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Christchurch City Council
PROJECTS AND PROPERTY COMMITTEE
AGENDA
FRIDAY 13 FEBRUARY 1998
AT 2.00 PM
IN THE NO 2 COMMITTEE ROOM, CIVIC OFFICES
| Committee: |
Councillor Ron Wright (Chairman), The Mayor, Ms Vicki Buck, Councillors Oscar Alpers, Carole Anderton, Morgan Fahey, Ishwar Ganda, Ian Howell, Alister James, Denis O'Rourke and Gail Sheriff. |
| Principal Adviser | Committee Secretary |
| Jim Williamson | Max Robertson |
| Telephone: 371-1607 | Telephone: 371-1533 |
| Fax: 371-1811 | Fax: 371-1786 |
PART A - MATTERS REQUIRING A COUNCIL DECISION
PART B - REPORTS FOR INFORMATION
PART C - DELEGATED DECISIONS
INDEX
| PART C | 1. | APOLOGIES | |
| PART B | 2. | DEPUTATIONS BY APPOINTMENT | |
| PART A | 3. | PIER TERMINUS PROPOSAL: GREEN PASTURES FOUNDATION PETITION | RR 7013 |
| PART A | 4. | NEW BRIGHTON PIER: STAGES 2 AND 3 | RR 7041 |
| PART A | 5. | DISPOSAL OF SURPLUS
PROPERTY - CNR MADRAS/WINTON STREET, ST ALBANS - 500 WAIRAKEI ROAD - CNR WAKEFIELD/WIGGINS STREET, SUMNER |
RR 7011 |
| PART B | 6. | CENTENNIAL POOL REDEVELOPMENT MONTHLY REPORT | RR 7031 |
| PART B | 7. | PIONEER SPORTS STADIUM (Pool, Stadium Additions and Alterations, Creche) MONTHLY REPORT | RR 7032 |
| PART B | 8. | WESTPACTRUST CENTRE MONTHLY REPORT | RR 7045 |
| PART B | 9. | DRAFT SUB-BUDGETS FOR 1998/99 | RR 7039 |
| PART C | 10. | RESOLUTION TO EXCLUDE THE PUBLIC |
1. APOLOGIES
2. DEPUTATIONS BY APPOINTMENT
NEW BRIGHTON PIER TERMINUS BUILDING
Separate submissions on this topic will be made by:
| 3. | PIER TERMINUS PROPOSAL: GREEN PASTURES FOUNDATION PETITION | RR 7013 |
| Officer responsible | Author |
| Property Manager | Gilbert van Schaijik, Property Projects Manager |
| Corporate Plan Output: Enhancement projects New Brighton Pier and information and Advice. | |
The purpose of this report is to present to the Council, in line with the Council resolution of December 1997, the alternative proposal for a Pier Terminus building, as presented by the Green Pastures Foundation.
BACKGROUND
Green Pastures Foundation Incorporated is an organisation currently operating in the New Brighton area, which is set up as an incorporated charitable trust operated by the Neale family. The trust deed provides that all profits from trading, rents etc, are given to local international charities such as Christchurch City Mission, World Vision, etc. The Neale family also owns and operates the Seafield School of English in New Brighton. The Green Pastures Foundation, through Mr William Neale, has presented, on several occasions, this proposal to construct an alternative pier terminus building on the foreshore attached to the pier, which will, among other things, provide accommodation for the Seafield School of English. On no fewer than three previous occasions, the Pier Subcommittee, the Projects and Property Committee, and the Burwood/Pegasus Community Board have heard submissions by Mr Neale and have opted to decline the Green Pastures Foundation proposal.
Mr Neale has persisted and has now presented the proposal to the Council once more, along with a petition. In accordance with the resolution of the Council in December, the matter is brought before the Council for consideration.
DETAILS OF THE PROPOSAL
The Green Pastures Foundation has employed the services of architect C J Corsbie, of Opus International Consultants, who has presented an alternative design for the pier terminus building. At no stage has the architect consulted with the Property Projects Manager or library staff in relation to a brief for the building or the requirements of this unique location.
This proposal is very much at the conceptual stage and has been for well over 12 months now. Detailed drawings have not been worked through with any of the Council's staff whatsoever.
FINANCIAL CONSIDERATIONS
The proposal contains one page of brief calculations of costs and income. The proposed building has a gross floor area of 2,591m2, and is estimated to cost $3,456,394. This was proposed to be funded by $2,000,000 from the Christchurch City Council and the balance from "Green Pastures Foundation and investors". Rental income has been assessed at $410,410, less outgoings of ground rent to the Council of $28,000 per annum and $14,000 per annum on exterior maintenance and management, leaving a net annual income of $368,410. This represents a 10.66% return on investment. Proposed tenancies include the Seafield School of English, the New Brighton Library, various food outlets including a cafÈ, and other retailers.
There appears to be no provision for the construction of the ramps and landscaping which will still need to be constructed.
CONSIDERATION OF THE PROPOSAL
I have been asked to provide my professional opinion on the presentation made by Green Pastures Foundation. I give this on the basis of my extensive involvement in the development proposal being considered by the Council. Councillors will be aware that I have been extensively involved in the development of the pier terminus building from the original concept and therefore have an intimate knowledge of all of the detail involved in this development, including costs, income, the market and a number of the other factors for consideration.
Whilst the Green Pastures Foundation proposal has perhaps some merit in some areas, there are also many areas which require a significant amount of further research and development. It is important to point out that the proposal still requires the Council to provide at least $2,000,000 of capital funds for the building alone, plus all of the fitout required for the library as is common with the Council's own proposal. The costs of the development contained in the Green Pastures Foundation proposal are estimates only and no evidence is supplied as to any detailed cost plans or costings that may have been prepared by qualified quantity surveyors. A detailed development feasibility statement has not been sighted. Provision for space for the library is based on the Green Pastures Foundation's limited knowledge of library requirements. Based on the work that has been completed by myself and library staff, in conjunction with the Council appointed consultants, the space provision and other specific requirements for the library are not detailed and the area would not meet the library's requirements.
The leasing arrangements proposed would not meet the Council's immediate criteria and the details of the leasing arrangements are sketchy. The proposal is silent on the issue of a suitable structure for this investment or joint venture arrangement, and there have been no discussions with either party in relation to such a joint venture arrangement. The concept has not been tested for technical feasibility, including issues of underlying title, resource consents and the like.
SUMMARY
Whilst the petition has a significant number of signatures in support, the detail required to bring such a proposal to fruition is very limited. Before the Council was to get involved in any way with such an arrangement, a significant amount of work would be required, both in terms of setting out the structure for a joint venture development and, indeed, confirming the detail required for completion of a successful development. The proposal contains no suggestion how the Council might secure its investment in the development for the long-term and its feasibility remains unproven.
A significant amount of additional work would be required in order to bring such a joint venture development to fruition. This would cause significant delays in completion of a terminal building for New Brighton. It is my estimate that this would delay that project by at least 12 months before construction would commence.
The Council has already resolved to itself construct a terminus building in New Brighton, which will accommodate the library and other retail tenants. The resolution was conditional only upon the presentation of a suitable plan for the library to be contained in the building.
A full copy of the Green Pastures Foundation proposal is attached for reference. On the balance of the issues discussed and especially that of timing, and in consideration of the previous Council resolutions and progress on the terminus building, supporting this proposal would be counter-productive to the positive momentum established in the area since the pier opened in November 1997. Should the Council be of a mind to progress discussions with the Green Pastures Foundation, then it should do so with a degree of caution, acknowledging not only the delay in the construction of the terminus building which will follow, but also the risk that the joint venture may not come to fruition. Having analysed the proposal as presented, and given the detail to hand, I am therefore unable to support the Council's involvement in this proposal and am therefore recommending that the Council declines the offer of Green Pastures Foundation.
Attached is a letter from the New Brighton Mainstreet group supporting the terminal building proposed by the Council.
| Recommendation: |
|
| Chairman's Recommendation: | That the above recommendation be adopted. |
4. NEW BRIGHTON PIER: STAGES 2 AND 3 RR 7041
| Officer responsible | Author |
| Property Manager | Property Projects Manager |
| Corporate Plan Output: Major Project New Brighton Pier and Foreshore Development | |
The purpose of this report is to bring to the Council the development plans for Stages 2 and 3 of the New Brighton Pier, being the ramps and terminus building, and to seek the approval of the Council to proceed with the development in accordance with the plans presented to this meeting.
1. INTRODUCTION
Councillors will be aware that the New Brighton Pier was officially opened on 1 November 1997. Significant numbers of people have enjoyed this facility so far. Visitor numbers have been estimated to be in excess of 100,000 people. Access to the pier is presently via temporary steps and no disabled access is currently available.
2. COUNCIL RESOLUTIONS TO DATE
The issue of the terminus building was previously the subject of a report to the Council in November 1996, when the Council resolved:
"To confirm its commitment to the construction of a terminus building, ramps and accessways to the pier, subject to:
A further report was presented to the 24 June 1997 meeting of the Projects and Property Committee, proposing to locate the New Brighton Library in the Pier terminus building.
This report was also presented to the Community Services Committee, which had recommended:
The Projects and Property Committee recommended to the Council that it support in principle the proposal to locate a new and unique library facility in the pier terminus building, such facility to make the fullest possible use of new and emerging technology to ensure that it is exciting, interactive and dynamic. This latter recommendation by the Projects and Property Committee was adopted by the Council with the further proviso that the complex be designed in such a way as to maximise its ability to attract people from other parts of the city to New Brighton.
3. PROGRESS ON DESIGN
The building design work has progressed with the consultants, who have prepared a presentation for this meeting. Features of the building include a library, consisting of approximately 950m2 of space over the ground floor and a mezzanine upper level the same height as the pier. This component of the building occupies approximately two-thirds of the building's area, with the remaining third being available as commercial retail space on the ground floor and the upper floor for a licensed cafe establishment.
Architectural consultants, Barclay Hodgkins, have been involved in the design process from the outset and have been working solidly with both the author and the library staff to design a concept which will meet the Council's requirements for a vibrant, exciting and modern library in this building.
4. LIBRARIES MANAGER'S COMMENTS
The Libraries Manager comments as follows:
"New Brighton Library on the Pier
Placing the New Brighton Library within the Pier Terminus building has provided the opportunity to extend and develop the range of services to customers to meet the anticipated needs of the 21st century. The library will offer services and an environment which will enhance its role as a focal social point for the local community. The elegant, vibrant building in its seaside locality will provide the ambience for activities ranging from browsing and borrowing to interactive technology and displays.
What will be different about New Brighton Library from other community libraries? Firstly, the books will be grouped together in broad subject categories, similar to the layout in a bookshop. Customers will be able to find the landscaping books alongside gardening and books on plants, or the books on computers beside those on software. Within these broad categories the materials will still be shelved according to the Dewey system so that specific items can be found by using the on-line database. This easy to use arrangement will be enhanced by comfortable seating aesthetically arranged and shelving setups that permit more titles being displayed face-out.
The sound and vision services on offer will include state-of-the-art listening posts where customers can relax and listen to a selection of music without interruption to others. It is also planned for televisions to be available for selective viewing of video and live television.
Local history and the environment are strong interests for the New Brighton community and the library holds significant material relating to the area. A special space for displays, relevant books and, increasingly, digital and electronic resources will be a feature of the ground floor. Christchurch City Council information will be available alongside this area and will again use media such as static displays and incorporate interactive electronic access as these become available through the implementation of the Customer Services project.
Information technology will be an integral part of the library. Some computers (express terminals) will be dedicated to accessing the library catalogue using a World Wide Web "look" interface; others (public information terminals) will have the software capability to "surf the net". Computers for children will have software offering a range of info-tainment including access to Disney and Garfield sites. Other developments under investigation include software capable of translating selected data into various languages, a feature with immense appeal in an area that is becoming popular with tourists, a large print feature for sight-impaired, and voice recognition software for the physically disabled.
A feature of the buildings is the Media Centre which will be available both for individual users and for community group use. A suite of 10 computers will be available with access to word processing, internet, e-mail and a growing suite of electronic resources. Group use might be education, for both adult and young people, the development of community networks, or training for people in information literacy. Video facilities will also be available leading possibly in the future to interactive communication or video conferencing.
There will be a multi-purpose space available, known as the PAD (derived from "play and display"). Community activities, children's stories and entertainment, interactive displays, exhibitions, reading groups could be some of the uses for this innovative area. Both the PAD and the Media Centre will be able to be separated off from the library and used out of opening hours.
The new library will be a significant improvement to the services provided by the Council in the New Brighton area and its location at the land end of the pier will significantly raise the profile of the library. Business is anticipated to increase as a result. Currently the library is open 43.5 hours per week over 5.5 days of the week. However, its location will require longer hours of opening in line with the expected recreational use of the pier and associated retail facilities. Flexibility will be needed initially in determining the best hours to suit both existing customers and the visitor numbers to the area. Preliminary work to date suggests that seasonal hours would work well, with longer evening hours during the summer months of October/November to March.
Consultation with customers and business in the area is still to occur but planning at this stage would see seven day opening with core hours of eight per day Monday to Friday and six per day on Saturday and Sunday. Summer hours would increase this to 10 and eight hours per day respectively.
In addition to opening longer hours, services will be delivered over two floors which will require an additional service point upstairs. Staff numbers to operate the facility will be between 10 to 12 FTE depending on the hours of opening, comprising six full-time staff and the remainder being part-time and on call.
In summary, the New Brighton Library will offer longer opening hours, enhanced electronic access to information and recreation, public spaces for display and activities, easy to browse books and other resources, listening and viewing facilities, Council access point, wonderful views of the sea, pier and foreshore and an internal decor which is alive and exciting with a sense of light, space and openness. A truly wonderful community place for recreation and information - a place for all of Christchurch and its visitors to enjoy, rain or shine."
5. OTHER TENANCIES
A number of firm expressions of interest have been received from potential cafe operators and other retailers. We are now in the process of obtaining from these people details of their proposals so that a rational and well-structured process for selection can be worked through. The selection of an experienced and high quality operator is critical to the success of the cafÈ component of the building. The success of the library and the cafÈ combined will give the best result for the community and the Council. Other interests include an ice-cream and confectionery outlet with interest also received from surfware retailers and the like.
The required pre-leasing commitment of 60% is met by the leasing of the library area. In order to make some further progress in relation to the tenancies, it is recommended that approval be granted for construction of the building to commence. In this way tenants will have the necessary degree of certainty that the project will proceed and increase confidence in the Council's future plans for the area. The Council's leasing agents for this project, H G Livingstone Ltd, have confirmed that this is normal practice in this market and that they are confident of leasing the building prior to the construction being completed. I concur with this advice.
6. COST PLAN AND BUDGET
The original Council budget for this project was as follows:
| Pier Stage 2 (ramps and stair) | $450,000 |
| Pier Stage 3 (building shell) | $2,350,000 |
| New Brighton Library 1997/98 (land purchase) | $300,000 |
| New Brighton Library new building 1998/99 | $800,000 |
| New Brighton Library new building 1999/2000 | $440,000 |
| Total | $4,340,000 |
Note: this budget excludes any provision for fitout of the building.
To date, the Council has utilised the $300,000 land purchase provision to secure a site for the new Parklands Library to be developed some five years hence. As part of the financial restructuring of the library enhancement capital programme, an alternative total library enhancement budget was reworked, allocating more money for Spreydon and Fendalton Libraries and less for New Brighton. This was done in anticipation of savings in the construction of the new library originally planned for New Brighton.
7. CURRENT COST PLAN
The Council's quantity surveyors, Rawlinson and Co Ltd, have prepared a cost plan for construction of the new facility incorporating the library.
In summary, the cost plan is as follows:
| Stage 2 (ramps and stairs) | $450,000 |
| Stage 3 (building cost shell) | $2,057,000 |
| Fitout (being air conditioning, floor coverings, electrical data and fire sprinklers) | $443,000 |
| Soft fitout (estimated and including technology) | $550,000 - $600,000 |
| Fees (estimate) | $350,000 |
| Total | $3,900,000 |
It has become apparent during the process of developing the library requirements that in order to produce the library concept which the Council desired, additional floor area was required. This is largely due to the more spacious configuration of the library shelves, reading areas and technology provisions. In addition to the extra floor area required, there is additional cost in providing the technology, furniture and fittings which are all necessary to create the ambience of an exciting and vibrant library space. Space is also provided in this building which can be utilised as public meeting space, which was recommended by the local community board.
Provision for the delivery of services traditionally provided through service centres has been made in accordance with the new service delivery strategy adopted by the Council. These additional requirements of the Library, necessary to create the concept which the Council desires, have cost implications which were hitherto not quantified. With the benefit of the work carried out in the last month, the project team has identified and quantified these costs.
The reworking of the total library enhancements budget was therefore somewhat premature. A further review of this plan has been carried out and is being presented to the Council. The result of this rework has resulted in no significant additional funding for the New Brighton Library being required.
The cost plan has still to be thoroughly tested and a value management exercise undertaken. A copy of the detailed cost plan is available for perusal.
The $300,000 provision for land purchase for the New Brighton Library has been reallocated and used for the Parklands Library project. In addition the Council will still have an asset, being the old library in New Brighton, which could be sold in the future. It is suggested that the proceeds from the sale of this building may also be utilised to offset borrowing for the suburban library enhancement project. On the first view, this could be in the vicinity of $200,000.
8. CONSTRUCTION PROGRAMME
The programme for the development of the building from here will be to finalise the working drawings subsequent to the Council's approval, carry out pre-tender construction estimates to confirm the cost plan and call tenders in late March early April and commence construction April 1998.
The construction should be timed so that the ramps will be constructed as the first stage if possible, to remove the need for the temporary access.
The building should be completed before the end of this year.
9. LANDSCAPING
The Parks Unit has begun development of the New Brighton Beach Park and the City Streets Unit has completed its reconstruction of Marine Parade between Hawke and Beresford Streets.
The toilet changing rooms on the northern car park have been largely rebuilt and landscaped. The family area between the playground and the macrocarpa tree has been re-levelled and sown in grass.
Progress from here largely depends on a decision to proceed with the Pier Terminus building as the promenade planting, seating, etc is planned to run up to and around the buildings.
From a Parks perspective the current plans represent a considerable improvement over the previous plans and Green Pastures Foundation proposals. The scale of the building is smaller than previous proposals and with its open glazed nature and unique design complements the beach and park environments as opposed to previous proposals with their larger commercial characters. Essential functions such as the cafe and three beach/park related commercial opportunities provide adequate complementary services without over-commercialising the area and competing with the mall and its commercial functions.
The library function, like the park and beach areas, provides a valuable recreational complement to the area expanding the considerable outdoor recreation opportunities with indoor reading and multi media features. This will ensure that New Brighton Beach Park is unique and has something for everybody and remains a busy vibrant location in all seasons and weathers.
The only outstanding issue to be addressed is the nature and location of car parking to service the library. Competing values of library and park users will need to be debated further as part of the resource consent process for the building, a compromise solution still needs to be developed as part of finalising landscape plans.
A decision to proceed now will ensure completion of this exciting development by next summer.
10. SUMMARY
The plans are well advanced for the terminal building. The concept for he library has been developed. Tenants are being finalised but at this time have not signed any formal leases. The design and concept is being presented at this meeting to provide additional insight into the library concept and demonstrate the living room concept which will make this library something special for Christchurch.
Cost plans have been prepared. These will be constantly measured and challenged so as to ensure the project stays within budget. Funding is tight. However, there have been savings made overall especially as no land has needed to be purchased.
The plans include provision for the library, a retail area, a lift, access ramps and stairs and a superb cafÈ opportunity.
| Recommendation: |
|
| Chairman's Recommendation: | That the above recommendation be adopted. |
| 5. | DISPOSAL OF SURPLUS PROPERTY - CNR MADRAS/WINTON STREET, ST ALBANS - 500 WAIRAKEI ROAD - CNR WAKEFIELD/WIGGINS STREET, SUMNER |
RR 7011 |
| Officer responsible | Author |
| Property Projects Manager | Steve McCarroll, Property Projects Officer |
| Corporate Plan Output: Surplus Property | |
The purpose of this report is to seek the adoption of formal resolutions to dispose of land at the abovementioned locations.
In accordance with the property decision-making flow chart, all Council units have been advised of the proposed disposal of the above properties with no interest expressed in their retention.
1. CNR MADRAS/WINTON STREET, ST ALBANS
History
This property was purchased from Transit New Zealand to facilitate the realignment works for the Madras/Forfar/Winton Street area. A corner splay of 202m2 was used for roading purposes from the site, with the balance area now being available for disposal. A community hall was in existence on the site, but was removed so the roading works could be undertaken.
Property Description
The above property now contains an area of 776m2 and is zoned Living 2 in the Proposed City Plan. The site is vacant.
Current Situation
While the site is located on a relatively busy corner, it is expected that there will be likely interest in the site from prospective developers. There are a number of other redevelopments occurring in this vicinity, with adjoining owner interest being quite possible.
A current market valuation of this site has been requested. The current government valuation is $75,000.
2. 500 WAIRAKEI ROAD
History
This site is an ex-Waimairi District Council owned site that has a registered lease to a joinery business.
The lease is in existence through to September 2001.
Property Description
The property is a rear site, zoned Business 4 in the Proposed City Plan, and is surrounded by other light industrial uses. The land contains an area of 2,233m2.
Current Situation
The existing lessee is an obvious purchaser of this site and has apparently expressed interest in recent times in purchase should the site become available for sale.
Irrespective of this fact, it is considered that the site should be tendered in the normal manner, as the lessee is in a position, as is any other prospective purchaser, to tender an appropriate price.
A current market valuation of the site has been requested. The current government valuation is $110,000.
3. CNR WAKEFIELD/WIGGINS STREET, SUMNER
History
The site is an ex-Council works yard that has not been used for some time and is surplus to operational requirements. The buildings on the yard are currently leased on a month-to-month basis to a local resident for toy-making purposes.
Property Description
The site is a corner site contained within two titles, having a total area of 1,042m2. The site is zoned Living 3 in the Proposed City Plan.
Current Situation
Given the high density zoning, it is considered that the present use as an industrial complex is no longer the highest and best use of the land. This particular site is ripe for subdivision into townhouse units and, given the zoning and development standards, it is likely that the optimum development would be six units.
It is considered that the property will attract a strong buyer demand from developers, who would look to be erecting units which will have an end-product sale price of between $250,000 to $300,000.
This site is a most desirable one from a redevelopment viewpoint, given its extensive frontage, particularly to Wiggins Street, and the aspect that any units erected on the land would have to the north.
Other Interest in Site - Possible Options
For the Committee's information, in September 1997 a letter was received from Redcliffs residents, Pamela and Murray Hills, who were ascertaining the availability of sites in the Sumner area to establish a private pre-school. Mr Hills was advised that this property was likely to become available for sale in the near future, as it had been declared surplus to the Council's operational requirements. Mr Hills, in a telephone conversation with the writer of this report, indicated that he would initially be interested in leasing rather than purchasing the site. Mr and Mrs Hills have been advised in writing that their interest was noted and that the disposal or retention of the site would be a matter for Council decision.
A current market valuation has been undertaken. The current government valuation is $150,000.
4. GENERAL
Proceeds from the sale of surplus property are programmed into the 1997/98 annual plan and budget. The sale of these properties is therefore required to meet this commitment.
5. SECTION 230 RESOLUTIONS
Section 230 resolutions under the Local Government Act have previously been adopted by the Council for the site on the corner of Madras/Winton Street and the Wakefield/Wiggins Street site in Sumner.
In order to comply with the Local Government Act, the Council should adopt the following resolution in relation to the site at 500 Wairakei Road.
Resolution
That pursuant to Section 230 of the Local Government Act 1974, the Council hereby resolves to dispose of the property described in the schedule:
Schedule
All that land situated at 500 Wairakei Road, being Lot 19 DP 24940 contained in Certificate of Title 6C/1342.
| Recommendation: |
|
| Chairman's Recommendation: | That the above recommendation be adopted. |
6. CENTENNIAL POOL REDEVELOPMENT MONTHLY REPORT RR 7031
| Officer responsible | Author |
| Major Projects Co-ordinator | Mark Noonan |
| Corporate Plan Output: Corporate Plan, Volume 2, Capital Output 8.4.61 | |
The purpose of this report is to bring members of the Projects and Property Committee up to date on progress on the Centennial Pool Redevelopment Project.
REPORTING PERIOD ENDING 3 FEBRUARY 1998
PROJECT PHASE: DESIGN DEVELOPMENT
GENERAL PROGRESS:
BUILDING:
Following receipt of an updated estimate on 16 January, Value Management workshops were held on 16 and 28 January and 5 February. These workshops were held to review the cost of the project and identify savings to ensure that the project budget is not exceeded.
Design alterations following these Value Management workshops are programmed to be completed by 10 February. The quantity surveyor will then prepare the schedule of quantities and prepare a pre-tender estimate by 13 March. This estimate should confirm that the tenders received will not be higher than the available budget.
Tenders from the eight pre-qualified tenderers will close on 1 April and a tender evaluation/recommendation report will be made to the 9 April Projects and Property Committee meeting.
Providing Council approval is obtained at the 22 April Council meeting, construction should start on 27 April with a 46 week construction period giving completion in early March 1999.
PARK/CAR PARK:
A publicity leaflet on Elsie Locke Park will be distributed next week, with public submissions closing on 13 March.
APPROVALS:
No approvals are being sought at present.
COST CONTROL:
The monthly financial report is attached.
Chairman's Recommendation: That the information be received.
| 7. | PIONEER SPORTS STADIUM (Pool, Stadium Additions and Alterations, Creche) MONTHLY REPORT | RR 7032 |
| Officer responsible | Author |
| Major Projects Co-ordinator | Mark Noonan |
| Corporate Plan Output: Corporate Plan, Volume 2, Capital Output 8.4.61 | |
The purpose of this report is to bring members of the Projects and Property Committee up to date on progress on the Pioneer Sports Stadium Project.
REPORTING PERIOD ENDING 3 FEBRUARY 1998
PROJECT PHASE: TENDER EVALUATION
Extensive value engineering and consideration of different options to reduce cost has taken place since the tenders were received, and this has lead to the re-design of several significant areas including mechanical, plumbing, creche and wall design in the pool area. This re-design incorporates changes and alternatives suggested by the mechanical sub-contractors, both at tender time and in discussions since.
Now that the re-design work has been completed, the quantity surveyor is currently preparing adjustment schedules which will be priced by the three lowest tenderers - Mainzeal Property and Construction Ltd, Naylor Love Ltd and C Lund and Son.
The revised tenders from these three firms will close on 25 February 1998. A tender evaluation/recommendation report will be made to the 13 March Projects and Property Committee meeting.
Current estimates indicate that the revised tenders will mean that the project can be constructed for the budgeted construction cost. Any deviations from the Project Brief will be noted in the tender evaluation/recommendation report.
Providing Council approval is obtained at the 23 March Council meeting, construction should start on 6 April with a 12 month construction period giving completion in early April 1999.
APPROVALS:
No approvals are being sought at present.
COST CONTROL:
The monthly financial report is attached.
Chairman's Recommendation: That the information be received.
8. WESTPACTRUST CENTRE MONTHLY REPORT RR 7045
| 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 bring members of the Projects and Property Committee up to date on progress on the WestpacTrust Centre Project.
REPORTING PERIOD ENDING 5 FEBRUARY 1998
PROJECT PHASE: CONSTRUCTION:
1. GENERAL
1.1 Construction on site is continuing with progress and achievements since the last report noted as follows:
The erection of the eighth main roof truss is completed (two trusses remain). Roof bracing, purlins and cladding are following behind the main steelwork and the roof is now approximately 40 % complete.
The porte cochere structure is erected.
The mechanical services in the plant rooms of Pods 2 and 3 are well advanced.
The 'first fix' for mechanical and electrical services is generally completed in the back of house and ground floor concourse areas. Strapping and lining is following behind.
Temporary scaffolding has been erected in the arena roof space to allow commencement of the in-ceiling services.
The formation of the swales in the car park has commenced.
1.2 The engineer to the contract has advised that the level of site observation will increase to approximately half a day every day of the week to assist the contractor in quickly resolving any queries so as to avoid delay. This is considered a necessary step, particularly with the number of different subcontractors increasing on site.
1.3 The roading improvements adjacent to the WestpacTrust Centre (Jack Hinton Drive, Twigger Street and Moule Street) are well advanced. Kerb and channels and footpaths are completed. City Streets Unit advise that the expected completion of these works will be in March 1998.
1.4 A further report on FF&E will be presented to the Projects and Property Committee on 13 February (circulated separately). It provides an update on procurement and seeks Committee approval for purchase of various items.
2. OUTSTANDING ISSUES
There are no outstanding issues to report.
3. APPROVALS REQUIRED
Approvals will be sought for FF&E. Please refer 1.4 above.
4. PROGRAMME
Back of house, ground floor concourse areas and siteworks remain on or ahead of programme. However, windy conditions since the last report period (to 21 November 1997) have continued to hamper progress on the critical element, the roof construction. In October 1997, the roof construction was reported as 30 working days behind programme. It is now 45 working days behind programme. The contractor has applied for extensions of time on account of inclement weather (both rain through the winter months and, more recently, high winds), time lost while resolving structural steelwork and mechanical ductwork clashes and also roof gutter details. These claims are currently being assessed in accordance with the provisions of the contract and will be confirmed shortly.
The project team in conjunction with the contractor is preparing a programme to completion taking account of current, pending and future time extension claims and this will be finalised by 20 February 1998. The aim of this 'programme to completion' is to provide a 'set-in-concrete' completion date.
5. COST CONTROL
Reporting period from 3 December 1997 to 30 January 1998.
Variation Orders:
| Total VOs issued to date | 151 | |
| VOs issued during reporting period | 34 | |
| Value of VOs in this period | $2,142 | addition |
Variation Price Requests
| Total VPRs issued to date | 351 | |
| VPRs issued during reporting period | 66 | |
| Value of VPRs in this period | $119,929 | addition |
Building Contract Summary
| Main Building Contract Provision | $27,337,623 | |
| Forecast cost including VOs and VPRs | $27,196,777 | |
| Building Contingency | $140,846 | * |
* Carried forward to monthly financial report
The total contingency as at 3 February 1998 is $496,521.
The Major Project Co-ordinator has requested the Project Manager to prepare a report on the financial status of the project. In particular the report will focus on the cost of VOs and VPRs issued, the cost of VOs and VPRs pending and beyond, the cost arising from time extensions granted and pending, an allowance of settling the final account etc.
The monthly financial report is attached.
Chairman's Recommendation: That the information be received.
9. DRAFT SUB-BUDGETS FOR 1998/99 RR 7039
| Officer responsible | Author |
| Funds and Planning Manager | Paul Melton |
| Corporate Plan Output: Financial Planning Advice Volume I Page 5.4.4 | |
This report brings together the draft budgets for 1998/99. Work on the budgets has been in hand for the last six months and reflects input from a large number of people from throughout the organisation.
The purpose of the report is to highlight the key factors which have influenced the draft budgets. This report also provides information on the recommended approach, the budget format and budget timetable.
The sub-budgets which the Projects and Property Committee is responsible for are:
| * | Major Projects Office |
| * | Property Management |
| * | Commercial Property |
| * | Convention Centre |
| * | WestpacTrust Entertainment Centre |
| * | Swimming Pools |
| * | Art Gallery |
As in previous years the pink pages summarise all the significant changes. In addition this year's pink pages also include a section which highlights efficiency gains and a section which highlights any budget restructuring.
The pink pages have been printed off in a supplementary booklet.
KEY FACTORS INFLUENCING THE OPERATING BUDGET
The Financial Model which was approved as part of the 1997 Plan projected a 3.66% rate increase for 1998/99 (see page 11 of the 1997 Plan).
The draft programme now being brought forward for consideration includes $1.49M of new items and significant cost increases which were not provided for in the Model. It may be possible to achieve the 3.66% rate figure by funding these items from the unspecified operating sum. The inclusion of any additional initiatives would however put upward pressure on the rates figure.
New Committed Items and Significant Cost Increases
The $1.49M of new items and significant cost increases referred to above are summarised below:
* Parklands Library Site $22,200
Although the Parklands Library is not programmed for development until 2002/03 the opportunity to purchase a site early was taken up at the end of last year. The maintenance costs associated with this site relate to ground maintenance and insurance and fire and safety costs for the existing building.
* Reactive Maintenance - Water Services $30,000
An additional $30,000 has been provided for follow-up work on the Water Services Asset Management Plan. This work is being done in conjunction with leak reduction repairs.
* Education Programme - Water Services $67,000
Funding from the Ministry for the Environment's sustainable management programme expires on 30 June 1998. The draft budget has been prepared on the basis that the education programme will continue at its current level and be funded fully by the Council.
* Additional Resources - Art Gallery $52,000
These costs were identified subsequent to the preparation of the 1997 Plan and relate to art conservation, additional resources to meet the exhibition programme and additional framing costs.
* Publication Costs $37,500
This item relates to the design and printing costs for the funding, borrowing and investment policies and the Long Term Financial Strategy. These policy statements which are a requirement of the Local Government Amendment Act will be published in a strategic statement booklet.
Housing Review Initiatives $69,500
The Housing Review Team which met during 1997 identified a number of initiatives to be implemented in 1998/99. They include an energy efficiency review, software for better managing the housing assets, a review of rent and cash collection systems and benchmarking. The initiatives which have a total cost of $69,500 were endorsed by the Community Services Committee at its December seminar meeting. The initiatives will be formally reported to the Community Services Committee meeting in February.
New Brighton Mainstreet $40,000
This provision will allow the Council to further progress specific issues raised in the 2005 Report. It will also enable specific support to be given for a Main Street Programme in New Brighton.
Tuam Street Car Park Development Studies $85,000
The above project will enable the potential development of this Council owned strategic property to be fully explored. Preliminary work on this project has already commenced.
Resource Consent Process $120,000
The Council is required to obtain a resource consent in order to apply biosolids to the forests. This provision reflects the likely cost of the consent process.
Landfill Aftercare $85,000
Relates to closed landfill sites and will allow for increased monitoring of these sites. This is to comply with the Resource Management Act.
Plant Costs $54,800
Reflects ownership costs for 10 additional light vehicles as approved in the 1997 capital budget.
Court Lodgement Fees $120,000
As at 1 January 1998 Court Lodgement Fees charged by the Department of Courts were increased from $15 to $25 per lodgement. These relate to parking fines.
Farmers Car Park (Car Parking Budget) $129,225
Reflects net operating costs for seven months of the 1998/99 year.
Canterbury Museum Trust Board $32,274
The Board has written to the Council advising that it is recommending a 5% increase to the 1998/99 levy. This represents a 3% ($32,274) increase on top of 2% allowed for in the Financial Model.
Project Plan Booklets $39,500
At the December Council meeting approval was given to publish project plan booklets for 1999/2000. These booklets will list all projects in a community area and will be map based. A pilot study will be initiated in the current year.
Library Maintenance $56,000
Most of these costs relate to cleaning of enlarged sites like the Central Library extensions.
Rural Fire Fighting Training $25,710
This additional provision has been included in the rural fire output to provide training in order to meet the Rural Fires Act Code of Practice.
Road Network Planning $25,000
There are two components to this item, both of which relate to road network planning. The first ($15,000) relates to the ongoing monitoring and assessment of existing speed limit changes and new speed limit sites and related research. The second ($10,000) relates to pedestrian crossing points and the investigation and design of miscellaneous crossing requests.
Carriageway Resurfacing Net $138,700
Reflects an increase in contract rates which have moved up significantly in 1997. The increased budget provision will meet target service levels as well as recognising more specialist work requirements.
Footpath Maintenance $40,000
Costs have continued to exceed previous budgeted amounts. This increase will ensure a more realistic provision.
Street Lighting $173,850 (Net)
This increase reflects a 2.5% increase in the asset base plus an increase in the cost of power. The new provision also allows for a one-off item of $50,000 for painting central city power poles.
Youth Advocacy $55,000
The social initiatives package which was approved last year funded a Youth Advocate position and support costs for a six monthly period. This additional provision will enable funding for a full 12 month period.
Cost Pressures due to Demand or Growth
In addition to the new committed items and cost increases detailed above there are also pressures due to increased demand or growth. These total $636,880 and are scheduled below:
New Reserves $69,285
New reserves and proposed reserves arising from subdivisions will add an estimated $69,285 to the Parks operating budget.
Halswell Quarry Park $39,765
The Quarry Park has been further developed from the initial 29.5 ha and the development now covers the whole 60.2 ha. There has been a corresponding increase in costs to maintain this asset.
Grounds Maintenance $36,945
Additional grounds maintenance on riverbank reserves arising from the plant programme.
Local Parks Additional Maintenance $25,115
Represent additional maintenance on the 22 extra parks which was not allowed for when the 1998/99 projects were prepared.
City Design - Operational Costs $92,140
Reflects a continuing growth in the unit's workload. Staff numbers are managed up or down on a continuing basis to match the required workload. Increased staffing is self-funding and is financed by fees charged for work done.
Water Supply - Power Charges $20,000
City growth and tariff changes have resulted in the need to increase the power provision for water pumping by $20,000.
Waterways and Wetlands $14,000
An increase in the rate of development and subdivision adjacent to waterways will increase the cost of maintenance associated with the management of riparian areas.
Road Maintenance
Includes the following items:
- Landscape Maintenance $69,500
Reflects the increase in the number of grassed berms being installed as well as additional landscape plots.
- Street Cleaning $26,130
Reflects the increased length of roading in the city.
- Major Pedestrian Areas Cleaning $244,000
Increases have been allowed for cleaning in the central city and suburban malls. This is due to the changing nature of inner city activities and public expectations of cleanliness.
EFFICIENCY GAINS $1,025,271
At the Council meeting to adopt the 1997 Plan it was resolved that an efficiency and effectiveness drive be carried out aimed at maximising efficiency gains. This process is well underway and the efficiency gains identified and achieved to date which translate directly into savings have been taken account of in the draft budget. These total $1.02M and cover a wide variety of Council activities. For a complete list see Schedule 1F (attached).
REVENUE
| Draft Budget 1998/99 |
Financial Model 1998/99 |
|
| Revenue * | $80.28M | $79.45M |
| CCHL Dividend/Interest on Subordinated Debt | $19.50M | $19.76M |
* This item does not include rates.
This year the Financial Model has proved remarkably accurate in projecting total revenue. The most significant variation to the revenue figure relates to car parking and this can be explained in terms of a fee increase of 60c to 80c per half hour in the basic casual charge for parking buildings.
CAPITAL EXPENDITURE
The capital expenditure programme can be summarised as follows:
| Draft Budget 1998/99 |
Financial Model 1998/99 |
|
| Net Capital Expenditure | $87.0M | $82.83M |
The draft 1998/99 figure includes $2.60M for unspecified capital expenditure plus an allowance of $749,100 for Community Board capital projects. All inflation adjustments to the draft 1998/99 figures have been funded from the unspecified inflation provision ($1.51M) which was included in the Model projections.
Although the capital smoothing exercise, which was carried out in October, achieved an overall reduction of $19.1M as against a budgeted reduction of $15M, most of this applied to years 2, 3 and 4.
The smoothing reduction achieved for 1998/99 was $1.4M.
The 1998/99 figure also includes the QEII scoreboard ($1M) which was brought forward at the time of the smoothing exercise and additional expenditure approved for the Cathedral Square project ($1.4M).
NEW INITIATIVES, COMMITMENTS AND BIDS
At the Standing Committee meetings last year, service add ons were separated out into:
- committed new initiatives; and
- uncommitted new initiatives
Committed new initiatives were defined as those costs which the Council was committed to and unable to avoid (eg operating costs associated with the Parklands Library site purchase). Uncommitted new initiatives were defined as initiatives which the Council/Community Board or staff requested.
The 1998/99 approach is very similar in that Units were asked to note on their pink pages, the changes and potential changes using the following headings:
| Categories | Totals* |
| - Committed Costs (operating) [included in the draft operating budget] | $5.78M |
| - Increased costs due to increased demand [included in draft operating budget] | $0.90M |
| - New operating initiatives [not included in draft operating budget] | $2.60M |
| - New capital initiatives [not included in draft operating budget] | $7.00M |
| - Efficiency gains [included in draft operating
budget] |
($1.02M) |
*The totals for the Council as a whole.
The categories as they relate to the Projects and Property Committee costs/projects are:
Committed Costs - Operating Budgets ($516,460)
See Schedule 1A (attached). These items reflect the operating costs arising from capital projects, previous commitments made by the Council or cost increases.
Increased Costs due to Increased Demand - Operating Budgets (Nil)
Schedule 1B. There were no items within the Projects and Property Committee budgets in this category.
New Operating Initiatives (Nil)
See Schedule 1C (attached). There were no items within the Projects and Property Committee budgets in this category.
Bids for the Unspecified Capital Sums ($959,800)
See Schedule 1D (attached). Included within the Model projections is an unspecified amount of $5.2M which is divided equally between 1997/98 and 1998/99. These sums are available to fund some of the items on Schedule 1D.
Efficiency Gains (Nil)
See Schedule 1E (attached). There were no items within the Projects and Property Committee budgets in this category.
APPROACH
The suggested approach to the 1998/99 Draft Sub-Budgets is to:
The suggested ranking is a 1 to 5 grading:
1 - Top priority
2 - High priority
3 - Priority
4 - Low priority
5 - Lowest priority
Projects should be spread equally by dollar value between the five categories.
A copy of the Strategic Objectives from the 1997 Plan is attached (see Schedule 1H). Committee members may need to refer to these when ranking items.
The Committee should also consider whether any new initiatives can be funded by way of substitution.
It should be noted that the bids will also be prioritised by the Plan Working Party against bids from all other Committees.
BUDGET FORMAT
Following the pattern established in previous years, the budget is presented in an output format. (Outputs represent the goods, services or products which are being 'bought' for the community by the Council.) In most cases there is one output per page. Coloured paper has been used to separate the various sections of the budget.
The colours and the corresponding sections are:
| Pink | - Key Changes Section |
| Green | - Operating Budget |
| Lemon | - Holding Account Section |
| Blue | - 1998/99 Capital Section |
| Buff | Ten Year Capital Programme |
| Violet | Fees Schedule |
For each output there is a brief description, the objectives for 1998/99 are stated and the measures which will be used to assess whether the objectives have been met are also listed. The budgetary provisions are generally divided into direct costs, allocated costs and revenue. They are always shown on the opposite page to the budget text. All allocations from the Holding Account are cross-referenced back to the Holding Account section (lemon pages).
The budget structures for 1998/99 remain essentially the same as those for 1997/98. Where there are significant changes these have been highlighted on the pink pages under the heading "Restructuring of Budgets".
TIMETABLE
The next step in the process is for the draft budgets to be referred to the 1998 Plan Working Party in the last week of February to:
Details of the other steps in the process are set out in Schedule 1G (attached).
| Recommendation: | That the draft operating and capital outputs be recommended to the 1998 Plan Working Party with any of the new initiatives (operating or capital) being clearly flagged. |
| Chairman's Recommendation: | For discussion. |
10. RESOLUTION TO EXCLUDE THE PUBLIC
Below.
Supplementary Clause:
WESTPACTRUST CENTRE FURNITURE, FITTINGS AND EQUIPMENT
UPDATE REPORT
FRIDAY 13 FEBRUARY 1998
AT 2.00 PM
- 30 -
PROJECTS AND PROPERTY COMMITTEE
RESOLUTION TO EXCLUDE THE PUBLIC
Section 48, Local Government Official Information and Meetings Act 1987.
I move that the public be excluded from the following parts of the proceedings of this meeting, namely item 11.
The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter and the specific grounds under Section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:
| GENERAL SUBJECT OF EACH MATTER TO BE CONSIDERED |
REASON FOR PASSING THIS RESOLUTION IN RELATION TO EACH MATTER |
GROUND(S) UNDER SECTION 48(1) FOR THE PASSING OF THIS RESOLUTION |
||
| PART A | 11. | FUNDRAISING: PROPOSED | ) ) ) ) ) GOOD REASON TO ) WITHHOLD EXISTS ) UNDER SECTION 7 ) ) ) |
SECTION 48(1)(a) |
| FUNDRAISING STRATEGIES | ||||
| AND BUDGET REVISIONS FOR | ||||
| FOR MAJOR PROJECTS; | ||||
| REGIONAL LOTTERY; | ||||
| RECORD OF GRANTS TO | ||||
| CANTERBURY REGION FROM | ||||
| NZ LOTTERY GRANTS BOARD |
This resolution is made in reliance on Section 48(1)(a) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by Section 6 or Section 7 of that Act which would be prejudiced by the holding of the whole or relevant part of the proceedings of the meeting in public are as follows:
| Item 11 | Conduct of Negotiations | (Section 7(2)(i)) |
| Chairman's Recommendation: | That the foregoing motion be adopted. |
Note
Section 48(4) of the Local Government Official Information and Meetings Act 1987 provides as follows:
"(4) Every resolution to exclude the public shall be put at a time when the meeting is open to the public, and the text of that resolution (or copies thereof):
(a) Shall be available to any member of the public who is present; and
(b) Shall form part of the minutes of the local authority."