2018-08-31 Special Meeting Agenda

SPECIAL MEETING AGENDA                                                             31 AUGUST 2018


Annual Inspection and Maintenance Program
Likely ongoing facility costs were developed on the assumption that the buildings and their relevant
components were inspected and maintained to reach the end of their estimated lives. Given the
current state of disrepair at the facility (attributable to vandalism and general deterioration due to
the site being mothballed), additional defect rectification costs of $357k were estimated to bring
the facility back up to operating standard in year 1 (i.e. 2018/19). Costs from 2020 onwards reflect
expected ongoing asset inspection and maintenance requirements for the facility arising from the
condition assessment. The graph below highlights the estimated inspection and maintenance costs
required over 10 years for the facility (totalling $1.9m including inflation).




Renewal / Replacement Program
An asset renewal / replacement forecast was also developed on the basis of the expected
remaining life of the different components of the buildings following the onsite assessment. As the
overall condition of the facility is considered good, condition based renewal works of approximately
$500k are not likely until 2023 relating to HVAC and lighting system replacements. Significant
levels of expenditure ($9 million) were estimated by the consultants in 2028 when fit out and fittings,
and fire and security systems would require replacement. For the purposes of the investigation it
was assumed that half of these costs would be smoothed into future years once actual condition
is assessed.




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