Category: Financial Planning

Otahuhu and Manukau Transport Interchange Confusion

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Still no clear communication from Auckland Transport

 

Source: Auckland Transport
Source: Auckland Transport

Otahuhu Interchange goes ahead but there is a catch Podcast

 

The excerpt from communications with Auckland Transport:

At the moment, Auckland Transport are operating in a very uncertain funding environment as they deal with potentially lower LTP capital expenditure in the Basic Transport Network (BTN) versus that in the Auckland Plan Transport Network (APTN). 

Auckland Transport have opted to progress design and potentially early works (within funding) on projects that would be funded in earlier years under the APTN to ensure momentum is not lost. 

And in the case of these two projects, the following would be the desired timeline without the constrained BTN funding:

  • Construction on the Manukau Bus Interchange project would start in the 1st quarter of 2015 with target completion in late 2015. Currently, the detailed design process is underway.
  • Construction of the Otahuhu Bus Train Interchange would start later this month with expected completion in late 2015. Currently, the detailed design process is underway.

 

In addition, Auckland Transport are currently exploring re-prioritisation options for these 2 projects.  As this is currently being worked through, no update to the draft LTP has been made. If re-prioritisation cannot be achieved in 2014/15 and in the early years of the LTP, Auckland Transport would only deliver on initial improvements within the current funding, with the delivery of full specification in 2020/21. 

Current Basic Transport Network (the Mayors proposal) budgeted figures:

Manukau Bus Interchange

  • We have design funding of $3.8m in 2014/15
  • Then there is no funding provided in the BTN programme until 2020/21
  • Total required funding is planned at $23.9m (inflated)

Otahuhu Bus Train Interchange

  • We have design and some early works funding of $6.3m in 2014/15
  • Then there is no funding provided in the BTN programme until 2020/21
  • Total required funding is planned at $26.8m (inflated)

—-ends—–

 

 

The BTN vs APTN Funding Situation

 

Context and Historic Posts on the Otahuhu and Manukau Interchange Situation (from oldest to newest)

Public Transport Projects Being Used as Political Weapons?

Update on Otahuhu Interchange

Otahuhu Interchange Proceeds

 

Updates as information comes to hand

 

Council Replies to Concern on IT Budget Blowouts

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This is presented entirely without comment from me

 

Note: any future commentary will be in other posts

 

From Auckland Council

IT programme – no cost blowout

 

Following discussion of an update on Auckland Council’s Information Services Transformational Programme at today’s Finance and Performance Committee, council has released the report publicly.

Today’s committee agenda item (see resolutions below) sought to bring forward $24m to be spent in the earlier stages of the project, enabling efficiencies to be achieved later on.

The report (attached) covers the consolidation of core council information technology systems and addresses the reprioritisation of the programme to optimise outcomes, and the extension and enhancement of the testing programme.

Chief Operating Officer Dean Kimpton says there is no ‘cost blowout’ and rigorous risk management processes are being applied to the programme.

“There is no change to our overall IT budget and no increase in funding required; however, the NewCore component of the overall programme has increased in cost and will require an additional year to complete.

“We’ve taken a closer look at the complexity of our systems and carried out more detailed due diligence, which has given us a clearer picture of the priorities. As a result, we are accelerating some parts of the project and must adjust funding accordingly.

“We want to simplify our processes so Aucklanders have systems that are customer-friendly and easy to use, at their fingertips. Building consents, resource consents, rating, dog licensing and the booking of community facilities are some of the areas that will benefit from more customer-friendly online and IT systems.

“The accelerated $24m spend agreed at today’s committee is simply bringing forward some capital spend. We want all the inter-related parts of the programme rolled out in the optimal order. It’s also about applying more rigour to testing as we go forward and ensuring we are learning from any Novopay-type experiences,” Mr Kimpton says.

“We want to realise the benefits of the programme at a greater rate, hence we brought forward some of the spend,” he says.

An independent chief information officer (CIO) reference group, made up of CIOs from a range of public sector and corporate organisations, has brought strong governance oversight to the council’s IT transformation programme, and has endorsed the approach taken.

Independent expertise from EY has also brought critical oversight of the programme.

——ends—–

 

Further Information

 

Finance and Performance Committee Meeting – 20 November 2014

Resolutions:

  1. a) note the update and progress being made on the Organisation IS Transformation programme
  2. b) note the reprioritisation of the programme to optimise the overall outcomes of the programme and note that no additional funding for the IS transformation programme is requested
  3. c) approve the re-phasing of $24 million of IS transformation budget forward to the 2015 and 2016 years in order to optimise overall programme outcomes
  4. d) note the extended and intensified quality assurance and testing programme at a cost of $13m
  5. e) agree that the Council’s IT programme progress including NewCore be reported to this Committee on a quarterly basis
  6. f) agree that the item and report be considered in the open section of the meeting.

 

About NewCore:

The NewCore transformation (consolidation) project is complex. It is designed to consolidate the core systems from the eight legacy councils that support customer interactions, rates, regulatory services and related property data. Each legacy council had a different system (or group of systems) which collected and stored large amounts of complex data in different ways.

As well as consolidation, this project will reduce the cost of collecting information and managing these services. It aims to:

  • simplify and standardise customer and business processes for customer interaction, rates, regulatory services and related property data
  • enable more effective development of digital solutions for customers, giving them more choices around how they want to interact with council
  • consolidate core customer-facing  systems that support these processes
  • create a standardized base set of processes and systems for implementation of the Unitary Plan and bylaw reviews, where only one set of systems needs to be updated, as opposed to multiple legacy systems, and reducing the operational risk associated with complex end-of-life systems.

 

The Agenda Item concerning the IT situation

 

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Might as well stick this up from Councillor Brewer seeming it is public record anyhow:

 

NO SPIN ZONE….

NewCore CAPEX budget has more than doubled in two years

Auckland Councillor Cameron Brewer says two official council reports two years apart show the capital expenditure budget for council’s NewCore computer system increasing by more than double from $58.1m to $124m. The Councillor for Orakei says the council is now desperate to downplay the project’s increasing costs by saying this is all just about shuffling around the organisation’s existing and wider IT budget.

“Let’s not lose sight that the full and final promise made to councillors in 2012 specified a total project capital cost less than half of what was highlighted in today’s report to Finance & Performance. Mr Brewer and other councillors were pleased the committee today debated the item in public after pressure for the matters to be taken out of confidential. “An amendment to defer any decisions to the full council next week was unfortunately lost 8/9, while my amendment which helpfully highlighted some home truths about the growing capital expenditure budget and expressed genuine council concern was amazingly lost 7/9:


BREWER/QUAX:

  • ‘Note that on 29 November 2012 councillors were advised that the “total cost of the programme is $71m made up of $58.1m CAPEX and $12.9m OPEX” while the 20 November 2014 report states that “total NewCore (CAPEX) costs post reset are $124m” with any additional operational expenditure not specified, and the committee records its utmost concern around future cost escalations and the project’s impact on Auckland Council’s other non-NewCore IT budget.’
  • “The public deserves to know that this project’s capital budget has changed dramatically in the past two years, not just hear the tricky spin denying any blow-out. This is not just about bringing some approved capital budget forward. This is a project which now has more than twice the total capital price-tag, and we still have no idea about any subsequent operational expenditure increases and impacts.
  • “To achieve all this they have raided the organisation’s wider IT budget for the next five years and so alarmingly we can now probably expect budget overruns in other IT areas in future years which is another big worry. Rest assured the hand will keep coming out,” says Cameron Brewer.

 

Rating Valuation Objection Period Extended

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You have until just before Christmas

 

Literally

From Auckland Council

Rating valuation objection period extended

 

The period for people to object to their 2014 rating valuation has been extended until 5pm Tuesday 23 December 2014. 

 

Acting CFO Kevin Ramsay says website issues have meant some people had difficulty accessing new values online when they were made available on Monday 10 November 2014.

“Early in the week we had unprecedented demand on our website, which meant there was intermittent service for users trying to access new values.”

“We were able to help many people over the phone to find out their value and we are still encouraging people to call 0508 000 021 for assistance”.

By now most property owners should have received their new values in the mail.

Council property valuations – key facts

  • Valuations, which are completed every three years, will be used to help determine the share of rates for each property for year beginning 1 July 2015, but have no impact on the amount of rates council collects overall.
  • This year’s property revaluation showed an average capital value increase of 29 per cent since 2011.
  • The average residential capital value increase was 34.8 per cent.

—-ends—–

 

Update on Otahuhu Interchange

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Confusion

 

This is what happens when Auckland Transport Comms (yes you Wally) either mixes a message up or the managers responsible in overseeing a project do not reply to emails on a given project: ABSOLUTE CONFUSION.

 

I was updated earlier today that rather than Otahuhu Transport Interchange being delayed it has in fact being brought forward to start construction on Wednesday as noted below:

From Auckland Transport

Otahuhu bus train interchange

Auckland Transport plans to build a new bus train interchange next to the existing Otahuhu Railway Station to contribute to a better connected and more frequent service.

Project status: Design
Project zone: South

Project purpose

  • Auckland Transport is moving to a simpler and more integrated public transport network as part of the Public Transport Network Plan.
  • A new network of buses and trains will change the way people travel – including the need for some passengers to transfer at key interchanges.
  • The new Otāhuhu bus/train interchange will be a key transfer station connecting bus users from the region to the rail network.

Helping to serve as a catalyst for growth for Otāhuhu, the new interchange is also expected to attract more people to live and work in the area.

Benefits

  • Better connectivity between bus and rail networks.
  • Will use increased capacity of new electric trains.
  • Improved pedestrian connections in Otāhuhu.
  • Bus services will be more frequent and bus and train timetables will be aligned.
  • New infrastructure provides a catalyst for growth and rejuvenation in Otāhuhu.

Milestones

August 2014 – Public open days.
September 2014 – Completion of detailed design.
November 2014 – Construction begins.
July 2015 – Completion of the bus interchange and concourse (stage one).
December 2015 – Completion of the train platform canopies and upgrade (stage two).

Project details

  • Upgrade of existing Otāhuhu Train Station to a bus and train interchange.
  • The bus component of the interchange will be built on land adjacent to the existing Otāhuhu Train Station.
  • The interchange will incorporate the existing Otāhuhu Train Station, linking the rail platform with two new bus platforms and a terminal building via an elevated concourse.
  • Vehicles will access the site via a new signalised western approach to the Walmsley Rd / Saleyards Rd / Station Rd signalised intersection.
  • The total cost, including investigation, design, construction and land purchase, will be around $25 million.

The new bus interchange will be located next to the existing Otāhuhu Rail Station with construction expected to get underway in December 2014.

………

Source: https://at.govt.nz/projects-roadworks/otahuhu-bus-train-interchange/

 

So the update that went up from Auckland Transport this morning (thanks for the Presser – not) illustrates phase one starts this week.

This now raises a few more questions around the entire mess owing to Auckland Transport’s comm’s not being the best I can think of across the wider Council organisation.

 

Of course questions around AT comm’s is one thing but when having a search through the Tender/Procurement page of the Auckland Transport website to see what might be going on something went amiss.

 

Let’s start with the Forward Work Program which I can an eye on to see where things are going, and most likely where Councillor Wood started looking last week.

The Forward Working Document 

 

So the Forward Working Document (August) states the Tender should be out and closing at the end of the month. Now with construction starting ahead of time I still checked the ‘Current Tender’ page which showed nothing, and finally the Contracts Awarded page which also shows nothing for a $20m approximate project. Granted the contract could have been awarded this month and the PDF not updated as of yet (last updated 31 October).

Current Tenders 1 Current Tenders 2

 

The Award Contracts Page

 

So I am at a total loss here and am wondering what is going on with:

  • Councillor George Wood was right to draw the conclusion that they have been pushed back to 2021 based on the LTP documents (as I also concluded as well.
  • There hasn’t been any tenders released as noted above.
  • So how come AT is starting construction in two days?

 

At least the Interchange is going ahead. Now to see what is going with Manukau.