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12. Te Kaha
Surrounding Streets - Construction Options
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Reference Te Tohutoro:
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24/1552603
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Responsible Officer(s) Te Pou Matua:
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Jenny
Rankin, Senior Project Manager Transport
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Accountable ELT Member Pouwhakarae:
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Brent
Smith, Acting General Manager City Infrastructure
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1. Purpose and Origin of the Report Te Pūtake Pūrongo
1.1 The
purpose of this report is to outline options for completing the Te Kaha
Surrounding Streets project and seek Council approval to proceed with the
construction of the remaining works ahead of the opening of One New Zealand
Stadium at Te Kaha.
1.2 This report is staff generated.
2. Officer Recommendations Ngā Tūtohu
That the Council:
1. Receives the information in the Te Kaha
Surrounding Streets - Construction Options Report.
2. Notes that the decision in this report is assessed as high significance
based on the Christchurch City Council’s Significance and Engagement
Policy.
3. Instructs staff to proceed with the remaining scope of the transport
works associated with the Te Kaha Surrounding Streets Project (Separable
Portion 3 (SP3)). This is specified as:
a. Lichfield Street between Barbadoes Street and Fitzgerald Avenue,
b. Tuam Street between Barbadoes Street and Fitzgerald Avenue,
c. Madras Street between Moorhouse Avenue and Tuam Street; and
d. Remaining works on Lichfield Street between Manchester Street and
Madras Street.
4. Notes that completing the remaining scope of the transport works
associated with the Te Kaha Surrounding Streets Project (Separable Portion 3)
will be an additional 0.06% impact on rates.
5. Notes that the Public Excluded Attachment A can be reviewed for
potential public release after 22 October 2025.
3. Executive Summary Te Whakarāpopoto Matua
3.1 The
Council has awarded a contract to Issac Construction Ltd for water and
transport works to be undertaken around the One New Zealand Stadium at Te
Kaka. The physical works have been awarded in 3 separable portions (SP)
as follows:
3.1.1 SP1 relates to water
supply and waste water upgrades for $6.6 million, currently on time and on
budget, plus a contract variation of $475k to replace old water main pipes in
Tuam Street;
3.1.2 SP2 relates to
Critical Transport works, the contract was awarded for $10.6 million and
currently on time and on budget.
3.1.3 SP3 relates to
Outlying/non-critical Transport works - the cost for SP3 is $5.9 million.
3.2 The
decision arising from this report is in respect of the SP3 package of works and
whether it should proceed or not.
3.3 This
report provides options for continuing with the remaining transport works or
cancelling/postponing construction until a later date, and the associated
implications.
3.4 The
preferred option, as outlined in section 4 of the report, is to proceed with
the remaining transport work (SP3), which as explained in the Finance section
below has an incremental cost of $4 million, for the following reasons:
· Maximises
the efficiency of the street reinstatement ahead of the opening of One New
Zealand Stadium at Te Kaha (Stadium);
· Reduces the
risk of reputational and operational issues associated with carrying out
streetworks outside the Stadium after its opening;
· Minimises
long-term construction disruption to neighbouring businesses and property
owners by utilising the one-pass approach methodology;
· Ensures
provision for taxi and rideshare services, and private buses providing
transport to those attending events at the Stadium;
· Provides
transport network efficiencies and a higher user experience for accessing the
Stadium during events, along with wider transport network efficiencies for all
modes of transport including cycling and walking.
3.4.1 However, this approach also:
· Removes any opportunity to attract funding through the National
Land Transport Fund (NLTF);
· Has a higher
cost to the Council: without NZTA subsidy this work will be funded through
borrowing (refer Attachment A – Public Excluded Para 2.6 for revenue
assumptions), so will come at a marginal long-term cost to ratepayers, or would
need to be offset through delays to other Council projects;
· Has a longer
initial construction period, extending the major works by 3-4 months: and this results
in continuing immediate impacts on local businesses
3.5 Once
a decision has been made by the Council, this will be instructed to the
Contractor and incorporated into their work programme.
4. Background/Context Te Horopaki
4.1 Christchurch
will soon have the most modern, state of the art, multi-use arena within the
southern hemisphere (One Stadium New Zealand at Te Kaha). There is a need to
upgrade the surrounding streets to make them safer and more pedestrian
friendly, so that they are ready for the increased activity that this area is
going to experience.
4.2 After
it opens, One Stadium New Zealand at Te Kaha and its surrounding precinct (Te
Kaharoa) will frequently host events that will attract an estimated
15,000-20,000 people. It will also host larger, events less frequently.
NZTA Funding and Budget
4.3 As
presented in the Memo to the Council dated 21 October 2024 (refer Attachment A),
the Council has been informed by NZTA that the Transport works associated with
the Te Kaha Surrounding Streets Project is extremely unlikely to attract
funding through the National Land Transport Programme (NLTP) 2024-27.
This is due to funding in the NZTA Activity Class being fully committed and the
timing of the works.
4.4 The
Te Kaha Package of Works includes both 2W projects (water supply and waste
water) and transport projects. The total value of this package of work is $34
million. Of the $34 million, $11.4 million of this is associated with the water
supply and waste water upgrades. The remaining $23 million is associated with
the transport portion of the work.
4.5 The
table below outlines the overall project budgets and contract status:
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Transport
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2 Waters
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Total
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Overall Project Budget
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$23 million
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$11 million
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$34 million (rounded), being $23.1
million + $10.9 million as detailed below.
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Construction Costs
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Status
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Contract Price SP1
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-
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$6.6 million
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Awarded.
92% Complete.
On budget.
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Contract Price SP2
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$10.6 million
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-
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Awarded.
53% Complete.
On budget.
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Contract Price SP3
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$5.9 million
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-
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Not awarded.
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Total Contract Value
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$23.1 million
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Transport
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2 Waters
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Remaining project costs ($10.9 million)
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$6.5 million
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$4.4 million
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Including contingency, staff costs, fees and
construction costs such lighting and utilities (external to main contract).
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Including contingency, staff costs, fees and
construction costs (external to main contract).
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Construction
Contract
4.6 Isaac
Construction has been awarded the contract to for the Te Kaha Surrounding
Streets project. Its planned methodology aims to achieve the tight
timeframes for delivery, maintain flexibility to work with the Te Kaha stadium
contractor and provide value for money.
4.7 The
construction contract has been let in three separable portions (SP):
4.7.1 SP1 – Three
Waters work - $6.6 million portion of the contract- Construction 92% complete
and on budget (noting the variation of $475k above, refer para 3.1.1).
4.7.2 SP2 – Critical
Transport works - $10.6 million portion of the contract – Construction
40% complete and on budget.
4.7.3 SP3 –
Outlying/non-critical Transport works - $5.9 million portion of the contract
– Not instructed for construction.
4.8 At
this stage SP1 and SP2 has been instructed for construction. SP3 has been
awarded as a separable provisional item, see Figure 1 and a summary of it
below. Isaac Construction will be the contractor if SP3 proceeds.
Figure 1
– Separable Portion 3
4.9 On
21 August 2024, staff advised the Council that a decision is required prior to
December 2024 to ensure completion of the delivery of the Te Kaha Surrounding
Streets Package of Work ahead of the opening of One New Zealand Stadium at Te
Kaha.
4.10 SP3
refers to the remainder of the transport works and includes:
· The one-way conversion of Tuam Street, including provision of coach
parking;
· The two-way conversion of Lichfield Street between Barbadoes Street
and Fitzgerald Avenue, including provision of taxi/rideshare facilities;
· The pedestrian and cycle improvements on Madras Street adjacent to
Ara Institute of Canterbury;
· The completion of Lichfield Street (Madras Street to Manchester
Street) to the previously approved landscaped and paved finish.
4.11 The
SP3 works are a provisional separable portion of the overall construction
contract awarded to Isaac Construction. This portion has a contract price
of $5.9 million if completed as currently programmed.
4.12 Should
the Council decide to defer or cancel the SP3 portion of the contract, the
Council will still need to carry out a portion of works, at a non-avoidable
close out cost of $1.95 million. This is required to ensure that the
transport works undertaken to date return the streets to a safe and trafficable
state, and includes stormwater pipes, civils such as kerb and channel works,
and traffic signals.
Construction addresses the following risks
4.13 The
one-way conversion of Tuam Street and the two-way conversion of Lichfield
Street between Barbadoes Street and Fitzgerald Avenue have been identified in
the Event Traffic Management Plan report as important traffic management
features for the operation of the One New Zealand Stadium at Te Kaha.
4.13.1 They have been designed to
ensure that there is capacity for private bus parking, rideshare
drop-off/pick-up areas, and these features are easily accessible from
Fitzgerald Avenue.
4.13.2 Should these elements not be
included in the construction ahead of the opening of Te Kaha Surrounding
Streets, significant additional Traffic Management would need to be considered
for smaller and medium sized event to ensure that some provision for rideshare
services and private charter bus services could operate efficiently.
4.14 The
pedestrian and cycle improvements on Madras Street adjacent to Ara Institute of
Canterbury, will provide a wide pedestrian connection for those parking and
walking in the southern suburbs of Sydenham and Waltham to the city. The number
of pedestrians is expected to rise with the opening of the Stadium.
4.14.1 Additionally, these works will
have a daily benefit to Ara students. Ara has raised with the Council long term
safety concerns for students accessing businesses to the west of the campus and
cyclists trying to access Ara from the St Asaph Street cycleway to the
north. The time to improve the functionality of the pedestrian space in
this area would be best achieved ahead of the opening of One New Zealand
Stadium at Te Kaha.
4.15 Construction
of these sections after the stadium is open and operating would have a large
impact on the transport network and management of events at the stadium, as
well as a continued impact on the businesses operating in this area.
Supporting
Information
4.16 The following related memos/information were circulated to the
meeting members:
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Date
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Subject
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April 2024
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Te Kaha Surrounding Streets – NZTA
Funding Council Memo April 24
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16
October 2024
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Te Kaha Surrounding Streets – NZTA Funding
Update and Project Cost Impacts Council Memo October 24
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4.17 The following related information session/workshops have taken place
for the members of the meeting:
Options Considered Ngā
Kōwhiringa Whaiwhakaaro
4.18 The
following reasonably practicable options were considered and are assessed in
this report:
4.18.1 Proceed with SP3 as recommended.
4.18.2 Cancel SP3
4.18.3 Delay SP3 until a later date.
Options Descriptions Ngā
Kōwhiringa
4.19 Preferred
Option: Option 1 - Proceed with the remaining transport works.
4.19.1 Option Description: Instruct
the construction of the remaining transport works (SP3).
4.19.2 Option Advantages
· Maximises the efficiency of the street reinstatement ahead of the
opening of One New Zealand Stadium at Te Kaha.
· Reduces operational issues associated with carrying out streetworks
outside the stadium after opening.
· Minimises long term construction disruption to neighbouring
businesses and property owners by utilising the one-pass approach methodology.
· Ensures provision for taxi and rideshare services, and private
buses.
· Provides greater efficiency across the city’s transport
network, by providing capability and capacity for large numbers of users via
all modes of transport to readily enter and depart the stadium and surrounding
street area.
· Enhances both the safety and user experience of patrons attending
events at the stadium and reduces the reputational risk of a compromised user
experience.
4.19.3 Option Disadvantages
· Removes
any opportunity to attract funding through the NLTF.
· Has
a higher cost: without NZTA subsidy (refer Attachment A – Public Excluded
Para 2.6 for revenue assumptions) this work would be funded through borrowing,
so will come at as a marginal long-term cost to ratepayers or would need to be
offset through delays to other Council projects.
· Has
a longer initial construction period of 3-4 months: results in continuing
immediate impacts on local businesses.
4.20 Alternative
Option: Option 2 – Cancel the remaining portion of the transport
works (SP3)
4.20.1 Option Description: Cancel
SP3, with non-avoidable close out costs of $1.95 million and requires:
· Asphalting to bring roads and footpaths to level and provide a
trafficable surface.
· Minor re-work of some kerb lines at intersections.
· Changes to road marking.
4.20.2 Option Advantages
· Construction impacts around One New Zealand Stadium at Te Kaha would
cease more quickly.
· Lower cost to ratepayers as not incurring the incremental $4
million.
4.20.3 Option Disadvantages
· Increases the cost of running events at the Stadium due to the need
to undertake additional Event Traffic Management Plans (ETMP).
· There would be no provision on the streets surrounding the stadium
for rideshare service pick-up/drop off and private coach parking, significant
additional Traffic Management would be required at each event.
· Additional work would need to be done to ensure the surrounding
streets were operational, including signalised intersections modifications,
line marking changes and additional surface asphalting.
· Compromises efficiency across the city’s transport network, by
reducing capability and capacity for large numbers of users to readily enter
and depart the stadium and surrounding street area.
· Compromises the user experience of people attending events at the
stadium.
4.21 Alternative
Option: Option 3 – Delay the remaining portion of the transport
works (SP3) (Noting that deferral beyond 2026 would in effect be very similar
to cancellation in effects and NZTA funding would need to be re-applied for)
4.21.1 Option Description: Pausing
the construction of SP3 until a later date, this will include:
· Asphalting to bring roads and footpaths to level and provide a
trafficable surface.
· Minor re-work of some kerb lines at intersections.
· Changes to road marking.
· The cost of deferral is estimated at not less than $7.8 million,
comprising the non avoidable close out costs of $1.95 million plus all of the
construction costs associated with SP3 at the construction rates that apply at
that future point in time.
4.21.2 Option Advantages
· Immediate construction impacts around One New Zealand Stadium at Te
Kaha would cease more quickly.
· Funding – There may be an opportunity to attract subsidy from
NZTA for the remaining works either later in the current NLTP, or in future
NLTPs.
4.21.3 Option Disadvantages
· Approved design will not be installed ahead of the opening of the
One New Zealand Stadium at Te Kaha. Consequently, higher event costs would
arise from the need to undertake additional ETMP to manage the traffic to the
venue on event days.
· There would be no provision on the streets surrounding the stadium
for rideshare service pick-up/drop off and private coach parking. Significant
additional Traffic Management would be required at each event to make provision
for this until such time as the work was completed.
· Additional work would need to be done to ensure the surrounding
streets were operational. Signalised intersections would require modification,
line marking changes would need to be made and additional surface asphalting
would be required. This would come at an additional cost of $1.95 million.
· The construction costs associated with SP3 are currently
approximately $5.9 million, this is likely to increase in the future. Current
construction costs also incorporate cost efficiencies associated with Traffic
Management Costs and construction methodology efficiencies.
· Recommencing the work at a later date would result in additional
construction impacts on affected communities.
· The timing of any further construction would need to be coordinated
and timed to minimised disruption to events.
Analysis Criteria Ngā Paearu
Wetekina
4.22 The
following considerations have been taken into account when analysing the
options:
4.22.1 Construction impact – what
is the impact on the construction timeline and methodology.
4.22.2 Financial impact – is
there additional cost to the project or is there an impact on potential
subsidy.
4.22.3 Reputational impact – what
will the impact be on local stakeholders and how does the option relate to the
original decision.
5. Financial Implications Ngā Hīraunga Rauemi
Capex/Opex Ngā Utu Whakahaere
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Proceed with SP3 (remaining transport works)
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Cancelling SP3 (remaining transport works)
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Deferring SP3 (remaining transport works)
until 2026
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Cost to Implement
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$5.9 million
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$1.95 million
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>$7.8 million (5.9M + 1.95M)
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Works required
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Delivery of full SP3 package of works.
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Intersections and pavement surfaces made
safe and trafficable.
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Intersections and pavement surfaces made
safe and trafficable. Delivery of SP3 at a later date.
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Maintenance/Ongoing Costs
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Net ongoing operational costs will not be
significantly different.
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Reinstatement of trafficable surface
likely to have shorter asset life (~5-10 years). *
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If decision made in 2026** net ongoing
operational costs will not be significantly different.
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Funding Source
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LTP Transport Budget CPMS ID#18396
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LTP Transport Budget CPMS ID#18396
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LTP Transport Budget
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Funding Availability
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NZTA funding not available.
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NZTA funding not available.
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NZTA unlikely to consider funding until
late 2025.
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Impact on Rates – Assumes no NZTA
funding
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0.06%
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Up to 0.02%
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To be calculated once project approved
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*This option assumes that the road and footpaths would be sealed
with a minimal 30mm of AC to bring the surface to level, which has an asset
life of 5-10 years. The asset life could be extended through a thicker AC
layer, however, this would require a dig out of the existing structure and
would therefore have further cost implications
**Noting that deferral beyond 2026 would in effect be a cancellation
and NZTA Funding would need to be re-applied for.
5.1
As noted in para 4.12 there are non-avoidable close out costs of $1.95 million
associated with deferring or cancelling SP3. The effect of these
non-avoidable close out costs is that the incremental costs of recommended
Option for SP3 is $4 million ($5.9-$1.95).
6. Considerations Ngā Whai Whakaaro
Risks and Mitigations Ngā
Mōrearea me ngā Whakamātautau
6.1 There
are a number of risks associated with the decision in this report. The main
risks have been identified as:
6.1.1 Financial.
6.1.2 Engineering/Technical.
6.1.3 Reputational.
Financial
Risks
6.2 The
risk of costs associated with delaying or cancelling the project are likely to
increase on the basis of a number of factors:
6.2.1 Potential for
re-tendering reduced construction package in future years.
6.2.2 Loss of efficiencies.
Engineering/Technical
Risks
6.3 The
conversion of Tuam Street to a one-way street (between Barbadoes Street and
Fitzgerald Avenue) and the conversion of Lichfield Street (between Barbadoes
Street and Fitzgerald Avenue) to a two-way street are required to allow smooth
and efficient access for patrons using shared passenger vehicle services. The
designated areas for drop-off/pick-up and coach parking are located in these
two blocks. Their design has been developed to ensure traffic flow and
operations within the city during small and medium sized events has a limited
impact on the wider transport network.
Reputational
Risks
6.4 The
decision to undertake the construction of the surrounding streets package of
works in line with the construction of the stadium was for a number of reasons:
6.4.1 Provide the greatest
opportunity for the smooth and cost-effective running of events at the One New
Zealand Stadium at Te Kaha.
6.4.2 Reduce the impact of
smaller and medium sized events on the wider transport network.
6.4.3 Ensure that the
disruption to the neighbouring properties and businesses due to construction
was as limited as possible.
6.4.4 Provide opportunities
for complementary activity to take place around the Te Kaha precinct.
6.5 Cancelling
or pausing the project has the potential to add delays to the construction
duration, and it is highly likely that the approved design will not be
completed in time for the opening of One New Zealand Stadium at Te Kaha for
events.
6.6 Local
businesses, properties and residents will have uncertainty over the timeframe
of construction impacts and what the future area will look like. There is
a risk that investment and redevelopment of the area may be affected.
Legal Considerations Ngā
Hīraunga ā-Ture
6.7 Statutory
and/or delegated authority to undertake proposals in the report:
6.7.1 The statutory power
used to undertake the proposals as contained in this report are under the Local
Government Act 2002.
6.8 Other Legal Implications:
6.8.1 There is no legal
context, issue, or implication relevant to this decision.
Strategy and Policy Considerations Te Whai
Kaupapa here
6.9 The
required decision:
6.9.1 Aligns with the Christchurch
City Council’s Strategic Framework. Creating
a well-connected and accessible city, promoting active and public transport as
well as a vibrant and thriving city centre.
6.9.2 Is assessed as high significance based on the Christchurch City
Council’s Significance and Engagement Policy. The level of
significance was determined by considering the
high level of interest from stakeholders through project progression and as
part of the Hearing process and the fact that the decision has an impact on the
metropolitan area of the central city.
6.9.3 Is consistent with the Council’s Plans and Policies.
6.10 This report supports the Council's
Long Term Plan (2024 - 2034):
6.11 Transport
6.11.1 Activity:
Transport
· Level
of Service: 16.0.10 Maintain the perception (resident satisfaction) that
Christchurch is a walking friendly city - >=85% resident satisfaction
Community Impacts and Views Ngā Mariu
ā-Hāpori
6.12 Community
views have not been sought in relation to this decision because it relates to a
contractual arrangement and construction sequencing. Community impacts
and views were sought as part of the Hearings Panel process and changes as a
result of consultation were made to the final approved design. The approved
design has been reflected in the detailed design and tender process.
6.13 The decision affects the following wards/Community Board areas:
6.13.1 Central Ward/Waipapa
Papanui-Innes Central Community Board.
6.14 The
decision in this report is determined to be of metropolitan significance
because it is within the metropolitan (Part A) area of the central city.
Impact on Mana Whenua Ngā Whai Take
Mana Whenua
6.15 The decision does not involve a significant decision in relation
to ancestral land, a body of water or other elements of intrinsic value,
therefore this decision does not specifically impact
Mana Whenua, their culture, and traditions.
6.16 The
decision does not involve a matter of interest to Mana
Whenua and will not impact on our agreed partnership priorities with Ngā Papatipu Rūnanga, as the
decision relates to construction methodology issues.
Climate Change Impact Considerations Ngā
Whai Whakaaro mā te Āhuarangi
6.17 The
proposals in this report are unlikely to contribute significantly to adaptation
to the impacts of climate change or emissions reductions, as it relates to
construction methodology issues.
7. Next Steps Ngā Mahinga ā-muri
7.1 Should the Council decision be to accept the
preferred option, staff will arrange for the Engineer to the Contract to
instruct the Transport works relating to SP3. This will enable the
contractor to proceed with the remainder of transport works ahead of the
opening of One New Zealand Stadium at Te Kaha.
7.2 Should the Council decision be to accept
either of the remaining two options, staff will arrange for the Engineer to the
Contract to instruct the contractor to complete only works necessary for the
safe operation of the surrounding streets and cancel SP3 from the current
contract.
Attachments Ngā Tāpirihanga
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No.
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Title
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Reference
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Page
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a
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Council Memo
Te Kaha Surrounding Streets - NZTA Funding Update and Project Cost Impacts
(Under Separate Cover) - Confidential
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24/1759651
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In addition to the attached documents, the following background
information is available:
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Document
Name – Location / File Link
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Not
applicable
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Signatories Ngā Kaiwaitohu
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Author
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Jenny Rankin -
Senior Project Manager
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Approved By
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Jacob Bradbury
- Manager Planning & Delivery Transport
Lynette Ellis
- Head of Transport & Waste Management
Brent Smith -
Acting General Manager City Infrastructure
Bede Carran -
General Manager Finance, Risk & Performance / Chief Financial Officer
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