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13. 3. 97
PROJECTS AND PROPERTY COMMITTEE
27 FEBRUARY 1997
A meeting of the Projects and Property Committee
was held on Thursday 27 February 1997 at 2.00 pm
PRESENT: Councillor Ron Wright (Chairman),
The Mayor,
Councillors Oscar Alpers, Carole Anderton,
Morgan Fahey, Ishwar Ganda, Ian Howell,
Gail Sheriff and Denis O'Rourke.
IN ATTENDANCE: Councillors David Close, Graham Condon,
Carole Evans and Pat Harrow.
APOLOGIES: An apology for absence was received and
accepted from Councillor Alister James.
An apology for lateness was received from
Councillor Denis O'Rourke who arrived at
2.20 pm and left at 6.45 pm and who was present
for all clauses with the exception of part of clause 3.
An apology for lateness was received from
Councillor Morgan Fahey who arrived at 2.27 pm
and who was present for all clauses.
An apology for lateness was received from
Councillor Oscar Alpers who was present
between 3.07 pm and 4.55 pm and again
between 6.10 pm and 6.55 pm and who was
present for clause 2 and part of clauses 1 and 3.
The Committee reports that:
PART A - MATTERS REQUIRING A COUNCIL DECISION
1. CENTENNIAL POOL REDEVELOPMENT RR 4608
The Committee reconsidered the following report by the Major Projects Co-ordinator:
| Officer responsible | Author |
| Major Projects Co-ordinator | Albert Louman |
| Corporate Plan Output: Corporate Plan, Volume 2, Capital Output 8.4.55 |
The purpose of this report is to update Councillors on progress with the redevelopment of the Centennial Pool, to support and comment on the Design Report now submitted by the lead consultants, Architecture Warren & Mahoney, and to advise on any cost implications.
BACKGROUND
The Council, at its meeting held on 26 July 1996, approved the concept plan and redevelopment programme for the Centennial Pool, and further resolved that the Projects and Property Committee report back to Council with a recommendation regarding the acceptance of a negotiated price with Mainzeal Property and Construction Ltd. The indicative estimate of cost at that time was $4.556 m.
Since that time a team of Council officers, specialist pool and mechanical consultants, the Project Manager and Mainzeal have prepared the Project Brief.
Following appointment of the lead consultant, sub-consultants and quantity surveyor, a significant amount of work has been undertaken on the design and costings for the redevelopment.
Mainzeal, in the latter stages of the preliminary design process, submitted a further proposal for their part of the development, and following careful consideration of the advantages/disadvantages, the Project Team decided to base the Design Report on the new concept and report back to the Council for its consideration and endorsement.
DESIGN REPORT AND CONCEPT
The Design Report as submitted by the lead consultant provides a clearly defined scope of work, refined and preliminary sketch plans, updated budget estimates and sufficient project definition to enable confidence to be placed in the budget estimates for the design, construction and fit-out of the complex.
In essence the proposed pool/fitness complex and exchange of land provides a far better arrangement without compromising any of the previous decisions of the Council. The green open space remains identical in size and location to that previously approved by the Council but now enables the pool's proposed outdoor seating area and in particular the future proposed children's water play area to be strategically located i.e. in the most sheltered and sunny position of the site. The through access from Armagh Street to Oxford Terrace remains central to the development while the fitness area maintains a similar location commanding a view to the open space.
By switching the car park from the eastern to the western boundary, better utilisation of the area previously occupied by the old pool plant room can be made. It further allows for better access from Armagh Street.
Mainzeal's request to provide underground car parking along the western boundary of the site and under the fitness area also enhances the overall development by:
Removing three above ground car park levels as well as reducing the height of their proposed building development.
Contributing towards the cost of the Fitness Centre by incorporating the centre's structure within their development.
Increasing the value of the saleable/leasable land.
Provision will be made in the design of the underground car park for the grassing of the green open space immediately above the car park (along Oxford Terrace), as well as providing appropriately sized trees along both Armagh Street and Oxford Terrace. Pedestrian access to Mainzeal's development is proposed from Oxford Terrace. No compromise in pool amenities has resulted from Mainzeal's proposal.
Mainzeal as part of their new proposal have submitted a financial and development package for the Council to consider and this will be separately circulated prior to the meeting.
A report by the Property Projects Manager (who endorses the proposed use of the Centennial Pool site) will be separately circulated or tabled.
COST REPORT
Based on the documented Project Brief, and as reported on in the Design Report, the budget estimates are summarised as follows:
| (a) Budget provision as per 1996/97 Annual Plan | 1995/96 | 500,000 |
| 1996/97 | 2,870,000 | |
| 1997/98 | 1,186,000 | |
| 4,556,000 | ||
| Provision for Inflation | 300,000 | |
| Less contribution (Land/Sponsorship/Grants) | (580,000) | |
| Net 1996/97 Budget Provision | $4,276,000 | |
| (b) Total Estimated Project
Cost at completion of project Less Provision for Recoveries |
6,486,250 (130,000) |
|
| Less Contributions(Land/Sponsorship/Grants) | (1,430,000) | |
| Net Estimated Project Cost | $4,926,250 | |
| Estimated Shortfall in Funding | $650,250 |
The net cost to the Council has increased by $650,250 due mainly to a significant increase in building costs over and above those previously supplied by Mainzeal and which formed the basis of previous cost assessments. Part of the costs have been offset by additional revenue from land sales, sponsorship and grants which officers believe is appropriate in the current climate. Also within the budget is provision for:
A second heat pump connected to Southpower's heat pump and forming part of the dehumidification in the pool's air handling system to reduce outdoor air requirements. The estimated additional cost of $85,000 produces substantial electricity savings and has a payback period of 1.25 years. It is anticipated that the cost of the additional heat pump will be funded by the Council's Energy Efficiency Fund.
Provision of a standby generator (estimated cost $180,000) for use during peak periods resulting in an estimated saving of $19,000 pa. The estimated pay back period is 10 years, however with an estimated life expectancy of 40 years and the reduced annual operating cost over its life, savings are significant.
The provision of ozone water treatment ($280,000) was considered initially as an optional extra. However it has now become quite clear that ozone is a requirement for leisure pools to ensure clear and healthy water. Experience has shown that pools without ozone tend to become cloudy as loadings increase (Note: A recent inspection of the QEII pools indicated that an ozone plant would greatly enhance the water quality at that venue during heavy loadings.)
Increased quality/standard of the vapour barrier ($75,000) to the building shell to ensure a maintenance free internal structure and more efficient heating and ventilation.
A project contingency of $250,000 has been allowed. Much detailed design has yet to be undertaken and it is prudent to include this sum at this stage.
PROGRAMME
The programme shows construction commencing in May 1997 with completion and commissioning in April 1998.
CONCLUSION
It is acknowledged that there are cost increases associated with the latest proposal for the redevelopment of Centennial Pool and further that the proposed new site layout differs from the previously approved concept. However, the Project Team believes the latest redevelopment proposals for the Centennial Pool site are clearly superior to all previously presented proposals and will have lasting benefits for the community.
The meeting was also addressed by Mr Jonathan Gillard, who made submissions requesting that:
The Committee also considered a public excluded report by the Property Projects Manager giving details of Mainzeal's offer to purchase the land adjoining the Centennial Pool redevelopment which was potentially surplus to requirements.
Recommendation: 1. That the Projects and Property Committee approve the new design/layout for Centennial Pool as contained in the Design Report subject to an outdoor component for pool users being incorporated.
2. That the Property Projects Manager be authorised to proceed with negotiations with Mainzeal Development and Construction Limited for the sale of the surplus land adjoining the Centennial Pool, and report back to the Council.
3. That Mainzeal's proposal for development of that part of land situated along the Western boundary be approved subject to:
(a) Endorsement of the proposal by Mainzeal's Board
(b) The appropriate legal documents being drawn up
(c) All agreed commitments to the contract being met.
4. That subject to acceptance of Mainzeal's proposal, an additional provision of $650,250 be included in the 1997/98 Annual Plan for the redevelopment of Centennial Pool.
5. That approval be given to commence detailed design work, preparation of tender documentation and the negotiation of a contract with Mainzeal for acceptance by the Council.
2. PIONEER SPORTS STADIUM
(pool, stadium alterations and additions, creche) RR 4609
The following report by the Major Projects Co-ordinator was deferred by the Committee at its meetings on 20 and 27 February 1997, and was reconsidered by the Committee on Monday 10 March 1997:
| Officer responsible | Author |
| Major Projects Co-ordinator | Albert Louman |
| Corporate Plan Output: Corporate Plan, Volume 2, Capital Output 8.4.55 |
The purpose of this report is to bring Councillors up to date with the Pioneer Sports Stadium Project. In particular the report seeks approval to increase the budget for the design and construction of the proposed pool complex (including the mandatory requirements to upgrade the existing stadium in terms of fire safety and access). Approval is also sought to design and construct a fitness facility, administration area and creche.
INTRODUCTION
In 1994 the Council resolved "that a purpose built, sole use creche facility, be built on site for Pioneer Stadium and that the size and location be determined in conjunction with the review of the Pioneer Stadium and the aquatic facility."
Separate funding totalling $265,000 has been budgeted progressively since 1994/95.
The Council resolved in 1996, as part of the pools enhancement programme, to develop a fitness/leisure pool at the Pioneer Sports Stadium site and further that the traditional calling of tenders be the means of selecting a contractor.
Earlier reports stressed the importance of compatibility rather than competition between the proposed pool and the existing stadium facilities, particularly in the provision of recreational activities. It was also agreed that a separate report should be forthcoming outlining proposals for upgrading the existing stadium facilities.
The Budget Review Sub-Committee also requested details of the estimated costs of the proposed aerobics/weight training and administration areas.
These proposals, including the statutory requirements to meet the NZ Building Code, are now included for Councillors' consideration and, if approved, for inclusion in the 1997/98 Annual Plan. Also included are proposed alterations and additions to the existing car park necessary to meet resource consent requirements for the total development as now envisaged.
APPOINTMENT OF CONSULTANTS
Registrations of Interest from selected professional practices were sought for the appointment of project manager, lead and sub-consultants, and cost management/quantity surveyor.
A specification prepared by the Major Projects Co-ordination Unit formed the basis of the calling for tenders. Tenderers submitted proposals and information on which a weighted attribute matrix was used to evaluate tenderers' scores. Attributes sought for evaluation included: previous experience, management and administration, key personnel, key support equipment, innovation in research and development, project methodology, quality assurance details, life cycle costing skills and price.
Tenders closed on 20 December 1996 in the Christchurch City Council tender box. The evaluation was carried out by Major Projects Co-ordination Unit staff.
The outcome of the Tenders was the appointment of the following consultants.
| Project Manager | Octa Associates Ltd |
| Principal Consultant | Barclay Hodgskin/Peddle Thorp Architects |
| Sub-Consultant Structural | Holmes Consulting Group |
| Sub-Consultant Electrical | Beca Carter Hollings & Ferner |
| Specialist Pool Consultant | Vic Davies Architects (Canada) |
| Specialist Engineering Consultant | Keen Engineering (Canada) |
| Quantity Surveyor | Rider Hunt Ltd |
PROJECT BRIEF
In the intervening period and following consultation with the consultants, the Project Brief has been prepared and is now tabled including updated estimates of cost.
Previously, Council approval was given for the design and construction of the pool and the creche including the provision of a new access road and the demolition of an old freestanding toilet block. The siting for some of the proposed work covers part of the old, and now unused, Southern Works yard. This land had previously been designated for future developments at the Pioneer Sports Stadium.
Because of the proposed pool being attached to the existing Pioneer Sports Stadium, a common entranceway/foyer is proposed. Additionally alterations are required within the stadium to meet the requirements of the New Zealand Building Code in respect of fire safety and access.
The Leisure and Community Services Unit has requested that the Council give consideration to proposed short and long term building improvements which are now seen as essential in the provision of a range of market-driven health, fitness and leisure opportunities at the one location. These would provide total quality leisure experience opportunities for a wide range of community groups, families and individuals. The proposed improvements are seen as compatible dry activities to those of the proposed and adjacent aquatic amenities.
Funding provision for the proposed stadium improvements, together with additional funding for the Fitness/Leisure pool and creche, will need to be considered as part of the 1997/98 budget process.
FITNESS/LEISURE POOL
The Project Brief has been prepared on the basis of the fitness/leisure pool concept previously submitted and approved by the Council. As with the Centennial Pool project, analysis of construction costs has highlighted a shortfall in the funding provided. Additional items such as ozone water treatment, standby generator, dual heat pumps, improved vapour barrier and a project contingency have been included in the budget estimates.
A summary of the anticipated pool expenditure/revenue is:
| (a) Budget provision as per 1996/97 Plan | 1996/97 | 740,000 |
| 1997/98 | 2,922,000 | |
| 3,662,000 | ||
| Provision for Inflation | 235,000 | |
| Less contribution (Sponsorship/Grants) | (200,000) | |
| Net 1996/97 Budget Provision | $3,697,000 | |
| (b) Total Estimated Project
Cost at completion of Project Less Provision for Recoveries |
5,097,000 (80,000) |
|
| Less Contributions(Sponsorship/Grants) | (400,000) | |
| Net Estimated Project Cost | $4,617,000 | |
| Estimated Shortfall in Funding | $920,000 |
The net cost to the Council has increased by $920,000 including the provision of a standby generator ($180,000), ozone water treatment ($280,000), increased quality/standard of the vapour barrier ($75,000) and a project contingency ($250,000).
Because the new pool is attached to the existing stadium, the New Zealand Building Code requires upgrading of the stadium's fire safety and access requirements including the provision of a lift and stairs. The estimated cost of these mandatory requirements is $442,500 and is additional to the increased cost of $920,000 for the pool.
CRECHE
The concept design for the Creche has yet to be prepared but a review of the budget allocation included in the 1996/97 Annual Plan for similar sized creches suggests that the budget provision in the 1997/98 Annual Plan needs to be increased by $101,000.
The estimated cost of the creche is as follows:
| Estimated project cost | 383,000 | |
| Less 1996/97 budget provision including $17,000 provision for inflation | 282,000 | |
| Estimated shortfall in funding | $101,000 |
PIONEER SPORTS STADIUM UPGRADING
Fire Safety and Access Requirements
A detailed report (refer Project Brief) has been carried out by Holmes Fire and Safety Division in respect of the statutory requirements for the existing stadium and the proposed alterations and additions.
The report outlines a number of options for the various fire cell compartments of the building and following discussions the agreed options have been included in the Project Brief. This also includes the existing staircase being separated at the base of the stairs in order to provide a safe path in the event of a fire etc.
The NZ Building Code also requires the provision of a lift to provide accessibility for all to the second floor.
The quantity surveyor has advised that the estimated cost of carrying out the aforementioned works is $442,500.
PIONEER SPORTS STADIUM ALTERATIONS AND ADDITIONS
New Aerobic/Fitness areas
Several options were considered in respect of the provision of these additional facilities including a "stand-alone" facility, converting the existing squash courts or converting the upstairs balcony and changing area. The latter two options would have resulted in loss of revenue of approximately $25,000 per annum, as well as reducing casual recreational opportunities which are currently available.
The "stand-alone" facility is the preferred option and necessitates the building of a 576 m2 addition over two levels along the eastern aspect of the existing stadium complex. The facility will provide for weights/circuit training downstairs and aerobics upstairs. Both areas would be serviced from the existing stadium and proposed pool reception areas (refer building plan included with the Project Brief).
The estimated cost of these additions including equipment is $555,000.
Concerns previously raised by the fitness industry in submissions to the Council have been noted. However, Councillors should be aware that the proposed additions are a significant distance from other commercial operations and are situated within a large residential catchment area (estimated at 30,000 people) which is presently not well serviced in terms of indoor fitness/recreation facilities.
The nearest facilities are the Wharenui Recreation Centre and pool, World Gym in Moorhouse Avenue and the Powerhouse Gym in Waltham Road. All of these facilities are approximately 3 to 3.5 kilometres from Pioneer Stadium, and the Better Bodies Gym in Hornby is in excess of 5 kilometres away.
The financial impact analysis of the proposed aerobics/fitness area, both in terms of operational benefits and capital returns, is attached to this report. In short, there is an estimated operating surplus in year one of $62,367 rising to $130,650 in year six. Capital payback is estimated at 6 to 7 years.
Administration Area
With the attachment of the pool building to the stadium and the development of a common foyer for both facilities, it was considered appropriate to review the existing stadium administration/reception area, taking into account that the pool would require similar facilities.
It is proposed that the stadium administration area service both facilities, although a separate reception area is still required for pool patrons and foyer security. This combined administration area would avoid unnecessary duplication of facilities yet still allow the facilities to operate independently should the need arise.
Public access is required from the foyer to a small lounge which serves as a contact point for administration staff and the facility manager, as well as a facility for recreation programme enrolments. The existing staff room will be enlarged and upgraded to service staff from all facilities.
The estimated cost of the alterations is $91,000. Officers acknowledge that the existing stadium administration facilities could suffice on a temporary basis, but this would be with some inconvenience to staff and patrons. There is also concern about the disruption caused if the building alterations are delayed until after completion of the pool development.
FUNDING SUMMARY
(Net including provision for inflation)
| FACILITY | FUNDING PROVIDED |
ADDITIONAL FUNDING REQUIRED | ||||
| 1997/98 | 1998/99 | 99/2000 | 2000/01 | |||
| a | Fitness/Leisure Pool | $3,697,000 | $920,000 | |||
| (Includes additional car parking) | ||||||
| b | Creche | $282,000 | $101,000 | |||
| c | Pioneer Stadium | |||||
| i | Fire Safety & Access | $442,500 | ||||
| ii | Aerobics/Fitness area | $255,000 | $300,000 | |||
| iii | Administration area | $91,000 | ||||
| iv | Storage areas | $83,000 | ||||
| v | Climbing Room | $433,000 | ||||
| Totals | $3,979,000 | $798,500 | $1,311,000 | $83,000 | $433,000 |
Note: With development of the pool attached to the stadium, the fire safety and access requirements are required to be undertaken at the same time. This would also apply if any internal alterations to the stadium were undertaken without the pool development. This work should be undertaken during the December/January period.
The aerobics/fitness area is seen as an essential component to the development of a multi purpose community recreation facility.
Note: Preferable for alterations to be undertaken at time of pool development.
& Overall cost of alterations/improvements to the Pioneer Sports Stadium suggests these developments proceed as funding becomes available.
PROGRAMME
Following acceptance of the Project Brief by the Projects and Property Committee, it is proposed to:
1. Undertake preliminary design studies and prepare the Design Report.
2. Advise the Spreydon/Heathcote Community Board and residents in the vicinity of the Pioneer Sports Stadium of the latest proposals.
3. Apply for a resource consent.
4. Prepare tender and construction documentation, and call tenders for acceptance by the Council.
5. Undertake the construction.
It is anticipated that construction would commence in September 1997 with a completion date of December 1998.
Note: The effect of this programme allows some additional funding to be provided in the year 1998/99 as shown in the funding summary above.
Major Project Co-ordinator's
Recommendation: 1. That the Project Brief for Pioneer Sports Stadium be approved.
2. That in respect of the pool complex, the 1996/97 budget figure of $3,697,000 be increased by $920,000 and that this increased figure be included in the 1997/98 Annual Plan.
3. That provision of $442,500 be made in the 1997/98 Annual Plan for the upgrading of the existing stadium to meet the mandatory requirements of the New Zealand Building Code.
4. That provision of $555,000 be made in the 1997/98 Annual Plan for the design and construction of an aerobics/weight training facility.
5. That provision of $91,000 be made in the 1997/98 Annual Plan for the administration area.
6. That in respect of the design and construction of a creche, the 1996/97 budget figure of $282,000 be increased by $101,000 and that this increased figure be included in the 1997/98 Annual Plan.
7. That the consultant team proceeds with the development of the concept design for inclusion in the Design Report.
8. That the Spreydon/Heathcote Community Board and residents in the vicinity of Pioneer Sports Stadium be advised of the latest proposals prior to the application for a resource consent.
The foregoing recommendations were reconsidered by the Committee at its meeting on Monday 10 March. Most members of the Committee were of the opinion that an additional two lanes should be provided in the swimming pool, to provide increased capacity for recreational swimmers in particular. The Major Projects Co-ordinator has been asked to prepare a revised estimate of the costs involved in providing the two additional lanes proposed. In the Committee's opinion, consideration of the foregoing recommendations should be deferred until this revised estimate is available.
Recommendation: That the foregoing recommendations be deferred pending a report by the Major Projects Co-ordinator on the estimated cost of increasing the size of the building envelope to allow the installation of two additional swimming lanes, to provide additional capacity to meet the anticipated demand from recreational swimmers in particular.
PART B - ITEMS DEALT WITH BY THE COMMITTEE AND
REPORTED FOR INFORMATION ONLY
3. DRAFT SUB-BUDGETS FOR 1997/98 RR 4637
The Committee gave consideration to the draft budgets for the outputs the Committee monitors together with the schedules attached to the agenda, making the following requests and amendments:
CHRISTCHURCH PIER
It was resolved that the draft provision for the operating costs associated with the Christchurch Pier and the bid for the unspecified capital sum for the Pier development terminus be transferred from the property services section to the commercial property section.
CIVIC OFFICES: TUAM STREET
It was resolved that the following items be deleted from the bids for the unspecified capital sums not included in the budget:
The Committee further resolved that the Property Manager be requested to prepare a full report on total expenditure to date on the refurbishment/alteration of the Civic Offices over the last five years and the justification or otherwise for further ongoing expenditure compared with the acquisition/construction of alternative accommodation on another site.
NORTH NEW BRIGHTON COMMUNITY CENTRE REDEVELOPMENT
Draft provision was added for this project as follows, with a priority 4 ranking:
CENTRAL LIBRARY LIFTS UPGRADING
The draft provision of $150,000 for this item was reduced to $100,000, on the basis that the goods lift only would be upgraded utilising this sum, with further provision being made in a subsequent year for the upgrading of the library passenger lift.
The Committee also resolved:
PIONEER POOL
That draft provision for the following additional items be included, with the priorities shown:
| Items | Year | Amount | Priority |
| Pool Building Itself | 1998/99 | $920,000 | 1 |
| Mandatory Upgrading of Existing Stadium | 1997/98 | $442,500 | 1 |
| Aerobics Weight-Training Area | 1997/98 | $255,000 | 2 |
| Aerobics Weight-Training Area | 1998/99 | $300,000 | 2 |
| Administration Area | 1998/99 | $91,000 | 1 |
| Creche (LACSU) | 1997/98 | $100,000 | 1 |
CENTENNIAL POOL
That draft provision also be made for the following additional items:
| Items | Year | Amount | Priority |
| Cover Pool Shortfall | 1997/98 | $650,250 | 1 |
| Further Development of the open space along Oxford Terrace (Parks) | 1998/99 | $150,000 | 2 |
| Development of Oxford Terrace and the River Embankment | 1998/99 | $230,000 | 2 |
(The Committee did not assign a priority ranking to any of the additional pool costs listed above. The rankings shown are the Major Project Manager's recommendations.)
QEII WAVE POOL
That the QEII wave pool project be deferred pending further consideration of the pool enhancement programme.
BIDS FOR UNSPECIFIED SUMS
The Committee prioritised the bids listed in Schedule 1C as follows:
| Details | Amount | Priority |
| Christchurch Pier Development Terminus (Stage 2 & 3) | $2,350,000 | 1 |
| Bromley Community car park - sealing | $30,000 | 4 |
| St Mary's Chapel (Colombo Street) - structural strengthening | $100,000 | 1 |
| St Mary's Chapel (Colombo Street) - new toilets/ kitchen extension | $160,000 | 1 |
| St Mary's Chapel (Colombo Street) - rewiring/new heating | $20,000 | 1 |
| 1998/99 - St Mary's Chapel (Colombo Street) - fire protection/sprinklers | $30,000 | 1 |
| North New Brighton Community Centre Redevelopment - 1997/98 | $150,000 | 4 |
| North New Brighton Community Centre Redevelopment 1998/99 | $150,000 | 4 |
| Canterbury Provincial Council Building (see capital budget) | $280,000 | 1 |
| Central Library Lift(s) Upgrade (Two) | $150,000 | 2 |
| Civic Offices - Maori Artwork/Signage | $50,000 | 3 |
| Civic Offices - Security (subject to report) | $100,000 | 1 |
| Civic Offices - Earthquake Strengthening (subject to report) | $650,000 | 2 |
4. RESOLUTION TO EXCLUDE THE PUBLIC
The Committee resolved that the draft resolution to exclude the public set out on page 22 of the agenda be adopted.
CONSIDERED THIS 13TH DAY OF MARCH 1997
MAYOR