Council has entered into contract negotiations with Hawkins Construction as preferred tenderer to build the new Indoor Sport and Exhibition Centre at Baypark.
The tender specifications allow 10 days to reach agreement on all details. CEO Stephen Town has authority from Council to negotiate and let the contract. In advice to elected members, Stephen told us that with one exception the price difference between the other five tenderers was around 2%. Methodology (how they were going to go about the construction process) and types of fixtures and fittings, sub contractors and local content were all matters Council originally asked to be considered. From this information it is reasonable to assume that the project can be completed at under the $41 million budget. TECT has provided just under $8 million in support in a funding undertaking combination of money and tax credits.

Bus stop concerns
The downtown bus stop (now downgraded from a Transportation Centre title) will remain in Wharf and Willow Street in much the same form but with a different method of operation.
Council listened to concerns from retailers, elderly, disabled, vision-impaired and substantially altered the original proposal. Five parks outside eastern shops on Willow Street will remain. Buses will mainly come and go via Durham Street instead of Southern Willow Street/Grey Street. Buses will be asked to switch off their diesel engines if stopped for any length of time. No expensive 'waiting lounge” fit out and inter city bus operation will be given further consideration. This should be able to be done for a much smaller budget than the original $750,000 with $450,000 NZTA subsidy and still get the same 60% subsidy from them.

Workable compromise
Council received significant new information in a workshop presentation last week. An excellent presentation from Tony Young, a downtown retailer, graphically demonstrated the shambles that presently occurs from time to time with buses and changed mine and others' minds that 'do nothing” was an option. It looks like this is a workable compromise for all interest groups.

Smoke and mirrors funding
A proposal from staff and Tangata Whenua to build a Maori Cultural Centre as part of the proposed Mount Hot Pools redevelopment didn't get past first base at its first airing. All elected members were under the impression that this cultural centre would be entirely self funded by Tangata Whenua. When the agenda came out last week I was very surprised to read that in fact the $2.5 million was to be in the form of a loan from Tangata Whenua, interest bearing and secured by Redeemable Preference Shares (RPS). I phoned some of my colleagues who were equally surprised.
This is the same form as how part of Baywave was funded. At the time I termed this ‘smoke and mirrors' funding. I wouldn't go that far this time but just how all elected members missed this is a moot point. So, with David Stewart declaring an interest (he is a TCAL director) Council unanimously, except for Wayne Moultrie, kicked this one for touch.
In the event that the Mount Hot Pools goes ahead the opportunity could still be there for a fully funded Maori Cultural Centre. Greg Brownless said it should sink or swim on its own merits. That is, it is paid for upfront by Tangata Whenua, wholly operated by them with a written guarantee of no ratepayer funding capital or operational ever being sought.

Learning from past lessons
Long term readers will recall an unwritten undertaking from the Art Gallery when it was being proposed. Give us $1 million and you'll never hear from us again. They got the $1 million. Then a few years later came back for another $1 million. Which they got. Then an operational grant (currently around $850,000) against mine and others' vote. We should learn the lesson and I think this Council has.

Biting the hand that feeds
On the subject of the Art Gallery, I had a ring from a SunLive reporter seeking my comment on the reported resignation of the Gallery Director. It speaks volumes of the Art Gallery operation that Council was not formally advised of this and left it to a media release to inform us. Elected members have been seeking face to face meetings with the Art Gallery for months now and have been put off. I'm aware of one elected member leaving phone messages and it took a fortnight for him to get a call returned. Talk about biting the hand that feeds you.
This resignation could well be a way forward for a more productive, rational and cooperative funding generation with a view to reducing ongoing demands from increased ratepayer subsidy and maybe, shock horror, a corner for local upcoming artists. Even Picasso had to start somewhere!

Rewarding water conservers
I had another go at a stepped water tariff to redistribute the effects of increasing per cubic metre water charges with a view to rewarding those who are conserving their water requirements.
In particular this would help those on lower incomes who save water. It was like being at a Flat Earth Society meeting. Most of my colleagues don't understand or don't want to understand the stepped tariff. Murray Guy said it would result in a dirty brown environment.

It was anti family and he was diametrically opposed to revisiting the issue. Bill Grainger said his visitors from Australia wouldn't be able to shower or something like that. Unbelievable!
Matters to revisit
The matter I wanted to revisit is that Council has to generate $15 million or so to run the water system. Of that, 70% is infrastructure cost. So as consumption drops as people reduce their wastage the per cubic metre prices goes up. With only 2% - 3% of water consumed going on actual consumption and something like 20% - 30% on household user there is 60% - 70% discretionary water use. It would also encompass use of reclaimed water. Elsewhere in the world where they do actively manage their water charges it is this discretionary use, like leaving your hose running down the drain, that pays the premium and those who use less are rewarded. It's simple, it's well documented, requires little work to implement but requires the will to do it. There was a 200% increase in support as Mike Baker and Wayne Moultrie joined me in supporting another look at it. But it failed 8-3. In a world that yields most painfully to change it will be reconsidered in the next 10 year plan review in 2012.