Business Case – Medium complexity V18
Project information
Project name
Auckland Domain - Wintergardens boiler renewal
Sentient ID#
31035
Programme name
PRG Regionwide Parks
Programme Sentient
27050
ID #
Project complexity
rating (PCAT)
Author and date
Nina Quintana
Project budget
$100435.00
requested and funding
source(s)
Estimated start and
31/Jan/2022
finish date
15/Mar/2023
Document control
<Text in grey boxes or <> provides commentary and guidance for drafting purposes only and should
be deleted when no longer required.>
Document history
Version
Date
Updated by
Update details
Strategic case (Case for change)
Introduction
Background
Renewal of the Wintergardens boiler unit
This project has originated via wider budgets Te Tahua Pūtea Tau 2021-
2031 (10-year Budget 2021-2031). General renewal
budgets/development budgets.
The Energy Ef iciency and Sustainability Team within Community
Facilities are currently exploring sustainable and more environmentally
conscious replacement options. This boiler has been included in a wider
project to ascertain and implement replacement options across
Community Facilities assets. It is anticipated that delivery wil begin in the
third quarter of this financial year.
Opportunity/problem
[Give evidence-based facts (where possible) for the problem/opportunity
to demonstrate baseline and impact it would have, i.e. current state, what
problem is to be addressed and what would happen if we were to
continue status quo? Future state what would happen if we progressed
an opportunity to change?
For example, asset assessment report, local board LDI project, etc.]
Objectives
Reduced Council wide GHG emissions and reduce increased utility costs
by phasing out gas use
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Introduction
High level benefits
Maintaining current service levels
Alignment to strategy:
Auckland Plan Outcomes
Our Strategy Goals
Belonging and participation
Deliver within our means
Climate Priorities
Māori Outcomes
No specific priority focus
No specific outcome focus areas
Describe the strategic linkage in more detail here:
The focus is on meeting Auckland Councils climate action plan.
Climate change
Reduce Greenhouse gas emissions
(adaptation and
mitigation):
Māori outcomes and
engagement
Alignment to existing The project is to be competed with the seismic upgrade of the glass hosues
programmes:
Constraints
In planning and delivering the work, there are some general environmental
and/or site-specific constraints that require due considerations.
Some examples are:
- Customers, and usage of the facilities, these wil be closed to visitors for
the duration of the work
- Technology available to replace gas systems
Dependencies
Typical dependencies are:
The program and works being undertaken as part of the seismic upgrade.
Assumptions
- Consents are non-notified and approved
- Stakeholders are supportive
- Programme of works for the project is manageable
Health, safety and
wellbeing
At Auckland Council, we put the health and safety of our people and the
people of Auckland first. We empower everyone working across the
council family to stop work and speak out if they see unsafe work
practices.
As part of the due diligence process, it is important to regularly monitor
and audit the work site(s) using iAuditor, to ensure that all the safety
controls that are discussed and agreed to in meetings or written into
documentations are put in place and checked to operate effectively.
The list below describes specific activities or measures that are key to
achieving the safe working environment for the delivery of this Asset Type.
- Public open spaces are always open to the public and should be treated
with care. Fields are fenced off during works but sometimes it can be
impractical to fence off driveways and vehicle movements onto sites.
- Transportation is a high-risk activity and contractors should provide
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detailed Site-Specific Safety Plan (SSSP) plans showing where and when
vehicles wil access a site
- Plant, excavators, tractors and implements pose additional risk unique to
turf work. Only skil ed operators should be contracted.
- Hand tools (powered and non-powered). Even unpowered hand tools can
cause injury. Use of both should be included in SSSP.
High level risks and
Example Covid 19 has resulted in work stoppages, increased costs, lack of
issues
resources and material shipment delays
Economic case (Determing value for money)
In Scope
Replacement of the gas boiler system with a wood palette burner system
Out of scope
Seismic upgrade has been initiated as a stand alone project and is being completed.
Service change assessment
Service / process description Proposed change & impact
Will this initiative cause a
change to a service or process
Limited to the change in utility supplies
e.g. adding an additional
service, changing or removing
an existing service?
Outline options analysis
Option
Description
<Option 1>
Like for like renewal – is not an option
<Option 2>
System and technology which wil deliver on GHG redcution
<Option 3-5 etc.>
Description (click here for CBA
Option 1: Do
Option 2:
Option 3:
Option 4:
worksheet)
nothing
Appraisal period (years)
Implementation cost ($000)
Whole of life cost ($000) (ongoing
consequential opex, disposal cost, plus
implementation cost)
Cost Benefit analysis:
The benefits are focused around=d the delivery of the Auckland Council climate plan and reduction of GHG.
Financial benefits and costs (excluding depreciation)
Net present value of benefits ($000)
Net present value of costs (whole of life)
($000)
Net present value ($000)
Non-financial benefits
Benefit 1
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Benefit 2
Benefit 3
Preferred option
The introduction of a system which uses a renewable energy source for heating, ie wood pallet
burner
Benefits tables
Benefits and dis-benefits
Category Sub-
Type
Metric
Benefit statement Benefit
Benefit
Source of Baseline
Expecte
category
Description
Measure and data or
d benefit
Method
cost
and
centre/GL
date(s)
code
Non-
Benefits to
Maintaining
Count/Nu
Maintaining current
TOTAL
financial
Communiti
level of
mber
service levels
es
service
AC Strategy
100 tones GHG reduction
Meeting
GHG
100
CO2e
Council
emmsions
tones
objectives
reductions
CO2e
levels
Benefit owner & Role
Benefit Reporter
*Note: If there are additional benefits, add extra rows, with a Benefit owner signature line after each
benefit.
Non-quantifiable Benefits and additional information
Sustainability linked loans require emissions reductions targets to be met
Commercial case (Procurement of preferred option)
Detailing the procurement strategy
Market engagement focusing on suitable suppliers
Liaison with the FFM for future operational matters, wood pallet deliveries and use
Risk Description
Mitigation
Date
Owner
Idenfitied
Example Covid 19 has resulted Covid 19- delay of supplies
18/11/2022 Nina Quintana
in work stoppages, increased
costs, lack of resources and
material shipment delays
Issue Description
Resolution
Resolution Owner
Date
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Financial case (Affordability & funding)
Financial analysis
Please complete the financial
FY 2022
FY 2023
FY 2024
FY 2025
FY 2026-28
Total
analysis spreadsheet and use the
output to complete this table
Capital expenditure
Operating expenditure
Total expenditure
Consequential operating expenditure
Financial benefits (revenue/cost
reduction)
Net ongoing cost
<Please attach the financial analysis spreadsheet as an appendice.>
Financial sources
<Specifically, how is this initiative being funded i.e. is part of it from existing BAU? New or additional funding
request or LTP allocated funds? Is there any other external party funding involved? Are other departments
within council also contributing a portion from their own BAU budget?
>
Contingency
<What contingency is included in the above costs. This is calculated by individual projects and is based on
risk.>
Management case
Change Impact Assessment
For scoring assessment guideline, please refer to
“Change impact assessment matrix” in Kotahi
<If you scored 1 extreme or 2 High or 3 Medium, you’d need to engage a “Change Manager”>
Impact Assessment
Impact
(Low, Moderate, Medium, High, Extreme)
Size of the change
Complexity of the change
People increase/reduction change
People – skil s, training, new ways of working
System change
Process change
Organisation structure change
Culture change
Change management
The <name of programme/project/nitiative> wil follow
Auckland Councils Change Management
Framework.
The change management plan wil need to be completed in the plan phase, if applicable.
Stakeholder engagement
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Key stakeholders
The following stakeholder groups wil be impacted by this change in the following ways:
Stakeholder name / group /
Evidence of collaboration /
Agreed outcome
contact
impact assessment
Limited to no impact since the
facility is undergoing seismic
works
The stakeholder engagement plan wil need to be completed in the plan phase, if applicable.
Outline project plan
Outline project plan
How wil this project be delivered, by who and when?
Deliverable(s)
Delivered by
Date due
Design build
Selected supplier
Health and safety
This project is expected to < include / not include > design or modification of an existing asset, as
such the requirements of Safety in Design wil apply/not apply to this project.
There is legal responsibility on Auckland Council (as the ‘Person Conducting a Business or
Undertaking’) to ensure, so far as is reasonably practicable, the health and safety of workers and
other persons over the life of the asset.
The following health and safety related risks were identified in the option assessment relating to this
project which wil need to be considered for elimination or where not able to be eliminated to be
minimised.
Option Health and Safety Risk
Project Phase
Risk associated with the removal and installation of the new system
Approval and acceptance
Handover activities
The following activities and documents wil be handed over once acceptance criteria have been met:
<Designs, procedures, registers, maintenance manuals, templates, as built materials, post-project
benefits monitoring and realisation activities, post project evaluation etc. (attach any relevant
documentation to appendices)>
Governance sign of Name
Signature to endorse Date
Comment
I agree that the potential costs/benefits identified are realistic, and the low complexity delivery path
reflects PCAT findings and approve and or endorse the project to continue for funding.
Financial Manager /
Commercial
Manager
Project sponsor
Martin Wong
Business owner
Julie Pickering
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Benefit Owner
SME endorsement
If Name
Signature to endorse Date
Comment
applicable
Eg.Change, legal,
financial
transactions,
governance,
communications etc
Advisor/stakeholder Name
Signature to endorse Date
Comment
endorsement
Appendices
Appendices
Appendix A: Project Carbon and Cost performance
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Business Case – Medium complexity
Document Outline
