2019-10-08 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                 8 OCTOBER 2019


Refer Attachment 3 – 1819T084 Tender Evaluation Summary

5.    Program
The estimated works program is as follows:
   Carpark complete prior to Christmas 2019.
   Community house building complete by September 2020.
   Landscape works complete prior to Christmas 2020.

Previous Council Consideration
Nil

Finance
Capital costs
The below table identifies the estimated project capital costs of the tendered stage 3 elements.

Table 1. Capital Costs
Component                                                                  Cost (excl. GST)
Cost to date (13 Sept 2019)                                                   $281,162
Tendered contract value (new Community House, new carpark,                  $3,190,671
Landscaped greenspace)
Consultants and staff costs                                                    $105,520
Portable Long Service Leave                                                     $17,100
TOTAL                                                                        $3,594,453
Contingency 20%                                                                $718,891
PROJECT COSTS                                                                $4,313,344
The total project costs are within budget and provides sufficient funds for the remaining elements
of stage 3.
Whole of life cost analysis
In accordance with Council internal policy, a detailed analysis of the expected operating,
maintenance, and depreciation for the Rufous Street Stage 3 infrastructure and services is under
development. The methodology and analysis are well-developed, with operating and
maintenance cost forecasts developed to reflect expected levels of service for the assets, along
with consideration of more direct, fixed operational costs (such as electricity, insurance, cleaning)
that rely on recent experience with similar Council infrastructure.
Specifically, the whole of life costing considers:
   Annual operating costs – the ongoing costs required to keep the asset in operation.
   Annual maintenance costs – the ongoing costs required to keep the asset at a desired
     condition level.
   Depreciation – consumption of assets and infrastructure over an estimated useful life.

It is important to note that given the design and construct nature of the tender process, the
finalisation of the whole of life costing exercise will occur following award of the tender and
completion of the detailed design and costings by the contractor. Based on current estimated
construction costs, the analysis is outputting annual maintenance and operating costs in the
vicinity of $250k per annum, with ongoing depreciation expense in the vicinity of $150k per
annum (with a detailed breakdown by asset type yet to be finalised). Assuming a total future
ongoing operating budget impact of $400k, this equates to a general rate impact of approximately
0.8%.




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