Richard Lindsay, Danny O Donnell

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2 Information Document Reference Authors Sign off Version Waiau Pool Feasibility Study Richard Lindsay, Danny O Donnell Craig Jones Final Report Date 7 July 2017 Disclaimer: Information, data and general assumptions used in the compilation of this report have been obtained from sources believed to be reliable. Visitor Solutions Ltd has used this information in good faith and makes no warranties or representations, express or implied, concerning the accuracy or completeness of this information. Visitor Solutions Ltd is acting as an independent consultant. In doing so, the recommendations provided do not necessarily reflect the intentions of the client. Interested parties should perform their own investigations, analysis and projections on all issues prior to acting in any way with regard to this project. Visitor Solutions Waiau Pool Feasibility Study June

3 EXECUTIVE SUMMARY The Waiau Pool was destroyed in the November 2016 earthquake event that struck the Hurunui and Kaikoura communities. The pool was developed in the 1920 s and the community is looking to understand what is a feasible replacement solution. This feasibility study has concluded that it is feasible to construct a replacement pool in the community of Waiau and the preferred location is at the school grounds. This location is central and encourages both school and wider community use. Given there are no indications of any strong growth or decline in population numbers being projected in the next 30 years the development should be aimed at catering for current use-levels. This is subject to whatever increases in activity participation can be achieved through specific programming initiatives. The operating model is predicated on the Waiau School Board of Trustees overseeing this asset. Equally importantly; the pool is operated under a voluntary structure, similar to the previous Waiau pool. The feasibility study concluded that: A replacement of the Waiau Pool is feasible, provided the ongoing operational costs can be minimised through continued volunteer input. The preferred site for the new pool is on the existing school grounds. This site was regarded as meeting all usage criteria. The preferred pool option consists of a main pool and water areas for both Learn-to-Swim and Toddlers water play. The configuration of these areas will be determined with the preferred contractor. Any specialist swimming needs can be accessed in the wider network (e.g. competition and hot water pools at Hanmer Springs) The preferred pool option is most likely to be in the capital cost range of circa $1 1.2 million excluding site infrastructure and a potential solar heating system Should the funds not be available to develop the preferred option a value engineering exercise can occur to reduce the scope of the development to give the best opportunity for a pool will be built in Waiau. This will likely involve developing a smaller single tank (rather than a main pool and learn to swim pool). The feasibility study recommends that: 1. A pool complex l is developed which is appropriate for the size of the Waiau community. 2. Seek independent legal and project management advice in developing a detailed tender brief that can be released to a selected number of D&B companies to confirm total project costs (including an undisclosed contingency). 3. A skilled, experienced Aquatics Project Manager is engaged as the client representative for this development, from tender brief to construction and commissioning. 4. Once the procurement process has been undertaken and a selected contractor identified the obligations of each party should be clearly agreed in a contract. 5. Operational costs continue to be minimised through the voluntary effort of the wider Waiau community. 6. The client seeks third party capital funding support for the facility. Waiau Pool Feasibility Study June

4 CONTENTS Executive Summary Introduction Site Context Demographic Analysis of Waiau and Surrounds Pool facility inventory Assessment Options assessment Preliminary Operational Model Governance and Management Options Road Map Conclusions and Recommendations 30 Appendix 1 Procurement Strategy 31 Appendix 2 Cost Estimates 33 Waiau Pool Feasibility Study June

5 1.0 INTRODUCTION 1.1 Purpose of Report/Feasibility Study The Waiau Pool was destroyed in the November 2016 earthquake event that struck the Hurunui and Kaikoura communities. The pool was developed in the 1920 s and the community is looking to understand what is a feasible replacement solution. The previous pool was used for local swimming requirements and was a focal point in this small, rural community. This feasibility study primarily looks at what Is the best replacement pool option for this community. A pool has been in operation for over 90 years so there Is evidence of a long-term sustainable model that has served Waiau and the surrounding area. The challenge Is to ensure that any future asset Is affordable, both from a capital and ongoing operating cost perspective. This report looks at a series of options available to the community and identifies a preferred site and pool configuration. Preliminary capital estimates are given to guide the Pool Committee in decision making along with operational cost estimates. Waiau Pool Feasibility Study June

6 2.0 SITE CONTEXT The previous Waiau Pool was located at 36 Parnassus Street and was destroyed by the November 2016 earthquakes. The pool was established in the 1920 s and serviced the township of Waiau and surrounding districts. The Waiau Pool was operated using a key system. Users would purchase a seasonal key giving them access to the community facility for the duration of the season. The pool was usually opened from mid-november until March. The pool was managed by the Waiau School Board of Trustees and day to day operations and maintenance were the responsibility of volunteers. The school was the primary user of the facility during the first term of each year. Other regular users included learn to swim participants and recreational swimmers, either from within the district or visitors to the nearby Waiau Holiday park who could purchase short term passes. Operations of the pool were the responsibility of volunteers and a supervising Board of Trustees representative. Plate 2.1 Waiau Pool after November Earthquakes (source: stuff) Waiau Pool Feasibility Study June

7 The previous pool was located on Ministry of Education land 1 approximately 500 metres from the current school site. The following aerial view shows the relative locations of the old pool and the Waiau School. Map 2.1 Map of old pool site and Waiau School circled (source: Google Maps) 1 The location of the previous Waiau School Waiau Pool Feasibility Study June

8 3.0 DEMOGRAPHIC ANALYSIS OF WAIAU AND SURROUNDS When assessing the need for a new pool and the feasibility of a facility in the district it is important to consider any changes to the demographic profile of Waiau. It is acknowledged that post-earthquakes there has been a change in the population at Waiau. It is difficult to predict what medium to long term impact this may have on the demographics of the Waiau community. However, looking at the population changes in Christchurch and surrounding districts post the February 2011 earthquakes we know that after several months people began to return. We have made the same assumption for Waiau and the surrounding community, and given the relative small numbers within the community, it is unlikely that the population will change significantly enough to warrant further investigation. The main population features investigated are population numbers and age-group profiles. Recent and projected future trends are highlighted. The focus was on the Waiau township and its immediate surrounds, as represented by the Waiau Area Unit (AU). Data from the larger Amuri Area Unit, covering the extensive rural areas surrounding Waiau including around Culverden and Hanmer Springs, and for the Hurunui District overall were noted for comparative purposes. 3.1 Overall population numbers and trends The recent population and growth trends of the main background catchment areas for a new Waiau Pool are summarised in Table 3.1. These shows that the rates of overall population growth in the last 13 years have been larger in the wider District overall than in Waiau itself. However, holding a relatively steady population in a small rural town environment is generally a positive result compared with many small towns throughout New Zealand. This stability is reinforced by the Waiau School roll remaining consistently at approximately just over 50 for the last 15 years since Table 3.1: Recent Population Change 3 ( ) change % change Waiau AU Amuri AU 1,347 1,530 1, Hurunui District 9,885 10,476 11,529 1, Looking forward over the next 30 years assuming current projections remain accurate, it is apparent that base numbers will be maintained at similar levels in Waiau. At the same time numbers are projected to grow elsewhere in the District, and particularly in the rurally focussed Amuri Area Unit. This may indicate that greater numbers may become apparent in those rural areas surrounding the immediate Waiau township area. 2 It Is acknowledged the school roll has declined post-eq. (Source: Education Counts - School Roll data). 3 Source: Statistics NZ Census Counts, Waiau Pool Feasibility Study June

9 Table 3.2: Projected Future Population Change 4 ( ) change % change Waiau AU Amuri AU 1,720 1,860 2,000 2,150 2,270 2,390 2, Hurunui District 12,000 13,000 13,500 13,950 14,300 14,600 14,750 2, Added to overall population growth will be significant changes in population composition, most significantly around age-group proportions. 3.2 Age-Group and Trends Looking ahead over the next 30 years, Figure 3.1 shows a broad pattern in Hurunui District overall that is typical of many population areas in New Zealand. Here numbers in the older (65+) age group increase noticeably, while those in lower age-groups are stable or decline a little. Figure 2.1: Age Group Number projections: Hurunui District However, the pattern in Waiau is slightly different (Figure 3.2). 4 Source: Statistics NZ Subnational Population projections medium series Waiau Pool Feasibility Study June

10 Figure 3.2: Age Group Number Projections: Waiau Here the growth in those aged 65+ is less acute, with the main feature being a decline in those aged Those aged 0-14 and actually increase a little in number. Overall this pattern suggests a stable maintenance of the population number without any noticeable growth or decline trends. In fact the Waiau area Unit was the only one in the area where it was found that the proportion of youth aged 0-14 was actually projected to increase their proportion in the population. The others investigated were Amuri, Culverden and Hanmer Springs area units and Hurunui District overall. In Waiau the proportion aged 0-14 was projected to increase from 19% (2013) to 21% (2043), while it declined a few percent in each of those other areas. 3.3 Demographic Summary The main finding from this section is that the current population in and around Waiau is projected to remain largely at current levels. There are no indications of any rapid growth or decline in population numbers being projected in the next 30 years. Any development should be aimed at catering for current use-levels, subject to whatever increases in activity participation can be achieved through specific programming initiatives and new facilities developments. Waiau Pool Feasibility Study June

11 4.0 POOL FACILITY INVENTORY ASSESSMENT There is a network of pools servicing the Hurunui community. The Hurunui area is made up of a series of smaller communities from Leithfield and Amberley in the South to Cheviot, Waiau and Hanmer Springs in the North. Historical local government boundaries combined with the wide geographic spread of the communities sees a network of small (mainly) outdoor swimming pools located in the townships within Hurunui. Aside from the Hanmer Springs Thermal Resort the rest of the network is significantly aged. Hanmer Springs Thermal Pools is seen as the jewel in the crown of recreation (and tourism) facilities in the Hurunui area. These pools are a major drawcard to the wider community and as well as domestic and international tourists. The Hurunui District Council operate two pools; Amberley Pool and the Hanmer Springs Thermal Pools (being the only year-round facility within the area). Community groups and schools operate four other summer only pools with varying levels of support (in the form of annual grants) from the Hurunui District Council. Table 4.1 The Hurunui Community Pool Network Name Address Distance from Waiau Size Rotherham Pool 71 George Street, Rotherham, km 22 metre pool and small paddling pool Culverden Swim Club Pool 9 Montrose Avenue, Culverden, 7392 Open summer months only 23 km 22 metre outdoor pool Small paddling pool Open summer months only Cheviot Pool Community Cheviot School, 36 Hall Street, Cheviot, km 25 metre heated pool Open summer months only Hanmer Springs Thermal Resort 42 Amuri Ave, Hanmer Springs km 25 metre outdoor heated pool integrated with a wide variety of thermal pools Open year round Hawarden Club Pool Swimming Allandale Hawarden, 7385 Road, 51 km 25 yard outdoor pool and small paddling pool Open summer months only Amberley Pool Douglas Road, Amberley, km 25 yard covered pool and toddler pool. Outdoor LTS pool. Open summer months only Waiau Pool Feasibility Study June

12 5.0 POOL USAGE The previous Waiau Pool has been available for wider community use via a key entry system. Swimmers paid a nominal seasonal fee to have access to the facility while casual swimmers were charged a small entry fee 5. The pool was generally open from mid-december to mid-march each year. The following table outlines the approximate use of the previous facility 6. Table 5.1 Previous Pool Usage Estimates User group Approximate Numbers Approximate Participations Community swimming lessons School Use year 1& School Use year 3& School Use year 5& Community Keys Keys 8,000-10,000 note 7 Casual Swims (honesty box) Totals 10,130-12,180 participations Other user groups included playcentre and pre-school along with the visitors to the Waiau Holiday Park. The table illustrates user levels that reflect a rural township and surrounding area. The emphasis of use is on both in-school and community learn to swim and recreation swimming for families. Any new development needs to consider the main user types to ensure a facility the is developed meets the needs of the Waiau community. 5 Casual use was $2 (adults) or $1 (child) per swim. Casual swimmers are an estimate of swimmers who paid a casual fee. No records were kept of the split between children and adult. 6 Approximations based on conversations with committee and information forwarded from Waiau School. 7 Feedback from the Pool committee estimates keys/annum, each used 50 times by an average 4 family members (therefore 8-10,000 participations). Waiau Pool Feasibility Study June

13 6.0 LOCATION ASSESSMENT 6.1 Site Assessment Factors There are several key factors that should be considered when determining a preferred site location for the new Waiau Pool. These include: Road frontage If a pool is going to be a shared school and wider community asset like the Waiau Pool, then the location on a site is important. The pool needs to be accessible from the road by the wider community. In some instances, school community pools have been developed on school grounds, but tucked away out of easy sight and therefore community usage is lower than anticipated as there is a perception the pool is only for school use. Ownership and Management The previous Waiau Pool was located on Ministry of Education Land (former school site on Parnassus Street), even though it was away from the current school grounds. As such it was operated as part of the Waiau School. A new pool developed on MoE land would be able to be operated by the Waiau School. A location that is not MoE land would require a different ownership, governance and management structure. Another advantage of MoE land is the designation of the land already meets the requirements of a pool and therefore streamlines the planning approval process. Proximity to Users Any sport and recreation facility that is developed to serve a community should be located in a reasonable proximity to these users. Given the Waiau community is relatively small there are few locations that would not be considered generally acceptable. A further lens on proximity would be the proximity to the key users groups, in this instance the school. Proximity to Complementary Facilities Many newer sport and recreation facility developments consider the advantages of co-locating with other similar facilities (e.g. it is common practice to develop indoor courts adjacent to aquatic facilities). This colocating (or hubbing ) can be beneficial in reducing duplication of resources through shared administration and other spaces and creating added vibrancy and foot traffic. Space to Accommodate Facility A critical consideration is available space to accommodate the proposed facility. This would include space for car parking, a safe assembly area outside the facility for groups and ancillary buildings if they are not part of the main pool complex (chemical room, plant room etc). Cost to Occupy Land The cost to purchase land can be prohibitive for some community projects. Care should be taken in selection of parcels of land that the cost of land is factored into any development. Waiau Pool Feasibility Study June

14 Table 6.1 Comparing Site Assessment Factors Option One Option Two Option Three Option Four Option Five 36 Parnassus St 27 Leslie St 18 Clarence St Section 7 Waiau Domain (Old School Site) (Catholic Church Site) (Temp. accomm. site) (School site) Good Road Frontage Governance Management and School Community Community School Community Proximity to Users Proximity Complementary Facilities Available Space to Cost to Occupy Land Summary: Given the small size of Waiau the differences of the various sites are limited. Essentially the benefits of being located on school grounds are the main contributing factor to the new school site being recommended as the preferred option.

15 Map 6.1 Preliminary Overlay of Preferred Site 8 approximate scale 1:1,250: Approximate dimensions of required site 40m*20m 8 Requires confirmation. Excludes car parking requirements

16 6.2 Preferred Site Location The preferred site is the current school grounds. The Ministry of Education (MoE) has indicated they will allow the construction of a new pool on this site. Key considerations in this recommendation are that the preferred option needs to be: On MoE land to ensure efficient management and governance of the asset, Preferably unencumbered by existing fixed assets to avoid replacement/removal costs, located close to user groups to maximise student learning time and minimise travel time, No resource consent is required to construct a pool on school site, Only one additional (disability) car park will be required, There is a well onsite that can potentially be used as the water supply for the school. The preferred site has also been considered with other sites on the school grounds. There are some factors that lead to Section 7 (within the school site) being identified, including: The sight is slightly more elevated than most of the school grounds, minimising the risk of flooding 9, It has road frontage, allowing community use to occur without disruption to student learning Ownership of Pool in the Event of School Closure There is some concern in the community that should the school close, access to the pool by the community may be lost. The MoE has stated that there is no intention or plan to close Waiau School so this would be an unlikely scenario in the foreseeable future. In the unlikely event of a school closure, the current Educational Development Initiative Memorandum of Agreement signed by a Closing school has the following section in it which is relevant: Section 6 PROPERTY AND BUILDINGS 6.1 The Ministry of Education will assume responsibility for the XXX School site as from the Gazetted date of closure. The XXXX School property will be disposed of in accordance with section 40 of the Public Works Act 1981, related local authority legislation and the protection mechanisms in respect of Māori land claims. 6.2 It is agreed that in the event of any community owned buildings needing to be removed from the XXX School site that this happens within 3 months of the closure date. In the event that removal does not take place the Ministry may default to an equity payment for the building(s). 6.3 It is agreed that the Ministry of Education will recognise the proven community contribution for identified assets. The value of the assets will be determined at the time of the property s disposal and will be proportionate to the net disposal proceed for the total property. The following assets have been identified as having a community component: 9 Noting that the school site is considered to be in a flood zone. Waiau Pool Feasibility Study June

17 7.0 OPTIONS ASSESSMENT The following section provides a set of options to replace the Waiau Pool. These options are based on discussions with the Pool Committee group and serve to demonstrate the differences the options bring. There are variants within each option that can be explored once a preferred option is determined. The following series of tables outline the three high level options considered: Option One: Outdoor 25 metre pool with integrated LTS area in the same pool area (25m length) plus small toddlers pool, Option Two: Outdoor 25 metre pool with additional learn to swim and toddlers spaces, Option Three: Covered 25 Metre pool with additional learn to swim and toddlers spaces. 7.1 Option One Outdoor 25 metre pool with integrated LTS area in the same pool area (25m length) plus small toddlers pool. Space Size Notes Main Pool area (25m *7.5m) Plus ramp 25* 7.5 = 187.5m 2 Integrated LTS end would be 6m long * pool width (approximately 45m 2 ). This area could be roped off for LTS and then opened up again for lane swimming Pool Depth variable ( mm deep 10 ), gradual sloping with deep end of 1.3m 1.8m (no more than 1:15 gradient as per NZS4441) Toddlers Area 4m*3m = 12m 2 Total Water Area m 2 Small area for introduction to water play. Depth 300mm-500mm Concourse Concrete surrounds (one side and end deeper for gathering) Shaded Picnic Area Varies Area where people can congregate and recreate out of the sun Fencing Lineal metres As per legislation Change Area Minimum Male/Female/Accessible as per Building Code Small change area for school groups to change each change to cater for up to 12 children max Fixed change benches Chemical Storage Dry, lockable space to secure chemicals Pump Room Minimum space required Lockable Equipment Storage Room Minimum space required Lockable Adjacent to change 10 NZS4441 specifies depths for LTS pools of between mm. Pools for teaching babies to swim often have a bench recessed in to a wall of the pool at up to 300mm below water level in a section of a pool that is 1.200mm deep. This can be used to allow an instructor/carer to stand in the water and encourage the baby to swim off the bench. Waiau Pool Feasibility Study June

18 Option one delivers a pool that would allow all key user groups to undertake their activities. There is some compromise required as lane swimmers would generally have either a reduced distance per length say 20 metres during learn to swim lessons and shallow end that may inhibit some activities. 7.2 Option Two Outdoor 25 metre pool with additional learn to swim and toddlers areas. Space Size Notes Main Pool area (25m *7.5m) Plus ramp Pool Depth 25* 7.5 = 187.5m 2 Five lane pool (noting the lanes are narrower than FINA regulations, but provide the same lane width as the previous pool) Learn to Swim Pool Area 4 * 6 = 24 m 2 Toddlers Area 4m*3m = 12m 2 Total Water Area 223.5m 2 ( mm deep 11 ), Small area for introduction to water play. Depth 300mm-500mm Concourse Surrounds of pool (wider on one side for assembly of children etc, minimum space on other side) Shaded Picnic Area Varies Area where people can congregate and recreate out of the sun Fencing Lineal metres As per legislation Change Area Small change area for school groups to change each change to cater for up to 12 children max Fixed change benches Chemical Storage Dry, lockable space to secure chemicals Pump Room As per required for pool Equipment Storage Small storage area for some pool equipment max 2m*2m This option allows a longer lane pool and for learn to swim to operate in a different water space. The Pool Committee has indicated that children from Waiau are disadvantaged when they go to inter-school competitions, due to the previous pool being a shorter length than other pools in the area. 7.3 Option Three A third preliminary option was explored. The committee requested investigation into a covered pool complex that had the potential to be open all year round. The pool configuration would be similar to Option Two with a 25m*7.5m main pool with additional learn to swim and toddlers spaces. 11 NZS4441 specifies depths for LTS pools of between mm. Pools for teaching babies to swim often have a bench recessed in to a wall of the pool at up to 300mm below water level in a section of a pool that is 1.200mm deep. This can be used to allow an instructor/carer to stand in the water and encourage the baby to swim off the bench. Waiau Pool Feasibility Study June

19 The overall footprint of this pool would be slightly larger given the indoor nature of the asset. Most of the cost would sit with constructing a facility to cater for the pool/s. An indoor pool would provide the Waiau community with an asset that could be operated year-round. There are examples of no frills indoor venues that have been developed in New Zealand in the last several years. However, the catchment for the Waiau pool is far smaller than these other areas and both the capital cost (estimated to be in the range of $4m-$6m) and annual operating costs quickly rule out this as an option that is feasible for the Waiau community. As such, a schedule of spaces has not been developed for this option. Waiau Pool Feasibility Study June

20 8.0 PREFERRED OPTION The preferred option for the new pool to investigate further (as agreed to by the Board of Trustees) is option two which allows for a 25m main pool, a learn to swim pool and small toddlers pool. When selecting this option, and engaging with relevant design and build companies it is critical that the community and contractors design and construct a pool that has the ability to operate in an environment with a history of seismic events. The specifications and materials need to reflect this environment. Unfortunately, it is likely these requirements will come at a premium cost. It is highly likely that the preferred option may change over time as the design is firmed up and a budget envelope for the project Is confirmed. The preferred option has been decided initially on the needs of the Waiau community and there may need to be some compromises to ensure the community can afford the capital and operating costs. 8.1 Preliminary Schedule of Spaces Table 8.1: Schedule of Spaces Space Size Notes Main Pool area (25m *7.5m) Plus ramp Pool Depth 25* 7.5 = 187.5m 2 Five lane pool (noting the lanes are narrower than FINA regulations, but provide a similar lane width as the previous pool). Learn to Swim Area 4 * 6 = 24 m 2 Toddlers Area 4m*3m = 12m 2 Total Water Area 223.5m 2 ( mm deep 12 ), Small area for introduction to water play. Depth 300mm-500mm Concourse Fencing Surrounds of pool As per legislation Change Area Small change area for school groups to change each change to cater for up to 12 children max Fixed change benches Chemical Storage As per required for pool Pump Room As per required for pool Equipment Storage Small storage cupboard for some pool equipment max 2m*2m 12 NZS4441 specifies depths for LTS pools of between mm. Pools for teaching babies to swim often have a bench recessed in to a wall of the pool at up to 300mm below water level in a section of a pool that is 1.200mm deep. This can be used to allow an instructor/carer to stand in the water and encourage the baby to swim off the bench. Waiau Pool Feasibility Study June

21 8.2 Preliminary Capital Cost Estimates The preferred procurement method is Design and Build. The rationale for this strategy is outlined in appendix A. This method of procurement allows the Pool Re-Build Committee, in association with the School Board of Trustees, to seek detailed quotes for the work required. It is important that at this stage there is a clear understanding of the specifications required to ensure cost comparisons can be easily undertaken. Professional support 13 at this stage is a recommended strategy to ensure the community optimise their value for money. At this stage these costs are preliminary estimates to help guide decision making around affordability of a new facility. These costs will be refined over time once the Pool Committee confirm specifications and receive formal quotes. Note, where a contingency has not been quoted a 15% allocation to total budget has been used at this point in time. It is envisaged this contingency will be able to be reduced as the estimate is firmed up. 8.3 Summary Comparison Table The following tables have been created to allow comparisons of each estimate. Direct comparison is not always possible across all areas of quotations. The important principle to apply is that these costs give an approximate price range for the client to then enter in to a competitive tender process with a level of confidence relating to where the project sits with regard to the available project budget. D&B 1 Cost 14 D&B 2 Cost 15 D&B Cost 2a Indepen dent QS Low Estimate Indepen dent QS High Estimate Notes Actual Received Quote $305,000 $950,000 $814,000 $1.15m $1.50m Estimates for Additional Items (where possible) Preliminary Estimate (rounded totals) $498,000 $45,000 $45,000 $17,000 $12,000 $803,000 $995,000 $859,000 $1.17m $1.51m Project Contingency $120,375 $142,000 $122,000 inclusive inclusive Allow 15% at this stage; can be reduced as the cost is further refined Total Preliminary Estimate (rounded totals) $0.923m $1.09m $0.98m $1.17m $1.51m Excludes site infrastructure 13 We would recommend an independent project manager with experience in Aquatic Facilities along with legal advice when negotiating an appropriate construction contract. 14 D&B1 only provided a quote for the main pool, excluding filtration. No other costs were factored in, therefore for the purposes of this study the mid-point of the QS figures has been used to flesh out the cost. 15 D&B2 and B&B2a are both from the same company. The difference is in pool construction method (D&B2 = Myrtha; D&B2a = Concrete Block and Membrane). They were provided as lump sums and for the purposes of this report a contingency has been added but the lump sum has not been broken down. Waiau Pool Feasibility Study June

22 8.4 Comparison Table The following table shows a breakdown of costs, where possible. D&B 1 Cost 16 D&B 2 Cost 17 D&B Cost 2a Tradition al Low Estimate (QS) Tradition al High Estimate (QS) Notes Total Preliminary Estimate Lump sum estimate only Lump sum estimate only Main Pool area (25m *10.0m) $305,000 $470,000 $600,000 Main Pool Filtration/Chemical Dosing system $32,000 inclusive inclusive Filtration estimate $25k Chemical Dosing $7k Learn to Swim Pool $90,000 $80,000 $100,000 LTS Pool Filtration inclusive inclusive inclusive Toddlers Pool 22,500 $20,000 $25,000 Toddlers Pool Filtration inclusive inclusive inclusive Pipework $35,000 inclusive inclusive Concourse/Paths $46,000 $42,750 $48,450 Gates and Fencing $12,500 $11,600 $14,000 Change Area $123,000 $105,000 $147,000 Range from $2,500 - $3,500 m 2 Chemical Storage / Plant Room/Equipment Storage $64,500 $60,000 $69,000 Consents $10,000 $10,000 $10,000 Provisional Sum Legal Costs $10,000 $10,000 $10,000 Provisional Sum FF&E $25,000 $25,000 $25,000 includes Pool Cover and Hoist estimate Site Works $27,000 $27,000 $27,000 PC Sum of $27k provided by D&B2 Site infrastructure excluded excluded excluded excluded excluded Unknown at this point in time Professional Fees Inclusive, except Project Manager Inclusive, except Project Manager Inclusive, except Project Manager $84,000 $159,000 Allowance for professionals such as designers, engineers and project manager 16 D&B1 only provided a quote for the main pool, excluding filtration. No other costs were factored in, therefore for the purposes of this study the mid-point of the QS figures has been used to flesh out the cost. 17 D&B2 and B&B2a are both from the same company. The difference is in pool construction method (D&B2 = Myrtha; D&B2a = Concrete Block and Membrane). They were provided as lump sums and for the purposes of this report a contingency has been added but the lump sum has not been broken down. Waiau Pool Feasibility Study June

23 Preliminary Estimate (rounded totals) $803,000 $995,000 $814,000 Contingency $120,375 $142,000 $122,000 $94,000 $123,000 Allow 15% at this stage, this can be reduced as the cost if further refined Total Preliminary Estimate $0.923m $1.09m $0.936m $1.167M $1.4M Important Notes: a. All the above estimates exclude site infrastructure services (power, water, wastewater). b. A possible Solar heating system has not been costed. c. A geo-technical assessment is advised d. D&B1 includes a 25*10m pool, but does not include quotes for other pool areas, therefore the mid-figure of the Independent QS report has been used to provide the overall estimate. e. D&B2 includes a hybrid LTS/Toddlers area that is larger than requested. This highlights the variability in quotes. f. Both D&B companies have excluded the cost of a Project Manager (but it is included in QS report) g. All estimates do not include escalation costs h. QS estimates include a demolition cost of old pool ($35,000-$40,000) that is not considered part of this project cost therefore total exclusion costs are lower by the same amount to reflect this. i. All estimates are GST exclusive Capital Cost Conclusions Given all the available information provided by the Design and Build companies and the independent Quantity Surveyor report we can conclude that to construct the preferred pool option it is likely to cost in a range of $923,000 - $1.167m (say $1 1.2 million) excluding site infrastructure, a possible solar energy and in some instances project management fees. During discussions with the Waiau Pool Committee it is evident there is a willingness to provide significant voluntary and local labour skills to help with the development of a new pool. There is also the possibility of re-using some of the newer assets from the old pool (namely solar heating and fencing). This will potentially allow the facility to be developed at a cost lower than if a Design and Build company was doing the entire job. However, such an approach requires the client to be very specific about what is in and out of the main contractor s contract. The client must also be aware of how any building warranties are structured with the Design and Build company, as some warranties can be voided if external contractors (or volunteers) fit out a project. These issues must be fully negotiated and agreed in writing before a final contract is signed. These requirements should also be outlined in the client s tender brief. It is recommended that the Waiau Pool Committee seeks professional legal and project management expertise prior to proceeding with the tender and then a contract. Waiau Pool Feasibility Study June

24 Alternative Option The development of the preferred option is reliant (as are most community facilities) on third party funders. Should a major funder not invest in this community asset then the preferred option may become unattainable for the Pool Committee. If this was the case then the Pool Committee may wish to pursue an alternative option that would still allow a community pool to be developed in Waiau. There have been some discussions relating to a pool that is less than 25 metres in length that could also double up as a learn to swim facility. This would be taking option one in this report and reducing the overall length of the pool. While not seen as the ideal, it would still meet most of the aquatic needs identified during this study, namely learn to swim and recreational swimming. Waiau Pool Feasibility Study June

25 9.0 PRELIMINARY OPERATIONAL MODEL A high-level preliminary operational model has been developed to aid the discussion between the Pool Re-Build Committee and the Waiau School Board of Trustees. The historical operation of Waiau pool was fully reliant on volunteer input. Quite simply, any other model of operation would be unsustainable for this small, rural community. Therefore, the operational model proposed looks at the most cost efficient operating model possible. There may be opportunities to generate further revenue from external grants for one-off costs which should be investigated, particularly as key parts of the pool infrastructure reach the end of their useful life. 9.1 Key Assumptions A series of key assumptions have been made to assist with the development of the preliminary operational model (Table 9.1). These are as follows: General Base Assumptions 1. The model is based on the pool being operated in the same not-for-profit manner as the previous pool, with volunteers responsible for all tasks. 2. The pool will be open for a week period each year Revenue Assumptions 3. Pool keys will be sold to the community for the increased price of $ Casual Entry will be charged at $3 / adult and $2 / child and casual entry will be at a similar level to the previous few years on the assumption that most local families will purchase a key say - $ It is assumed the Hurunui District Council will continue to provide a $2,000 grant toward the running costs of the pool The Waiau School will not be charged admission in lieu of proposed ownership and management arrangement Operational Assumptions Year One Direct Costs 7. Chemicals and Energy are viewed as the major direct costs. 8. Chlorine, chemicals and testing is estimated to cost $2,700 / annum 9. Energy costs are budgeted $2,200 per annum. There is potential for Energy costs to be off-set by an existing Solar energy system that may be installed or through a new Solar system. The amount of savings will be dependent upon the efficiency of the system and have not been costed for the purposes of this operating model. 10. Petrol Vouchers for volunteer support of the pool will remain at levels $1, Training will be required to ensure pool water standards are met allowance of $500 towards costs 12. Miscellaneous costs will be $500/annum, allowing for freight, key costs, etc Overheads 13. Consider cost of replacement of PVC membrane every years at approximately $30,000 (note, the membrane currently has a warranty of 15 years). 18 Hurunui District Council provide subsidies to the following pools: Rotherham ($1,713 via Amuri Ward Amenities), Culverden Pool ($2,000 via Amuri Ward Amenities), Leithfield School Pool ($1,500 from Amberley Ward Amenities), Amberley Pool (rating input from Amberley Ward Amenities of $52,148) Waiau Pool Feasibility Study June

26 14. Insurance Based on information provided there does not seem to have been a provision for Insurance with the previous pool. This should be considered in any new development. An insurance broker has stated a ball park figure of $10,000, but this will need to be confirmed once the preferred option and budget is confirmed. A similar pool constructed in Christchurch recently has only been insured for a proportion of replacement cost, and has allowed $3-$5,000 for insurance. For the purposes of this report we have allocated an annual insurance sum of $3,000. The BoT will need to decide on an appropriate level of cover. 15. Rates - Initially there will still be a requirement to pay rates for the old pool site. This is seen as a cost that needs to remain part of the pool operating costs until the School and the Ministry of Education resolve the future use of that land. We have indicated this as a cost in year one only at this stage (last 5 years average = $460) note Repairs and Maintenance will be nil to low in year one, but will increase over time. A provisional sum of $1,000 has been allocated for minor repairs on an annual basis from year two (noting that large scale repairs would be covered by the appropriate manufacturer warranties and/or grants). 17. Depreciation Contribution Good practice recommends an annual allocation toward depreciation is factored in. The school has a requirement to have a long term view on property upgrades and maintenance (through the 5YPP and 10 Year Plan) and as such depreciation is not currently factored into the Operating Estimate. 19 Rates for the last five years have not been constant, or trending upward ($149.91; $774.17; $462.09; $253.56; $667.56)therefore an average has been used Waiau Pool Feasibility Study June

27 9.2 Preliminary Operational Model Revenue Preliminary Estimate Preliminary Estimate Preliminary Estimate Preliminary Estimate Preliminary Estimate Year One Year Two Year Three Year Four Year Five Pool Keys 50 season $80 $4,000 $4,000 $4,000 $4,000 $4,000 Casual Entry $400 $400 $400 $400 $400 HDC Grant $2,000 $2,000 $2,000 $2,000 $2,000 Waiau School Maintenance Grant $1,471 $1,471 $1,471 $1,471 $1,471 Total Revenue $7,871 $7,871 $7,871 $7,871 $7,871 Expenditure Preliminary Estimate Preliminary Estimate Preliminary Estimate Preliminary Estimate Preliminary Estimate Direct Costs Chemicals $2,700 $2,700 $2,700 $2,700 $2,700 Energy Costs $2,200 $2,200 $2,200 $2,200 $2,200 Volunteer Recognition $1,300 $1,300 $1,300 $1,300 $1,300 Training $500 $500 $500 $500 $500 Miscellaneous $500 $500 $500 $500 $500 Sub-Total Direct Costs $7,200 $7,200 $7,200 $7,200 $7,200 Overheads Insurance (provisional sum) $3,000 $3,000 $3,000 $3,000 $3,000 Rates on Old Site $ Repairs and Maintenance $- $1,000 $1,000 $1,000 $1,000 Sub-Total - Overheads $3,460 $4,000 $4,000 $4,000 $4,000 Total Costs $10,660 $11,200 $11,200 $11,200 $11,200 Annual Operating (Surplus)/Deficit $2,789 $3,329 $3,329 $3,329 $3,329 Contribution toward Depreciation nil nil nil nil nil Note: Any operational deficits for the previous pool have been met by fundraising Waiau Pool Feasibility Study June

28 10.0 GOVERNANCE AND MANAGEMENT OPTIONS Consideration has been given to the various governance and management options that could be used for the Waiau Pool. Pools can be governed by local government, schools, private organisations or charitable entities. The Hurunui District Council has clearly signalled they do not want to be responsible for another pool in their district and the size and turnover of the pool means there is no incentive for a private operator for this pool. Therefore, the remaining options are either a school based or community based governance and management model. In this situation the preferred site drives the recommended governance and management model. The most feasible option is for the new pool to be governed and managed by the Waiau School Board of Trustees. There are a few reasons that lead to this conclusion. The pool will be located on school land. Based on previous usage, the school will be a major user. As previously mentioned quick access to the pool for in-school swimming reduces down-time and increases time available for learning (both swimming and other curricular areas can be undertaken in the pool environment). The school has administrative capability to manage bookings 20. This removes the need to develop a separate trust to govern and manage the pool. The Board of Trustees can consider the new pool alongside other property matters. This model of governance does not preclude other options in the future should the school close. It is recommended the Pool Committee seek written assurance of their options should the school not remain open. 20 The sale of pool keys, any private bookings or other communications with the community Waiau Pool Feasibility Study June

29 11.0 ROAD MAP Figure 11.1 sets out a summary of the project stages after land owner permissions and other MOE requirements have been secured. Figure 11.1: Summary Project Road Map (Post MOE requirements). Develop Brief and Tender for a Qualified Project Manager (with Aquatics Experience) Confirm Development Brief (including schedule of spaces and associated specifications) Develop Tender Documents (for a design build contract) Run a Selected Tender Process (with experienced companies aquatics experience) Evaluate Tenders (the Project Manger will be required to Identify Tags and Seek Clarifications from Tenderers) Select Optimal Tender (the Project Manger will likely need to negotiate exclusions and tags to determine the final price) Confirm Contingency (the Project Manger will advise the client on a suitable contingency sum which is not disclosed to the contractor) Confirm Funding (Funding will need to be confirmed so a contract can be entered into.) Develop Contract (the Project Manger and a lawyer will develop / review the contract) Sign Contract (A representative/s of the legal entity entering into the contract will sign the contract) Undertake / Complete Design (Based on clients brief) Obtain Building and Resource Consent Commence Construction (The Project Manger will represent the clients interests) Practical Completion Waiau Pool Feasibility Study June

30 12.0 CONCLUSIONS AND RECOMMENDATIONS The feasibility study demonstrates the need for a replacement pool that is fit for purpose for the Waiau community. A preferred site has been identified as have the preferred pool spaces. The operating model is predicated on the Waiau School Board of Trustees overseeing this asset and equally importantly; the pool is operated under a voluntary structure, similar to the previous Waiau pool. The feasibility study concluded that: A replacement of the Waiau Pool is feasible, provided the ongoing operational costs can be minimised through continued volunteer input. The preferred site for the new pool is on the existing school grounds. This site was regarded as meeting all usage criteria. The preferred pool option consists of a main pool and water areas for both Learn-to-Swim and Toddlers water play. The configuration of these areas will be determined with the preferred contractor. Any specialist swimming needs can be accessed in the wider network (e.g. competition and hot water pools at Hanmer Springs) The preferred pool option is most likely to be in the capital cost range of circa $1 1.2 million excluding site infrastructure and a potential solar heating system Should the funds not be available to develop the preferred option a value engineering exercise can occur to reduce the scope of the development to give the best opportunity for a pool will be built in Waiau. This will likely involve developing a smaller single tank (rather than a main pool and learn to swim pool). The feasibility study recommends that: 7. A pool complex l is developed which is appropriate for the size of the Waiau community. 8. Seek independent legal and project management advice in developing a detailed tender brief that can be released to a selected number of D&B companies to confirm total project costs (including an undisclosed contingency). 9. A skilled, experienced Aquatics Project Manager is engaged as the client representative for this development, from tender brief to construction and commissioning. 10. Once the procurement process has been undertaken and a selected contractor identified the obligations of each party should be clearly agreed in a contract. 11. Operational costs continue to be minimised through the voluntary effort of the wider Waiau community. 12. The client seeks third party capital funding support for the facility. Waiau Pool Feasibility Study June

31 APPENDIX 1 PROCUREMENT STRATEGY There are many ways a company can be engaged to develop a sport and recreation facility (referred to as procurement). The two most common procurement methods for facilities of this scale and nature are design and build or traditional. Traditional Method Traditional Method is where the design elements are generally separate from the construct (or build) process. Consultants are appointed for the design and cost control components and then a Contractor is responsible for carrying out the instructed works to develop the sports facility. Design and Build Method Design and build is where the design and construction elements are generally undertaken by one contractor. The client determines the level of information to be given to the contractor, including performance requirements and leaves the responsibility for design and selection firmly with the contractor. This type of procurement strategy is often used for projects that are focussed more on function than form. Table A1.1 Comparison of two well-known procurement methods. Traditional Method Design and Build Method Pros Cons Pros Cons Specialist consultants can guide a more functional outcome Longer time frames 21 (construction cannot start until all design work is complete) Shorter time frames (construction can begin earlier) Client changes to scope can be expensive The specifications are prescriptive, allowing easy comparisons of construction tenders Little or no input into design by construction contractor One firm to deal with Comparing tenders can be difficult as each design is different Price certainty at the award of a contract Multiple contact points to manage Price certainty Variations need to be limited to manage cost control Price is the true competitive market price & therefore ensures substantial value for money Price is only agreed at end of design phase. Price is agreed at an earlier stage part way through the design stage. Price is usually agreed before completion of the design therefore the contractor will add for pricing risk Variations (changes) are easily managed Design risk sits with the contractor Sometimes difficult to prepare an adequate brief Good control over quality of both specification of Design risk sits with the client (albeit backed up by consultants Contractor is able to substitute lessor quality construction to make 21 Source: Sport New Zealand Community Sport and Recreation Facility Development Guide Waiau Pool Feasibility Study June