The Rotorua lakefront. Photo / File
Rotorua Lakes Council has approved an up to $844,928.33 contract variation for its lakefront redevelopment.
The council says it is not a budget increase and is covered by contingencies in the overall project budget.
On July 29 the council approved the contract variation with HEB Construction Limited, which brought the total contract value to up to almost $15.5 million.
The overall project budget, which includes $20.9m from the Provincial Growth Fund and $20.1m from the council, remains at $41m.
The information was to be held as confidential until the practical completion of Stage 1 and 1A, which was the upgrade of the main lakefront walkway, boardwalk and terracing, which was opened on July 9.
The revelation comes as the council released previously confidential information in an agenda for a full council meeting to be held on Thursday via video conference.
Council community wellbeing deputy chief executive Jocelyn Mikaere said the variation was not an increase on the council's contribution to the lakefront redevelopment.
"No additional funding sought, this is not a budget increase, the variation is covered by contingencies which are included in the overall project budget."
She said the variation drew on a contingency for stage one of the redevelopment and was less than the allowed contingency.
"This is normal for a project like this.
"Unspent contingency is reallocated to other stages as in a project of this size, scale and duration, there will be 'unders and overs' across the stages."
Actual spend to date on the project at end July was $23.1m, she said.
Mikaere said the contract variation was a net figure over the whole contract, which had resulted from 23 variations, some with cost savings and some with additional cost.
"The largest within that related to ground stabilisation works where the additive mix required for ground stabilisation under the boardwalk was not certain until tested when works were under way.
"When this was done it was found that more lime was required than specified in the contract. On the flip side, an example of a cost saving was revised testing methodology for testing the trial ground anchors under the boardwalk."
A council spokeswoman said there was no division called in the voting, which would have noted who was for, against or abstained on the vote.
Some councils note with every decision how each elected member votes but Rotorua Lakes Council does not unless an elected member calls for a division and for their votes to be recorded.
In a written statement via the council communications team, Rotorua mayor Steve Chadwick said the lakefront had progressed well and within budget.
"It has been great to see people already enjoying the completed stages."
She said contract variations were a common part of managing projects.
Also released was the approval of a $25.7m Fulton Hogan tender for the Rotoiti Rotomā sewerage reticulation scheme, which was approved by the council on April 29.
The total tender included $12.m for the supply and installation of Biolytix Eco Pods for East Rotoiti, contingencies for capital works of up to $1.2m and a provisional capital sum of $3m for Rotoehu / Ngamotu reticulation, which would be awarded by the council and upon confirmation of Ministry for the Environment and other external funding.
It also included the $6.6m over 15 years for operation, management and maintenance of the East Rotoiti on-property and reticulation systems and a provisional sum of $1.3m for the installation of new units for housing growth. That cost would be recovered from new housing applicants.
The decision was withheld from the public until the contract was agreed upon.
Council infrastructure and environmental solutions Stavros Michael said the money was for the final part of the East Rotoiti / Rotomā sewerage reticulation project.
"The remaining work comprises the installation of pre-treatment systems at Rotoiti, consistent with the scheme scope that was adopted by council in 2014, the resource consent conditions and the Heads of Agreement with Ngati Pikiao."
He said there had been a "lengthy and robust" procurement process to identify the most suitable systems for Rotoiti which included operational effectiveness, system safety, effluent performance, cultural preference and cost-effectiveness.
On April 29 the council also authorised chief executive Geoff Williams to enter a $2.5m directly negotiated contract with Tonkin and Taylor "for the detailed options feasibility investigation and preliminary design of bulk stormwater interventions and growth enabling works for the eastern and western areas".
On July 29 the council also heard an update report from district development deputy chief executive Jean-Paul Gaston on Plan Change 3 – Significant Natural Areas appeals. The minutes, which stated the report occurred, were released but the report was not.
No reports – information from council officers which help inform councillors' decisions – were released on any of the released decisions, only minutes stating they occurred. In each case, the council had agreed to withhold the reports.
Under law, councils have the right to withhold information for specific reasons, including, among others, commercial sensitivity, the privacy of individuals or could stymie free and frank expression of opinion from elected members or staff.
There will be two council meetings on Thursday – one in the morning for the full council and a Strategy, Policy and Finance committee meeting in the afternoon.
Two notices of motion were lodged ahead of the council meeting by councillors Reynold Macpherson and Peter Bentley.
One calls for the council to establish an independent review of its governance.
Bentley made a similar motion in July but it fizzled after he clarified he wanted a review into the organisation (management), not the governance (elected members) of the council.
The other motion called for the council to direct officials to obtain a "formal determination by [the] Ministry of Business, Innovation and Employment regarding Building Code Clause F4 – Safety from Falling with specific reference to complying handrails for the lakefront walkway".
The full council meeting will also consider whether the council will approve new terms of reference for Rotorua Economic Development (RED) and whether it will give the nod for RED to develop a business case for carparks on Haupapa and Pukuatua streets to become inner-city apartments.
The council will also consider changing the classification of a part of the Rotorua Cemetery Reserve from a recreation reserve to a cemetery reserve.
The land had been gifted by Ngāti Whakaue for the purpose of a cemetery reserve but its classification did not align with that intention.
The council will also consider recommendations from previous Strategy, Policy and Finance, and Operations and Monitoring committee meetings in a public excluded section of the meeting.
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