2019-08-12 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                        12 AUGUST 2019


The carpark and pedestrian safety improvements works, identified previously as necessary
community infrastructure for the playground project, were included in the grant application and
subsequently form part of the overall capital cost. The latest estimate to deliver the playground
and carparks is broken down as follows:

 Project          Item                     Total        Comments
 Playground       Finalise                 $4,451,000   To be finalised during procurement phase
                  Design
                  Delivery                              Based on latest concept design July 2019
                  (construction)
                  Contingency                           Contingency due to unknowns related to market
                  (10%)                                 costs and utility services
 Carparks &       Finalise                  $399,000    To be finalised during procurement phase
 Pathways         Design
 Improvements
                  Delivery                              Based on latest detailed designs July 2019
                  (construction)
                  Contingency                           Contingency due to        unknowns     related   to
                  (10%)                                 underground services

These estimates will continue to be refined as the procurement phase progresses.

b.   Whole of Life Cost Analysis

In accordance with Council internal policy, a detailed analysis of the expected operating,
maintenance and depreciation costs for the playground infrastructure and services has been
developed with external support, along with extensive input from Council staff and design
consultants. The methodology used for modelling focused on a zero base approach associated
with allocating service levels needed to sustain an adequate level of annual maintenance, along
with more direct, fixed costs that could be drawn from recent experience with similar Council
infrastructure (for example: maintenance costs, electricity usage, security patrol, insurance,
contracted services).

The analysis adopted a worse case position regarding operations and maintenance to ensure
that financial sustainability impacts on Council and the community can be adequately considered.
Based on the analysis the graph below outlines the annual operating budget implications over the
next 10 years (noting that this is not a year on year increase provided funding occurs in year 1).
The annual operating budget impact equates to an estimated one off $11 or 1% increase in the
general rate.

 $600,000

 $500,000

 $400,000

 $300,000

 $200,000

 $100,000

      $-
              Year Year Year Year Year Year Year Year Year Year
               1    2    3    4    5    6    7    8    9    10

              Operating      Maintenance     Depreciation



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