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27. 11. 96
PROJECTS AND PROPERTY COMMITTEE
14 NOVEMBER 1996
A meeting of the Projects and Property Committee
was held on Thursday 14 November 1996 at 4.00 pm
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.
APOLOGIES: Apologies for lateness were received and accepted
from Councillors Alister James and Oscar Alpers
who entered the meeting at 4.15 pm and 4.17 pm
respectively, and who were present for all clauses
with the exception of clause 4.1.
Councillor Evans retired at 6.00 pm and was
present for clauses 1 to 4 inclusive.
The Committee reports that:
PART A - MATTERS REQUIRING A COUNCIL DECISION
1. CHRISTCHURCH CONVENTION CENTRE RR 3946
furniture, fittings and equipment (ff&e)
and other related enhancements
| Officer responsible | Author |
| Major Projects Co-ordinator | Albert Louman |
| Corporate Plan Output: Corporate Plan, Volume 2, Capital Output 8.1.2 - 8.1.3 |
The purpose of this report is to seek further direction from members of the Projects and Property Committee in respect of furniture, fittings and equipment, and potential enhancement opportunities.
INTRODUCTION
A report was presented to the 31 October Projects and Property Committee meeting seeking a direction from the Committee regarding possible enhancements to the Convention Centre, covering:
The report recommended that the Council increase the Project Budget of $15,350,000 by $1,495,900 to cover the cost of the proposed enhancements.
The Committee resolved that the Major Projects Co-ordinator be requested to re-examine the items listed in the report and the priorities accorded in each case, with a view to reporting to the 14 November meeting of the Committee identifying possible savings and giving details of the amount of funding likely to be available from sponsorship and other sources.
The amount of funding likely to be available from sponsorship and other sources is the subject of a separate report to this meeting.
Since the 31 October meeting, discussion has taken place with NCC (New Zealand) Ltd and the Project Manager on the items listed in the 31 October report and the priorities accorded, and I report as follows:
FURNITURE, FITTINGS AND EQUIPMENT (FF&E)
At the time of the award of the main contract in December 1995, the standard of quality for FF&E, particularly tableware and the like, had not been well defined and it was assumed that this would be similar to that currently in use at the Christchurch Town Hall. This decision was made without the benefit of the experience of NCC (New Zealand) Ltd. NCC (New Zealand) Ltd have advised that to be competitive internationally in the convention market, the quality of FF&E items will need to be significantly better. They consider this upgrade is important as it is part of the image of Christchurch that delegates will take away with them.
Another change to note is that at the time of preparing the original FF&E estimate, and being mindful of budget constraints, the decision was made to base the numbers of chairs and place settings on 800 persons. This was because the Christchurch Town Hall can currently host banquets of up to 700 persons and it was assumed that in the event of more than 800 persons, chairs and tableware would be available ex the Town Hall, giving a maximum capacity of 1,500 persons. At least initially it was considered unlikely that there would be major sit down dinners at both venues exceeding 1,500 persons on the same date. It was also considered that conventions and special gala dinners with more than 800 delegates would not occur frequently, and, as an alternative, that chairs and crockery could be hired for these occasions if necessary. It was suggested that this could occur approximately four times per year, ie once every three months or so. NCC (New Zealand) Ltd now advise that they anticipate four functions in excess of 1,000 diners in the first one-two months following completion of the Centre, with more scheduled throughout the first year of operation. Nevertheless NCC (New Zealand) Ltd recommend the purchase of only 1,350 place settings at this time.
Another point to consider in respect of the FF&E budget is that the `par value' in relation to diner numbers includes an allowance for breakage. It could be argued that the allowance for breakage and replacement of chipped items is an operational cost. NCC (New Zealand) Ltd's par values are higher than those suggested at the time of preparing the initial budget.
Following discussion with NCC (New Zealand) Ltd and the Project Manager, the recommended increase in the Project Budget for FF&E has been reduced, and it is now recommended that the following increases in the Project Budget are made:
| (a) | Increase the number of chairs to be purchased from 800 to 1,500 | $117,000 | |
| (b) | Increase the number of place settings (crockery, cutlery, glassware etc) to be purchased from 800 to 1,350 | $370,000 | |
| $487,000 |
It needs to be emphasised that the current FF&E budget of $938,054 meets the `Original 1995 Brief' and the approved project budget of $15,350,000.
However, should the Council wish to approve the increase in the number of chairs from 800 to 1,500 and the place settings from 800 to 1,350, the current FF&E budget needs to be increased by $487,000.
OTHER ENHANCEMENTS
To meet the approved cost plan, the Council at its meeting on 13 December 1995 directed the consultants to reduce the cost of the main building and siteworks by $857,000.
The reduction of $857,000 has been achieved as the project is currently on budget, and the unexpended balance of the contingency sum remaining in the building contract at 25 October is $135,596, even after allowing the cost of upgrading the carpet, glazing and lighting ($52,000) from the contingency sum as directed by the Council.
When the Project Budget was prepared, it was agreed that a number of items such as forklifts and other operational equipment would be hired or leased rather than being purchased outright. It is not uncommon for businesses to lease this type of equipment. NCC (New Zealand) Ltd have advised that their operating budget approved by the Council does not allow for this option. If they have to hire or lease equipment, then this will affect their bottom line return and therefore the Council will pay indirectly in any event.
A further change from the time that the Project Budget was prepared is that it was understood that there would be significant sponsorship for various rooms or items including FF&E and a number of items were defined in this category at no cost to the project. The reality is that sponsorship has, as yet, not been forthcoming and that the Council will need to underwrite these costs in the interim.
A number of possible enhancements have been identified by the Project Consultants and NCC (New Zealand) Ltd. These possible enhancements have been reviewed following the 31 October Projects and Property Committee meeting, and it is now recommended that the following enhancements be implemented:
a Exterior
| Item | Description of Work | Estimated on-cost including provision for professional fees |
| 1. | Improve the appearance of the forecourt to the Convention Centre. Currently the Project Budget provides for a concrete asphaltic finish only. This is in contrast with the forecourt to the Town Hall. | 80,000 |
| 2. | Whilst not mandatory, but to make the building more accessible for use by ambulant disabled persons, fit automatic opening doors to facilitate wheelchair entry | 20,000 |
| 3. | Provide 40 flagpole socket bases and 3 flagpoles | 20,000 |
| 4. | Provide additional exterior signage | 20,000 |
| Sub-total | $140,000 |
b Interior
| Item | Description of Work | Estimated on-cost including provision for professional fees |
| 1. | Seal the floor to the Main Convention Hall, pre-function areas and Back-of-House storage area to avoid `dusting' of the concrete floor slab. | 20,000 |
| 2. | Install transparent "cool store" type strip doors in ground floor storage areas to help alleviate heat loss. | 5,000 |
| Sub-total | $25,000 |
c Systems
| Item | Description of Work | Estimated on-cost including provision for professional fees |
| 1. | Allowance for end-of-line devices for fibre optic cabling connection to Town Hall. | 8,000 |
| Sub-total | $8,000 |
d Operational Equipment
| Item | Description of Work | Estimated on-cost including provision for professional fees |
| 1. | Electric forklift (3 tonne) including battery charger. | 58,000 |
| 2. | Elevating work platform (scissor lift): platform height 7.89 metres; working height 9.89 metres. | 36,000 |
| 3. | Point-Of-Sale Equipment (cash registers and swipe card readers) at reception and bars. | 85,000 |
| Sub-total | $179,000 |
e Miscellaneous Items
| Item | Description of Work | Estimated on-cost including provision for professional fees |
| 1. | Change table top support system to collapsible (to maximise storage capacity and minimise labour costs). | 20,000 |
| 2. | Allowance for items previously identified as sponsored items and not budgeted for eg the fitting out of the following spaces: boardroom, performers dressing and function rooms, first aid room and retail space; built-in joinery in first floor Business Centre and NCC Offices. | 50,000 |
| 3. | Allowance for time capsule. | 10,000 |
| 4. | Allowance for opening events including souvenir opening brochure. | 25,000 |
| 5. | Estimating contingency of 5% | 50,000 |
| Sub-total | $155,000 |
SUMMARY OF IDENTIFIED ENHANCEMENT COSTS
| 1 Furniture, Fittings and Equipment 1) | 487,000 |
| 2a Exterior Enhancements | 140,000 |
| 2b Interior Enhancements | 25,000 |
| 2c Systems Enhancements | 8,000 |
| 2d Operational Equipment 2) | 179,000 |
| 2e Miscellaneous items | 155,000 |
| TOTAL RECOMMENDED ENHANCEMENTS | $994,000 |
COMMENTS
1) The current FF&E budget of $938,054 meets the "Original 1995 Brief" and the approved Project Budget of $15,350,000. However, to increase the number of chairs from 800 to 1,500 and the number of place settings from 800 to 1,350, the current FF&E budget needs to be increased by $487,000.
2) The cost of operational equipment was assumed to be an operating cost with equipment to be hired or leased rather than purchased. It was not provided for in the Project Budget.
ARTWORK
The Council's attention is drawn to the fact that the project budget does not include an allowance for artwork.
ELECTRONIC EVENTS BOARD
NCC (New Zealand) Ltd have recommended that an electronic events board be designed and installed at the corner of Colombo and Kilmore Streets to advertise events in the Convention Centre and Town Hall.
NCC (New Zealand) Ltd have advised that they would arrange sponsorship to fund the events board and have requested approval in principle from the Council to install the electronic events board.
ACHIEVED SAVINGS
The tender for the main building and siteworks was reduced by $857,000. This was achieved by making deletions and changes.
The cost of upgrading the carpet, glazing and lighting ($52,000) has been met from the contingency sum as directed by Council.
BUILDING CONTINGENCY SUM
As with all projects, there are variations to the work specified - both additions and savings. The cost of the variations on this project have been absorbed, and the remaining building contingency sum at 25 October 1996 is $135,596 even after allowing the cost of upgrading the carpet, glazing and lighting ($52,000) from the contingency sum as directed by the Council (as noted above).
CONCLUSIONS
The project as at 25 October 1996 is on budget.
The project can be completed in compliance with the existing Brief and within budget.
If the enhancements are to be implemented, additional funds are needed.
The Committee deleted the following items, for the reasons shown:
| Item | Estimated Cost | Reason for Deletion |
| Electric Forklift | $58,000 | To be leased or hired. |
| Scissor Lift | $36,000 | To be leased or hired |
| Time Capsule | $10,000 | Alternative source of funds to be identified |
| Allowance for opening events including souvenir opening brochure | $25,000 | To be treated as an operating expense |
Members of the Committee agreed that there was a need to identify further sources of funding (including sponsorship) to provide for the identified enhancement costs plus artwork, no provision presently being made for this latter item. The Director of Finance has been asked to submit a supplementary report to the present Council meeting on possible supplementary funding.
Recommendation: 1. That the Council increase the Project Budget of $15,350,000 by $865,000 to cover the identified enhancement costs (being the items listed in the report less the deletions made by the Committee, listed above).
2. That the source of funds for the foregoing enhancements be identified following consideration of the supplementary report from the Director of Finance to the present Council meeting.
3. That a team of appropriate officers be requested to identify an appropriate source of funds for the acquisition of art work for the Convention Centre.
4. That approval in principle be given by the Council for NCC (New Zealand) Ltd to seek sponsorship and prepare a design for an electronic events board at the corner of Colombo Street and Kilmore Street.
2. DISPOSAL OF PROPERTY: SHORTLAND STREET RR 4089
| Officer responsible | Author |
| Property Manager | Stephen Cribb, Property Services Officer 8/5/40/3 |
| Corporate Plan Output: Parks Unit Capital Outputs - Fixed Assets |
The purpose of this report is to obtain Council approval for the disposal of a residential section that was originally part of a road reserve to link Helenca Avenue with Shortland Street. The road was never formed and part of the land has already been disposed of to adjoining industrial owners and the balance of the land is now surplus to Council requirements. In order for the disposal of the land and house to comply with the provisions of the Local Government Act, the Council must pass the necessary resolution.
Resolution
Pursuant to Section 230 of the Local Government Act 1974, the Christchurch City Council hereby resolves to dispose of the land described in the following Schedule.
Schedule
All that parcel of land containing 1,024m2 or thereabouts being Lot 1 DP 72350 and contained in CT 42A/97 (plan attached).
Recommendation: 1. That the above resolution be adopted.
2. That the 1,024m2 of land at 78A Shortland Street be offered for sale by public tender.
3. That if a satisfactory tender price is not obtained, the property be listed for sale with a real estate agent at not less than the minimum price as assessed by a registered valuer engaged by the Council.
PART B - ITEMS DEALT WITH BY THE COMMITTEE AND
REPORTED FOR INFORMATION ONLY
3. CENTRAL LIBRARY UPGRADE PROJECT:
tender acceptance RR 4088
| Officer responsible | Author |
| Property Manager | Peter Wills, Commercial Property Manager |
| Corporate Plan Output: Corporate Plan Output: Vol II, table 8.9.36 |
The purpose of this report is to bring members of the Projects and Property Committee up to date on progress of the Central Library Upgrade Project and to obtain a tender acceptance for the Stage II fitout contract main contractor.
PROGRESS AND PROGRAMME
Stage I Extension
Construction of Stage I comprising additions to the third floor, additional escalators, new toilets and fire escape stairs, which was constructed by Fletcher Construction, is now complete. The forecast final cost for Stage I is $2,957,142 which represents a saving of $60,000 on the accepted tender price.
Stage II Fitout
Detailed design and documentation of the interior fitout for levels ground, 1, 2 and 3 are now complete.
Stage II Contract
The Council, at its September 1996 meeting, resolved:
"That approval be given for the project team to negotiate a cost reimbursement contract with Fletcher Construction New Zealand and South Pacific Limited, with all sub-contract packages to be competitively tendered, subject to details of the sub-contract packages being reported back to the Council."
The consultant team has concluded negotiations with Fletchers to establish rates for Preliminary and General ($63,100) and Margin (4%) for pricing the Stage II fitout. The rates achieved are the same as for the Stage I contract which was based on a competitive tender process.
Prices for the sub-trade packages are now being sought. These will be reported to the Projects and Property Committee in due course.
Having negotiated an acceptable fixed Preliminary and General and Margin from Fletchers the project team therefore submits the following recommendation to accept a negotiated contract with Fletchers for this phase of the work.
The Quantity Surveyors are currently pricing the Stage II works. A full cost plan summary, comprising all the Stage II work, will be reported in the next update report.
The Committee resolved to accept the cost reimbursement contract tender with Fletcher Construction New Zealand and South Pacific Limited for a fixed Preliminary and General sum of $63,100 plus GST and 4% margin on sub-trades. Where possible, competitive tenders are to be called for each sub-contract package.
4. PROGRESS REPORTS: MAJOR PROJECTS
The Committee received progress reports on the following projects:
4.1 Christchurch Pier - Stage I RR 3600
4.2 Centennial Pool Redevelopment RR 3601
(Note: Councillor Howell retired from consideration of clause 4.2 and took no part in the discussion or voting thereon.)
4.3 Pioneer Development RR 4108
Arising from the report it was resolved that the Leisure and Community Services Manager be asked to report on the necessity or otherwise to continue with the use of the name "Pioneer" bearing in mind a statement that the name originated from a grant made to the Council some years ago by the former Pioneer Sports Club.
4.4 Christchurch Sport and Entertainment Centre RR 3596
4.5 Christchurch Convention Centre RR 3599
Arising from an inspection of the Convention Centre held immediately prior to the Committee meeting, it was resolved that the Major Projects Manager obtain a report on the interior colour scheme from the architects for consideration at the special meeting of the Committee to be held on Wednesday 20 November 1996.
5. FORWARD CAPITAL PROGRAMMES
The Committee received a report by the Financial Planning Manager that in view of the work still to be done on asset management planning it had been decided to delay the review of the forward capital programmes until February 1997, when the programmes would be reviewed in conjunction with the operating budgets.
6. RESOLUTION TO EXCLUDE THE PUBLIC
The Committee resolved that the draft resolution to exclude the public set out on page 16 of the agenda be adopted. It was further resolved that an oral report on the pourage rights be considered with the public excluded, such report to be considered pursuant to section 7(2)(h) of the Local Government Official Information and Meetings Act 1987, relating to commercial activities.
CONSIDERED THIS 27TH DAY OF NOVEMBER 1996
MAYOR