PROJECTS AND PROPERTY COMMITTEE

11 JULY 1996

A meeting of the Projects and Property Committee

was held on Thursday 11 July 1996 at 4.00 pm

PRESENT: Councillor Ron Wright (Chairman),

Councillors Oscar Alpers, Carole Evans,

Ishwar Ganda, Ian Howell, Alister James

and Denis O'Rourke.

IN ATTENDANCE: Councillor David Buist was in attendance for

clauses 7 and 8 only.

APOLOGIES: Apologies for absence were received and accepted

from the Mayor and Councillors Carole Anderton

and Morgan Fahey.

Councillors Alpers and O'Rourke entered the

meeting at 4.08 pm, and were not present for

clauses 1, 2 and 3.1.

Councillor Howell retired from the meeting at

5.05 pm and was not present for clause 8. The Committee reports that:

PART A - MATTERS REQUIRING A COUNCIL DECISION

1. CANTERBURY PUBLIC LIBRARY:

PROPOSED LIGHTING REFURBISHMENT RR 3037

Officer responsible	Author
Commercial Property Manager	Peter Wills
Corporate Plan Output: Volume 2, page 8.9.36 Central Library Services

The purpose of this report is to seek the Council's approval to replace the existing light fittings at the Central Library with new energy efficient lighting (unbudgeted item) and to take advantage of an interest free loan from the Energy Efficiency and Conservation Authority (EECA).

PROPOSED LIGHTING UPGRADE

The proposed lighting upgrade at the Central Library was deleted from the Stage 1 Central Library upgrading and refurbishment contract to reduce the overall cost of the project, prior to the acceptance of the Stage 1 tender, to obtain a budgeted outcome.

Subsequently, the Energy Manager has reviewed the lighting consultant's calculations and indicative estimate of the proposed capital costs associated with the lighting upgrade project ($180,000 + GST) and calculated the benefit to the Council in terms of annual energy and operating savings of $40,000 pa. This equates to a four and a half (4.5) year payback period. The indicative estimate has not made any allowance for salvage value for the existing fittings. These fittings are old and probably have limited salvage value. However, the actual tender price will reflect any salvage potential.

The Energy Manager's recommendations are:

1. To proceed with the project.

2. To apply for a $180,000 EECA interest free loan. (A one-off loan administration fee is charged when the loan is uplifted.)

There is no money in the current Central Library Upgrading Project to enable this energy efficient lighting initiative to proceed within budget and the proposal therefore requires Council approval if it is to proceed. It will be recalled that the previous update report stated that the Project Team has managed to find savings ($146,039 to date). This has been identified for carpet replacement.

The Funds Manager has advised that although an interest free loan for this project is available, the actual capital costs for the project ($180,000 + GST) must be shown in a capital expenditure project. As the Central Library is currently being refurbished it is appropriate that the lighting upgrade work be put against this project. Although this particular charge would be an over budget item, the advantages as far as the Council corporately is concerned, are the availability of an interest free loan and significant annual operating savings ($40,000) pa. The term of the interest free loan would be for four (4) years.

Recommendation: 1. That approval be granted for the over budget expenditure of $180,000 for the Central Library project to enable the existing lights at the Central Library to be replaced with new energy efficient fittings.

2. That the Council apply for an EECA four year interest free loan of $180,000 and that the Funds Manager be authorised to complete the necessary borrowing formalities.

PART B - ITEMS DEALT WITH BY THE COMMITTEE AND

REPORTED FOR INFORMATION ONLY

2. CANTERBURY PROVINCIAL COUNCIL BUILDINGS

BELLAMYS WING STRENGTHENING AND MAINTENANCE

tender acceptance RR 3073

The Property Manager reported, seeking approval to accept a tender for the strengthening work to the Bellamys Wing of the Canterbury Provincial Council Buildings.

Pursuant to delegated power the Committee resolved to accept the tender of Chas S Luney Ltd for $637,559 plus GST and associated adjustment of tags $49,000 (total price $686,559).

3. PROGRESS REPORTS ON MAJOR PROJECTS

The Committee received progress reports on the following projects:

3.1 Central Library Upgrade Project

3.2 Christchurch Pier: Stage 1

3.3 Christchurch Convention Centre

3.4 Christchurch Sport and Entertainment Centre

4. SPORT AND ENTERTAINMENT CENTRE

LOTTERIES BOARD GRANT

The Committee received an oral report by the Chairman advising that the Lotteries Grants Board had just announced a grant of $4 million towards the Sport and Entertainment Centre for 1996/97, and that the Council had been invited to apply for a further grant in a subsequent financial year.

5. SUPPLEMENTARY REPORT

The Chairman referred to a tabled confidential report by the Property Manager regarding the provision of car parking for Christchurch Public Hospital and the Convention Centre. The Chairman advised that the report had not been circulated with the agenda for the reason that it had not been completed until after the agenda had been prepared and circulated. He further advised that it was preferable that the report be considered at the present meeting rather than being deferred to a subsequent meeting, so that Councillors could be brought up to date on these two issues.

The Committee resolved that the report be received and considered at the present meeting.

6. RESOLUTION TO EXCLUDE THE PUBLIC

The Committee resolved that the draft resolution to exclude the public set out on page 15 of the agenda be adopted, subject to the incorporation in the resolution of the tabled report by the Property Manager on Christchurch Hospital parking and Convention Centre parking, such report being considered with the public excluded pursuant to section 7(2)(i) of the Local Government Official Information and Meetings Act 1987, relating to the conduct of negotiations.

CONSIDERED THIS 24TH DAY OF JULY 1996 MAYOR

SUPPLEMENTARY REPORT BY THE

CHAIRMAN OF THE PROJECTS AND PROPERTY COMMITTEE

9. A & P ASSOCIATION AND CCC -

ADDINGTON/HILLMORTON LAND EXCHANGE RR 3320

Officer responsible	Author
Property Manager	Pamela Ellis, Property Services Manager
Corporate Plan Output: Unit Capital Outputs - Addington/Hillmorton Enhancement Project

The purpose of this report is to seek delegation of authority to the Projects and Property Committee to deal with residual matters arising from the conditional contracts between the Council and the A & P Association for the exchange of land at Curletts Road and Lincoln Road.

In December 1994 the former Property Sub-Committee was delegated power to finalise the agreements between the Council and A&P and to deal with any issues arising from the conditions which required subsequent action on behalf of the Council. Amended agreements were approved in July 1995 and the date for fulfilment of conditions was linked to the outcome of the planning appeal on the Wigram zone change.

The planning appeal matter has just been tentatively settled and there are residual matters arising from the conditional contracts which will require urgent consideration and delegated authority so that confirmation of the contracts is not delayed.

It is requested that the same delegated authority held by the former Property Sub-Committee now be given to the Property and Projects Committee.

Recommendation: That the Property and Projects Committee be delegated the authority to deal with any matters arising from the conditional contracts with the A&P Association which require decision on behalf of the Council.

Chairman's

Recommendation: Not seen by Chairman.

CONSIDERED THIS 24TH DAY OF JULY 1996 MAYOR

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