28. 5. 97

PROJECTS AND PROPERTY COMMITTEE

16 MAY 1997

A meeting of the Projects and Property Committee

was held on Friday 16 May 1997 at 2.00 pm

PRESENT: Councillor Ron Wright (Chairman),

The Mayor,

Councillors Oscar Alpers, Carole Anderton,

Morgan Fahey, Ishwar Ganda, Ian Howell,

Alister James, Denis O'Rourke and Gail Sheriff.

APOLOGY: An apology for lateness was received and from Councillor Alister James who arrived at 2.25 pm, and who was present for all clauses.

The Mayor left the meeting at 2.45 pm, during the discussion on clause 1 and was not present for the remaining items.

Councillors Alpers, Fahey and Ganda left the meeting at 3.50 pm, and were present for clauses 1 and 2.1 only.

 

The Committee reports that:

PART A - MATTERS REQUIRING A COUNCIL DECISION

1. WESTPACTRUST CENTRE - ICE FLOOR RR 5231

The Committee considered the following report by the Major Projects Co-ordinator:

"Officer responsible	Author
Major Projects Co-ordinator	Andrew Robinson
Corporate Plan Output: Corporate Plan, Volume 2, Capital Output 8.8.2

The purpose of this report is to seek direction from the Projects & Property Committee as to whether or not the project team should explore the technical feasibility and prepare a preliminary design and costings for `permanent ice floor' capability at the WestpacTrust Centre.

INTRODUCTION

The Refined Technical Design Brief adopted by the Council in April 1996 indicates the requirement for a fully multi-purpose and flexible facility. More specifically a wide range of activities and events are specified to be accommodated including ice spectaculars, Disney-style productions, ice hockey, and family ice events. The means of providing for these events was not specified in the Design Brief, but it could be assumed that the intention was to provide a temporary ice mat for these types of events, given that there is presently no provision for a permanent ice floor.

There are essentially two methods of providing ice on the floor at the WestpacTrust Centre. These are:

(i) A temporary ice mat and refrigeration plant

An ice mat can be temporarily laid on any surface and, in the case of the WestpacTrust Centre it can be laid on the concrete arena floor. An ice mat has been used in Hagley Park (under a marquee) for Torvill and Dean in 1987 and 1991. The ice mat incorporates water barriers, polystyrene insulation and cooling pipes. The surface is flooded and frozen forming an ice surface after connecting the cooling pipes to a refrigeration plant.

(ii) A permanent ice floor and refrigeration plant

A permanent ice floor incorporates cooling pipes cast permanently into the concrete arena floor slab with insulation and vapour barrier layers below to prevent ground movement through potential freeze-thaw action. A refrigeration plant can be connected to the cooling pipes and then the floor is flooded and frozen forming an ice surface.

The refrigeration plant in each of the above options can either be fixed plant requiring permanent housing or temporary (`clip-on') plant which could be housed in a shipping container, or similar. Discussions and investigations have focussed on the option of `clip-on' plant which could be transported and utilised in other similar venues. The `clip-on' plant is considered most cost effective and provides maximum flexibility.

DISCUSSION OF ICE FLOOR REPORTS

Three reports on the ice floor proposal have been prepared since February 1997. The reports have been prepared by the Winter Games Promotion Inc, Deloitte, Touche, Tohmatsu and NCC (NZ) Ltd. These are summarised as follows:

(Mr Chris Carswell (Deloitte, Touche, Tohmatsu) and Mr Mike Kelly (NCC (NZ) Ltd) will present their respective reports at the meeting.)

1. Winter Games Promotion Inc Report

In February 1997 a report was received from Winter Games Promotion Inc which co-ordinated the efforts of the Ice Sports Federations in an endeavour to convince the Council of the desirability of providing refrigeration delivery systems in the floor of the WestpacTrust Centre at the time of construction. This report followed discussions with Council staff and the venue manager, NCC (NZ)) Ltd and covered the history of ice sports in New Zealand (ice hockey, ice skating and curling), the different types of ice floor and refrigeration equipment, estimates of cost and potential funding opportunities and the potential types of use for an ice floor.

The report concluded by saying that an infloor refrigerant system (permanent ice floor) was considered most desirable on the basis of the flexibility it offered to the venue and the people of Christchurch. Winter Games Promotion Inc and the Ice Sports Federation believe that with Christchurch's support of ice events and its history of ice sporting prowess, the provision of a permanent ice floor will enhance the facility and improve the marketability of the WestpacTrust Centre.

Winter Games Promotion Inc and the Ice Sports Federation finished by saying:

"We respectfully submit that:

The Council accept that infloor refrigerant delivery systems are the preferred option in the WestpacTrust Centre and to that end allow:

(a) Detailed costings of the systems to be prepared, and

(b) If (a) is acceptable formal proposals to the International Sport bodies for funding be made."

2. Deloitte, Touche, Tohmatsu Report

(separately circulated - restricted circulation)

In February 1997, the Christchurch City Council commissioned Deloittes to carry out a study and to `recommend to the Christchurch City Council whether or not to provide permanent ice floor capability in the WestpacTrust Centre'. The Deloittes report focuses on a financial analysis of the issue.

Mr Chris Carswell, Partner at Deloitte, Touche, Tohmatsu, will present and summarise his report and findings to the Committee.

3. NCC (New Zealand) Ltd Report

(separately circulated - restricted circulation)

Following receipt of the Deloittes report in April 1997, NCC (NZ) Ltd prepared its own report demonstrating the need to provide a permanent ice floor from its point of view. NCC (NZ) Ltd place a greater emphasis than Deloittes on public access, community value (economic impact) and competitive positioning as well as carrying out a financial analysis based on their own market projections.

Mr Mike Kelly, NCC (NZ) Ltd will present and summarise his report and findings to the Committee.

INDICATIVE COSTS AND PROGRAMME IMPLICATIONS

There have been varying estimates of the cost of providing a permanent ice floor. These estimates can not be confirmed until such time as further technical feasibility is undertaken and a preliminary design prepared on which firmer cost estimates can be made.

Similarly, the programme implications cannot be accurately determined until such time as the preliminary design is undertaken. However, an initial assessment has been made by the Project Manager, Octa Associates Ltd advising that if a permanent ice floor was to be included in the contract works, the completion of the contract could be delayed by 4-6 weeks.

Based on the above and to give an indication to Councillors of the expected costs involved with this change in the scope of works, the approximate cost estimates are as follows:

In floor refrigerant pipes, insulation vapour barriers etc $350,000

Refrigeration Plant (`Clip-on') $300,000

Professional Fees $ 50,000

Extension to contract $ 85,000

$785,000 approx

Note: The purchase of the `clip-on' refrigeration plant could be deferred until some later date and that plant could be hired (albeit at a higher operating cost). The infloor refrigerant pipes however must be cast into the main arena slab as construction proceeds, or else the opportunity is missed.

Subject to the direction given by the Committee and following technical feasibility and detailed costings, the project team would report back to the Committee on their findings before proceeding further with the ice floor implementation. The $785,000 is an estimate only at this stage and the work required of the consultants would more accurately define the costs of the ice floor and the programme implications

PROJECT BUDGET

Set out below is a brief explanation of the current financial status of the project as at 8 May 1997.

The current project budget (approved by Council on 23 April 1997) is $32,958,702.

Confirmed Variation Orders issued to date have resulted in a net deduction of $161,058 from Luney's contract, resulting in the construction contingency being increased to $661,058. The project contingency has been reduced to $180,000 to allow for the increase in corporate box numbers (a project scope change). The contingencies (as at 8 May 1997) are therefore as follows:

	Current 8 May 1997	Budget November 1996
Construction Contingency Project Contingency	$661,058 $180,000 $841,058 (2.55% of $32.9million)	$500,000 $300,000 $800,000 (2.47% of $32.4million)

However, there are a number of Variation Price Requests currently amounting to a net contract addition of approximately $75,923, thus potentially reducing the total contingency to $765,135 (2.32% of $32.9m).

In order to fully understand the financial position of the project, Councillors are reminded that there is still a total amount of $4.25m of unresolved furniture, fittings and equipment (FF&E) items and provisional sums in the project budget. While every endeavour will be made to resolve these outstanding items within the allocated budget, these are the two main areas in the project budget where costs are not yet fixed. Further work by the project team is required in these areas.

In summary, the total contingency remains at a little over 2% and there is still a budget sum of $4.25m relating to FF&E and provisional sums where costs have not yet been clearly defined.

SUMMARY

The Deloittes report focuses largely on the financial analysis of the ice floor issue. The figures presented by Deloittes demonstrate that a permanent ice floor with associated plant is the most cost effective option provided there are two shows per annum (on a sustainable basis). The frequency of shows is a critical variable influencing the outcome of the Deloittes study.

NCC (NZ) Ltd believe that there is a sustainable market for ice shows in Christchurch, and, in addition, that there is a market for ice sports events which would be unachievable without permanent ice. Further, NCC (NZ) Ltd state that the permanent ice option allows wider community access to the venue and competitive positioning in the sport and entertainment marketplace and subsequent economic benefits to the local community.

The total contingency as at 8 May 1997 remains at a little over 2% and the cost of FF&E items and unresolved provisional sums, budgeted at $4.25m, have yet to be fixed.

Given the varying opinions expressed in the above reports and the current financial position we seek a direction from the Projects and Property Committee."

Presentations in support of their reports were made by Chris Carswell of Deloitte, Touche, Tohmatsu and Mike Kelly of NCC (NZ) Ltd.

Members of the Committee were supportive of the wider view taken by NCC (NZ) Ltd, and were of the opinion that this report amply demonstrated a need for the provision of a permanent ice floor, bearing in mind the long term benefits for the Christchurch economy, the ability to use such a facility for ice hockey, curling and similar events in addition to traditional ice shows, and the competitive advantage which would be gained, bearing in mind that Christchurch would then have the only convention centre in Australasia with a permanent ice floor.

The Committee requested the Leisure and Community Services Manager to report direct to the present Council meeting on the likely use of such a facility for a range of family and recreational events.

Recommendation: That the officers be requested to prepare a detailed programme for an ice floor with a clip-on refrigeration unit for approval by the Council.

PART B - REPORTS FOR INFORMATION

2. MONTHLY REPORT

The Committee received progress reports on the following projects:

2.1 WestpacTrust Centre RR 5244

2.2 Christchurch Convention Centre RR 5240

(A separate resolution by the Committee giving approval to the engagement of project consultants to prepare sketch plans and estimates for items identified by technical users of this facility appears in clause 4.)

2.3 Centennial Pool Redevelopment RR 5247

2.4 Pioneer Sports Stadium

(Pool, Stadium Additions and Alterations, Creche) RR 5245

(Note: Councillor Howell retired from the meeting for clause 2.3, and took no part in the discussion or voting thereon.)

3. PURCHASE AND LEASE OF PROPERTIES

APPROVED UNDER DELEGATED AUTHORITY RR 4973

The Committee received a schedule listing properties purchased or leased by the Property Manager under delegated authority for the period to 31 March 1997.

PART C - REPORT ON DELEGATED DECISIONS

TAKEN BY THE COMMITTEE

4. CHRISTCHURCH CONVENTION CENTRE:

ENGAGEMENT OF CONSULTANTS

The Committee resolved to grant approval for the engagement of project consultants at a total cost of $4,900 excluding GST, to prepare sketch plans and estimates for the provision of items identified by the technical users of the Convention Centre.

5. 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.

CONSIDERED THIS 28TH DAY OF MAY 1997

MAYOR

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