Local Government August 2013

INGENIUM Merges with Australian counterpart PAGE 20

VOL 50 • ISSUE NO 8 • AUGUST 2013 • $6.50

VIADUCT WINS 2013 NZCF AWARDS – PAGE 12

Andrea Cave Leads Quarry Association PAGE 17

When you’re

talking business Mediaweb is New Zealand’s leading B2B publisher with titles at the forefront of the business, food, media and fmcg sectors.

Mediaweb_TalkBus_FP_210x297_0413_Melissa

The combined power and reach of our titles gives us a market coverage second to none and offers both readers and advertising partners unparalleled access to the latest trends and targeted audiences.

INSIDE: Advertising Agencies Categorised Clients & Brands Key Executives A-Z Top 200 Advertisers

Agencies&Clients_FINALcover.indd 1

4/05/12 3:28 PM

But Mediaweb is much more than your average publisher. Utilising our industry expertise and sector knowledge, our offering extends into industry events, e-newsletters and contract publishing services.

A young and innovative company with old, established credentials. When you want to reach the business decision makers, Mediaweb has the solution for you.

p: 09 529 3000 e: enquiries@mediaweb.co.nz

www.mediaweb.co.nz

GOOD MORNING,

VIETNAM 9 421902 251009

>>

AD OF THE MONTH

>>

SPACE ODYSSEYS

>>

THE VNO STORY

>>

>> >>

Q+A NIC FINLAYSON

THE COOLEST AD LEGALS

>>

>>

AMBIENT

>>

119 WINNERS

ETHNIC MEDIA

>>

>>

TV TOP 10

FRIENDS & LOVERS

>>

FORMATS THAT SIZZLE

PAGES 13 & 15

NEW ZEALAND LOCAL GOVERNMENT

AGENDA AUGUST 2013

FROM THE EDITOR 02 Nationwide rates debate?

NZLG INSIGHT – LGNZ CONFERENCE REPORT News and current affairs from the local government sector

03 LGNZ conference 2013 04 Prime Minister John Key talks reforms 07 Jude Munro former ceo Brisbane City “thinks big” 08 Greg Hallam shares money saving tips

04

COMMUNITY SAFTEY 09 Upper Hutt tackles street safety NZLG FOCUS 10 Tax considerations when paying non-residents TRAINING 11 Thumbs up from NZTA for tender evaluators course COVER STORY 12 NZCF 2013 Awards celebrate excellence

12

OPINION: FROM THE CONTRACTORS’ PERSPECTIVE 14 Small country big demands by Jeremy Sole,

chief executive NZCF ROAD & RAIL SAFETY 15 Signage – the last line of defence NZLG PROFILE 17 Andrea Cave leads Quarry Association REGIONAL UPDATE 19 Invercargill approves new airport terminal IPWEA NZ 20 Rosemary Dennis talks to Braden Austin

incoming President of IPWEA NZ about the

trans-Tasman merger NZLG LAST WORD 23 The ‘one minute commute’ – transforming

the workplace

On the cover: Our cover this month features the completed Newmarket Viaduct project which took the NZCF 2013, over $25 million project category award. For full details of this year’s awards turn to pages 12 & 13.

FROM THE EDITOR

PUBLISHER & EDITORIAL DIRECTOR Toni Myers tonim@mediaweb.co.nz

Nationwide rates debate?

Auckland Council Mayor Len Brown took to the airwaves on August 15 to discuss on talkback radio issues relevant to ratepayers and listeners in the upper North Island. Many of the callers had recently received their rates demands and a few – like WORLD fashion designer Denise L’Estrange-Corbet had some choice words to describe the increased rating of her business property which had decreased in value, after being classified as a heritage A building. Perhaps the most salient point Brown made was the need for nationwide discussion on the way the rating system in New Zealand operates.

It would be great for this debate to take place before all the recent expansion plans of the super city’s transportation requirements are rubber stamped. As funding for the Central Rail Link, and property developments in the Auckland housing sector will certainly be factored into future rates.

With an ageing population more and more people may find themselves in the plight of one elderly couple who told Brown they need to use their entire annual pension to fund their current rates of $5000. Being “rated” out of your home, after years of meeting the demands sounds unjust. Couple this with the current supply and demand issue of “affordable housing” this nationwide debate has the ability to become the central issue of this October’s local government elections.

In this issue we cover the recent Local Government New Zealand conference held in Hamilton. Keynote speakers included former ceo of Brisbane City Council, Jude Munro (excerpt page 7), who presented a success story associated with thinking big. And while many delegates squirmed at the term, thinking immediately of the Think Big policies of Sir Robert Muldoon, Munro’s case study of how Brisbane encouraged people to leave their cars at home, kept the audience engaged We also have an article on how Invercargill (page 19), plans to fund its much needed new airport terminal which will see passengers able to collect their suitcases from inside, rather than the tarmac! And our cover story this month celebrates excellence and success in the 2013 New Zealand Contractors’ Federation Awards.

EDITOR Kimberley Dixon editor@localgovernmentmag.co.nz Like us on facebook: http://www.facebook.com/ LocalGovtmag ADVERTISING SALES MANAGER Kim McIntosh 09 529 3000 021 419 468 kimm@mediaweb.co.nz DESIGNER Melissa McGregor melissam@mediaweb.co.nz WEB & SOCIAL MEDIA CONTENT Hamish McConnochie hamishmcconnochie@gmail.com PRODUCTION MANAGER Fran Marshall franm@mediaweb.co.nz GROUP SALES MANAGER Lisa Morris 09 300 2675 lisam@mediaweb.co.nz ADVERTISING CO-ORDINATOR Pip Maclean 09 529 3000 ads@mediaweb.co.nz COMPANY ACCOUNTANT Pam King 09 300 2670 pamk@mediaweb.co.nz CREDIT CONTROL Gladys Hooker 09 300 2672 gladysh@mediaweb.co.nz CIRCULATION/SUBSCRIPTIONS Sue McDiarmid Rates: $80 for 12 issues incl GST and post.

Overseas rates available on request.

Address to: Subscriptions Dept, Mediaweb, PO Box 5544, Wellesley St, Auckland subs@mediaweb.co.nz PREPRESS AND PRINT BY PMP Print

– Kimberley Dixon, Editor

PUBLISHED BY

NZ Local Government $80 for 12 issues incl GST and post Tick

YES

Subscribe today I would like to subscribe to New Zealand Local Government magazine Mr/Mrs/Ms:

Cheques payable to: Mediaweb Post to: Subscriptions Dept, Mediaweb,

Job Title: Company: Address: Suburb: Tel:

Fax:

E-mail address: Enclosed is a cheque $ __________ or debit my:

l Mastercard l Expiry:

/

Visa /

Card Number: Cardholders Name: Signature:

2

NEW ZEALAND LOCAL GOVERNMENT AUGUST 2013

FREEPOST 288 PO Box 5544, Wellesley St, Auckland 1141.

Fax: (09) 529 3001

MEDIAWEB 115 Newton Road, Eden Terrace PO Box 5544, Wellesley St, Auckland Phone +64 9 529 3000 Fax +64 9 529 3001 Email enquiries@mediaweb.co.nz www.mediaweb.co.nz Original material published in this magazine is copyright, but may be reproduced providing permission is obtained from the editor and acknowledgment given to NZ Local Government magazine. Opinions expressed are those of the authors and may not necessarily be those of Mediaweb. We welcome material from commercial sources for publication but cannot guarantee that it will be used as submitted.

ISSN 0028-8403 (PRINT) ISSN 2324-1721 (ONLINE) VOL 50 NO 8 PUBLISHER'S STATEMENT OF DISTRIBUTION New Zealand Local Government magazine’s distribution figures can be supplied by way of a publisher’s statement, which can be verified if required by print and postal information. This is the same data reviewed under the ABC system. The guaranteed minimum distribution for NZ Local Government is 2000.

NZLG INSIGHT – LGNZ CONFERENCE REPORT

LGNZ Conference 2013 New initiatives to attain optimal governance Local Government New Zealand (LGNZ) is committed to raising governance standards and providing value for money services for New Zealand ratepayers.

Opening the 2013 Local Government New Zealand conference at the Claudelands Exhibition Centre in Hamilton, LGNZ president Lawrence Yule outlined a suite of new initiatives to increase local government capability and delivery.

“To play our full part in a successful New Zealand we need optimal governance and operations,” says Yule.

“Lifting our game in these areas lowers the risk for those we represent.”

Yule signed a heads of agreement document for a new professional development partnership with the Institute of Directors, to provide governance training for mayors and councillors. He and the Waikato Branch chair of the IoD, Margaret Devlin, signed the agreement on stage following Yule’s opening speech.

Yule also announced that LGNZ will partner with the Local Government Association of Queensland to

MasterBuild

help develop new shared services for New Zealand councils. LGAQ initiatives have resulted in millions of dollars in savings to Queensland ratepayers.

In addition LGNZ is working on a range of critical matters. LGNZ is to hold a series of seminars on topics that affect councils and their communities with the emphasis on building knowledge and expertise across the local government sector and engaging national and local stakeholders.“LGNZ will consider ways to promote local government. We must tell our story better,” says Yule.

Many delegates attending the conference were up extra early to hear the Prime Minister John Key’s speech on Tuesday morning. Scheduled for the first session of the day at 8.30 am the PM was on time along with his delegation and was duly introduced by the president of LGNZ, Lawrence Yule. However, at 2.45 am all conference delegates staying at the Hamilton Novotel were corralled in the hotel’s carpark as a fire alarm tested their resilience and ability to be on time.

On the following pages Local Government New Zealand has taken two excerpts from speakers who attended the three day conference.

Online building consent application.

When we envisioned MasterBuild, we wanted something any Tom, Dick and Harry* could use to submit building consent applications online.

Then we got carried away... ...and we succeeded.

Make it work from anywhere in the world as long as you have access to the internet.

Make it so it could plug straight in to any councils’ existing systems.

Design it to make all the backstage stuff automated for staff (no double or triple handling.)

And on it went.

You get the picture.

Commercial. Industrial. Residential.

Customisable.

Online.

24/7.

Matchless simplicity. Consistency. Anywhere. 24/7 Your customers will love you for it.

You’re welcome.

See MasterBuild in action at

www.vimeo.com/ourcoromandel/masterbuild For more information, contact Murray Foster p 07 868 0200 e murray.foster@tcdc.govt.nz

Paperless.

At last.

* Naturally, Tom, Dick and Harry would have to be able to understand what code clauses are, and other building-codey stuff.

NEW ZEALAND LOCAL GOVERNMENT AUGUST 2013

3

NZLG INSIGHT – LGNZ CONFERENCE REPORT

Prime Minister John Key: Better Local Government reforms Last year when I spoke to you, we had just begun work on passing the Bill that enabled phase one of our Better Local Government reforms.

These reforms are designed to give you the tools to keep rates affordable, set clear financial prudence requirements, and give councils more tools to better manage costs.

We are putting a focus on stronger governance, improved efficiency, and better fiscal management at the local government level.

We are aware that LGNZ has been focussed on improving governance with your members, too. Your announcement of a partnership between LGNZ and the Institute of Directors on professional development training for elected representatives is a welcome step forward.

Changing the way you operate, and bringing a sharp focus on better leadership is not unique to local government. Governments at all levels across the world are being forced to reconsider what ‘business as usual’ means in this new global economic environment.

Living within our means is the way of the future.

Businesses, households and families are taking notice of this new reality. The first phase of Better Local Government reforms is helping local government to play its part in the belt-tightening that has been a reality for government, businesses, households and individuals over the past few years. At the end of last year, these reforms passed into law.

The second phase of reform is now underway.

There is an even bigger focus on efficiency, with the work done by the Efficiency Taskforce and the Local Government Infrastructure Expert Advisory Group. The recommendations from these two bodies have formed the basis for more policy decisions.

Further to this, the local government reorganisation reforms have enhanced the ability for councils to amalgamate, and are provoking a lot of discussion and activity in a number of communities. Changes to structure can lead to better governance. As we can see with the Auckland City amalgamation, processes are streamlined, and efficiencies across Auckland have been found.

As I have said before, the Government will not force amalgamations. What we wanted with this reform was

Association of Local Government Information Management Inc

to make it easier for communities to achieve structural change if they decide that was the right move for their community.

No-one knows better than you the importance of your sector, and how much of a difference local government can make to New Zealand’s economic success. That’s why it is important we get these reforms right.

Reforming the RMA In February, the Government released a discussion document that contained a comprehensive package of resource management reforms. The way the current resource management processes are operating is

2013 ALGIM Customer Service Symposium 9 & 10 September 2013 Rotorua Convention Centre

www.facebook.com/ALGIMInc www.twitter.com/ALGIMInc

www.algim.org.nz

4

NEW ZEALAND LOCAL GOVERNMENT AUGUST 2013

Adding Value to Every Customer Experience

NZLG INSIGHT

Lighting Urban Spaces

Light for inspiration. Expressive lighting is a school of thought which demands attention. WE-EF inground uplights fitted with metal halide lamps and colour filters illuminate the open spaces at Holmesglen College in Melbourne.

ETC140 inground uplight fitted with a 35 W metal halide lamp.

IOSÂŽ Innovative Optical System featuring symmetric medium beam distribution.

Blasted Red Tree, 2007 Artist: Tim Jones Š Reproduced courtesy of the artist and Australian Galleries, Melbourne

WE-EF LIGHTING Tel +61 3 8587 0444 Fax +61 3 8587 0499 info.australia@we-ef.com www.we-ef.com

NZLG INSIGHT – LGNZ CONFERENCE REPORT

costing us all in time, money and lost opportunities.

The systems have become cumbersome, uncertain and highly litigious.

Delays and uncertainties from the RMA means potential new jobs are not being created, houses are more expensive and communities have no idea what to expect in their neighbourhood. Fundamentally, the second set of RMA reforms is about providing greater confidence for businesses to grow and create jobs. The RMA reforms will bring greater certainty for communities to plan for their area’s needs, and strong environmental outcomes as our communities grow and change.

Government heard hundreds of submissions and held more than 50 meetings throughout the country on these reforms. The Government expects to be in a position to progress the resource management reforms in the next month.

Housing Housing is a very important issue. We all know the rising cost of housing is a great concern in Auckland and, to a lesser degree, Christchurch. We also know it is an issue around the country.

The Government’s view is that we can improve the supply side of the housing market so that housing becomes more affordable. That is why we are looking at establishing Housing Accords, in partnership with local government, to create special housing areas.

The first of these Accords is with Auckland, and what it does is give Auckland Council the tools it needs to get on and consent thousands more sections. Housing Accords aim to streamline the planning and consenting process and get central and local government working more closely together on housing development. We’ve set targets within the Auckland Accord to ensure the city’s housing supply and affordability issues are addressed. As a result of the Auckland Accord, we are targeting 39,000 new homes over the next three years, which is a significant increase in the number of homes currently being built in Auckland.

I want to turn now to recent debate on the Reserve Bank’s proposal for loan to value ratios (LVRs) for residential mortgages. I have made my thoughts clear – first home buyers are a priority for the Government – that remains my view.It is worth, however, putting some context around the actions the Reserve Bank is considering.

Absent of any other alternative, then rapidly increasing house prices may see the Reserve Bank raising interest rates, which will affect everyone – all mortgage holders and businesses, wherever they are in the country, as well as the Government.

6

NEW ZEALAND LOCAL GOVERNMENT AUGUST 2013

That is certainly not in the best interests of first home buyers. And higher interest rates would put upwards pressure on the Kiwi dollar, which would hurt exporters. Even with LVRs introduced, interest rates may ultimately rise anyway, but the intention with these loan to value ratios is to provide the Reserve Bank with other tools to dampen demand. Housing bubbles overseas, like in the US where subprime mortgages were hugely popular, had in the end a very negative impact on the American economy.

It left US banks and many homeowners very exposed and it had a dramatic negative flow-on impact, as we all saw. So it’s an issue that has to be taken seriously here in New Zealand. If it is left unchecked some buyers could find themselves substantially overexposed in an overvalued market. And we all know what happens if those values start to fall.

So, this issue is of serious concern. I remain of the view that all tools have to be considered. Demandside issues are largely the purview of the RBNZ, which is independent, and they will in the end have to make a decision. The Government is keen to see all New Zealanders have the opportunity to buy a house.

Part of the mix is ensuring the economic fundamentals are right, people can get a job, and there is enough land supply. And affordable interest rates are part of the mix, too. So this is a debate about getting the balance right between ensuring people have the opportunity to buy a home, and ensuring we don’t have problems with the banking system – with all the negative economic impacts that would entail.

Local elections I’d like to turn briefly to the local elections coming up in October. To those who are standing again for election, I wish you the best of luck on October 12. And to those who are not standing for re-election, thank you for your service to your communities.

I want to say that the work you do, and the services that are provided by the organisations you represent, are important. Your communities rely on you. It’s vital that when the opportunity comes along for the public to exercise their right to vote for their elected representatives, they take the time to do so. Voter turnout at the local body elections in 2007 was the lowest turnout since the restructuring of local government in 1989. In 2010, voter turnout improved slightly to 47.5%.

It would be great to see that turnout improve again at this election and I encourage New Zealanders to have their say.

NZLG INSIGHT – LGNZ CONFERENCE REPORT

Jude Munro, former ceo Brisbane City Council:

“Think Big” When you travel up to Queensland via the coast of NSW, you pass through townships sporting the Big Prawn, the Big Koala, the Big Banana, then on you drive to Brisbane where you come to the Big Council!

The council has grown such that it now serves a population of 1.2 million, has a budget of A$3.2b and a workforce approaching 10,000 employees. The council no longer itself solely covers the whole Brisbane metropolitan area. There are five councils that cover metropolitan Brisbane – Moreton, Redlands, Logan, Ipswich and Brisbane Councils.

The city is governed by the Lord Mayor and the city’s 26 ward councillors who are subject to elections every four years. Each councillor serves a ward of about 30,000 constituents. They are full time councillors with a ward office appropriately resourced. The Lord Mayor is directly elected by the people of Brisbane. The Brisbane Lord Mayor is the politician with the largest personal constituency in Australia. This model is largely based on the strong mayor model of the United States: very similar to what operates in New York and Chicago.

When it works well it is breathtaking what the council is able to achieve. It is the combination of the size of Brisbane, the size of the council, a focus on driving an integrated vision, Corporate Plan and budget, the

Jude Munro.

power of the Lord Mayor, a cohesive Civic Cabinet, a strong partnership between the Lord Mayor and ceo, and a ceo who leads the organisation that makes it work so well as a model.

Being the big Brisbane City Council means that typically you learn to think big. You plan for 1.2 million people. It’s a scale that encourages thinking big. But I believe all councils can think big. It’s thinking about the community within its regional and national context. It’s thinking about its stage in the lifecycle of communities: is it growing, ageing, a coastal development or declining rural? It’s also thinking long term. And it’s about learning from others.

Hill Laboratories is proud to offer New Zealand’s most advanced Air Canister Sampling service. Using the latest technology, our canisters offer a simple and easy-to-use vacuum sample extraction method requiring no calibration and ensuring very accurate results.

Hill Laboratories has a wide range of Air Testing services, ensuring fast and cost-effective results for our clients.

SEAL4862LGg

AIR TESTING. FAST AND ACCURATE! Visit www.hill-laboratories.com/canister or call Ian Graves today, on

07 853 2503.

www.hill-laboratories.com

NEW ZEALAND LOCAL GOVERNMENT AUGUST 2013

7

NZLG INSIGHT – LGNZ CONFERENCE REPORT

I came back from a trip to Melbourne. That weekend I’d decided to not hire a car but to travel by public transport. I was impressed. I hadn’t had to use timetables because trams and trains and buses all seemed to come along so quickly. The next week as usual I met with my executive team and asked the question. How could we travel by public transport in Brisbane and not have to bother looking at a timetable because a bus would be along shortly? The divisional manager for Brisbane Transport showed me a plan the next week. Eight radial routes into the CBD running every 10-15 minutes from 5 am to 12 midnight. This was a big change from the 30 to 50 minutes that was then currently the case. The proposal was based on customer surveys that said regular frequent services were the key to customer growth. We knew that every full bus took 40 cars off our road system. We took it to the council’s budget committee. It would cost an extra A$3.5m. They agreed. The next month the Liberal team won the election. There was a lot of debate. The new Lord Mayor Campbell Newman to his credit was courageous and said we’ll give it a go. That was in April 2004 and the rest is history.

When these new BUZ routes were introduced from July that year, each bus route showed an 80 to 160% lift in patronage over the previous 12 months. This translated to a 10% increase per year across the whole system for each of the next six years, lifting patronage from 48m pax p/a to 77m pax over that time. Other initiatives have been integrated ticketing Go-Card which have contributed to this success. The now 11 BUZ bus routes of the total 230 Brisbane Transport bus routes carry 32% of total bus patronage.

That’s an extra 29 million passengers a year or 143 kilometres of two lane road space freed up out of 2800 kms of trunk roads or 5% in the peak. Now that’s thinking big.

Further analysis has shown that what has slowed BUZ buses down, travelling from A to B, is slow boarding with people buying tickets with cash on the buses. So now Translink Transport Authority in conjunction with

Brisbane Transport are making some bus routes Go Card only. I’ve seen 30 commuters load a bus in under a minute. So this is acting smarter. It’s building on the work that’s gone before. It’s letting the customers know what is being done and building support for it.

This mandate building is critical for yourselves in NZ councils as well.

There is a need for longevity of vision. And a vision with community and council champions, such as yourselves, who believe in it and advocate for it. If you can get action to go over 10 years or 20 years then it will deliver fantastic results. Bit by bit the vision will be achieved.

So the big picture is of getting people out of their cars onto the buses and onto bikes as well. Congestion could kill Brisbane economically. Five minutes extra on the average commuter trip would lead to a reduction in 30,000 Brisbane jobs being created in the economy. So everything is connected to the big picture.

As ceo BCC, I had oversight of the Clem 7 project, a A$2.6b, five kilometre tunnel. It remains one of the biggest projects of its kind undertaken in Australia. The Lord Mayor kicked it off in 2004 but when I originally took on the ceo’s job in 2000 it was not even on the horizon and certainly we were not in shape to take it on. But we did. Everyone stepped up to the mark. At the end of the tender evaluation stage, it was described as the best and swiftest process for tender evaluation and decision making ever for a large infrastructure project in Australia. It cost A$2.6b but the Council only contributed A$513m.

This goes to show the unimaginable is possible.

The key success factor was political leadership from the Mayor.

A cfo willing to learn quickly and to adapt.

Excellent external consultants.

A ceo who was a boundary rider.

Substantial changes are able to be driven that impact widely across the metropolitan area relatively swiftly and easily. This is the upside of regional government or large city councils.

Associations to share money saving tips

8

NEW ZEALAND LOCAL GOVERNMENT AUGUST 2013

shared services in the hope of saving money for New Zealand councils and residents.

LGNZ President Lawrence Yule says this is an exciting opportunity to work with an organisation that has spent 20 years perfecting this approach. “We look forward to leveraging shared service opportunities to increase efficiency and effectiveness in the local government sector.”

Photo credit: thinkstock

Greg Hallam, chief executive officer of the Local Government Association of Queensland (LGAQ), spoke to delegates about how they saved Queensland councils and residents in excess of one hundred million dollars per annum through shared services.

LGAQ is a membership organisation for the councils in Queensland, Greg Hallam.

Australia, and its membership is similar to Local Government New Zealand (LGNZ).

Its menu of services includes insurance, procurement of goods and services, cloud computing, out of hours call centres and rate arrears collection, among others.

LGNZ has signed a Memorandum of Understanding with LGAQ and is now exploring ways to roll out

COMMUNITY SAFETY

The Community Development team at Upper Hutt City Council, has launched a Safe Hutt Valley community project called TOP (‘Together Our Place’) Timberlea in partnership with a strong collaborative working group called Safer Communities, Working Together.

The aim of this project is to engage with residents in Timberlea street by street, promoting safety, healthy living, and positive community participation. For the month of August this project group will be in the Timberlea community talking to residents about their perceptions of the area to establish what the community identifies as being its biggest strengths and challenges.

There will be a monthly TOP Timberlea newsletter going out to all residents, and monthly events will be held encouraging safety, health, and wellbeing.

“TOP Timberlea is about family-centred, communityled development,” says Jessica Setu, council’s community development team leader. “We encourage families to participate, be involved in the decision making, and lead the way forward for their neighbourhood. The supporting agencies that sit on the working group are there to create pathways for the families as they take this journey.”

This Safe Hutt Valley project contributes to the Hutt Valley’s Safe City accreditation with the World Health Organisation. The Timberlea community is being supported through this project by multiple agencies including the NZ Police, Neighbourhood Support Group, Victim Support, Wellington Region Emergency Management, Family and Community Services (MSD),

Photo credit: thinkstock

Upper Hutt tackles safety street by street Orongomai Marae, ACC, Regional Public Health, NZ Fire Service, Department of Corrections, Problem Gambling Association of NZ, and Department of Internal Affairs, as well as members of the Timberlea community.

“We’re so excited to also have Maoribank School supporting this project and hopefully to discover some great untapped leadership skills amongst the school families. Just like the TOP Trentham project, it was the young people that inspired the positive changes and neighbourhood morale shift,” says Ms Setu.

Safe Hutt Valley is a group of organisations working together to improve safety across the Hutt Valley region. The organisations involved are Upper Hutt City Council, Hutt City Council, ACC, Regional Public Health, Hutt Valley District Health Board, Ahuru Mowai o Te Awakairangi (formerly known as the Hutt Valley Family Violence Network), and the Police. The main aims of Safe Hutt Valley are to reduce crime and family violence, improve road safety, reduce harm from alcohol, and prevent injury and suicide.

Local Government New Zealand magazine plans to follow up on this initiative to see how effective this project is in upcoming issues.

Christchurch City Council acts swiftly to reset rates The Christchurch City Council is acting swiftly to rectify a problem with the way it has set rates. Acting chief executive Jane Parfitt says the issue came to light when the Department of Internal Affairs noted the due dates and penalties were not included in the current year’s rates resolution.

“We have also found that this problem has occurred in previous years back to 2004 and we are looking at ways to deal with that,” Parfitt says.

“We regret this mistake and we will ensure it does not happen again. I must emphasise there was no error in the amount of rates collected. Because the council can reset the rates for the present year, the first 2013/14 rates instalments are due as normal and a resetting process for the 2013/14 year will be initiated at the council’s August 29 meeting.”

Parfitt has travelled to Wellington to discuss remedial action for prior years with staff from the Department of Internal Affairs, Audit New Zealand and the Auditor-General’s office and the council has also sought legal advice on possible corrective measures.

NZCF started as the national representative body of civil, general and roading contractors in 1944

NEW ZEALAND LOCAL GOVERNMENT AUGUST 2013

9

NZLG FOCUS

Photo credit: thinkstock

Tax considerations when making payments to non-residents – the sequel Our article earlier this year provided an introductory discussion on the tax risks of making payments to nonresidents. Just when you thought the tax risks ended with non-resident contractor’s tax (NRCT), like any predictable sequel, this article introduces the cousin of NRCT: non-resident withholding tax (NRWT).

A good understanding of the application of withholding taxes is essential when engaging non-residents, both in and out of New Zealand. Not surprisingly, Inland Revenue’s recent interest in payments to non-residents should be a trigger for taxpayers to implement adequate processes, if they have not already done so. More so, because we have recently seen many cases where organisations under Inland Revenue investigation that have made payments to non-residents have had to foot a sizeable and unexpected tax bill.

When does NRWT apply?

Where payments for interest, dividends or royalties are made to non-residents, NRWT must be deducted. In most cases, the withholding rate is 15%; however, with the assistance of a double taxation agreement this rate can be reduced.

You may be thinking, how is this even applicable to the Local Government sector? Whilst typically, you may not be paying interest or dividends to non-residents, you may be paying royalties without even knowing it!

The definition of “royalty payment” in the Income Tax Act has a broad meaning, and includes the use of, or right to use, a copyright, patent or intellectual property.

As such, payments made directly to non-residents for licence fees may be subject to NRWT. The most applicable scenarios that might apply to your business are: Computer software licenses.

The engagement of non-residents to perform art or cultural productions in New Zealand.

In relation to computer software royalties, Inland Revenue has drawn a distinction between acquiring a program for business use and acquiring it for commercial exploitation through the use of the copyright rights. The latter case is treated as a copyright right transaction (producing a royalty), and is subject to NRWT, whereas the former case is considered to be a copyrighted article transaction (not producing a royalty), and not subject to NRWT. So, where you have acquired software, and you

have the ability to alter or reproduce it, be particularly wary. A requirement to deduct NRWT may well result and tax advice should be sought.

Further, we often see local authorities engaging nonresidents (or their agents) to perform productions (e.g. cultural performances, plays and musicals) in New Zealand. In these cases there may be a royalty component that is often overlooked until after payment has been made. At this stage, it may be too late to recover the taxes from the non-resident and organisations may effectively have to absorb the tax cost themselves.

Key message If you haven’t already implemented processes and procedures to ensure that payments to non-residents are treated correctly for tax, now is the time to do so.

BY TAX TEAM Tax Team are tax risk management experts, specialising in the Local Government sector.

Visit our website at www.taxteam.co.nz.

Civil Engineering Asset Management | Maintenance Management | Environment | Land Development Transport | Water Structural Engineering Analysis & Design (Etabs, Revit & Other) | Seismic Assessment | Value Engineering Safety Design | Damage Avoidance Technologies Surveying Advocacy | Asset Recording | GIS Data Collections | Laser Scanning | Lettable Area Survey Land & Building Subdivision

Auckland t 9 525 9770

10

New Plymouth t 6 759 5990

NEW ZEALAND LOCAL GOVERNMENT AUGUST 2013

Wellington t 4 384 2029

Christchurch t 3 374 6515

Dunedin t 3 477 7133

spiire.co.nz

TRAINING

Councils throughout New Zealand are sending their procurement people to upskill on a new two-day course for tender evaluators.

It’s well recognised that the infrastructure industry is frustrated by poor quality Requests for Tender and inefficient procurement processes. Following the work done by the Road Maintenance Task Force, a specific focus was planned on improving procurement skills.

The good news is that now the Clever Buying™ course has been developed, councils and NZTA Offices have the tools they need to put smarter procurement processes in place.

The Clever Buying™ course has been specifically designed to teach best practice skills for preparing Requests for Tender and evaluating tenders, according to the NZTA’s Procurement Procedures manual. It also incorporates aspects of best practice evaluation that save time and costs from procurement processes.

The NZTA requires all projects which it funds that are valued at over $200,000 to have a qualified evaluator on the evaluation team. Councils are required to take responsibility to train their evaluators and make sure they have up-to-date knowledge of proper evaluation processes.

Earlier this year, the NZTA’s Innovations Committee recognised that teaching better tender evaluation skills to Road Controlling Authorities will help to save money – through providing more targeted and appropriate evaluation methods and tools, and also through saving time spent by evaluators on inefficient assessment activity.

Following the launch of the Clever BuyingTM course, NZTA’s Bernie Cuttance – who had a significant role in developing the NZTA’s Procurement Procedures Manual – was invited to critically review the course and comment on its effectiveness in teaching best practice procurement.

“The course involved a high level of engagement throughout, which kept everyone busy and interested. A wide range of example material was used, and practical exercises were the core of the course.

These included identifying critical success factors and differentiators for the bidders, and using that information to guide selection of appropriate evaluation methods. The group was kept busy with activities such as reviewing good and bad examples of RFTs, using laptops to explore the sensitivity of the price/quality model, exploring a range of scoring techniques, and evaluating actual (made up) tender responses.”

Importantly, the Clever Buying™ course also outlined some of the legal pitfalls that clients can fall into – and described some of the key things that councils’ evaluators should do to protect themselves from legal challenges.

To complete the course, trainees evaluated a typical tender and used NZTA’s spreadsheet tools to find the successful bidder, and then de-briefed with unsuccessful bidders. Armed with useful structures and feedback phrases, trainees could be confident about giving bidders transparent and constructive feedback on their bids, to hopefully improve the quality of bids in future.

Clever Buying™ teaches techniques that will not only reduce the time and costs of bidding and evaluating, but will also result in better purchasing decisions that are more closely aligned to value for money objectives.

Photo credit: thinkstock

A thumbs up from NZTA for tender evaluators course

The Clever Buying™ course is a powerful and practical tool for councils to boost the skills of their procurement team – either through attending a public course, or organising an in-house course.

For more details, contact info@plana.co.nz or phone 0800 752 622.

NEW ZEALAND LOCAL GOVERNMENT AUGUST 2013

11

COVER STORY – AWARDS RECOGNISE EXCELLENCE

Newmarket viaduct & Central Otago cycle trail

win NZCF awards Building a challenging section of the national cycle trail and the ‘unpicking’ and replacement of a huge viaduct central to Auckland’s motorway system are among projects honoured in the New Zealand Contractors’ Federation/Hirepool Construction Awards this year.

The awards, announced at the NZCF’s conference held in Queenstown from August 2-4, have four categories, recognising excellence in civil construction projects carried out by New Zealand companies domestically or internationally, with budgets ranging from less than $1 million to over $25 million.

Winner of the over $25 million category was the $244 million NGA Newmarket Viaduct Replacement project by the NGA alliance of the NZTA, Fulton Hogan, Leighton Contractors, VSL, URS, BECA, Tonkin & Taylor and Boffa Miskell.

Judges said the project to deconstruct the existing major box girder viaduct and build a 690m replacement, was outstanding in every sense, especially as the work was carried out just metres from the busiest section of Auckland’s spaghetti motorway junction.

Among the exceptional features noted were the team’s detailed understanding of the design and technical history of the old viaduct which had been refitted twice, so it could be unpicked in reverse order.

Judges said that this required the most detailed and precise planning they had ever seen.

The $5-$25 million category was won by the $16.2m Taharoa Bucy Relocation near Raglan by McConnell Dowell Constructors for NZ Steel Mining. The hugely challenging project included extending the single buoy mooring, which allows for export ship mooring, an undersea pipeline by 500m and relocating the buoy.

The project was completed on time and within budget despite having to work in a remote coastal environment

12

NEW ZEALAND LOCAL GOVERNMENT AUGUST 2013

with undersea construction up to 35m deep with poor sea conditions and visibility.

Winner of the $1-$5 million category was the $3.9 million Opua Sanitary Works Subsidy Scheme

by United Civil Construction who supplied and constructed a sanitary sewer scheme to serve Opua in the Bay of Islands. The team had to work in an area of developed housing as well as in steep terrain and heavy vegetation but the project ran smoothly, exceeding the Far North District Council’s expectations.

The below $1 million category was won by the $938,000 Roxburgh Gorge Cycle Trail by Wilson Contractors: part of the national New Zealand Cycle Trail project. The work involved cutting a bench for 11 kilometres above the Roxburgh Lake to form the cycle way through rough steep and rocky terrain.

The team had to undergo special training to deal with Nassela tussock, a noxious weed found in the area, to ensure tight control to limit any spreading of the South American plant, which poses a significant economic threat to farmland.

Wilson developed specialised rock drilling equipment to allow it to use onsite excavators for drilling and blasting works and recommended a design alignment change and relocation of a parking areas which saved the client $100,000. A number of highly commended awards were also presented. In the $5-$25 million category these went to the Sulphur Point Wharf extensions in Tauranga by HEB Construction, and the Manawatu Gorge slip remediation by Higgins Group.

In the $1-$5 million category, highly commended in the awards went to the Clyde Quay Wharf in Wellington

by Multi Civil Contractors and to Downer’s Bridge 27 Midland Line pier replacement on the line between Christchurch and the West Coast.

Two Tauranga projects were highly commended in the

Sweet Smell of success for Bay of Islands sewer project below $1 million category – the Matapihi Footbridge structural maintenance by Fulton Hogan, and the Maranui Wetland scheme by HEB Construction, part of the enabling works for the Tauranga eastern link.

Federation executive officer Malcolm Abernathy says these projects represented the very best of civil construction in New Zealand. “They demonstrated outstanding technical and environmental planning and often innovative approaches and solutions that provide identifiable and long lasting benefits to the client, public and the environment.”

Photo credit: thinkstock

COVER STORY - XXXXXXXXXXXXXXXXXXXXXXX

A challenging project to supply and construct a sanitary sewer scheme to save Opua has won top honours in the New Zealand Contractors Federation/Hirepool Construction Awards for 2013.

The Opua Sanitary Works Subsidy Scheme by United Civil Construction for client Far North District Council was praised by judges as an excellent community project. The project required United Civil Construction to liaise with and carry out site specific designs for some 190 property owners to construct the gravity and pumping system. The $3.9m Opua project won the $1-$5 million category.

The team worked with their designer, GHD to find a low pressure solution which reduced the overall pipe length and the number of pump stations on the council-controlled works. Each property required the installation of its own onsite collection and low pressure pumping system to replace the existing septic tanks. The challenging project area of the works included housing, gardens, step terrain and substantial vegetation and had to be completed with no adverse impacts. During construction it was identified that the collection system that takes the Opua wastewater to the Paihia treatment facility required increased capacity and United and GHD came up with a cost effective solution to achieve the improvements required. The judges’ citation said the system developed is highly reliable and almost failsafe from overflows.

At Quest, we’ve built a nationwide network of serviced apartments to provide business travellers with spacious and comfortable accommodation, that’s conveniently located wherever you need to be.

Now in over 150 locations across Australasia

Visit questapartments.co.nz or call 0800 944 400

After being in the business for over 24 years, we’ve learnt a thing or two - like the value of a familiar face and a warm welcome when you’re travelling for business. That’s why when you stay at Quest, you can expect superior business accommodation with all the creature comforts of home.

Your perfect travel companion

NEW ZEALAND LOCAL GOVERNMENT AUGUST 2013

13

Photo credit: thinkstock

OPINION: FROM THE CONTRACTORS’ PERSPECTIVE

Small country with big demands!

BY JEREMY SOLE, Chief Executive New Zealand Contractors’ Federation

I’d better start this column by apologising to Queenstown Lakes District Mayor Vanessa van Uden – because I’m about to borrow shamelessly from one of her recent speeches.

My excuse is that the event was the NZCF/Civil Contractors Federation of Australia joint conference in Queenstown and Mayor van Uden got a great reception from the assembled industry members for her opening address.

It was highly entertaining, with quite a few gentle prods at the “Freddie Mercurys, Priscillas and Elizabeth IIs” who might be frequenting the town’s bars over the weekend (the legendary conference fancy dress dinner was ‘Queen’ themed this year).

More to the point, however, the Mayor really hit the nail on the head with regards to a number of burning industry issues.

Mayor van Uden is a former council contracts manager and discussed in detail the portfolio of challenges contractors in her area are facing.

This is what she had to say: “Your industry demands innovation as a matter of course, something I wholeheartedly support at every opportunity, but equally, when I see changes that signal potential problems, it’s a very good feeling to be in a position to have a say that counts a wee bit more.

“The NZTA Contract Restructuring is a fascinating hot topic, loaded with pros and cons in equal measure, and I’d like to offer a candid view from the local government perspective to add to your deliberations.

“I assume most of you are personally embedded or have staff working in close contact with your local authorities to varying degrees, so you’ll all be familiar with what we want from our relationships and more importantly what we need from them.

“Quality, speed, reliability, local knowledge, specialties, guarantees and, of course, cost-efficiencies all top the wish lists and all of that comes down to one major factor, relationships.

“There’s every reason New Zealand’s major contractors should grow their businesses in line with the economy, exceeding it whenever possible, it’s business commonsense.

“And I hope, like all of you, I feel exactly the same about

14

NEW ZEALAND LOCAL GOVERNMENT AUGUST 2013

our small and medium-sized operations. We’re a small country with big demands, rebuilding a major city as the world tip-toes out of recession and the Kiwi dollar takes a bit of a rest from some impressive growth.

“The last few years of international economic strife give us the perfect cue to manage our roads contract restructuring; it points out potential pitfalls and highlights the need to remember how short-term decision-making can leave us bereft in the long term.

“As a contracting fan I love to see brand new plant in national company liveries thundering around construction projects.

“I appreciate the ultra-professional reporting, budget tables and projections that come across my desk, there’s real and tangible confidence and reassurance in that whole scenario, it shows big things are happening, and happening well.

“But I’m equally excited to see owner-operators driving projects from the cab, with a team of blokes who’ve been together on the same terrain since they first pushed the bare earth.

“I love to get updates in the field, talking about aspects of the job that only deep-rooted local knowledge can bring to life.

“I get that putting all the major works in the hands of our major contractors will mean great results along with economic benefits, and I also know that tried and true family firms with links to the soil mean a whole different kind of commitment to quality and cost efficiency that goes way beyond a romantic folk-song notion.

“Ladies and gentlemen, somewhere between those two extremes is a balance, a fulcrum where we, as local authorities can identify our needs and manage our decision-making accordingly, rather than be hamstrung by legislation developed by policy people, into something that fails to deliver all that the theory says it should!

“Because in the final analysis this doesn’t come down purely to money, it has far more to do with relationships… with people.

“Any contracts manager worth his or her salt needs to be able to ensure the tender process delivers contractors with the right skill sets, experience, plant, know how…and people.

“So my two cents is about bearing in mind that neither one view or another should prevail in this discussion.

“It means me using a hackneyed old phrase but of all the conferences I address, you’re the people who know more than anybody else about doing what I’d like to see done: building a level playing field!”

I couldn’t have put it better myself.

ROAD & RAIL SAFETY

The last line of defence Providing proper guide posts, signs and delineation is answer to lifting motorists’ ‘blindfolds’.

BY MIKE SMITH, Senior Road Safety Engineer, National Specialist Road Safety, MWH Global Recent trends in flat-line budgets have resulted in a worrying development endangering our nation’s road users. The reduction in funds is being applied to all elements of the road maintenance framework with serious consequences. Taking away the guide posts, signs and markings needed by motorists is like taking away their safety belts and braces, and then sending drivers down the road with a blindfold. Removing

essential safety guidance will only result in more crashes and trauma to our society.

It is a fact that Road Controlling Authorities (RCAs) are under pressure from ratepayers to reduce expenditure. This directly affects the road maintenance budget, which can lead to a blanket across-theboard reduction in all areas. This, in turn, has been observed to cause a decrease in inspections of the network, diminishing the opportunity for the RCA to identify and act on deficiencies. Likewise, financial pressures can lead to poor performance from the incumbent contractor who may be relying on the RCA not undertaking regular checks of the contract (due to time, budget and staff constraints). It is accepted that money has to be saved. Yet, it is not acceptable to have fatal and serious injury crashes that could be prevented. Work is being deferred (for example, pavement rehabilitations), but can we afford to defer such non-negotiable items such as delineation and guidance?

From my experience, we are, in some instances, saving money by taking away the very elements that form the backbone of road users’ safety. In essence: the last line of defence for the driver.

There are certain items and areas that simply can’t be cut: they must be there. We have a moral obligation to the population of New Zealand to ensure that we maximise motorists’ safety. After all, RCAs have a statutory “Duty of Care” obligation to the public. Research by NZTA, (formally LTSA) shows that guide posts help to reduce the number of night-time loss of control crashes by up to 67% and overall have a 30% crash effectiveness rate. Road signs have a 30 to 60% effectiveness in reducing the total number of crashes.

From personal experience, the time spent undertaking safety inspections, existing road audits and network inspections throughout New Zealand over the last 15 years has highlighted many bad case examples of poor guidance, sub-standard maintenance performance and lack of information for the driver. In many cases I am the “stranger driver” – the one that relies on the information presented, not on my own knowledge of the road. For example, MWH Global was contracted in 2010 to undertake regular safety inspections of a Central North Island roading network that had an increasing rate of night-time crashes, with high severity injuries. A sample of the network revealed that the maintenance contract employed was not cleaning or replacing ineffective signs and delineation. The consequence: the inspection team had a crash on a curve on a poorly delineated route!

The performance of the delineation at night had not been considered. “It’s not part of our contract,” and “The signs looked okay during the day,” were some of the reasons given. The simple question of why we have such road safety devices that allow the road user to see the way ahead, especially at night, could not be answered. More understanding is needed. However, ultimately these decisions are potentially being driven

NEW ZEALAND LOCAL GOVERNMENT AUGUST 2013

15

ROAD & RAIL SAFETY

Right: A daytime observation sign, see previous page to see the same sign, showing the importance of night time inspections.

Far right: An ineffective road edge marker post due to lichen growth.

Bottom right: Moss and lichen growth rendering sign ineffective. Regular cleaning would have eliminated the problem.

due to tight budgets and a lack of awareness of the safety aspects of the devices.

A review of all non-state highway rural road crashes recorded in the Crash Analysis System (CAS) database maintained by NZTA reveals there were nearly 20,000 crashes nationally between 2008 and 2012. Of these, 68% occurred when overcast, at twilight or during hours of darkness. These are the very conditions where delineation and guidance for drivers is paramount. 63% of all crashes involved motorists losing control of their vehicle and coming to a stop off the road.

The Government directive through Safer Journeys – New Zealand’s Road Safety Strategy 2010-2020 requires all RCAs to improve the safety of the network. The long-term goal is, “a safe road system increasingly free of death and serious injury.” Statistics by The Ministry of Transport reveal there was a 17% reduction in fatal and serious injury crashes between 2004 and 2010.

2011 saw a noticeable reduction, (24%), but worryingly the number of incidents has begun to trend up again over the last two years. Some individual RCAs are still not meeting their set targets. A central South Island RCA had a 60% increase in fatal and serious injury (FSI) crashes between 2008 and 2012, yet its neighbour had a 40% reduction. An analysis of the trends for rural roads reveals that over 30% of all RCAs have an increasing FSI crash count.

In road safety, not all maintenance items are the same. RCAs spend good money placing guide posts, signs and delineation across the network, but then fail to spend the money to ensure that they are kept in a good condition because we are under pressure to “save money”.

We need to educate the holders of the purse strings.

Cuts must be made where they can, but the need for appropriate delineation, signs, markings and vegetation control at the very minimum to ensure we have a safe and effective network must be defended.

Secondly, we need to ensure maintenance contracts insist on the need for night time inspection and reporting on the performance of these road safety tools; clearly defining the intervention process within those contracts to maximise road user safety.

Finally, we need to drive the right performance measures within the contracts to ensure that contractors are measured against the delivery of a network that is safe and fit for purpose.

In 2010, MWH was commissioned to work with a Central North Island authority that had identified that

16

NEW ZEALAND LOCAL GOVERNMENT AUGUST 2013

delineation and driver guidance was a serious issue.

An inspection process of this part of the network identified low-cost procedures that targeted the issues.

These included delineation of out-of-character curves, placement of gated signs at the change of a speed environment and the use of isolated edge-line markings.

An improvement programme was put in place, and a solid case for funding of delineation and guidance was generated and approved. Over the subsequent two years, Death and Serious Injury (DSI) crashes reduced from 28 in 2010 to 12 in 2012.

Budgets are tight and monetary targets need to be met. Working out the areas of best-spend whilst ensuring moral (duty of care) obligations are met and the community is protected is a fine balancing act.

A change in thinking is required. There is a need to get the mentality right under the Safer Journeys directive and funding requirements. If we keep deferring work, we are simply creating a deficient network and consequences for the future. Systems must be challenged over how and where RCAs plan to cut their budgets, reduce their maintenance intervention strategies and road safety inspection processes. A broad-brush cuts approach across the board is a road that should not be travelled down.

It is time to take a holistic approach to road safety and embrace the ‘safe systems’ style that is being demonstrated by other countries with enviable track records in reducing their Death and Serious Injury statistics. Let us not forget – people’s lives are in our hands.

NZLG PROFILE

Young female environmentalist to lead quarry industry Andrea Cave has been elected chair of the Aggregate and Quarry Association. The AQA Board and its members are delighted to break with history and tradition to welcome a woman to the leadership role. With an industry focus on the environment, it is also pertinent that Andrea is the environment manager with Winstone Aggregates.

Andrea is well versed in environmental mitigation and helping the public to understand that quarrying is no longer a dirty word but an industry that can maintain or enhance the environment. She leads the environmental, improved biodiversity and sustainability

functions of her organisation, including establishing and maintaining relationships with iwi, community groups and other regulatory stakeholders.

She points out that quarrying is a temporary use of land, although with rock quarries such use may span the working life of a generation. “Nonetheless, sooner or later mineral extraction will be concluded and the site will either be restored to its former use or converted to support some other activity which best meets the needs of the local community. That’s what we need to be working towards even as we supply materials to build the infrastructure for those people.”

From an AQA perspective there is no underestimating that the forthcoming year is going to be a challenging one for the NZ quarry industry on a number of fronts.

At the forefront, and rightly so, is health and safety. “The aggregates industry operates in a potentially hazardous environment so this is an area where as an industry we must work together, be proactive and continue to raise the bar,” said Andrea. “Everyone has the right to work in a safe environment, everyone is responsible for their safety and the safety of others and a safe and healthy work environment leads to a safe and healthy business.”

Another issue for the industry as a whole is the aging workforce.

Recent studies by the Department of Labour show that the New Zealand mining and quarrying industry has an ageing workforce, with the

dominant age group between 40 and 45 years. The ability to attract and retain new people into the industry is of paramount importance over the coming years. Andrea says, “Quarrying is an exciting and diverse industry to be involved in. Whether your interest is in geology, computer technology, heavy machinery or even explosives, the industry has established a range of courses and qualifications to help you build a challenging and fulfilling career.

“The ongoing promotion of the industry is something which I would like to become more involved with.

There are examples of excellent newcomers and it is important to highlight these to keep the momentum going. This website fills in a bit more about that: http://tvnz. co.nz/just-the-job/sheet-quarryworker-3114880 “One of the advantages the industry has in order to meet these challenges is strong industry associations. At an individual level we have a strong Institute of Quarrying (IOQ) and its mission is to ‘promote the fellowship of members and enhance the image and professionalism of quarrying in New Zealand’ and at a company level we have the Aggregate and Quarry Association (AQA) that has a strategic leadership role for the industry.”

A strong economy and excellent quality of life are literally built on a foundation of aggregates from the driveway to the workplace. We drive, stand and walk on aggregates yet their importance to society is almost universally underestimated.

Without aggregates we would not continued page 18

We’re right there with you for practical solutions to local authority taxation issues Richard Toovey, Tax Director T 04 494 2394

Michelle Macdonald, Tax Director T 04 494 2393

Jeff Eaton, Tax Director T 04 494 2391

Phil Fisher, Tax Director T 04 494 2396

Level 6 44 Victoria Street PO Box 44 Wellington T +64 4 494 2390 F +64 4 494 2399 www.taxteam.co.nz

NEW ZEALAND LOCAL GOVERNMENT AUGUST 2013

17

NZLG ENGINEERS

New seismic building assessments concern IPENZ The Institution of Professional Engineers New Zealand (IPENZ) is analysing the Government’s changes to earthquake-prone buildings, announced in August, with particular concern about the impact on building strength, the assessment process and increased pressure on the already severe shortage of engineers.

IPENZ chief executive Andrew Cleland says his organisation, which represents about 15,000 engineers nation-wide, has requested further details about the changes to know if they were realistic and in line with best practice.

The Ministry of Building Innovation and Employment (MBIE) announced the deadline for seismic assessments of all non-residential and multi-unit, multi-storey residential buildings would be within five years of new legislation taking affect, with any required strengthening of earthquake-prone buildings to be completed within 15 years of assessment.

However, Dr Cleland says it was unclear from the summary what level of assessment would be required to complete the first assessment – a structural engineer or whether it could be a building inspector who may not have the suitable skills or training required.

He understood that assessment results would not go on a public register until they were agreed upon by all building owners, but confirmation of this was

Sprinklers.

Like having a firefighter in every room.

For more information, visit

fire.org.nz

18

NEW ZEALAND LOCAL GOVERNMENT AUGUST 2013

needed. IPENZ supported disclosure in principle but had concerns which were raised in its submission about imprecise assessment information. Assessments were never an exact science, but the effect of small changes in assessments could be large in cost and repair work. IPENZ would not want to see imprecise assessment methods affect property values, cost or building strength unnecessarily.

IPENZ also wanted to check whether building owners had the right to challenge the assessment results, before they were published on a public register.

“Further analysis of these policy changes will be required to determine if the proposed time-frame and the work required is achievable. At this stage we don’t have any detail on the level of expertise required to complete the first assessment,” Dr Cleland says.

A summary of the MBIE policy main points is available at http://www.dbh.govt.nz/epb-policy-review.

continued from page 17

Young female environmentalist to lead quarry industry have roads, railways, airports, schools, hospitals and other public buildings, clean water supplies, electrical power and a myriad of everyday items such as glass and crockery. Without aggregates we would neither be able to maintain our existing vital infrastructural facilities nor would the built environment be able to expand enabling economic growth both regionally and nationally.

In 2011, New Zealand produced 25.81 million tonnes of aggregates worth $438,835,658.

And with an estimated population of 4,422,700, each New Zealander consumed 5.84 tonnes of aggregates during the year. The economic benefit to our country (direct, indirect and induced) is $2.1 billion and approximately 10,000 jobs.

“To keep providing the base materials New Zealand needs to keep developing, the AQA has an extremely strong board – the level of technical expertise, practical experience and industry knowledge gives me confidence that we can continue on the great work done by previous AQA boards.

“Our deputy chair is Jayden Ellis, who is technical manager – construction materials, with Stevenson Resources. He is highly regarded in the industry that he has served for 20 years He was appointed as a technical expert for IANZ 2008 and also in that year was awarded NZCE(Civil). He is particularly interested in technical solutions, aggregate product development, quality assurance, and control.”

Andrea says she is more than ready to face any challenges that are ahead. “The AQA has a united board, and strong industry support – together we are helping New Zealand to grow and develop.”

REGIONAL UPDATE

Domestic departure tax for Invercargill?

Invercargill City Council plans to build a $13 million new terminal at the city’s airport and is considering a domestic departure tax to pay for the venture.

Airport chairman, Joe O’Connell says the council had considered refurbishing the existing 50-year-old terminal but there were serious seismic problems and a recent Building Code Standard report indicated only 23% of the building complied.

The council owns the airport through holding company Holdco. When it was built in 1964, it was the latest of its kind and easily handled the 44,000 passengers that passed through the terminal in its first year of operation.

Since that time, the number of air services operating through the airport has risen to 273,000 per year. The terminal was also ravaged by floodwaters in the early 1980s and never really regained its smart appearance.

The Invercargill City Council was unanimous at a meeting on July 16 to direct Holdco to spend about $13 million on a new terminal for the airport.

Construction is planned to start early next year and will be completed late in 2015.

The Invercargill Airport will continue to function during the rebuild on the same site of the existing terminal. It will be constructed in three stages over the 20 months of the project.

The new terminal will be 2900sqm, which is only 300sqm more than the existing building. However, there will be use of space inside the terminal and a major plus will be facilities for collecting luggage inside the terminal. This will be a marked improvement on the existing facilities which are

open and exposed to the sometimes chilly southern weather.

Joe O’Connell says the council had considered refurbishing the existing terminal but there were serious seismic problems with the terminal as well as a recent report that only 23% of the building meets the New Zealand Building Code Standard. He also says the new terminal will have a life expectancy of about 10 years before any further serious construction work would be required.

Referring to the possibility of a passenger levy, O’Connell says it is too early to say that a tax on departing passengers would definitely be imposed.

However, he points out strongly that the new terminal is essential for the future operation of the airport and could not be avoided or delayed. He also says the new terminal would be a “significant” investment for the infrastructure of the City of Invercargill and the Southland Region generally.

Holdco has announced through its chairman, Norman Elder, it would borrow the $13 million needed for the construction of the terminal. The chairman indicated his company would repay this loan over a period of between 20 and 25 years. This would depend on the income Holdco received from the council-owned companies over that period of time.

Norman Elder has also generated considerable interest with his statement that having received the investment of $13 million it would either lend the money to the Invercargill Airport Company or that it would convert the loan to capital for which it would offer shares in Holdco.

NEW ZEALAND LOCAL GOVERNMENT AUGUST 2013

19

IPWEA NZ

Ingenium merges with Australian counterpart Rosemary Dennis talks to Braden Austin, incoming president of IPWEA NZ, about the trans-Tasman merger.

The merger came about after an overwhelming mandate by members. The name change was subsequently voted in and formalised at the INGENIUM AGM in Dunedin on June 13 and announced at their annual conference.

IPWEA president Paul Di Iulio, welcomed the New Zealand division to the wider IPWEA family. “This is exciting; likely the biggest thing we’ll do in my time [as president],” he told the conference. “We see this as a great opportunity going both ways.”

Outgoing INGENIUM president, Neil Cook, who led the change to IPWEA NZ, believes the move will strengthen the organisation, expanding opportunities and services to members. “We need to position ourselves for the future and our membership is going to get enormous benefits from being part of a larger organisation”.

Incoming IPWEA NZ president, Braden Austin, paid tribute to Neil Cook’s leadership, saying his legacy is “the massive opportunity that is IPWEA”, pledging to continue building a strong, relevant and vibrant centre of excellence for public infrastructure in New Zealand.

The merger marks a significant turning point and expansion for both bodies as IPWEA gains 920 new members from New Zealand, who will become its largest division.

As a special division of IPWEA, IPWEA NZ will have two directors on the board of IPWEA. The range of services and activities provided will expand with time, as will the range of infrastructure professionals who are members and non-members.

While the merger may seem an historical occasion marking a unique union between New Zealand and Australian public works professional engineers, it has actually been done before. In 1909 New Zealand representatives were invited to join their Australian colleagues to become members of The Institute of Local Government Engineers of Australasia. However, it reverted back to an Australian national institution in 1920 and registered as a trade union called the Association of Local Government Engineers of New South Wales. Seventy years later it separated its professional and industrial areas with the professional members joining the Institute of Municipal Engineering Australia (IMEA). IMEA changed its name again in 1999 to become the current Institute of Public Works Engineering Australia (IPWEA) to more accurately reflect the new direction and on-going changes within the organisation in response to changes in local government engineering practice.

Meanwhile New Zealand’s professional engineers, for the most part, were governed by two organisations.

They were the Institute of County Engineers of New Zealand and the Municipal Division of IPENZ

(Institution of Professional Engineers in New Zealand).

These organisations amalgamated in 1988 to become the Association of Local Government Engineering New Zealand (ALGENZ). By 1997 membership numbers reached 500. The rebranding of ALGENZ to become INGENIUM in 2000 marked a turning point away from a conservative image to reflect a wider and more commercial approach. Now, after celebrating 25 years since amalgamation and service to their New Zealand members, INGENIUM has merged to reconnect under the Australasia umbrella once more as IPWEA NZ. The new IPWEA NZ president, Braden Austin sees the convergence of the two professional bodies as “enabling the New Zealand division to spread our wings but with our key focus remaining on the improved delivery of asset management in the local government sector. We would like to expand our current local government role and move into other public works areas by increasing the services we are offering,

‘The International Infrastructure Management Manual is now a universally applicable document accessed around the world and a great example of a truly collaborative spirit that exists in the engineering industry.’

20

NEW ZEALAND LOCAL GOVERNMENT AUGUST 2013

Braden Austin, president, IPWEA NZ

not only to those who manage local government infrastructure assets. For example, specific training resources such as Engineer to the Contract and International Advanced Asset Management Forum are currently offered and it would be good to see this developing out into other commercial environments”.

Another sense of opportunity for IPWEA NZ is to grow infrastructure asset management of public works both within New Zealand and overseas through the publication of manuals. Austin explains, “One of the most recognisable ways that we can improve infrastructure asset management is through publication of our manuals. Our flagship manual is the International Infrastructure Management Manual (IIMM) which has become somewhat iconic to asset management practice within New Zealand and overseas”.

IPWEA NZ

The New Zealand manual was first published in 1996 by the INGENIUM wholly owned company, NAMS (National Asset Management Support). The compilation of this manual drew on several sources including material published by the Institute of Municipal Engineering Australia. Later editions resulted from collaboration between working parties from New Zealand, Australia, the United States, South Africa and the United Kingdom.

Austin proffers the International Infrastructure Management Manual as a showpiece, “It’s a universally applicable document accessed around the world and a great example of a truly collaborative spirit that exists in the engineering industry”.

Derrick Adams, president of Institution of Professional Engineers NZ (IPENZ) and CE of HEB Construction, also considers the positive benefits from the merger will strengthen asset management practice and connectivity between local government engineers.

“Asset management and connection between local government engineers has always been at the heart of INGENIUM. The move to combine with IPWEA has the potential to enhance both these attributes with greater links to international asset management practice and connection to public works engineers throughout Australasia. It will also create a larger organisation with economies of scale for providing greater services to INGENIUM members. I will look forward to seeing this potential convert into reality while still maintaining the

personal service that we have come to expect.”

Austin also sees the benefits of the already collaborative spirit between the two organisations as enhancing advocacy, and cost sharing through economies of scale. Currently two committees of both organisations, NAMS AU and NAMS NZ, are providing significant Australasian input to the development of ISO 55000 in International Asset Management Standards.

Web-based technology will advance knowledge sharing and networking. A new tool for the New Zealand division will be access to the Ask Your Mates application currently used by IPWEA members to connect to forums and seek advice on technical matters. This trans-Tasman network of 12,000 individuals will foster efficient online collaboration as a communication tool to share knowledge and problem solve.

The 2015 IPWEA NZ conference will be big. Not only will it be an opportunity to celebrate the trans-Tasman amalgamation but to join with local government engineers throughout the world with members from 20 countries.

New Zealand will host this annual conference in Rotorua, together with IPWEA’s biennial (Australasian) conference and also the triennial world congress of the International Federation of Municipal Engineering (IFME). This will be held at the Rotorua Energy Events Centre between June 8 and 11 2015.

To successfully obtain long term resource consents for complex infrastructure projects, speak to MWH Global. Working collaboratively, we identify and mitigate consenting risks, understand and address effects and develop fair and reasonable conditions.

STRATEGIC SERVICES: RESOURCE CONSENTING AND NOTICES OF REQUIREMENT ASSESSMENTS OF EFFECTS ON THE ENVIRONMENT COMMUNITY AND TANGATA WHENUA CONSULTATION EXPERT WITNESSES

SHARP.Solutions

Mayurie Gunatilaka Telephone: (09) 580 7689

NEW ZEALAND LOCAL GOVERNMENT AUGUST 2013

21

ENVIRONMENT

Photo credit: thinkstock

Sullivan Lake

oil slick

Twenty litres of oil was discharged into Whakatane’s Sullivan Lake through storm water pipes on the weekend of August 10 and 11.

Following a complaint from a concerned lakeside resident on the Saturday morning, Bay of Plenty Regional Council Pollution Prevention staff found the oil had entered the lake through the urban storm water system, possibly originating from a light industrial area to the south of Whakatane, Regional Council pollution prevention team leader Steve Pickles says.

“Staff have spent in excess of 20 hours containing and cleaning up the oil using absorbent booms, peat and pads. Add the cost of the gear used with the staff time involved, and it has ended up being a very costly incident for our ratepayers,” he says.

Staff contracted Transpacific to use their sucker truck to remove the contained oil from the lake.

However, there could still be some oil sheen around the lake as small amounts are released from vegetation surrounding the lake, Pickles says.

“It is vitally important that industrial sites and residents properly manage and dispose of their hydrocarbon waste to ensure it does not pollute our waterways,” he says.

“This incident is really disappointing, considering the amount of time and resources being spent on improving the water quality of Sullivan’s Lake by the local community”.

He says Regional Council and Whakatane District Council staff have been planning a joint project to inspect high-risk sites in the Whakatane area where discharges could affect water quality. Site inspections are planned in the next couple of months, he says.

World First in n ne eW Zealand!!

kiwisafer

™

Culvert end ■ reduCes Culvert Crash impaCt severity ■ Cost saving wingwall alternative ■ nZta aCCepted

wAtcH w wA tcH vIdeo Here

ComplianCe TesTing — masH 2009

AvAIlAble from Hynds brAncHes nAtIonwIde 0800 we PIPe (93 7473) www.hynds.co.nz

22

NEW ZEALAND LOCAL GOVERNMENT AUGUST 2013

NZLG LAST WORD

The ‘One Minute Commute’ – The Transformation of the Modern Workplace Empowering employees through enterprise mobility, video collaboration, and flexible working solutions

BY NICK HAWKINS, Director, Technology Consulting Group, Polycom Asia Pacific Video collaboration is increasingly changing workplaces, as advances in technology and the benefits of real-time engagement with dispersed teams are reaping multiple benefits by taking collaboration beyond an office environment. Our appetite for increased connectedness is driving innovators to create new ways to bring us closer together, and these new technologies, such as social business, mobility and cloud-delivered services are the driving forces behind a whole new paradigm for communication that is centred on the power of video collaboration. Today, it’s not just about video conferences in office environments; it’s about delivering the ability to meet face-to-face in any environment.

This transformation is due in large part to the integration of video collaboration into day-to-day mission-critical business operations such as mobile video inspections on the factory floor, crisis response centres in government or video-enabled kiosks in banking. Companies globally are now seeing the value of video collaboration beyond simple travel savings, to include reducing time-to-market, increasing customer service, improving crisis management, and streamlining decision making.

Research has shown that video collaboration in enterprises can help reduce time-to-market and salesrelated costs by as much as 24% and recruitment times by 19%. At the same time, the generation entering the workforce today, combined with technology advancements are driving a visual mobile society. The proliferation of tablets and smartphones are driving new trends such as BYOD (Bring Your Own Device) whereby employees have more choice and flexibility to collaborate the way they want with any device, over any network, and from any location, enabling them to still stay connected to the workplace and colleagues.

In fact, in 2012, Polycom conducted a survey of 400 business decision makers throughout Europe and found that companies with flexible work programmes powered by visual collaboration solutions report that participating employees are an average of 39 percent more productive than others.

Trends such as BYOD and flexible working demonstrate a shift that is seeing more and more people demand the same standards of reliability and usability on their personal devices, as they would on their traditional work-related hardware and softwarebased applications, and the expectation that they can use devices of their choosing on the company network.

The opportunities to take video collaboration beyond the boardroom or traditional work environment by establishing a mobile and more flexible work culture

have now multiplied, given the wider choice in devices and platforms. There is also a rising need for more flexible working arrangements for a workforce on the move and to accommodate newer workplace structures, such as a surge in freelance and contract workers. IDC Research predicts the global mobile worker population is set to reach 1.3 billion by 2015, representing 37.2% of the workforce; in Asia Pacific, this is expected to rise to 40% – representing nearly 830 million employees.

These collaborations are made all the more meaningful through the adoption of video technology, which does not merely bridge distances, but provides the anytime access, face-to-face, personal interactions which are so important in improving organisational communication and successfully conducting business.

Business Continuity and Emergency Response Planning In addition to delivering flexible working benefits, mobility and video collaboration are becoming mission critical when updating business continuity and emergency response plans. As we have seen in Christchurch and now Wellington, emergency response teams are dealing with a wide variety of issues and need fast and effective modes of communication to both assess and respond to emergencies.

Video Collaboration Supporting Emergency Responders in Christchurch On February 22, 2011 the Canterbury region of New Zealand, including the city of Christchurch, suffered a 6.3 magnitude earthquake.

Approximately 24 hours after the quake and with assistance from New Zealand’s Civil Defence, Polycom and Partner Asnet Technologies, provided a HDX 8000 video conferencing unit to the civil defence emergency

NEW ZEALAND LOCAL GOVERNMENT AUGUST 2013

23

NZLG LAST WORD

response headquarters to help with communications.

Civil Defence emergency response teams, using the Polycom HDX 8000, were able to connect with colleagues at the civil defence ‘bunker’ in Wellington.

Using video, the teams could provide regular updates on the disaster and the resulting search and rescue efforts. Each briefing session included updates from Fire, Police, Defence Forces, Local and Central Government under the guidance of National Controller – John Hamilton.

Through this critical time, Asnet Technologies were onsite 24/7 to provide specialist technical support, ensuring video communication remained open for the civil defence teams. This was critical during the aftermath of the quake, a time of uncertainty as emergency teams assessed and responded to the devastation caused by the earthquake.

Months after the earthquake, Asnet Technologies and Polycom were called on again to provide video conferencing support to the Canterbury Earthquakes Royal Commission of Inquiry. The Royal Commission was established to report on the causes of building failure during the earthquake as well as the legal and best-practice requirements for buildings in New Zealand Central Business Districts.

A portable video conferencing solution was established to link a series of witnesses giving evidence from locations including Wellington, Brisbane, San Francisco, LA and San Diego. The inquiry began in April 2011 and was completed in November 2012. During the 14 month enquiry, Asnet Technologies provided technical support during the numerous remote witness sessions to maintain video communications.

Government agencies spend large amounts of money every year in recovery after a natural disaster.

As a result, they are moving from allocating budget for emergency recovery to strategies for prevention and mitigation. This is why governments are not only adopting comprehensive disaster information systems but also integrating video collaboration into all aspects

of emergency management: disaster prevention, preparedness, response and recovery.

The benefits of video conferencing and video content management – systems that enable the recording, archiving, and streaming of video and audio footage – enable personnel to be better prepared, to quickly assess situations and securely communicate face-toface in any environment, whether on-base or in the field. This ensures rapid and informed decision making.

Adopting a Mobility Strategy Adopting mobility and flexible working in an organisation can now be considered a critical requirement in staying ahead of workplace trends, and indeed the competition. In the modern workplace, mobility and flexibility can be seen as key drivers in retaining talent, and benefiting the organisation overall from resulting boosts in motivation, staff morale, customer service and productivity.

NICK HAWKINS is director, technology consulting group for Polycom Asia Pacific. He leads a team of subject matter experts focused on consulting to Polycom’s key customers and partners within APAC about how to meet their collaborative solutions needs and integrate Polycom technology into their existing communications environment. Nick is a master at engaging with customers at all levels and has an innovative approach to consulting.

His passion for what he does and his easy going style makes him a popular speaking figure at seminars and workshops across the region.

Mobilising the Workforce: How to Get Started Adopting an enterprise mobility strategy within an organisation should be considered as a lot more than merely equipping employees with remote access privileges or a mobile connection. Mobility is no longer a practice limited to working “offsite” or from home offices; it is also about extending and replicating real-life meeting experiences to create a virtual collaboration environment. To find the best mobile collaboration solutions for an organisation, here are some key considerations: Identify users: Learn who or which processes in your organisation will benefit most.

Are mobility solutions required to extend the face-to-face experience of executive meetings in a boardroom, or do you wish to extend collaboration to other parts of the business, such as the

24

NEW ZEALAND LOCAL GOVERNMENT AUGUST 2013

factory floor for remote inspections, laboratories for meetings between research & development teams, or a construction site to liaise with project teams? User segmentation is necessary to identify the most productive and cost-effective collaboration solutions.

Determine use cases: True enterprise mobility begins with understanding employee communication requirements and job processes to identify the most applicable technology.

An effective strategy will enable employees to effectively carry out duties as normal outside of an office environment and bring about significant behavioural and efficiency changes in job functions.

Find out who employees need to communicate with, from where, and how often, to establish the basic use cases for your workforce.

Ascertain the most suitable types of mobile devices: Advances in video collaboration technology has seen it extend to a variety of devices across a number of platforms. However, a one-size fits all mobility strategy may not be suitable across all business functions. For instance, for a teleworker, desktop solutions such as a video-enabled phone or laptop would perhaps be the most suitable, whereas for a salesperson who is constantly on the move, a mobile or tablet device may be the preferred option.

Analyse network requirements: Determine how employees connect to a network to establish firewall traversal solutions. It is also essential to identify users and required connectivity to design user profiles, and network architecture.

Lighting consumes about 40% of the electricity in a typical commercial building.

Are you wasting money lighting unoccupied spaces?

EECA Subsidy is now available for Wattstopper Lighting Controls.

Contact Eurotec for details.

Wall mount Occupancy Sensors

Control Six Catalogue

No matter what type of building you’re looking at, there are areas where specific lighting controls are the perfect solution.

Room layout, common operating characteristics and usage patterns can virtually compel a specific control solution.

• Offices • Conference Rooms • Restrooms • Lunch/Break Rooms • Utility/Storage Rooms • Exteriors They all have a ‘best fit’ energy-efficient lighting control solution that provides maximal energy savings and increased convenience and productivity.

To find out how Wattstopper can reduce your energy bills contact Eurotec today on 0800 111 990 for a free copy of the Wattstopper Control Six brochure - it's the bright way to a better future.

EUROTEC

Eurotec Limited : 750 Great South Rd Penrose, Auckland Tel : 09-579-1990 Fax : 09-525-3334 Email: sales@eurotec.co.nz Website: www.eurotec.co.nz

HEANEY & PARTNERS BARRISTERS AND SOLICITORS

(09) 3030 100 Fax (09) 3677 009 Level 26, PwC Tower, 188 Quay Street, Auckland

Local & Regional Authority Liability Specialists We are a service organisation dedicated to achieving results for all of our clients.

Contact: David Heaney QC DDI (09) 367 7001, Susan Thodey DDI (09) 367 7002

COMING UP IN

PO BOX 105391 DX CP18503

www.heaneypartners.com

SEPTEMBER >> • GIS Mapping • Conferences & Conventions • Environmental Consulting OCTOBER >>

• ICT • Health & Safety • Water & Wastewater

NOVEMBER >> • Water Modelling • Street Lighting • Risk Management

TO FEATURE IN THESE… Please contact: Kim McIntosh email:kimm@mediaweb.co.nz, ph: ddi 09 300 267

ET/WATT/2012

Ceiling mount Occupancy Sensors

This smile is sustainable.

NEW TO COME ?

There are many good reasons to work with Abilities Group, like great results, competitive rates and our ongoing commitment to recycling and sustainability.

But most importantly, when you outsource to us, you’re giving someone a reason to feel proud and valued, and that’s something truly worth sustaining.

Talk to us about your outsourcing requirements 09 444 0611, or visit www.abilities.co.nz

Enriching the Lives of People With Disabilities.

Packaging PCB Assembly Recycling E-cycling Secure Document Destruction