Council has $14m list of water projects for $6.8m Govt fund

The Timaru District Council has overallocated funding applications for water projects by $7.2 million in the hope of getting as much work done as possible through a $6.8m Government stimulus fund.

The council got access to the $6.8m through the signing of a Memorandum of Understanding (MOU) with the Government over the proposed review of the three waters which meant it received $3.43m towards stimulus water projects, with an extra $3.43m share also available from a $50m Canterbury-region wide fund for finalising a delivery plan.

The funding is for projects not previously listed in this year’s council annual plan, but the work must commence by March 31, 2021, and be completed by March 31, 2022.

A report by the council’s senior programme delivery manager Ashley Harper’s to councillors said ‘‘it is permissible to submit a delivery plan that is for a value higher than the Government Stimulus Funding allocation’’.

‘‘The benefit of this approach is that should the projects become either stalled or achieved for a cost less than estimated, there would be no need to seek further approvals for additional projects,’’ the report says

‘‘On this basis a delivery plan with a higher value than the Government funding package will be submitted for approval, but noting that the $6.86m of support is the maximum receivable.’’

Among the $14m of 20 potential water stimulus projects on the council list are a new Te Moana Water treatment plant ($1.5m), Dawson St pump ($900k), Washdyke network reticulation improvements ($6m), Whales Creek discharge at Caroline Bay improvements ($550k) and the renewal of a water main in the Port Loop area ($800k). The rough order of costs of the list is about $14.3m, plus or minus 30 per cent.

Timaru District mayor Nigel Bowen said the council was working towards a ‘‘really tight deadline’’ for the submissions.

‘‘I don’t think the qualifying criteria is as rigorous as some funding processes,’’ Bowen said.

‘‘We’ve over-allocated to make sure we can get as much done as possible.’’

Harper’s report also noted the council already has $53m in capital projects on its list for the 2020/21 financial year, which means that extra stimulus projects might be difficult to get started.

‘‘Therefore, developing an achievable work programme needs to be carried out with a keen eye to the overall requirements of the MOU and the above delivery plan criteria.’’

Harper’s report said that given the pace at which the 3Waters Stimulus Package was deployed by the Government and the pace that the delivery plan is being developed, ‘‘it is envisaged that there will need to be modifications to the delivery plan as the projects proceed’’.

‘‘In order to be agile and to avoid time delays it is suggested that a small working party of council be delegated authority to work with staff to ensure that the delivery plan delivers the greatest benefit to the Timaru District,’’ the report says.

Councillors agreed to form a working party including the mayor and both the infrastructure committee chairwoman (Cr Sally Parker) and deputy chairman (Cr Paddy O’Reilly) to help keep up with progress on the delivery plan.