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Full Feasibility Study Report - Far North District Council

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Coast to Coast Cycle Way<br />

FAR NORTH<br />

FEASIBILITY STUDY AND BUSINESS PLAN DECEMBER 2009


Table of Contents<br />

1.0 Executive Summary . . . . . 4<br />

2.0 Introduction . . . . . . 7<br />

3.0 The Experience . . . . . 8<br />

FEASIBILITY STUDY<br />

4.0 Engineering Introduction . . . . 12<br />

5.0 Engineering Methodology . . . . 13<br />

6.0 Trail Specification . . . . . 14<br />

7.0 Route Description and Land Ownership . . 16<br />

8.0 Major Structures and Works . . . . 20<br />

9.0 Statutory Approvals and Assessment of Effects . 22<br />

10.0 Construction and Maintenance . . . 23<br />

11.0 Design and Construction Cost Estimates . . 25<br />

12.0 Community Consultation . . . . 26<br />

13.0 Telecommunications . . . . . 28<br />

BUSINESS PLAN<br />

14.0 Project Plan . . . . . . 30<br />

15.0 Project Schedule . . . . . 33<br />

16.0 Marketing Strategy . . . . . 34<br />

17.0 Organisation Plan . . . . . 43<br />

17.1 Organisational Structure . . . 43<br />

17.2 Key Roles and Responsibilities . . 43<br />

18.0 Contracting and Procurement Plan . . . 44<br />

19.0 Consultation and Stakeholder Management . . 45<br />

20.0 Quality Assurance Plan . . . . 48<br />

21.0 Funding Sources . . . . . 49<br />

22.0 Risk Management . . . . . 50<br />

23.0 Benefit Realisations . . . . . 51<br />

23.1 Cost and Benefits Summary . . . 55<br />

24.0 Governance Structure and Partnerships . . 58<br />

25.0 Significant issues to be resolved . . . 60<br />

26.0 Community Support . . . . . 61<br />

27.0 Appendices . . . . . . 62


1.0 Executive Summary<br />

This document lays out a ‘once in a lifetime’ opportunity for central government to substantially<br />

contribute to the social and economic and cultural well‐being of the <strong>Far</strong> <strong>North</strong>. Not often does such<br />

an opportunity present itself, where government can fund the development of a tourist asset and in<br />

doing so:<br />

• make a significant contribution to the economic development in an area of New Zealand<br />

which is generally classified as being in the lower socio economic category<br />

• empower the local communities (being at least being 50% Maori) to work together with<br />

<strong>Council</strong> to create ongoing local employment and income<br />

• deliver a unique visitor experience for both overseas visitors and New Zealanders alike in<br />

terms of the rich cultural values of the <strong>North</strong> and the undisputed significance of the area in<br />

New Zealand history<br />

whilst at the same time being a highly efficient and sustainable return on funds invested.<br />

1. Creating a fantastic visitor experience<br />

The <strong>Far</strong> <strong>North</strong> 85.6 km coast to coast cycleway will be different to other cycleways in New<br />

Zealand. <strong>North</strong>land is known as ‘the birthplace of our nation’ and it is steeped in history and<br />

natural beauty. The cycleway will be world‐class, delivering:<br />

- stunning and varied natural scenery, marketed east coast to west coast;<br />

- stories of the area, its history and personal Maori cultural experiences;<br />

- welcoming and willing communities;<br />

- an assortment of quality accommodation, from backpackers to luxury;<br />

- consistent signage, clear information and interpretation; and<br />

- an experience that will last a life time.<br />

One of the highlights and unique features will be a trail of Pou<br />

Pou, which progressively tells a story along the cycleway. These<br />

carved wooden statues (made from local trees) bring to life the<br />

stories of the landscapes and the local people. As cyclists pedal<br />

alongside lakes and through the countryside they have the<br />

opportunity to discover and meet with locals, families and<br />

communities and learn about the customs and traditions of<br />

Ngapuhi, New Zealand’s largest confederation of tribal groups.<br />

(Concept drawing only.)<br />

2. Community support<br />

Community support for this project is wide and encompassing. It has captured the imagination of<br />

local people (from all backgrounds) and there is great enthusiasm to see the track built. The<br />

cycleway has become a catalyst to better connect communities and open further dialogue. The<br />

<strong>Council</strong>, Western and Eastern Community Boards are champions of this project and are keen to<br />

support its development in whatever way they can.<br />

4


3. Agreement of landowners<br />

The trail traverses through private land (Okaihau – Horeke), a rail corridor managed by Ontrack<br />

and in places, the roading system.<br />

Agreement in principle has been received from the key private landowners affected by the<br />

proposed route. There are a couple of minor sections where the landowner is still considering<br />

the idea, however, as there are alternative options this would not compromise the overall<br />

cycleway project.<br />

There are 27 lease/license holders along the rail corridor. All parties have been communicated<br />

with. There will need to be further discussion about easement arrangements, once it has been<br />

confirmed how these will be handled. Ontrack fully support the concept and acknowledge that<br />

the cycleway would have preference. There is a willingness to achieve mutually beneficial<br />

arrangements with current land users.<br />

Use of the roading system does not raise any serious issues.<br />

It should be noted that the He Whakaputanga o te Rangatiratanga o Niu Tireni Waitangi Tribunal<br />

Hearings commence in March 2010. There are claims over the rail corridor. No land will change<br />

hands as a result of the cycleway and it is anticipated that any negotiations would continue in the<br />

usual way.<br />

4. Ownership and Economic Viability<br />

It is proposed that the track will ultimately be owned by <strong>Council</strong> and be managed by a <strong>Council</strong><br />

Owned Charitable Trust. The <strong>Council</strong> will initially lead development of the track and once a<br />

Governance Group is in place, they will take on the responsibility of asset management, strategic<br />

direction and upkeep. Commercial operator/s would be contracted to maintain and operate the<br />

track.<br />

A website, developed in association with other cycleways, would provide information and a<br />

booking system, maintained with 5% of gross income. Projected operating costs and income<br />

show the Governance Group operating with a profit within four years.<br />

The national cycleway concept began as a means to improve economic circumstances and the<br />

economic benefits, particularly for <strong>Far</strong> <strong>North</strong> Maori, are encouraging. About 75 people would be<br />

employed directly in the development of the track with about 20 – 30 of these people being<br />

Work and Income clients. Once the track is opened a minimum of 50 jobs will be created within<br />

the first year.<br />

Accumulative cash flow directly from the cycleway into the community over five years is<br />

estimated to be $28m inclusive of GST.<br />

Private Enterprise/<strong>Far</strong> <strong>North</strong> Community Development Economic Investment<br />

ITEM<br />

AMOUNT<br />

Cycleway construction $13,000,000<br />

Development of hospitality facilities (over 5 years) $1,500,000<br />

Construction of accommodation (over 5 years) $3,750,000<br />

Cyclist spend (over five years) $24,639,880<br />

Trail maintenance (over five years) $634,375<br />

Total direct spend (exclusive of GST) $43,524,255<br />

5


5. Funding of the cycleway development<br />

It is imperative that the entire cycleway be built (not just the 14 kilometres of ‘Quick Start’ from<br />

Okaihau to Kaikohe) to ensure that the <strong>Far</strong> <strong>North</strong> reaps the many potential benefits. There are<br />

currently severe budget restraints within the <strong>Far</strong> <strong>North</strong> <strong>District</strong> <strong>Council</strong> and limited access to<br />

funding avenues in the <strong>Far</strong> <strong>North</strong>. To achieve full track development 100% government<br />

investment will be required. Ongoing costs can be met locally and the initial investment from<br />

central government is expected to be a one off grant.<br />

The cycleway is not marketable unless it runs coast to coast and includes at least one night’s stay<br />

in between. It would be irresponsible to start a project without the guarantee of being able to<br />

complete it. Building the track in stages is not feasible as the two day ride is not marketable<br />

until completed.<br />

The total investment to construct the cycleway is estimated to be $13,219,847m.<br />

This is broken down as follows:<br />

Overall project management $60,000<br />

Design and construction of Kawakawa to Horeke $9,671,016<br />

Vintage Railway upgrade $3,298,831<br />

Pou Pou construction $150,000<br />

Community Consultation $20,000<br />

Other consultants $20,000<br />

TOTAL $13,219,847<br />

The <strong>Far</strong> <strong>North</strong> is a district rich in people, culture and history, however, parts of the whole struggle to<br />

make their way forward. Central government has provided an opportunity for small communities to<br />

enjoy rich rewards and many social benefits through the opportunity to create an outstanding visitor<br />

experience via the national cycleway concept.<br />

This is a worthwhile investment. Local people (and <strong>Council</strong>) are ready and willing to get on with it in<br />

the interests of helping themselves and encouraging their rural communities to prosper. With<br />

Government support, a coast to coast cycleway can be a reality and will help get the <strong>Far</strong> <strong>North</strong><br />

cycling in the right direction.<br />

6


2.0 Introduction<br />

The <strong>Far</strong> <strong>North</strong> <strong>District</strong> <strong>Council</strong> (FNDC) is delighted to be involved in this ‘quick start’ project and to<br />

have led the feasibility process on behalf of its communities. It believes that the potential benefits<br />

are significant and that the development of the cycleway will be a catalyst for other opportunities to<br />

further enrich the area. A number of economically challenged smaller rural communities are<br />

positioned to enjoy some wonderful benefits when the entire route is developed.<br />

<strong>Council</strong> has indicated strong support in principle and recognises the positive impacts this project<br />

would have on local communities. However, in order to meet government timeframes, <strong>Council</strong> has<br />

not formally considered this project. Subject to further discussion with Government in the New<br />

Year, this would be achieved in early 2010.<br />

The contract was received by <strong>Council</strong> in mid October 2009 and work was formally commenced on<br />

developing the feasibility study. On request from central government, <strong>Council</strong> has additionally<br />

included a high level business plan. Both follow the Stage Two guidelines. The two guidelines have<br />

a number of similar information requests. To save repetition, this report has been split into two key<br />

sections, the feasibility study and the business plan. Where information crosses both sections it has<br />

been covered in the most appropriate area, e.g. ‘Assessment of Economic Costs and Benefits’<br />

requested in the feasibility study is now covered in Benefit Realisations in the business plan.<br />

The business plan has been developed at a high level and outlines a suggested process for<br />

developing and operating the cycleway. Initially the business plan will need to be further scoped<br />

and then implemented by the <strong>Far</strong> <strong>North</strong> <strong>District</strong> <strong>Council</strong> as it proceeds in developing the track. On<br />

formation of a Governance Group, the business plan will then become the responsibility of this<br />

group and they will then need to fine tune it once they have clarified their strategic direction.<br />

The <strong>Far</strong> <strong>North</strong> Coast to Coast Cycleway was identified by Prime Minister John Key as one of the<br />

seven initial National Cycleway ‘quick start’ projects, at the Local Government NZ annual conference<br />

in Christchurch in July 2009. This feasibility study looks at linking the two coasts, the port of Opua in<br />

the east to Horeke, a settlement in the inner harbour of the Hokianga. The ‘quick start’ section of<br />

the project is along a rail corridor linking Kaikohe and Okaihau. It has become quite clear that to<br />

enjoy the many benefits of the cycleway, the entire route will need to be built.<br />

The earlier interest in the use of the rail formation for walking and riding evolved from the Western<br />

Community Board seeking to open the length between Kaikohe and Okaihau and with casual users<br />

between Moerewa and Kawakawa (championed by the Eastern Community Board). These Boards<br />

have been working on developing these walking tracks for approximately 18 months, prior to the<br />

government announcement.<br />

The Coast to Coast Cycleway has a total distance of 85.6km, comprising 71.8km of cycle track plus<br />

the 11.5km rail journey to Opua and walkway. Approximately 47 kilometres of this proposed route<br />

is on a railway corridor, under government ownership and managed by Ontrack. The balance of the<br />

route is either under the Bay of Islands Vintage Rail or runs through private land and on public road.<br />

The feasibility study has been co‐ordinated by a Project Manager under the leadership of the<br />

<strong>Council</strong>. A number of sub contractors were brought onboard to complete the different<br />

requirements needed to provide a comprehensive report. Please see Appendix One for<br />

acknowledgements.<br />

7


3.0 The Cycling Experience<br />

DAY ONE<br />

The journey begins in the picturesque<br />

community of Opua (once a port). The end of<br />

the railway can still be seen on the wharf.<br />

From here you meander your way to the train<br />

terminus (to be built) and catch the steam<br />

train to Kawakawa, where you can visit the<br />

quirky Hundertwasser toilets and enjoy a good<br />

cup of coffee.<br />

From Kawakawa, you bike through some beautiful rural<br />

landscapes, enjoying peaceful vistas and interacting with<br />

nature. The area is steeped in history and offers a<br />

variety of backdrops, from bustling towns to farm land<br />

and native bush.<br />

The Kaikohe area will host the overnight stay. There is a<br />

range of accommodation and hospitality outlets,<br />

including historic B&B’s, Marae and hotels/motels.<br />

8


DAY TWO<br />

After enjoying a hearty breakfast, the day begins with a<br />

gentle journey from Kaikohe, through a tunnel and<br />

alongside Lake Omapere to the historic village of Okaihau.<br />

The area is once again steeped in history and there are<br />

many wonderful stories to be told about the lake.<br />

Travelling down through the stunning Utakura Valley you arrive<br />

at Horeke on the west coast. Here you can enjoy the afternoon<br />

from the Horeke Tavern balcony with a cold beer, then either<br />

catch a lift back to your car or board a boat to the south<br />

Hokianga and take the opportunity to view Tane Mahuta.<br />

9


OTHER PLACES OF INTEREST<br />

(Photos courtesy of Destination <strong>North</strong>land, Taiamai Tours & Jenny Atkins)<br />

10


<strong>Feasibility</strong><br />

<strong>Study</strong><br />

11


4.0 Engineering Introduction<br />

Local engineers, Haigh Workman, along with Thomson Survey Ltd, tendered and were awarded the<br />

contract to complete the engineering, surveying and planning requirements of the feasibility study.<br />

Seven specialist technical reports were written for the <strong>Feasibility</strong> <strong>Study</strong>/Business Plan <strong>Report</strong>. Two<br />

of these technical reports have been absorbed into this lead document. The balance accompanies<br />

this document. Following is a list of the detailed information provided in the specialist technical<br />

reports. All of these documents will refer to the book of plans (Plan Book) which provides a visual<br />

presentation of the information contained in the technical reports.<br />

The Technical <strong>Report</strong>s (TR) cover:<br />

• TR 1 Summary <strong>Report</strong><br />

Absorbed in lead document.<br />

• TR 2 Route Selection and Trail Formation Construction:<br />

This report details track surface and construction type, road crossing points, fences and<br />

gates, land requirements and conditions, construction method, and a schedule of estimated<br />

costs.<br />

• TR 3 Bridges and minor Track Structures:<br />

<strong>Report</strong> detailing where and what type of bridges and track support structures are required,<br />

with cost estimates.<br />

• TR 4 Consultation Strategy:<br />

Absorbed in lead document.<br />

• TR 5 Planners <strong>Report</strong> & AEE:<br />

This report identifies consents required under RMA and the approach to be taken for<br />

resource consenting. It provides an Assessment of Environmental Effects for use in<br />

subsequent resource consent applications.<br />

• TR 6 Ecological Assessment:<br />

A terrestrial ecology assessment of the proposed route alignment, with greater emphasis on<br />

the sections where new formation is required (Okaihau to Horeke) and areas where there<br />

may be more sensitive ecology.<br />

• TR 7 Toilets & Shelters:<br />

<strong>Report</strong> detailing the locations and types of toilets and shelters required, with estimated<br />

costs.<br />

• TR8 – Archaeological Assessment:<br />

<strong>Report</strong> with greater emphasis on the sections where new formation is required (Okaihau to<br />

Horeke).<br />

12


5.0 Engineering Methodology<br />

The base route information for this study was provided to the engineers by:<br />

- FNDC (aerial photo maps and landowner information),<br />

- Ontrack,<br />

- Bay of Islands Vintage Rail Trust.<br />

The proposed route is in two key sections:<br />

1. Old Railway corridor (Opua to Okaihau)<br />

The entire rail formation route was inspected on foot and filmed from a helicopter.<br />

At the site walkover, assessment was made of;<br />

- the state of the track formation,<br />

- culverts and bridges,<br />

- access from public roads,<br />

- existing facilities,<br />

- typical fencing and vegetation cover.<br />

From those assessments and filming the engineers were able to develop construction/rehabilitation<br />

requirements and costs. GPS waypoints were taken along the route.<br />

2. “Greenfield” section (Okaihau to Horeke)<br />

The assessment looked at options for the Horeke ‐ Utakura Valley area, which were suggested by a<br />

number of landowners. All options north and east of the Horeke Road ‐ Cook Road intersection<br />

were abandoned after preliminary helicopter and on‐road assessment because of slope, length and<br />

unstable ground. Some options for the western escarpment to the Okaihau volcanic plateau were<br />

eliminated after site inspections and landowner consultation.<br />

The final preferred route resulted from a series of site visits, reviews of helicopter video film,<br />

discussions with landowners and desk top studies by appropriate technical staff. Reference was<br />

made to “Quickmap” and “Google Earth” information.<br />

Selection was made on the basis of gradient, ease of construction, land tenure and ambiance.<br />

13


6.0 Trail Specification<br />

At this stage of the track investigation, the trail surface is to follow the DoC developed “Track<br />

Construction and Maintenance Guidelines” (July 2008), which is considered to be a useful guidance<br />

document.<br />

The trail grade for the proposed <strong>Far</strong> <strong>North</strong> Cycleway is Grade 1 – 2. There is a steep area of 100m<br />

that is 20% or 12 o . This is one of the reasons why the cycleway will be promoted to ride east to<br />

west, as it means you will travel down the hill.<br />

The track types following are preferred by the Ministry of Tourism and are illustrated in the Plan<br />

Book as follows:<br />

Trail Type<br />

Type 1<br />

Type 2<br />

Type 3<br />

Type 4<br />

Type 5<br />

Type 6<br />

Type 7<br />

Details<br />

Trail on existing road (either sealed or unsealed)<br />

Trail on former railway embankment in good condition<br />

Trail on former railway with surface deterioration<br />

Trail on weak sub‐grade (such as soft clay, peat, deep river silt)<br />

Trail over weak, swampy ground<br />

Trail cut into side‐sloping ground<br />

Roadside berm or shoulder of highway<br />

The pavement structure is to comprise;<br />

- confirmation of stability/strength of the base,<br />

- 150mm compacted GAP 40 basecourse,<br />

- 50 mm compacted GAP 20 surface layer.<br />

Track width is generally 2.5 metres minimum, reducing a little for timber deck stretches and for<br />

short distances across more difficult country.<br />

Recommended car parking areas are indicated on the route plans and shown in more detail in the<br />

Plan Book. They will typically require vegetation removal, a minimum of 150mm compacted base<br />

course, AP20 surfacing and edge drainage.<br />

Toilets and shelters are indicated at not greater than 1.0 hour intervals.<br />

Safety barriers (hand rails) on raised structures, are to be 1.4m high.<br />

Technical <strong>Report</strong> 2 refers to several published track construction standards and describes the<br />

desirable geometric (width, gradient) guidelines adopted here.<br />

The following diagram provides a cross section of the cycleway.<br />

14


7.0 Route Description and Land Ownership<br />

The Technical <strong>Report</strong>s 2 and 5 and Plan Book provide full details of route description and land<br />

ownership details. This should be referred to in that it meets all requirements of the <strong>Feasibility</strong><br />

<strong>Study</strong> guidelines. Following is a summary of the key information.<br />

OVERVIEW OF PROPOSED ROUTE<br />

ROUTE INFORMATION<br />

<strong>Far</strong> <strong>North</strong> <strong>District</strong> <strong>Council</strong> provided aerial photography (digitally) including contours and property<br />

boundaries covering the entire area.<br />

The entire proposed route is laid out on those aerial photographs in the accompanying Plan Book.<br />

The aerial photo plans show:<br />

- The route, with distance marks<br />

- Bridges (numbered by section and distance)<br />

- Tunnels<br />

- Property boundaries<br />

- Road crossings<br />

- Access points<br />

- Parking areas<br />

- Toilets<br />

- Shelters<br />

- Property owners.


ROUTE DESCRIPTION<br />

The proposed 85.6km route is from Opua to Horeke and has been split into four sections. The route<br />

goes through six smaller communities; Opua, Kawakawa, Moerewa, Kaikohe, Okaihau and Horeke.<br />

As outlined, Technical <strong>Report</strong> 2 ‘Route Selection and Track Formation’ details proposed track<br />

alignment. That report and the accompanying Plan Book are best read in conjunction with one<br />

another.<br />

The report identifies several generic types of cycleway construction based primarily on the existing<br />

use of the ground that the trail is expected to cover. The Plan Book indicates where the different<br />

types of cycleway lay using distance marks. Identifying generic trail types allows a useful cost<br />

estimate to be developed that would otherwise need to wait for a detailed engineering assessment.<br />

The report provides a narrative description of the preferred route and the rationale for selecting<br />

some alignments ahead of others. As well as the GPS distance information, the description provides<br />

a useful in‐field guide to the groups undertaking any further investigation and construction.<br />

Locations with car parking for normal cycle access to the track are identified. These are mainly at<br />

the two ends and the three intermediate segment points. Also identified are a number of locations<br />

where the cycleway touches public road between remote sections, where cycles can join or leave<br />

the cycleway – e.g. to be picked up with a damaged cycle or if caught in inclement weather.<br />

Points where the trail crosses public roads are also identified, and design solutions are suggested<br />

based on safety aspects and traffic flows. It will be important, further into the development process,<br />

to continue liaison with FNDC roading managers concerning the issues and constraints that arise<br />

where the cycleway crosses or runs alongside public roads within the road reserve. At this stage<br />

they are aware of the points of conflict and will need to approve provisions for safe crossing.<br />

The route is very picturesque and over the journey, visitors will enjoy a landscape that never<br />

remains the same for long. Starting and finishing at inner harbours on the contrasting east and west<br />

coasts, sights will include rural farming country (where the only noise will be that of the wildlife and<br />

the wind in the trees) to bustling small towns. Local Marae, a Pou Pou trail, the world famous<br />

Hundertwasser toilets and many sites of historical and cultural significance, such as old rail<br />

formations will be visible.<br />

The route goes through a macadamia nut farm, pine and native forests, alongside wetlands and<br />

rivers and past the <strong>Far</strong> <strong>North</strong>’s largest lake, Lake Omapere, an area of special significance to Maori.<br />

The trail will conclude going down through the Utakura Valley to Horeke – a very special place,<br />

relatively untouched and tranquil.<br />

BAY OF ISLANDS VINTAGE RAILWAY TRUST<br />

The train trip from Opua to Kawakawa is seen as an integral part of the cycleway. It provides a link<br />

to ensure the cycleway runs coast to coast and also provides a unique element to the journey. The<br />

railway is historically significant and dates back to the discovery of coal in Kawakawa in 1864. A<br />

bridge was built at Derrick Landing in 1881 and is still the oldest curved wooden bridge in the <strong>North</strong><br />

Island and possibly one of the oldest such bridges still functioning in the world. The iconic steam<br />

engine ‘Gabriel’ is the only engine remaining in the world of the five that were built.<br />

17


Opua – Kawakawa, 11.52km<br />

This part of the trail utilises the Bay of Islands Vintage Railway which would transport cyclists (and<br />

their bikes) between Opua and Kawakawa.<br />

Initially the trail would begin with a 1200m walk from the Opua wharf (end of the train track) to a,<br />

yet to be built, train terminus at Colenso Triangle. The journey from Opua to Kawakawa crosses 12<br />

bridges and goes through one tunnel. The track itself is currently live for 4km. Work is required to<br />

open the remaining 6.3km.<br />

Opua was a bustling port and is now a quaint, seaside community with a number of shops, a cafe,<br />

yacht club, marina, boatyard and marine industrial area.<br />

Kawakawa – Kaikohe, 33.78km<br />

This part of the route mainly follows the railway corridor and includes the townships of Kawakawa<br />

(train, Hundertwasser toilets and an ever increasing arts centre), Moerewa and Kaikohe. Maori<br />

community presence is strong and there is a good sense of community pride. All three communities<br />

will benefit from increased economic outcomes.<br />

Aside from the three townships, the majority of this route will be through farm land and forests. An<br />

operational train station is at Otiria.<br />

Kaikohe – Okaihau, 14.97km<br />

This section follows the last section of the railway corridor and includes one tunnel, ending near a<br />

second tunnel in Okaihau. The route goes around the bottom of Hone Heke Memorial and winds its<br />

way through farm land, past Lake Omapere, arriving in the small town of Okaihau.<br />

Okaihau – Horeke, 25.33km<br />

This section runs through private and public land. There are a number of Marae and it is a strong<br />

farming area. The route takes in a macadamia orchard, runs along the Waiharakeke stream and<br />

finishes at the inner Hokianga harbour. Boardwalks need to be developed and the route will run<br />

along the road corridor, next to the sealed/unsealed road. A mangrove experience is also included.<br />

PROPERTY INFORMATION<br />

Horeke – Okaihau<br />

A schedule of owners where a legal easement will be required is outlined in Technical <strong>Report</strong> 5 and<br />

also in the Plan Book. For privacy reasons we have not listed them in this main report (as it will be<br />

seen by the public). All key landowners have given consent in principle. There is a small section<br />

where the track may cross Maori land and a hui needs to be held to confirm access. However, there<br />

are no foreseen concerns as it can be moved beside the main road. There are two points where the<br />

track skirts through or runs down besides a river with riparian rights and informal discussions have<br />

been held and with landowners. Once again there are no major concerns here as there are<br />

alternative routes. Costs have been included for surveying, legal costs and compensation for land to<br />

establish the easements.<br />

18


Okaihau – Kawakawa<br />

There are 27 lease/license holders along the Ontrack rail corridor. Communications have been sent<br />

to all affected landowners, a number of discussions have been held with individual parties and<br />

landowner meetings. Formal negotiations have not being entered into at this time as clarification<br />

from Ontrack is required as to how the land may be leased and managed in the future. There are<br />

currently three options.<br />

It should be noted that every effort will be made to reach a mutually beneficial agreement with<br />

current lease/license holders. However, should there be any issues during the design phase,<br />

Ontrack has confirmed that favour will rest with the cycleway project.<br />

Kawakawa – Opua<br />

This section is leased by the Bay of Islands Vintage Railway Trust. They are fully supportive of the<br />

project. See Appendix Two.<br />

CONSULTATION<br />

Please see Section 12.0, page 24 for consultation details.<br />

TRAIL CONCLUSIONS AND RECOMMENDATIONS<br />

Ultimately, construction of the track elements of the <strong>Far</strong> <strong>North</strong> Coast to Coast Cycleway are not<br />

particularly challenging from an engineering perspective, with the exception of the section from<br />

Okaihau down into the Utakura Stream Valley.<br />

The overall challenge for the formation construction is to provide and transport gravel to the sites<br />

economically, place it and compact it to specification with minimal environmental damage affect.<br />

Some elements of the track alignment, particularly between Okaihau and Horeke, are still being<br />

refined as consultation progresses and it is recommended that the investigation continue along<br />

these lines. Once alignment is fixed, easements, consents, consultation and costing can be<br />

undertaken with more certainty.<br />

Once landowner approvals, easements, consents and concessions are granted, and NZ Rail (as the<br />

requiring authority under the <strong>District</strong> Plan designation) approval is obtained, trail development can<br />

proceed quite easily.<br />

19


8.0 Major Structures and Works<br />

Technical <strong>Report</strong>s 2, 3 and 7 provide detailed information on major structures. Key points<br />

follow.<br />

TRACK FORMATION<br />

For the length of the existing rail corridor, the works comprise;<br />

- clearing vegetation,<br />

- repairing soft areas,<br />

- overlaying compacted basecourse and<br />

- smoothing compacted running course.<br />

For the new section between Okaihau and Horeke, the work involves,<br />

- road edge treatment/widening,<br />

- construction of timber cycleway,<br />

- earthwork formation of new track across pastoral land,<br />

- fencing, gates, stock‐gates.<br />

Total earthworks proposed are 63,628 m 3 .<br />

BRIDGES AND STRUCTURES<br />

The ‘Bridges and minor Structures’ Technical <strong>Report</strong> 3 identifies the engineering standards to which<br />

the cycleway structures need to conform, in keeping with the Otago Central Rail Trail and others. A<br />

schedule of the generic type of structure to be used, similar to that developed by MWH for the<br />

Round the Mountain Trail, is described and the report also describes the costing method for each<br />

type of structure for this preliminary stage, based on experience with a range of bridge projects,<br />

with modifying factors based on knowledge of this project and its terrain etc.<br />

Overall, the structural work is expected to include;<br />

- bridge refurbishment (17 bridges) mostly repainting steel beams and building new decks &<br />

safety rails,<br />

- new timber or steel bridges (12 bridges),<br />

- 440m of raised board walk with safety barriers.<br />

- tunnel repairs (Opua)<br />

- amenity lighting at the tunnel (Kaikohe)<br />

Several culverts and modifications to two existing public road vehicle bridges are also required to<br />

accommodate cyclists. Most structures will be designed to carry a quad‐bike type vehicle, with<br />

driver and load, to allow for access for construction and maintenance. It appears that no bridges will<br />

be required to carry quarry trucks for aggregate delivery, provided sufficient access points and truck<br />

turning bays can be formed at convenient intervals.<br />

In accordance with the brief for this feasibility report, detailed engineering assessment of each<br />

bridge has not been undertaken, but field data has been collected to enable us to provide an<br />

appropriate level of accuracy for cost estimations.<br />

The main field of uncertainty is the condition of existing structures and foundations particularly<br />

along the old railway corridor, where all bridges have deteriorated to some extent and many have<br />

had decking and even beams removed. A detailed assessment will be required at the next stage.<br />

Building consents will be required for every bridge for decks and safety barrier construction.<br />

20


Approximately 70% of the costs will be within the 40km section of disused track between Otiria and<br />

Mangakahia Road. The remaining 30% is associated with two bridges between Kaikohe and Okaihau<br />

and for new bridges and culverts down the Utakura Valley and across the flats to Horeke.<br />

TOILETS<br />

The wastewater report details proposed toilet locations and types based on expected wastewater<br />

volume, locations, ground conditions and terrain. In summary it is anticipated that six new toilets<br />

will need to be installed along the route, and this is in addition to the seven toilets already<br />

established and operating in townships along the trail.<br />

At the early stages of the cycleway development, it is anticipated that all the new toilets developed<br />

will need to be waterless – these are either containment or pit toilets, depending primarily on likely<br />

degree of use and the surrounding soils and terrain. As the trail develops over time, and other<br />

facilities such as cafes are established, these waterless units will be replaced by flush toilets<br />

operating with a septic tank or secondary treatment plant.<br />

SHELTERS<br />

Shelters should be located at approximately 5km intervals. While the weather is not commonly very<br />

cold, it can change to heavy rainfall quite quickly, so providing shelter becomes appropriate. Where<br />

suitable, we have indicated shelter positions near to the toilet locations. The recommended<br />

locations are listed in Section 3.1 of the Toilet & Shelters <strong>Report</strong> and are shown in the Plan Book.<br />

CAR AND BIKE PARKS<br />

The main car parks (with bike parking) will be at Opua, Kawakawa and Horeke. Minor car parks will<br />

be at Kaikohe and Okaihau.<br />

Opua<br />

- Casual street side parking in township<br />

- Opportunity for secure parking via commercial operator<br />

- Metalled parking area is proposed for the Train terminus at Colenso Corner.<br />

Kawakawa<br />

- Some roadside parking at the railway station<br />

- An area can be set aside near the station for a commercial operator<br />

Horeke<br />

- Wharf/hotel parking area<br />

- Community hall parking area<br />

- Opportunity to develop secure parking via commercial operator<br />

Kaikohe<br />

- Plenty of casual parking<br />

- A metalled carpark could be formed<br />

Okaihau<br />

- Adequate casual parking available.<br />

21


9.0 Statutory Approvals and Assessment of Effects<br />

A thorough investigation has taken place to ensure that all statutory requirements are allowed for.<br />

The very comprehensive Technical <strong>Report</strong> 5 – ‘Planners <strong>Report</strong> and AEE” deals with Resource<br />

Consent requirements and Assessment of Environmental Effects (AEE), with reference to<br />

consultation undertaken for Resource Consent purposes.<br />

Consents are required from the <strong>Far</strong> <strong>North</strong> <strong>District</strong> <strong>Council</strong>, <strong>North</strong>land Regional <strong>Council</strong>, and<br />

authorities from the New Zealand Historic Places Trust, to establish, operate and maintain the<br />

proposed cycleway. Overall the proposed development is a non‐complying activity, which will need<br />

to be notified.<br />

The study includes an assessment of environmental effects that draws on Technical <strong>Report</strong>s 6<br />

(Ecological assessments) prepared by NZ Environmental and Technical <strong>Report</strong> 8 (Archaeological)<br />

prepared by <strong>North</strong>ern Archaeology.<br />

These series of reports are submitted in a form that, with minor modifications, will be suitable for<br />

submission with the necessary consent application documents.<br />

Building Consent will be required for all bridge “construction”, including for new timber decks to be<br />

put onto existing strong steel beams on the old rail bridges.<br />

Timber platform track will require building consents where it is higher than 1.0m from the ground or<br />

water. A very conservative approach needs to be taken with the provision of safety rails on all<br />

raised structures.<br />

In conclusion the report states that:<br />

- The relevant provisions of the FNDC <strong>District</strong> Plan, the NRC Regional Coastal Plan, the<br />

Regional Water and Soil Plan and Regional Policy Statement, the RMA and HPA can be<br />

adequately addressed; and<br />

- With the proposed mitigation measures defined in conditions of these consents, the adverse<br />

effects of the cycleway development will be “no more than minor”<br />

22


10.0 Construction and Maintenance<br />

CONSTRUCTION REQUIREMENTS<br />

The coast to coast cycleway track construction components are a feasible engineering proposition<br />

and in most locations, are not particularly challenging.<br />

Physical track construction is dependent upon other processes, e.g. gravel extraction from the<br />

Utakura Stream (which NRC advise is a permitted activity within strict rules), building consents for<br />

bridges and raised timber cycleway.<br />

Gravel sources, estimated volume required 25,000m 3 , will be required to upgrade the old rail<br />

formation, to construct the new cycleway for the western section and for ongoing maintenance. It<br />

will be preferable to utilise sources close to the trail to minimise transport costs. Sources of suitable<br />

material types have been identified nearby.<br />

It will be appropriate to plan a detailed construction methodology, so that the trail can be<br />

constructed, and so that equipment can access the gravel sources and cycleway site economically,<br />

with minimal environmental impact.<br />

The work will be a sequence of:<br />

- Vegetation clearance<br />

- Drainage improvement<br />

- Strengthening weak areas<br />

- Basecourse laying and compaction<br />

- Bridge support structure maintenance<br />

- New bridge decks and safety barriers<br />

- Surface metalling and compaction<br />

- Fences, gates, cattle‐stops<br />

- Toilets, shelters and signage<br />

- Placement of Pou Pou<br />

For the Okaihau – Horeke section, the sequence will probably comprise of:<br />

- Temporary fencing<br />

- Vegetation clearance<br />

- Drainage<br />

- Excavation and filling for shape<br />

- Basecourse and compaction<br />

- New bridges and raised timber cycleway structures<br />

- Surface metalling and compaction<br />

- Fences, gates and cattle stops<br />

- Toilets, shelters and signage<br />

- Placement of Pou Pou<br />

23


MAINTENANCE<br />

There will be ongoing track maintenance after the initial track clearing, formation and development.<br />

It will be necessary to carry out annual weed spraying of the track surface and preventative<br />

measures to ensure the eradication of noxious and nuisance weeds such as gorse and broom. These<br />

types of plants may begin to encroach on the track from adjacent land. The intensity of effort<br />

required will diminish with time and existing infestations come under control.<br />

After storm conditions, there will be a need to make storm repairs to both the track surface and the<br />

clearing of any debris left on the track from broken tree branches or fallen trees. Track wash outs,<br />

scouring or surface damage will require repair or redressing to provide a suitable surface again.<br />

As the formed track begins to ‘bed down’ from cyclist use, there will be areas that need to be<br />

addressed due to soft conditions, drainage issues or settlement. Short lengths of patch metalling of<br />

these areas will be required to reinstate the track to the desired surface.<br />

Fences, gates, cattle‐stops and signage will also require maintenance effort with age, weather, stock,<br />

vehicle and vandalism damage.<br />

It is very difficult to place an accurate costing against this, as it is an unknown quantity, but a<br />

provisional value per kilometre is included for this purpose, based on experience elsewhere.<br />

Based on around 80km of cycle trail (71.8km), we recommend a figure of $120,000 per annum be<br />

set aside for track maintenance. This covers all regular inspections, toilet cleaning, rubbish removal,<br />

weed control, sign maintenance and maintenance of the cycleway surface.<br />

In terms of maintenance of bridges and structures, we recommend a figure of $15,000 (note<br />

different amount to engineer’s report) be set aside for maintenance and inspections of bridges and<br />

structures. The cyclic renewal cost of bridges should be set aside at round $10,000 (note different<br />

amount to engineers report) per annum.<br />

24


11.0 Design and Construction Cost Estimates<br />

OVERALL TRAIL CONSTRUCTION COSTS<br />

Overall the track formation elements of the trail are expected to cost in the region of $13 million<br />

(excluding GST).<br />

A summary of construction costs are shown in the following table. A further breakdown can be<br />

found in the appendices of Technical <strong>Report</strong> 5.<br />

Summary of Construction Costs<br />

Section 1<br />

Horeke –<br />

Okaihau<br />

Section 2<br />

Okaihau –<br />

Kaikohe<br />

Section 3<br />

Kaikohe –<br />

Kawakawa<br />

Section 4<br />

Kawakawa<br />

– Opua Total<br />

Track length (m) 24450 m 14950 m 32400 m 11500 m 83300 m<br />

Track construction $2,205,400 $660,250 $1,704,660 $821,600 $5,391,910<br />

Fencing, etc $323,200 $93,800 $372,050 $789,050<br />

Land $256,500 $90,000 $346,500<br />

Bridges $638,000 $58,000 $603,000 $1,175,000 $2,474,000<br />

Other: Terminus Section 4 $440,000 $440,000<br />

Parking $20,000 $20,000 $40,000 $20,000 $100,000<br />

Toilets $60,000 $20,000 $80,000 $20,000 $180,000<br />

Signage $20,000 $10,000 $20,000 $50,000<br />

Consents/survey/design/<br />

supervision/ project<br />

management (11%) $359,326 $94,826 $310,168 $272,426 $1,036,746<br />

Subtotal $3,882,426 $1,046,876 $3,129,878 $2,749,026 $10,808,206<br />

Contingency 20% $776,485 $209,375 $625,976 $549,805 $2,161,641<br />

Total (excl GST) $4,658,911 $1,256,251 $3,755,854 $3,298,831 $12,969,847<br />

25


12.0 Consultation<br />

<strong>Council</strong> ran a relatively thorough consultation process and is pleased with the outcomes of this initial<br />

work. Consultation will need to be continued in the New Year. Some hui were unable to be staged<br />

prior to Christmas, due to tight timeframes and the need to allow time for people to process the<br />

idea. Consultation will need to be a key focus in stage two.<br />

A Communications Plan was prepared at the commencement of the feasibility study. Key<br />

stakeholders were identified and a communications schedule was developed.<br />

There has been a number of communications with potentially affected and neighbouring<br />

landowners. This included providing an overview of the project, outlining aims and gaining<br />

permission to access land for site visits. Initial discussions have taken place with all potentially<br />

affected landowners where we are looking to gain long term access. Where appropriate a ‘consent<br />

in principle’ has been obtained. This consent confirms that the landowner is open to further<br />

discussion/negotiation to creating a legal easement through their land. See Section 7.0, page 16 for<br />

further detail.<br />

Feedback has also been encouraged from the general public, through public meetings. Both the<br />

public and potentially affected landowners have raised good ideas and valid concerns. The project<br />

team have been able to address many of these issues and feed this back to the community, via<br />

public meetings and individual discussions.<br />

This has had some very positive impacts and some individuals who were at first against the idea are<br />

now quite positive. As an example, land owners were very concerned around an increase in local<br />

crime should the track be opened to the public. It has since been proposed that ‘guardians’ be on<br />

the track 24/7 for the first season while the track ‘beds in’. This is not only a positive way to<br />

discourage mischief but also provides employment opportunities.<br />

Other concerns identified were: stock access, predators (dogs), privacy loss, Tapu areas, Maori land,<br />

rubbish, etc. The majority of these concerns can be mitigated through track design.<br />

Communications have also been held with key agencies, at a local, regional and national level.<br />

Work has included letters, meetings and presentations. Support is strong and these groups are keen<br />

to continue to be involved and assist the project, where appropriate.<br />

A number of meetings have been held with local interest groups/individuals who are really keen to<br />

see the cycleway progress. They are excited at the prospect of developing the route and believe it<br />

will be a real asset to the area, having positive impacts both socially and economically. It is felt that<br />

it will be a catalyst for other opportunities being developed, e.g. further off road cycling routes,<br />

increase in business opportunities and bringing a new type of visitor to the area.<br />

The following table outlines the type of communications achieved. Please see section 19, page 24<br />

for the stage two communication plan.<br />

26


COMMUNICATIONS ACHIEVED<br />

Item<br />

Website<br />

Press Releases<br />

Tangata Whenua<br />

Affected private<br />

landowners<br />

Neighbouring private land<br />

owners<br />

Ontrack lease/license<br />

holders<br />

Bay of Islands Vintage<br />

Railway Trust<br />

Communication with key<br />

agencies<br />

Mayor Wayne Brown<br />

Public meetings<br />

Local stakeholder<br />

discussions/meetings<br />

Statutory consultation<br />

Detail<br />

www.findc.govt.nz, updated regularly<br />

Two sent out to media (newspaper, radio), good coverage received<br />

- Meeting with Te Runanga A Iwi O Ngapuhi management<br />

- Presentation to ‘Ngāpuhi ki Hauauru’ Takiwa (motion to support<br />

concept and work with Te Runanga A Iwi O Ngapuhi)<br />

- Meeting with Mr Ron Wihongi and family<br />

- Meeting with the Maihi Memorial Park Charitable Trust Inc<br />

- Letters sent to potentially affected private land owners<br />

- One group meeting<br />

- Individual discussions to discuss land use and seek consent in<br />

principle<br />

- Approximately 300 letters sent to out in the Kawakawa – Okaihau<br />

area<br />

- Just under 100 letters sent out in the Okaihau – Horeke area<br />

- Introductory letters sent to lease/license holders<br />

- Two meetings held (Moerewa and Okaihau)<br />

- Some individual meetings<br />

- A number of discussions re inclusion in cycleway route<br />

- Very supportive of concept (see Appendix Three for letter of<br />

support)<br />

- Department of Conservation, Bay of Islands office<br />

- Department of Conservation, Area Manager, Otago, DoC (Otago Rail<br />

Trail)<br />

- Destination <strong>North</strong>land<br />

- Enterprise <strong>North</strong>land<br />

- <strong>Far</strong> <strong>North</strong> Holdings Ltd<br />

- Historic Places Trust, regional branch<br />

- New Zealand Police, Area Commander<br />

- <strong>North</strong>land Regional <strong>Council</strong><br />

- Ontrack, central government<br />

- Te Puni Kōkiri<br />

- Work & Income NZ<br />

Letter ‐ introduction to project and encouragement to support, sent<br />

to key stakeholders<br />

- Public information evenings (Okaihau and Moerewa)<br />

- Followed by public workshops (Kawakawa and Kaikohe)<br />

- Bay of Islands Walkways Trust<br />

- Striders Multi Sports Club (Kerikeri)<br />

- Graham Brown (cycling enthusiast)<br />

- <strong>North</strong>land Tourism Development Group<br />

- All business associations along route<br />

The relevant statutory bodies, government departments and<br />

organisations, district plan, and regional plan defined<br />

parties consulted include: <strong>North</strong>land Regional <strong>Council</strong>, <strong>Far</strong> <strong>North</strong><br />

<strong>District</strong> <strong>Council</strong>, NZ Railways Corporation/Ontrack, NZ Historic Places<br />

Trust, DoC, NZTA, Tangata Whenua, <strong>Far</strong> <strong>North</strong> Holdings Ltd, private<br />

landowners (Horeke section) and participants Opua. Please see<br />

Technical <strong>Report</strong> 5 for full details.<br />

27


13.0 Telecommunications<br />

Overall, the proposed route has good cell phone coverage. Telecom and Vodafone reception differs<br />

in some areas, with the advantage if one does not work the other one generally does (such as the<br />

back of Kaikohe). There are a few spots along the cycleway where coverage is poor (Ngapipito Road,<br />

Otiria, the Kaikohe Air‐field, Hillcrest Road and the Utakura Valley). Negotiations will be required<br />

with network providers to improve coverage when the cycleway is built.<br />

The areas that lack good coverage are in rural settings, where current demand for such services is<br />

low. However, a successful cycleway will change this dynamic and should provide a commercial<br />

reason for investments in upgrades to the network. All sector start points are adjacent to Telecom<br />

land lines.<br />

Short term strategy: Install a two way radio system in areas where reception is poor to mitigate<br />

potential concerns to track users.<br />

Medium term strategy: Work with providers to improve network coverage along the cycleway.<br />

28


Business Plan<br />

29


14.0 Project Plan<br />

INTRODUCTION<br />

The following project plan is a key control document for the trail construction aspect of the project.<br />

It provides a picture of how the project is going to work. It enables the project manager to<br />

implement a planned and controlled environment that can be monitored and maintained<br />

throughout the life of the cycleway track development.<br />

Namely the following assumptions are made with the project plan:<br />

The project<br />

- may be implemented as a series of smaller projects and procured as a large number of small<br />

contracts;<br />

- may be implemented over a number of years as funding becomes available;<br />

- for economies of scale, large portions of the project may be implemented as one large<br />

contract.<br />

It has been assumed, due to the diverse nature of work, that procurement will not be as one<br />

contract. For example, the contractor for construction of the railway track will most likely be the<br />

Bay Of Islands Vintage Railway Trust (BOIVRT) as they occupy the corridor and supply free labour.<br />

The BOIVRT has no interest in undertaking bulk earthworks.<br />

It is considered therefore, that the most likely scenario for procurement of work will be a number of<br />

contracts of smaller sensible sized portions that local contractors are able to price on.<br />

Within this structure, bulk supply of materials may be sought separately; for example, the supply of<br />

cattle stops for the whole project, the supply of gates, pre‐fabrication of cycle bridges, toilets and<br />

signage supply.<br />

WORK PACKAGES<br />

Work should be undertaken as follows:<br />

Project Structure: The overall cost of the project has been estimated at around $13 million plus GST.<br />

The following contracts are suggested.<br />

Section 1 ‐ Horeke to Okaihau<br />

Wetland section (Ch1500‐3000): A contract for construction of the cycleway through the mangroves.<br />

Will contain the board walks and contractors should be familiar with the use of geotextiles and<br />

construction on boardwalks.<br />

Carparking: could be included in the above contract.<br />

Toilets: Toilets should for the most part be recognised as public, and part of the cycleway<br />

infrastructure. A contract for toilets that would cover the entire route should be let.<br />

Construction along Horeke Road between Rangiahua Road and Mangataraire Road (Ch 3000‐10300):<br />

Comprises a new cycle track alongside the carriageway for exclusive use of cyclists to provide some<br />

separation from vehicles and dust. Includes roadside work with the wetland section, which may<br />

30


preclude some of the local contractors. Horeke has high unemployment and this portion of work<br />

would be suited to employment of the local workforce and would provide local ownership.<br />

Mangataraire Road to Harrison Road (Ch 10300 – 12900): Work through private property. Would<br />

suit local contractors with medium sized equipment (12 tonne diggers). Contractor needs to be<br />

sensitive to the needs of the farmers.<br />

Harrison Road to Imms Road (Ch 12900 – 17600): Work through private property. Would suit local<br />

contractors with large sized equipment (20 tonne diggers), possibly some blasting. Contractor needs<br />

to be sensitive to the needs of the adjoining landowners. The track construction could possibly be<br />

combined with the above section of work. A separate contract will most likely be let for<br />

construction of the three bridges within this section.<br />

Imms Road to Settlers Road (Ch 17600 – 21500): Work through private property. Would suit local<br />

contractors with medium sized equipment (12 tonne diggers). Includes two bridges. Contractor<br />

needs to be sensitive to the needs of the property owners.<br />

Settlers Road to Okaihau (Ch 21500 – 24450): Comprises a new cycle track alongside the carriageway<br />

for exclusive use of cyclists. We expect that the community would like to be involved with<br />

construction of this section of work, donations of plant and labour, etc.<br />

Signage: A separate contract is expected for supply. Signage is expected to cover the entire length<br />

Horeke to Opua. A separate contract could cover all erection of signage.<br />

Fencing: Could be offered to adjacent landowners or leaseholders where the track passes through<br />

occupied property, otherwise by several packaged sections.<br />

Section 2 ‐ Okaihau to Kaikohe<br />

Railway Corridor (Ch 0 – 14800): Work is almost all contained within the rail corridor and could be<br />

let as one contract. Includes clearing, track formation, surfacing and drainage.<br />

Bridges: Includes one new bridge and one bridge refurbishment as a separate contract.<br />

Fencing: Expect that some of the fencing will be given to adjoining landowners, and some included<br />

in the above contract.<br />

Carparking: could be included in the above contract.<br />

Toilets: Toilets should for the most part be recognised as public, and part of the cycleway<br />

infrastructure. A contract for toilets that would cover the entire route should be let.<br />

Section 3 ‐ Kaikohe to Kawakawa<br />

Railway Corridor (Ch 0 – 32400): Civil work is almost all contained within the rail corridor and could<br />

be let as one contract. Includes clearing, formation, track, and culverts, and minor drainage.<br />

Bridging: There are fifteen bridges that are new or need refurbishment. A separate contractor<br />

would be required for the five new bridges (circa $350,000).<br />

Fencing: Expect that some of the fencing will be given to adjoining landowners, and some included<br />

in the above contract.<br />

31


Carparking: could be included in the above contract or let separately with other amenity work.<br />

Toilets: Toilets should for the most part be recognised as public, and part of the cycle way<br />

infrastructure. A contract for toilets that would cover the entire route should be let.<br />

Landscaping: Will be included in the associate track contracts, carpark, or toilet contracts.<br />

Section 4 ‐ Kawakawa to Opua<br />

Railway Corridor (Ch 4200 – 11800): Involves mostly track and heavy bridge maintenance, much of<br />

which will be undertaken by the railway trust for the cost of materials only.<br />

Separate contracts will be required for:<br />

Bridging contracts – of the six bridges requiring work, four are too big for the BOIVRT to<br />

accommodate ranging between circa $20,000 and a 35 span bridge at $700,000.<br />

Tunnel slip repair work and reclamation work – most likely a separate contractor to undertake this<br />

work as a cut to fill operation. Includes some drainage work and landscaping.<br />

Tunnel headwalls and repairs – may involve rock anchors, and concrete work, specific design and a<br />

separate contractor for this.<br />

State Highway widening and turning bay – a roading contractor for this work.<br />

Walking/Cycle track construction – could possibly be the roading contractor or let as a separate<br />

contract.<br />

PROJECT CONTROL<br />

A copy of the project plan will be provided by the Trail Construction Project Manager to the funders,<br />

assumed at the time of writing to be the <strong>Far</strong> <strong>North</strong> <strong>District</strong> <strong>Council</strong> and the Ministry of Tourism.<br />

The project plan, programme projections and cost forecasts will be updated monthly by each<br />

Contractor and Engineer, and given to the Trail Construction Project Manager to update overall<br />

project forecasts and delivery.<br />

STAKEHOLDERS AND DISSEMINATION OF INFORMATION<br />

Key personnel expected to be named in the quality plan with contact numbers are:<br />

- The Project Manger<br />

- Engineer<br />

- Site Supervisor<br />

- Contractor<br />

- Foreman<br />

The key stakeholders for monthly reporting are:<br />

- <strong>Far</strong> <strong>North</strong> <strong>District</strong> <strong>Council</strong> – Overall progress, financial forecasts.<br />

32


15.0 Project Schedule<br />

A draft schedule of works follows for the trail construction aspect of the project.<br />

33


16.0 Marketing Strategy<br />

INTRODUCTION<br />

The Cycleway will be a fantastic addition to the activities already available in the area. It will be<br />

unique amongst other cycleways in New Zealand, offering an extraordinary visitor experience in an<br />

area steeped in history, culture, natural beauty and warm, friendly people. Special features include:<br />

- A coast to coast journey – from the east coast to the west coast of New Zealand ;<br />

- The development of a Pou Pou trail along the cycleway (a series of carved Maori statues);<br />

- Immense historic significance in the area, i.e. Kupe’s arrival to New Zealand was in the<br />

Hokianga. European first arrival was in the Bay of Islands. The signing of the Treaty of<br />

Waitangi in the Bay of Islands ‐ the second signing in the Hokianga;<br />

- The inclusion of New Zealand’s oldest operating railway;<br />

- A trail that meanders through peaceful rural backdrops to bustling small towns, from wind<br />

swept harbours to lush native forests;<br />

- Opportunities to experience traditional Maori culture, including visiting Marae in the heart of<br />

Ngapuhi country;<br />

- The immense beauty of native flora and fauna, rivers and mountains;<br />

- Complementary activities at the beginning or on conclusion of the ride, such as walks and<br />

boat trips; and<br />

- The willingness of the local people to deliver value through authentic experiences providing<br />

life long memories.<br />

Due to the route design, the cycleway will be marketed from east to west (Opua to Horeke), being<br />

the easiest route to travel. People will have the option of cycling west to east, noting that short<br />

parts of the first 30 odd kilometres will be more difficult.<br />

Branding for the cycleway needs to be developed. This would include naming the trail and ensuring<br />

consistent messaging and product protection. The importance of working alongside other cycleways<br />

in New Zealand is recognised. There is a need to have a collective approach to help promote and<br />

support the New Zealand cycleway experience.<br />

The <strong>Far</strong> <strong>North</strong> coast to coast cycleway will provide a world class cycling experience through:<br />

- stunning and varied natural scenery;<br />

- an area steeped in history and Maori culture;<br />

- welcoming and willing communities;<br />

- an assortment of quality accommodation, from backpackers to luxury<br />

- consistent signage, clear information and interpretation; and<br />

- an experience that will last a life time.<br />

34


MARKET ASSESSMENT<br />

The cycleway will meet the needs of the target group through providing a Grade 1 – 2 experience<br />

and also having appropriate supporting facilities and services. These include:<br />

Attribute<br />

Domestic airport<br />

Road transport<br />

Accommodation<br />

Hospitality<br />

Comment<br />

Serviced commercially by Air New Zealand and Salt Air, up to six arrival<br />

flights per day.<br />

Self drive, plus a range of hire vehicles and coach travel available.<br />

Access follows State Highway One.<br />

The Bay of Islands offers a full range of accommodation. There is motel/<br />

hotel accommodation available in Kaikohe. The south Hokianga also<br />

offers a range of quality accommodation. Accommodation will need to<br />

be developed in the long term in Horeke.<br />

There is a range of food and beverage outlets along the trail, including<br />

some excellent cafes. There is a pub in Horeke that will be able to meet<br />

requirements.<br />

Iconic attractions - Waitangi Treaty Grounds<br />

- Kemp House and the Stone Store<br />

- Tane Mahuta<br />

- Hundertwasser toilets<br />

- Waimate <strong>North</strong> Mission House<br />

- Mangungu Mission Station<br />

Other activities<br />

The <strong>Far</strong> <strong>North</strong> is an iconic destination, offering a vast range of visitor<br />

experiences, particularly water based from boat trips to fishing tours.<br />

Waka tours, history tours, scenic trips and shopping also feature. The<br />

Ngawha natural mineral healing pools will provide a welcome retreat.<br />

Scenery<br />

Stunning natural scenery<br />

History<br />

Birth place of New Zealand as we know it today<br />

The following table outlines the National Cycleway expectations for a Grade 2 trail and how the <strong>Far</strong><br />

<strong>North</strong> cycleway meets or exceeds this expectation.<br />

National Cycleway – Grade 2<br />

Description: Some gentle climbs, smooth trail.<br />

Suitable for beginner riders, the trail is<br />

predictable with no surprises. Social component<br />

with riders able to ride side by side at times,<br />

over large sections of trail.<br />

Gradient: 0 – 4 degrees for 96% of trail on any<br />

one day, maximum 6 degrees, and not more<br />

than 4 degree gradient fro no longer than 200m<br />

at a time. If the track is ridden predominantly in<br />

one direction then the downhill can be steeper.<br />

Width: Between 0.9m and 1.5m for single trail<br />

and minimum 2.2m for double trail sections.<br />

Surface: Compacted/stabilised base course, with<br />

maximum top course aggregate of 30mm.<br />

Local characteristics<br />

Meets requirements and is safe to ride. There is<br />

a 2km piece of track that averages 5.4% (about 3<br />

degrees), however, cyclists will be travelling<br />

downhill.<br />

Track promoted east to west as a portion of the<br />

track west of Okaihau is steeper than 4 degrees<br />

(see above).<br />

Trail intended to be 2.5m wide, unless physical<br />

circumstances prevent this.<br />

50mm completed GAP 20 surface layer<br />

35


Traffic Volume: Where public roads are used, a<br />

maximum of 200 vehicles<br />

Watercourses: Watercourses bridged, except for<br />

fords with less than 100mm of water in normal<br />

flow which can be easily ridden.<br />

Bridge Width: Minimum bridge width 1.2m<br />

(structurally able to carry ATV quad bike for<br />

servicing).<br />

Obstacles: Some rocks/roots/ruts that can either<br />

be avoided, or are less than 50mm high. No<br />

stiles. Cattle stops should be minimum 1.2m<br />

wide.<br />

Length: 4‐5 hours/day (30‐50km)<br />

Barriers/Guard rails: Areas such as bluffs or<br />

bridges where a fall would result in death or<br />

significant harm require hand rails.<br />

Where track runs on or beside existing public<br />

road, traffic numbers are currently less than 150<br />

per day, will increase by 20‐30 per day, with<br />

cycleway access.<br />

No fords, all watercourses bridged<br />

2m internal width<br />

No stiles, stop‐gates will be required for busy<br />

public roads. Track surface gravel.<br />

Length is approximately 40kms a day<br />

1.4m guard rails, no bluffs<br />

MARKET DEMAND<br />

Current market demand for cycling holidays in New Zealand<br />

Currently, three quarters of cycle tourists are domestic and one quarter international. There is<br />

strong growth potential if this new iconic cycle trail is marketed collectively and strongly from the<br />

start.<br />

Domestic cycle tourists:<br />

Numbers: 219,000 YE Dec 2008<br />

Participation in cycling activities by domestic<br />

tourists has increased by 67% in the last 5<br />

years (source Domestic Tourism Survey)<br />

Largest share of all domestic cycle tourists:<br />

from all over NZ, size in proportion to<br />

area/city: Auckland, Canterbury, Otago and<br />

Wellington<br />

International cycle tourists:<br />

Numbers: 51,000 YE March 2009<br />

Participation in cycling activities by<br />

international cycling tourists has decreased<br />

by 23% in the last 5 years. This is likely to be<br />

influenced by New Zealand’s poor road<br />

safety reputation.<br />

(source: International Visitor Survey)<br />

Largest share of all international cycle<br />

tourists: UK (24%), Australia (23%) and USA<br />

(11%).<br />

International tourists with the highest<br />

likelihood to participate in a cycling activity<br />

came from Switzerland (10%), the<br />

Netherlands (9%), Ireland (8%), Germany<br />

(7%) and the UK (5%).<br />

36


TOURISM GROWTH FORECASTS<br />

New Zealand Tourism forecasts<br />

Growth forecasts for the main cycle markets to New Zealand are listed below.<br />

The average annual forecasted growth rate for the main cycling markets up to 2015 is:<br />

Australia: 3.1%<br />

UK: 0.3%<br />

US: 1.3%<br />

Switzerland: 2.9%<br />

Netherlands: 2.9%<br />

Germany: 2.0%<br />

(Source: New Zealand Tourism Forecasts 2009‐2015)<br />

<strong>North</strong>land domestic and international markets<br />

The domestic market currently contributes 73% to <strong>North</strong>land visitor nights. 63% of those domestic<br />

visitors are from Auckland. (Ministry of Tourism, 2008 NZ regional tourism results)<br />

The second biggest market for <strong>North</strong>land (after the domestic/Auckland market) is Australia,<br />

followed by the UK, US and Europe.<br />

Annual spread of <strong>North</strong>land guest nights (Commercial Accommodation Monitor, Stats NZ)<br />

Domestic<br />

International<br />

January 08 242,040 113,450<br />

February 08 95,690 107,010<br />

March 08 99,160 96,250<br />

April 08 77,980 56,310<br />

May 08 55,870 33,890<br />

June 08 42,750 25,560<br />

July 08 47,740 22,760<br />

August 08 41,520 17,730<br />

September 08 50,900 33,120<br />

October 08 69,230 45,600<br />

November 08 55,190 70,030<br />

December 08 118,350 77,850<br />

Total 996,420 699,560<br />

Note: These numbers do not include visitors that stay with friends and family. Including these<br />

numbers, it is estimated that the above figures are double.<br />

37


GROWTH FORECAST FOR FAR NORTH COAST TO COAST CYCLEWAY<br />

Domestic & International Year 1 Year 2 Year 3 Year 4 Year 5<br />

Total multi‐night users 4000 7000 9200 12000 15000<br />

Total day cyclists 4000 7000 9200 12000 15000<br />

Total Users 8000 14000 18400 24000 30000<br />

TARGET AUDIENCE<br />

The domestic market will initially be targeted, with the aim to grow the international market over<br />

the next five years. The Cycleway research and figures from the Otago Rail Trail show the<br />

importance of the Auckland market. Auckland is already <strong>North</strong>land’s largest market (approximately<br />

three hours from the Bay of Islands). The <strong>Far</strong> <strong>North</strong> Cycleway provides an opportunity to grow this<br />

Auckland market.<br />

The <strong>Far</strong> <strong>North</strong> is already renowned for its large range of water based activities, however, it has very<br />

few land based adventures. There are currently no multi‐day land activities in <strong>North</strong>land, like the<br />

walking tracks in the South Island. The development of this cycleway would provide the opportunity<br />

to attract a new and different market sector and would enhance the current experiences available.<br />

The secondary marketing emphasis would be on the Australian market. Australia is <strong>North</strong>land’s<br />

largest international market. Destination <strong>North</strong>land is currently positioning <strong>North</strong>land as a short<br />

break holiday (four ‐ seven days) in this market. There are opportunities to package the cycleway<br />

with current additional product, e.g. an overnight cruise after your ride.<br />

TARGET MARKET SEGMENTS<br />

- Families with children (most growth potential, NZ Cycleway Market Research)<br />

- 40 + age group. Larger and soft core end of the market, who do not want to contend with<br />

the traffic and are more focused on the social aspect. (NZ Cycleway Market Research)<br />

MARKETING QUESTIONNAIRE (LOCAL RESEARCH)<br />

A marketing questionnaire was sent out to local business associations and distributed through their<br />

networks. 20 completed questionnaires were returned. The key findings are:<br />

- 100% thought the cycleway was a good idea, with varying reasons. The key reasons being<br />

an increase in tourism opportunities and positive economic impacts;<br />

- The key or unique selling feature was history and the natural/scenic environment;<br />

- The two key visitor requirements were seen as accommodation and food and beverage. It<br />

was also felt that these were the immediate business opportunities;<br />

- Secondary impacts from cycleway use rated highest in the service and other tourist activities<br />

area;<br />

- Domestic branding ‐ coast to coast followed by history scored highest;<br />

- International branding – history followed by cultural experience;<br />

- 10 year impact – top four were increased tourism, thriving communities, high patronage and<br />

cycleway extended;<br />

- Mixed response to ensuring sustainability – top two comments were individual business<br />

responsibility and rating; and<br />

- Top two training requirements were marketing and hospitality.<br />

38


SWOT ANALYSIS<br />

Strengths<br />

Weaknesses<br />

• Coordinated approach from the start<br />

• Attractive to visitors in the shoulder season<br />

• New destinational product for the <strong>Far</strong> <strong>North</strong><br />

• Marketing support from major tourism operators<br />

and Destination <strong>North</strong>land<br />

• Sustainable product: enhances clean & green<br />

image<br />

• Current accommodation availability<br />

• Attracts repeat visitors<br />

• Bay of Islands as a starting point<br />

• Hokianga as a finishing point<br />

• Able to comfortably link into other activities<br />

• Business development opportunities<br />

• Growing the market to the <strong>Far</strong> <strong>North</strong><br />

• Currently insufficient accommodation<br />

at end of trail<br />

• Operators on the trail have limited<br />

connections with tourism trade<br />

(inbound operators and wholesalers)<br />

• Need to up‐skill potential local<br />

providers<br />

• Some crime risk<br />

Opportunities<br />

Threats<br />

• Attract more visitors in the shoulder and low<br />

seasons<br />

• Strong recognisable brand.<br />

• Create set of marketing tools for tourism trade,<br />

operators, RTO’s etc.<br />

• Develop tools for RTO’s and Tourism New Zealand<br />

to market the Trail and ongoing market research<br />

• Develop a detailed marketing action plan<br />

• Development of events around the trail<br />

• Development of products and packages for<br />

different markets/target groups and distribution<br />

through existing and new databases<br />

• Future investment in more services around the<br />

cycle trail such as bike hire, accommodation, etc.<br />

• The demand for a new exciting product that will<br />

further develop community pride<br />

• Not being able to obtain funding<br />

• Lack of operator support for joint<br />

approach<br />

• Inability to cope with potential fast<br />

growth and demand<br />

• Lack of ongoing coordination/ product<br />

development<br />

• Competing destinations<br />

• Competition from other Cycle Trails all<br />

being introduced to the market at<br />

similar times<br />

• Criminal incident<br />

• Economic recovery not going as<br />

forecast<br />

KEYS TO SUCCESS<br />

• Ability to obtain government funding<br />

• Strong branding from the start<br />

• Support from RTO’s and Tourism New Zealand<br />

• Coordination of and cooperation between operators<br />

• Ongoing marketing support from operators<br />

• Quality service delivery by operator/s<br />

• Coordination of marketing activities (ongoing) – one stop shop<br />

39


MEETING DEMANDS<br />

The whole experience is important (NZ Cycleway Market Research Sep 2009)<br />

“The overall experience is critical to providing a quality cycle tourism product, and this goes beyond<br />

the trail itself to include accommodation, services, facilities and other complementary activities.”<br />

The Maori culture and heritage theme is a strong element of the experiences the <strong>Far</strong> <strong>North</strong> cycleway<br />

offers. With the early arrivals of the whalers, sealers and missionaries, the signing of the Treaty of<br />

Waitangi in the Bay of Islands and the second signing in the Hokianga, there are a lot of stories to be<br />

told along the <strong>Far</strong> <strong>North</strong> Cycleway. The old railway track was built on the ancient pathways and<br />

trails the Maori used to travel from East to West from coast to coast. The same trails were used<br />

later by the missionaries.<br />

Mehemea e hara koe no Rahiri he mea waewae wha<br />

(If you cannot trace your lineage to Rahiri then you must be born of a creature with more than two legs).<br />

The Ngapuhi are a proud tribe. All of the chiefly lines of Ngapuhi trace descent through Rahiri and<br />

his two sons, Uenuku and Kaharau. The Mana of the descendants of Uenuku extends from the Bay<br />

of Islands to the heart of the mid north Kaikohe, whilst the Mana of the descendants of Kaharau<br />

extends from the Kaikohe through to the Hokianga. As a result of these genealogies it is commonly<br />

agreed that Rahiri is now the eponymous ancestor of the Ngapuhi nation. The geothermal area of<br />

Taiamai and Kaikohe is commonly referred to as Te Puu O Te Wheke – the heart of the octopus ‐<br />

likening Ngapuhi to a giant octopus, whose arms extend throughout the land.<br />

A Pou Pou (large carved statue) trail is to be developed along the <strong>Far</strong> <strong>North</strong> cycleway. There is a Pou<br />

Pou already in Opua. It is suggested that there be eight Pou Pou (eight arms of the octopus)<br />

connecting both coasts, with the heart in Kaikohe. The Pou Pou will promote story telling. Ancient<br />

stories of ancient histories, embracing all cultures and weaving together the past, the present and<br />

the future.<br />

The culture, coast to coast and heritage element will be evident in the accommodation, food and<br />

activities available: e.g. waka tours and marae stays, colonial B&B, mobile hangi, Tuna Café in<br />

Moerewa, steam train from Opua to Kawakawa. There is an opportunity to develop or enhance<br />

cultural activities, accommodation and heritage sites along the trail.<br />

One of <strong>North</strong>land’s unique selling points is the Twin Coast Discovery Highway. The <strong>Far</strong> <strong>North</strong><br />

Cycleway will connect the two coasts; there will be a non motorised travel corridor between the Bay<br />

of Islands and the Hokianga. There is a well established tourism industry in the Bay of Islands, and a<br />

smaller but well established tourism industry in the Hokianga. The trail will open up opportunities<br />

for land based activities along the corridor, e.g. transport, bike hireage, guided services, other<br />

adventures, etc.<br />

The Bay of Islands Walkways Trust is developing a free walking track which should be completed<br />

within the next year. The track links Okiato (a ferry ride from Opua) and Russell (a very historic<br />

town). Features:<br />

- Access to coastal, wetland, mature bush and boardwalk mangrove vistas<br />

- Access to rare bird habitats<br />

- Closely passing historic sites and traversing a thermal spring<br />

- Already widely used by locals and school groups<br />

- Adoptive interest by locals in accessing hitherto inaccessible land tracts, and willingly joining<br />

the community‐spirited maintenance sessions<br />

40


- Enthusiastically explored by visitors; some pioneering complete round‐the‐Bay walks<br />

There is also a great walk from Opua to Paihia, which can easily be continued to Waitangi.<br />

OPPORTUNITIES<br />

This cycleway would be a catalyst for other activities to be developed. Including:<br />

- A cycleway (more advanced) from Waitangi, through the forest to Kerikeri and the Stone<br />

Store basin, an area rich in history and home to New Zealand’s oldest building.<br />

- A boat trip (or waka journey) connecting Horeke to Omapere at the mouth of the Hokianga<br />

harbour<br />

- Other cycleways in the <strong>Far</strong> <strong>North</strong>, an idea is one from Cape Reinga down the west coast to<br />

Kohukohu, where it could then link in with the coast to coast cycleway.<br />

PROMOTION ACTIVITIES<br />

Short Term<br />

Branding Exercise<br />

Develop and protect a brand that will identify the <strong>Far</strong> <strong>North</strong> cycleway as a unique riding experience.<br />

(Will look to run a community competition to name the trail).<br />

Web ‐ cycleway website<br />

The most important marketing and selling tool is the <strong>Far</strong> <strong>North</strong> Cycleway website. Development of<br />

the website is expensive and discussion has been undertaken with Mike Barnett with the idea of<br />

developing a joint website. It is felt that there needs to be a national website, with links to the<br />

different cycleways around New Zealand. A live booking engine should be used, and all transport,<br />

activities and accommodation bookings go though the cycle trail website. Operators would pay<br />

commission.<br />

Trade marketing<br />

Develop packages that can be booked both online (cycle trail website), and through trade partners<br />

(travel sellers, e.g. I‐Sites, travel agents and travel wholesalers)<br />

Package variety<br />

From all inclusive packages, such as bike hire, accommodation, food and transport, to just transport<br />

back to your car.<br />

Themed packages, examples:<br />

- Heritage package ‐ staying at a colonial B&B, history booklet/commentary (by guide or<br />

downloadable onto iPod/iphone).<br />

- Indulgence package, e.g. spa/massage treatments included, 5 star accommodation and a top<br />

chef.<br />

- Copthorne Bay of Islands to Copthorne Hokianga.<br />

41


Consumer marketing<br />

- Competitions on website: win an indulgence cycle package, photo competition<br />

- Brochure: downloadable from website. Also New Zealand wide distribution<br />

- Cycle way passport/voucher book<br />

Public relations<br />

- Supply themed editorial and media releases to targeted New Zealand and Australian media<br />

- Pitch story ideas to targeted media (e.g. Wilderness magazine)<br />

- Participate in Tourism NZ’s and Destination <strong>North</strong>land’s international media programme<br />

Destination <strong>North</strong>land<br />

Work closely with Destination <strong>North</strong>land (DNL) and leverage off their domestic and international<br />

marketing activities. Keep DNL up to date with stories, packages, etc, that they can market and<br />

distribute to their trade and media contacts.<br />

Other Industry Partners<br />

Look at opportunities to partner with large tourism operators, e.g. <strong>Full</strong>ers GreatSights, Explore NZ<br />

Rugby World Cup<br />

The timing of the opening of the Cycleway could coincide with the beginning of the 2011 Rugby<br />

World cup. A big national event is planned at Waitangi in September 2011, and the Cycleway could<br />

leverage the opportunity of media and VIP’s in <strong>North</strong>land at the time.<br />

LONG TERM<br />

Review the marketing plan and update as needed. Key items will be to grow the international<br />

market and look at opportunities to encourage the domestic market to return.<br />

With permission, segments of this strategy have been taken from the ‘Round the Mountain’<br />

marketing plan.<br />

42


17.0 Organisation Plan<br />

Following is an overview of the proposed development structure. Once formed the Governance<br />

Group will take responsibility for the track, ongoing maintenance, branding and management of<br />

commercial contracts. Please see section 24, page 56 for an overview of this process.<br />

17.1 ORGANISATIONAL STRUCTURE<br />

FAR NORTH DISTRICT<br />

COUNCIL<br />

PROJECT MANAGER<br />

OVERALL<br />

PROJECT MANAGER<br />

CYCLEWAY CONSTRUCTION<br />

ESTABLISHMENT OF<br />

GOVERNANCE STRUCTURE<br />

CONSULTATION &<br />

COMMUNICATIONS<br />

CONTRACTORS<br />

IMPLEMENTATION<br />

PROJECT MANAGER<br />

CENTRAL<br />

GOVERNMENT<br />

LIAISON<br />

COMMERCIAL<br />

OPERATOR/S<br />

PLANS<br />

IMPLEMENTATION<br />

17.2 KEY ROLES AND RESPONSIBILITIES<br />

Position<br />

Key role<br />

<strong>Far</strong> <strong>North</strong> <strong>District</strong> <strong>Council</strong> - Contract with Ministry of Tourism<br />

Project Manager – overall - Manages main contract implementation<br />

Project Manager – Construction - Manages specifications (statutory & route design)<br />

- Construction contract and implementation<br />

- All planning requirements for implementation<br />

- Maximises employment opportunities<br />

Contractors - Delivers contracting requirements (engineering, surveying,<br />

legal, construction, etc)<br />

Governance Structure - Set up <strong>Council</strong> Organisation Charitable Trust<br />

- Take on track management<br />

- Set strategic direction<br />

- Develop website<br />

- Appoint contractor/s for commercial operation<br />

Implementation Project Manager - Fixed term position<br />

- Implements Governance group requirements<br />

43


18.0 Contracting and Procurement<br />

The <strong>Far</strong> <strong>North</strong> <strong>District</strong> <strong>Council</strong> has a robust contracting and procurement process. Please see<br />

Appendix Three for the current policy ‘2104 – Procuring Goods & Services’. A new procurement<br />

policy has been developed and is currently being consulted on.<br />

Initially contracting and procurement will be the responsibility of the coast to coast project team,<br />

under the leadership of <strong>Council</strong>. This team will follow standard <strong>Council</strong> processes. Once the<br />

Governance Group is operational, these processes may be reviewed.<br />

In brief:<br />

The key process for contracting and procurement is as follows:<br />

1 Planning Identify the needs, plan for these and research the market<br />

2 Go to market Identify potential contractors (particularly local) and clarify options<br />

3 Evaluation Compare options and decide which one best suits requirements<br />

4 Award Appoint selected contracts (subject to appropriate approvals)<br />

5 Performance Make sure contractor/s deliver what they are contracted to do<br />

Quotations are required as follows:<br />

- Up to $5,000 Three quotations, written or verbal (needs to be documented)<br />

- $5,001 ‐ $20,000 Three written quotations and referred to as a Request for Prices<br />

- Over $20,001 Goes to tender<br />

Tendering authorities are:<br />

- Contracts having a total value of not more than $100,000 may, after consideration of the<br />

Tender Evaluation <strong>Report</strong>, be awarded by three <strong>Council</strong> personnel, one of whom must be<br />

the General Manager.<br />

- Contracts having a total value of between $100,000 and $1,000,000 may, after<br />

consideration of the Tender Evaluation <strong>Report</strong>, be awarded by the Operations Committee<br />

(including Chief Executive).<br />

- Contracts having a total value of more than $1,000,000 may, after consideration of the<br />

Tender Evaluation <strong>Report</strong>, be awarded by the <strong>District</strong> <strong>Council</strong>.<br />

Contracts would be awarded following due process and would be drawn up by appropriate<br />

personnel within the <strong>Council</strong> staffing structure, including a review by the legal team where required.<br />

Contracts would only be awarded on confirmation of sufficient funds.<br />

44


19.0 Consultation and Stakeholder Management<br />

PURPOSE<br />

COMMUNICATION PLAN<br />

To plan and manage communications around the second stage (design and implementation) of the<br />

development of the <strong>Far</strong> <strong>North</strong> cycleway.<br />

SCOPE<br />

This plan covers the internal and external communications required to keep key stakeholders<br />

informed and involved in the process.<br />

STRATEGIC LINKAGES<br />

Ministry of Tourism<br />

KEY STAKEHOLDERS/AUDIENCES<br />

- Affected communities (Hokianga through mid north to Opua)<br />

- Bay of Islands Railway Trust<br />

- Department of Conservation<br />

- Destination <strong>North</strong>land<br />

- Enterprise <strong>North</strong>land<br />

- Eastern and Western Community Boards<br />

- <strong>Far</strong> <strong>North</strong> <strong>District</strong> <strong>Council</strong><br />

- Iwi (in particular – Ngapuhi and Ngati Hine)<br />

- Affected land owners (directly affected and neighbours)<br />

- <strong>North</strong>land Regional <strong>Council</strong><br />

- NZ Historic Places Trust<br />

- Ontrack<br />

- Other central government agencies<br />

- Te Puni Kokiri<br />

- Work & Income<br />

BACKGROUND<br />

The <strong>Far</strong> <strong>North</strong> cycleway was identified as one of seven ‘Early Start’ projects and is part of the<br />

broader national cycleway concept. The cycleway concept came from the National Employment<br />

Summit and was identified as a “near term and high priority” project. The concept is being<br />

championed by the Prime Minister, John Key.<br />

In December 2009, the <strong>Far</strong> <strong>North</strong> <strong>District</strong> <strong>Council</strong> completed a feasibility study to look at the viability<br />

of developing a cycleway from Opua to Horeke. The feasibility study stated:<br />

- The development of a cycleway was viable;<br />

- The community at large were supportive of the idea;<br />

- A completed track could bring approximately $30m over five years; and<br />

- <strong>Full</strong> funding would be required to complete the track.<br />

45


KEY DATES<br />

- Confirmation of central government funding for stage two (tbc)<br />

- Commencement of stage two – design and implementation (tbc)<br />

- Confirmation of consents (tbc)<br />

- Governance group set up (tbc)<br />

- Commencement of track development (tbc)<br />

- Commercial operator appointed<br />

- Completion of track and open for business (tbc)<br />

COMMUNICATION OBJECTIVES<br />

The objectives of the communications plan are to:<br />

- Inform the general public of stage two, its aims and progress<br />

- Inform key stakeholders of the process and how they can have input<br />

- Involve adjacent landowners and other directly affected parties in the process<br />

- Inform Elected members of the process, how to get involved and where they should have<br />

input<br />

OPPORTUNITIES<br />

RISKS<br />

This is an opportunity to:<br />

- Promote the economic, cultural and social benefits<br />

- Promote <strong>Council</strong> as a champion of recreational activity for locals and visitors alike<br />

- Promote <strong>Council</strong> as a champion of economic enterprise<br />

- Bring communities closer together<br />

- Provide a forum for dialogue and better understanding between <strong>Council</strong> and affected<br />

communities<br />

- Land ownership issues (including Treaty of Waitangi claims)<br />

- Wrong messages circulating generated from ‘hear say’ and fear<br />

- Raising community expectations about impact without understanding the inputs/ change of<br />

thinking required to benefit<br />

- Discovery of cultural/historic items<br />

- Timing restrictions<br />

- Resistance from adjoining land owners<br />

STRATEGIC APPROACH AND POSITIONING<br />

- The aim is to firstly provide employment opportunities, initially through design and<br />

construction and ongoing through maintenance and tourism opportunities. Secondly to<br />

develop a high quality tourism asset, that will deliver a world‐class visitor experience for<br />

both domestic and international users, while increase economic benefits to the area<br />

- Initial communications will be by way of media releases, public meetings and the website<br />

- As stage two evolves, there will be a need to continue consultation. This will include<br />

meetings with key stakeholders, further public meetings, hui and individual meetings with<br />

affected parties where appropriate. A separate consultation plan will be prepared<br />

- Communications will encompass continued media releases and use of the website<br />

- Statements will focus on outcomes, the process, addressing concerns and how people can<br />

be involved<br />

46


KEY MESSAGES<br />

- Funding has been approved in principle to develop the track<br />

- Championed by Prime Minister John Key and the Ministry of Tourism<br />

- FNDC supports the project and is leading the work<br />

- Benefits are potentially significant;<br />

- Increase in short to long term employment opportunities<br />

- Increase in training opportunities, with a focus on young people<br />

- Positive social and economic impacts (including encouraging community connectedness)<br />

- Growth in business opportunities<br />

- Added value for tourism<br />

- Attract a new type of tourist to the area<br />

- Development of a Pou Pou trail<br />

- Protection of heritage<br />

- Acknowledgement of funding sources and recognition that funding would not be released<br />

until all consent requirements are met<br />

- Focus is on track design, consenting, land ownership, governance group and commercial<br />

operation<br />

- Work opportunities will focus on local suppliers<br />

- Encourage open and honest communications<br />

- Governance group will be local and ‘own’ track (not land)<br />

- <strong>Council</strong> will communicate with affected communities to work through track design<br />

- The project reinforces key council aspirations and values, namely that “The <strong>Far</strong> <strong>North</strong> is a<br />

great place to live and <strong>Council</strong> wants to help its people prosper” and “We welcome<br />

development that doesn’t harm the environment” and “We welcome opportunities for<br />

investment in our <strong>District</strong>”.<br />

RESPONSIBILITIES<br />

Communications would be managed by the Project Manager of the stage two development, with<br />

support from the <strong>Far</strong> <strong>North</strong> <strong>District</strong> <strong>Council</strong>’s Communications Manager.<br />

ACTIVITIES<br />

Activity Timing Target Audience<br />

Media releases Regular updates (bi‐monthly) General public<br />

Website Already operational, ongoing General public<br />

Hui Ongoing Local Maori<br />

Public meetings<br />

Four presentations over the<br />

development period<br />

Interested parties<br />

Individual landowner<br />

meetings/mail outs<br />

POSSIBLE PRODUCTS/BUDGET<br />

Ongoing in design stage, updating once<br />

consented<br />

What<br />

Costs<br />

Media releases<br />

Nil<br />

Web promotion (council website)<br />

Nil<br />

Direct mail outs to affected parties<br />

Nil<br />

Radio advertising of public meetings<br />

Nil (community notice‐boards)<br />

Newspaper advertising for public meetings tbc<br />

Consultation (public meetings, hui, etc) $20,000<br />

Affected landowners<br />

47


20.0 Quality Assurance Plan<br />

A quality assurance plan will need to be developed and will be required from the successful<br />

contractors, consultants and project managers by <strong>Council</strong> and the Ministry of Tourism.<br />

Many of the contractors undertaking the work “joe farmer contractor” are not expected to be<br />

familiar with a high level of documentation, and quality assurance measures may have to be<br />

undertaken by the engineer.<br />

The quality Control Plan is expected to be a live document updated as the project progresses and<br />

issues arise.<br />

Please see Appendix Four for a sample quality plan and control plan, provided courtesy of United<br />

Civil Construction.<br />

48


21.0 Funding Sources<br />

It is recognised that the full route, from coast to coast, needs to be developed to a Trail Grade 1 ‐2<br />

standard (NZ Cycleway Market Research Sep 2009) to achieve the potential economic benefits.<br />

<strong>Full</strong> funding of $13,219,847m is sought from central government to achieve this.<br />

In summary, this amount is made up of:<br />

Overall project management $60,000<br />

Design and construction of Kawakawa to Horeke $9,671,016<br />

Vintage Railway upgrade $3,298,831<br />

Pou Pou construction $150,000<br />

Community Consultation $20,000<br />

Other consultants $20,000<br />

TOTAL $13,219,847<br />

The <strong>Far</strong> <strong>North</strong>, overall, is one of the more economically challenged districts in New Zealand. Many<br />

communities have decile ratings. There is higher than average unemployment and limited full time<br />

job opportunities. However, it is a resilient district and what it lacks in financial wealth it makes up<br />

for in spirit. The <strong>Council</strong> is currently experiencing severe budget restraints and is not in a position to<br />

invest in track development.<br />

The <strong>Far</strong> <strong>North</strong> has limited funding avenues. There is one large community trust, the ASB Community<br />

Trust, which covers <strong>North</strong>land (including Auckland). The process for applying for substantial funding<br />

(anything over $50k) through this Trust would see the submission of an Expression of Interest by 1<br />

February 2010. Should this be accepted, there is then a one year process to follow before funding is<br />

confirmed or denied. One of the requirements would be that ‘our’ portion of funding is already<br />

committed.<br />

There is also a number of national based organisations that may be able to offer financial assistance,<br />

however, this is in smaller amounts and may be more suitable to assist with the overheads/future<br />

development of the cycleway rather than the initial development.<br />

Assistance from <strong>Council</strong> in the operating costs is a consideration but would need to go through due<br />

process (such as formal agreement from <strong>Council</strong>).<br />

Work and Income New Zealand have three current schemes that the project would look to utilise,<br />

firstly during the construction and secondly, providing security. The three schemes are:<br />

- Jobs Ops (track construction)<br />

- Community Max (track construction)<br />

- Taskforce Green (on track security once opened)<br />

49


22.0 Risk Management<br />

A Risk Management Strategy has not been developed at this feasibility stage. It will be a contractual<br />

requirement of the Cycleway Construction Project Manager’s position.<br />

Ownership for mitigating and monitoring risk will ultimately be that of the overall Project Manager,<br />

working alongside the Cycleway Construction Project Manager. Communication mechanisms are<br />

identified in the Communications Plan (see page 44)<br />

Key risks, assumptions and constraints which may have an impact on the time for implementation<br />

and the costs have been identified and are summarised below. Generally, the risks associated with<br />

each component of this project are covered in the specific engineering reports.<br />

• Time taken to secure the necessary land access and easement agreements (including surveying<br />

and legal processes) may affect the overall timeline.<br />

• Resource consent application process timing and potential requests for further information may<br />

impact on project timing.<br />

• Costs are only estimated at this stage, based on generic track and structure types identified<br />

from limited time in the field.<br />

• Cyclic renewal and annual maintenance costs are expected to start after the year of<br />

construction i.e. are not included in the $13 million construction costs. These are allowed for in<br />

the Governance Group’s costings.<br />

• It is assumed that the “numbers of users” information as discussed with Mike Barnett is<br />

reasonable; particularly in relation to toilet usage.<br />

• The detailed requirements of FNDC roading managers with regard to the road crossings and<br />

cycleway alignment adjacent to public roads will evolve further. Generally, they will be averse<br />

to the cycle trail on a widened shoulder, preferring an exclusive and separated path. This may<br />

add some expense as it will require the shifting of drainage channels.<br />

• One or more landowners may still be expecting some deviations around their properties rather<br />

than direct use of the old rail embankment (such as Ngapipito area) or drainage embankments<br />

for various reasons. These options will need to be investigated individually.<br />

• The consultation process, particularly in the broader forum, may raise some issues which have<br />

time or cost impacts.<br />

• There are Waitangi Treaty claims over parts of the proposed route, particularly the railway<br />

corridor. Hearings commence in March 2010. As land ownership would not change hands<br />

when the cycleway is built, any negotiations would continue with current landowners, i.e.<br />

central government in this case.<br />

50


23.0 Benefits Realisations<br />

INTRODUCTION<br />

The benefit realisations of constructing and operating a cycleway here in the <strong>Far</strong> <strong>North</strong> are very<br />

exciting. Particularly so in that the proposed route travels through a number of small rural<br />

communities that have social and economic challenges. Higher than average unemployment,<br />

limited work opportunities and disempowerment have impacted on many of these communities and<br />

some now struggle to enjoy a reasonable standard of living.<br />

The district has a population of less than 58,000 and this is spread out over a number of mainly rural<br />

communities (communities range from 1,000 – 6,000 people). There is no one central business<br />

district, with the east coast growing faster than the more stable, smaller populations in the west<br />

coast.<br />

The <strong>Far</strong> <strong>North</strong> is a great place to live, work and invest. <strong>Council</strong> actively promotes the area as a place<br />

to enjoy the best of both worlds; for you, your family and your business (www.farnorthnz.com).<br />

Parts of the district are already renowned as a ‘must do’ tourist destination, particularly the Bay of<br />

Islands, where the scenery, history and general holiday feel have attracted millions of visitors over<br />

the decades. A key feature of the area is the Waitangi Treaty Grounds, where the signing of the<br />

Treaty of Waitangi took place in 1840. Note: there is a possibility that the official opening of the<br />

2011 Rugby World Cup will be held at the Grounds.<br />

The opening of the cycleway will attract a new type of visitor to the <strong>Far</strong> <strong>North</strong> and bring them into<br />

communities that currently do not enjoy the many benefits of a prosperous tourism environment.<br />

The <strong>Far</strong> <strong>North</strong> does not currently have any land based overnight activities, so the cycleway would be<br />

a welcome addition to tourist activities and would complement the options already available.<br />

The cycleway will be promoted as an east to west journey, meaning people will travel from an area<br />

that already has good tourism infrastructure (the Bay of Islands) to a part of the district with very<br />

limited tourist infrastructure, Horeke. There are some excellent products in the south Hokianga<br />

(Opononi/Omapere) and there will be commercial opportunity to develop accommodation in<br />

Horeke and further grow facilities and services in the whole Hokianga area.<br />

The social benefits are also impressive. Currently riding bikes on the <strong>Far</strong> <strong>North</strong> roading system is<br />

quite simply dangerous. Roads are generally narrow, many unsealed and there are a large number<br />

of trucks. The cycleway will link towns and as an example, students will be able to ride to school<br />

without the fear of being run over. There are limited social activities available in the area and this<br />

would provide an opportunity for free family outings. Getting on your bike rather than in a car is<br />

good for the environment as well as your health.<br />

It is planned to involve communities in the development of the cycleway, which will promote<br />

community pride. Already the cycleway concept has brought communities together to discuss and<br />

debate the many opportunities. This encourages connectedness, something the <strong>Far</strong> <strong>North</strong> needs to<br />

promote more of.<br />

In summary, this cycleway must be developed. It is seen as a one in 50 year opportunity where full<br />

government investment will provide a number of significant benefits to communities that often miss<br />

out, due to their isolation, size and simply being placed in the ‘too hard’ basket.<br />

Please find following detail on some of the key business opportunities, costs and benefits.<br />

51


ESTIMATED PATRONAGE ON TRACK BY YEAR 5<br />

3000<br />

2500<br />

2000<br />

1500<br />

1000<br />

500<br />

0<br />

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun<br />

Multi‐night users<br />

EMPLOYMENT OPPORTUNITIES<br />

Employment opportunities as a direct result of this project are initially around design and<br />

construction and then long term through tourism activities.<br />

It is understood (source Mike Barnett & Associates) that:<br />

The employment ratio during track construction equals one full‐time employee per $250,000 of<br />

track constructions, i.e., $13 million of track equals 52 full time employees over a six month period.<br />

It is envisioned that there will be a requirement of a further 20 – 30 positions needed for clearing,<br />

planting and general labouring. It is foreseen that this labour will be sourced from Work and Income<br />

New Zealand. Over six months the minimum potential investment is:<br />

25 employees at $12.50 per hour, 45 hours per week for six months $365,625<br />

Together, this would see an additional 77 positions created as a direct result of construction.<br />

Long term benefits through accommodation and hospitality along the cycleway route amounts to<br />

one full‐time employee required per $100,000 of gross turnover. Gross turnover over five years for<br />

accommodation and hospitality is estimated to be just under $10m, so 98 full time positions.<br />

Additionally, employment of 24/7 security for the first seven months of operation would see 30 to<br />

40 people employed full time over this period (210 days, three shifts a day, 10 people per shift).<br />

Carving of the Pou Pou will also provide a source for local labour, with a budget of $150,000 being<br />

allowed for the construction of eight Pou Pou by local Hapu.<br />

Training requirements<br />

It was quickly identified that there would be a need to upskill some current and many potential<br />

commercial operators along the route. Consultation confirmed this need. Excluding the Bay of<br />

Islands and south Hokianga areas, there are limited tourism operators. It is very important that<br />

support is provided to these communities (the ones that need the economic benefits) so that they<br />

are in a position to prosper individually and as a whole.<br />

Currently there is fully funded training/coaching available for small to medium sized businesses<br />

through the Enterprise Training Scheme. This programme is currently being reviewed and is unlikely<br />

to exist next year. The replacement programme is likely to see a coupon (or subsidy) system<br />

introduced post July 2010. It is intended that a proposal be developed to present to the consortium<br />

that would manage this new scheme looking at tailoring training specifically for this project.<br />

52


ACCOMMODATION REQUIREMENTS<br />

Initially accommodation requirements are met in the Bay of Islands and Kaikohe area (the likely<br />

overnight stay area).<br />

By year five, based on projected visitor numbers there will be a requirement for additional beds over<br />

the peak periods in the western ward.<br />

Projected Bed Nights by Year Five (based on 15,000 multi‐night users)<br />

2000<br />

1500<br />

1000<br />

500<br />

1st night<br />

2nd night<br />

0<br />

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun<br />

The Bay of Islands has current capacity to meet these requirements. However, Kaikohe will need to<br />

upgrade current accommodation and build additional beds. Approximately 30 will be needed in<br />

Kaikohe. Horeke will need to build accommodation. In the interim, cyclists have the choice or either<br />

returning to their car or staying somewhere near by. By year five it is estimated that the township<br />

will require 30 ‐ 40 beds, allowing for those that may travel on to the south Hokianga, where current<br />

accommodation levels will meet demands.<br />

IMPACTS ON CURRENT BUSINESS<br />

As the cycleway journeys through a number of economically challenged communities, economic<br />

impacts through increased visitor numbers has great potential. Current eating establishments along<br />

the track should be able to meet demands, with cafes in Opua, Kawakawa, Moerewa, Kaikohe and<br />

Okaihau. The Horeke Tavern, overlooking at the Hokianga Harbour at the conclusion of the ride, will<br />

be a wonderful place to sit and enjoy the satisfaction of completing the cycleway.<br />

As the track develops, it is expected that establishments will evolve to meet the demands of the<br />

users and in doing so, invest in their infrastructure and staffing.<br />

PRIVATE ENTERPRISE/FAR NORTH COMMUNITY DEVELOPMENT INVESTMENT ESTIMATE<br />

ITEM<br />

AMOUNT<br />

Cycleway construction $13,000,000<br />

Development of hospitality facilities (over 5 years) $1,500,000<br />

Construction of accommodation (over 5 years) $3,750,000<br />

Cyclist spend (over five years) $24,639,880<br />

Trail maintenance (over five years) $634,375<br />

Total direct spend (exclusive of GST) $43,524,255<br />

53


NEW BUSINESS OPPORTUNITIES<br />

Greater Hokianga<br />

Horeke<br />

Okaihau & environs<br />

Kaikohe & environs<br />

Moerewa<br />

Kawakawa<br />

Opua<br />

Greater Bay of<br />

Islands¹(Russell,<br />

Paihia, Waitangi)<br />

Estimated additional<br />

direct full time<br />

equivalent employees<br />

of businesses at year 5<br />

Accommodation Attractors/Activities Food & beverage Support services & amenity Transport<br />

• increased shoulder • grow kayaking operation • increased patronage • new bike hireage/services new water taxi<br />

occupancy<br />

• guided tours<br />

• new guiding<br />

increased ferry patronage<br />

Tours/services/interpretation<br />

• new establishments<br />

• new/enhanced<br />

establishments<br />

• increased occupancy<br />

• new/enhanced<br />

establishments<br />

• increased occupancy<br />

• new cultural experience product<br />

• new horse trekking<br />

• new/enhanced cultural<br />

experience product<br />

• Enhanced health & recreation<br />

facilities<br />

• develop/enhanced heritage sites<br />

• new/enhanced cultural<br />

experience product<br />

• new/enhanced heritage sites<br />

• enhanced health & recreation<br />

facilities<br />

• new/enhanced<br />

establishments<br />

• new/enhanced<br />

establishments<br />

• increased patronage<br />

• new/enhanced<br />

establishments<br />

increased patronage<br />

• new bike hireage/services<br />

• new vehicle storage & security<br />

• new guiding<br />

tours/services/interpretation<br />

• new guiding<br />

tours/services/interpretation<br />

• new bike hireage/services<br />

• new guiding<br />

tours/services/interpretation<br />

• new cycleway maintenance<br />

services<br />

• • new cultural experience product • increased patronage • new guiding<br />

tours/services/interpretation<br />

• new/enhanced • new cultural experience product • new/enhanced • new bike hireage/services<br />

establishments • grow horse trekking<br />

establishments • new vehicle storage & security<br />

• increased occupancy • develop/enhanced heritage sites • increased patronage • new guiding<br />

• new waka experience<br />

tours/services/interpretation<br />

• new/enhanced<br />

establishments<br />

• increased occupancy<br />

• increased shoulder<br />

occupancy<br />

• new cultural experience product<br />

• develop/enhanced heritage sites<br />

• new/enhanced<br />

establishments<br />

• increased patronage<br />

• new vehicle storage & security<br />

Transfers back to Opua<br />

grow/enhanced steam<br />

railway experience<br />

grow/enhanced steam<br />

railway experience<br />

increased ferry patronage<br />

• increased patronage • increased bike hireage/services new transit to/from<br />

Opua/Kawakawa<br />

Accommodation Attractors/Activities Food & beverage Support services & amenity Transport<br />

10 20 25 20 10


23.1 COSTS AND BENEFITS SUMMARY<br />

POTENTIAL PRIMARY BENEFITS TO COMMUNITY<br />

The following table provides a projected spend as a direct result of cycleway usage.<br />

Price Year 1 Year 2 Year 3 Year 4 Year 5<br />

Cycle numbers riding the total length 2011/12 2012/13 2013/14 2014/15 2015/16<br />

Cycle hire customers 35% 1330 2310 3045 3955 4987<br />

FIT own bike customers 2470 4290 5655 7345 9262<br />

International customers (as a % of total riders) 2% 3% 4% 7% 10%<br />

Total Guided 200 400 500 700 1000<br />

Total Multi-night Users 4000 7000 9200 12000 15000<br />

Total Day Cyclists 4000 7000 9200 12000 15000<br />

Total Users 8000 14000 18400 24000 30000<br />

`<br />

Guided Tours 200 400 500 700 1000<br />

(3 day 2 night guided tour price) 1,100 $220,000 $440,000 $550,000 $770,000 $1,100,000<br />

Day Cyclist 4000 7000 9200 12000 15000<br />

Average spend per day 40 $160,000 $280,000 $368,000 $480,000 $600,000<br />

Vintage Train<br />

75% of multi-night users, excludes guided 20 $57,000 $99,000 $130,500 $169,500 $210,000<br />

Meals<br />

2 days multi day cyclist, excludes guided 150 $570,000 $990,000 $1,305,000 $1,695,000 $2,100,000<br />

Bike Hire<br />

Bike hire 40% x 2 days @ $45 per day 90 $136,800 $237,600 $313,200 $406,800 $512,964<br />

Bus transport<br />

1 bag 40% of cyclist $15 per day, 2 days 30 $45,600 $79,200 $104,400 $135,600 $168,000<br />

Multi day cyclists using bus transport 70% 2660 4620 6090 7910 9,974<br />

Bus Horeke to Kawakawa/ Opua 60% 35 $55,860 $97,020 $127,890 $166,110 $209,454<br />

Bus Hokianga Harbour to Kawakawa/ Opua<br />

40% 45 $47,880 $83,160 $109,620 $142,380 $179,532<br />

Accommodation<br />

2 day (allowing 1 night stay) 80% 50 $152,000 $264,000 $348,000 $452,000 $560,000<br />

Extra bed night before/after ride (75% of 80%) 50 $114,000 $198,000 $261,000 $339,000 $420,000<br />

Hokianga Harbour cruise<br />

Boat - Horeke to Hokianga 40% 45 $68,400 $118,800 $156,600 $203,400 $252,000<br />

Travel to and from Cycle Trail<br />

Vehicle travel average kilometres 500 x .70 350<br />

3 PAX per car 80% @ 116 $373,333 $653,333 $858,667 $1,120,000 $1,400,000<br />

Air Travel average 20% @ 438 $350,400 $613,200 $805,920 $1,051,200 $1,314,000<br />

TOTAL DIRECT ECONOMIC BENEFIT $2,351,273 $4,153,313 $5,438,797 $7,130,990 $9,025,950<br />

ACCUMULATIVE CASHFLOW INCL GST $2,410,813 $6,564,126 $12,002,923 $19,133,913 $28,159,863


FORECAST DEVELOPMENT COSTS<br />

To fully construct the track, while further developing the business plan and meeting consultation<br />

requirements, the estimated costs are (including contingencies):<br />

Overall project management $60,000<br />

Design and construction of Kawakawa to Horeke $9,671,016<br />

Vintage Railway upgrade $3,298,831<br />

Pou Pou construction $150,000<br />

Community Consultation $20,000<br />

Other consultants $20,000<br />

TOTAL $13,219,847<br />

GST exclusive<br />

FORECAST GOVERNANCE GROUP ‐ INCOME AND COSTS<br />

The Governance Group should be making a profit by year 4 and paid off its deficit by year 5.<br />

Governance<br />

Year 1 Year 2 Year 3 Year 4 Year 5<br />

Directors Fees - Chair only 12,000 12,000 12,000 12,000 12,000<br />

Expenses & Travel $100 per<br />

month/Director (Excl <strong>Council</strong> staff) 4,800 4,800 4,800 4,800 4,800<br />

Website development, maintenance etc 50,000 1,000 1,000 1,000 1,000<br />

Initial and ongoing branding costs 30,000 1,000 1,000 1,000 1,000<br />

Accounting 5,000 3,000 3,500 4,000 4,500<br />

Audit 2,500 2,500 2,500 2,500 2,500<br />

Insurance (Public Liability) 500 500 500 500 500<br />

Legal 10,000 1,000 1,000 1,000 1,000<br />

Total Governance Costs 114,800 25,800 26,300 26,800 27,300<br />

Operational<br />

Implementation Manager 35,000<br />

Security wages + 8% hols 2% ACC, 7<br />

months 46,585<br />

Uniforms 1,320<br />

Toilet Cleaning 6 @ $2k pa, meet half<br />

costs (commercial balance) 6,000 6,000 6,000 6,000 6,000<br />

Track maintenance 40,000 120,000 120,000 120,000 120,000<br />

Bridge and structure maintenance 25,000 25,000 25,000 25,000<br />

Depreciation 10,000 10,000 10,000 10,000 10,000<br />

Total Operational costs 138,905 161,000 161,000 161,000 161,000<br />

Local input (such as <strong>Council</strong>) 100,000 50,000 50,000 50,000 50,000<br />

Events- net 0 3,000 6,000 7,500 9,000<br />

Funded Sources eg Pub Charity 30,000 30,000 30,000 30,000 30,000<br />

WINZ Subsidy 42,350<br />

Income 5% Commission 39,891 71,857 93,387 123,768 161,306<br />

Total Income + funding support 212,241 154,857 179,387 211,268 250,306<br />

Deficit 41,464 31,943 7,913 -23,468 -62,006<br />

Accumulative Deficit 41,464 73,407 81,320 57,852 -4,154<br />

56


FORECAST COMMISSION MODEL<br />

It is proposed that a central website be developed for bookings of activities on the cycleway. This<br />

website would be managed by the Governance Group and operated by a commercial contractor/s.<br />

Any bookings taken over the website would be subject to a 5% commission. This commission would<br />

be directed to the Governance Group and used for maintenance on the track.<br />

The following table outlines where potential commission could be sourced.<br />

Year 1 Year 2 Year 3 Year 4 Year 5<br />

Cycle numbers riding the total length 2011/12 2012/13 2013/14 2014/15 2015/16<br />

Cycle hire customers 35% 1330 2310 3045 3955 4987<br />

FIT own bike customers 2470 4290 5655 7345 9262<br />

International customers (as a % of total riders) 2% 3% 4% 7% 10%<br />

Total Guided 200 400 500 700 1000<br />

Total Multi-night Users 4000 7000 9200 12000 15000<br />

Total Day Cyclists 4000 7000 9200 12000 15000<br />

Total Users 8000 14000 18400 24000 30000<br />

Guided Tours 200 400 500 700 1000<br />

(3 day 2 night guided tour price) 1100 $220,000 $440,000 $550,000 $770,000 $1,100,000<br />

Commission 5% 11000 22000 27500 38500 55000<br />

Vintage Train Ride 20 $57,000 $99,000 $130,500 $169,500 $210,000<br />

75% of multi-night users 5% $2,850 $4,950 $6,525 $8,475 $10,500<br />

Bike Hire<br />

Bike hire 40% x 2 days @ 90 $136,800 $237,600 $313,200 $406,800 $512,964<br />

Commission 5% 6840 11880 15660 20340 25648.2<br />

Bus transport<br />

1 bag 40% of cyclist $15 per day, 2 days 30 $45,600 $79,200 $104,400 $135,600 $170,988<br />

Multi day cyclists using bus transport 70% 30 2660 4620 6090 7910 9974<br />

Bus Horeke to Kawakawa/ Opua 35 $55,860 $97,020 $127,890 $166,110 $209,460<br />

Bus Hokianga Harbour to Kawakawa/ Opua 45 $47,880 $83,160 $109,620 $142,380 $179,537<br />

Commission 5% 7467 12969 17096 22205 27999<br />

Accommodation<br />

2 day (allowing 1 night stay) 80% 50 $152,000 $264,000 $348,000 $452,000 $569,960<br />

Extra bed night before/after ride (75% of 80%) 50 $114,000 $198,000 $261,000 $339,000 $420,000<br />

Hokianga Harbour cruise<br />

Boat Horeke to Hokianga 40% 45 $68,400 $118,800 $156,600 $203,400 $256,482<br />

Commission 5% 16720 29040 38280 49720 62322.1<br />

Total commissionable income $897,540 $1,616,780 $2,101,210 $2,784,790 $3,629,392<br />

Commission 5% 44,877 80,839 105,061 139,240 181,470<br />

Exclusive of GST 39,891 71,857 93,387 123,768 161,306<br />

Accumulative commission excluding GST 39,891 111,748 205,135 328,903 490,209<br />

57


24.0 Governance Structure and Partnerships<br />

It is proposed that the <strong>Council</strong> set up a ‘<strong>Council</strong> Owned’ Charitable Trust (CO). The likely scenario<br />

would see the Trust set up with a direct line to the <strong>Council</strong> or alternatively there is a possibility of<br />

the Trust being set up with a direct line to <strong>Council</strong>’s own Commercial subsidiary namely <strong>Far</strong> <strong>North</strong><br />

Holdings Limited. This subsidiary has an asset base of approx $40m and its present activities,<br />

including property, airports, marine etc, means that it already has significant relationships with<br />

tourism operators.<br />

Research and discussions have taken place and it is felt that this model will best serve the<br />

requirements of the operation, in that it has <strong>Council</strong> input but also allows for community to be<br />

actively involved and to have ownership. <strong>Council</strong> will own the exclusive rights to the access of the<br />

cycleway route and own the associated infrastructure e.g. bridges, pathway etc as well as the web<br />

site. The Trust structure would then run under a clear business model with the Directors being<br />

strategic thinkers who have a proven background in either business or community development.<br />

The appointment of a ‘commercial’ chair from the tourism industry is also seen as key to success.<br />

A process is to be developed, showing how positions will be appointed and how the Governance<br />

Group is to operate.<br />

KEY RESPONSIBILITIES<br />

<strong>Council</strong><br />

- Hold legal access/easement of public/private land, registered on the freehold title where<br />

possible but not to hold any land itself (to be negotiated with Ontrack in due course)<br />

- Exclusive rights to access the land and ownership of the track, its structures and the<br />

business<br />

- Own the website<br />

- Form Charitable Trust (non‐rateable/non‐taxable)<br />

Trust Governance Group<br />

- The Trust to be responsible for strategic direction and upkeep<br />

- Manage any assets necessary for the running of the cycleway<br />

- Employ a fixed term project person to implement strategy<br />

- Let contract for commercial operation and ongoing maintenance.<br />

Commercial Operator<br />

- Commercial operator to be contracted to the Governance Group to run business and employ<br />

staff for such ventures as bike hire, guides, transfers, etc<br />

- The Trust to define ambit of contract to be used<br />

- Operate website<br />

- Undertake day‐to‐day operation, hire staff to carry out such tasks as marketing,<br />

maintenance, repair & upkeep, e.g. of track, toilets and recreation areas<br />

- Commercial operator to report directly to the Trust<br />

- Commercial operator to pay a commission proportion to the Trust (5%) or employ someone<br />

for this purpose<br />

58


5% commission<br />

KEY PARTNERS FOR THE GOVERNANCE GROUP<br />

- Bay of Islands Railway Trust<br />

- Affected landowners<br />

- Tangata Whenua<br />

- Ontrack<br />

- <strong>Far</strong> <strong>North</strong> <strong>District</strong> <strong>Council</strong><br />

- New Zealand Transport Agency<br />

- Department of Conservation<br />

- Ministry of Social Development<br />

59


25.0 Significant Issues to be Resolved Prior to Construction<br />

ISSUE<br />

Landowner<br />

agreements<br />

Consent schedule<br />

Waitangi Treaty Claims<br />

Funding<br />

MITIGATION<br />

- Work alongside affected landowners<br />

- Agree on mutually beneficial outcomes<br />

- Open negations and fair compensation<br />

- Not seen as a major concern<br />

- Ensure good planning and open processes<br />

- Good communication and concerns resolved before<br />

applications<br />

- Thoroughly prepared consent applications<br />

- Clearly state that land does not change ownership<br />

- Open discussions, through hui<br />

- Promote opportunities of cycleway for locals<br />

- Work alongside central government to achieve full funding<br />

- <strong>Council</strong> to have final say as to future development (if part<br />

funds available)<br />

60


26.0 Community Support<br />

There is wide community support to develop this cycleway. It is a project that has captured the<br />

imagination of local people (from all backgrounds) and there is great enthusiasm to see the track<br />

built. Both the Western and Eastern Community Boards have been championing this idea, initially as<br />

a walkway until the government initiative was announced. All business associations along the<br />

cycleway have been spoken with and are proactive in their support for this initiative.<br />

A number of organisations are already looking at ways in which they can look to provide support in<br />

making the project a success. Two examples are:<br />

- The Kaikohe (Rau Marama) Community Trust have received a grant to set up a ‘cycleway<br />

shop front /base camp’ for the next twelve months. This will be a venue which will provide<br />

information and also a place to discuss ideas.<br />

- The Kaikohe and <strong>District</strong> Historical and Mechanical Trust (Kaikohe Pioneer Village) are<br />

currently reviewing their operation and have made the following plans:<br />

1. By opening the grounds ‘free of charge’ to visitors to the complex, it allows the cycleway patrons<br />

to utilise the restroom and cafe facilities, whether they wish to visit the museum or recreational<br />

facilities on site or not;<br />

2. By offering secure cycle storage on site, the complex will enable the cycleway patrons to partake<br />

of other organised activities in the Kaikohe environs.<br />

3. Kaikohe Heritage plans to develop an interactive display on the history of the railway and we<br />

suggest that this is done in conjunction with the Cycleway team as a ‘ride‐through’ exhibit.<br />

4. The complex will be an ideal ‘meeting point’ for 3rd party operators providing accommodation or<br />

transport services to cycleway patrons<br />

Following is a list of organisations that have formally supported this project. A selected number of<br />

letters are attached as appendices.<br />

Organisation Type Attached<br />

‘Ngāpuhi ki Hauauru’ Takiwa<br />

Motion to support<br />

Bay of Islands Vintage Railway Trust Written Appendix 2<br />

Bay of Islands Walkways Trust Written Appendix 5<br />

Department of Conservation<br />

Verbal<br />

Destination <strong>North</strong>land Written Appendix 5<br />

Eastern Community Board<br />

Motion to support<br />

<strong>Far</strong> <strong>North</strong> Holdings Ltd Written Appendix 5<br />

Historic Places Trust<br />

Written<br />

Hokianga Tourism Association Written Appendix 5<br />

Intercity Group (NZ) Ltd<br />

Written<br />

Kaikohe Business Association<br />

Written<br />

Kaikohe (Rau Marama) Community Trust Written<br />

Kawakawa Business Association<br />

Verbal<br />

Maihi Memorial Park Charitable Trust Inc Written<br />

Ngapuhi Asset Holding Company Ltd<br />

Written<br />

<strong>North</strong>land Regional <strong>Council</strong><br />

Verbal<br />

<strong>North</strong>land Tourism Development Group<br />

Verbal<br />

<strong>North</strong>ern Media Group<br />

Written<br />

Okaihau Community Association Written Appendix 5<br />

Ontrack Written Appendix 5<br />

Paihia Business Association<br />

Written<br />

Striders Multi Sports Club<br />

Verbal<br />

Western Community Board<br />

Motion to support<br />

Work & Income New Zealand<br />

Verbal (Regional Commissioner)<br />

61


APPENDICES<br />

62


APPENDIX ONE<br />

Acknowledgements<br />

<strong>Council</strong> wishes to acknowledge and thank the following individuals and organisations for<br />

their efforts in preparing this document.<br />

- Ministry of Tourism - <strong>Far</strong> <strong>North</strong> <strong>District</strong> <strong>Council</strong> & staff<br />

- Angus Davidson - Anthony Toia – artist<br />

- Western (Kaikohe/Hokianga)<br />

Community Board<br />

- Eastern (Bay of<br />

Islands/Whangaroa) Community<br />

Board<br />

- Adrienne Tari – community report<br />

writer<br />

- Eating the Elephant – Project<br />

Management<br />

- Historic Places Trust - Department of Conservation<br />

- Haigh Workman – Consulting<br />

Engineers<br />

- Thomson Survey – Planning and<br />

Survey<br />

- Enterprise <strong>North</strong>land - Destination <strong>North</strong>land<br />

- Mike Barnett & Associates - Bay of Islands Vintage Rail Trust<br />

- Hone Mihaka – cultural advisor - Jenny Atkins – Photographer<br />

- The mid north community - Creative Edge – Graphic Design<br />

- Affected landowners - Tracy Dalton<br />

- Local business operators - John Schollum<br />

63


APPENDIX TWO<br />

P. O. Box 142, Kawakawa www.bayofislandsvintagerailway.org.nz<br />

Bay Of Islands Vintage Railway and the Coast to Coast Cycleway<br />

To Whom It May Concern:<br />

The following is provided as a Letter of Support to the proposal to include the Bay Of Islands Vintage<br />

Railway section between Kawakawa and Opua as a key and unique component of the Coast To Coast<br />

Cycleway.<br />

Rationale for the proposal:<br />

• The proposal to enable cyclists to ride the vintage train and to have their cycles carried over<br />

this very historic section on a specially‐designated railway car would provide a totally unique<br />

and very attractive alternative to any other cycleway in the national system.<br />

• The economic benefits to the area through the coast to coast completion would be very<br />

considerable<br />

• Utilising the railway corridor between Kawakawa and Opua is the most cost‐effective way by<br />

which the Cycleway can traverse the area to the east coast beyond Kawakawa. However ‐<br />

‣ the railway corridor between Kawakawa and Opua cannot be used by cyclists as it<br />

used by a functioning railway, and such use would thus contravene the Railway<br />

Corridor Act.<br />

‣ it is not possible to provide a cycle path beside the railway lines as the 13km stretch<br />

includes 14 bridges and an 80m‐long tunnel.<br />

• There is potential to extend the cycling experience beyond Opua to the Russell peninsula or<br />

to Paihia – all with great historic and scenic attractions to visitors, thus expanding the<br />

promotional opportunities and economic advantages.<br />

Economic and Social Advantages of the Proposal:<br />

• Extending the Cycleway through to Opua not only completes the Coast to Coast vision, it<br />

also enables a further 1 – 2 day stay in the area with its flow‐on economic advantages for<br />

service industries.<br />

64


• The full completion of this Cycleway will provide something unique and affordable for<br />

families, enhance the heritage understanding of New Zealanders, provide a special<br />

environmental journey, add variety to the national Cycleway development, increase tourist<br />

numbers, increase employment opportunities, and foster pride and social good‐health in a<br />

generally economically‐deprived area.<br />

• The Trust is working with local iwi, DOC, Historic Places Trust, Kawakawa Business<br />

Association, and <strong>Far</strong> <strong>North</strong> <strong>District</strong> <strong>Council</strong> to ensure the development is fully acceptable to<br />

all current and potential stakeholders, and that the maximum economic, social and<br />

environmental opportunities are realised.<br />

• The Trust will assist towards development costs, be self‐sufficient, and provide full<br />

sustainability.<br />

Historic Significance of the Bay Of Islands Vintage Railway<br />

• The history of the Railway dates back to the discovery of coal in Kawakawa in 1864.<br />

• A wooden tramway with a 4’8 ½’ gauge was built at Derrick Landing, Taumarere, using<br />

horses to enable coal to be transported to the Kawakawa River for loading into barges to<br />

Opua.<br />

• The tramway was replaced by the present line in 1867, and was the first railway to be<br />

opened in the <strong>North</strong> Island.<br />

• To extend the line beyond Derrick Landing, the Kawakawa River bridge was built in 1881 and<br />

is the oldest curved wooden bridge in the <strong>North</strong> Island, and possibly one of the oldest such<br />

bridges still functioning in the world.<br />

• The extension of the railway to Opua was completed in 1884, and this led to the<br />

development of Opua as a major outlet for coal, and also frozen meat, milk products and<br />

flax, and to the consequent increased development of the Bay Of Islands.<br />

• The present Railway Station dates back to a re‐building programme in 1911, after the first<br />

station was destroyed by fire, and is registered by the Rail Heritage Trust as having<br />

significant historic importance and heritage value.<br />

• The iconic steam engine “Gabriel” is the only engine remaining in the world of the 5 that<br />

were built by Peckett and Son in Bristol in 1927, and is of genuine vintage value.<br />

Other Key Features of the Vintage Railway<br />

• The Railway is under the control of the Bay Of Islands Vintage Railway Trust, a fully<br />

registered Charitable Trust which is authorised to carry on a rail service as per Transport<br />

Licensing Act 1948 and with effect from 1 July 2003, being the commencement date of<br />

License No. 0214131.<br />

• Vision Statement for the Trust: To restore and operate a vintage steam railway experience<br />

between Kawakawa and Opua.<br />

• Since July 2003 and due to huge community support, absolute determination by the Trust, a<br />

large number of volunteers, programmes with Ministry of Social Development, Work and<br />

Income New Zealand and <strong>North</strong>Tec, and substantial donors the Trust has had colossal<br />

achievements including:<br />

‣ restoration of the Kawakawa Railway Station and its use as a café and museum<br />

‣ extension and repair of the old Engine Shed to enable all engines to be housed, and<br />

the restoration of 2 diesel locomotives, 3 work jiggers, 3 carriages, and the pride of<br />

the railway – “Gabriel”<br />

‣ construction of a very large new Maintenance Shed that houses the 6 carriages in<br />

need of restoration together with a fully equipped Workshop, classroom, office,<br />

kitchen and Board Room.<br />

65


‣ partnership with <strong>North</strong>Tec for trade training programmes for relevant job training<br />

and future employment opportunities, together with currently 3 Community Max<br />

teams for track and carriage restoration work. 2 carriages currently under<br />

restoration.<br />

‣ complete re‐configuration of the railway yards at Kawakawa to include fully<br />

realigned tracks, water tower, turntable, coal bunkering facilities, jigger shed, and<br />

landscaping<br />

‣ restoration of 5 km of track, including 8 bridges and culverts, between Kawakawa<br />

and Taumarere, and regular running of trains over this section<br />

‣ near completion of the of the small but significant station at Taumarere together<br />

with new tracks, BBQ and picnic facilities, landscaping, new platform etc to provide<br />

a delightful destination for picnics and corporate events<br />

‣ planning in association with <strong>Far</strong> <strong>North</strong> <strong>District</strong> <strong>Council</strong> and local iwi to develop a<br />

dedicated terminus at Opua which will provide ample bus and car parking, toilets,<br />

ticketing, space for cycle storage/repair, access to a new wharf, etc.<br />

• Another unique feature is that the railway runs down the centre of the main street of<br />

Kawakawa, which is also a State Highway, and that Kawakawa also boasts the famed<br />

Hundertwasser Toilets.<br />

In Summary:<br />

• The proposal provides a unique element to the Coast To Coast Cycleway.<br />

• The historic significance of the Railway adds a major and very attractive dimension both for<br />

New Zealanders and overseas tourists.<br />

• The Trust has already demonstrated a huge and successful commitment to the economic<br />

and social development of the region. The proposed Cycleway involvement will clearly<br />

enhance that development while providing unique enjoyment to participants.<br />

• By demonstrating genuine partnership with local and central government, iwi, DOC, HPT and<br />

the community the Trust is providing a significant model for local economic development.<br />

• The proposal provides the most cost‐effective means of completing the Coast To Coast<br />

Cycleway.<br />

Frank Leadley, QSM, MA<br />

Bay Of Islands Vintage Railway Trust<br />

66


APPENDIX THREE<br />

FAR NORTH DISTRICT COUNCIL<br />

POLICY # 2104 – PROCURING GOODS & SERVICES<br />

Date issued: 23 November 1998<br />

Amended: 22 March 2001<br />

Amended: 13 June 2002<br />

Amended: 28 August 2008<br />

1 BACKGROUND<br />

Due to the diversity of items likely to be contracted for and supplied to both the <strong>District</strong><br />

Office and <strong>Council</strong>'s agencies, it is essential that firm and clear policies, guidelines and<br />

controls are formulated and maintained for the procurement of goods and services.<br />

The objectives in reviewing policy and procedure are to create:<br />

• A system that has a minimum of bureaucracy;<br />

• A system that facilitates rather than stifles delegated authority to staff;<br />

• A system that gives control to senior management allowing them to consider large<br />

expenditure items, before they happen<br />

• A system that encourages purchases to be made from <strong>Far</strong> <strong>North</strong> providers while<br />

at the same time achieving the goals outlined below.<br />

2 GOAL(S)<br />

<strong>Council</strong>'s goals in co-ordinating and managing the procuring of goods and services are to:<br />

• maximise citizen and ratepayer benefit from public funds committed;<br />

• protect the organisation in a businesslike manner;<br />

• conform with statutory provisions; and<br />

• Support the <strong>Far</strong> <strong>North</strong> economy by encouraging purchases from <strong>Far</strong> <strong>North</strong><br />

businesses<br />

3 POLICY STATEMENT(S)<br />

• To ensure that funds for the facilitation and delivery of services are used<br />

effectively through the buying of necessary goods and services.<br />

• To ensure that funds are not used to subsidise any particular private enterprise<br />

or other supplier.<br />

• To ensure that all potential suppliers have reasonable access to <strong>Council</strong><br />

purchasing through a public advertising policy.<br />

• To encourage competitive pricing.<br />

• Transfund New Zealand funded work shall be procured in accordance with<br />

Transfund New Zealand Competitive Pricing Procedure requirements and<br />

<strong>Council</strong>'s procurement policies and procedures.<br />

• To recognise service and warranty benefits and provisions of local support, and<br />

"buy local" where prices are competitive.<br />

• To ensure that <strong>Council</strong> supplies are obtained under the most favourable<br />

conditions by co-ordinating the sourcing and purchase of supplies.<br />

67


APPENDIX FOUR<br />

68


Bay of Islands Walkways Trust<br />

Wairoro Park , PO Box 53<br />

Russell, 0242<br />

Email: wairoro.park@clear.net.nz .Phone 09 403 7255<br />

Overview:<br />

The Bay of Islands Walkways Trust (BOIWT) was established in March 2005 and is<br />

registered with IRD and the Charities Commission. The Trust’s mission is to implement<br />

the construction of off-road walking tracks. The primary objective is the construction<br />

of an off-road walking track from Okiato to Russell, a distance of 6km.<br />

To date, some 4 km has been constructed, and funding has been secured for the<br />

balance of the off-road track. Completion of off-road tack construction is expected<br />

within one year.<br />

Funding sources are several, with substantial grants from ASB Community Trust and<br />

Lotteries Grants Board. Activities are enthusiastically supported by local bodies,<br />

tourism and hospitality businesses, and a growing list of ”friends” and volunteers.<br />

Track information and route maps are provided in detail at www.boiwalkways.co.nz<br />

Current Benefits:<br />

An alternative traffic-free route to Russell.<br />

Access to coastal, wetland, mature bush and boardwalked mangrove vistas.<br />

Access to rare bird habitats.<br />

Closely passing historic sites and traversing a thermal spring.<br />

Already widely used by locals and school groups.<br />

Adoptive interest by locals in accessing hitherto in-accessible land tracts, and willingly<br />

joining the community-spirited maintenance sessions.<br />

Enthusiastically explored by visitors; some pioneering complete round-the-Bay walks.<br />

78


Potential Benefits:<br />

Integration into the Government-supported coast-to-coast link between Horeke and<br />

Russell.<br />

Providing the link along terrain which is deemed non-viable for a cycle track, and<br />

utilizing a near-completion successful walkway link<br />

Activity tourism expansion from coast-to-coast, linking into the inner Bay of Islands<br />

facilities, resulting in many additional visitor nights for the Russell area.<br />

Enhancing the attraction of the Cycleway project and benefits.<br />

Roger Dane<br />

Chairman, BOIWT, 23 Nov.09.<br />

79


21 December 2009<br />

To Hon John Key, Prime Minister, Minister of Tourism<br />

This letter is to show support to the ‘Coast to Coast Cycleway’. The <strong>Far</strong> <strong>North</strong> Coast to<br />

Coast Cycleway will be unique amongst other cycleways in New Zealand, offering an<br />

extraordinary visitor experience in an area seeped in history, natural beauty and warm,<br />

friendly people.<br />

The Coast to Coast Cycleway will link the east coast (Bay of Islands) to the west coast<br />

(Hokianga). Both areas are historically significant: Maori first arrival to New Zealand was<br />

in the Hokianga. European first arrival was in the Bay of Islands. The signing of the<br />

Treaty of Waitangi was in the Bay of Islands, the second signing in the Hokianga. The<br />

<strong>Far</strong> <strong>North</strong> Cycleway will connect the two coasts; there will be a non motorised travel<br />

corridor between the Bay of Islands and the Hokianga. There is a well established<br />

tourism industry in the Bay of Islands, and a smaller but well established tourism industry<br />

in the Hokianga. The trail will open up economic opportunities along the corridor, e.g.<br />

accommodation, food, transport, bike hireage, guided services, etc.<br />

Destination <strong>North</strong>land is very keen to give marketing support to the Coast to Coast<br />

Cycleway, as we see the cycleway as a very exiting new product, which will provide an<br />

opportunity to grow the Auckland market. The <strong>Far</strong> <strong>North</strong> is already renowned for its large<br />

range of water based activities; however, it has very few land based activities. There are<br />

currently no multi day land activities in <strong>North</strong>land, like the walking tracks in the South<br />

Island. The development of this cycleway would provide the opportunity to attract a new<br />

and different market sector and would enhance the current experiences available.<br />

The secondary marketing emphasis would be on the Australian market. Australia is<br />

<strong>North</strong>land’s largest international market. Destination <strong>North</strong>land is currently positioning<br />

<strong>North</strong>land as a short break holiday (four - seven days) in this market. There are<br />

opportunities to package the cycleway with current additional product, e.g. an overnight<br />

cruise after your ride.<br />

The Coast to Coast Cycleway will also attract more visitors in the shoulder and low<br />

seasons (this is the case with e.g. the Otago Central Rail Trail)<br />

Please feel free to contact me if you have questions or if you need any other information.<br />

Kind regards<br />

Nineke Metz<br />

International Marketing Destination <strong>North</strong>land<br />

PO Box 365, Paihia 0247<br />

Phone 09 402 7683, mobile 027 242 5913<br />

Email Nineke@northlandnz.com<br />

www.northlandnz.com<br />

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