June/July Newsletter

CHAFFERS MARINA

NOTE FROM THE CHAIRPERSON

Hello Chaffers Mariners,

I trust the colder turn in the weather has not put too much of a damper on your boating enjoyment. With Chairman Guy away on travels to some truly adventurous and exotic places, I would like to take the opportunity to welcome you to the first edition of our revised newsletter. Thanks to a lot of hard work by our communications team (Robyn and Saiful particularly) we have produced the first in what we expect to be a monthly communication to stakeholders that will provide an update on both what is happening day to day in our marina and the longer-term activities that the board and company management are working on. This is a direct response to the excellent feedback received at the last Annual General Meeting (AGM) where shareholders requested that we provide more regular and more targeted communications, particularly around the progress with the Long-Term Asset Management Plan (LTAMP). As a board we were delighted to get such a lot of support and the desire from our stakeholders to know more about what is happening and when is a very heartening level of engagement. We have a range of different stakeholders and interested parties with different preferences as to how they would like us to communicate with them. Our recent survey, the results of which are summarized in this month’s newsletter, show the work we have done to identify how we can do this best, and we are committed to continuing with refining and updating our activities here.

While we need to balance requirements for commercial sensitivity around some aspects, we are keen to provide as much information as possible as to what is happening with both the Long-Term Asset Management Plan (LTAMP) and the general operations of the marina. As always, we are happy to take constructive feedback on how we do this so please feel free to provide further feedback to us as we bed down our new comms process and thanks again to those who have donated their skills and time to make this happen.

The May Board meeting was focused mostly on the funding options for the Long-Term Asset Management Plan (LTAMP) and an overview of the options under consideration is contained in this month’s newsletter. The board spent a considerable amount of time discussing the pros and cons of the various options and we continue to work together as a united board to bring options and a recommendation to shareholders at a Special General Meeting (SGM) later in the year. A number of discussions and considerations are still underway, and these will need to be concluded before the Special General Meeting (SGM) can be scheduled.

The board also discussed and agreed the fee increases for next financial year. These will be communicated to all shareholders and tenants later in the month and are broadly in line with Consumer Price Index (CPI) increases and the increases signalled at the last Special General Meeting (SGM). We are mindful that the increased cost of living is affecting everyone, and we have adopted a balanced approach that takes this into account, while ensuring that we continue to operate the marina both safely and effectively.

Best regards

Paddy Hanna

Deputy Chairperson Chaffers Marina Ltd

PROJECT UPDATE WAVESCREEN REPLACEMENT

Led by Undersea Construction Limited, this project phase focuses on the replacement of structures between D and E Pier, covering eight bays. The works updates include:-

Demolition and Removal

The process of demolishing and removing all components of the upper wavescreen and the cantilevered deck has been a joint effort between the primary contractor and the maintenance team from Chaffers Marina Limited. By June, the entire cantilevered deck had been successfully dismantled and all remnants cleared from the site.

During the demolition phase, it was necessary to move the existing power box located in the work area to a temporary location. This task was executed by Euro Electrical Limited, with logistical support provided by Chaffers Marina Limited.

As for the upper wavescreen, along with its connected infrastructure, the complete removal and appropriate disposal of it from the three northern bays have been carried out successfully. Following the installation of the new wavescreen in these bays, the contractor is set to continue with the work on the remaining sections.

Refurbishment of underpinning piles

Three foundational piles, situated at the north end of the walkway, were in need of refurbishment. The attached steel splints were taken off and the piles were thoroughly cleaned. Significant amounts of timber and steel were cut away and removed from the base of these piles to prepare them for the sleeving process.

Above: Demolition and Removal Works

Below: Underpinning pile works

To facilitate the sleeving works for the piles, the temporary walkway between D and E Pier was temporarily disconnected. Following this, pile splice and cap plates were crafted and put in place, all set to be linked with the cantilevered beam walkway.

Upper wavescreen replacement works

The project encompasses the introduction of new steel works, including H-Piles, splice plates, and walers. All these elements have been crafted offsite and have undergone a thorough galvanization process- offering resistance to corrosion and prolonging its lifespan.

To replace the existing timber wavescreen, the marina has opted for vinyl sheet piles. These are recognized for their resilience, resulting in less maintenance that will offer substantial cost savings over time. Vinyl is also environmentally friendly, enhancing our commitment to sustainability.

Cantilevered walkway works

The work on the cantilevered walkway includes the installation of several steel parts, including cantilevered beams, joists, diaphragms, and flat bars. It also involves the application of fibre reinforced plastic (FRP) deck grating.

The new walkway will be raised 500mm higher than the existing one. This height increase has been strategically designed to proactively tackle potential problems brought about by sea level rise. By accounting for this environmental concern, the project aims to ensure the longevity and future usability of the walkway.

Above: Installation of splice and base plate on existing pile Below: Installation of new wavescreen

STATUS UPDATE PIER REPLACEMENT

Adjustment to the Financing Model

Chaffers Marina Limited has commissioned an independent review by a commercial tax specialist concerning the previous IRD ruling on the GST component of the Capital Contribution. A part of this engagement also involved seeking advice on a financing model Chaffers Marina Limited can adopt moving forward, aiming to ensure mutual benefits for both the company and shareholders when seeking additional funding. The suggested model is a series of interest-free loans from shareholders, complemented by an increase in periodic license fees, to cover the cost of GST over the economic life of the new assets.

The objective of this approach is to enable Chaffers Marina Limited to recover the GST over the asset’s lifetime from the input tax that was initially claimed on the overall Long-Term Asset Management Plan (LTAMP) cost. Furthermore, this approach aims to ensure there’s no increase in the company’s income tax liability. Shareholders would also benefit by not having to pay GST up front as they otherwise would. The GST is effectively deferred and deducted over time from the licence fee (but inflation will diminish the impact of the GST cost over time, so it will feel less onerous than paying and finding the cash for it upfront).

To provide the company full confidence moving forward in this direction, the Board has requested a full binding ruling with IRD. The application has been lodged recently in August and expected to take ten weeks. The team are also currently finalising the model towards this recommendation and the previous levied model.

Preliminary Planning

Apart from the financial aspects of the project, our team is diligently navigating other important facets of this complex undertaking. We are working in collaboration with Poralu Marine, ensuring that we are perfectly aligned in terms of project execution, timelines, and deliverables.

Furthermore, the team is also engaged in regular consultation with our legal representatives, who provide invaluable expertise, advice, and guidance to help us navigate the legal and contractual intricacies tied to this infrastructure project.

We are also taking forward-looking steps to identify and address a broad spectrum of potential issues tied to the project. This includes managing a variety of risks associated with project implementation, such as unexpected delays, resource escalations, changes in regulatory standards, and health and safety issues. By preemptively recognizing these possible hurdles, we can formulate detailed contingency strategies.

Moving Forward

While the team have made significant progress, there are still a number of tasks to complete before we can provide a detailed update. We are diligently working on these and look forward to sharing more information with you in the near future. In the meantime, we encourage you to share any questions, concerns, or suggestions you may have. Your input is highly valued and will help guide us as we continue to move forward.

PONTOON MODULAR CONCEPT PIER REPLACEMENT

A. Tile system decking

B. Proprietary cleats

C. Service ducts

D. Polyethylene Floats

E. Lateral Fenders

F. Aluminium Walers

G. Aluminium structural frames

Modular System

Poralu Marine is a specialist in the design and development of modular floating pontoon systems. The company harnesses materials specifically engineered to withstand the demanding conditions of harsh marine environments. These materials offer a blend of durability and resilience to ensure the longevity and performance of the pontoon systems.

Flexibility ensures that the pontoons can be arranged in various configurations to suit different

needs. Adaptability means they can evolve and adjust to changing circumstances or requirements over time. Lastly, the systems are designed to be easily installed, significantly reducing setup time and complexity.

It’s essential to bear in mind that the illustrations provided in this section serve as conceptual representations of a modular pontoon system and are not to be interpreted as exact renditions of the final product.

D. Floats

The floats are composed of Polyethylene, a material known for its high resistance to impacts and severe weather conditions. This resistance extends to cracking, water ingress, and marine growth. Inside, the floats are filled with non-flammable Expanded Polystyrene (EPS).

A unique feature of these floats is the inclusion of a channel on top, designed specifically to facilitate the reticulation of all necessary services below the deck, enhancing functionality and adaptability.

A. Tile System Decking

The tile system employs a specialized method involving polypropylene disks and stainless screws, allowing for effortless assembly and dismantling processes.

In terms of the decking, it’s built to resist common chemical and hydrocarbon substances often found in marinas. The deck is made from polypropylene and is reinforced with a UV-protective screen to enhance its durability and guard against sun damage.

B / E / F / G

B. Proprietary Cleats

The aluminium casted cleats are secured with stainless steel inserts and screws on the tracks found along the aluminium whalers. These cleats unique fastening system allows for quick and simple installation, but also offers the flexibility to adjust to different requirements.

E. Lateral Fenders + F. Aluminium Walers

The aluminium walers play a crucial role in the pontoon modular system as they function as the key connecting elements for all the components within the system. These walers are specifically designed in a tubular shape, and this unique design includes tracks.

These tracks are designed to accommodate different types of equipment. They can hold items like cleats, fenders and stands for both fire hose reels and life rings. Furthermore, these tracks enable the attachment of fingers and floats at any point along the structure.

G. Aluminium Strcutural Frames

The aluminium structural frames include stiffeners and diagonals made of tubular sections, welded to the aluminium walers.

The use of aluminium is advantageous due to its lightweight yet robust nature, and its impressive resistance to rust. In addition, aluminium has a lower melting point compared to many other metals, which makes it relatively easy to recycle, promoting sustainability.

MARINA MATTERS

Biosecurity Surveillance

During mid-July, the National Institute of Water and Atmospheric Research Limited (NIWA) will conduct the National Marine High Risk Site Surveillance (NMHRSS) program in Wellington Harbour, including Chaffers Marina. This program provide focused surveillance every six months for potentially invasive marine animals and plants that the Ministry for Primary Industries (MPI) considers a significant threat to New Zealand. If you would to learn more on the various targetted species, click here

NIWA will be collecting samples by setting baited box traps for crabs and starfish, sampling the seafloor using a small (0.5-m wide mouth) benthic sled and diving to inspect wharf piles, walls and rocky shores.

Last year’s report indicated none of the targeted species were found in Chaffers Marina. They did

detect the non-native species Clavelina lepadiformis. Report suggests the species looks to be reestablishing itself after the mortalities seen during the summer survey in December 2021 following heavy rainfall. The species were seen to be rapidly colonising the pile coverings in Chaffers Marina that were installed.

In New Zealand, marinas take measures to prevent the spread of invasive marine species across the country. They follow a rule called the “6 or 1 rule,” which means visiting boats must show proof of either being antifouled within the last six months or cleaned within the last month. These measures are more stringent than the regulations imposed by most councils. The goal is to avoid introducing new species into the marinas, as controlling them there would be costly.

Clavelina lepadiformis in Chaffers Marina

Boatlift

The boatlift has successfully undergone its annual recertification process, validating its suitability and confirming its capability for operation for an additional year. This comprehensive evaluation and approval ensure that the boatlift meets all the necessary standards, regulations, and safety requirements.

Boatlift Schedule

Please note that the schedule is subject to change. To secure a reservation, we advise reaching out to the office directly. Additionally, it is highly recommended to book in advance for the summer period to prevent any potential disruptions to your plans.

EOFY

The financial year for Chaffers Marina Holdings Limited and Chaffers Marina Limited comes to a close at the end of June. An appointed auditor will visit as part of a scheduled interim event to conduct a stock count and assess the internal control systems. The Chaffers Marina team has been dilligently preparing all the required documentation and information as requested by the auditors in advance.

Health and Safety

The Board of Directors took proactive measures to assess the health and safety standards within the marina by conducting a comprehensive walkabout, inspecting every area of the premises. The assessment includes identifiying any potential hazards, or signs of wear and tear that could compromise the well-being of marina users, visitors and staff. After completing the assessment, the findings were promptly reported, and necessary actions were taken to rectify the identified issues.

The board members also engaged in an open dialogue with marina staff, focusing on topics such as safety protocols, emergency procedures, and actively seeking valuable insights to drive ongoing improvements.

We kindly remind all individuals to promptly report any newly identified hazards or near-miss incidents to our office. Your input and feedback are of utmost importance in helping us address potential risks and continuously enhance safety measures. Collectively, we can ensure the highest level of safety for everyone at the marina.