Buller District Council and NZTA confirm final PMO flood recovery costs

Buller District Council (BDC) has confirmed with NZ Transport Agency Waka Kotahi (NZTA) the final costs for the Roading Return to Service (RTS) flood recovery works which are to be covered by council.

At the Risk and Audit Committee (RAC) meeting on 17 September, a letter from NZTA was tabled, highlighting four areas of work. Three of these related to RTS works, with the fourth concerning speed control sign costs from a matter settled previously.

The three RTS issues all relate to historic claims and decisions made by the Project Management Office (PMO) for the RTS programme and are detailed as follows:

1. PMO consultancy costs that should not have been claimed, amounting to $254,000

2. A proposed Price Level Adjustment (PLA – which is a request for additional funding) of $762,000 that was subsequently not supported by NZTA

3. An acknowledgment that works to a value of between $500,000 and $600,000 were completed under the PMO, to a standard over and above the agreed specification from NZTA, will not need to be repaid.

At each RAC meeting, BDC reports on forecasted costs over the agreed budget for the RTS programme, with the current value of those works being $704,000. This overspend will not be covered by NZTA, meaning the PLA will not take effect.

BDC and NZTA have been working together to find a solution that has no rating impact for BDC. This can be achieved by reprioritising projects in Buller’s three-year $30M National Land Transport Programme (NLTP) roading budget. The NLTP is how NZTA funds local councils to improve their transportation infrastructure.

BDC’s Group Manager Infrastructure Services Anthony Blom says: “We are pleased to be able to finalise the remaining impacts relating to funding of the RTS work, and to be able to draw a line under the consequences of decision-making by the PMO. It has been pleasing to work closely with NZTA to find a solution that appropriately and fairly finalises these costs.

“We are heartened by the support and confidence shown by NZTA, which includes recent additional funding ($3.4M) for resilience and safety works on the Karamea Highway.”

NZTA’s Director Regional Relationships, James Caygill says: “NZTA has been working closely with BDC to finalise the RTS work, and believes the outcome reached is fair and reasonable.

“Our decisions on this matter have been positively swayed by the significant process and relationship improvements between all levels at BDC. In particular, the improvements in both procurement processes and contract management practices gives confidence that historic issues like the PMO are not likely to be repeated.”

-ENDS-

For further information please contact:
Community Engagement Team
Buller District Council
Media.Enquiries@bdc.govt.nz 

Disclaimer
The information in this media release was correct at time of publication. Changes in circumstances after the time of publication may impact on the accuracy of the information.