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Addendum Agenda - Ordinary
Meeting – Tuesday 22 May 2018
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CL18.124 Shoalhaven
River Pontoons
HPERM Ref: D18/166397
Group: Assets
& Works Group
Section: Asset
Management
Purpose / Summary
A Councillor Briefing was
undertaken to discuss this project on Wednesday 17 May 2018. This report
provides an updated budget and allows Council to reconsider the project based
on this information. It is recommended this report and recommendation be
considered in conjunction with and replace Item SA18.107 on the business paper.
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Recommendation
That Council:
1. Proceed
to tender for the additional pontoon project at Greys Beach North Nowra. This
will require an additional budget of approximately $4,400 (exc GST) funded
from savings in the Local Road Repair Program Callala Beach Road Stage 1 (Job
No. 85877).
2. Proceed
with the Shoalhaven River Special Event Pontoon Project minimising costs by
using flexible anchorage. This will require an additional budget of
approximately $63,000 (exc GST) funded from savings in the Local Road Repair
Program Callala Beach Road Stage 1 (Job No. 85877).
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Options
Options
1. As recommended
Implications:
a) Whilst a flexible anchoring system will be designed and
certified by a qualified maritime engineer, the risk remains that the anchoring
system will not be as robust as a rigid piled anchoring system. The risk of
failure is elevated during flood events.
b) The asset life of a flexible anchoring system is
expected to be approximately 20 years, which is less than a rigid piled system
(40 years); however, piles could be retrospectively fitted if funding was
available.
2. Proceed with the current
designed higher cost engineered rigid pile system.
Implications: Not affordable within current budget
and Council would need to identify an additional funding source.
3. The Greys Beach project
will still require rigid piles because of its intended use by commercial
vessels however smaller piles with a breakaway system to restrain the pontoons
during flood will be allowed as part of the design and construct process.
Background
This report relates to two separately
funded projects. These are:
1. Greys
Beach Boating Upgrade/Pontoon – part funded from the NSW Boating Now
Program.
Stage One of the project has
been completed that incorporated design works for the foreshore/carpark
(construction not funded) and upgrading of the boat ramp manoeuvring area.
Stage Two relates to
provision of a pontoon system on the upstream side of the existing Greys Beach
ramp that will be suitable for use by both recreational and larger commercial
boats such as the Shoalhaven River ferry. Provision of an upgraded
heavy-duty pontoon at Greys Beach was identified by Council in 2012
(MIN12.1058). An upgraded pontoon will allow the Shoalhaven River ferry (and
other commercial users) to use this facility instead of Nowra Wharf which is
more restrictive in terms of parking and pedestrian accessibility. This project
has strong support from aged and disability groups.
2. Shoalhaven
River Special Event Pontoons to support the Shoalhaven River Festival and other
special events.
Second hand pontoons were purchased in 2016 and were used
for the river festival in 2016 and 2017 using temporary anchorage.
Detailed design and
environmental approval have been completed for both projects.
Council sought targeted
quotations in 2017 for installation of rigid piles to support both projects.
Only one response was received that significantly exceeded budget. To minimise
project costs, Council staff have since been exploring alternative low-cost
design solutions for both projects including:
· Lower
cost/higher risk pontoon anchoring systems.
· Incorporation
of the special event pontoons into the Greys Beach project to minimise both
pontoon and mooring requirements.
Community Engagement
The projects were advertised in
2017 and no negative comments were received, both projects have relevant
environmental approvals in place and are ready for construction.
Financial Implications
$219,000 balance is remaining in
the Greys Beach Project (Job 82700) from a budget of $400,000 that has been
part funded with a $295,000 grant from the NSW Boating Now Program, and a
Council contribution of $105,000.
There is no funding remaining in
the Shoalhaven River Special Event Pontoons Project.
Budget required to complete both project (using flexible
anchoring) is estimated as follows:
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Item
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Greys
Beach Pontoon
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Special
Events Pontoons
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Lower
cost flexible anchor design and certification
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$5,000
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$5,000
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Pontoon
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$80,000
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existing
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Piles
(including mobilisation)
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$70,000
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Not
used (Note B)
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Walkway/gangplank
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$68,400
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$18,000
(Note A)
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Flexible
anchoring
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$40,000
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Total
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$223,400
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$63,000
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Budget
available
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$219,000
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$Nil
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Estimated
Budget Shortfall
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$4,400
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$63,000
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Note:
a) Nowra Sailing Club was
successful in obtaining a grant of $17,760 for the NSW Sports grants for
provision of one walkway at Nowra Wharf. Installation of an additional walkway
(already purchased) needs to be funded at the second pontoon location adjacent
Nowra Rowing Club ($18,000 allowed).
b) Rigid piling (if
utilised) would incur an additional cost of $50,000, plus mobilisation /
demobilisation which can be variable upon market demands.
*****
As discussed with the CFO, the remaining funds from the
Local Road Repair Program project Callala Beach Road Stage 1 (Job No. 85877)
could be redirected to the wharf project at Greys Beach. A rehabilitation
project was completed on Callala Beach Road this year, but rehabilitation was
combined with grant funded upgrades to the intersection with Forest Road,
providing savings. A second stage of works on Callala Beach Road are planned
for the balance as per the Local Road Repair Program if funds were not required
to balance overspends.
Risk Implications
1. Minimising damage to
pontoons and preventing the assets from floating downstream during major flood
events is the largest risk. To mitigate the risk, it is proposed that safety
lines be provided similar to what is provided on the current light duty
floating pontoon facility located on the downstream side of the existing Greys
Beach boat ramp.
2. There remains a risk
that tenders may exceed budget for the Greys Beach project.
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Addendum Agenda - Ordinary
Meeting – Tuesday 22 May 2018
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CL18.125 Berry
Broughton Vale RFS Station Site Works
HPERM Ref: D18/167401
Group: Assets
& Works Group
Attachments: 1. Request
for Funding Support - Broughton Vale / Berry Rural Fire Station - Site Works ⇩
Purpose / Summary
The Purpose of this report is to
allow Council to consider funding options for the proposed Berry Broughton Vale
RFS Station. This report is only necessary and to be considered in conjunction
with Item CL18.108, if the rescission motion (Item CL18.107 on the business
paper) is CARRIED.
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Recommendation
That with respect to the proposal to construct a new
Berry & Broughton Vale Rural Fire Services Station Council:
1. Bring forward
the replacement of the effected water mains that run through the site (given
that the development that impacts on the mains is for the provision of
emergency services facilities) at an estimated cost of $160,000 exc GST; and
2. Fund the water
main works from the Water Fund budget, 2018-2019 financial year, [excluding
any works that are legitimately funded by the NSW Ambulance project (ie as
per their DA Consent 17/1597)];
3. Complete the
site improvement works (estimated cost $410,000) in the 2018-2019 financial
year using General Fund loan funds; and
4. Continue to
make representations to the State Government to fund the complete Project
costs for this station under the RFS budget process (future years if
necessary) so council ultimately only pays it’s 11.7% share.
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Options
Option 1: This is the position adopted by Council at
the Ordinary Meeting on the 24 April 2018. If the rescission motion is defeated
this will by default be Council’s position.
That Council advises the District Manager,
Shoalhaven RFS that Council is unable to fund the estimated $400,000 (exc GST)
additional cost of the Berry & Broughton Vale Rural Fire Service Station.
Advantages (as outlined on the
24 April 2018)
· this
position is consistent with Council’s current practice with regards to
assisting the State Government
· nil
additional cost to Council and council’s share remains at the 11.7% based
on the 20-year average cost of RFS services
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Disadvantages (as outlined on
the 24 April 2018)
· May
lead to a reduced scope of works and project delays
Option 2: If the rescission motion is carried a
co-funding arrangement could be:
That with respect to the proposal to construct a new
Berry & Broughton Vale Rural Fire Services Station Council:
1. Bring forward
the replacement of the effected water mains that run through the site (given
that the development that impacts on the mains is for the provision of
emergency services facilities) at an estimated cost of $160,000 exc GST; and
2. Fund the water
main works from the Water Fund budget, 2018-2019 financial year, [excluding any
works that are legitimately funded by the NSW Ambulance project (ie as per
their DA Consent 17/1597)];
3. Complete the
site improvement works (estimated cost $410,000) in the 2018-2019 financial year
using General Fund loan funds; and
4. Continue to make
representations to the State Government to fund the complete Project costs for
this station under the RFS budget process (future years if necessary) so
council ultimately only pays it’s 11.7% share.
Advantages
· Seeks
to provide a compromise solution so the project can proceed.
· Clearly
outlines Council’s support for the proposal
· Seeks
to have the State Government accept that the total costs of such projects
should be recognised within normal RFS budget process rather than expect
council ratepayers to pick up additional costs associated with the complexities
of this site.
Disadvantages
· May
create an expectation that similar support will be provided for future
projects.
Option 3: If the rescission motion is carried Council
determine a different option.
Background
At the Ordinary Meeting on the
24 April 2018 Council resolved as follows (Vide minute no MIN18.314)
“That Council advises the District Manager,
Shoalhaven RFS that Council is unable to fund the estimated $400,000 (exc GST)
additional cost of the Berry & Broughton Vale Rural Fire Service
Station.”
This report is provided as Attachment 1 for Councillors
convenience.
Following this decision, a rescission motion was lodged, and
thus this resolution has not been acted upon.
The rescission motion was discussed at the Strategy &
Assets Meeting on the 15 May 2018 at which the matter was deferred to the
Ordinary Meeting on the 22 May 2018
At a Councillor briefing held on the 17 May 2018 the
following points were made:
· Council’
contributions to RFS recently (ie 11.7% of Rural Fire Fighting Fund minus
Volunteer and Statewide Support – VASS contributions) Source: report to
Council 19 April 2016.
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Total Council
o 2014/2015
$922,287
o 2015/2016
$943,589 approx
o 2016/2017
$921,258 approx
· The
proposed site (old North Street Road Reserve) is Council owned
· The
land value of the site would be in the vicinity of $500,000.
· The
site requires manoeuvring of RFS vehicles on the adjoining NSW Ambulance site.
· The
NSW Ambulance Site works have progressed with changes to the approved plans
(DA17/1597). The changes affect the RFS site (fill quantities and water
services works) and at the time of writing this report the entity responsible
for approving the changes was unknown.
· The
revised Preliminary Estimate of costs is for the RFS proposal
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Concept Design (Actual)
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$23,858.30
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Detailed Design and Approvals
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$86,300.00
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Site Costs (Note this has
increased slightly since the 24 April 2018 report)
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$410,000.00
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Water Main
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$159,280.00
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Construction Costs
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$912,421.00
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Total
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$1,591,859.30
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· The
completed RFS building will become a Council asset (based on the existing
State/Local Government arrangements).
· At
this stage the RFS has not committed funding to the construction of the station
other that $50,000 to complete concept plans and formal consents.
Water Main
The RFS site is the old North Street Road Reserve and thus
the site contains two Water Mains owned by Council. The water mains are old AC
style mains and will need to be reconstructed prior to the site being modified
to accommodate the RFS building. These mains run close and parallel to the NSW
Ambulance boundary and it was understood (based on the development consent) that
the NSW Ambulance works would include reconstruction of the full length of the
water mains through the RFS site as part of their works, (which encroached onto
the RFS land). Given the site works undertaken to date (ie the construction of
a retaining wall along the shared boundary, the approval of which was not clear
at the time of writing this report) it is thought that the bulk of this
reconstruction will be undertaken by the NSW Ambulance Service.
Option WM1: Council not fund the works as the remaining life
is more than a few years and thus the cost to reconstruct the water main is not
in Council short to medium works programs.
Option WM2: Given that the development is impacting on the
water main is relating to the provision of emergency services, Council funds
the mains reconstruction works that is not legitimately funded by the NSW
Ambulance project (ie as per their DA Consent 17/1597). Council bring forward
the replacement of the effected water mains that run through the site
(estimated cost $160,000 exc GST) and fund the works in the 2018-2019 financial
year, excluding any works that are legitimately funded by the NSW Ambulance
project (ie as per their DA Consent 17/1597).
Detailed Design
At this stage the detailed design work has not been undertaken
and thus a construction budget with a high degree of certainty is difficult to
ascertain. Recent experience with other RFS construction sites is as follows;
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Allocation
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Lowest Tender
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Contingency
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Shortfall
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% increase
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Kangaroo Valley
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$400,000
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$582,168
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$17,832
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$200,000
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50%
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Kioloa
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$370,000
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$589,282
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$10,718
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$230,000
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62%
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Shoalhaven Heads
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$675,000
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$975,344
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$19,507
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$319,851
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47%
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Committing to construction of the station prior to Detailed
Design work being completed and estimates (based on local market conditions)
could result in a high risk of inadequate funding being allocated.
Option DD1: That Council supports the allocation of RFS
funds (to which Council contributes approximately 11.7% based on the 20-year
average cost of RFS services) for the detailed building design work in
2018-2019 and thus allow an accurate Construction Cost to be determined for
allocation by the State Government in future years.
Option DD2: That Council leave this matter for the RFS to
manage. Construction funding bids may be competitive and funding from the State
Government may not be available for construction after 2018-2019.
Site Works
The RFS site requires 1 to 2 metres of fill across the site
and a retaining wall along the northern edge of the building footprint. Ideally
these works should be done well in advance of the building construction to
minimise the risks and variables in pricing the building work. The RFS has
requested that Council fund these works with the view that in providing the
land for the site the Council should make land available that is ready for
building works to proceed.
Option SW1: Given that the development is for the provision
of emergency services and Council owns the land on which the development is
proceeding that Council fund the site improvement works and that given maturity
of the 2018-2019 draft budget process these works be funded from loan funds.
Option SW2: That Council advise the RFS (District Manager,
Shoalhaven) that Council is unable to fund the estimated $410,000 (exc GST)
additional cost of the Berry & Broughton Vale Rural Fire Services Station.
Policy Implications
Option two would be a departure
from Council’s current practice which is to not assist the State
Government with funding for services that it is responsible for.
Financial Implications
Option two is unfunded in Council’s long term
financial plan, however if the allocation is made during the budget adoption
process these implications will be managed at that point.
For Councillors information, a commercial loan of $400,000
would attract an accumulative interest bill of approximately $90,000 over ten
years. An internal loan from one of council’s Reserves (assuming
funds are available) would attract $0 interest. The CFO will be presenting a
report to the same Council meeting outlining the strategy here, if loan funding
is required.
The NSW Ambulance Station and the Proposed RFS Station have
been co-located at Berry to reduce the total site footprint and reduce the area
and cost of pavement required to manoeuvre vehicles. Perhaps Council could make
a request to the State as follows:
That Council write to the State Member Garth Ward MP
seeking support for any savings from the construction of the NSW Ambulance
Station at Berry being made available to the proposed NSW Rural Fire Service
Station given that the Ambulance Station and the proposed RFS Station have been
collocated at Berry to reduce the total site footprint and reduce the area and
cost of pavement required to manoeuvre vehicles.
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Addendum Agenda - Ordinary
Meeting – Tuesday 22 May 2018
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CL18.126 Tenders
- Kioloa Rural Fire Station Extension
HPERM Ref: D18/167870
Group: Assets
& Works Group
Section: Project
Delivery & Contract
Purpose / Summary
To inform Council of the tender
process for Kioloa Rural Fire Station Extension.
In accordance with Section
10A(2)(d)(i) of the Local Government Act 1993, some information should remain
confidential as it would, if disclosed, prejudice the commercial position of
the person who supplied it. It is not in the public interest to disclose this
information as it may reveal commercial-in-confidence provisions of a contract,
diminish the competitive commercial value of any information to any person
and/or prejudice any person’s legitimate business, commercial, professional
or financial interests. This information will be considered under a separate
confidential report.
This report is submitted
directly to the Ordinary Council Meeting pursuant to Clause 3 of
Council’s “Acceptance of Tenders – Reports to Council”
Policy.
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Recommendation
That Council consider a separate
confidential report in accordance with Section 10A(2)(d)(i) of the Local
Government Act 1993.
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Options
1. Consider the separate confidential
report.
2. Council could propose an alternative.
Details
Council called Tenders for the Kioloa Rural Fire Station on
13 February 2018 which closed at 10:00am on Tuesday 6 March 2018. One (1)
tender was received at the time of closing and is shown in the table below:
Tenders Received
Tenders were received from the following:
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Tenderer
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Location
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Edwards Constructions (NSW) Pty Ltd
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Nowra 2541
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Details relating to the evaluation of the tenders are
contained in the confidential report.
Financial
Implications:
Funding is sourced from Rural
Fire Service budget for 2017/2018.
