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PROJECTS AND PROPERTY COMMITTEE
SUPPLEMENTARY AGENDA
13 FEBRUARY 1998
AT 2.00 PM
12. WESTPACTRUST CENTRE FURNITURE, FITTINGS AND EQUIPMENT UPDATE REPORT RR 7052
| 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 update the Projects and Property Committee on progress of Furniture, Fittings and Equipment (FF&E) procurement and to seek approval for the placement of orders from the approved budget for various items of equipment.
1. BACKGROUND:
The original FF&E budget was $4.572 million. The Council has approved various transfers (eg seating, food and beverage provisions, audio-visual equipment and kitchen equipment) into the main building contract, which means the remaining approved budget provision for FF&E is $1,594,355.
The full FF&E schedule was presented to the Projects and Property Committee in July 1997. At that time it was indicated that an additional requirement of $1.42 million may be necessary to purchase all equipment identified in the schedule. It is not recommended to purchase any FF&E equipment through use of the remaining contingency at this stage of the project and additional funding is being sought as part of the 1998/99 Budget Round, as indicated may be necessary in July 1997.
The FF&E schedule was prioritised to spread the required additional funding and since July 1997 has been modified by replacing budget estimates with tendered prices or firm quotes where available, and re-prioritising some items. The priorities established, with associated budgets, are as follows:
| P1 | Approved Funding | $1,594,355 | |
| P2 | 1998/99 Funding Council Plan Provision New Initiative |
405,408* 344,592 |
|
| $750,000 | |||
| P3 | 1999/00 Funding New Initiative | 755,000 | |
| $755,000 |
* The current provision of $405,408 is in the 1998/99 Council Plan on account of the ice floor, which Council decided not to pursue in August 1997.
It is important to place orders for some items of equipment immediately to maintain the project programme. Equipment recommended for purchase with this report has delivery times of up to four months after placement of orders.
2. DISCUSSION:
The attached table (Table 1) shows the full revised FF&E schedule financial summary. This is a useful reference document to be read alongside the following discussion.
2.1 Package A1 - Arena Seating:
2.1.1 Loose Floor Seating:
Introduction:
The FF&E Schedule identified the procurement of 2000 loose floor seats in the 1998/99 financial year as Priority P2 item for a budget of $200,000.
Procurement:
Three tenders were received for seating. The preferred supplier for the supply of 2000 loose floor seats is Renco Ltd (New Zealand based) who have tendered a price of $222,600 (including storage racks etc). This equates to $111.30 per chair. The preferred tenderer's chair has a padded metal seat pan and metal back and can be used in multiple configurations (such as end stage concerts or sports events) or singly (such as a banquet configuration). The chair is manufactured in the USA.
For comparison, Sebel Furniture Ltd has recently offered (outside the tender process) a plastic chair on a metal frame. These chairs are also used widely throughout the entertainment industry and are also typically found in government and educational institutions, for example. The chair is manufactured in Australia. A price of $60,000 has been offered for 2000 chairs, which includes two sealed containers for external storage.
Summary:
FF&E Schedule provided for:
| Draft Council Plan Provision (P2) - 1998/99 | $200,000 |
| Preferred Tenderer's price | $222,600 |
| Recent quote | $60,000 |
| Recommendation: | That the project team do not award any contract under the tender process and negotiate with Sebel directly for the purchase of 2000 loose floor seats at a price of $60,000. Maintain in P2. |
2.2 Package C1 - Sporting Goods and Equipment:
2.2.1 Portable Wooden Floor:
Introduction:
The FF&E Schedule identified the procurement of one
portable wooden sports floor in the 1998/99 financial year as a
Priority P2 item for a budget of $180,000.
Procurement:
Four tenders were received for portable sports flooring. Only
two of these included prices for a wooden floor, which is a
requirement for the World Netball Championships in 1999 and the
Canterbury Rams Basketball Team. The preferred tenderer for the
supply of a portable floor is ASF Horner Pty Ltd from Australia
for a price of $165,986.
The portable wooden floor is manufactured under licence for the Horner Flooring Company, who are major suppliers for portable floor systems throughout the world. The floor comprises several layers of timber construction finished in first grade American Maple which is recommended to match the standard of other international venues and to provide the best colour lightness for television coverage.
Both Netball NZ and NZ Basketball endorse the selection of the Horner floor and the floor has proven successful at Mystery Creek, Hamilton as well as at numerous Australian (and worldwide) venues.
Locally manufactured flooring was considered, but due to the specialist floor construction techniques and performance characteristics and lack of experience this was not pursued. The endorsement of a locally made floor by the local and national sporting bodies would be difficult to obtain.
Additionally, enquiries were made through the Washington State Recycling Centre about the use of a timber/recycled rubber composite floor. We were advised that the flooring was being developed and marketed locally before releasing and marketing the product worldwide and that it would cost three to four times more than the Horner floor. It was not pursued further.
Summary:
FF&E Schedule provided for
| Draft Council Plan Provision (P2) -
1998/99 (re-prioritised to P1 - 1997/98) |
$180,000 |
| Preferred Tenderer's price | $165,986 |
Recommendation:
That a portable wooden floor be purchased through ASF Horner Pty
Ltd for a price of $165,986. Re-prioritise to P1.
Footnote: Two additional wooden floors are included in the revised Schedule under the 1998/99 and the 1999/00 financial years as Priority 2 and 3 items respectively. NZ Netball have advised that only one additional wooden floor is required for the World Netball Championships and the third floor (warm-up court) could be a synthetic (less expensive) surface. NCC (NZ) Ltd have been advised that two wooden floors are available for hire to the Council for the World Netball Championships from Mystery Creek, if required. (The terms and conditions of the lease are very stringent.) However, there may be other events at the WestpacTrust Centre in the future that require more than one floor and accordingly, purchase of additional flooring is allowed for in 1998/99 and 1999/00.
2.2.2 Netball Posts:
Introduction:
The FF&E Schedule identified procurement of one pair of
netball posts in the current financial year as a Priority P1 item
for a budget of $675.
Procurement:
Two tenders were received. The preferred supplier is ASF
Horner Ltd, who are also the preferred supplier for the portable
wooden floor for a price of $1,150. Netball NZ have endorsed the
selection of goal posts.
Summary:
FF&E Schedule provided for:
| Approved Budget Provision (P1) - 1997/98 | $675 |
| Preferred Tenderer's price | $1,150 |
Recommendation:
That one pair of netball goal posts be purchased through ASF
Horner Pty Ltd for a price of $1,150. Maintain in P1.
2.2.3 Basketball Backboards:
Introduction:
The FF&E Schedule identified procurement of one pair of
basketball backboards in the 1998/99 financial year as a Priority
P2 item for a budget of $40,000.
Procurement:
Two tenders were received for basketball backboards. The
preferred supplier is Balsam Pacific Pty Ltd for a price of
$39,950. The backboards are collapsible for mobility and storage,
via a spring balance system. They have a tempered glass backboard
and were proven successful in the 1992 Barcelona Olympics. The
backboards are approved by NZ Basketball and the International
Basketball Federation and are also used in many Australasian
venues.
Summary:
FF&E Schedule provided for:
| Draft Council Plan Provision (P2) -
1998/99 (re-prioritised to P1 - 1997/98) |
$40,000 |
| Preferred Tenderer's price | $39,950 |
Recommendation:
That one pair of basketball backboards be purchased through
Balsam Pacific Pty Ltd for a price of $39,950. Re-prioritise to
P1.
2.3 Package C2 - Entertainment Equipment:
2.3.1 Demountable Stage:
Introduction:
The FF&E schedule identified the procurement of half a
portable stage in the current financial year as a Priority P1
item for a budget provision of $130,000.
The purchase of the second half of the portable stage is provided for in the Draft 1998/99 Council Plan as a Priority P2 item with a budget provision of $100,000.
Procurement:
Due to the specific staging requirements and compatibility
with Town Hall staging and Convention Centre staging, together
with the fact that staging systems are becoming standardised for
venues across Australasia, it was decided that the stage system
should be procured from Sico South Pacific Ltd, the main
distributor for the portable staging system required.
An offer has been received from Sico South Pacific Ltd to supply, install and commission a 32ft x 40ft (half stage) for a price of $121,488. All prices exclude GST. The other half of the stage system has been offered for $106,210.
The two `halves' are not the same price due to inclusion of storage racks, side drapes, handrails and stairs in the first `half'. The total budget is $230,000.
Sico have advised that if the total package is ordered the total price would be $226,858. This is a saving of $840 if the system is purchased in two halves. Sico have offered flexible payment terms if this option is chosen in order to allow payments to be made in the 1998/99 financial year even though delivery of the stage is already taken. The advantage in this is that the full stage would be available at the time of opening of the venue.
The staging is installed and commissioned four months after receipt of order.
Summary:
FF&E Schedule provided for:
| Approved Budget Provision (P1) - 1997/98 | $130,000 |
| Draft Council Plan Provision (P2) -
1998/99 (re-prioritised to P1 - 1997/98) |
$100,000 |
| FF&E Schedule Budget | 230,000 |
| Recommended acceptance price for total stage system | $226,858 |
Recommendation:
That a full stage system be purchased from Sico South Pacific
for a price of $226,858. Maintain the first half of the stage in
P1 and re-prioritise the second half of the stage to P1.
2.3.2 Lighting Rig:
Introduction:
The FF&E Schedule identified the procurement of a
lighting rig in the current financial year as a Priority P1 item
for a budget of $110,000.
Procurement:
Tenders were received from two suppliers who are effectively
Christchurch agents for internationally recognised lighting rig
systems. The preferred tenderer for the rig is John Herber Ltd.
John Herber Ltd is an experienced rigging company in the field of
theatrical stage draperies, projection screens, entertainment
rigging systems and dance flooring. The company is Christchurch
based and has had extensive Australasian experience.
The preferred tenderer has offered a complete and fully operable grid system with all trussing accessories and certification required. The offer consists of a series of proprietary steel box trusses in standard lengths that can be joined together to form an 18m x 18m or 9m x 36m grid. The proprietary steel box trusses are manufactured in the USA by Tomcat. Following negotiations after tender closing a tender price of $217,858 has been offered by John Herber Ltd.
The project team have asked John Herber Ltd to look at ways of reducing the price by considering using local componentry instead of proprietary systems from the USA. A New Zealand company called Triplex Alloys is able to manufacture such systems and has provided equipment to the Convention Centre previously.
Summary:
FF&E Schedule provided for:
| Approved Budget Provision (P1) - 1997/98 | $110,000 |
| Preferred Tenderer's price | $217,858 |
Recommendation:
That the Project Team continue to negotiate with John Herber
Ltd with a view to reducing the current tender price through the
provision of locally manufactured componentry. Include the
preferred tenderers current price in P1.
2.3.3 Division Curtain:
Introduction:
The FF&E Schedule identified the procurement of a
division curtain in the 1998/99 financial year as a Priority P2
item for a budget of $100,000.
Procurement:
Tenders were received from two suppliers. The preferred
supplier is the same proposed for the lighting rig (John Herber
Ltd). There are common elements between the lighting rig and the
division curtain (ie steel box trusses) and there are advantages
of working with the same supplier for both the lighting rig and
the division curtain.
The price offered by John Herber Ltd is $184,221. As for the lighting rig, the project team has asked John Herber Ltd to look at ways of reducing the price by considering local componentry.
Summary:
FF&E Schedule provided for:
| Draft Council Plan Provision (P2) -
1998/99 (re-prioritised to P1 - 1997/98) |
$110,000 |
| Preferred Tenderer's price | $184,221 |
Recommendation:
That the project team continue to negotiate with John Herber
Ltd with a view to reducing the current tender price through the
provision of locally manufactured componentry and exploring
economies of scale created through the provision of the lighting
rig. Re-prioritise to P1 and include the preferred tenderers
current price in P1.
2.3.4 Dasher Boards (Control Barrier System)
Introduction:
The FF&E Schedule identified the procurement of a dasher
board system in the current financial year as a Priority P1 item
for a budget of $170,000.
Procurement:
Only one valid tender was received for the dasher board
system ($210,000). However, a price has also been received from a
recognised North American supplier which is very competitive and
within budget. Additionally, it is possible that a control
barrier system could be designed and manufactured locally, rather
than procuring a proprietary system which is only available
overseas.
Summary:
FF&E Schedule provided for:
| Approved Budget Provision (P1) - 1997/98 (re-prioritised to P2 - 1998/99) |
$170,000 |
| Tendered price | $210,000 |
Recommendation:
That a locally designed and manufactured control barrier
system be pursued, and if it is not feasible, re-tender the
control barrier system once P2 funding is approved. Re-prioritise
to P2 and include the preferred tenderer's current price.
2.4 Package E1 - Scoreboards and Message Screens:
2.4.1 Centre Hung Cube Scoreboard:
Introduction:
The FF&E Schedule identified the procurement of a centre
hung cube scoreboard in the current financial year for a budget
of $350,000.
Procurement:
Tenders were received from five suppliers, each with various
options ranging in price from approximately $160,000 to $600,000.
The preferred supplier for the scoreboard is Computronics
Corporation Ltd who have tendered a price of $221,240.
The preferred tender consists of a cube scoreboard suspended from the arena roof which is raised and lowered by chain motors. The scoreboard is approximately 3.2m high by 4.8m wide and three of the four faces contain LED programmable team names, team score, game clock, timeouts, fouls. In addition the scoreboard contains a 3.6m x 1.4m animator graphic screen (or message centre) with three colour capability and potential for advertising, messaging and sports graphic displays. The scoreboard is capable of scoring and displaying all sports.
Summary:
FF&E Schedule provided for:
| Approved Budget Provision (P1) - 1997/98 | $350,000 |
| Preferred Tenderer's price | $221,240 |
Recommendation:
That the centre hung scoreboard be purchased through
Computronics Corporation Inc for a price of $221,240. Maintain in
P1.
2.4.2 Point of Sale:
Introduction:
The FF&E Schedule identified the procurement of a point
of sale network system in the current financial year for a budget
of $150,000.
Procurement:
Four tenders were received for the supply and installation of
a point of sale system. On 4 February 1998, presentations were
made by three suppliers to the project team. The point of sale
system is under further investigation by NCC (NZ) Ltd with the
assistance of Ernst and Young along with facility management
packages for co-ordination with the Convention Centre information
technology systems.
The preferred supplier's current price is within budget, but the budget price will be used in the revised schedule until such time as the above investigation is completed.
Summary:
FF&E Schedule provided for:
| Approved Budget Provision (P1) - 1997/98 | $150,000 |
| Maintain budget provision - pending investigation | $150,000 |
Recommendation:
That the project team finalise their investigation and
confirm acceptance of a point of sale system within the budget
allowance. Maintain in P1.
2.4.3 Theatre and Spot Lighting:
Introduction:
The FF&E Schedule identified the procurement of lighting
systems in the current financial year for a budget of $131,000.
Procurement:
Three tenders were received for the supply of lighting
systems. A combination of lighting from two suppliers is
preferred. The project team have estimated that, following
installation including cabling, controls and commissioning, a
revised budget of $154,938 should be included. Further
consideration is required including inter-changeability,
consistency etc with Town Hall and Convention Centre equipment
and the project team will work further on these items to pursue
cost savings. The budget for theatre and spot lighting will be
revised to $154,938.
Summary:
FF&E Schedule provided for:
| Approved Budget Provision (P1) - 1997/98 | $130,000 |
| Revise budget provision - pending further investigation | $154,938 |
Recommendation:
That the project team finalise their investigation and
confirm acceptance of a lighting system within the revised budget
allowance. Maintain in P1.
3. SUMMARY OF RECOMMENDATIONS TO PROJECTS AND PROPERTY COMMITTEE:
Projects and Property Committee approvals are sought for the following:
3.1 FF&E Purchases:
| Item | Supplier | Price | |
| (a) | 1 portable wooden floor | ASF Horner Pty Ltd | $165,986 |
| (b) | 1 pair netball posts | ASF Horner Pty Ltd | $1,150 |
| (c) | 1 pair basketball backboards | Balsam Pacific Pty Ltd | $39,950 |
| (d) | 1 full demountable stage | Sico South Pacific Ltd | $226,858 |
| (e) | 1 centre hung scoreboard | Computronics Corporation Ltd | $221,240 |
| $654,887 |
3.2 FF&E Budget Summary:
| 1997/98 Approved Budget for FF&E | $1,594,355 |
| less Approvals for expenditure sought with this report | $654,887 |
| 1997/98 Remaining Approved Budget for FF&E | $939,468 |
The revised FF&E financial summary shows a total remaining requirement in 1997/98 of $1,249,681 (1,904,568-654,887). The remaining approved budget for 1997/98 is $939,468. This is a shortfall of $310,213. The project team will attempt to maximise the purchase of P1 equipment identified from revised FF&E schedule by pursuing possible savings or deferring purchase of equipment by re-prioritising
No additional funding is currently being sought with this report.
Additional funding is being sought as part of the 1998/99 Budget Round, as indicated may be necessary in July 1997.
| Recommendation: |
|
| Chairman's Recommendation: | Not seen by Chairman. |