The Kapiti Coast District Council has unanimously approved two major projects and an unexpected $5 million increase in costs — the Aquatic Centre and the new Council HQ (Civic Building).
But a KCDC media release says, despite the huge and unpredicted rises in costs, rates won’t have to go up as a result.
Council agreed to lift the Aquatic Centre budget from $16.69 million to $21 million on the basis that the additional amount will be funded from future land sales and that there will be no additional impact on rates.
The original Aquatic Centre budget was $16.98 million. But the Council was asked to increase this to $21.11 million.
Council noted that the additional amount included a $1 million shortfall in fundraising by the Aquatic Centre Trust and that the Trust will continue to seek this funding over future months.
Mainzeal gets $15 million contract
Mainzeal Construction Ltd will be awarded the build contract at $15.047 million. Work is due to begin in February 2012 with the pool complex operational by March 2013.
Mainzeal submitted the lowest tender, but it was $2.29 million above the expected cost.
An external project manager has already been appointed. This follows an independent review into the project. The review indicated that, though drawings and specifications were detailed and well prepared, the costing advice had not been robust enough.
Councillor Peter Ellis said the decision culminated 10 years of effort. He was disappointed they were not building the larger pool, but he made it clear the movable swimming pool floor in the planned complex would offer huge potential.
Councillor Tony Lloyd said he had changed his mind about the project. “We need a heart (to the town centre) and this swimming pool complex will contribute hugely to that.”
Mayor Rowan said she wanted to acknowledge the substantial financial support from Coastlands (at $750,000) and the early support from Pac N’ Save (at $400,000). She also congratulated Councillor Diane Ammundsen for her “dogged” persistence in fund raising over a considerable period of time.
Councillor Ammundsen said she was delighted Council had given its unanimous support to the project today. “This is a long standing project and I am very pleased it has finally crossed the line.”
Costing advice ‘not robust enough’
Earlier, the independent review concluded that costing advice leading up to the closing of tenders had not been robust enough and that the change from a more conventional structure to the ‘ETFE’ roof had led to complexity of design and a cost implication that was not fully recognised at the time of the decision.
Group Manager Community Services Tamsin Evans says the appointment of external project management had also been identified as critical to the successful completion of the project. “Given this, we have appointed Davis Langdon for the build phase of the project.”
Ms Evans says the shortfall could be funded from the proceeds of several land sales which were expected over the next two financial years. The land sales were expected to realise around $6.5 million, income which had been un-allocated until now.
Work on the Aquatic Centre could begin in February 2012 with the Centre operational by March 2013.
Civic Building costs more
In a separate report, Ms Evans says tenders for the Civic Building upgrade were about $1 million higher than expected but this is being funded from the town centre, roading and public art budgets.
The upgrade includes discussions are underway with Te Whakaminenga o Kapiti on three carved pou for the atrium; plans to turn the grassed area at the end of Ngahina Street into 88 new car parks; and an upgrade at the intersection of Rimu Road and Iver Trask Place is also planned; and
Ms Evans said the original budget for the building upgrade excluding the cost of the associated roading and parking projects, was $7.25 million. This included $662,000 for temporary working arrangements during construction.
The new budget is figure is $8.262 million. She says the difference will be funded from the existing district-wide town centres budgets. There will be no call to further increase rates to cover the amount.
Armstrong Downes submitted the lowest tender price for the actual building at $5.55 million. But the $5.55 million figure was $340,000 over the expected cost.
Consultants TBIG also recommended a contingency sum of $500,000 be included to cover unforeseen items, documentation omissions or errors, or adjustments required to the design. This has pushed the total construction cost to $6.05 million.
If Council approves the project, staff could re-locate to the former Whitiriea campus at Lindale in January and construction work could begin in February.