Media Release - FOR IMMEDIATE RELEASE
Elected members yesterday agreed to reallocate Better Off funding from Tranche 1 and unbudgeted capital spending to ensure the completion of two current projects.
“Both the Hokitika Swimming Pool and the Carnegie Building are important assets for the district,” says Chief Executive Simon Bastion. “Current work needs to be completed to ensure that these assets are available and safe for the community to use.”
“Council is in an unfortunate situation where ongoing delays, project variations, and the impacts of the epidemic with supply chain issues and economic impacts, have seen costs increase. While our initial budgeting scoping could have been managed better, many of the issues that we are now facing were unforeseen.
In 2022, our contractors Joseph and Associates reviewed the design and pricing of Stage 2 of the Swimming Pool project to identify cost savings and provide a confirmed budget. It is agreed that much of the work must be done. Council has to replace the existing swimming pool treatment plant to avoid the risk of unscheduled closure. The treatment plant is at the end of its life and non-compliant with current standards. It is also necessary to complete the deferred seismic strengthening work.
At this point in time, all the work on the Swimming Pool has been externally funded through Kānoa Regional Economic Development and Investment Unit, including an additional $1.42 million approved at the end of 2022. Council agreed that the Swimming Pool project is a priority project and $690,000 from the Better Off funding that was allocated to Township Improvements will be reallocated. An additional unbudgeted loan of just over $420,000 will cover the remaining costs.
Council also agreed to reallocate funding towards the Carnegie Building Earthquake Strengthening project. Once complete, the seismic upgrade will enable the museum to proceed to the internal fitout. While undertaking the earthquake strengthening work, the parapet was found to be substantially deteriorated and causing water leakage into the builiding. This was not part of the original scope of the project but it is necessary to prevent continued water leakage and ensure public safety from loose materials. Completing the work while the scaffolding is up reduces the overall cost of removal and re-erection.
Funding from the Community Halls budget of $260,000 has been identified to be reallocated towards completion the Carnegie Building project. A loan of just under $247,400 will cover the remaining costs.”
Some projects identified to receive Better Off Tranche 1 funding have been deferred until Tranche 2 becomes available in July 2024.
Media enquiries to:
Emma Rae, Strategy and Communications Advisor