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PROJECTS AND PROPERTY COMMITTEE
23 APRIL 1996
A meeting of the Projects and Property Committee
was held on Tuesday 23 April 1996 at 4.00 p.m.
PRESENT: Councillor Ron Wright (Chairman),
The Mayor,
Councillors Oscar Alpers, Carole Anderton,
Carole Evans, Morgan Fahey, Ishwar Ganda,
Ian Howell, Alister James and Denis O'Rourke. IN ATTENDANCE: Councillor David Buist. Councillor James arrived at 4.12 p.m. and was
present for clauses 1, 3 and 4. Councillor O'Rourke arrived at 4.15 p.m. and was
present for clauses 1 and 4. Councillor Evans arrived at 4.18 p.m. left at
5.20 p.m., and was present for part of clause 1 only. Councillors Anderton and Ganda arrived at
4.50 p.m. and were present for clauses 1 and 4. The Mayor arrived at 5.16 p.m. and was
present for clauses 1 and 4.
The Committee reports that: PART A - MATTERS REQUIRING A COUNCIL DECISION
1. CHRISTCHURCH SPORT AND ENTERTAINMENT CENTRE RR 2670
Officer responsible Author Major Projects Co-ordinator Albert Louman Corporate Plan Output: Enhancement Projects (Corporate Plan, Volume 1, Table 8)
The purpose of this report is to seek adoption by the Council of the refined Technical Design Brief, preliminary sketch plans, budget estimates and programme all as reported on in the attached Design Report dated April 1996 and further to approve the preparation of contract documentation comprising working drawings, Specifications and Schedules of Quantities and the calling of tenders.
1 Cont'd INTRODUCTION The Council received a preliminary budget report from its Construction Cost Consultants and Quantity Surveyors, Rawlinsons, in the middle of February 1996. The advice given at that time and based on the IFC Detailed Technical Design Brief was that the projected completion cost of the Christchurch Sport and Entertainment Centre in 1998 was $37.4 million. Since that time the Project Consultant Team has worked very hard to reduce the cost by reviewing the IFC Detailed Technical Design Brief, conducting value management workshops and working closely with the Venue Manager and Council officers. This has resulted in a cost reduction of $5.3 million bringing the total estimated completion cost down to $32.1 million. The figure of $32.1 includes provisions for inflation, an increase in concourse width, a practice netball court and also meets the specific requirements for the 1999 World Netball Championship. A significant amount of preliminary project design has now been undertaken. This has resulted in the preparation of the Design Report and includes the refined Technical Design Brief, preliminary sketch plans and an updated programme. This information provides a clearly defined scope of work and sufficient project definition to enable confidence to be placed in the budget estimate for the design, construction and fit-out of the complex as now presented. The budget estimate includes an allowance of $900,000 as a project contingency which represents approximately 3% of the construction and fit-out cost. This is considered a minimum by the Consultant Team to provide comfort to the Council that the ongoing design development and unforseen circumstances encountered during construction can be contained within the total project budget estimate stated in the Design Report. DESIGN BRIEF AND PRELIMINARY SKETCH PLANS The original Ogden IFC Detailed Technical Design Brief has been refined as part of the design development process. The input by the Venue Manager has further contributed to optimising the operational and commercial aspects of the Sport and Entertainment Centre and as now presented in the Design Report. The design of the building generally complies with the requirements of the September 1995 Detailed Technical Design Brief prepared by Ogden International Facilities Corporation (Asia Pacific) Ltd in that all of the key fundamental design parameters have been met as follows: * A design solution which best satisfies all of the intended usage modes with the minimum level of compromise for the main users of the facility, the hirer, the public spectator and the Venue Manager. * A flexible, multi-functional facility with a fast, efficient and cost effective change-over between modes.
1 Cont'd * A facility that is economical to construct and operate and that also provides for staff and patron safety, comfort and amenity. * A building which is aesthetically pleasing and fits in the city's major infrastructure. The Council's earlier resolution that the arena floor be founded at ground level and the seating configuration be `horseshoe shaped' has been provided for in full. The facility is complementary to and fits in well with other similar venues on the Australasian circuit. Design refinements have resulted in being able to accommodate the specific requirements of the International Federation of Netball Associations in terms of court layouts, court clearances and warm-up facilities in the back-of-house storage area. A further refinement is the increase in width of the concourse from 7 to 9 metres. Discussions have been held with the Venue Manager, Mr Michael Kelly of NCC (New Zealand) Ltd and Mr Alan Patterson, Principal Adviser Leisure and Community Services, Christchurch City Council and written expressions of their approval of the preliminary sketch plans have been received. Further developmental work is of course necessary as part of the usual design/construction process leading to the calling and receipt of competitive tenders. The figure of $4,572,500 for Furniture, Fittings and Equipment is to be considered as a provisional sum at this stage as much detailed work has yet to be undertaken. The tender evaluation/recommendation report will fully address this issue. In the meantime a small group of Council officers, the appropriate Consultants and the Venue Manager will analyse the need and procurement aspects. I am confident that the $4,572,500 figure is adequate. BUDGET ESTIMATES
Following input from the Venue Manager and further design review, a total project cost estimate of $32.1 million (excluding GST) has been prepared by Rawlinson and Co Ltd, Quantity Surveyors. This estimate is broken down as follows:
$
Site Development 1.990m Building construction cost 21.580m Furniture, furnishings and equipment 4.572m Professional fees 2.578m Miscellaneous expenses (building levies and consent,1 Cont'd The above estimate includes an allowance for projected pre and post tender inflation and represents the anticipated completed cost of the project in August 1998. Exclusions from this estimate are: 1. GST
0.480m Resource Consent, subdivisional consent, advertising, legal costs, etc) Project contingency allowance 0.900m $32.100m
2. Marketing, promotion and fundraising costs
3. Operating costs including rates, insurance, cleaning and maintenance.
4. Finance costs
5. Leasing costs
6. Work beyond Addington Raceway Limited boundary This estimate has been based on the refined Technical Design Brief and preliminary sketch plans prepared by Peddle Thorp/Barclay Hodgskin Architects. It should be noted that the above estimate includes for the increase in width of the concourse from 7 metres to 9 metres wide as recommended by the Venue Manager in order to maximise revenue from the food and beverage outlets. Also included is an extension of the back-of-house storage area in order to provide sufficient space for a warm-up court for the 1999 World Netball Championships. Rawlinsons are confident that the proposed project budget of $32.1 million reflects the quality and standard required of this venue. The figure of $32.1 million has been provided for in the 1996/97 draft Annual Plan. PROGRAMME Included as Appendix III in the Design Report is a copy of Octa Associates' Co-ordination Programme 424/CP03 which indicates completion of the project in August 1998. This date is based on the assumption that Council approval for the award of the building construction contract is given at the meeting scheduled to be held on 23 October 1996 with the Contractor starting on site in mid-November 1996 (immediately after the Show Day race meeting at Addington). This programme will allow time for the preparation of contract documentation (working drawings, Specifications and scheduling by the Quantity Surveyor) and for the pre-qualification of Contractors, tender period, tender evaluation and recommendation to the Projects and Property Committee by the Project Team. It also allows time for the obtaining of the necessary Resource Consents and assumes that no appeal will be lodged. Further, it covers the work reflected in the current building estimate. SPONSORSHIP AND FUNDRAISING Sponsorship and fundraising opportunities for this project are discussed in the Public Excluded section of this report.
1 Cont'd Mr Wayne Petrie (Peddle Thorp Architects) made a presentation on behalf of the consultants associated with the project and answered a number of associated questions from Councillors. At the request of the Committee, the Major Projects Co-ordinator has since submitted a supplementary report on the funding of this project, including an updated revenue estimate. This report is included in the public excluded section of the Committee's report to the present Council meeting. Recommendation: 1. That the Council adopt the refined Technical Design Brief, preliminary sketch plans, budget estimate ($32.1m) and programme outlined in the foregoing report. 2. That the Council approve the preparation of contract documentation (working drawings, Specifications and Schedules of Quantities) and the calling of tenders.
2. CHRISTCHURCH CONVENTION CENTRE RR 2681
LPG SUPPLEMENTARY HEATING TO
AIR CONDITIONING AND VENTILATION SYSTEMS
Officer responsible Authors Major Projects Co-ordinator Albert Louman
Leonid Itskovich - Energy Manager Corporate Plan Output: Corporate Plan, Volume 1, Table 8
The purpose of this report is to advise the Projects and Property Committee of an opportunity to use an interest free loan to change the supplementary heating to the principal air conditioning and ventilation systems at the Convention Centre from electric to LPG, giving an ongoing reduction in operating expenditure. INTRODUCTION
There are three Main Convention Halls of 600m2 floor area each. These can be operated as individual spaces or as a single space. Each of the Convention Halls is served by an independent air conditioning system including a heat pump. Because of the high design occupancy rates of the Convention Halls, the air conditioning system must be able to accommodate large quantities of outdoor air, and consequently under certain conditions the heat pump requires supplementary heating. The kitchen has a supply air ventilation system which must be tempered at times to avoid discomfort to the staff. The options for supplementary heating are either:
1 Cont'd (a) direct electric resistance heating - this is the type of supplementary heating specified, or (b) indirect LPG heating. CAPITAL COSTS
The additional capital cost of providing LPG supplementary heating is estimated at $38,000 for the Main Convention Halls and $15,500 for the kitchen, giving a total additional capital cost of $53,500. OPERATING COSTS If the specified electric supplementary heating is changed to LPG, the annual energy cost savings are estimated at $10,400 for the Main Convention Halls and $7,100 for the kitchen, giving a total annual energy cost saving of $17,500. A total annual energy cost saving of $17,500 gives a pay back period of just over three years. Any increase in electricity costs (which are predicted to occur), will shorten the pay back period. Having paid back the additional capital cost of the LPG supplementary heating over three years, annual operating savings will result in an ongoing continuous basis. LPG supplementary heating was considered for the Convention Centre meeting rooms, but the pay back period was too long (10 years). CROWN ENERGY EFFICIENCY LOAN SCHEME
The government funded Energy Efficiency and Conservation Authority (EECA) operates an interest free loan scheme to Government Departments, as well as Regional and Territorial Local Authorities. This Crown Energy Loan Scheme is provided to encourage ongoing energy efficiency, and accordingly it provides finance for projects which save energy and have a pay back period of five years or less. The cost savings due to reduced energy consumption are used to repay the loan. The installation of LPG supplementary heating to the Main Convention Halls and kitchen at the Convention Centre meets this criteria. A loan application fee of 10% of the loan is charged on receipt of the loan money. Payment of this application fee has been included in the additional capital cost of $53,500. An EECA loan was used by the Council recently to partly finance the new gas powered electricity generator at the Bromley Wastewater Treatment Plant. 1 Cont'd CONVENTION CENTRE BUDGET The additional capital cost of changing the supplementary heating from electric to LPG would not be an additional expenditure against the Convention Centre budget but would be treated as a separate capital project funded by the EECA interest free loan, with the loan repayments being paid out of the annual energy cost savings. This proposal has been discussed with the Director of Finance who has endorsed it. Recommendation: That the supplementary heating on the air conditioning and ventilation systems for the Convention Centre Main Convention Halls and kitchen be changed from electricity to LPG, to be funded by an interest free loan from the Crown Energy Efficiency Loan Scheme. PART B - ITEMS DEALT WITH BY THE COMMITTEE AND
REPORTED FOR INFORMATION ONLY
3. DISPOSAL OF SURPLUS PROPERTY RR 2644 The Committee received a progress report by the Property Manager regarding the sale of surplus properties, and the revenue likely to be derived from such sales.
4. RESOLUTION TO EXCLUDE THE PUBLIC The Committee resolved that the draft resolution to exclude the public set out on page 9 of the agenda be adopted. CONSIDERED THIS 22ND DAY OF MAY 1996
MAYOR