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PROJECTS AND PROPERTY COMMITTEE
13 JUNE 1996
A meeting of the Projects and Property Committee
was held on Thursday 13 June 1996 at 4.00 pm
PRESENT: Councillor Ron Wright (Chairman),
The Mayor,
Councillors Oscar Alpers, Carole Anderton,
Carole Evans, Ishwar Ganda, Ian Howell,
Alister James and Denis O'Rourke.
IN ATTENDANCE: Councillor David Close.
APOLOGY: An apology was received and accepted from Councillor Morgan Fahey. The Mayor retired from the meeting at 4.30 pm
during consideration of clause 2.1 and was not
present for the remaining clauses. The Committee reports that: PART A - MATTERS REQUIRING A COUNCIL DECISION
1. CHRISTCHURCH CONVENTION CENTRE RR 3042
MONTHLY REPORT
Officer responsible Author Major Projects Co-ordinator Albert Louman Corporate Plan Output: Corporate Plan, Volume 1, Table 8The purpose of this report is to bring members of the Projects and Property Committee up to date on progress on the Convention Centre Project. REPORTING PERIOD ENDING 31 MAY 1996
GENERAL (PROGRESS)
Concrete work continues to make good progress, with the majority of the precast concrete wall panels and floors having been placed. Framing of walls and floors has begun, and a start on service trades is targeted for June. OUTSTANDING ISSUES
Kitchen Confirmation of the availability of funding from the Waste Management Unit for the refrigeration/cooling to the `wet' recyclable waste area is still awaited.
1 Cont'd The Contractor has completed the repricing of the kitchen equipment and confirmation is awaited from the Venue Manager that some minor changes to meet the budget are acceptable. On receipt of this confirmation, the Contractor will be instructed to proceed with the ordering, fabrication and installation of the equipment. Joinery Warren & Mahoney have had a series of design meetings with the Venue Manager to discuss NCC (New Zealand) Ltd's requirements for reception and bar counters, and other joinery items. These meetings will enable the joinery to be drawn up and finalised. Furniture, Fittings and Equipment (FF&E) Several meetings have been held with NCC (New Zealand) Ltd to define their role in the FF&E procurement process in relation to Warren & Mahoney's interior design responsibilities. NCC (New Zealand) Ltd are currently preparing a list of the required FF&E items, and once this is finalised the method of procurement will have to be agreed. Audio-Visual Mr Larry Elliott, a specialist audio-visual consultant, has been appointed to complete a peer review of the audio-visual design. The first stage is a review of the cabling included within the building contract. This was to be completed by 31 May 1996, and will be followed by a technical review of the overall system design. The procedure for the preparation of the design specification and the procurement of the audio-visual equipment including installation is still to be resolved. Consents An application for a resource consent for the LPG flue discharges from the hot water boilers and other LPG appliances is close to completion and will be lodged with the Canterbury Regional Council in late May/early June 1996. The design of the LPG enclosure has been submitted to the Council's Dangerous Goods Inspectors for their approval. APPROVALS REQUIRED
No approvals are sought from the Projects and Property Committee at this meeting. 1 Cont'd ADD-BACK ITEMS
At the time of the award of the construction contract for the Convention Centre, the Council required that deletions of $857,000 be made so that the cost plan matched the funding currently available (ie $15m). The Council also resolved that if additional funds became available from sources such as naming rights, commercial agreements or other fundraising, then these additional funds could be used to reinstate the deleted items. The required deletions of $857,000 were achieved by issuing Variation Orders based on the Quantity Surveyor's estimates. This reduced the contract value to $11,411,446.00 including a Contingency Sum of $200,000. Most of the changes to achieve the deletions required further design work before the precise reduction could be quantified. Redesign and subsequent pricing is now effectively complete with the remaining issues relating principally to mechanical services controls and the finalising of the light fittings for the project. The Quantity Surveyor's assessment is that, overall, the targeted deletions have been achieved with the Contingency Sum as at the end of May 1996 being $202,685.34, ie a slight increase in the original amount. As the detailed design noted above has progressed, alternative means of achieving the same effect at less cost have been identified by the Consultants, with the result that many of the items on the `add-back' list are no longer required. However the Consultants consider that a number of items on the add-back list are desirable if the quality of the building is not to be compromised. The Architect also considers that the quality of a number of items currently within the contract should be improved. The key items for consideration would be: Carpet - improved quality $80,000
Light fittings - anticipated deletion cannot be
achieved without reducing the standard or
number of fittings $12,000
Skylight glazing - reinstate double glazing $10,000
Total $102,000
Given the success in achieving the targeted deletions, the Quantity Surveyor was asked whether they would be comfortable in utilising part of the Contingency Sum for this purpose. They have advised that, in their opinion, it is too early in the contract to consider such a move. This course is therefore not recommended, and items should only be added back if additional funding is available. To date, sources such as naming rights, commercial agreements or other fundraising have not raised any additional funding. 1 Cont'd It is therefore recommended that no items should be added back or have their quality improved at this stage.
PROGRAMME
The Contractor remains on programme to complete the building contract by 14 February 1997 (contract completion date), and the total project is on programme to be completed by 31 March 1997.
COST CONTROL (MONTHLY FINANCIAL REPORT)
The estimated completion cost of the building contract is as follows:
Building Contract (including Building $12,218,904.00
Contingency and Kitchen Equipment)
Less Building Contingency ($200,000.00)
$12,018,904.00
variations
a) Agreed Variations
- Variation Orders (566,198.34)
b) Assessed Variations
- Variation Orders - Variation (297,411.00)
Price Requests 53,466.00
($810,143.34 ($810,143.34)
)
****
estimated completion cost of building $11,208,760.66
contract
less budget provision for building
contract (included in Monthly $11,411,446.00
Financial Summary Report below)
___________
total remaining building contingency ($202,685.34)
sum
(under-expenditure)
*** Note - Excludes cost of LPG supplementary heating to Main Convention Halls' air conditioning and kitchen's supply air (which are being funded by a separate EECA loan) and $2,116.83 for electrical conduits which are being paid for by Southpower. - Excludes $50,000 reduction in Project Contingency Sum (from $110,000 to $60,000) which is shown separately in the Monthly Financial Summary Report below. 1 Cont'd Monthly Financial Summary Report
Expenditure to 31 May 1966
Item Description Expenditu Cost to Forecast Budget Variance
re to Complete Total Provision ($)
date ($) Cost ($) ($)
(Total)
($)
a. expenditure -
building
1. Demolition 232,422 Nil 232,422 226,000 6,422
2. Building Nil
(including Building 1,231,578 10,179,86 11,411,44 11,411,44
Contingency and 8 6 6
Kitchen Equipment)
3. Traffic Management Nil Nil
Improvements 110,000 110,000 110,000
including Design
Services Unit Fees
(Kilmore Street/
Peterborough Street)
4. Storage Shelving. Nil 50,000 50,000 50,000 Nil
5. Furniture Fittings Nil 938,054 938,054 938,054 Nil
and Equipment.
6. Audio-Visual Nil 528,000 528,000 528,000 Nil
Equipment.
7. Fees 648,834 157,666 806,500 806,500 Nil
(Architectural and
Engineering)
8. Other Fees and Nil
Miscellaneous 432,670 217,330 650,000 650,000
Expenses (Project
Management, Quantity
Surveying etc)
9. Marketing 224,373 75,627 300,000 300,000 Nil
(Pre-Opening
Operational Expenses)
10. Project Nil 53,578 53,578 60,000 (6,422)
Contingency
11. Transfer from Sport Nil
and Entertainment Centre Nil (80,000) (80,000) (80,000)
Budget (for over size
kitchen)
Total Expenditure - $2,769,87 $12,230,1 $15,000,0 $15,000,0 Nil
Building 7 23 00 00
b. expenditure - Nil (736)
land purchase 3,999,264 3,999,264 4,000,000
Total Expenditure - Nil ($736)
Land Purchase $3,999,26 $3,999,26 $4,000,00
4 4 0
c. total expenditure $6,769,14 $12,230,1 $18,999,2 $19,000,0 ($736)
- building and land 1 23 64 00
purchase
d. less contributions
(a) Total Contributions
from Convention Centre
Naming Rights and
Commercial Support
Agreements
(i) Naming Rights Nil
(Code 00811/803)
(ii) Commercial Nil
Support Agreements
(Code 00811/804)
Nil
(b) Less Fundraising ****
Expenses 49,786
Net Contributions ($49,786) ($49,786) 2,401,786 2,352,000 $2,352,00 Nil
0
e. net cost to council $6,818,92 $9,828,33 $16,647,2 $16,648,0 ($736)
- building and land 7 7 64 00
purchase
1
Cont'd
**** Budget Provision for Contributions of $2,352,000 is broken down as
follows:1995/96 $630,000
1996/97 $982,000
1997/98 $370,000
1998/99 $370,000 The Committee was advised that because of the lead times required, approval would be required at the June round of meetings for the additional expenditure of $102,000 required to effect an improvement in the quality of the carpet, light fittings and skylight glazing considered necessary by the consultants. The Committee was also advised that should the additional expenditure not be approved then the quality of the carpet would be significantly inferior to the Town Hall carpet. Members of the Committee were unanimous that approval should be granted for the additional expenditure required to cover the items listed by the consultants, bearing in mind the close integration between the Convention Centre and the Town Hall. This additional expenditure is to be funded from the contingency sum of $200,000. Recommendation: That approval be granted for the following additional expenditure as a charge on the contingency sum of $200,000: Carpet - improved quality $80,000
Light fittings - anticipated deletion cannot be
achieved without reducing the standard or
number of fittings $12,000
Skylight glazing - reinstate double glazing $10,000
Total $102,000
PART B - ITEMS DEALT WITH BY THE COMMITTEE AND
REPORTED FOR INFORMATION ONLY
2. PROGRESS REPORTS ON MAJOR PROJECTS The Committee received progress reports on the following projects: 2.1 Christchurch Sport and Entertainment Centre, including a presentation by the Major Projects Co- ordinator on his recent visit to Canada to inspect similar facilities. 2.2 Christchurch Pier fundraising. The meeting concluded at 5.00 pm
CONSIDERED THIS 26TH DAY OF JUNE 1996
MAYOR