South Wairarapa councillors are being asked to approve an extra $75k or $116k [contingency-inclusive] to build a new dog pound in Featherston.
The council previously set the budget at $340k.
Approving the extra funding, contingency inclusive, would bring the project total to $456,500.
The dog pound currently used by South Wairarapa District Council is not compliant with animal welfare standards and presents health and safety risks to staff.
There have been several years of conversations between the three Wairarapa district councils to create a combined facility, but to no avail.
The new South Wairarapa pound would be built on the site of the former Featherston Golf Course, but there is no infrastructure in place, such as water supply, power, or wastewater.
The original $340k budget for a now-unusable site on Johnston St did not include these elements.
A report to South Wairarapa District Council said there was a substantial cost increase as a result.
“Officers have gone to the open market to get the best estimates and tried to utilise local suppliers where possible.
“The major component of build and design of the container kennels went through a formal procurement process where we had three interested parties that expressed interest in this stage; this dropped to two parties when officers went to the request for proposal stage.
“Following a robust process, we settled on a preferred supplier.”
Cost estimates were supplied to the council, but it was noted the quotes were “very time-sensitive and fluid especially given the current circumstances faced by the construction industry and wider inflationary pressures”.
The projected costs are estimated to be $415k, excluding contingency, or $456,500, with a 10 per cent contingency.
The report to the council said increasing the budget by $75k would result in an annual operating expenditure increase of $11,250 for loan interest, loan repayment, and depreciation over 20 years.
An increase of $116,500 would be an annual operating expenditure increase of $17,475 over 20 years.
Two risks were identified in project delivery: supplier delays and further budget overspend.
“This risk is considered low level as the main production is done off-site in Christchurch via the suppliers’ own workshop with secured lines of supply.
“Delays in not providing further funding will result in material costs increasing.”
Councillors are set to meet on Wednesday to make a decision.
– NZLDR
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