Capital Expenditure Review for thebexley Swimming and Leisure Centre proposal

Transcription

1 Capital Expenditure Review for thebexley Swimming and Leisure Centre proposal Drafted by: Zoran Sarin Date: 22 June 2012 Version: 1.27 Accepted by: Final Version: TRIM Document Number: 12/34367

2 1 Table of Contents 1 Capital Expenditure Review Project Outline Project Justification Capacity of Council Priorities and Opportunity Cost Alternatives Financial Impact Public Consultation Business/Management Project Plan Risk Management Plan Probity Plan Tender Evaluation Reporting Appendices Appendix 1 Community Feedback Report Appendix 2 Bexley Swimming & Leisure Centre Feasibility Report Appendix 3 MBM Quantity Surveyors Peer Review Appendix 4 Code of Tendering Practice Appendix 5 Risk Management Matrix... 52

3 2 1 Capital Expenditure Review The Bexley Swimming and Leisure Centre Proposal is one of the Major Projects listed in the Rockdale City Plan to be delivered by Council to provide recreational, sport and leisure opportunities for the community. In late 2008 Council resolved to investigate "the various measures that can be taken to improve the Bexley Swimming Pool facility and the type of services that can be introduced.. to improve Bexley Swimming Centre to be of national standing". A preferred concept design was developed and publicly exhibited following a detailed site investigation and consultation with numerous stakeholders, user groups and operators. The community exhibition and engagement process attracted 1,659 submissions from residents, users, major swimming bodies and associations, and students, teachers and principals of local schools. The outcomes of the exhibition process were reported to Council on 4 April 2012 where it was resolved "that the Capital Expenditure Review be finalised and submitted for Council's approval. This document has been prepared in accordance with the NSW Government s Capital Expenditure Review guidelines. The review details Council s evaluation of the Bexley Swimming and Leisure Centre Proposal in a clear, transparent and systematic way. This Review is provided for the Department of Premier and Cabinet, Division of Local Government, for notification requirements.

4 3 2 Project Outline This project is for the redevelopment of the existing Bexley Pool to: 1. Replace the existing outdoor 8 lane 50 metre pool. 2. Construct a new indoor aquatic and leisure centre comprising the following mix of facilities: An 8 lane 25 metre lap swimming pool A 20 metre x 12 metre program pool Children's play/leisure pool Spa pool / sauna / steam / plant room Community space / crèche Kiosk Dry leisure space of 700 square metres to accommodate gym / fitness / health / well being use. The estimated cost of the project is $31.5 million. Rockdale City Council has a population of approximately 103,000 (est. 2012). Residents aquatic needs are currently provided at Bexley Pool, which contains an outdoor Olympic pool (50 metre x 8 lanes), teaching pool (17 metres), toddlers pool and associated administration and amenities buildings. The existing 50 metre outdoor pool was constructed in 1974 on unstable fill material and consequently has suffered from significant structural issues for a number of years. The pool leaks and filtration equipment contravenes current NSW Health Guidelines. As an asset, elements of the pool have reached the end of their useful life. Before any decision could be made on whether to rehabilitate, replace or augment the pool, Council needed to consider whether the pool in its current form was meeting the needs of the community. Council also considered the appropriateness of the current site in providing aquatic services and facilities for the Rockdale and surrounding communities. Council resolved on 19 November 2008 that a report be prepared identifying the measures that can be taken to improve the Bexley Swimming Centre and the type of services that can be introduced for the centre to be of national standing. In 2009, Council formed the Bexley Pool Reference Group to obtain input from various user groups. The reference group was made up of a community representative, public school representative, high school representative, Rockdale Swim Club representative, the pool management operator and Council staff. Consultants with considerable expertise and background in the feasibility, design and construction of swimming pools and aquatic facilities were engaged in early 2010 to undertake on-site testing, preparation of initial design plans and costing of the project. Council has worked with the consultants and the Bexley Pool Reference Group, as well as with the three major pool operators in NSW, to finalise the recommended facility mix for the proposed Bexley Swimming and Leisure Centre and the arrangement of those facilities on the existing pool site. In December 2011 a Preferred Concept Design, Feasibility Report, Financial Implications and Community Engagement Strategy were considered by Council who resolved to progress the Bexley Swimming and Leisure Centre project to public exhibition and engagement between 13 December 2011 and 2 March A total of 1,659 submissions were received and are collated in a Community

5 4 Feedback Report (Appendix 1). The number of responses and information provided by respondents is comprehensive and indicates that there is strong (96%) community support for the proposal. Both the feasibility report and feedback report will be separately attached to this review. Fig 1 Conceptual ground and first floor plans detailing the arrangement of the various elements of the proposed Bexley Swimming and Leisure Centre

6 5 3 Project Justification 3.1 Demonstration of a clear relationship between the proposal and Council s community strategic plan, delivery program and operational plan The Rockdale City Plan , prepared under the integrated planning and reporting framework was developed in collaboration with the community. The City Plan is based on community wants and aspirations that were made clear through a community survey, community forums and other community engagement. The City Plan creates a blueprint for where the community wants to be by 2025, through five community outcomes: 1. A Vibrant, Healthy and Socially Connected City of Many Cultures. 2. A Sustainable City. 3. A Strong Economy. 4. Appropriate Infrastructure. 5. A Leading Organisation. The City Plan highlights six major projects which will provide for a range of recreational, sport, leisure and learning opportunities for the community: Town Hall Refurbishment Stage 1 completed. Stage 2 being designed by State Government Architect. Project is fully funded. Central Library including additional community meeting space Currently undergoing feasibility analysis. Bexley Swimming and Leisure Centre Feasibility and community engagement and consultation completed. Youth Centre at Arncliffe Council has appointed consultants following an EOI process to develop a Community Services Plan. The plan will include an analysis of community needs and expectations based on community consultation to determine the scope of the project. Indoor Recreation Centre at Ador Reserve This project was identified in the Open Space and Recreation Strategy Feasibility for this project is not expected to occur until after commissioning of the above projects has occurred. Thriving Town Centres These projects are delivered from/via Local Area Funds as they are collected by Council. Feasibility has commenced for the Ramsgate Beach town centre upgrade. These major projects, as well as a number of urban renewal programs, are detailed in the City Plan s Resourcing Strategy. They are referenced as future infrastructure needed to serve current and future population. They were also modelled in the Long Term Financial Plan and are proposed to be funded from a range of sources, including S94 reserves, asset sales, internal reserves and other (including grants). The City Plan, which includes a 4-Year Delivery Program and 1-Year Operational Plan, was publicly exhibited from 5 May to 2 June A number of the submissions supported the Bexley Swimming and Leisure Centre project. The comments received were collated and considered by Council prior to the adoption of the City Plan. The actions and measures for Bexley Pool under the Delivery Program and Operational Plan are under Outcomes 1 and 4 are detailed below:

7 6 Fig 2 extract from draft Operational Plan 2012/13 In regard to Outcome 1 (Operational Plan Action 6.1): Tenders were invited for the management of Bexley pool in late Three tender applications were submitted. On 21/3/12 Council resolved to appoint the YMCA as the operator of Bexley pool effective 1st May 2012 for a year with up to two renewable options at Councils sole discretion - dependant totally on the redevelopment of Bexley Swimming and Leisure Centre project. The management agreement will be reported to Council on a quarterly basis. Fig 3 extract from draft Operational Plan 2012/13 In regard to Outcome 4 (Operational Plan Action 1.4): Council has completed a feasibility study, including concept design and cost estimates. Council has completed community engagement and exhibition of the Bexley Swimming and Leisure Centre proposal. This capital expenditure review will be reported to Council for adoption and forwarding to the Division of Local Government. This will represent the final formal step prior to seeking Council resolution to proceed with commencement of construction of the Bexley Swimming and Leisure Centre. The Bexley Swimming and Leisure Centre is one of the Council s Major Capital Projects. As such, Operational Plan Actions 1.2, 1.3, 1.4 and 1.5 are all interrelated.

8 7 3.2 Completion of a business case / feasibility study The Bexley Pool Redevelopment Feasibility Study Stage 2 Report, prepared by Recreation Planning Associates (Appendix E of the feasibility report), was specifically commissioned to assess the feasibility of the Bexley Swimming in accordance with the assessment requirements in the NSW Government s Capital Expenditure Guidelines. Consistent with the guidelines, the study has: Reconfirmed the business case. Identified the community needs. Confirmed the project s consistency with Council s Community Strategic Plan. Identified critical success factors for the project. The feasibility report, prepared by TompkinsMDA architects, is a culmination of work which commenced in early 2010 when Council engaged consultants to undertake on-site testing, preparation of initial design plans and costing of the project. In developing the report, Council has: Obtained community and stakeholder input through the Bexley Pool Reference Group. Sought specialist advice from pool and aquatic centre consultants. Obtained commercial and operational advice from three major pool management operators (YMCA, BlueFit and Belgravia Leisure). Viewed similar aquatic facilities in adjoining council areas (Hurstville and Marrickville). Viewed a number of similar facilities in Victoria. Reported the findings to public meetings on 15 occasions to keep the community informed. In addition, the following lists of works have been undertaken since early 2010 and have been used to develop the feasibility report: Site analysis and constraint mapping. Geotechnical investigation of the existing Bexley Pool site. Environmental investigation undertaken concurrently with the geotechnical testing. Engagement of Water Servicing Coordinator to determine constraints associated with the location of significant Sydney Water stormwater and sewer assets within the site. Aquatic engineering report on pool structures, filtration and water treatment. Investigated sustainability design options. Car parking analysis. Redevelopment feasibility study. Determination of recommended facility mix. Determination of preferred concept design. Architectural design drawings. Quantity surveyor cost estimate for three options considered

9 8 3.3 Analysis of community needs and expectations based on community consultation, which should identify how the project will address specific community needs and any issues of public access and equity Council has undertaken various studies and strategies and engaged with the community about this project through various community surveys, community forums and other forms of community engagement over a number of years. The two main strategies, both of which had their own consultation process, include: 0. Bexley Swimming and Leisure Centre Feasibility Report 1. The Open Space and Recreation Strategy Bexley Swimming and Leisure Centre Feasibility Report Council progressed the Bexley Swimming and Leisure Centre project to public exhibition and engagement between 13 December 2011 and 2 March The public consultation process undertaken is detailed in Section 8 Public Consultation Process. This resulted in 1,659 submissions being received from: residents users students, teachers and principals of local schools major swimming bodies and associations. Some of the significant themes which emerged from the community engagement include: There is strong (96%) community support for the proposal. The 50 metre outdoor pool is essential for school carnivals and lap swimming. An indoor pool is needed to enable swimming to occur year round. A facility to meet the learn to swim needs of the community is vital. The frequency of use of existing users would increase due to the additional facilities available. The role of swimming in maintaining health and well being and the importance of learn to swim to minimise the likelihood and trauma associated with drowning. This was emphasised in all eight submissions received from major swimming bodies and associations. The Bexley Pool Redevelopment Feasibility Study (Appendix E of the feasibility report) analysed supply and demand characteristics in the community for recreation and leisure facilities. The feasibility study included the following elements: Demand analysis including reference to other existing/proposed facilities in the catchment and the demand for aquatic facilities over time. Implications of likely demand and current usage. An upgrading rationale (including consideration of the benefits of ancillary elements with the potential to deliver improved amenity, accessibility and financial sustainability). The feasibility study looked at participation rates and trends and undertook a market review, examining potential pool markets based on population size and characteristics, as well as a market review based on existing facilities and competition. The participation data is based on the Exercise,

10 9 Recreation and Sport Survey (ERASS) undertaken by the Australia Sports Commission (see Figure 4). What is clear from the survey is that the recreational activities of aerobics/fitness and swimming, both of which would be catered for by this project, have consistently been the second and third most participated in physical activities since the survey began in These are second only to walking as the most popular recreational activity, the demand for which is met through an extensive pathway network within the City of Rockdale. Within the Asset Management Strategy 2011, it has been estimated that Council manages and maintains a pathway/cycleway network of approximately 388 kilometres throughout the City with an estimated replacement value of $90 million. The Bexley Swimming and Leisure Centre has been designed to cater for the aerobics/fitness and swimming needs of the community which, according to the ERASS findings, have a combined participation rate slightly greater than that of walking. Fig 4 extract from Australia Sports Commission - Exercise, Recreation and Sport Survey The analysis of community needs was then able to inform the type and size of facilities needed. Further engagement was undertaken with the consultants, Bexley Pool Reference Group and facility management organisations (YMCA, BlueFit Leisure and Belgravia Leisure) to determine a recommended facility mix. A subsequent investigation was also conducted of other facilities in NSW and Victoria and this resulted in the recommended facility mix adopted by Council at its meeting of 6 July 2011.Considerable consultation followed with the consultants, Bexley Pool Reference Group and facility management organisations to determine the preferred arrangement of those facilities within the site. A preferred concept design was developed and considered by Council at its meeting of 7 December 2011 where it was resolved to undertake comprehensive community engagement and consultation from 13 December 2011 to 2 March Since the initial resolution of Council on 19 November 2008 to identify the various measures that can be taken to improve the Bexley Swimming Pool facility and the type of services that can be introduced to improve Bexley Swimming Centre to be of national standing, there have been approximately 15

11 10 public reports on the Bexley Swimming and Leisure Centre Project, including three separate sets of community consultation and engagement. A table of key dates and milestones is shown below: Table 1 - Bexley Swimming & Leisure Centre - Major Steps and Milestones Date Major Steps and Milestones 19 Nov 2008 Identify the various measures that can be taken to improve the Bexley Notice of Motion Swimming Pool facility and the type of services that can be introduced to improve Bexley Swimming Centre to be of national standing. 8 Apr 2009 Council Meeting Consideration of location of aquatic and leisure centre Bexley Pool site versus Ador Reserve. Council resolves to proceed on the basis of the 19 November resolution to redevelop Bexley Pool 3 Jun 2009 Council resolves to invite residents to participate in a Bexley Pool Reference Council Meeting Group and adopts in principle Option 1 New 50 metre pool shell, upgrade of filtration and heating equipment. Provision of an indoor 25 metre program/leisure pool with associated kiosk, amenities and gym.. Water play, social, cafe and outdoor lawn areas could be provided now or as part of a future stage. 16 Sept 2009 Council Meeting 11 Nov 2009 Information Session Output from the Reference Group consultation presented to Council detailing recommended facility mix. Deferred to Information Session. Information presented of the outcomes of community consultation achieved through the Bexley Pool Reference Group. 2 Dec 2009 Council authorised up to $120,000 from the Bexley Pool Reserve to Council Meeting undertake on-site testing, preparation of initial design plans and costing of the project. 17 Mar 2010 Progress Report on the Bexley Pool Redevelopment received and noted. Council Meeting Council resolves to ensure that Bexley Pool is adequately heated during the winter months. 21 Apr 2010 Council adopts Open Space and Recreation Strategy. Council reaffirms that Council Meeting redevelopment of the Bexley Pool site is high priority with short term timing. Council resolves that an indoor and aquatic facility at Ador Reserve be considered after a decision is made on Bexley Pool and the priority changed to low and timing to be medium to long term. 23 Jun 2010 Information Session 10 Nov 2010 Information Session Presentation of findings from site assessment and feasibility study data based on the Bexley Pool Reference Group model. Options presented for consideration based on trends and practices in the development of aquatic facilities. Feasibility report presented providing Council with independent and professional advice with regard to the type, size, facility mix, capital costs and operating costs associated with the redevelopment of Bexley Pool. 1 Dec 2010 Council Meeting Finding from feasibility report by TompkinsMDA presented to Council. Consideration given to facility mix, siting of facilities on-site and Sewer and Stormwater infrastructure issues.

12 11 2 Feb 2011 Council Meeting 9 Feb 2011 Information Session Major Capital Works (including Bexley Pool) discussed. Their priorities, principal source of funds and preliminary cost all considered. Deferred to Information Session. Major Capital Works (including Bexley Pool) discussed. Their priorities, principal source of funds and preliminary cost all considered. 16 Feb 2011 Update report on progress of project and issues relating to sewer and Council Meeting stormwater infrastructure. 9 Mar 2011 Information Session Update on current status of the Bexley Swimming and Leisure Centre Feasibility Study and the steps required to advance the project. Discussion in the context of new Capital Expenditure Guidelines recently introduced by the NSW Division of Local Government (DLG) to this project. 16 Mar 2011 Update report advising that Sydney Water sewer and stormwater assets Council Meeting could not be built upon. Requires redesign of the way the facilities are sited. Council resolves to adopt, for financial modelling purposes and the 20 Apr 2011 development of the City Plan , the following Major Capital Works Notice of Motion Projects in the priority order as listed: 1. Town Hall Refurbishment 2. Central Library/additional community meeting space 3. Bexley Pool upgrade 4. Arncliffe Youth Centre 5. Indoor Recreation Centre. 4 May 2011 Council resolves to instruct TomkinsMDA to complete the feasibility analysis Council Meeting for the Bexley Swimming on the basis of Option B at a cost of $112, Jul 2011 Based on the findings from consultation with commercial operators and Council Meeting investigations of other facilities in NSW and Victoria, Council resolves to instruct TompkinsMDA to include the following mix of facilities in the design of the indoor pool building: an 8 lane 25 metre pool; a program pool; a children's play pool; a crèche; a kiosk; a fitness space of 700 sqm gfa. 3 August 2011 Update report on technical, operation and design considerations gathered Council Meeting via meetings held with the Bexley Pool Reference Group, the YMCA, BlueFit Leisure and Belgravia Leisure. 7 Sep 2011 Update report on 9 concept layouts. TompkinsMDA progressing on concept Council Meeting design and feasibility study based on the preferred model. 26 Oct 2011 Information Session Update on progress of feasibility study. Preferred Concept Design, Preliminary Business Case, draft Funding Strategy and Community Engagement Strategy presented and discussed.

13 12 23 Nov 2011 Information Session Update on the History and Current Status of Project, Proposed Facility Mix, User Catchment and Expected Patronage, Financial Implications and Community Engagement Plan. Council resolves to: 7 Dec 2011 Council Meeting 1. reaffirm its commitment to the Pool proposal and resolves to progress the Bexley Swimming and Leisure Centre project to public exhibition and engagement for the period between 13 December 2011 to 2 March Mar 2012 Information Session 4 April 2012 Council Meeting 2. endorse the expenditure of $16,000 from the Bexley Pool Reserve for the purpose of community engagement 3. write to all residents immediately adjoining the perimeter of the Bexley Pool Site inviting them to attend consultation meetings which are scheduled to occur between 13 December and 23 December Update on the outcomes of the public engagement and a summary of the submissions received A report was considered which detailed the outcomes of the public engagement. All responses were collated in a feedback report. Council resolves: 1. To thank the members of the public who responded during the public exhibition and engagement period. 2. That the Capital Expenditure Review be finalised and submitted for Council's approval at its meeting on 20 June Open Space and Recreation Strategy 2010 In 2007 Council commissioned the development of an Open Space and Recreation Strategy to guide Council s LEP planning and future projects and infrastructure works. In particular, the Open Space and Recreation Strategy intended to guide the future provision, development and management of open space and recreation facilities in the City of Rockdale to The strategy was undertaken in a four step approach of: Demand Analysis. Supply Analysis. Gaps and Opportunities. Directions, Strategies and Actions. The community needs were assessed through the demand analysis and through research of national participation data available in the Australian Bureau of Statistics Children s Participation in Cultural and Leisure Activities (April 2006) and Australian Sports Commission Participation in Exercise, Recreation and Sport (ERASS), 2004 (15 years olds and over). This analysis further involved linking the City of Rockdale population profile to the participation levels to obtain an indication of potential participation in the City. The long term commonly used planning benchmark for indoor heated pools has been a minimum of 50,000 head of population for 50 metre pools and 25,000 for 25 metre pools. The City of Rockdale has a population of approximately 96,333 (2006) / 103,000 (est. 2012) and 121,365 projected for

14 The provision of an outdoor 50 metre pool and an indoor 25 metre pool, as well as program and leisure pools, was considered sufficient to meet the demands of the current and future population. The draft Open Space and Recreation Strategy was publicly exhibited from 3 December 2009 to 29 January The strategy identified the need for Council to provide an indoor aquatic and leisure facility. This supported the Council resolution of 19 November 2008 to improve the Bexley Swimming Centre and the type of services that can be introduced to be of national standing. The strategy was adopted by Council, following consideration of all submissions, in April An outline of the projected costs in Council s long term financial plan and asset management plans The Bexley Swimming was modelled in the Long Term Financial Plan 2011/ /25 under Scenario 3 Required Asset Management Expenditure (see extract below): Fig 5 extract from Long Term Financial Plan 2011/ /25 The most recent cost estimate for the Bexley Swimming is $31.5 million. Table 2 details the events which have led to the most recent cost estimate: Table 2 - Bexley Swimming and Leisure Centre Cost Estimate Date Event / Activity 20 Apr 2011 Council endorses the major projects to be used in the development of the City Plan and to be modelled in the Long Term Financial Plan. For modelling purposes, Council used an intermediate figure of $16.0 million. 6 July 2011 Council, informed by a recreation needs study, detailed site investigations, consultation with key user groups and operators and research into contemporary swimming centres in NSW and interstate, adopts a facility mix for the proposed redevelopment of the site. This involved the following elements: Demand analysis including reference to other existing/proposed facilities in the catchment and the demand for aquatic facilities over time

15 14 Implications of likely demand and current usage An upgrading rationale (including consideration of the benefits of ancillary elements with the potential to deliver improved amenity, accessibility and financial sustainability) Dry leisure / health / wellness / aerobic / fitness facilities are a growing market segment due to the growing participation rates for this activity and the revenue associated with their provision. Market research has shown that there is sufficient market demand for this service in the Bexley area and surrounds and it has become relatively common practice for Council s to incorporate this element in conjunction with aquatic facilities. Aquatic and leisure centres provide a community and recreation hub which caters to all age groups and is able to offer a greater variety and user experience. The inclusion of revenue centres such as the learn to swim and dry fitness areas allows for cost centres such as the 25 metre indoor pool, crèche and kiosk to be provided by subsidising their losses. This enables Council to offer a greater variety of services and a better experience to recreational uses with minimal extra operating costs and burden on rate revenues. 7 Dec 2011 A feasibility report and Preferred Concept Design, based on the facility mix adopted on 6 July 2011, was presented to and considered by Council and endorsed for community exhibition and engagement. Building cost estimated at $26.81 million (ex GST) (undertaken by DCWC quantity surveyors) February 2012 May 2012 Council engaged MBM quantity surveyors to undertake a peer review of the DCWC estimates and quantify the cost of exclusions. Revised cost estimate of $33,354,876 (ex GST). Discussion held with the architectural consultants on the concept design and its costs and a reduced scale development, still incorporating the facility mix as resolved by Council, has been investigated. The cost estimate for the revised proposal has been determined by MBM as being $31,530,407 (ex GST). A revised cash flow analysis has been undertaken. This is further detailed in Section 7 - Financial Implications.

16 15 4 Capacity of Council 4.1 The capacity of Council s management and skill base to undertake the project Council s Community Strategic Plan (City Plan ) details a number of major projects and programs which will be delivered during the life of the plan to provide a range of recreational, sport, leisure and learning opportunities to the community. The extent of the capital works and programs envisaged is significant and Council has, as a consequence, refined its management and skill base to meet the challenges associated with delivery of the projects. The structure which Council will utilise is detailed below: Fig 6 proposed Council management/skill structure Council has a comprehensive internal skill base and where it lacks the skill base to directly undertake elements required to complete the project, it commissions consultants and specialist project management staff. The structure detailed in Figure 6 is currently being utilised for the Bexley Swimming and Leisure Centre project with the exception of the Audit Committee, which will be added to the process controls. On 2 May 2012 Council adopted a structure for an Audit Committee that will commence its role in September Council has formed a Steering Committee consisting of internal staff to manage this project. The steering group consists of appropriate staff in City Planning & Development (strategic asset planning), City Operations (asset provider and manager) and Corporate and Community (service provider/owner). In the initial phase of feasibility, the Steering Committee has worked with the Bexley Pool Reference Group to obtain community feedback on the project from a user perspective. The second stage of feasibility additionally engaged three commercial pool operators (YMCA, Belgravia & BlueFit) to gain feedback from an operator s perspective. This feedback was also beneficial in validating the operational and revenue forecasting undertaken by Council s consultants.

17 16 The primary purpose of the feasibility study was to maximise knowledge and understanding of the project, the demand and supply characteristics, site constraints and issues, capital costs and whole of life operating costs associated with the project. It is through the extensive feasibility analysis, including consultation with key users and operators, that Council is able to develop a robust business case to support the project. By clearly understanding the up-front capital costs as well as on-going operational costs and revenues based on various scenarios, Council has been able to minimise the risk associated with the construction of and long term ownership of such a significant asset. The Steering Committee is directed by the Director City Planning & Development. Outputs from the Steering Committee are communicated to the Executive Committee and are regularly reported to Council through public meetings. The flow of information and communication is regularly maintained to ensure that Council staff, Councillors and the public are continually updated on the progress and findings on this project. The Project Director and Project Manager for the feasibility stage are from the City Planning and Development Division, as the investigations to date relate to Strategic Asset Management. The next phase in the process, should Council resolve to proceed with this project, will be to develop design/contract documents to enable regulatory approval as well as undertake a construction tender. The roles of Project Director and Project Manager will be subsequently undertaken through the City Operations Division, as the next stage of the project is design and construction related. 4.2 Identify the responsibilities of Council to the project on a year-by-year basis throughout the project s lifetime The Bexley Swimming Centre is classified as a critical asset in Council s Asset Management Strategy Like all assets, the design, development and operation of the pool will have a lifecycle process (see Figure 7). Bexley Pool was constructed by the former Public Works Department in 1974 and has served the Rockdale community since that time. More recently however the pool has suffered significant structural issues due to unstable fill material and the pool shell has now reached the end of its economic life. Accordingly Council has commenced the process of determining what the needs are for a new asset. Fig 7 Lifecycle Asset Management

18 17 The responsibilities of Council to the project vary depending on the phase the asset is in during its life cycle. The responsibilities and financial implications associated with the various phases are summarised below: Identify Need, Plan and Design As detailed in Section 4.1, the feasibility phase of the project has been project managed through the City Planning and Development Division in its role in undertaking strategic asset management. The Bexley Swimming and Leisure Centre Feasibility Report, which includes a geotechnical report, environmental testing report, survey, parking analysis, aquatic engineering report, recreation planning report, sustainability options report, architectural drawings and quantity surveyor cost estimates have been developed over a period of approximately two years and at a cost of approximately $300,000. This represents 1% of the capital cost of the project. Procure/Build and Commission Should Council resolve to proceed with the project, the next stages are Procure/Build and Commission which will be project managed by City Operations in its role in design and construction. This phase involves the capital cost of the project, being in the order of $31.5 million. Operate, Maintain and Monitor Performance Upon completion and commissioning of the Bexley Swimming and Leisure Centre, the project moves into the service stage of its life cycle process. In this stage, responsibility is shared between the City Operations (asset manager) and Corporate and Community Divisions (service provider/owner). The existing Bexley Swimming Centre has been managed for a number of years under a management agreement between Council and a private operator. Tenders would be invited and a new operator would be appointed after the Bexley Swimming and Leisure Centre was commissioned and operational. Council recently invited tenders for the short term management of Bexley Pool in accordance with the Operational Plan. The tender took into consideration the potential closure of the current pool should the Bexley Swimming and Leisure Centre project proceed. In addition, the scale and complexity of the facility under management would increase substantially should the project proceed and be finalised and this will clearly be a factor in the appointment of any future management operator. The pool is currently being managed by the YMCA. It is anticipated that a maintenance and management regime and protocol will be prepared following the construction phase of the project. The protocol would form the basis of the management agreement between Council and the pool contractor and would guide the responsibility of the two parties in managing and maintaining the facility throughout its lifetime. 4.3 Risk assessment of the project including governance and management structures in place to minimise project risks As the project cost is in excess of $10 million (ex GST) a comprehensive risk management plan has been prepared and is detailed in Section 10 Risk Management Plan.

19 18 The Division of Local Government (DLG) Guidelines on Internal Audit 2008 and the DLG s Internal Audit Guidelines 2010 strongly support the need to establish an Audit Committee. The Division sees an Audit Committee as enhancing the importance and setting the direction for Council s Internal Audit function. The Division has also suggested a model structure for Audit Committees, which includes independent members external to Council. The idea of having independent members with particular expertise means that the Committee can provide an independent check on Council activities, systems and procedures, governance and risk management and more broadly whether Council is receiving value for money on systems, services and projects. At its meeting of 2 May 2012 Council considered a report ORD17 Internal Audit program and Audit Committee. Council resolved to: Adopt the proposed structure for an Audit Committee that will commence its role in September Adopt the proposed charter for the Audit Committee (attached to the report). Agree to the appointment of three independent members for the Audit Committee by an advertised Expression of Interest process. Note the two Councillor members of the Audit Committee will be appointed by Council in September Assessment of compliance requirements (e.g. Local Govt Act, EP& A Act, Heritage Act etc) Capital Expenditure Guidelines December 2010 The Bexley Swimming and Leisure Centre project has an estimated capital cost of approximately $31.5 million. This document provides the required notification to the Department of Premier and Cabinet, Division of Local Government in accordance with the Capital Expenditure Guidelines issued in December Local Government Act Charter obligations Council will fulfil its Charter obligations as detailed in Section 7.6 Environmental Planning and Assessment Act The project is a permitted use and requires preparation and lodgement of a development application (DA) and construction certificate (CC) prior to commencement of construction. Based on the value of the works and the ownership by Council, it is acknowledged that the development application will be considered by the Joint Regional Planning Panel. Many of the site constraints and issues investigated as part of the initial feasibility study have been mindful of the development application process. The next stage for this project would be to develop design / construction contract documents to enable Council to undertake a construction tender. Preparation of DA and CC documentation would occur as part of this process. 4.5 Appointment of a Steering Committee Council has formed a Steering Committee consisting of internal staff to manage this project. The Steering Committee consists of appropriate staff in City Planning & Development (strategic asset

20 19 planning), City Operations (asset provider and manager) and Corporate and Community (service provider). Section 4.1 provides detail of how the Steering Committee fits into Council s management structure. 4.6 Designating a Project Manager As detailed in Section 4.1, the Project Director and Project Manager roles for the feasibility stage are from the City Planning and Development Division, as the investigations to date relate to Strategic Asset Management. The next phase in the process, should Council resolve to proceed with this project, will be to develop design/contract documents to enable regulatory approval as well as undertake a construction tender. The roles of Project Director and Project Manager will be subsequently undertaken through the City Operations Division, as the next stage of the project is design and construction related. Council s has recently appointed a Major Projects Manager specifically to meet the challenges associated with delivery of the major projects and programs detailed in Council s Community Strategic Plan (City Plan ).

21 20 5 Priorities and Opportunity Cost 5.1 Assessment of the impact of the project on Council s ability to fund future capital works and services in accordance with Council s long term financial plan The City Plan details a number of significant capital projects and programs to be delivered within the life of the City Plan. These are detailed in Section 3 - Project Justification. In accordance with the Resourcing Strategy Long Term Financial Plan (LTFP), it is intended to fund this project using a combination of externally restricted reserves, internally restricted reserves, asset renewal funds, asset sales and grant funds. The Bexley Swimming and Leisure Centre project is estimated to cost $31.5 million. The LTFP needs to be updated to reflect this increased cost. A preliminary cash flow analysis indicates that adequate liquidity will be maintained. The financial implications are fully addressed in Section 7. Fig 8 Source of funds for Major Capital Projects The funding strategy above is simply a snapshot detailing the short term impact on Council s funds should it proceed with some of the nominated projects and programs. It reveals that Council would not fully exhaust its reserves in the short term and, while not shown on the strategy, would accumulate further funds as they were collected (i.e. S94 developer contributions). Important to note also is that the projects are to be delivered over a period of 14 years from 2011 to As detailed in Section 2, the projects are in various stages of feasibility, design, approval or construction. The Bexley Swimming and Leisure Centre project is clearly the most significant of the projects. It is also a combination of existing asset renewal (approx $5 million) and new capital works (approx $26.5 million). As such, it can and is proposed to utilise existing Section 94 funds collected for the purpose of open space embellishment.

22 21 The balance of Council s Development Contributions Reserve was $21.74 million at 30 June This figure includes a historical carry forward of funds from the old plans for the purpose of open space. The Rockdale Section Contributions Plan 2004 details this carry over and further defines that the principle two facilities for which funding priority is given are: Bexley Aquatic and Recreation Centre Indoor Leisure Centre Council s position has remained consistent over the years that strategic priority is given to the provision of an aquatic and leisure facility to be provided in the Bexley area and an indoor recreation facility in the Rockdale area. These priorities are consistent across the: Open Space and Recreation Strategy Rockdale Section 94 Developer Contributions Plan 2004 Rockdale City Plan Long Term Financial Plan 2011/ / Reviewing the community strategic plan, delivery program and operational plan to ensure the proposal is aligned to Council s objectives Section 3.1 clearly demonstrates the relationship and alignment of Council s community strategic plan, delivery program and operational plan with respect to the Bexley Swimming and Leisure Centre project. Additionally, the project is clearly aligned through the Resourcing Strategy. In this regard the Asset Management Strategy defines the existing Bexley Swimming Centre as a critical asset. The strategy further details the need to upgrade the centre to meet both current and future demand. The Long Term Financial Plan then models the impact of providing all the major projects detailed within the City Plan, including Bexley Pool. 5.3 Assessment of asset management plans to ensure that other assets do not require funding as a higher priority As detailed in the funding strategy above, the Bexley Swimming and Leisure Centre project is a combination of existing asset renewal (approx $5 million) and new capital works (approx $26.53 million). Bexley Pool was constructed by the former Public Works Department in 1974 and has served the Rockdale community since that time. More recently however, the pool has suffered significant structural issues due to unstable fill material and the pool shell has now reached the end of its economic life. As an existing asset, the outdoor 50 metre pool provides for the recreation and aquatic needs for the local community and in particular, for numerous nearby primary and secondary schools. Attendance figures for Bexley Pool are about 100, ,000 uses per annum. Based on a risk evaluation process, Bexley Pool is deemed to be a critical asset in Council s Asset Management Strategy 2011 with a Criticality Score of 51. Only three other building and property assets achieve a higher criticality score (see Figure 9). This is partly due to its high usage and also the fact that it is the only aquatic

23 22 facility within the Rockdale LGA. As such, it has already been determined that Bexley Pool has a high priority and requires special consideration in the case of asset failure. Property Address Criticality Score Town Hall 448 Princes Highway Rockdale 63 Administration Building 2 Bryant Street Rockdale 54 Brighton Baths Amenities Building ( Cook Park Brighton Le Sands 54 Including Le Sands Restaurant, Kiosk, Millennium Centre, Athletics Club, Coastal Patrol & Public Toilets) Bexley Depot - Part D - Welding Shop 10 Rye Avenue Bexley 51 to Carpenters Shop Bexley Swimming Centre 98C Preddys Road Bexley 51 Bexley Depot - Part B - Main Store 10 Rye Avenue Bexley 48 (including Parks Store) Bexley Depot - Part C - Mechanics 10 Rye Avenue Bexley 48 Workshop Fig 9 Extract from Asset Management Strategy 2011 The need to replace the existing 50 metre outdoor pool and upgrade some of the ancillary elements such as heating and filtration, were the early drivers behind Council s reasoning to improve aquatic services from the Bexley site. It was considered that a new pool would continue to serve the existing population as well as provide for the city s future population growth. The supply/demand analysis undertaken as part of the Open Space and Recreation Strategy, supported by the comprehensive market analysis undertaken as part of the feasibility study, supports Council s proposal to expand the range of aquatic services provided at the Bexley Pool site. Chapter 4 of the Asset Management Strategy 2011 relates to future demand. This is where Council forecasts the needs and demands of the community in the future and outlines strategies to develop the assets to meet these needs. The list of major capital projects, programs and urban renewal areas in Chapter 4 were endorsed by Council at its meeting of 20 April 2011 as the adopted priority list of works to be adopted for financial modelling purposes and the development of the City Plan In accordance with the Integrated Planning and Reporting Framework, the City Plan , Asset Management Strategy 2011 and the Long Term Financial Plan 2011/ /25 are fully aligned in relation to the corporate wide strategy of infrastructure provision and funding. As a secondary step in this process, Council is reviewing the existing Rockdale Section 94 Contributions Plan 2004 to ensure that the works schedule within the plan is in agreement with the City Plan and Asset Management Strategy. There is substantial agreement already, however, as the feasibility reports for the major projects are finalised, the capital costs become more refined. These new costs, particularly for the Bexley Swimming and Leisure Centre and Central Library projects, are considerably higher than envisaged in the existing Section 94 Plan due to substantially increased scope.

24 23 6 Alternatives 6.1 Appraisal of preferred and alternative options There are a number of options which Council can and has considered. These are: 1. Do nothing. 2. Replace the 50 metre outdoor pool only. 3. Construct a new 50 metre pool at Bexley and an aquatic centre elsewhere in the City. 4. Three varying options for a new 50 metre pool and aquatic centre at the Bexley Pool site. Council and the community have resolved to proceed with Option 4, being replacement of the outdoor 50 metre 8 lane pool and construction a new indoor aquatic and leisure centre comprising the following mix of facilities: An 8 lane 25 metre lap swimming pool. A 20 metre x 12 metre program pool. Children's play/leisure pool. Spa pool / sauna / steam / plant room. Community space / crèche. Kiosk. Dry leisure space of 700 square metres to accommodate gym / fitness / health / well being use The following points were considered in determining which alternative provides the best outcome for the residents of Rockdale. Do nothing 1. Bexley Pool is considered a critical asset in Council s Asset Management Strategy The current pool shell has structurally failed and the filtration system is outdated and non-compliant with current requirements. While Council has undertaken remediation works to prolong the life of the pool shell, that period of time is drawing to a close. The recent feasibility work included geotechnical investigation of the area immediately surrounding the 50 metre pool. The investigation has revealed extensive uncontrolled fill on the site which is responsible for the structural failure. This in turn is resulting in substantial water loss which is further affecting the uncontrolled fill below the pool. A do nothing option is therefore not considered appropriate. 2. The current facility buildings do not meet the provisions of the Disability Discrimination Act and do not comply with the disability requirements of the Building Code of Australia. This does not meet the requirement of public access and equity. 3. A do nothing option would mean closing Rockdale City s only pool facility as various elements of the pool exceed their useful life and either fail or require substantial management and maintenance to remain in use. 4. A do nothing option does not address unmet community demand for quality year round aquatic and leisure facilities.

25 24 Replace the 50 metre outdoor pool only 5. The supply analysis undertaken as part of the Open Space and Recreation Strategy, supported by the comprehensive market analysis undertaken as part of the current feasibility study, supports Council s proposal to expand the range of aquatic services provided at the Bexley Pool site beyond simply the replacement of the 50 metre pool based on recreation participation in swimming and aerobic/fitness activities. Replacement of the 50 metre outdoor pool only would not meet current and future demand for quality year round aquatic and leisure facilities. 6. The replacement of the outdoor 50 metre pool only does not address the existing facility buildings which do not meet the provisions of the Disability Discrimination Act and do not comply with the disability requirements of the Building Code of Australia. Construct a new 50 metre pool at Bexley and an aquatic centre elsewhere in the City 7. Council has previously considered the provision of an indoor pool as part of a new Civic and Community precinct at Ador Reserve, Rockdale. As part of the consideration of the Open Space and Recreation Strategy, Council resolved that the redevelopment of the Bexley Pool site was the preferred priority for the provision of aquatic facilities in the short term and that additional facilities at Ador Reserve would be investigated in future via a feasibility analysis in the long term. 8. Council s position remains that the preferred site to provide aquatic facilities remains at the existing Bexley Pool site as it has historically provided this service since Additionally, aquatic and leisure centres principally draw their usage from within a 5 kilometre catchment area. The Bexley Pool site maximises the attraction of the facility to Rockdale residents. The site at Ador Reserve and its proximity to Botany Bay would most likely result in reduced patronage and therefore reduced sustainability due to a significant decrease in the population located within the 5 kilometre radius. Three varying options for a new 50 metre pool and aquatic centre at the Bexley Pool site 9. The first option Council considered was based on outputs from the Bexley Pool Reference Group. This option envisaged a lower scale of development exclusively catering for additional water based needs. While this option comes with the lowest capital cost, it: does not meet all community needs and expectations. was affected by the location of existing stormwater infrastructure. required a higher level of community subsidy per user. required retention of existing facility buildings which do not meet the provisions of the Disability Discrimination Act and do not comply with the disability requirements of the Building Code of Australia. 10. Option 2 was a model recommended by consultants based on initial supply/demand analysis. Like Option 1, it was affected by the location of existing stormwater infrastructure and required further refinement. 11. As part of ongoing consultation, Council sought advice from three major pool management operators (YMCA, BlueFit and Belgravia Leisure). The outcomes from these discussions both validated and refined the supply/demand analysis undertaken by the consultant and enabled Council to adopt a recommended facility mix to be incorporated into any redevelopment of the

26 25 site. The pool management operators further assisted Council, the Bexley Pool Reference Group and consultants to develop a preferred design for how the recommended facility mix was arranged within the site. 12. The current Feasibility Study has provided Council with considerable market assessment of aquatic recreation needs. This involved the following elements: Demand analysis including reference to other existing/proposed facilities in the catchment and the demand for aquatic facilities over time Implications of likely demand and current usage An upgrading rationale (including consideration of the benefits of ancillary elements with the potential to deliver improved amenity, accessibility and financial sustainability) Operational forecasts (including use/visits, fees and charges, maintenance costs and asset management costs). Various management models and their cost implications. The feasibility study confirms that the best outcome is to provide enhanced facilities through complete replacement of the outdoor 50 metre pool and provision of a new indoor aquatic and recreation centre. 6.2 Appraisal of alternative service delivery methods Council is essentially seeking to provide two different recreational activities on the site, those being aquatic and leisure. The Open Space and Recreation Strategy as well as the feasibility study have both confirmed the high participation rates associated with these two forms of recreation. Appraisal of alternative service delivery methods needs to consider two elements: 1. Getting the asset constructed, and 2. Operating the asset These elements can be assessed individually or as a combination of both. Procurement strategy is intended to cover the full range of procurement options and the relative advantages of each procurement option should be considered in respect of the pool development and the best option selected by the Council against criteria. Criteria usually used in procurement strategy analysis include; Affordability - the extent to which alternative methods of procurement make the project more affordable. Risk Transfer - how risk allocation varies according to method of procurement. Service - to what extent the outsourcing of a service which is non-core to the provision of services by the Council itself or raise issues of public interest, and how can these be protected. Efficiency - how can the procurement be structured to maximise benefits of efficiency and innovation. Alternative forms of procurement include the following:

27 26 Construct only. Council proceeds with the detailed design of the facility and tenders a construction contract. Council later considers how it wishes to manage maintenance and operation of the swimming pool. This requires Council to instruct architects to design the pool and manage the design the phase. Council also retains design risk and interface with the construction contractor, maintenance contractor and operations provider. Design and Construct (D&C). Council develops outline specifications for the pool based on outputs and functions and tenders out the design and construct as a package. Council passes design risk to the contractor and provides scope for the private sector to offer alternative designs. This may help offer innovative solutions to efficiencies around costs or introduce commercial variants such as pool layout and commercial facilities. Council is less directly involved but can mitigate the loss of control through oversight and consultation. Design, Construct and Maintain (DCM). Council adds the requirement to maintain the pool as an additional part of the design and construct package. The objective is to fix maintenance costs for a defined period of say, 10 years. This encourages the contractor to use better quality materials and reduce the whole of life cost. This extra risk being borne by the contractor may result in a risk premium being included but Council s longer term interests may be protected by the cost certainty. Design, Construct, Maintain, Operate (DCMO). Council adds the requirement to operate the pool as an additional part of the DCM package. This arrangement is a variant on a public private partnership but does not include the provision of financing. The private sector would need to form a consortium including a builder, maintenance contractor and operator. The term of the contract could be around 10 years, giving the operator sufficient time to have a strong financial incentive to perform. The pool would be designed by the private sector with full input from the operator. The basis of the operator cost could reflect reimbursement of costs according to fixed negotiated provisions rather than cost plus, and include an incentive for performance. Alternatively, the operator could be required to retain the revenue from the pool and bid a fixed payment formula to the Council. This would incentivise the private sector to maximise commercial revenue and lessen any financial cost to Council. Council would need to consider to what extent it is comfortable in contracting out operations with some associated loss of flexibility and control. This would be mitigated by appropriate structuring of commercial contracting arrangements including the stipulation of key performance metrics. Design, Construct, Maintain, Operate, Finance (Franchise). Council out sources the complete business of running the pool for a term of say, 15 years. Council could require the private sector to bid a franchise fee or subsidy for running the pool. Council could choose to make payments to the private sector shortly after completion of the pool and later as monthly or quarterly payments to allow the private sector to earn its targeted return. Payments would be conditional upon performance. Council could negotiate upside sharing provisions to ensure it would benefit should the pool become highly profitable. The terms of the franchise would be set out in an agreement that would require the private sector to transfer ownership of the assets back to the Council upon expiry in decent condition. The land on which the pool is located would remain under Council ownership under a lease.

28 27 Full Privatisation. The development rights to the pool together with all existing assets and land would be transferred to the private sector. The sale agreement would be specific about the obligations on the private sector. The private sector would need to determine how it could make the business profitable, failing which, some form of agreement for an ongoing subsidy would be negotiated. Preferred Procurement Option At this stage, Council has been progressing on the basis that procurement will be via either of the Construct Only or Design and Construct procurement methods. Management and operation of the facility would then be via a Management Agreement with a private management operator as has been the case with the existing Bexley Pool since it was opened. While the Review is with the Division and prior to Council formally resolving to proceed with this project, further investigations will be made into the other options to analyse and select a preferred approach to procurement. The management of local government Aquatic Centres are characterised by two main models and variants which are: 1. Direct Council Management 2a. Outsourced via Management Agreement to a specialist company for periods 3-5 years 2b. Outsourced via Lease Agreements to a specialist company for periods years in return for investment in to facility infrastructure The advantages and disadvantages are summarised below: Direct Council Management Advantages Council retains responsibility for delivery of service outcomes Adequate level of capitalisation to provide working capital Facility cleaning, maintenance of plant and equipment is retained by council and is generally performed to a higher level than by outsourced providers Financial surpluses are retained and are able to be re-invested back into council Disadvantages Council assumes all financial and operational risk Facility management can be constrained by slow moving council processes which can impact on speed to react to new trends or opportunities Specialised industry program and sales and marketing knowledge is not always available from within the council structure Local government Award rates are generally 25-30% higher than leisure industry rates which adds a significant over head Council required to provide all equipment to operate the facility

29 28 Outsourced via Management or Lease Agreement Advantages Council retains responsibility for delivery of service outcomes via a contractual arrangements with an experienced industry operator Financial and service risk is minimised through the transfer of some risk to the Contractor Council is able to obtain specialised industry knowledge, contemporary sales and marketing expertise and operate with a structure that provides speed to react to opportunities Centre overheads are reduced via the movement of centre staff to a leisure industry award As part of the Management Offering, Contractors typically will provide activity equipment including IT, Fitness and Activity Equipment Contractors are able to become investors into facility infrastructure in return for long term tenancy. This provides Council with a long term management partner. Disadvantages Financial leakage can occur if the centre generates high levels of income / profit beyond what was anticipated this can be negated by incorporating profit sharing arrangements that reflect councils owner ship of the facility The scope of service outcomes, unless accurately prescribed in the contractual arrangements can be compromised as contractors will focus on the higher income earning activities Facility cleaning, maintenance and repair of plant and equipment can be variable and become the source of contention Council has less control and influence of the day to day activities and outcomes and is required to performance manage the contract Depending on the length of the agreement entered into, the outsourcing term can be too long for Council if the performance of the operator is variable or too short for a contractor to receive an adequate return on investment Council is exposed to risk of Contractor failure through inadequate working capital or poor business performance at the contracted facility or other facilities under management The management of Bexley Pool has been outsourced since its opening to private management operators. This remains Council s preferred model for operational management. However, it is acknowledged that once the Bexley Swimming and Leisure Centre is opened, there is a period of approximately two years before the operation and running reaches an equilibrium. In this period patronage and memberships will gradually increase as the community and users become fully aware of the facility as marketing and promotional campaigns gain momentum. Similarly, the operational elements of the pool are being more clearly understood. That is water use, energy use, maintenance regimes etc. Council has yet to make a decision whether to invite tenders for the management operations of the Bexley Swimming and Leisure Centre with the view of management:

30 29 1. commencing immediately upon opening of the Centre for an extended period 2. commencing immediately upon opening of the Centre for a 2 year period only. It is recognised that the first two years of operation can be viewed as risky for management operators until such time as the equilibrium is achieved and is more fully understood. Entering a long term agreement given the uncertainty is likely to result in additional costs being introduced into the tender applications by operators to compensate for this uncertainty and Council may not achieve the best value as a result. Instead, it is considered that Council should bear all operational risk in the first 2 years by taking responsibility for all operational costs, including taking all revenues. The management operator is then paid a fixed rate to manage the pool operations and provide the agreed upon services. In this way, there is a saving to Council as the operator is not adding a premium to the operational cost in the absence of clear understanding of that cost. After the initial 2 years these costs will have stabilised and will be well understood and can form the basis of subsequent invitations for tender to manage the pool operations. In conjunction with appraisal of the desired procurement model, Council will undertake comprehensive analysis to determine which operational model it will use, albeit that the model is unlikely to be via direct management by Council. 6.3 Assessment of alternative methods of acquisition Aquatic centres are unique and complex facilities which are designed to cater for the specific demands, needs and budget of their communities. They are not available to purchase either off the shelf or by purchasing an existing private facility and converting it for the use proposed. 6.4 Assessment of the consequences of not proceeding with the proposal The existing Bexley Swimming Centre is in the final phase of its asset management lifecycle (see Figure 7). The pool and its associated pumps and filtration equipment are near the end of their useful life. Maintenance and operational costs for the pool are significant due to the decline in the condition of the pool shell in particular. The 50 metre outdoor pool currently enjoys a patronage of approximately 130,000 uses a year, a large portion of which is by local primary and secondary school pupils. The pool is deemed to be a critical asset in Council s Asset Management Strategy and has provided the Rockdale community with their aquatic needs since its construction in The decision for Council based on the asset management lifecycle was whether to modify or upgrade / decommission (replace or dispose) of the asset. The community has through its patronage of the pool and through engagement and feedback clearly stated that not proceeding with replacement of the 50 metre pool is not an option. The consequences of not proceeding are that the condition of the pool shell and its associated pumps and filtration equipment will decline to the point where the cost of remedial work to keep them operating becomes cost prohibitive or they fail altogether. At this point the pool would have to be closed.

31 30 The Bexley Swimming and Leisure Centre Feasibility Report has also highlighted the potential participation numbers for recreation in swimming and aerobics/fitness. The consequences of Council not proceeding with this proposal include: Recreational demands of residents are not met. Residents that are able are required to travel further to obtain these services. Residents that are not able to access alternate facilities are disadvantaged. The health, wellbeing and lifestyle benefits associated with the facility are not able to be enjoyed by the community. As detailed in Section 6.1, Council and the community have determined that the do nothing option is not an option. Option 4, being replacement of the outdoor 50 metre 8 lane pool and construction a new indoor aquatic and leisure centre, is the preferred community model.

32 31 7 Financial Impact 7.1 Assessment of the whole of life cost of the project to within 5% accuracy The capital cost of the project has been determined as $31.5 million. With the base case scenario, it is anticipated that the proposal will require an operational subsidy of around $7,000 in year one, and will produce an operational surplus of around $109,000 (not including depreciation) by year three. This is in contrast to the current operational cost to maintain Bexley Pool of $370,000 per year. Capital Cost As part of the feasibility works undertaken to date, Council has: Received geotechnical and environmental advice on site and soil conditions. Undertaken site analysis and investigated site constraints. Engaged a Water Servicing Coordinator to liaise with Sydney Water regarding their assets. Received aquatic engineering advice relating to filtration systems and requirements. Received mechanical, electrical and hydraulic engineering advice relating to heating, ventilation, air conditioning, lighting, water and power generation. All of this information has been subsequently forwarded to quantity surveyors Donald Cant Watts Cork (DCWC) and has therefore allowed a far greater level of cost estimation accuracy. A further peer review was commissioned by Council and undertaken by MBM quantity surveyors. The purpose of the peer review was to provide independent review of the works undertaken by DCWC as well as to cost the assumptions and exclusions within the DCWC report. The capital cost of the project as estimated by MBM is $31.5 million. The DCWC cost estimate for the proposal is detailed in Appendix M of the feasibility report. The breakdown of costs as detailed in the MBM review are attached in Appendix 3. Annual Operating Cost With regard to whole of life operating costs, is not possible to assess operational revenue and expenditure with the same degree of accuracy as capital cost estimation as it can be greatly influenced by management of the facility and market forces. However, in the initial feasibility works undertaken by Recreation Planning Associates, the forecasts were estimated predominately using research data obtained based on the experience of similar centres around Australia as researched and documented since 1991 in Adelaide University s Centre for Environmental and Research Management (CERM) annual surveys of leisure and aquatic centre operations and performance. As part of the current feasibility work, Recreation Planning Associates has received considerable input from three pool operators (YMCA, Belgravia Leisure and BlueFit Leisure) which has enabled more refined forecasting to be undertaken. The three operators have been extremely generous to Council with their time, input and knowledge and it is considered that this has assisted greatly in improving the decision making process as well as resulting in an improved facility layout.

33 32 The Recreation Planning Report is detailed in Appendix E of the feasibility report. This includes Business Plan Forecasts in detail within Attachment C of that Report. 7.2 Identification of funding sources Council developed a philosophy on the funding sources during the initial stages of the Bexley Swimming and Leisure Centre feasibility study. The funding sources that were established are S94 developer contributions (expansion of services), asset renewals fund (a notional fund, for the replacement of existing assets), grant funding (grant funding yet to be identified) and the balance of the project to be funded by way of asset sales. The capital cost of the project is estimated to be $31.5 million. Council proposes to utilise the following funding sources to deliver this project: $5 million - asset renewal funds - replacement of the existing 50 metre pool and ancillary equipment. $13.2 million - externally restricted reserves - developer contributions for the provision of new assets. $0.2 million - internally restricted reserves Bexley Pool Reserve. $10.1 million - asset sales. $3 million - grant funds # # Council has set a target of $3 million in obtaining state and federal grants. Where this target cannot be met, an external funded loan, or additional asset sales will need to be raised to compensate. The Asset Renewals Fund is the asset replacement portion of the project and Council has identified this portion to be funded from operational type funds similar to any other renewals that Council would undertake. To achieve this, a Special Rate Variation (SRV) of 5% will be applied for during the 2012/2013 financial year to replace the expiring SRV of 3% for refurbishment of Council facilities. It is intended that the new SRV will complete the final three years of the original SRV application that was reduced and then fund the loan repayments for the loan raise for the asset renewal portions and possible grant funding shortfall. Council will receive notification from IPART in respect of the SRV application in June Identification of any potential increase in Council s actual or prospective expenditures, whether in terms of one-off capital amounts or recurrent expenditures. This includes consequential recurrent costs such as maintenance, debt servicing, staffing etc Bexley Pool and its associated facilities have an estimated fair value of $8 million. The proposal will result in the complete replacement of the pool and all associated facilities at an estimated cost of $31.5 million. Therefore there is a one-off capital expenditure beyond what would have been expected to simply replace the existing pool, pumps and filters of $23.5 million. The Recreation Planning Report (Appendix E of the feasibility report) details in Table 8 the comparison between the annual service cost of the existing pool versus three cases for the proposed upgrade. A copy of Table 8 is attached below in Fig 10.

34 33 Fig 10 Annual Service Cost comparison The annual service cost of the existing Bexley Pool is shown in Fig 10 above as being $470,000. This is based on a $233,000 annual operating cost plus depreciation and asset renewal as detailed. As detailed in Section 3.1 Council recently appointed, through a competitive tender process, the YMCA to manage Bexley Pool. As part of the process it has been determined that the annual operational cost of the Pool to Council for the 12 month period from 30 April 2012 to 30 April 2013 will be $370,000. As such, the Annual Service Cost of the existing pool (allowing for depreciation and asset allowance costs) is $610,000. The anticipated increase in total recurrent expenditure costs (operational cost + depreciation + asset renewal allowance) is therefore $80,000 per year for the base case scenario. However this increase is associated with a predicted increase in annual visits from 130,000 to 541,000. Therefore a 13% increase in expenditure resulting in a 416% increase in visitation. Should Council achieve a better than base case outcome through effective marketing and management, there is potential for the recurrent expenditure cost of the proposed Bexley Swimming and Leisure Centre to be lower than for the existing Bexley Pool. 7.4 Identification of systems in place to monitor and control increases in project costs A comprehensive risk matrix has been developed which identifies a number of activities which can lead to project cost escalation. Appropriate controls have been identified and will be implemented to mitigate this risk.

35 34 Additionally, the internal reporting structure will ensure that regular reporting occurs and any cost increases are identified early and a decision made as to the most appropriate course of action prior to proceeding. In most cases this will be elevated to a decision of Council at a public meeting. 7.5 Identification of any potential loss in the value of Council s assets or a potential loss in actual or prospective revenue The existing Bexley Swimming Centre has an estimated fair value of approximately $8 million. The project, which would result in a complete upgrade and redevelopment of the site, has an estimated value of $31.5 million. As such, it is clear that there is an improvement in the value of Council s asset, even allowing for asset sales of $ million to fund the project. With regard to revenue, the existing pool is currently operating at a financial cost to Council of approximate $370,000 a year. It is estimated that the new facility would from the third year of operations onwards operate at a profit of $108,847 a year. The anticipated increase in recurrent costs (including depreciation and asset renewal) is estimated to be $80,000 a year in the base case scenario. However this increase is associated with a significant increase in annual visits from 130,000 to 541, Consideration of the inability of Council to fulfill its Charter obligations to provide adequate, equitable and appropriate services and facilities for the community Council s Charter obligations, amongst others, include: To engage in long-term strategic planning on behalf of the local community In conjunction with a comprehensive review of the Rockdale Local Environmental Plan (LEP) 2000, Council prepared a number of strategies to inform the LEP review. These strategies included residential development, employment and economic development, leisure and recreation, and transport. The Open Space and Recreation Strategy, adopted by Council in May 2010, represented Council s long term (25 year) planning for the open space, leisure and recreation needs of the community and informed the adopted Rockdale Local Environmental Plan (LEP) Open space and recreation are major contributors to quality of lifestyle and the health and well being of the community. Open space enhances the character and function of a place and recreation and sport facilities are essential for people s physical and social health. The strategy enabled Council to review leisure and recreation participation trends and the implications for future provision in Rockdale City Council. It is important to note that the Exercise, Recreation & Sport Survey (ERASS) undertaken by the Australian Sports Commission reveals that the top three physical activities by participation are walking, aerobics/fitness and swimming. The surveys, which commenced in 2001, reveal these activities have been the top three in participation for the 10 consecutive years that the ERASS has be conducted. It is very clear, therefore, that catering for the recreational uses of swimming and aerobics/fitness as proposed by the Bexley Swimming is good long term strategic planning, addressing known community demands.

36 35 To bear in mind that it is the custodian and trustee of public assets and to effectively plan for, account for and manage the assets for which it is responsible As detailed throughout this review, the process undertaken by Council to date in respect to Bexley Pool has been one of effectively planning for the current and future needs of the community with respect to an asset which is nearing the end of its useful life. Bexley Pool is at the decommissioning phase in its asset lifecycle as shown in Fig 7. At this stage in an asset s life, a decision needs to be made as to whether to modify/upgrade or decommission (replace or dispose) of the asset. The feasibility studies which Council has undertaken represent effective planning and management of a critical asset for which Council is custodian and which provides a valued service to the community. To promote and to provide and plan for the needs of children. The community exhibition and engagement process highlighted the significant importance of the 50 metre outdoor pool for school carnivals and that the need to provide an indoor facility to meet the learn to swim needs of the community is vital. These issues were verified by submissions received from major swimming bodies and associations. The submissions all emphasise the role of swimming in maintaining health and well being and the importance of learn to swim programs to minimise the likelihood and trauma associated with drowning, particularly in children. The crèche and leisure pool are specifically focussed on the needs of children. 7.7 Analysis of the impact on Council s cash flow A projected cash flow has been developed based on the 2012/2015 Rockdale City Plan and extended to 2017/2018 when the final project retentions are paid. Council has taken a conservative approach in the assumptions used in the development of this cash flow. The major assumptions are: Council will continue to operate as business as usual. The Library and Civic Centre and Bexley Swimming and Leisure Centre projects will run in tandem. The asset renewal portions of both projects will be funded by external loans. Council will be successful in gaining a Special Rate Variation (SRV) of 5% to replace the 3% SVR expiring in 2012/13 to fund the loan repayments. Council has set a target of $3 million to be obtained in grant funding. This is not included in the cash flow analysis. External loan funding or increased asset sales will offset any reduction from the grant target. External loan funding of $3 million has been used in the cash flow analysis. The operational costs of the Bexley Swimming and Leisure Centre will not increase.

37 36 Statements of Cash Flows (Bexley Pool and Library & Civic Centre) Cash Flows from Operating Activities Projected Projected Projected Projected Projected Projected 2012/ / / / / /18 $ $ $ $ $ $ Receipts Rates and annual charges 52,810 55,561 57,340 59,175 61,307 63,515 User charges and fees 5,182 5,289 5,399 5,512 5,705 5,904 Investment revenue and interest 3,095 3,242 2,898 3,220 3,556 3,908 Grants and contributions 12,606 13,410 12,984 13,164 13,430 13,705 Other revenue 5,399 5,520 5,645 5,772 5,974 6,184 Payments Employee benefits and on-costs (31,366) (32,457) (33,587) (34,755) (36,493) (38,318) Materials and contracts (18,554) (19,123) (19,602) (20,712) (21,437) (22,187) Borrowing costs (343) (454) (792) (1,733) (1,710) (1,687) Other expenses (10,779) (11,465) (12,195) (12,972) (13,426) (13,896) Net cash provided by operating activities 18,051 19,524 18,090 16,669 16,905 17,129 Cash Flows from Investing Activities Receipts Redemption of investment Sales of infrastructure,plant and equipment Sales of property - 11,500 4,400 2, Payments Purchase of investments Purchase of infrastructure,property,plant and equipment - City Projects (12,438) (12,160) (12,429) (11,461) (11,862) (12,277) Purchase of infrastructure,property,plant and equipment - Library & Civic Centre (1,300) (800) (19,300) (2,300) (1,300) - Purchase of infrastructure,property,plant and equipment - Bexley Pool (1,700) (1,700) (23,600) (3,000) (1,600) - Net cash used in investing activities (14,488) (2,210) (49,979) (13,411) (13,812) (11,327) Cash Flows from Financing Activities Receipts Proceeds from borrowings 2,200 1,100 19,100 1,100 1,100 1,100 Payments Repayment of borrowings (1,285) (1,024) (1,178) (1,682) (1,602) (1,669) Net cash outflow from financing activities ,922 (582) (502) (569) Net increase (decrease) in cash and investments held 4,478 17,391 (13,966) 2,676 2,591 5,233 Cash and Investments at the beginning of the reporting period 55,000 59,478 76,869 62,903 65,579 68,170 Cash at the end of the reporting period 59,478 76,869 62,903 65,579 68,170 73,403 Fig 11 - Cash flow analysis incorporating the provision of the Bexley Swimming and Leisure Centre and Central Library and Civic Centre projects Council will maintain sufficient cash reserves during construction and the reserves will increase to over $73 million by 2017/18. The majority of the growth in reserves is attributed to Section 94 developer contributions. 7.8 Calculation of net present value and cost/benefit (where benefits can be quantified) The net present value and social benefits of the proposed upgrading to the Rockdale community are detailed within The Bexley Pool Redevelopment Feasibility Study (Appendix E of the feasibility report).

38 37 8 Public Consultation 8.1 Report of public consultation undertaken and community response At its meeting of 7 December 2011, Council unanimously resolved: 1. That the report titled Bexley Pool Upgrade be received and noted. 2. That Council reaffirms its commitment to the pool proposal and resolves to progress the Bexley Pool Upgrade project to public exhibition and engagement for the period 13 December 2011 to 2 March That Council endorse the expenditure of $16,000 from the Bexley Pool Reserve for the purpose of community engagement as detailed in this report. 4. That Council writes to all residents immediately adjoining the perimeter of the Bexley Pool site inviting them to attend consultation meetings which are scheduled to occur between 13 December and 23 December That upon completion of the public exhibition and engagement, the comments be collated and reported to a Council Information Session in March The community engagement proposal incorporated a quick reference fact sheet to introduce the proposal and encourage the reader to access more detailed information and provide feedback to Council. The more detailed information, including the concept design drawings and feasibility report, could be accessed via Council's website. In addition, hard copies were provided at select locations including Bexley Pool, Council's Customer Service Counter and all Council libraries. Stakeholders include the broader community, Bexley Pool user groups (service providers and local schools), and neighbouring residents of Bexley Pool site. Three levels of engagement were incorporated to inform, consult and involve, ensuring the community was well informed, had the opportunity to make submissions, and had options to attend sessions to clarify and discuss the concept design with Council officers. The promotional strategies commenced on 13 December 2011 with a wide range of campaigns being gradually implemented during the engagement period. The campaigns included: Article in Rockdale Review. Posters in all branch libraries, Customer Service Centre and Bexley Swimming Centre; Flyer for general distribution. Council website a dedicated section on the home page and a link to have your say / public exhibition. Letters to all residents immediately adjoining the perimeter of the site inviting them to attend consultation meetings. Letters/ to the Reference Group and interested community members who have provided their contact details to Council. Advertisement in the local newspaper three times during the engagement period. Media briefing with local and ethnic media. Media release for local and ethnic newspapers.

39 38 A combination of traditional and contemporary engagement techniques were used: A site display to inform users about the proposal and other relevant information. Council s website all feasibility documents related to this project and online have your say facility. Booklet with concept design drawings available at local libraries, Customer Service Centre and the site. Fact sheet with project highlights and a section for comments with a reply prepaid envelope. An invitation to all residents immediately adjoining the perimeter of the site to attend consultation meetings. Information stands at the Australia Day event. Invite for written submissions. Information desk at Bexley Pool (three hour sessions twice in January 2012 and three times in February 2012) to involve residents, user groups and the broader community in the engagement process. Separate consultations were held with neighbouring residents to discuss and address their concerns with the project. The community exhibition and engagement process resulted in 1,659 submissions being received from residents, users, major swimming bodies and associations, and students, teachers and principals of local schools. The outcomes were reported to Council on 4 April All submissions received, including the results of the online survey, are summarised in the Community Feedback Report (Appendix 1). The strategies used to report back to participants and the broader community included: Article in Rockdale Review. Media releases for local and ethnic newspapers. Council website. Poster at Bexley Pool. Letter/ to community members who provided their contact details.

40 39 Capital Expenditure Review Additional Requirements 9 Business/Management Project Plan The Bexley Pool Redevelopment Feasibility Study Stage 2 Report dated November 2011, prepared by Recreation Planning Associates (Appendix E of the feasibility report), was commissioned to assess the feasibility of the Bexley Swimming in accordance with the assessment requirements established in the NSW Government s Capital Expenditure Guidelines.

41 40 10 Risk Management Plan As part of Rockdale City Council s quality procedures system, a Risk Management Strategic Plan has been developed, the third review of which was published on 9 May The Risk Management Strategy provides the foundation for the comprehensive integration of risk management into Rockdale City Council policies, processes and activities. Council will utilise the International Standard for Risk Management Standard ISO 3100:2010 to manage risks. This is a structured and proactive approach that can be applied Council-wide to support management of strategic, operational, financial and/or regulatory risks. Under this approach, there are five key stages to the risk management process. 1. Communicate and consult - with internal and external stakeholders. 2. Establish context - the boundaries. 3. Risk Assessment - identify, analyse and evaluate risks. 4. Treat Risks implement and assess controls to address risk. 5. Monitoring and review risk reviews and audit. Figure 11: Our risk management approach using ISO 3100:2010 Risk Management Standard

42 41 Risk Management Plan Council engaged PricewaterhouseCoopers (PWC) to facilitate a project risk assessment and to prepare a risk management plan with relevant internal stakeholders. The activities facilitated by PWC included: Facilitate workshop on project risk assessment. Provide comments on draft risk management plan. Validate project risk assessment and risk management plan with selected Rockdale City Council management. Assist in the quantification and inclusion of relevant risks in the Capital Expenditure Review draft. A risk register/matrix was developed which identified 79 risks associated with this project. The risks were grouped in accordance with the Capital Expenditure Guideline headings of: Completion/Construction Risk. Compliance Risk. Demand/Market Risk. Design Risk. Environmental Risk. Investment/Planning Risk. Management/Operations Risk. Other. Reputation Risk. Workplace Health and Safety Risk. In accordance with the Risk Management Strategy, the risks were: 1. Identified. 2. Analysed. This involves considering and rating the likelihood of occurrence and potential consequences. At this point, no consideration is given to existing controls. 3. The likelihood of occurrence is the probability of an event occurring. When considering the likelihood of a risk, you need to consider both the probability and frequency of occurrence. 4. The consequence assessment is the effect or impact of the risk event. It is measured both financially (in terms of profit/loss or balance sheet impact) and operationally (human and physical) 5. Scored. Inherent risk is the overall raw risk. It is determined by combining the likelihood and consequence ratings. Ultimately, the level of inherent risk will determine how a risk is treated. 6. Addressed. Addressing risks involves identifying and evaluating existing controls and management systems to determine if further action (risk treatment) is required. 7. Existing controls are identified and then assessed as to their level of effectiveness. 8. Likelihood and consequence are then re-evaluated based on the existing controls. 9. Residual risk is the level of risk after considering existing controls. It is determined by applying the effectiveness of existing controls to inherent risk. 10. Risk treatment involves identifying the range of options for treating unacceptable risks, assessing those options, preparing risk treatment plans and implementing them.

43 42 Risk treatment options include: Eliminating the risk. Avoiding the risk (reduce likelihood or consequence). Transferring the risk. Retaining the risk. Bexley Swimming and Leisure Centre Risk Management Plan A risk register/matrix was developed which identified 79 risks associated with this project (attached on the following pages). Following assessment of the risk in accordance with steps 1-9 listed above, there remain 12 risks with a residual risk value of High. These residual risks and their corresponding risk treatments are detailed below: Task or Activity Type List of hazards associated with the activity or task (Risk Source) What could actually happen/ (Event) What is the level of residual risk? What is the risk treatment if the level of residual risk is between high and extreme? Completion / Construction Weather and seasonal implications Less productivity during wetter seasons of the year for outside work High This is within Council's Risk Appetite and is a latent condition of contract Demand / Market Risk Insufficient funds Insufficient funds to complete the program to community expectations High This will be monitored throughout the project with regular community updates so that an informed decision can be made Council based on community feedback and engagement. Demand / Market Risk Competition / market share Inability to attract anticipated numbers of patrons (due to price, location, other competing leisure centres, etc.) High Additional advertising and awareness procedures will be in place. A marketing strategy may need to be considered and discussed with the operator. Design Risk Inadequate site investigation. Inadequate site investigation arises from the lack of awareness of the existing High Additional Geotechnical and environmental bores will be analysed prior to the Tender for

44 43 conditions, inadequate focus on finance and lack of time to carry out investigations. Construction Design Risk Appropriateness of specifications. A lack of understanding of specifications or scope. High Effective consultation at all phases to manage expectations. This is within Council's Risk Appetite Design Risk Project Scope Scope of Project not well defined and communicated. Scope of work does not meet stakeholder s expectations. High Effective Consultation at all phases to manage expectations. This is within Council's Risk Appetite Investment / Planning Risk Cost control Prices exceed allocated budget when tenders close High Contingencies to deal with increased project cost documented and adopted. Could include reduced scale and facilities, increased borrowing or increased asset sales. Investment / Planning Risk Insufficient funds. Insufficient funds to complete the project to community expectations High Effective Consultation at all phases to manage expectations. This is within Council's Risk Appetite Investment / Planning Risk Bankruptcy during construction Contractor involved on project becomes bankrupt High This is within Council's Risk Appetite. Contingency measures may be required to be considered to minimise project delays should this eventuality occur. Management / Operations Risks Program delay. Failed to understand critical milestones within project programs. High This will be monitored throughout the project with regular community updates.

45 44 Other Risks Political environment. Changing political environment. High Effective engagement of community and Councillors. This is within Council's Risk Appetite Other Risks Political Other competing projects are deemed more important for the community and to be done in priority High Effective communication between community and Councillors at all phases to manage expectations and determine priorities.

46 45 11 Probity Plan An overarching Probity Plan to cover the Major Projects Program detailed in the City Plan is being developed. The Probity Plan will be finalised and forwarded to the Division of Local Government prior to Council proceeding with procurement for this project.

47 46 12 Tender Evaluation Council has an adopted Code of Tendering Practice (02/07/2010) within its Corporate Policy Register. This policy would set the principal guidelines by which the tendering process for this Project would be undertaken. This Capital Expenditure Review is submitted to the Division prior to commencement of the project as required by the Capital Expenditure Guidelines. At this stage, Council has finalised the Feasibility Phase of the Project and has completed the public engagement and exhibition. A final decision to proceed on the project is expected by the end of the year, at which point Council will also consider the means by which the Project will be procured. Details of the tendering/contracting process will be forwarded to the Division prior to commencement of works, once a decision to proceed, and the method of procurement, has be resolved by Council. The Code of Tendering Practice will be attached and forwarded to the Division in Appendix 4

48 47 13 Reporting In accordance with the Capital Expenditure Guidelines, Council will put mechanisms in place to report on all aspects of the project. Minimum reporting requirements will include: quarterly reporting to the Council on the progress of the project quarterly reporting to the Council on the costs and budget variances regarding the project. Where costs and budget variances are reported by line item, the report should also include the impact on the total project any issue that may have an adverse impact on the project (this may include monetary and non-monetary inputs and outcomes). The risk management plan may be relevant in this regard reporting capital works projects in Council s annual report, which is considered to be best practice.

49 48 Appendix 1 Community Feedback Report

50 49 Appendix 2 Bexley Swimming & Leisure Centre Feasibility Report

51 50 Appendix 3 MBM Quantity Surveyors Peer Review

52 51 Appendix 4 Code of Tendering Practice

53 52 Appendix 5 Risk Management Matrix