Surf Coast Shire Council has adopted a revised 2024-25 budget which will allow the Surf Coast Aquatic and Health Centre project to proceed despite escalated costs.
The only changes from the 2024-25 budget adopted by Council in July relate to borrowing of up to $6 million to cover the increased costs.
Council adopted the revised budget at its August meeting and resolved to award Kane Constructions the contract at a cost of $46,341,054 (ex GST), to complete construction of the centre which will adjoin Wurdi Baierr Stadium.
Council also affirmed an external contractor management model for running of the centre and stadium combined.
"We are excited to have reached this sequence of green lights for this landmark project, which will support community health, wellbeing and water safety education for decades to come," Mayor Liz Pattison said.
"Providing greater access to Learn to Swim opportunities for generations of children will be such an important benefit from this centre.
"We are pleased to have appointed our contractor following an extensive tender evaluation and value management process, and we are confident they have the experience, capability and capacity to deliver the project.
"Following community consultation and consideration of six submissions we have moved ahead with endorsement of the revised budget which will enable us to capitalise on the significant funding commitments totalling $36.68 million from Australian and Victorian governments.
"This government funding can only be used for the Surf Coast Aquatic and Health Centre, so we are seizing what may be our one and only opportunity to deliver a centre for this and future generations."
Kane Constructions has recently worked on Norlane Aquatic Recreation Centre and North Bellarine Aquatic Centre, and has a locally-based project team.
The Surf Coast Aquatic and Health Centre has received $20 million from the Australian Government and $16.68 million from the Victorian Government.
"We thank both the federal and state governments for their valued contributions, and we're grateful that all three levels of government are playing a role in such a significant project," Cr Pattison said.
The centre will include:
- Indoor 25m pool for lap / squad swimming and Learn to Swim
- Indoor warm water pool for Learn to Swim, exercise, hydrotherapy and leisure
- Gym and programs spaces
- Allied health suites
- Café and supporting amenities.
Concept images and more information can be found via surfcoast.vic.gov.au/aquatic.
The revised budget allows for borrowing of up to $6 million but the amount might be less if contributions from other funding sources are secured.
The gap between market costs for construction of the centre and Council's project budget became apparent during the recent tender process and is in line with escalations across the construction sector.
The extra funding required could not be drawn from normal revenue streams, and due to the tender period timing extra borrowing could not be factored into Council's existing 2024-25 budget. Under the Local Government Act borrowings must be approved in a revised budget if not already approved in the adopted budget.
Council has recently undertaken a value management process identifying design changes to help reduce the centre's market cost with minimal impact on its program offering, lifecycle costs or sustainable design credentials.
Council's loans and borrowing ratios will remain within limits set by its borrowings policy and 10-year financial plan.
Cr Pattison said evaluations of several management models, including in-house, pointed to an external contractor as fitting the centre and stadium best.
"Council initially decided on this model in January 2022 and has now affirmed the decision and included an option within the tender to also manage the Winchelsea Pool," Cr Pattison said.
"An external contractor model presents less risk to Council, less use of Council resources and lower costs but still provides a high level of oversight."
Construction of the Aquatic and Health Centre is expected to start later this year and finish in 2026.
