents is completed. In total over 35 parties are now registered as interested in acquiring a site at the precinct. 12. The first drafting of the Sale and Purchase Agreement with special conditions for the Lots has recently been completed. The agreements include special provisions for each site including land covenants, encumbrances, easements, licences to enter the hardstand area and optional water-space licences. An additional set of provisions to control the development of new buildings has also been completed. 13. These legal agreements are currently being peer reviewed with the intention that the Stage 1 properties will be put out to tender within a matter of weeks. 14. The existing tenants on the site (within the Stage 1 works area) have almost completed the relocation of their businesses to areas on the site away from the primary Stage 1 works. Additional time has been given to tenants within the Stage 1 area who required space to store a number of the largest vessels from the Tauranga Bridge Marina that had to be cleaned after the Mobile oil spill. 1^. The project team is working with a number of parlies interested in short term lease tenure on areas of the site outside of the Stage 1 works. Masterplan 16. The project's masterplan has been used as the basis for the subdivision consent application. It is expected that the size and shape of some lots will need to be amended post the sale process, however the most recent masterplan was considered a good basis upon which to deliver the consent required by the RIF conditions. 17. The site adjacent the ice wharf at the northern end of the property has been retained to provide ongoing access and usable space adjacent the wharf to enable ongoing ice loading and fish unloading from the wharf. Site Investigations 18. The further ground investigations undertaken in January were reported on during the quarter. Results indicated that the ground at the precinct is not prone to liquefaction.
3 43 which was one of the last questions that the geotechnical consultants wanted answered for the site. 19. The test did conclude that the marine sediments beneath the precinct's reclamation areas were prone to settlement, however this was expected with settling occurring for many decades since the area was reclaimed. Consents 20. The removal of the historical contamination on the site has now been recorded on all titles for the site now that BOPRC has received the Site Validation Report. The report concluded that post remediation testing confirmed that the remediation works removed all of the contamination. 21. The remediation of the historical contamination was a precondition of the RIF funding which has now been satisfied. 22. The further subdivision of the site to allow for the sales of the Stage 1 lots is also a precondition of the RIF funding, therefore an application was drafted and filed with TCC in June. 23. The project team has commenced consultation with affected parties associated with new stormwater and waste water discharge consents that are required for the new Stage 1 lots and the hardstand area. Consultation has included Iwi, Port of Tauranga and neighbours. The application includes the extension and renewal of two existing outfalls that require relocation through the new seawall. The consent application will be filed during the month of July. 24. The final consent required for the precinct is an earthworks consent which is also a prerequisite to the RIF funding. Due to the RIF requirement the consent will be applied for in the forthcoming weeks, rather than awaiting the final design of the hardstand and seawall. 25. Both consents can advance after careful consideration for the final finished levels on the site. Civil Worits Contractors 26. The procurement process for selecting a preferred civil works construction company commenced during the quarter with the release of an Invitation to Apply (ITA) which is a process not used by TCC previously. Jhe purpose of the ITA was to select a short list of contractors that had particular experience in the construction of seawalls and heavy pavements. 27. In total six companies with relevant experience were shortlisted through the ITA process. These six companies have then engaged with the project team during a number of half day workshops with council staff and consultants. 28. Whilst the process takes time, the main purpose is to allow TCC the opportunity to engage with relevant contractors to confirm their capability, but more importantly to discuss ways to mitigate risks associated with the project In particular, the project team wanted to be sure that the detailed design or designs will be buildable, and to seek guidance as to whether any value engineering alternatives were available. 29. These considerations are particularly relevant for this site due to the fact that the land is a man-made reclamation with an existing seawall. The process has allowed TCC the opportunity to consider a design and build alternative to the traditional procurement approach. 30. The meetings have almost concluded, with both parties agreeing that the ITA meetings were a valuable addition to the more standard procurement process.
4 Travel-Lift Procurement 31. The procurement process for the travel-lift continued during the last quarter with the evaluation of the EOI respondents which was followed with the release of an RFP. 32. Four companies were asked to provide an RFP response detailing various machine options and configurations. These responses have now been received with the last two weeks being used for further post tender clarifications and machine modifications. 33. The falling exchange rate of over 10% during the last quarter has impacted on the flexibility within the budget, however the competitive procurement has resulted in all four companies delivering good alternatives. A decision on the preferred supplier will be announced when final clarifications and negotiations are concluded. 34. The RFP also required all companies to provide information on the various engineering specification including total weights and loading capabilities which have allowed the project engineers to advance preliminary design alternatives for the sea wall and the heavy pavement design. Project Timing 35. There are no project timing issues to report, however additional flexibility in final delivery of the project has recently been provided by the BOPRC which has allowed time to be allocated to reviewing design alternatives for the heavy pavement and the variety of wheel configurations for the boat lift. Project Plan Taslts 36. The immediate work ahead for the project team and the Group of Advisors include (but are not limited to): Completion of the legal peer review and land sale information memorandum which will accompany the sale and purchase special terms. Release ofthe land sale tenders, including briefing and any negotiations. Execution ofthe Funding Agreement with BOPRC. Procurement of the civil works contractor when detailed designs for the seawall and the heavy pavement ar^ completed. Contract with the preferred supplier for the travel lift, including full due diligence of the manufacturer. Receipt of the remaining consents for the project including the stormwater and earthworks consents. Ongoing engagement with stakeholders, interested parties, the marine industry and the community regarding the project Attachments There are no attachments for this report.
5 Signatories 45 Authors Phil Wardale - Project Director - Tauranga Marine Precinct Authorisers Frazer Smith - Acting General Manager Organisational Services
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