Thames-Coromandel district council
project status report update
Project Name: / Coromandel Harbour Facilities Programme / Project Code: / 11045Project Exec: / david hammond / Project Manager: / Barry Ogilvie
Senior Supplier / paul davies (legal)
Steve Baker (Finance)
Sam Napia (Iwi) / Project Phase / Implementing Authorised projects
Senior User / Greg Hampton (Harbours)
% Complete / Initiation stage complete
15% of authorised projects complete / Status Report Period: / sept 2015
Status / PREVIOUS / Red = major issue requiring attention. Yellow = major issue under control. Green = no Major issues
Overall / Overall progress is slow due to the complexity of resolving critical issues (process and politics). Consequently the Council’s investment is not generating visible outputs/outcomes. Consistent and regular community communications and engagement is required to “retain” the mandate Council has to committing ongoing resources.
It is proposed that this project be taken through a stage close off process with the establishment of 4 new projects, under a broader programme of work concept, being (1) Sugarloaf wharf facilities development (2) Dredged basin (3) Furey’s Creek & (4) Coromandel Pier development.
General ledger and ECM frameworks will be established to ensure reporting and accounting against each project is enabled.
Scope / Project Board determined that 2 live projects to have scopes developed. Live projects are:
(1) Sugarloaf – includes MOU with CMFA, negotiate underwriting contract for consent process, support consent process with proactive QA, negotiate build contract (to the extent possible in the absence of consent).
Project (2) Inner Harbour – develop partnership proposal to engage potential funding partners and review options for Furey’s as plan B
Time / Partnerhsip proposal to be put to Council for sign off in October.
MOU to be taken to CMFA Exec for sign off October 19 and then to Council for sign off at end of October meeting.
Title strategy confirmed and progress being made on MACAA application
Cost / Ongoing budget revisions will be required as work packages firm up. All expenditure in 2015/16 is likely to be opex.
2015/16 budget being sought from Council 7 October.
People / New project structure approved by Council in Sept.
Some work packages still require team managers assigned to them. New PM needs appointed and handover process agreed.
Issues / Failure of TCDC to hold ownership of the Sugarloaf reclaimed land creating some reputational risk exposure.
New project timelines are ambitious and will require dedicated resources/effort from across TCDC.
CMFA executive may not sign MOU. This may result in TCDC seeking consent for a Ferry berth at Sugarloaf and leaving CMFA to seek consent for their proposed industry solution at Sugarloaf. Coordination will be required.
Legal costs are difficult to control. Assessment of value for money may conclude that different advisers are required.
The title process has not yet moved to consultation with Iwi.
Insufficient Economic Impact Analysis to create compelling case for Council investment on ED basis.
Limited engagement with Ferry operators to determine their support for increasing trips / size.
Risk / Significant reputational risk across a number of key stakeholders exists. Council reputation may be (unreasonably in some instances) damaged if no short – medium solution to the harbour facilities issues is implemented. Outcome is outside TCDC control and in some instances outside TCDC influence.
Highly visible projects will require ongoing public updates to avoid misinformation leading to unintended consequences. Communication strategy now in place.
Lack of external funding remains the significant barrier to implementing a whole of harbour solution.
Key risks
Risk / Mitigation or action / Owner / StatusReputational risk flowing from no broadly satisfactory outcome being achieved due to factors outside TCDC control (community will look to assign blame if nothing happens). / Regular project updates pushed to stakeholders across a range of media/engagements per the communication strategy.
Limit potential damage by tightly managing information flow timelines. / Laurna White / Open
Next CSWG meeting scheduled for 8 Oct.
Consultation may be required to establish the CCOs / Programme Board to agree consultation strategy.
CCO structure simplified and CCO to be exempt. / Programme Board, Angela Jane, Paul Davies / Council resolution to exempt CCO required at Oct meeting
Value for money risk - efficiency and effectiveness of spend exposure due to lack of continuity and dedication of project resources. / Dedicate internal resources to the projects and work packages.
Tight control on communication and commitments through good practice level project management and documentation. / Programme Executive & Programme Manager / Open – Considerable vfm perception risk due to use of external advisers
Financial risk – delegations and budgets are not in place for the proposed project structure beyond Sept 2015.
Some budget details can only be developed on a stage by stage basis, including allocations across Opex or Capex. / 2015/16 forecast expenditure to be included in papers to Council for 7 October meeting. / Team Managers & CFO / Open
Reputational risk - lack of clarity around land ownership at existing reclamation. / No formal discussions yet in place with Iwi. Advice being sought from LINZ re: MAACA processes.
Legal advice being secured from BerrySimons on possible ways forward. / Peter Wishart and Paul Davies. / Open
Key issues
Issue / Mitigation or action / Owner / StatusNew Scopes need developed and approved. / Project scopes have been agreed by Programme Board. PIDs need drafted and pushed through P2 QA. / Programme Manager / On-going
Patukirikiri, Sugar Loaf and Coro Wharf land status / MACAA applications to be lodged in conjunction with iwi consultation process.
Senior management have recommended proceeding with title applications for land associated with both the Sugarloaf and Coromandel Wharf. / Paul Davies, Peter Wishart & Greg Hampton / External has been sought and recommended approach being implemented.
Review and completion of business case / Initial business case to be renamed a technical feasibility study. Business cases to be drafted for the 2 live projects as and when potential funding impact on TCDC known. / Programme Manager & Angela Jane / On-going
Formal establishment of the project budget / Financial models and budgets are not in place.
Interim budget till Sept 2015 approved by Council.
Full year budget to be approved by Council 7 Oct 2015. / Team managers, CFO & Programme Manager / URGENT
CMFA relationship management / Final draft MOU is being considered by CMFA Executive 19 Oct. / Programme Executive and Programme Manager / IF CMFA agree to sign draft then draft to be considered by Council at Oct meeting.
Financial robustness of CMFA and industry. CMFA are currently the “partner” entity with which TCDC are negotiating with / supporting through the consenting process. No analysis has been done on the financial capability of CMFA to sustain the consenting work programme nor on the industry’s ability to sustain an increased usage fee. / CCO/Lease/Licence model to roll out to individual licence holders rather than CMFA.
No CCO2 in the model thereby reducing reliance on CMFA.
Assumptions related to industry projections to be tested with Aquaculture NZ and MPI Aquaculture unit. / Programme Manager
There appears to be limited recent economic impact analysis undertaken to underpin the harbour development investments / Commission independent EIA work (either to refresh existing work or undertake new research) at appropriate times.
Work with WRC to identify funding for this element of the projects. / Programme Executive / CEO presented at Oct WRC meeting.
Milestones and key deliverables (M/D)
Item / M/D / Baseline / Reforecast / Actual1. / LINZ title application / Title strategy agreed. Draft application created. Consultation with Iwi required.
2. / Draft Business Cases and project documents for the two live projects. / No resources committed to this work package at this time.
3 / Establish CCOs to operationalise sugarloaf development / 30/11/2015 / Establishing the CCO needs to happen after consultation with Iwi. Resolution to exempt required at Oct Council meeting.
4 / MOU with CMFA / 30/9/2015 / 19/10/ 2015 / MOU to be considered at CMFA Exec meeting 19 Oct.
5 / Project brochure / 30/9/2015 / Final draft to be available for Council sign off at Oct meeting.
6 / Close out initiation phase and establish new project structure / 30/9/2015 / closed / Resolution to approve new project structures secured from Council Sept 2015.
7 / Conclude appropriate consultation to secure mandate for further investment in programme / March 2016 / Consultation to be undertaken as part of annual plan processes.
Project financials
JDE # / (a) Budget / (b) Actual / (c ) Accrued / (d) Forecast / (e) Variance / Variance notes251.20139 / $75,000 / $32,843 / $46,500 / $0 / ($4,343) / Significant legal costs have been incurred in Sept as the MAACA and LINZ application work packages advance. The invoices are being reviewed against a value for money framework.
Partnership proposal fully invoiced in Sept.
Increased PM role in Sept
Financial notes
Project budget secured to cover costs till 30 September 2015. Approval is to be sought for a full year budget at 7 October 2015 Council meeting.
$10k for the Coromandel Pier business case is a charge against the Mayor’s discretionary fund and not recorded against this project.
Project Forecasts to 31 March 2016
Oct 15 / Nov 15 / Dec 15 / Jan 16 / Feb 16 / Mar 16 / Balance 2016 / (d)Total Forecast
$9000 / $23090 / $19090 / $5000 / $12965 / $12965 / $20460 / $102570
Progress summary
Recently completed tasks· Sept Council (structure and budget) and EDC (Coromandel Pier) presentations
· Proposed project structure approved
· GAB review of Furey’s Creek proposal
· MAACA application process under way
· Co-ownership and co-operational CCO/Lease/Licence structure developed
· CMFA MOU draft finalised (to be presented to CMFA Exec 19 Oct)
· Programme Brochure in final draft (project board review)
· WRC presentation
Key tasks to be completed within the next period
· Craft P2 documentation for new project structure
· Secure Council resolutions for budget, CCO exempt status, partnership proposal and CMFA MOU
· Handover PM role
· Hold CSWG meeting (8 Oct)
· Conclude feedback to the Coromandel Pier business case team
· Commence consultation with Iwi
· Finalise MACAA application
Project number: / Page 1 of 6