16 August 2012

 

 

 

 

 

 

 

 

Dear Councillor/Sir/Madam

 

You are invited to attend a CIVIC CENTRE REDEVELOPMENT STEERING COMMITTEE of Ashfield Council, to be held on Level 6, Civic Centre, 260 Liverpool Road, Ashfield on TUESDAY 21 AUGUST 2012 at 5:30 PM.

 

 

 

 

 

 

 

 

 

 

 

SEE ATTACHED AGENDA


 

Civic Centre Redevelopment Steering Committee - 21 August 2012

 

AGENDA

 

1.               Opening

 

2.               Acknowledgement of Local Indigenous Community

 

3.               Apologies/Request for Leave of Absence

                   

4.               Disclosures Of Interest

 

Disclosures to be made by any Councillors who have a pecuniary / non-pecuniary interest in respect of matters that are before Council at this meeting.

(21/08/2012)

 

5.               Confirmation of Minutes of Council/Committees

 

Civic Centre Redevelopment Steering Committee - 17/07/2012

 

6.               Staff Reports

 

6.1        PROGRAM DIRECTOR'S REPORT

 

6.2        CIVIC CENTRE - CAPEX REVIEW AT AUGUST 2012

 

6.3        FINANCIAL UPDATE

 

 

7.               General Business

 

 

 

8.               Close

 

 

 

 

 


Ashfield Council – Report to Civic Centre Redevelopment Steering Committee held on Tuesday 21 August 2012                                                                                                                        CCSC6.1

Subject                            PROGRAM DIRECTOR'S REPORT

 

File Ref                            CCRD

 

Prepared by                   Robert Burke - ACCRD Project Officer         

 

 

Reasons                          To provide Council with a project overview of the activities during the period to August 2012

 

 


Overview of Report

This report is to provide Council with the project status to August 2012 and provide an overview of the project schedule.

 

 

Background

 

Stage 3

 

Works to Stage 3 have substantially commenced with the demolition now completed and the rough in of services well progressed. The construction of new walls in both the basement and Town Hall has progressed.  The builder is now well established on-site with temporary offices in the basement car parking area.

 

The design review has also been completed along with the preparation of required workshop drawings now in their final stages of approval.

 

Various samples have been approved such as tiles and the new timber sports floor to the Town Hall. Council is completing a review/clarification of the internal finishes schedule for the builder.

 

Rapid to date have been very cooperative creating very little disturbance to the occupied and operational areas of Council. Matters when identified or raised are quickly addressed and actioned appropriately and professionally.

 

Contractually, Rapid have now submitted all required documentation, however at submission of their first claim a number of prerequisites were outstanding. Time was given for Rapid to supply the requested information before their claim was assessed. By the last day available for issuing a payment certificate this information was still outstanding therefore the determination was a nil cost. Rapid in their monthly report have raised their objection to this assessment, however in keeping the relationship amicable are not pursing the matter further.

 

The Superintendent’s report was not available at the time of report publication. 

 


 

Performance

 

Extension of Time

Nil received

Notice of Delay

Nil received

Requests for information

2 received, 1 outstanding pending BCA compliance issues

 

Variations

 

No.

Description

Amount

Status

1

Install bulkhead over basement entrance

$3,117

Pending

2

Block up door to plant room

$1,814

Pending

3

Install bulkhead over services

$3,733

Pending

4

Town Hall new entry modification

$2,816

Approved

 

Cashflow Forecast - Total Contract Value $1,666,624

 

Aug-12

Sep-12

Oct-12

Nov-12

Dec-12

Jan-13

Feb-13

Mar-13

$220,000

$260,000

$300,000

$300,000

$200,000

$200,000

$100,000

$86,642

 

A contract administration checklist has been prepared and implemented for this project. Both the builder, superintendent and Council have actions and responsibilities clearly outlined.

 

Weekly site meeting have been occurring and minuted. These meeting have been useful in resolving or clarifying minor issues.

 

Project Action List – Council’s component of the project

 

Id

Activity

Description of works

Status

Comments

1

Painting

Exterior painting of the north wing Civic Building to match in with works completed under contract

    ­

Painting completed, removal of old emblem require

2

Furniture

Provision of remainder of loose furniture, in particular the activity rooms and remained of meeting spaces 

    ­

30 new light tables for Activity room installed,140 new chairs awaiting delivery

3

Property Maint. Store/Office

Construct and fit out maintenance store and office in the basement

    ­

Store area completed.

Office will be constructed in the  Stage 3 component

4

Security

Further enhancement of the security system and incorporation with existing IT systems

 

    Ö

Completed

5

Audio Visual

Supply and install audio visual equipment to activity and several meeting rooms.

    ­

Smartboard in operation, TV purchased yet to be installed as being assessed against needs requirements.

6

Projectcentre

Create a new account for the Stage 3 works for management of contract documents

    Ö

New account created and functioning

 


 

Stages 1 and 2

 

Denham have continued to resolve a number of the minor outstanding issues relating to their stages of the project. Positive solutions to rectify the primary issues relating to water leaks and the mechanical systems are being addressed. It is expected that all these issues will be resolved within a short period of time with an extended defects liability period to cover these works until December 2012. 

 

A reconciliation of this stage of the project has been completed and will be reported separately.

 

Financial Implications

 

The financial report is reported separately to the Civic Centre Steering Committee Meeting.

 

Other Staff Comments

Nil

 

 

Public Consultation

Nil

 

 

Conclusion

 

This report provides Council with an overall status of the CCRD project til August 2012. Further reports will be provided at appropriate stages.

 

 

ATTACHMENTS

Attachment 1View

Rapid Construction Monthly report

16 Pages

 

 

 

RECOMMENDATION

 

That Council note the report.

 

 

 

 

 

 

 

Vanessa Chan

General Manager

 

 

 

 


Attachment 1

 

Rapid Construction Monthly report

 

















Ashfield Council – Report to Civic Centre Redevelopment Steering Committee held on Tuesday 21 August 2012                                                                                                                        CCSC6.2

Subject                            CIVIC CENTRE - CAPEX REVIEW AT AUGUST 2012

 

File Ref                            CCRDP

 

Prepared by                   Vanessa Chan - General Manager       

 

 

Reasons                          To provide a detailed capital expenditure report on the Civic Centre Redevelopment Project as at August 2012

 

Objective                         To seek Council’s instruction as to movement of funds within the broader project.

 

 

 


Overview of Report

This report provides a preliminary assessment of the reconciled position of Stages 1 and 2 of the Civic Centre Redevelopment Project, which shows a net surplus of $363,696 against the revised budget of August 2011. The report makes recommendations as to the redirection of those funds within the broader project.

 

 

Background

 

With practical completion of Stages 1 and 2 achieved, Council is now in a position to review the budget for this component of the project. The defects liability period extends to December 2012 and it will not be until this stage that Council expects Denham to lodge their full and final claim to the project. However, no further variations can be claimed, all but two variations have been resolved and paid, and a detailed analysis of outstanding design defects (water leaks) has been completed and a conservative cost estimate prepared. Council also currently holds a substantial security bond over the project which remains in force until the end of the defects liability period. This being so, we are in a position to undertake a preliminary reconciliation of Stages 1 and 2 with a view to determining how to allocate unspent monies, savings delivered, in the context of a revised total project budget.

 

Stages 1 and 2  - Preliminary reconciliation

 

Table 1: Current Stages 1 and 2 position, as at end July 2012

 

 

Revised Budget August 2011

Cost to Date including Commitments

Variance

Construction

12,711,871

12,229,970

481,901

Architect

836,234

773,345

62,889

Consultants

1,493,267

1,314,580

178,687

Council Works

1,135,285

1,148,196

(12,911)

 

 

 

 

Stage 1 & 2 Totals

16,176,657

15,466,091

710,566

 

The current financials show a positive project variation at end July of $710,566.

 

The following adjustment are required.

 

1.   Internal transfers to reserve

 

$196,870 is subject to internal reallocation to the Civic Centre General Reserve. These monies were accrued throughout the life of the project and relate to consulting services  - legal, commercial and other associated with contract administration, project management, risk and critical issue assessment, and defects assessment and negotiation.

 

2.   Remaining costs

 

$150,000 is recommended as a budget to cover remaining costs associated with Stages 1 and 2. This budget will cover:

 

2.1    The only two outstanding variations. These are DCV 51 (waterproofing plant room) and DCV 52 (remedial work to retail tenancy). The estimated combined value of this work is under $20,000.

2.2    Payment now owing, previously withheld as works were incomplete, of $11,200

2.3    Contingency vote for works associated with the final correction of design defects (water leaks). A contingency in the order of $100,000, is considered a sound and conservative estimate for future works, as advised by the Project Director and Superintendent

 

3.   Preliminary reconciliation

 

Table 2: Preliminary Stage 1 and 2 reconciliation

 

Current Variation                              $710,566

Transfer to reserve                          ($196,870)

Remaining vote                                ($150,000)

 

Stage 1&2 surplus                         $363,696

 

$363,696 is, on preliminary reconciliation, the forecast surplus/saving to Council on Stages 1 and 2 against our revised budget August 2011.

 

These savings are the result of diligent management of the closure of project, defect assessment and negotiation and the scrutiny applied  to assessment and management of variations.

 


Stage 3

 

The contract for Stage3 has been awarded and it is now prudent to review and confirm the budget of the project through to completion. Stage 3 budget reflects the re-scoped project and works then remaining at August 2011, mindful that a significant portion of Stage 3 works had already been completed during Stages 1 and 2.

 

Table 3: Stage 3 Budget, Balance at March 2012

 

Building Contract

 1,352,412

Contingency - Construction 

 248,091

Contingency - Design

 200,000

Council Works

123,667

Consultants

 192,775

 

Totals

                            2,116,945

 

 

Following the awarding of the Stage 3 contract the revised budget is proposed:

 

Table 4: Revised Stage 3 Budget

 

D & C Building Contract

 1,666,624

Consultants

 196,870

Contingency

 232,451

Council Works

 121,000

 

Total

 

2,216,945

 

 

Council determined to let this tender as a Design and Construct Contract. This being the case the ‘design contingency’ is absorbed into the building contract value. As noted by Council in awarding the tender on Stage 3, the market value of the work was slightly higher than estimated by our Quantity Surveyor. This meant in awarding the Contract we drew from some of the ‘construction contingency’ funds available in the overall project budget.

 

It is recommended, and reflected in the Revised Stage 3 Budget, above, that given the excellent performance of Stage 1 and 2 , $100,000 be reallocated to Stage 3 Contingency to bump it back to approximate original levels. Some minor, cost neutral adjustment are also reflected in the revision in line with more current estimates.

 

Financial Implications

 

As above

 

Other Staff Comments

 

This report has been prepared in consultation with the Civic Centre Project Director

 

Public Consultation

 

N/A

 

Conclusion

 

The preliminary reconciliation of Stages 1 and 2 shows an excellent results for Council. This result was achieved through the diligent management of closure of the project, defect assessment and negotiation and the scrutiny applied  to assessment and management of variations. The efforts of the project team and particularly our new Project Director, Robert Burke, must be acknowledged.

 

 

 

ATTACHMENTS

There are no supporting documents for this report.

 

RECOMMENDATION

 

1.      That Council note the projected surplus of $363, 696 on Stages 1 and 2 of the Civic Centre Redevelopment Project

 

2.      That, in respect to this surplus, Council reallocate:

a)   $100,000 to Stage 3 to strengthen the contingency vote

b)  Remaining funds of $263, 696 into the Civic Centre General Reserve

 

 

 

 

 

 

 

 

 

 


Ashfield Council – Report to Civic Centre Redevelopment Steering Committee held on Tuesday 21 August 2012                                                                                                                        CCSC6.3

Subject                            FINANCIAL UPDATE

 

File Ref                            CCRD

 

Prepared by                   Myooran Vinayagamoorthy - Chief Financial Officer       

 

 

Reasons                          To provide the Committee with an update on the expenditure and funding position of the Civic Centre redevelopment project.

 

 

 


Overview of Report

 

The financial report provides the Steering Committee with a summary of the total project costs to date, the overall likely project costs and the impact on the funding.

 

 

Background

The following table provides a summary of the financial position of the construction project as at 31 July 2012. More detailed information is provided as Attachment 1.

 

 

Table 1 - Financial Summary

Revised Budget August 2011

Total Project Cost Life to Date including Commitments

Variance between Revised Budget and Life to Date Costs

 

(A)

(F = D+ E)

(G=A-F)

STAGES 1 & 2

 

 

 

Construction

12,711,871

12,229,970

481,901

Architect

836,234

773,345

62,889

Consultants

1,493,267

1,314,580

178,687

Council Works

1,135,285

1,148,196

(12,911)

 

 

 

 

Stage 1 & 2 Totals

16,176,657

15,466,091

710,566

 

 

 

 

STAGE 3A

 

 

 

Construction

2,395,005

594,502

1,800,503

Architect

207,547

194,568

12,979

Consultants

354,905

221,365

133,540

Council Works

133,054

14,593

118,461

 

 

 

 

Stage 3A Totals

3,090,511

1,025,028

2,065,483

 

 

 

 

 

The total cost of the tender for the stage3 is $1.6million which is on budget. Council also received the grant funds for Phase 2 of $1.1m and loan funds of $2.1m.

 

Financial Implications

Nil

 

Other Staff Comments

Nil

 

Public Consultation

Nil

 

Conclusion

Based on the August 2011 budget, the financial reports do not highlight areas of over expenditure.

 

 

ATTACHMENTS

Attachment 1View

Summary of Financial Information

1 Page

 

Attachment 2View

Funding Position

1 Page

 

Attachment 3View

Contingency Reconciliation

1 Page

 

 

 

RECOMMENDATION

 

That the information in this report be noted.

 

 

 

 

 

 

 

 

 

Nellette Kettle

Director Corporate & Community Services

 

 

 

 


Attachment 1

 

Summary of Financial Information

 


Attachment 2

 

Funding Position

 


Attachment 3

 

Contingency Reconciliation