Final Business Case for a New Aquatic Leisure Centre...The purpose of this Final Business Case is to assist decision makers determine the best option for the development of a new aquatic

Final Business Case for a New Aquatic Leisure Centre

City of Parramatta Council

13 December 2017

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Contents

............ 1

Contents ................................................................................................................................ i Foreword ............................................................................................................................... iii Glossary................................................................................................................................ iv

Executive summary ............................................................................................................... v

1 Introduction .................................................................................................................... 1

1.1 Background............................................................................................................. 1

1.2 Purpose of the Business Case ................................................................................ 4

1.3 Approach to developing the Business Case ............................................................ 6

1.4 Structure of the Business Case ............................................................................... 6

2 The case for change ...................................................................................................... 8

2.1 Overview ................................................................................................................. 8

2.2 Service need ........................................................................................................... 8

2.3 Priority of service need ......................................................................................... 15

2.4 Benefits of the service need .................................................................................. 20

2.5 Stakeholder engagement ...................................................................................... 23

3 Analysis of the proposal ............................................................................................... 31

3.1 Objectives ............................................................................................................. 31

3.2 Approach to developing the project options .......................................................... 34

3.3 Project options ...................................................................................................... 46

3.4 Demand analysis .................................................................................................. 58

3.5 Financial analysis ................................................................................................. 75

3.6 Economic appraisal ............................................................................................... 91

3.7 Preferred Option ................................................................................................. 133

3.8 Risk assessment ................................................................................................. 135

3.9 Technical standards and legislative requirements ............................................... 142

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4 Implementation .......................................................................................................... 150

4.1 Project planning .................................................................................................. 150

4.2 Governance model.............................................................................................. 153

4.3 Procurement method .......................................................................................... 155

4.4 Management ....................................................................................................... 158

4.5 Risk assessment ................................................................................................. 159

4.6 Benefit realisation strategy .................................................................................. 162

4.7 Stakeholder consultation strategy ....................................................................... 162

4.8 Resourcing ......................................................................................................... 164

Appendix A: Aquatic Needs and Trends Report ................................................................ 167

Appendix B: Stakeholder Engagement and Communications Plan.................................... 183

Appendix C: Option 1a Area schedule and design concepts ............................................. 198

Appendix D: Option 1b Area schedule and design concepts ............................................. 205

Appendix E: Option 1c Area schedule and design concepts.............................................. 212

Appendix F: Option 1d Area schedule and design concepts.............................................. 219

Appendix G: Option 2a Area schedule and design concepts ............................................. 226

Appendix H: Option 2b Area schedule and design concepts ............................................. 233

Appendix I: Capital costs ................................................................................................... 240

Appendix J: Life cycle costs .............................................................................................. 251

Appendix K: Agreement with Parramatta Park Trust ......................................................... 257

Appendix L: Project Plan ................................................................................................... 266

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Foreword The City of Parramatta Council (City) is currently planning for the development of a new aquatic leisure centre in place of the Parramatta War Memorial Swimming Centre that was required to make way for the new Western Sydney Stadium development.

This report represents the Final Business Case for the development of a new aquatic leisure centre, and has been prepared consistent with the NSW Treasury Guidelines for Capital Business Cases (TPP 08-5). This Final Business Case provides the rationale and supporting evidence to assist decision makers with the evaluation of the options for the development of a new aquatic leisure centre.

The City has prepared this Final Business Case in close consultation with a number of professional and technical advisers. A brief description of each is provided below.

KPMG is a global professional services firm, with a breadth of experience and expertise in the advising on, and developing business cases for, major and

complex capital projects for public, private and not-for-profit clients.

Warren Green Consulting

Warren Green is a specialist sport and leisure consultant with a focus on assisting organisations in achieving their sport and leisure objectives, and supporting

sporting projects from feasibility, planning, funding procurement, project management, establishment, business planning, and operations.

Sissons Architects is an architecture and planning firm based in Sydney with expertise across cultural, master planning, offices, public, residential and retail

buildings.

Turner and Townsend is world-leading professional services company specialising in programme management, project management, cost management, and

consulting across the property, infrastructure and natural resources sectors.

Dawson James Pty Ltd is an independent consultancy that provides strategic advice and executive management services for private and public sector

organisations. It consistently achieves outstanding results that maximise economic outcomes.

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Glossary

Term Definition

ABS Australian Bureau of Statistics

BCR Benefit Cost Ratio

BNSW Basketball NSW

CBA Cost benefit analysis

CBD Central Business District

CEO Chief Executive Officer

CERM Centre for Environmental and Recreational Management

DCMS The Department for Culture, Media and Sports

EIRR Economic Internal Rate of Return

INSW Infrastructure New South Wales

LCC Life cycle costs

LGA Local Government Area

LSE London School of Economics

MAAS Museum of Applied Arts and Sciences

NPV Net present value

NSW New South Wales

PPT Parramatta Park Trust

PWMSC Parramatta War Memorial Swimming Centre

The City City of Parramatta Council

The Guidelines NSW Treasury Guidelines

The Strategy Rebuilding the Major Stadia Network Strategy

TPP 08-5 NSW Treasury Guidelines for Capital Business Case

TPP 17-03 NSW Government Guide to Cost-Benefit Analysis

SOPAC Sydney Olympic Park Aquatic Centre

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Executive summary

Introduction

Background In September 2015, the New South Wales (‘NSW’) Government announced the Rebuilding the Major Stadia Network Strategy (‘the Strategy’) and committed to investing over $1 billion in the existing stadia network over the next decade to drive growth in the visitor economy, realise the economic and social benefits of strong cultural and sporting sector, and support liveability for the people of NSW.

As part of the Strategy, Parramatta Stadium will be replaced by a new state of the art rectangular sporting stadium that will accommodate an additional 10,000 spectators. The larger footprint required to expand the seating capacity of Parramatta Stadium has resulted in the closure of the adjacent Parramatta War Memorial Swimming Centre (‘PWMSC’), which was owned and operated by the City of Parramatta (‘the City’) on land leased from Parramatta Park Trust and had been the largest and most popular aquatic facility in the municipality for the past 50 years.1

The City has enacted a number of temporary measures to provide the local community with a moderate level of access to aquatic facilities in the near term. This has included the refurbishment of the pool at Macarthur Girls High School, and the leasing of the facility from the school to make it available for public access including learn to swim programs from February 2018.

Subsequently, the City, the NSW Government, and Parramatta Park Trust have collaborated to identify a site for the new aquatic leisure centre through the completion of the Mays Hill Precinct Master Plan. The Master Plan, which was informed by a number of studies and community consultation, identified the preferred location to be adjacent to Park Parade and near the corner of Pitt Street, on the eastern portion of the former golf course.

“A feasibility study will now be conducted to confirm the suitability of the former Golf Course site and a master plan will be developed to explore opportunities for the area to be upgraded and repurposed for public use,”

“Subject to the finalisation of funding arrangements, the City of Parramatta Council will be responsible for delivering the new aquatic centre.”2

NSW Office of Sport, Ministerial media release: Site identified for new Aquatic Centre in Parramatta, June 2016.

During 2016 and 2017, the City has completed a number of studies to determine its aquatic needs, as well as to explore the feasibility of a new aquatic leisure centre, including:

• Analysis of Recreational and Aquatic Needs and Industry Trends (February 2017);

• Site Suitability Study – Mays Hill Precinct (January 2017); and

• An Aquatic Leisure Centre for Parramatta Feasibility Study (June 2017).

As illustrated in Figure 1, the proposed location for the new aquatic leisure centre in Parramatta is suitable due to its viability from a service delivery and operational perspective, given the close proximity to the Parramatta Central Business District (CBD), public transport, and other service infrastructure, as well as the distance from other local outdoor swimming pools and aquatic leisure centres.

Parramatta is undergoing rapid transformation into Sydney’s Central City, noted for significant high density living and highly diverse population, employment and study opportunities, services and infrastructure.

1 The bigger footprint is also needed as a result of modern security requirements that mean more circulation zones around the stadium and due to the need for improved pedestrian and vehicle access along O’Connell Street and from neighbouring areas. 2 Office of Sport, Ministerial media release: Site identified for new Aquatic Centre in Parramatta, June 2016.

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Providing accessible and high quality recreational facilities is necessary to support the city-vision as an attractive and highly liveable place for people to live, study and work in.

Figure 1: Location of the new aquatic leisure centre

Source: City of Parramatta Council.

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Purpose of the Business Case Following the official closure of the PWMSC on 31 March 2017, the NSW Government committed to contributing $30 million to the City to build a replacement facility. This would be contingent on a number of conditions, including the City contributing at least $10 million to the Project, the development of a formal business case, and ensuring that the new aquatic leisure centre will deliver a net community benefit to the State.3 This document represents the Final Business Case for the new aquatic leisure centre to be located within the Mays Hill Precinct and the culmination of a series of planning and feasibility studies conducted over the course of mid 2016-2017.

The purpose of this Final Business Case is to assist decision makers determine the best option for the development of a new aquatic leisure centre given the impacts on the City, the wider community network-wide impacts, and the social, economic and financial costs and benefits to the NSW community as a whole. The City has taken a comprehensive view in the project rationale and the analysis of the potential redevelopment options, has developed this Business Case in a manner consistent with the NSW Treasury Guidelines (‘the Guidelines’).

Approach to developing the Business Case To support the development of the Final Business Case, the City sought professional advice from a number of technical advisors, and commissioned a series of targeted studies. The studies were leveraged and formed the basis of a series of more targeted work packages to underpin this Business Case. The reports generated through these work packages have been used to support the development of the options and the analysis within the Final Business Case, and are detailed in full within the appendices.

Table 1: Work packages underpinning the Final Business Case

Work package Description

Concept design

Lead: Sissons Architects

The purpose of the Final Business Case is to inform a decision by the NSW Government around the preferred option for the development of the new aquatic leisure centre in Mays Hill Precinct. Accordingly, a key aspect of the Final Business Case development has involved an extensive package of work to develop concept designs and assess the total area schedule required for each of the options.

Capital cost modelling

Lead: Turner and Townsend

The purpose of the capital model development is to estimate all capital expenditure requirements associated with the development of new aquatic leisure centre for each of the options considered within the Final Business Case. The capital model, developed by Turner and Townsend, has considered the following elements:

• new facility costs;

• direct equipment costs associated with the facility and content;

• any capitalised temporary operating costs including and start-up costs; and

• lifecycle maintenance costs.

Cash flow modelling

Lead: Warren Green Consulting

A core requirement of the Final Business Case development has been to identify, understand, and test the various drivers impacting the development and ongoing operation of the new aquatic leisure centre. The purpose of the operating, capital and transition model developed by Warren Green Consulting has been to draw together a breadth of research, evidence, and technical advice from the planning work undertaken to-date to model the potential operational impacts of each of the options under consideration, including the level of potential demand and visitation.

Economic and financial analysis

Lead: KPMG

The Final Business Case considers the costs and benefits associated with each option against the Base Case, through a comprehensive economic and financial analysis. This is also supported by an extensive domestic and global evidence base of quantitative and qualitative analysis, and an

3 As demonstrated by a formal cost-benefit analysis.

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economic appraisal of the benefits of the options for the Parramatta and NSW community more broadly.

Implementation planning

Lead: Dawson James

The purpose of the implementation planning is to identify the timing, strategies and staging works associated with all aspects of the development of new aquatic leisure centre.

The detailed timeline and logistical plan, developed by the City is a key input to the Business Case development and will also be used on an ongoing basis in later stages of the feasibility work and project realisation, providing key stakeholders with greater clarity around each element of the transition and informing considerations around planning, resourcing requirements, risk management, and stakeholder engagement.

Case for change Service need The need for investment in a new aquatic leisure facility in Parramatta is driven by three (3) primary drivers, namely:

• the closure of the PWMSC to enable the redevelopment of the Western Sydney Stadium;

• the socio-demographic drivers in the community and need to respond by provision of appropriate social and recreational infrastructure; and

• the need to support the continuing transformation of Parramatta as Sydney’s central city.

Closure of the PWMSC The development of the Western Sydney Stadium – a new state of the art rectangular sporting stadium accommodating an additional 10,000 spectators compared to the existing Parramatta Stadium – resulted in the closure of the adjacent PWMSC.

Over the last 50 years, the PWMSC was owned and operated by the City, and was the largest and most popular aquatic facility in the municipality. It provided:

• 10 lane 50m heated outdoor pool;

• Open grand stand seating for 400 people (with shade);

• 25 x 30m unheated outdoor utility pool (for competition water polo and diving) + Olympic Dive Tower with 1, 5, 7 and 10m platforms plus 1 and 3m boards;

• 25m heated outdoor program pool - covered by permanent shade structure;

• Toddler pool (outdoor) with beach entry – covered by permanent shade structure;

• Twin water slides (60+ m) in bushland setting;

• Program (multipurpose) room with audio visual equipment;

• Swim Club/Water Polo Club clubroom;

• Refurbished traditional change rooms and public amenities;

• Kiosk and Reception Foyer;

• Extensive/expansive outdoor space, much of it grassed/landscaped with BBQ facilities and shade structures; and

• Access to 140 car park spaces (part of leased land) and a further 120 additional paid car spaces in PPT car park– used as overflow to meet weekend peak summer demand.

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Before its official closure on 31 March 2017, the PWMSC attracted over 160,000 visitations per annum and generated annual revenue of close to $1.3 million over the last four years. This level of attendance and revenue is relatively high when benchmarked to other outdoor aquatic leisure centres across NSW, which suggests that there is a high level of underlying demand for aquatic leisure facilities. Further benchmarking of aquatic leisure facilities (Table 2) provides insight into the relationship between different facility types and attendances and the potential future attendances at a new aquatic leisure facility in Parramatta.4

Table 2: Benchmarking the attendance at the PWMSC

Centre Type Annual visitations (number)

Estimated revenue ($ million)

PWMSC (NSW) Outdoor 160,000 $1.4

Hawthorn (Vic) Indoor/Outdoor 625,000 $5.6

Gunyama Park (NSW) Indoor/Outdoor 700,000 $6.5

GESAC (Vic) Indoor/Outdoor/Courts 1,100,000 $11.0

Cockburn ARC (WA) Indoor/Outdoor/Courts 800,000 $7.5

Average of sample 531,429 $3.5

Source: Parramatta City Council, An Aquatic Leisure Centre for Parramatta Feasibility Study – September 2017

PWMSC user groups – ranging from lap swimmers, swim school participants, school carnivals, club and sporting groups (swim and water polo) and other community groups – represent the high level of community visitations. PWMSC also provided district and regional benefits, being available for diving, regional water polo competitions and training facilities for NSW Institute of Sport and other squads. The closure of the PWMSC therefore has a direct impact on the social and physical wellbeing of a significant number of people within the community in Parramatta and its surrounds. In the absence of the PWMSC to service these users, alternate options are limited. The majority of local swimming pools and aquatic leisure centres fall outside of a three kilometre radius – or outside the Parramatta CBD and surrounding areas (see Table 2-2 in Section 2) and have limited service provision (older outdoor pools).

Socio-demographic drivers in the community and the need to respond by provision of appropriate facilities

While the proposed redevelopment to create a new Western Sydney Stadium means the loss of the PWMSC, it also provides a timely opportunity to consider the changing socio-demographic characteristics of Parramatta and the adequacy of current provision of aquatic leisure facilities. Over the past 14 years, Parramatta has experienced significant residential population growth (2.2 per cent per annum) compared to NSW more broadly (1.1 per cent per annum), as illustrated in Figure 2 below.

4 Parramatta City Council, An Aquatic Leisure Centre for Parramatta Feasibility Study – September 2017

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Figure 2: Historical population growth for Parramatta and NSW

Source: Australian Bureau of Statistics (ABS), Census of Population and Housing 2006, 2011 and 2016.

Population growth has been underpinned by urban consolidation (medium and high density housing) in existing residential areas, and the redevelopment of former industrial areas in the south-eastern suburbs of Parramatta. This has also helped to attract a high proportion of young adults to Parramatta from surrounding municipalities due to the high levels of accessibility to employment, education, transport, cultural activities, retail, and entertainment.

Between 2016 and 2036, population projections for Parramatta also indicate high levels of growth (2.9% per annum) compared to that for Metropolitan Sydney and NSW (1.4% and 1.6% per annum respectively). Figure 3 below shows the projected population growth (in compound annual growth rates) being highest in the cohorts between 0 and 19 years, 50 and 64 and 64 and over years. Given that school-aged children and older were very well-represented among the users of the PWMSC, there is a strong – and growing – level of community need for a new aquatic leisure centre in Parramatta.

Figure 3: Population projections for Parramatta by age cohort

Source: Department of Planning 2016, Local Government Area Population Projections

Further, strong population growth across Parramatta over recent years has led to relatively low levels of aquatic leisure centre provision on a per capita basis compared to other NSW LGAs. Figure 4 below illustrates the differences between the councils, and shows that the lowest level of provision at the time was in Parramatta.

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Figure 4: Aquatic leisure centre provision across selected NSW councils


Note: Based on the council boundaries defined prior to recent amalgamations.

The low level of provision of aquatic leisure facilities in Parramatta has contributed to community participation levels (i.e. visits to aquatic leisure facilities) that are below the average of other councils across NSW. For example, the average 2014/15 level of aquatic leisure participation for the Councils reviewed was 2.1 visits to an aquatic leisure centre per head of the population, compared to a participation rate of 1.5 visits to an aquatic leisure centre per head of the population within the City. This was the lowest level of participation of the Councils reviewed (Figure 5). The closure of the PWMSC has resulted in the current level of provision in Parramatta falling further behind the rest of the NSW.

Figure 5: Aquatic leisure centre attendance across selected NSW councils



Healthy high density living will be a key driver of need for accessible recreational services for people to meet their daily physical exercise and other health and wellbeing requirements. Limited access and/or poor quality of facilities, especially in the context of public open space and recreational facilities substituting as resident’s backyards, plays a role in a community’s overall health and wellbeing performance Across most measures,

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Parramatta already experiences higher levels of poor health and wellbeing than others in Western Sydney and definitely so when compared to Greater Sydney and national averages. The information below provides examples of the current situation.

• Parramatta has a higher level of overweight people, 51.5 per cent when compared to Greater Sydney with 38.2 per cent,

• Only 48.4 per cent of Parramatta residents undertake the recommended level of physical activity, which is lower than the Greater Sydney level of 65.7 per cent.5

The provision of high quality and accessible recreation offerings will be a key strategy in addressing existing levels of health and wellbeing, in addition to meeting future projected needs. A healthier and well community will drive greater productivity and other economic and social benefits.

The continuing transformation of Parramatta

Parramatta is experiencing significant change as it transforms into Sydney’s Central City and as a key focus for economic and cultural outcomes for Western Sydney. A key driver of Parramatta’s transformation has been the significant infrastructure investment planned for Parramatta, to be delivered over the next five years, including public investment in economic and social infrastructure (e.g. WestConnex and Parramatta Light Rail), and private investment in commercial and residential buildings. In particular, the City and the NSW Government have signed an agreement for Council’s Riverbank site and to create a new cultural precinct on the Parramatta River. The precinct will include the Museum of Applied Arts and Sciences (MAAS), an enlarged and enhanced Riverside Theatres and a new pedestrian bridge across the River.

The City of Parramatta is expected to increase in population between 2016 and 2036 by 58% from 403,272 in 2016 to 637,339 in 2036, with the addition of a substantial transient population of workers and students coming into Parramatta each day (Figure 6).

Given that these population segments represent growing markets for recreation, leisure and fitness facilities in Parramatta, there is likely to be strong and growing need for targeted investments in sporting, recreational and social infrastructure – including the development of a new aquatic leisure centre.

Figure 6: Projected growth in people living in and commuting to Greater Parramatta

2016 2036 Change

Population 236,272 397,339 68%

Office workers 150,000 200,000 33%

Tertiary students 17,000 40,000 135%


The strong population growth expected across Parramatta is consistent with the population growth expected within three and five kilometre catchments of the Mays Hill Precinct. From 2016 to 2036, the three kilometre catchment population is projected to increase by 65 per cent from 119,190 residents to 197,128 residents.

The City is focused on providing services and facilities that support the liveability of a great and vibrant city and respond to the diversity of ages, backgrounds, and ethnicities of the region. The projected growth in residents, workers and students will rely upon increased density in commercial and residential development, high levels

5 Information obtained from Forecast ID

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of transport connectivity and the rollout of planned social infrastructure including sporting and leisure facilities.

Priority of service need

In planning for and building a polycentric city, the NSW Government has identified and committed to the development of Parramatta as Sydney’s second CBD. It is the strategic centre, and geographical, economic and population epicentre of Western Sydney region. To support and enable this development, Parramatta has been the focus of a significant extent of the Federal, State and Local Governments’ strategic planning and infrastructure investment.

Importantly, the Parramatta City Council and the NSW Government’s strategic priorities have recognised the critical role that sports and cultural infrastructure and participation will play in the development of the Western Sydney region – in underpinning urban development and renewal, competitiveness, and promoting better quality of life, education, and innovation outcomes.

Council’s Infrastructure Needs Analysis identifies, amongst almost $1 billion in infrastructure requirements, 12 high priority recreation and leisure projects, of which the new aquatic leisure centre is the highest priority. This priority reflects the strategic intersections of the development of the new aquatic leisure centre with the various federal, state and local strategic policies and priorities, summarised in the table below:

Table 3: Alignment with key strategies and policies

Government Strategies and priorities


• The Draft City of Parramatta Social Infrastructure Strategy

• The City of Parramatta Economic Development Plan 2017-2021

• The City of Parramatta Community Strategic Plan – Parramatta 2038

NSW State Government

• NSW Healthy Eating and Active Living Strategy 2013-2018

• NSW Premier’s Priority – Delivering Infrastructure; Tackling Childhood Obesity

• NSW Office of Sport Strategic Priorities 2016-2020

• Draft Central City District Plan

• NSW Department of Planning and Environment A Plan for Growing Sydney

• The Swimming NSW Strategic Plan

Federal Government

• The National Sport and Active Recreation Policy Framework

• The Preventative Health Taskforce National Preventative Health Strategy

• Australian Sports Commission Play.Sport.Australia

Source: City of Parramatta Council, NSW State Government, and Federal Government.

Benefits of service need

The provision of the new aquatic leisure centre at the Mays Hill Precinct is expected to drive a diverse range of interrelated economic, social, and environmental benefits that will accrue to users as well as the community more broadly. The academic literature provides compelling evidence that sport and recreational activities are associated with a diverse range of health and social benefits for participants,6 including:

6 Research undertaken by RPS Australia (2017)

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• improved physical health;

• improved social inclusion;

• reduced crime and anti-social behaviour;

• improved education and work participation; and

• improved early child development.

Recent research conducted by Victoria University, in a Victorian context, regarding the economic and social benefits of aquatic and recreation centres suggest that the benefits associated with sports and recreation (more broadly defined) will apply to the swimming and fitness activities that the new aquatic leisure centre will promote.7 Broader community benefits to Parramatta and NSW also include:

• stimulating the local economy by providing employment opportunities during the construction and operational phases;

• underpinning economic development by providing vital social infrastructure that will address a community need for aquatic leisure services and in turn support projected population and economic growth; and

• lowering public health costs by offering access to a comprehensive range of aquatic leisure services and lifting participation rates in sports and recreation in the community.

Stakeholder engagement

There are a number of stakeholders associated with the development of the new aquatic leisure centre including key user groups, highly interested interest groups, state sporting organisations, government bodies and the broader community of Parramatta and surrounds.

Through 2017, the City has engaged stakeholders and the broader community to inform planning for the new aquatic leisure centre. Those key actions have included:

• working with Parramatta Park trust under the auspices of the 2016 MoU to develop feasibility options and a master plan for the Mays Hill Precinct, to identify a preferred location and design principles for the new aquatic leisure centre for its continued design and development. The Trust completed extensive consultation with the community on the master plan, including on preferred location for the new aquatic leisure centre;

• a comprehensive initial community and stakeholder consultation program to inform priorities for facilities to be included in the new centre, including:

o surveying of community representative segments and users of the previous aquatic leisure centre, including on-line survey, focus groups, intercept surveys, phone survey, and targeted activities with youth and non-English speaking background (NESB) groups;

o Stakeholder briefings with key user groups (including Parramatta Memorial Swimming Club and Parramatta Water Polo Club), schools, NSW Department of Education, Catholic Education Parramatta Diocese, and state sporting agencies (including Swimming NSW, Water Polo NSW, NSW Institute of Sport and Basketball NSW); and

o Stakeholder workshop with a selection of former customers, interested community members, local members, representatives of key user groups and highly interested community organisations

• Informing the community and affected user groups and customers of alternative and interim swimming arrangements and of the progress of planning and delivering the new aquatic leisure centre through website content, social media, letter box drops, regular e-newsletters to subscribed distribution list, communications through other council and local media channels.

7 Victoria University, Community Benefits of Victorian Aquatic and Recreation Centre, April 2014.

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In the development of this Final Business Case, the City implemented a detailed stakeholder engagement strategy for the broader Project and prepared the Stakeholder Engagement and Communications Plan - November 2017.

In November 2017, further consultation was initiated in accordance with the strategy to test facilities being considered in the business case concept designs were aligned with initial consultation results and priorities should more or less funding be available.

The findings from the consultations underpin the projections of future demand levels and informed the design concepts for the six options considered. In particular, the consultation confirmed that the concept of a contemporary facility would be broadly welcomed and that the community believes it needs recreation offerings that support the current and future Parramatta, one they see as a growing, modern, and significant place. Subsequent to confirmation of funding and project program, Council will in 2018 continue to consult stakeholders and the community on the centre’s design and future services and business plan for the new centre through consultation and notices related to planning approvals and updates on the progress of the project.

Analysis of the proposal

Guiding principles

As part of the consultation informing the 2017 Feasibility Study, key stakeholders highlighted the following Guiding Principles:

• Maximise Accessibility and Inclusiveness: to ensure that the Centre is easy to access and from a design perspective incorporates contemporary universal design elements to meet stakeholder needs.

• Diversity and a Wide Range of Services: to develop a Centre that provides a mix of programs and services that cater for the diverse needs of the Parramatta community.

• Focus on Servicing the Local Catchment: the primary target market for the Centre is the local catchment which is projected to be in excess of 388,760 residents within a 5km radius by 2036.

• Aim to Achieve Very High Levels of Usage: to maximise community benefit, the design should facilitate a very high level of participation in leisure, recreational and sporting activities.

• Ensure Capacity for Future Growth: given the significant projected catchment population, which is one of the highest in the country, the Centre should be designed to accommodate future demand for leisure services.

• Deliver as a Priority in the Shortest Possible Time: to ensure that the project is delivered in an efficient and effective manner with the objective of providing community services as soon as practicable.

• User Affordability: to provide a range of pricing options that accommodate the diverse needs of the Parramatta community and in so doing provide excellent value for money.

• Financial Sustainability: to maximise the financial performance of the Centre from an operational perspective and reduce the overall Council subsidy per visit.

• Provision of Existing Services: to deliver a range of experiences building on those provided at the old Parramatta War Memorial Swimming Centre.

• Mays Hill Precinct Integration, noting the Design Principles of the Parramatta Park Trust and its Mays Hill Master Plan Report.

Objectives

Developing from the consultations and the 2017 Feasibility Study, a range of objectives for the new aquatic leisure centre were established to help inform the design concept and implementation plan as well as enable the monitoring and measurement of the performance of the facility. These objectives were informed by the established service need, expected benefits associated with aquatic leisure facilities, and the stakeholder consultation (Figure 7).

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Figure 7: Key objectives of the new aquatic leisure centre


Approach to developing the options

The financial appraisal and cost benefit analysis of the new aquatic leisure centre that are required by Treasury guidelines to be completed as part of this Final Business Case need to:

…compare the state of the world with the proposed project, program or policy against the state of the world without the proposal.8

This requirement necessitates that a:

• base case is established, that clearly articulates how the council will provide aquatic leisure facilities in the absence of the investment, and

• series of project options are developed that specify the potential design concepts of the new aquatic leisure centre and any further assumptions regarding the need for enabling infrastructure such as street or pathway upgrades.

A structured approach to developing options was adopted that focussed on ensuring options would meet the objectives highlighted above, address the service need and were consistent with a series of design principles, namely:

• universal design principles developed to provide a framework for architects and designers to ensure that buildings and structures are usable by all people, to the greatest extent possible, without the need for adaptation or specialized design.

• design principles developed through community consultation that related to what key facility components and services should be prioritised within the new aquatic leisure centre.

• design principles developed through understanding of industry best practice and operational sustainability to ensure a mix of facility components and design layout which provides the optimal mix of operational and facility performance, together with meeting industry best practice in Design Excellence and Ecologically Sustainable Design.

• design principles developed through consultation with Parramatta Park Trust that related to how the aquatic leisure centre should be integrated within the Mays Hill Precinct given its open space and heritage values, including protected views from identified vantage points.

All of the options considered meet some or all of the design principles outlined above.

8 NSW Treasury, NSW Government Guide to Cost Benefit Analysis, 2017

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Base case

Under the base case, the project site is assumed to remain a ‘passive park’ over the next 30 years, with the open space within the broader Mays Hill Precinct remaining available for public use.

The City has refurbished the currently unheated 25 metre outdoor pool at Macarthur Girls High School and intends to lease the facility from the school and provide controlled entry for learn to swim programs and a limited form of lap swimming in the mornings from February 2018. Casual access to the public is not available under the terms agreed with the school.

Under the base case, it is assumed that this provision is continued indefinitely to provide the community with access to an aquatic facility, which will be associated with:

• a leasing fee of $30 000 per annum paid to the Macarthur Girls High School;

• 20 000 visits per annum by participants attending learn to swim program; and

• 5 000 visits per annum for lap swimming.

Project options

Project options have been developed to align with the community and operational needs, as well as consideration of potential and available funding.

Two (2) main options were developed that seek to address the service need, meet the stated objectives and ensure consistency with relevant design and guiding principles:

Option One: A contemporary aquatic leisure centre with indoor and outdoor aquatic components for year round use and a fitness centre. Its key components include:

• Three heated pools (two indoor and one outdoor):

• Ten lane outdoor 50m multipurpose pool with pool side seating to accommodate competition, lap swimming, school carnivals, leisure swimming; youth-based inflatable play and local level water polo training and competition

• A dedicated indoor Learn to Swim pool with adjacent all-abilities water play zone

• An indoor 25m pool for comfortable all-year round swimming, programming such as aqua aerobics and rehabilitation, and additional learn to swim program capacity

• Access ramps for the 50m and 25m pools

• A club room for swimming and water polo clubs

• Outdoor areas for relaxing and viewing aquatic activities

• Modern change rooms and amenities that are family friendly

• A fitness centre (gymnasium, cardio room and programming rooms)

• A café; and

• Approximately 212 car parks

Option Two: An expanded version of option 1, Option Two offers additional facilities and capacity that improve function, flexibility and performance of the new centre and retain well-utilised offerings that were found in the former PWMSC.

• An outdoor leisure/family pool which compliments the multipurpose outdoor 50m pool providing additional capacity for families and young people, especially when the deeper water pool is programmed for water polo, swimming competition and other activities;

• expanded outdoor seating/viewing areas with grassed areas to accommodate larger school carnivals and provide a more “pool in a park” experience;

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• larger fitness centre and wellness offerings such as spa/sauna to offer a more diverse and comprehensive offering, supporting targeted programs aimed at increasing female and multicultural participation (where participation is low), active aging participation (where facilities and services provision is inadequate), and those with chronic health related illnesses (which are served best by specific programming capacity); and

• community meeting/programming room that provides complementary dry space for community programs and events such as council’s Senior Leisure Learning program, aquatic users, a space for local clubs to hold a meeting and community group’s to use for activities which there is a lack of options within Parramatta CBD

Two car parking alternatives were specified for each option, namely (i) an at grade car park with capacity for 212 cars; and an underground car park with capacity for 217 cars. In addition, one further alternative was specified for Option One – the enhancement of the roof structure (designed as a typical steel structure) to include a timber roof structure to cover the indoor aquatic facilities. Accordingly, six potential options are considered based on the combination of facilities, car parking, and the structure of the roof as summarised in (Table 4).

The construction period for all the project options considered has been estimated to cover a 20 month period between November 2018 to June 2020.

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Table 4: Facilities provided across the six project options

Area of facilities (square metres) Option 1A Option 1B Option 1C Option 1D Option 2A Option 2B

Fitness centre 1 315 1 315 1 315 1 315 1 880 1 880

25 metre indoor pool 625 625 625 625 625 625

Indoor leisure pool + water play area 625 625 625 625 625 625

Sauna - - 70 70

Spa - - 20 20

Indoor change rooms 555 555 555 555 555 555

Café 150 150 150 150 120 120

Program / meeting room - - - - 120 120

Outdoor leisure pool - - - - 440 440

Swim club room 120 120 120 120 150 150

50m outdoor pool 1 320 1 320 1 320 1 320 1 320 1 320

Outdoor change rooms 350 350 350 350 350 350

Terraced seating 100 100 100 100 100 100

Store 240 240 240 240 240 240

BBQ area 300 300 300 300 300 300

At grade car park (no. of car parks) 212 - 212 - 212 -

Underground car park (no. of car parks) - 217 - 217 - 217

Timber roof structure x x x x

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The design concepts for each of the options are summarised in Figure 8.

Figure 8: Design concepts of the six project options

Option 1a

Option 1A provides a contemporary aquatic leisure centre with indoor and outdoor aquatic components for year round use and a fitness centre as outlined on page xvii – with at-grade car park.

Option 1b

The aquatic and fitness facilities provided under Option 1B are the same as those included Option 1A. The difference between the two options is that the latter provides an underground car park.

Option 1c

Option 1C is identical to Option 1A with the exception of the material that is used to construct the roof to cover the indoor aquatic facilities. The roof structure for Option 1C is made out of timber.

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Option 1d

Option 1D is identical to Option 1B with the exception of the material that is used to construct the roof to cover the indoor aquatic facilities. The roof structure for Option 1D is made out of timber.

Option 2a

Option 2A expands on the offering within Options 1A-D, providing expanded and additional aquatic, leisure and wellness offerings as outlined on page xvii-xviii. Car parking is provided at grade.

Option 2b

The aquatic and fitness facilities provided in Option 2B are exactly the same as those included Option 2A. The main difference between the two options is that the latter provides an underground car park.

Demand analysis

Central to evaluating the financial feasibility and net economic benefit generated by the six options under review is a comprehensive understanding of the nature and extent of demand for a new aquatic leisure centre located within the Mays Hill Precinct. Analysis was undertaken on the following:

• expected programming at the new aquatic leisure centre (e.g. personal training, casual fitness, casual / leisure swim and learn to swim programs);

• user of the new aquatic leisure centre (e.g. population segments, nature of potential users, geographic catchment);

• benchmarks of local leisure participation levels; and

• benchmarks of attendance and capacity levels at the PWMSC and other aquatic leisure facilities nationally.

The key findings of the analysis included that:

• there is expected to be strong demand for the facilities provided by the new aquatic leisure centre reflecting:

– the current low level of service provision in the local area;

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– the large and growing residential population (regional scale) located within a local 3km geographic catchment of the facility;

– a significant learn to swim market in Western Sydney; and

– significant demand for aquatic leisure experiences and cooling off given Western Sydney summers and lack of beach and other options;

• benchmarking annual attendance levels with other established facilities across the State suggests that the level of demand could be between 800,000 and 1.1 million annual visits within the first five years of operation; and

• attendance at the new aquatic leisure centre is, however, expected to be limited by the size of the car park and the aquatic leisure facilities.

For the purposes of the demand analysis, it has been assumed that Option 1 has a capacity of 795,000 annual visits per annum across the diverse range of facilities, while Option 2 has a larger capacity of 920,193 annual visits per annum reflecting the large scope of services provided.

On the basis of this assumption, and the strong demand projected, the two project options are expected to reach capacity after the third year of operation (Figure 9 and Figure 10).

Figure 9: Projected attendance levels - Option 1: Indoor and outdor facilities

Source: Warren Green Consulting.

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Figure 10: Projected attendance levels - Option 2: Indoor and additional outdoor facilities

Source: Warren Green Consulting.

Financial analysis

A summary of the ten year financial and attendance projections for each option is summarised in the table below in the form of average ten year performance with a comparison to the PWMSC 2015/16 performance.

Table 5: Summary financial and attendance data

Item Option 1A Option 1B Option 1C Option 1D Option 2A Option 2B PWMSC (2015/16)

Financial Projections

Income $6,231,084 $6,231,084 $6,231,084 $6,231,084 $7,428,236 $7,428,236 $1,328,107 Expenditure $6,960,666 $7,017,666 $6,996,766 $7,053,766 $7,487,951 $7,545,901 $2,045,704 Surplus/Deficit ($729,582) ($786,582) ($765,682) ($822,682) ($59,715) ($117,665) ($717,597)

Visits Aquatics 609,382 609,382 609,382 609,382 641,288 641,288 139,134

Health Club 170,820 170,820 170,820 170,820 262,756 262,756 0 Total 780,202 780,202 780,202 780,202 904,044 904,044 139,134

Performance Indicators

Subsidy / Surplus per Visit ($0.94) ($1.02) ($0.99) ($1.06) ($0.07) ($0.14) ($5.16) Visits per Head of Population (3km) 5.3 5.3 5.3 5.3 6.1 6.1 0.5

Average Membership Base 1,880 1,880 1,880 1,880 2,920 2,920 NA Average Learn to Swim Base 3,400 3,400 3,400 3,400 3,400 3,400 1,200

Revenue per Visit $7.99 $7.99 $7.99 $7.99 $8.22 $8.22 $9.54

Full Time Equivalent 59.4 59.4 59.4 59.4 63.5 63.5 29.0 Total Wages $4,791,566 $4,791,566 $4,791,566 $4,791,566 $5,111,345 $5,111,345 $1,119,126 Staffing Expense to Total Income 77% 77% 77% 77% 69% 69% 85%

Note: The figures shown in Table 5 are provided by Warren Green Consulting and are presented in real terms exc. GST. These financial projections were adjusted to conduct the financial appraisal in Section 3.5 consistent with parameters specified by the NSW Treasury Financial Appraisal Guidelines.

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The financial impact of each option is outlined in Table 6 and annual operating impact over the first ten years of operation is illustrated in the chart below.

Under Option 1a, the indoor and outdoor facilities and services provided results in the aquatic leisure centre operating at a financial loss over a 30 year time horizon of $61.7 million in present value terms. This reflects the fact that the facility does not generate any annual operating profits over its useful life to offset the capital cost, due in part to the assumptions that the new aquatic leisure centre provides subsidies for a range of swimming and aquatic services and free visitor parking. Under Option 1b, the capital costs and the annual operating costs are slightly higher due to the presence of an underground car park, with the financial loss over a 30 year time horizon of $68.8 million in net present value terms.

Under Option 1c, the addition of a timber roof structure to the indoor and outdoor facilities and services provided results in the aquatic leisure centre operating at a financial loss over a 30 year time horizon of $66.3 million in present value terms. This reflects the fact that the facility does not generate any annual operating profits over its useful life to offset the capital cost, due in part to the assumptions that the new aquatic leisure centre provides subsidies for a range of swimming and aquatic services and free visitor parking. Under Option 1d, the capital costs and the annual operating costs are slightly higher due to the presence of an underground car park, with the financial loss over a 30 year time horizon of $73.3 million in net present value terms.

Under Option 2a, the broader scope of facilities and services provided results in the aquatic leisure centre operating at a modest annual operating profit. The scale of the operating profit is however not sufficient to offset the capital costs. Over a 30 year period, Option 2a generates a financial loss of close to $62 million in net present value terms. Under Option 2b, the capital costs and the annual operating costs are slightly higher due to the presence of an underground car park, with the financial loss over a 30 year time horizon of $69.2 million in net present value terms.

The financial impact of the six options is summarised over the assessment period below (Table 5):

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Table 6: Financial impact (PV 2018 @ 9.5 per cent)

Base Case Option 1a Option 1b Option 1c Option 1d Option 2a Option 2b

Capital costs ($m PV 2018) - 54.7 61.0 58.5 64.8 63.3 69.7

Life cycle maintenance costs ($m PV 2018) - 2.8 2.9 3.2 3.2 3.1 3.2

Operating costs ($m PV 2018) 1.6 79.6 80.3 80.0 80.7 85.7 86.4

Total Costs ($m PV 2018) 1.6 137.1 144.2 141.7 148.7 152.2 159.4

Total Revenue ($m PV 2018) 3.7 75.4 75.4 75.4 75.4 90.2 90.2

Net Present Revenue (Costs) ($m PV 2018) 2.1 -61.7 -68.8 -66.3 -73.3 -62.0 -69.2

Source: Analysis based on information from Warren Green Consulting and Turner and Townsend

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Figure 11: Annual operating impact (PV 2018 @ 9.5 per cent)

Source: Analysis based on information from Warren Green Consulting and Turner and Townsend

Cost benefit analysis

A cost benefit analysis differs from a financial appraisal in that the financial appraisal focuses on revenue flows, capital and operating costs for Council, while a cost benefit analysis broadens the analysis to include non-market values, and to capture the economic impact on all relevant stakeholders instead of those directly related to the project. Many of these are not financial in nature, and while the economic analysis quantifies impacts in dollars, these are a measure of social welfare, not financial value. The cost-benefit analysis of the six project options required an incremental assessment relative to the base case and involved the following steps (Figure 12):

• identification of the community of interest (or referent group) for the Project;

• identification of relevant incremental economic, social and environmental costs and benefits applicable to each option;

• quantification of the identified incremental costs and benefits, where possible;

• comparing and contrasting the quantified costs against the benefits over the evaluation period; and

• generating economic appraisal performance measures including the Economic Net Present Value of net benefits (ENPV) and Benefit Cost Ratio (BCR).

The cost benefit analysis has been developed in accordance with the following NSW Government Guidelines:

• NSW Treasury Guidelines for Capital Business Case (TPP 08-5): These guidelines provide guidance on the preferred investment appraisal approach of the NSW Government, and specify the requirements a Preliminary and Final Business Case are to include to meet the needs of the Gateway Review process.

• NSW Government Guide to Cost-Benefit Analysis (TPP 17-03): This recently updated guide provides guidance on the cost-benefit analysis of Government initiatives, and promotes a consistent approach to the appraisal and evaluation of public projects, programs and policies across Government.

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Figure 12: Cost benefit methodology

The Table below details the outputs of the cost-benefit analysis in net present value terms i.e. costs and benefits were estimated at 2017/18 prices and discounted using a 7 per cent discount rate. In summary, the new aquatic leisure centre is assessed to deliver benefits for local community members. While these community benefits were not assessed to outweigh the full extent of the project costs across the options examined, the BCRs for Options 1 and 2 are considered to be in the range expected for an aquatic leisure centre, on the basis of:

• many of the benefits are not quantifiable though deliver significant social and community benefits; • the project providing an excellent return on investment for the State Government’s potential contribution of $30 million (Table 6).

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Table 7: Benefit cost items of the new aquatic leisure centre ($m, net present value terms)

Option 1a Option 1b Option 1c Option 1d Option 2a Option 2b

Incremental project costs

Planning costs 1.9 1.9 1.9 1.9 1.9 1.9

Capital costs 50.8 57.0 54.5 60.7 59.1 65.4

Operational and maintenance costs 65.2 65.6 66.0 66.4 70.3 70.6

Opportunity cost of land 0.2 0.2 0.2 0.2 0.2 0.2

Total incremental project costs 118.1 124.6 122.6 129.1 131.5 138.1

Incremental project benefits

Travel time savings 57.6 57.6 57.6 57.6 57.6 57.6

Consumer surplus – swimming facilities 5.5 5.5 5.5 5.5 12.0 12.0

Consumer surplus – car parking 3.9 4.4 3.9 4.4 10.4 11.7

Public health and productivity benefits 3.6 3.6 3.6 3.6 4.9 4.9

(Net) residual value 2.8 2.9 2.7 2.8 5.7 5.9

Avoided lease and operations costs 1.4 1.4 1.4 1.4 1.4 1.4

Producer surplus - - - - 1.0 0.8

Labour surplus 12.5 12.5 12.5 12.5 13.4 13.4

Total incremental project benefits 87.3 87.9 87.2 87.8 106.3 107.7

Performance indicators

BCR 0.74 0.71 0.71 0.68 0.81 0.78

ENPV ($million) -30.8 -36.8 -35.4 -41.4 -25.1 -30.4

Incremental cost to the State Government

Capital contribution 24.8 24.8 24.8 24.8 24.8 24.8

BCR for the State Government 3.5 3.5 3.5 3.5 4.3 4.3

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Another consideration is the sensitivity of the result to changes in underlying assumptions and the discount rate used - at the 3% discount rate, a number of options have a BCR exceeding 1. To assess the potential impact of changes in key underlying assumptions, a detailed scenario analysis has been conducted based on a set of illustrative ‘pessimistic’ and ‘optimistic’ scenarios. The details and rationale for these scenarios are presented below in Table 8.

Table 8: The details and rationale of the alternative scenarios assessed

Parameter Optimistic scenario Pessimistic scenario

Rationale Percentage deviation from central scenario

Discount rate 0% 0% -

Average travel time savings due to the new aquatic leisure centre +30% -30% Consistent with plus or minus 15 mins to the average travel time

savings per visit.

Annual attendance levels +20% -20% Consistent with upper and lower limits of performance measures from other aquatic leisure centres e.g. attendance levels per car park.

Annual operating costs -15% +15% Consistent with the estimated cost implications stemming from the adoption of different operating models

Capital costs -10% +10% Consistent with the scale of contingencies included within the capital cost.

Table 9 below compares the BCR and net present value of the ‘pessimistic’ and ‘optimistic’ scenarios to the central scenario which is the basis of the results presented in Table 6 above. The results indicate that all the project options have the potential to record a positive BCR under an ‘optimistic’ though entirely plausible scenario.

Table 9: Comaprison of performance indicators under alternative scenarios, present value terms

Scenarios Option 1a Option 1b Option 1c Option 1d Option 2a Option 2b

Pessimistic scenario BCR 0.40 0.38 0.38 0.37 0.48 0.46

NPV ($million) -80 -86 -85 -91 -77 -83

Central scenario BCR 0.74 0.71 0.71 0.68 0.81 0.78

NPV ($million) -31 -37 -35 -41 -25 -30

Optimistic scenario BCR 1.24 1.19 1.21 1.15 1.31 1.25

NPV ($million) 26 21 22 17 36 31

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Recommended Option

The new aquatic leisure centre for Parramatta will service the country’s largest catchment population for this type of facility and cater for a diverse range of user groups including residents, office workers and students. The region is currently very poorly serviced by aquatic leisure facilities and the development of a new centre provides Council with a unique opportunity to ensure the appropriate community service provision well into the future.

Option 1 provides a significant enhancement to the former PWMSC, with the inclusion of year round indoor aquatic leisure facilities delivering positive revenue and community service benefits.

The topography of the Parramatta Park site also provides an opportunity for gym and related facilities, adding to both the viability and functionality of the centre.

The design will be subject to Design Excellence, and compliance with heritage and environmental standards will be highly scrutinised.

As a result, option 1C incorporates additional ESD features such as a timber roof structure and translucent roof sheeting. Design features such as this, and other ESD initiatives potentially including solar and careful selection of materials, will be important in satisfying the requirements of Council, approval authorities and the Parramatta Park Trust.

When reviewing the Business Case design options, it is highlighted that Option 2 includes an outdoor recreational water space (for families and young children) as well as additional health and wellness spaces for adults. While these elements contribute further to the function and performance of the new aquatic leisure centre, as demonstrated by the improved BCR compared to option 1, the following factors need to be considered:

The additional outdoor pool and consequent additional footprint of the facility further encroaches on Parramatta Park open space, with Option 1 currently maintaining the 2 hectare site limitation negotiated with Parramatta Park Trust (when at-grade car parking is taken into account);

The budget implications for option 2, noting their estimated costs of from $75 to $83m, represent a significantly higher call on Council funds than the $69.5m estimate ($39.5m from Council) of Option 1C;.

Finally, the inclusion of underground car parking is considered for both options 1 and 2. In each case, the additional cost of excavation and the disturbance of the natural ground, coupled with the reduction in viability of the centre, make these options relatively less desirable.

As a result, the option recommended in this Business Case is Option 1C.

The program developed by consultant TBH which includes contingency based on industry practice, shows completion of the recommended option by June 2020.

To achieve this date requires continued design development and stakeholder consultation, with a Design Excellence design process assumed.

The program does not allow for a design competition, and assumes construction durations consistent with the preferred Option 1.

It is anticipated that adopting either or both of a design competition, or adopting a design that requires additional scope or underground excavation for car parking, would add of the order of 3-6 months to the program.

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Financial Implications for Council

The financial implications for Council are summarised in Table 10 below:

Table 10: Financial impact of preferred option (nominal $, excluding lifecycle maintenance/sinking fund)

FY18 FY19 FY20 FY21 FY22 FY23 etc

Capital

Cost 5 30 34.5

Source

NSW Govt 0 30 0

Council 3 0 10

S94 2 0 5

other 0 0 19.5

Recurrent

Cost 0 0 6.5 6.9 7.1 7.1

Source

Revenue 0 0 5.4 6.0 6.4 6.4

Council 0 0 1.1 0.9 0.7 0.7

A number of options have been reviewed by Council in order to provide the necessary funding to meet the cost of the preferred option additional to the $30m NSW Government grant. These funding sources include one or a combination of the following options:

• Loan Funding secured from TCorp or Banking Institution

• Council can secure discounted interest rates with flexibility for either interest only or principal and interest loan facility via TCorp.

• Interest cost of $1.4-1.6m per annum for interest only loan based on full debt funding.

• Principal and Interest 20yr loan $2.4-2.7m per annum.

• Developer contributions

• Allocation of Section 94a contributions – current balance of $5m

• Potential for an additional $10m under the current Section 94a plan

• Allocation from internal reserves

• Allocation from Asset Renewal Reserve - forecast balance of $10m at the end of June 2018.

• An allocation of up to $5m from Property & Significant Assets Reserve - forecast balance of $40m at the end of June 2018.

• Direct contribution from General Revenue

• Council currently has up to $30m available annually to fund capital works not being funded by developer contributions, grants or special rates.

The final allocation of funds for Council’s contribution is proposed to be agreed as part of the delivery program and annual budgeting process for 2018/19.

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It is also proposed that recurrent funding is to be met from General Revenue which previously funded the Parramatta War Memorial Swim Centre. It is noted that steady state net recurrent cost (after initial year’s transitional costs) is forecast to be lower than the Parramatta War Memorial Swim Centre for all options.

Risk assessment

A thorough assessment was conducted across all stages of the project life. A number of risks of a ‘moderate’ rating were identified during the planning and design phases including:

• securing funding from Council for the balance of funds in addition to the $30m contribution sought from NSW Government;

• ability or delays in reaching agreement with PPT regarding design, approval and leasing conditions;

• land capability issues (e.g. soil/geology/hydrology/contamination) affect development footprint and/or design;

• existing services infrastructure limitations (water, sewer. electricity etc.);

• approvals risks, including aboriginal and heritage;

• delayed internal client approval processes; and

• operational risks associated with start-up, the facility functioning to its design requirements and capacity limitations.

In response, risk mitigation strategies were identified that are expected to help reduce the level of risk during the design phase to a ‘low’ rating and help support the delivery of the new aquatic leisure centre.

Implementation

Consistent with Treasury guidelines, an implementation plan has been established for the new aquatic leisure centre including:

• Project planning that sets out the key activities that need to be completed to achieve key project milestones in the construction of the aquatic leisure centre including subdivision, procurement, and development approval.

• Governance model that sets out the governance framework for the funding, delivery and operation of the new aquatic leisure centre within Mays Hill Precinct.

• Procurement method that sets out the approach and personnel to be involved in the procurement of construction, project management and ongoing support services. It also sets out the sources of funding from NSW Government and the City.

• Management that sets out the management arrangements necessary to ensure that the facility can support the expected uplift in demand and the range of additional services and facilities provided to the local community.

• Risk assessment to identify and analyse risks and to manage their consequences by putting in place strategies to minimise and/or avoid risks.

• Benefit realisation strategy to ensure that the full scope and scale of expected benefits associated with the new aquatic leisure centre are realised over the project life.

• Stakeholder consultation strategy that sets out how the City intends to educate the community in regards to options and implications, confirming the vision for the new centre, support for funding opportunities, ensure design meets their needs, delivery of the centre and interim options whilst services are not available.

• Resourcing to establish the roles and responsibilities required to oversee the construction, operation and management of the new aquatic leisure centre.

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Recommendations

On the basis of this Business Case, the new Aquatic Leisure Centre for Parramatta within Zone 2 of the Mays Hill Precinct is recommended, as follows:

1. The recommended option is Option 1C.

2. The contribution sought from NSW Government is $30m.

3. Council will provide the balance of funds of $39.5m to meet the $69.5m total capital cost of the preferred option.

4. Council will finalise a further MoU with Parramatta Park Trust in early 2018 and continue working with PPT and stakeholders to develop the option according to Design Excellence principles.

5. Council provides a further $1.5m to allow the further consultation and design development to maintain the challenging program, noting that the master program shows completion in June 2020, and any delay to these activities will delay the project beyond September 2020.

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1 Introduction The following section provides background and context for the Business Case, outlines the specific purpose of the Business Case and sets out the structure for the remainder of the document.

1.1 Background

1.1.1 Policy context

In September 2015, the New South Wales (‘NSW’) Government announced the Rebuilding the Major Stadia Network Strategy (‘the Strategy’) and committed to investing over $1 billion in the existing stadia network over the next decade to drive growth in the visitor economy, realise the economic and social benefits of strong cultural and sporting sector, and support liveability for the people of NSW.

As part of the Strategy, Parramatta Stadium will be replaced by a new state of the art rectangular sporting stadium that will accommodate an additional 10,000 spectators. The larger footprint required to expand the seating capacity of Parramatta Stadium has resulted in the closure of the adjacent Parramatta War Memorial Swimming Centre (‘PWMSC’), which was owned and operated by the City of Parramatta (‘the City’) on land leased from Parramatta Park Trust and had been the largest and most popular aquatic facility in the municipality for the past 50 years.9

Subsequently, the City, the NSW Government and Parramatta Park Trust have collaborated to identify a site for the new aquatic leisure centre through the completion of the Mays Hill Precinct Master Plan. The master plan, which was informed by a number of studies and community consultation, identified the preferred location to be adjacent to Park Parade and near the corner of Pitt Street, on the eastern portion of the former golf course.

“A feasibility study will now be conducted to confirm the suitability of the former Golf Course site and a master plan will be developed to explore opportunities for the area to be upgraded and repurposed for public use,”

“Subject to the finalisation of funding arrangements, the City of Parramatta Council will be responsible for delivering the new aquatic centre.”10

NSW Office of Sport, Ministerial media release: Site identified for new Aquatic Centre in Parramatta, June 2016.

The suitability of the site is due to its viability from a service delivery and operational perspective, given the close proximity to the Parramatta Central Business District (CBD), public transport, and other service infrastructure.

1.1.2 Planning work undertaken to-date

Since mid-2016 the City has been actively involved in commissioning and developing a series of planning and feasibility studies to:

• confirm the current needs of the community for aquatic leisure facilities;

• understand the suitability of the Mays Hill Precinct to accommodate a new aquatic leisure centre;

• assess the feasibility of a series of design concepts for the new aquatic leisure centre; and

• develop a Master Plan for the broader Mays Hill Precinct.

9 The bigger footprint is also needed as a result of modern security requirements that mean more circulation zones around the stadium and due to the need for improved pedestrian and vehicle access along O’Connell Street and from neighbouring areas. 10 Office of Sport, Ministerial media release: Site identified for new Aquatic Centre in Parramatta, June 2016.

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In parallel to the activities undertaken by the City over the past year, the State Government introduced the Parramatta Trust Amendment Bill 2017 in September 2017 to enact three amendments to the Parramatta Park Trust Act 2001 to:

• facilitate the construction of the new Western Sydney Stadium; and

• facilitate the development of a new aquatic leisure centre for the Parramatta community.

The first of these amendments included the provision to allow the Parramatta Park Trust to enter a lease for a maximum of 50 years specifically for a new aquatic leisure centre in the Mays Hill precinct of the parklands.11

The proposed location of the new aquatic leisure centre is illustrated in Figure 1-1 with the closest major aquatic leisure facilities located over 8 kilometres away. The closure of the PWMSC therefore represents a significant gap in aquatic and sporting infrastructure in the Parramatta area.

11 Legislative Council Hansard, PARRAMATTA PARK TRUST AMENDMENT (WESTERN SYDNEY STADIUM) BILL 2017, 13 September 2017.

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Figure 1-1: Proposed location of the new aquatic leisure centre


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As illustrated in above, the proposed location for the new aquatic leisure centre in Parramatta is suitable given the distance from other local outdoor swimming pools and aquatic centres and the proximity to the catchment population. A number of aging traditional aquatic leisure centres are located within 5km of the proposed new centre, but all have limitations (capacity, quality, range of services and accessibility) to replace the services provided by the former PWMSC. More contemporary facilities are located 8 to 14 km away at Sydney Olympic Park, Castle Hill, Lidcombe, Blacktown and Ryde.

1.1.3 Key objectives of the new aquatic leisure centre

As part of the planning work undertaken for the new aquatic leisure centre, a series of community consultations were undertaken in early 2017 to build a stronger understanding of the needs and priorities of the community with respect to the features and facilities to be considered in the development of the new centre. Almost 3 000 people participated in the consultations, and a series of key features for the new aquatic leisure centre were identified. These features informed the development of a set of key objectives of the new aquatic leisure centre, and this is outlined in Figure 1-2 below.

Figure 1-2: Key objectives of the new aquatic leisure centre


1.2 Purpose of the Business Case

Following the official closure of the PWMSC on 31 March 2017, the NSW Government committed to contributing $30 million to the City to build a replacement facility. This would be contingent on a number of conditions, including the development of a formal business case and ensuring that the new aquatic leisure centre will deliver a net community benefit to the State.12 This document represents the Final Business Case for the new aquatic leisure centre to be located within the Mays Hill Precinct and the culmination of a series of planning and feasibility studies conducted over the course of mid 2016-2017. A timeline of the activities undertaken to-date are summarised in Figure 1-3.

The purpose of this Final Business Case is to assist decision makers determine the best option for the development of a new aquatic leisure centre given the impacts on the City, the wider community network-wide impacts, and the social, economic and financial costs and benefits to the NSW community as a whole. The City has taken a comprehensive view in the project rationale and the analysis of the potential redevelopment options, has developed this Business Case in a manner consistent with the NSW Treasury Guidelines (‘the Guidelines’).

12 As demonstrated by a formal cost-benefit analysis.

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Figure 1-3: Roadmap to the development of the Final Business Case


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1.3 Approach to developing the Business Case To support the development of the Final Business Case, the City sought professional advice from a number of technical advisors, and commissioned a series of targeted studies. The studies were leveraged and formed the basis of a series of more targeted work packages to underpin this Business Case. These work packages are summarised in Table 1-1, and the reports generated through these work packages have been used to support the development of the options and the analysis within the Final Business Case, and are detailed in full within the appendices.

Table 1-1: Work packages underpinning the Final Business Case


Concept design Lead: Sissons Architects

The purpose of the Final Business Case is to inform a decision by the NSW Government around the preferred option for the development of the new aquatic leisure centre in Mays Hill Precinct. Accordingly, a key aspect of the Final Business Case development has involved an extensive package of work to develop concept designs and assess the total area schedule required for each of the options.

Capital cost modelling Lead: Turner and Townsend

The purpose of the capital model development is to estimate all capital expenditure requirements associated with the development of new aquatic leisure centre for each of the options considered within the Final Business Case. The capital model, developed by Turner and Townsend, has considered the following elements:

• new facility costs;

• direct equipment costs associated with the facility and content;

• any capitalised temporary operating costs including and start-up costs; and

• lifecycle maintenance costs.

Cash flow modelling Lead: Warren Green Consulting

A core requirement of the Final Business Case development has been to identify, understand, and test the various drivers impacting the development and ongoing operation of the new aquatic leisure centre. The purpose of the operating, capital and transition model developed by Warren Green Consulting has been to draw together a breadth of research, evidence, and technical advice from the planning work undertaken to-date to model the potential operational impacts of each of the options under consideration, including the level of potential demand and visitation.

Economic and financial analysis Lead: KPMG

The Final Business Case considers the costs and benefits associated with each option against the Base Case, through a comprehensive economic and financial analysis. This is also supported by an extensive domestic and global evidence base of quantitative and qualitative analysis, and an economic appraisal of the benefits of the options for the Parramatta and NSW community more broadly.

Implementation planning and consultation Lead: The City

The purpose of the implementation planning is to identify the timing, strategies and staging works associated with all aspects of the development of new aquatic leisure centre. The detailed timeline and logistical plan, developed by the City is a key input to the Business Case development and will also be used on an ongoing basis in later stages of the feasibility work and project realisation, providing key stakeholders with greater clarity around each element of the transition and informing considerations around planning, resourcing requirements, risk management, and stakeholder engagement. The City has also led the consultation process through 2016 and 2017, which is ongoing, and informs the user needs, design and service delivery model.

1.4 Structure of the Business Case Consistent with NSW Government guidelines, this Business Case is structured as follows:

• Section 2 – describes the case for change including the rationale for the project; the service need, the priority of the service need, the benefits associated with addressing the service need and the outcomes of the stakeholder consultation process.

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• Section 3 – outlines the project objectives, the shortlisted solutions for analysis (the project options), the costs and benefits of the options, the risk assessment of the project and a number of other important considerations. The costs and benefits sub-section includes:

– Operating assumptions: An overview of the demand, operating and financial assumptions underpinning the evaluation of the base case and the project options.

– Financial appraisal: Analysis of the financial impacts of the project on the operations of the Stadium, and of the financial return from the project.

– Cost-benefit analysis: The analysis of the social and economic costs and benefits of the project that are quantifiable, and whether the benefits outweigh the costs.

• Section 4 – outlines a plan for the implementation of the preferred options including the proposed project governance, project delivery risks, benefits realisation strategy, and the stakeholder consultation plan.

The Business Case is supported by a series of Appendices, namely:

• Appendix A: Analysis of Recreational and Aquatic Needs and Industry Trends – February 2017

• Appendix B: Stakeholder Engagement and Communications Plan

• Appendix C: Option 1a Area schedule and design concept

• Appendix D: Option 1b Area schedule and design concept

• Appendix E: Option 1c Area schedule and design concept

• Appendix F: Option 1d Area schedule and design concept

• Appendix G: Option 2a Area schedule and design concept

• Appendix H: Option 2b Area schedule and design concept

• Appendix I: Capital costs

• Appendix J: Life cycle costs

• Appendix K: Agreement with Parramatta Park Trust

• Appendix L: Project Plan

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2 The case for change

2.1 Overview The following section outlines the rationale for the development of a new aquatic leisure centre in Parramatta. The case for change outlines the particular service need, the drivers of the service need, the priority of the service need (as it relates to broader government objectives), benefits of the service need and any impact on stakeholders. Section 3 of the report builds on the themes and findings from the Case for Change to develop a set of project objectives, aimed at addressing the identified service need and fully achieving the identified benefits of doing so. From these objectives, project options are developed, which are analysed and compared in further detail throughout this Business Case.

2.2 Service need The need for investment in a new aquatic leisure facility in Parramatta is driven by three primary drivers, namely:

• the closure of the PWMSC to enable the redevelopment of the Western Sydney Stadium;

• the socio-demographic drivers in the community and need to respond by provision of appropriate social and recreational infrastructure; and

• the need to support the continuing transformation of Parramatta as Sydney’s Central City.

The information in this section has been derived in part from the studies carried out by the City in 2017:

• Analysis of Recreational and Aquatic Needs and Industry Trends – February 2017 which is at Appendix A; and

• An Aquatic Leisure Centre for Parramatta Feasibility Study - June 2017.

2.2.1 Closure of the Parramatta War Memorial Swimming Centre

The development of the Western Sydney Stadium – a new state of the art rectangular sporting stadium accommodating an additional 10,000 spectators compared to the existing Parramatta Stadium – resulted in the closure of the adjacent PWMSC. Over the last 50 years, the PWMSC was owned and operated by the City, and the largest and most popular facility in the municipality. Before it official closure on 31 March 2017, the PWMSC attracted over 160,000 visitations per annum and generated annual revenue of close to $1.3 million over the last four years. This level of revenue and attendance is relatively high when benchmarked to other outdoor aquatic leisure centres across NSW, which suggests that there is a high level of underlying demand for aquatic leisure facilities within the local community. In addition, benchmarking indicates that demand is greater when multi-purpose, indoor aquatic leisure facilities are provided (Table 2-1).13

Table 2-1: Benchmarking the attendance at the Parramatta War Memorial Swimming Centre


Estimated annual revenue ($ million)

PWMSC (NSW) Outdoor 160,000 $1.4

Hawthorn (Vic) Indoor/Outdoor 625,000 $5.6

Gunyama Park (NSW) Indoor/Outdoor 700,000 $6.5

GESAC (Vic) Indoor/Outdoor/Courts 1,100,000 $11.0

Cockburn ARC (WA) Indoor/Outdoor/Courts 800,000 $7.5


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Estimated annual revenue ($ million)

Average of sample 531,429 $3.5


PWMSC provided expansive facilities for local and regional uses:

• 10 lane 50m heated outdoor pool;

• Open grand stand seating for 400 people (with shade);

• 25 x 30m unheated outdoor utility pool (for competition water polo and diving) + Olympic Dive Tower with 1, 5, 7 and 10m platforms plus 1 and 3m boards;

• 25m heated outdoor program pool - covered by permanent shade structure;

• Toddler pool (outdoor) with beach entry – covered by permanent shade structure;

• Twin water slides (60+ m) in bushland setting;

• Program (multipurpose) room with audio visual equipment;

• Swim Club/Water Polo Club clubroom;

• Refurbished traditional change rooms and public amenities;

• Kiosk and Reception Foyer;

• Extensive/expansive outdoor space, much of it grassed/landscaped with BBQ facilities and shade structures; and

• Access to 140 car park spaces (part of leased land) and a further 120 additional paid car spaces in PPT car park– used as overflow to meet weekend peak summer demand.

The user groups serviced by the PWMSC were diverse, and included:

• 3,300 Learn to Swim enrolments (over 75 per cent participants live locally in the suburbs of Parramatta, North Parramatta and Westmead);

• 35 swimming carnivals (12,562 students);

• 14 primary school programs (5.666 students);

• five high school learn to swim programs (2,608 students);

• Parramatta Memorial Swim Club;

• Parramatta Water Polo Club and Water Polo NSW;

• Swim Squads;

• NSW Institute of Sport (swim program and occasional dive program);

• recreational swimmers and lap swimmers (over 45 per cent of these casual users and members live within three to four kilometres of the Centre, and of those that live further away, a significant proportion work within the CBD or surrounds); and

• 12 other user groups, including the Parramatta Eels, Aussie Masters, and Youth of the Streets.14

These users – ranging from lap swimmers, swim school participants, school carnivals, club and sporting groups and other community groups – represent the high level of community demand for aquatic leisure facilities. The

14 Parramatta City Council, A New Aquatic Leisure Centre for Parramatta: Analysis of recreational and aquatic needs and industry trends – February 2017.

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closure of the PWMSC therefore has a direct impact on the social and physical wellbeing of a significant number of people within the community in Parramatta and its surrounds.

In the absence of the PWMSC to service these users, alternate options are limited. Table 2-2 below shows the proximity between Parramatta and other local swimming pools and aquatic centres, with the majority falling outside of a three kilometre radius – or outside the Parramatta CBD and surrounding areas and are generally of poor quality and limited service capacity.

Table 2-2: Proximity to local swimming pools and aquatic centres

Local swimming pools Local aquatic leisure centres

Merrylands Pool Within 3 km radius of PWMSC

Waves Fitness and Aquatic Centre

9.2 km away from PWMSC

Guildford Pool Not within 3 km radius of PWMSC

Blacktown Aquatic Centre 14.6 km away from PWMSC

Wentworthville Pool Not within 3 km radius of PWMSC

Ryde Aquatic Leisure Centre

13.1 km away from PWMSC

Granville Pool Within 3 km radius of PWMSC

Sydney Olympic Park Aquatic Centre

10 km away from PWMSC

Auburn Pool Not within 3 km radius of PWMSC

Epping Pool Not within 3 km radius of Parramatta


Further, despite the high levels of community demand for the PWMSC and other outdoor aquatic leisure centres, there are very few examples in the Australian context of private sector investment in aquatic leisure infrastructure. The primary factor behind the lack of private sector investment is the lack of commercially acceptable returns. Few centres generate a financial return after consideration of whole-of-life asset costs and any such return is typically insufficient to attract private sector investment when considering the risk profile of the investment.

Local and State Governments across Australia have continued to invest in sport and leisure facilities due to the range of economic, social and environmental benefits for local communities (set out in further detail in Section 2.4. While these benefits cannot be captured by private sector investments, there is significant public value for the broader economy and community.

2.2.2 Socio-demographic drivers in the community and the need to respond by provision of appropriate facilities

While the proposed redevelopment to create a new Western Sydney Stadium means the loss of the PWMSC – a treasured community asset – it also provides a timely opportunity to consider the changing socio-demographic characteristics of Parramatta and the adequacy of current provision of aquatic leisure facilities.

Over the past 10 years, Parramatta’s residential population has grown at 2.5 per cent annum (or 4,100 new residents), compared to 1.2 per cent for NSW.15 Figure 2-1 below further illustrates the significant population growth experienced by Parramatta compared to NSW more broadly over the last 14 years, with Parramatta experiencing an average annual population growth of 2.2% compared to 1.1% for NSW.

15 For more information please see: https://www.cityofparramatta.nsw.gov.au/sites/council/files/apps/infographics/economy.html

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Figure 2-1: Historical population growth for Parramatta and NSW

Source: Australian Bureau of Statistics (ABS), Census of Population and Housing 2006, 2011 and 2016.

Population growth has been underpinned by urban consolidation (medium and high density housing) in existing residential areas, and the redevelopment of former industrial areas in the south-eastern suburbs of Parramatta. This has also helped to attract a high proportion of young adults to the Parramatta from surrounding municipalities due to the high levels of accessibility to employment, education and transport.16

Population projections for Parramatta also indicate high levels of growth compared to that for Greater Sydney and NSW. According to the NSW Department of Planning, Parramatta is projected to experience an average annual population growth of 2.9 per cent between 2011 and 2036, outstripping growth in Metropolitan Sydney and NSW by 1.4 per cent and 1.6 per cent respectively.17

Further, the population projections for Parramatta show that a significant growth will be in the age cohorts between 0 and 19 years, 50 to 64 years, and 65 and over years. Figure 2-2 below shows the projected population growth (in compound annual growth rates) being highest in the youngest and the oldest age cohorts. Given that school-aged children (e.g. children learning to swim and participating in school-based swimming training and carnivals) and older people (e.g. older people involved in senior activities and recreational swimmers) were very well-represented among the users of the PWMSC, there is a strong – and growing – level of community need for a new aquatic leisure centre in Parramatta.

16 For more information please see: http://forecast.id.com.au/parramatta/drivers-of-population-change 17 NSW Department of Planning, 2016, New South Wales State and Local Government Area Population Projections.

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Figure 2-2: Population projections for Parramatta by age cohort

Source: Department of Planning 2016, Local Government Area Population Projections

Parramatta is also family orientated, with majority (77.8 per cent) of households being family households, compared to the NSW average of 74.3 per cent, and 46 per cent of households comprise of ‘families with children’.18 There is also significant cultural and linguistic diversity in Parramatta – 59.4 per cent of people speak a language other than English at home, compared to 32.4 per cent for NSW more broadly. These socio-demographic trends have important implications in considering the investment and provision of social and recreational infrastructure, including aquatic leisure facilities.

Strong levels of population growth across Parramatta over recent years has led to relatively low levels of aquatic leisure facility provision on a per capita basis compared to other NSW LGAs and to recommended levels of facility provisions from state government guidelines. For example, a 2015 review of Council aquatic leisure facility provision indicated that the average 2014/15 level of aquatic leisure provision for the reviewed councils was one facility to 67,774 residents, while the same ratio was much higher in Parramatta at one facility to 94,966 residents. Figure 2-3 below illustrates the differences between the councils, and shows that the lowest level of provision at the time was in Parramatta. For comparison, the 2011 guidelines produced by Aquatics and Recreation Victoria stipulate that it is recommended that one regional aquatic facility is provided for every 100,000 to 150,000 people.19

18 Australian Bureau of Statistics (ABS) 2017, Census of Population and Housing 2016. 19 Aquatics & Recreation Victoria, Indoor Aquatic and Recreation Facility Development Guidelines, 2011

http://www.aquaticsandrecreation.org.au/ARVIndoorAquaticRecreationFacilityDevelopmentGuidelines/files/mobile/index.html#1

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Figure 2-3: Aquatic leisure centre provision across selected NSW councils



The low level of provision of aquatic leisure facilities in Parramatta has contributed to community participation levels that are below the average of other councils across NSW. For example, the average 2014/15 level of aquatic leisure participation for the Councils reviewed was 2.1 visits per head of population, compared to the City participation was 1.5 visits per head of population (Figure 2-4). This was the lowest level of participation of the Councils reviewed at the time.

Figure 2-4: Aquatic leisure centre visitation across selected NSW councils


Note: Based on the council boundaries defined prior to recent amalgamations

The closure of the PWMSC has resulted in the current level of provision in Parramatta falling further behind the rest of the NSW. For example, the closest local government facilities to the Mays Hill precinct site are the Merrylands and Wentworthville Swimming Centres and both of these are seasonal outdoor facilities with annual visits being less than 45,000. Going forward, the current provision of aquatic leisure facilities is unlikely to meet community demand given the current shortfall and the projected demographic changes – characterised by significant population growth, particularly for younger and older age cohorts – for Parramatta over the next 10 to 20 years.

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Healthy high density living will be a key driver of need for accessible recreational services for people to meet their daily physical exercise and other health and wellbeing requirements. Limited access and/or poor quality of facilities, especially in the context of public open space and recreational facilities substituting as resident’s backyards, plays a role in a community’s overall health and wellbeing performance. Across most measures, Parramatta already experiences higher levels of poor health and wellbeing than others in Western Sydney and definitely so when compared to Greater Sydney and national averages. The information below provides examples of the current situation.

• Parramatta has higher level of overweight people, 51.5 per cent when compared to Greater Sydney with 38.2 per cent,

• Only 48.4 per cent of Parramatta residents undertake the recommended level of physical activity, which is lower than Greater Sydney level of 65.7 per cent.20

The provision of high quality and accessible recreation offerings will be a key strategy in arresting poor existing levels of health and wellbeing, in addition to meeting future projected needs. A healthier and well community will drive greater productivity and other economic and social benefits.

2.2.3 The continuing transformation of Parramatta

Parramatta is experiencing significant change as it transforms into Sydney’s Central City and as a key focus for economic and cultural outcomes for Western Sydney – Australia’s third largest economy and one of its fastest growing regions. This will improve the liveability of Sydney, lift productivity, and increase capacity to meet projected population growth in terms of employment, education, and other opportunities.

A key driver of Parramatta’s transformation has been the significant infrastructure investment planned for Parramatta, to be delivered over the next five years, including:

• public investment in economic and social infrastructure – this includes:

– $4.7 billion of economic infrastructure (e.g. WestConnex and the Parramatta Light Rail connecting the Parramatta CBD to Homebush);

– $2.7 billion of social infrastructure (e.g. investments in the Westmead precinct, the ‘vertical school’, the Museum of Applied Arts and Sciences (MAAS) and the new Western Sydney Stadium.

• private investment in commercial and residential buildings – this includes $3.4 billion of investment consisting of an additional 7,400 residences and an extra 232,000 square metres in commercial floorspace.21

When the addition of a substantial transient population of workers and students coming into Parramatta each day is included with the residential population, the overall City population is projected to increase by 58% from 403,272 in 2016 to 637,339 in 2036 (Figure 2-5). As these population segments represent growing markets for recreation, leisure, and fitness facilities in Parramatta, there is likely to be strong need for a new aquatic leisure centre.

Figure 2-5: Projected growth in people living in and commuting to Greater Parramatta

2016 2036 Change

Population 236,272 397,339 68%

Office workers 150,000 200,000 33%

20 Information obtained from Forecast ID 21 City of Parramatta 2016, Parramatta 2021: Unlocking the potential of a new economy, October 2016.

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Tertiary students 17,000 40,000 135%

Source: Forecast.id

The strong population growth expected across Parramatta is consistent with the population growth expected within three and five kilometre catchments of the Mays Hill Precinct. Table 2-3 below indicates that from 2016 to 2036, the overall three kilometre catchment population is projected to increase by 65 per cent from 119,190 residents to 197,128 residents.

Table 2-3: Population growth within the 3km catchment of the Mays Hill Precinct

3km catchment 2016 2021 2026 2031 2036 % Change

City of Parramatta 70,369 85,971 101,575 116,823 128,319 82

Cumberland Council 48,820 58,425 63,492 66,268 68,809 41

Total 119,190 144,397 165,067 183,092 197,128 65


Parramatta is focused on providing services and facilities that support the liveability of a great and vibrant city and respond to the diversity of ages, backgrounds, and ethnicities of the region. The projected growth in residents, workers and students will rely upon increased density in commercial and residential development, high levels of transport connectivity and the rollout of planned social infrastructure including sporting and leisure facilities.

2.3 Priority of service need In planning for and building a polycentric city, the NSW Government has identified and committed to the development of Parramatta as Sydney’s second CBD. It is the strategic centre, and geographical, economic and population epicentre of Western Sydney region. To support and enable this development, Parramatta has been the focus of a significant extent of the Federal, State and Local Governments’ strategic planning and infrastructure investment.

While investments in traditional infrastructure are critical to supporting Parramatta’s long term employment growth, economic growth and productivity, investments in fit-for-purpose sports and cultural infrastructure are also an important component of urban development, in supporting regional competitiveness, and in supporting greater community and social cohesion. Sports and culture has long been regarded as an important contributor to a range of social, economic, and educational outcomes through contributing to broader health, wellbeing and social cohesion within the community.

Importantly, the Parramatta City Council and the NSW Government’s strategic priorities have also recognised the critical role that sports and cultural infrastructure and participation will play in the development of the Western Sydney region – in underpinning urban development and renewal, competitiveness, and promoting better quality of life, education, and innovation outcomes.

Council’s Infrastructure Needs Analysis identifies, amongst almost $1 billion in infrastructure requirements, 12 high priority recreation and leisure projects, of which the new aquatic leisure centre is the highest priority. Table 2-4 below sets out the various strategic intersections of the development of the new aquatic leisure centre with the various federal, state and local strategic policies and priorities.

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Table 2-4: Strategic alignment with government priorities

Strategy / Priority Relevant objectives and priorities Alignment of the new aquatic leisure centre to these Plans

City of Parramatta Council strategies and priorities

Draft City of Parramatta Social Infrastructure Strategy (August 2017)

The Draft City of Parramatta Social Infrastructure Strategy, (‘the Strategy’) was released in August 2017 and outlines the City of Parramatta Council’s long term direction for social infrastructure provision to meet population needs in high growth areas. The Strategy includes a number of strategic directions including the development of sports fields, indoor recreational facilities and aquatic facilities. One of the key action items noted in the Strategy is to improve and maintain Council’s aquatic facilities is to ‘work with strategic partners and the community to realise a comprehensive aquatic facility in the Parramatta CBD.’

Each of the project options examined aligns with the key action items included within the Strategy to provide a contemporary aquatic leisure centre located in the Parramatta CBD aligned to the current and future population’s needs.

City of Parramatta Economic Development Plan 2017 – 2021 (July 2017)

The City of Parramatta Economic Development Plan 2017-2021 (‘the Plan’) was adopted on 10 July 2017 and is focused on creating more jobs in the City by stimulating the economy and making it more competitive. The Plan articulates the actions that the City commits to undertake between now and 2021 to address the current challenges facing the Council and capitalise on the many opportunities. The Plan contains a number of guiding principles, economic development themes, and specific strategies and action items that intersect with the expected benefits of the new aquatic leisure centre. These include the guiding principles of:

• Employment growth is key…’increasing the number of jobs locally is a better measure of success in local economic development projects. Jobs growth is the common thread that runs throughout the entire Economic Development Plan.’

• Creating great places…’City of Parramatta LGA must be a place that is attractive for residents, visitors, investors, students, workers and business owners.’

Each of the options examined within this business case aligns with a number of the guiding principles, economic development themes and specific strategies of the Plan by:

• Providing employment opportunities during the construction and operational phases of the Project. In particular, the new aquatic leisure centre will provide employment opportunities for members of the local community that were previously employed by the PWMSC.

• Providing vital social infrastructure that will address a community need for aquatic leisure services and in turn support future community need, as indicated through projected population and economic growth from attracting residents, visitors, workers and students to Parramatta.

City of Parramatta Community Strategic Plan – Parramatta 2038 (June 2013)

The City of Parramatta Community Strategic Plan – Parramatta 2038 (‘the Strategic Plan’) was released in June 2013 and sets out a clear set of strategic objectives, strategies and action items to help achieve the vision of Parramatta becoming a the driving force and heart of Australia’s most significant economic region; a vibrant home for diverse communities and a centre of excellence in research, education and enterprise. The Strategic Plan contains a number of specific strategies and action items that intersect with the expected with the expected benefits of the new aquatic leisure centre including the provision of ‘healthy choices and access to services that build on existing regional health facilities and help to tackle issues such as obesity…and focus on healthy lifestyles and health promotion.’

Each of the project options examined aligns with the strategic focus on health and recreation contained within the Strategic Plan by offering access to a comprehensive range of aquatic leisure services (e.g. rehabilitation programs, wellness programs, and aqua aerobics) that will provide community members the opportunity to adopt healthy and active lifestyles. This will contribute towards improved physical wellbeing, which will lead to improved physical fitness, lower obesity levels, and reduce health costs.

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NSW State Government strategies and priorities

NSW Health NSW Healthy Eating and Active Living Strategy (November 2013)

NSW Health released the NSW Healthy Eating and Active Living Strategy 2013-2018 (‘the Active Living Strategy’) in 2013 to provide a whole-of-government framework to promote and support healthy eating and active living in NSW and to reduce the impact of lifestyle-related chronic disease. The Active Living Strategy contains a number of specific strategies and action items that intersect with the expected benefits of the new aquatic leisure centre including a strategic direction ‘to provide environments to support healthy eating and active living.’

Each of the project options examined aligns with the strategic focus on providing environments to support active living within the Active Living Strategy by offering access to a comprehensive range of aquatic leisure services that will provide community members the opportunity to adopt healthy and active lifestyles which will in turn help to improve physical fitness, lower obesity levels, and reduce health costs.

NSW Premier’s Priority – Delivering Infrastructure

The NSW Premier’s Priorities contain 12 strategic priorities for adopting whole-of-government approaches to tackling important issues for the people of NSW including helping vulnerable children and raising the performance of school students, to improving housing affordability and building local infrastructure. The Premier considers it a priority that NSW remains an appealing place that attracts talented people and businesses from around the globe by developing and supporting liveable communities with strong and resilient infrastructure, and engendering a sense of community and city image through cultural events and venues.

Each of the options examined within this business case aligns with the NSW Premier’s Priority – Delivering Infrastructure by providing vital social infrastructure that will address a community need for aquatic leisure services and in turn help to support the projected population and economic growth through better attracting residents, visitors, workers and students to Parramatta.

NSW Premier’s Priority – Tackling Childhood Obesity

The NSW Premier’s Priorities contain 12 strategic priorities for adopting whole-of-government approaches to tackling important issues for the people of NSW, from helping vulnerable children and raising the performance of school students, to improving housing affordability and building local infrastructure. The Premier considers it a priority that NSW seeks to ‘reduce overweight and obesity rates of children by 5% by 2025’ with a particular areas of focus to ‘increas[e] access to sports by providing vouchers to subsidies the costs of participation.’

Each of the project options examined aligns to the NSW Premier’s Priority - Tackling Childhood Obesity by offering children and their families access to an integrated range of aquatic leisure services (e.g. Learn to Swim enrolments, primary school programs, and swim squads) that will help to promote active lifestyles and contribute to reducing childhood obesity rates in the local community.

NSW Office of Sport Strategic Priorities 2016-2020 (October 2016)

The NSW Office of Sport’s 2015 – 2016 Annual Report included the strategic priorities for the period 2016-2020. The strategic priorities that intersected with the benefits of the new aquatic leisure centre included:

• Provision of high quality venues and facilities;

• Enhancing sector performance and sustainability;

• Improving participation in sport and active recreation; and

• Improving the NSW high performance sport system.

Each of the project options examined will potentially support the NSW Office of Sport Strategic Priorities 2016-2020 by providing a high quality aquatic facility that will help to increase swimming participation rates by providing access to a range of pools for all ages and a program of learn to activities for younger children.

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Draft Greater Sydney Commission Central City District Plan (October 2017)

The Greater Sydney Commission released the Draft Central City District Plan (‘the District Plan‘). The purpose of the District Plan is to guide the transition of the Central City District within the context of Greater Sydney’s three cities to improve the District’s, social, economic and environmental assets. The District Plan encompasses the Greater Parramatta area and includes a planning priorities to ‘provid[e] services and social infrastructure to meet people’s changing needs [and to] foster healthy, creative, culturally rich and socially connected communities’.

Each of the project options examined will potentially support the Greater Sydney Commission Central City District Plan and NSW Department of Planning and Environment A Plan for Growing Sydney by providing vital social infrastructure that will address a community need for aquatic leisure services and in turn help support projected population and economic growth by attracting residents, visitors, workers and students to the municipality.

NSW Department of Planning and Environment A Plan for Growing Sydney (December 2014)

A Plan for Growing Sydney (‘the Sydney Plan’), released in December 2014, is the NSW Government’s plan for the future of the Sydney Metropolitan Area over the next 20 years. The Sydney Plan provides key directions and actions to guide Sydney’s productivity, environmental management, and liveability – including the delivery of housing, employment, infrastructure and open space. The Sydney Plan contains a number of and specific strategies and action items that intersect with the expected with the expected benefits of the new aquatic leisure centre. As part of its direction to ‘establish a new Priority Growth Area – Greater Parramatta to the Olympic Peninsula’ the Sydney Plan includes and action to ‘match population growth with the delivery of social infrastructure services, child care centres and recreation facilities’.

Swimming NSW Strategic Plan 2014

The Swimming NSW Strategic Plan (‘the Swim Plan’) was released in 2014 and set out the goals and objectives over the period 2015-2018 to ensure that NSW is the premier swimming state in Australia through increased participation and enhanced performance and through the development of partnerships that provide quality life skills for the community. The Swim Plan contains a number of and specific strategies and action items that intersect with the expected with the expected benefits of the new aquatic leisure centre including to:

• actively grow participation in the sport of swimming in NSW (Participation), and

• ensure access to water space is optimised for both learn to swim and the sport of swimming (Participation).

Each of the project options examined will potentially support the Swimming NSW objectives by providing a high quality aquatic facility that will help to increase swimming participation rates by providing access to a range of pools for all ages and a program of learn to activities for younger children.

Federal Government strategies

Federal Government National Sport and Active Recreation Policy Framework (June 2011)

The Federal Government National Sport and Active Recreation Policy Framework (‘the Framework’) is developed in consultation with sport and active recreation sectors, and provides a mechanism for the achievement of national goals for sport and active recreation and sets out the agreed roles and responsibilities of governments and their expectations of sport and active recreation partners. The Framework provides guidance for governments on how they may pursue a ‘high performing sport and active recreation system that delivers increased participation.’

Each of the project options examined will potentially support the Federal Government National Sport and Active Recreation Policy Framework, Federal Government Preventative Health Taskforce National Preventative Health Strategy – the roadmap for action, and the Australian Sports Commission Play.Sport.Australia by offering access to a comprehensive range of aquatic leisure services that will provide community members the opportunity to adopt healthy and active lifestyles which will in turn help to improve physical fitness, lower obesity levels, and reduce health costs.

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Federal Government Preventative Health Taskforce National Preventative Health Strategy – the roadmap for

action (June 2009)

The Federal Government Preventative Health Taskforce National Preventative Health Strategy (‘the Health Strategy’) provides a blueprint for tackling the burden of chronic disease currently caused by obesity, tobacco, and excessive consumption of alcohol. It is directed at primary prevention and addresses all relevant arms of policy and all available points of leverage, in both the health and non-health sectors. The Health Strategy includes a number of objectives and strategies that intersect with the expected with the expected benefits of the new aquatic leisure centre including the objective of ‘reducing the growing epidemic of overweight and obese Australians.’ The Health Strategy also highlights the fact that ‘exercise is considered the best preventive medicine for old age.’

Australian Sports Commission Play.Sport.Australia (March 2015)

Play.Sport.Australia was released in March 2015 and is aimed at is getting more Australians, particularly young Australians, playing sport more often – at school or with mates at their local club. The objectives of Play.Sport.Australia are to:

• make Australian sport stronger – by getting more people playing sport; and

• see more sports thriving so it is easier for Australians to choose the sports they love. Play.Sport.Australia includes a number of objectives and strategies that intersect with the expected with the expected benefits of the new aquatic leisure centre including the Commission’s ambitions seek to ensure ‘more Australians – particularly young Australians – participate in sport more often…[and to deliver] user-friendly sports opportunities that Australians want’.

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2.4 Benefits of the service need The provision of the new aquatic leisure centre within the Mays Hill Precinct is expected to drive a diverse range of interrelated economic, social, and environmental benefits that will accrue to users as well as the community more broadly. Figure 2-6 below provides a schematic overview of some of these potential benefits, and the following section provides more detailed analysis of the key benefits expected to be delivered to the local community by the new aquatic leisure centre.

Figure 2-6: Interrelated benefits of sport and recreation

Source:

Parramatta City Council, An Aquatic Leisure Centre for Parramatta Feasibility Study – September 2017

The primary purpose of providing an aquatic leisure facility is to increase the participation of local community members in in sports and recreational activities such as swimming, weight training and exercise classes. Table 2-5 below outlines some of the potential reasons why participation in sports and recreational activities may not respond to the provision of a new aquatic facility, and for each of these reasons, outlines the mitigating factors for the new aquatic leisure centre in Parramatta. The presence of the mitigation factors listed below is expected to result in a strong rise in the sport and recreational participation rates of local community members in proximity to the Mays Hill Precinct.

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Table 2-5: Reasons why the new aquatic leisure centre will increase sports participation

Potential risks Mitigating factors for the new aquatic leisure centre in Parramatta

Insufficient interest in the facilities or aquatic / leisure programs being offered

As outlined in further detail in Section 3 below:

• Community consultation conducted by the City indicated a strong level of demand for a modern mixed-used aquatic leisure facility within the Parramatta, and

• Previous annual attendance levels at the PWMSC were high when benchmarked against other outdoor pools across the State.

A sufficient number of facilities to meet the current level of demand

As outlined within Section 2.2.1, the current level of provision of aquatic leisure facilities in proximity to the Mays Hill Precinct is very low when benchmarked to other local councils across the State.

Community members simply changing their mode of exercise as opposed to the level of exercise

Previous research conducted by Victoria University22 regarding the behaviour of Victorian users of aquatic leisure centres indicated that the presence or supply of facilities lead to local community members participating in more physical activity than what would occur if the facility was not accessible (Table 2-7).

2.4.1 Benefits of increased participation in sports and recreation

The academic literature provides compelling evidence that sport and recreational activities are associated with a diverse range of health and social benefits for participants.23 A summary of these benefits and outcomes are outlined below in Table 2-6 below.

Table 2-6: Detailed benefits of sports and recreation

Benefits of participation in sport and recreational activities

Improved Physical Health

Having access to local parks, recreation and sports facilities leads to higher levels of physical activity for both youth and adults, with closer proximity and higher density of exercise facilities significantly associated with increased frequency of exercise. Moreover, increasing the availability of physical activity-related equipment and facilities was found to lead to significant positive changes in overall fitness measures within local communities and decrease the risk of death by 20 to 30 per cent.

Improved Social Inclusion

A lack of appropriate sport and recreational facilities can be found to be a key constraint to the attraction and retention of youth and young adults. Studies however have concluded that opportunities for community involvement, especially through sport and recreation, help to reverse feelings of isolation and create a stronger association with the community, encouraging youth and families to remain in a region. Other positive outcomes in studies include reduced social and ethnic tensions and more collective action and community involvement through sport, particularly volunteering.

Reduced Crime and Anti-Social Behaviour Sport and recreation infrastructure research has found evidence of lower levels of recidivism, drunk driving, use of illegal drugs, crime and suspensions at school, property crime, shoplifting and juvenile crime (for facility users compared with non-users). Research has also found that usage of sport and physical recreation facilities leads to higher levels of trust in people.

22 No equivalent study has been developed for New South Wales. 23 National Centre for Culture and Recreation Statistics, The Social Impact of Sport and Physical Recreation, An annotated bibliography, 2011

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Benefits of participation in sport and recreational activities

Improved Education and Work Participation Use of recreation facilities has been linked to improved participation in extra-curricular activities and increased energy levels and productivity. A widely cited study found that increased participation in physical activities reduces absenteeism by an average 2.1 days off per annum. Meanwhile, other studies demonstrate that our ‘mental firepower’ is directly linked to participation in exercise activities.

Improved Early Child Development Usage of sports facilities has strong effects on children’s cognitive and non-cognitive development with evidence supporting that engagement in sport leads to better physical and emotional health outcomes for children.

2.4.2 Expected benefits of the new aquatic leisure centre

The academic literature suggests that the benefits of sport and recreation outlined above will be delivered by the specific swimming and fitness facilities provided by the new aquatic leisure centre. For example, previous research conducted by Victoria University regarding the behaviour of users of Victorian aquatic leisure centres used a Likert scale (Strongly disagree (1) to Strongly agree (5)) to measure how the presence or supply of aquatic facilities was perceived by community members to:

• increase social interaction and community connection;

• enable the maintenance of health and vitality;

• result in less absenteeism; and

• improve productivity levels at work (Table 2-7).

Table 2-7: Estimated economic and social benefits of users of Victorian aquatic leisure centres

Economic and social benefits Mean Mode Standard deviation

I feel like part of my local community by participating at this centre 3.45 4 0.955

I have made friends through my participation at this centre 3.28 4 1.112

My participation at this centre helps me to remain healthy 4.29 5 0.778

My participation at this centre helps me to have less sick days 3.67 4 0.996

My participation at this centre helps me to be more productive in work / life 3.94 4 0.911

If I could not come to this centre I would not participate in as much physical activity 3.26 4 1.371

Source: Victoria University, Community Benefits of Victorian Aquatic and Recreation Centre, April 2014.

Note: Based on Likert scale of Strongly disagree (1) to Strongly agree (5).

2.4.3 Broader community benefits of the new aquatic leisure centre In addition the social and health benefits of sports and recreation participation, the new aquatic leisure centre has the potential to also provide a wide range of community benefits to Parramatta and NSW more broadly. These community benefits include:

• Stimulating the local economy by providing employment opportunities during the construction and operational phases. In particular, the new aquatic leisure centre will provide opportunities for members of the local community who were previously employed by the PWMSC.

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• Underpinning economic development by providing vital social infrastructure that will address a community need for aquatic leisure services and in turn help to achieve sustainable population and economic growth by attracting residents, visitors, workers and students to the municipality.

• Lowering public health costs by offering access to a comprehensive range of aquatic leisure services that will provide community members the opportunity to adopt healthy and active lifestyles which will in turn help to improve physical fitness, lower obesity levels, and reduce health costs.

2.5 Stakeholder engagement There are a number of stakeholders associated with the development of the new aquatic leisure centre including key user groups, highly interested interest groups, state sporting organisations, government bodies and the broader community of Parramatta and surrounds.

Through 2017, the City has engaged stakeholders and the broader community to inform planning for the new aquatic leisure centre. Those key actions have included:

• working with Parramatta Park Trust under the auspices of the 2016 MoU to develop feasibility options and a master plan for the Mays Hill Precinct, to identify a preferred location and design principles for the new aquatic leisure centre for its continued design and development. The Trust completed extensive consultation with the community on the master plan, including on preferred location for the new aquatic leisure centre;

• a comprehensive initial community and stakeholder consultation program (Jan to May 2017) to inform priorities for facilities to be included in the new centre, including:

o surveying of community representative segments and users of the previous aquatic leisure centre, including on-line survey, focus groups, intercept surveys, phone survey, and targeted activities with youth and non-English speaking background (NESB) groups;

o Stakeholder briefings with key user groups (including Parramatta Memorial Swimming Club and Parramatta Water Polo Club), schools, NSW Department of Education, Catholic Education Parramatta Diocese, and state sporting agencies (including Swimming NSW, Water Polo NSW, NSW Institute of Sport and Basketball NSW); and

o Stakeholder workshop with a selection of former customers, interested community members, local members, representatives of key user groups and highly interested community organisations

• Informing the community and affected user groups and customers of alternative and interim swimming arrangements and of the progress of planning and delivering the new aquatic leisure centre through website content, social media, letter box drops, regular e-newsletters to subscribed distribution list, communications through other council and local media channels.

In the development of this Final Business Case, the City implemented a detailed stakeholder engagement strategy for the broader Project and prepared the Stakeholder Engagement and Communications Plan - November 2017, at Appendix B.

In November 2017, further consultation was initiated in accordance with the strategy to test facilities being considered in the business case concept designs were aligned with initial consultation results and priorities should more or less funding be available.

The findings from the consultations underpin the projections of future demand levels and informed the design concepts for the six options considered. In particular, the consultation confirmed that the concept of a contemporary facility would be broadly welcomed and that the community believes it needs recreation offerings that support the current and future Parramatta, one they see as a growing, modern, and significant place.

Subsequent to confirmation of funding and project program, Council will in 2018 continue to consult stakeholders and the community on the centre’s design and future services and business plan for the new centre through consultation and notices related to planning approvals and updates on the progress of the project.

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2.5.1 Conclusions and key findings from the consultation process

A variety of consultation activities were incorporated to ensure that Council heard from a diverse range of people and views:

A wide range of views were expressed as to the type and scale of aquatic leisure centre that participants would like to see developed in Parramatta and the range of services and facilities that should be included. In summary, however, the consultation confirmed that the concept of a contemporary facility would be broadly welcomed and that the community believes it needs recreation offerings that support the current and future Parramatta, one they see as a growing, modern, and significant place.

The majority of the community and stakeholders who participated supported:

• A modern facility capable of meeting the needs of a rapidly growing local population.

• Affordability – somewhere you can go for a quick workout or a family can spend the whole day without breaking the budget. Some services could be user-paid.

• A combination of outdoor and indoor pools – offering year round opportunities whilst keeping the amenity benefits of a pool in a park.

• Complementary recreational facilities and services but the starting focus must be aquatics.

• Inclusivity – access for people of all physical capabilities and aquatics facilities suited to both very competent swimmers and those who are learning.

• Future proofing - with a rapidly growing population the pool should be designed for appropriate capacity and/or expansion.

• Good accessibility – by car, public transport and walking.

• Being uniquely Parramatta – sympathetic with the natural landscape and reflecting the cultural and heritage values of the site.

• Contemporary facilities – including comfortable and modern change rooms, hot showers, and good, affordable food and beverage options.

There were varying viewpoints expressed on the importance of some facilities and features such as diving, regional level facilities/destination, water slides, gymnasiums and other dry spaces. Different parts of the community rated these elements differently for a number of reasons, including what was most important to them and/or their family given their interests and current use. This will be further tested through the feasibility study and subsequent community consultation.

The consultation process also indicated that there is likely to be considerable demand for the new aquatic leisure facility from children (and adults) enrolled in learn to swim programs (Table 2-8). In particular: Swimming NSW noted that:

• The Learn To Swim market in the Western suburbs of Sydney is significant.

– For example, consultation with Swimming NSW highlighted that Sydney Olympic Park Aquatic leisure centre (SOPAC) has approximately 5,000 enrolments in learn to swim programs and is at capacity.

• Depending on facility design, a new facility in Parramatta could result in a swim school program with up to 5 000 enrolments.

• There is significant demand by schools for the usage of local government facilities for school competitions and that any design concept for the new facility should consider the ability to accommodate appropriate spectator numbers.

The second phase consultation in November 2017 corroborated the community and stakeholder views previously and illustrated the diversity of needs, preferences and opinions.

The key findings of the consultation were that:

• Stakeholders and the community in general supported the proposed mix of facilities

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• Indoor and outdoor pools were important to current and future users – and a combination of both was necessary to meet the diverse needs of the community

• Should sufficient budget not be available that the key facilities the community said were a lower priority in the on-line survey were Fitness Centre, Wellness offerings, club room for the swimming and water polo clubs, and community meeting/programming room. However:

• The community meeting/programming room was a highly useable space to many stakeholders such as clubs, schools, community groups, and programs like council’s Senior Leisure Learning program.

• Wellness offerings such as spa/sauna, warmer water pools were supported by those supportive of a modern, comprehensive offering and for people with disabilities and health problems as well as active aging demographic. Such facilities could be offered at an additional charge.

• The swimming and water polo clubs have had a meeting/administrative space within the old PWMSC and it would be essential to their operation in the new centre.

• Making the centre outdoor only (i.e. no indoor pools) was not supported as an option if insufficient funds were available.

• Should sufficient budget be available, then additional outdoor and leisure offerings were most highly desired – such as an outdoor leisure/family pool and youth/family oriented leisure offerings like water slides and/or wave pool. Slides and outdoor leisure/family pool were part of the facility mix within the former PWMSC.

• Consistent were comments on:

• The new centre should provide capacity for the future community

• That all the key elements of the former pool should be at minimum provided for within the new centre

• That Council and the NSW Government need to get on with it and deliver the new centre as soon as possible

• That the NSW Government should provide additional funds to achieve at least facilities included in the former pool

• It should be modern, affordable and accessible

• Concern about security of tenure on non-Council land and to avoid a future scenario which would allow the new pool to be lost

• Potential need for additional car parking capacity and improved public transport access

• There was some level of support for diving (not planned for within the new centre) in recognition that there were few facilities of this type in the region (beyond Sydney Olympic Park) and the former pool provided it (though evidenced low usage). Only a small proportion of those showing support for diving facilities would be future users.

• The inclusion of water polo within the multipurpose 50m outdoor pool will work but needed to meet minimum metropolitan competition standards for training and adult competition to meet the needs of the local club. A boom to separate areas and modify the pool area for shared use or wider pool would likely be necessary.

• The Water Polo club would prefer a mix of facilities that allowed the facility to continue to host regional competitions (as the former PWMSC did) which require state/national level specifications and ideally with access to a second or dual water polo pool configuration.

• There is recognition of need for indoor recreation facilities (i.e. indoor multipurpose courts) in and near the CBD, however it is not essential that they are co-located with the aquatic leisure centre. Focus of input, particularly when it came to prioritising, was on aquatic facilities given the loss of the former PWMSC.

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Table 2-8: Outcomes of the stakeholder consultation undertaken to inform the design of the new aquatic leisure centre

Stakeholder Potential issues, opportunities, and engagement method Consultation outcomes

Cumberland Council

Cumberland Council neighbours the City of Parramatta Council and has a number of residents in close proximity to the Mays Hill Precinct. The presence of the new aquatic leisure centre may have implications for the management of community facility provisions across the two municipalities. The City conducted an interview with the Cumberland Council on 13 April.

Cumberland Council noted during its interview with the City that:

• community consultation and further work regarding the new aquatic leisure centre is on hold pending new council coming in and stronger understanding of what the City is planning;

• it is conscious of the proximity of the potential location to the local government boundary; and

• it will formally respond when the Council has developed a concept option and plans.

Basketball NSW

Basketball NSW (BNSW) is the state governing body of basketball for the state. BNSW in partnership with our over 80 member associations around the state, key stakeholders such the Sydney Kings, Wollongong Hawkes and Sydney Uni Flames and with the national body Basketball Australia, administer a number of programs and competitions that encourage members from all ages to participate in our game. BNSW could potentially hold a range of events and competitions at the new aquatic leisure centre.

BNSW provided a written response to the City’s request for consultation.

BNSW noted in its letter to the City that:

• To adequately cover the needs for a region such as Parramatta City Council, a regional facility of six to 10 courts is required with a number of smaller four-court venues. Mays Hill Precinct would be an ideal site for either a regional facility but if the site does not suit that size venue, a four-court venue would be suitable and BNSW would strongly support this.

• BNSW had an interest in applying for the management rights for a facility at Mays Hill and any others planned for the region. BNSW would also be willing to work with the Council in securing some level of funding for such a facility.

Parramatta War Memorial Swimming Club

The City conducted a stakeholder consultation interview with Parramatta Memorial Swimming Club Incorporated in January 2017 and March 2017. The Club used to utilise the PWMSC and could be an active and ongoing user of the new aquatic leisure centre.

The Parramatta Memorial Swimming Club noted that the following elements would be desirable in any new facility development:

• access to an indoor pool for winter usage, additional lane space access at peak periods, starting blocks, appropriate spectator seating, a 70m2 clubhouse, storage, meeting room access, program pool access for water safety training and appropriate centre car parking provision.

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Water Polo NSW

The City conducted an interview with David Whittaker, the Chief Executive Officer (CEO) of Water Polo NSW on Wednesday 26 April. Parramatta Water Polo Club provides opportunities for participants from Auburn to Blue Mountains to participate in water polo matches and competitions. The new aquatic leisure centre could be a potential facility used by the Water Polo NSW to hold the events and competitions held across the year.

Water Polo NSW advised the City during the interview that:

• There are opportunities to grow participation as Parramatta is transitioning into a densely populated inner city urban environment with residents, workers and students;

• Water Polo NSW has/is developing strategies to grow the sport, particularly areas such as Parramatta and Western Sydney, by developing resources to assist local clubs grow, the formation of new clubs, the expansion of junior programs and greater penetration to CALD and female players;

• Water Polo can potentially be flexible in how it is incorporated into a new facility as long as minimum base level facilities are provided. Pool access is the major issue for water polo, given the need to compete with other users for pool space. Pricing is also a key issue and the willingness to pay level is around $75 - $100 per hour for pool hire costs and an affordable entry fee per participant. While the recently developed Auburn Ruth Everuss Aquatic leisure centre has suitable water polo facilities, the current rate of $200 per hour plus $8 entry is prohibitive.

Parramatta Water Polo Club

The City conducted a stakeholder consultation interview with Parramatta Water Polo Club in March 2017. The Club has approximately 35 senior male members and 30 junior members, and given that the Club previously used the PWMSC, it could be an active and ongoing user of the new aquatic leisure centre.

The Parramatta Water Polo Club indicated that it has the following preferences and requirements in relation to a training facility:

• Training was conducted at the PWMSC on Mondays from 5pm to 6.30pm (juniors), Thursdays from 6 to 7.30pm and Sundays from 7.30am to 9am.

• The state body fixtured competitions and these were conducted on Tuesday evenings and Sunday afternoons. To conduct training the club requires access to water depth of 2 metres while a pool with dimensions of 30 metres by 20 metres is ideally used for the conduct of competitions.

• Adequate storage is also required for equipment and lights are required for night-time training / competitions.

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Swimming NSW The City conducted an interview with Mark Heathcote CEO Swimming NSW

on April 20 2017.

Swimming NSW are the peak state sporting organisation and manage competition and talent pathway for the sport and have the capacity to:

• represent interests of the displaced Parramatta Memorial Swimming Club;

• promote swimming friendly new facility; and

• promote facility suitable for competition and participation outcomes,

Swimming NSW indicated that they would like to see a higher level facility capable of putting pressure on SOPAC for events, training etc. as well as provide for growing Western Sydney market.

Swimming NSW also provided an overview of the competitive swimming environment and the key points raised are outlined below:

• The learn-to-swim market in the Western suburbs is significant and as an example SOPAC has approximately 5,000 enrolments and is at capacity. Swimming NSW believe that the right facility design in Parramatta could result in a swim school program with up to 5,000 enrolments;

• There is significant demand by schools for the usage of local government facilities for school competitions hence any design should consider the ability to accommodate appropriate spectator numbers (preferably to state level provision standard of 2,500 for non-school events also). An indoor venue suitable for competitions would also be desirable and this would also require a suitable design for competitions (e.g. seating, pool depths etc.).

NSW Institute of Sport

The City conducted an interview with Daniel Blattman (Senior Sport Consultant, NSWIS) on April 20 2017.

NSWIS has been a user of PWMSC for a number of years – mainly January to April as a second venue to SOPAC at Homebush and their own facilities when they not available – and have swimming, water polo and diving programs. The NSWIS currently use SOPAC as main base for 2 hours in morning and afternoons daily, though struggle to achieve extra space allocation, and also occasionally use the Drummoyne and Cabarita aquatic leisure centres. As a result, the NSWIS could be an active and prominent user of the new aquatic leisure centre.

NSWIS indicated that it has the following preferences and requirements in relation to a training facility:

• Training long course space focus (over short course training which is less of a priority and done seasonally only);

• Prefer indoor 50m facilities for this training – 12 months of the year - also prefer location not far from Homebush training base (where their gym and other facilities are also) for satellite facilities in use by them – Parramatta is excellent proximity and access;

• Ancillary facilities they might need/use include: gym, dry spaces - divers in particular use dry space for training;

• Diving (by NSWIS) requires 1 to 10m platforms on tower; indoor is preferred; heated pool (PWMSC was not); could be used for water polo etc.

NSWIS indicated that if facilities were built for them and access agreed, they could potentially consider a relocation to facility as main base and that they could potentially co-invest with things like under-water-cameras for training.

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They noted that some centres use these for general public and fun things additional to high performance use.

Community members and existing users of the

PWMSC

The City commissioned Newgate consulting to conduct a community stakeholder engagement process regarding the preferences and needs of the local community for a new aquatic leisure centre. A series of workshops and online surveys were conducted during April and May 2017.

Newgate found that the majority of the community and stakeholders who participated in the consultation supported the following:

• A modern affordable facility capable of meeting the needs of a rapidly growing local population – somewhere to go for a quick workout or a family can spend the whole day without breaking the budget whilst some services should be paid for by the user;

• Combination of outdoor and indoor pools – offering year round opportunities whilst keeping the amenity benefits of a pool in a park – and complementary recreational facilities and services but the starting focus must be aquatics;

• Inclusive – access for people of all physical capabilities and aquatic facilities suited to both very competent swimmers and those who are learning;

• With a rapidly growing population the pool should be designed for appropriate capacity and/or expansion and include good accessibility – by car, public transport and walking;

• Uniquely Parramatta – sympathetic with the natural landscape and reflecting the cultural and heritage values of the site with contemporary facilities – including comfortable and modern change rooms, hot showers and good, affordable food and beverage options.

The preference was for a modern aquatic leisure centre with features such as multiple pools, indoors and outdoors (heated) that primarily catered for recreational swimming; lap swimming; learn to swim programming, school carnivals, aquatic sports competition and training, water play opportunities for children and young people.

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Parramatta Park Trust

The City has conducted extensive stakeholder consultation with the Parramatta Park Trust over the course of the previous 12 months that has included: fortnightly working group meetings, MoU covering the development of the master plan, a new MoU covering delivery of the new centre under development, collaboration on the development of the master plan (including Land Use Planning, Urban Design, Aquatic Design sub-consultant expertise supplied by Council and Council completing the initial site suitability study which formed stage one of the master plan inputs).

As the land owner of the project site, the City needs to reach agreement with Parramatta Park Trust regarding a number of leasing and design issues.

Consultation with Parramatta Park Trust is ongoing and has led to the development of series of Site Design Principles (detailed below) that informed the design concepts developed for the various options.

Parramatta Park Trust has completed the Mays Hill Precinct master plan on the basis of these consultations, comprehensive community consultation, the initial site suitability study and subsequent technical studies. The master plan identifies a preferred site for the new aquatic leisure centre.

Source: Information provided by various stakeholders during the City’s community consultation process.

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3 Analysis of the proposal The objective of the Final Business Case is to inform the selection of a project option for the development of the new aquatic leisure centre in the Mays Hill Precinct, Parramatta. The following section outlines the potential range of options considered to address the service need and the key costs and benefits of each. A comprehensive evaluation of the options has been undertaken, including close consideration of the following:

• the ability of the project options to capture the project objectives and opportunities;

• the analysis of visitor demand for each site;

• the analysis of the financial costs (capital, operating and maintenance) and potential revenue;

• the analysis of the economic implications of the new facility including health and social benefits;

• the risks associated with each site option; and

• the legislative considerations.

3.1 Objectives range of objective for the new aquatic leisure centre were established to help inform the design concept and implementation plan as well as enable the monitoring and measurement of the performance of the facility. The direct objectives of the new aquatic leisure centre and rationale for each are outlined in Table 3-1.

Each of the objectives of the new aquatic leisure centre have been developed in consideration of:

• the key drivers of the service need;

• the priority of the service need;

• the community needs expressed through the stakeholder consultation; and

• the potential benefits identified with the new aquatic leisure centre.

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Table 3-1: Objectives of the service need

Objectives of the new aquatic centre Rationale

Delivering a fit-for-purpose, integrated, aquatic leisure offering for the local community

Objective reflects: • the preference expressed through the community consultation for a modern aquatic leisure centre with

features such as multiple pools, indoors and outdoors (heated) that primarily catered for recreational swimming; lap swimming and learn to swim programming.

• the priority of the service need to address a range of health related policy and strategy items.

Ensure that the provision of aquatic leisure facilities is aligned with the needs of the current and future population

Objective reflects: • the need to replace the previous PWMSC and ensure that the provision of aquatic leisure facilities is

consistent with the evolution of the City’s population. • the priority of the service need to address a range of policy and strategy items related to reducing

obesity in the City and across the State more broadly.

Expand and improve on the social infrastructure network within Parramatta to attract future residents and underpin future economic development

Objective reflects the need to underpin and support the strong growth in the residential population planned for the City over the coming decades with social infrastructure provision.

Improve the health and wellbeing levels of the local community, improve quality of lives and reduce future demands on the health care system

Objective reflects: • the health and fitness benefits that the academic literature has identified as being associated with

sports and recreational activities and, more specifically, the swimming and fitness exercises that will be facilitated by the new aquatic leisure centre.

• the priority of the service need to address a range of health related policy and strategy items

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Objectives of the new aquatic centre Rationale

Provide a community hub which is inclusive and provides social and leisure opportunities for all age groups and capabilities, in particular promote water safety skills and confidence and healthy active lifestyles

Objective reflects: • the social and community benefits that the academic literature has identified as being associated with

sports and recreational activities and, more specifically, the swimming and fitness exercises that will be facilitated by the new aquatic leisure centre.

• the priority of the service need to address a range of policy and strategy items related to social inclusion and community cohesion.

Act as the catalyst for the completion of the Mays Hill Precinct master plan which will provide enhanced open space and recreation opportunities for the community

Objective reflects the community benefits identified with the new aquatic leisure centre to providing vital social infrastructure that will address a community need for aquatic leisure services and in turn help to achieve the current population and economic growth targets by attracting residents, visitors, workers and students to the municipality.

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3.2 Approach to developing the project options A structured approach to developing designs for the new facility was adopted that focussed on ensuring the facility would meet the objectives highlighted above, address the service need and were consistent with a series of design principles, namely:

• universal design principles;

• design principles obtained developed through community consultation;

• design principles developed through understanding of industry best practice and operational sustainability; and

• design principles developed through consultation with Parramatta Park Trust.

The following sections below outline these design principles where they are relevant for the development of the new aquatic leisure centre.

3.2.1 Universal design principles

The range of facilities offered by the designs considered that the facility will be visited by a broad range of people of different ages, swimming capability, and background. This will include, for example, young children that are enrolled in learn to swim programs. The design of the new aquatic leisure centre will therefore need to explicitly consider the needs and capabilities of a broad range of user groups. The universal design principles, developed by the Centre for Universal Design, were developed to provide a framework for architects and designers to ensure that buildings and structures are usable by all people, to the greatest extent possible, without the need for adaptation or specialized design. These principles are shown below in Table 3-2 and, as discussed further below, have underpinned the design of the new aquatic leisure centre.

It should also be noted that changes to government legislation with regard to disability access means that modern facilities now require ramp access into all pools, hoists and accessible toilets and change facilities. For example, indoor heated pools are now more widely used by disability groups and individuals, while there are a growing range of programs and activities offered to people of different abilities and physical condition.

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Table 3-2: Universal design principles that informed the design of the facility

Principle Definition Guidelines

Equitable Use The design is useful and marketable to people with diverse abilities.

• Provide the same means of use for all users: identical whenever possible; equivalent when not.

• Avoid segregating or stigmatizing any users.

• Provisions for privacy, security, and safety should be equally available to all users.

• Make the design appealing to all users.

Flexibility in Use The design accommodates a wide range of individual preferences and abilities.

• Provide choice in methods of use.

• Accommodate right- or left-handed access and use.

• Facilitate the user's accuracy and precision.

• Provide adaptability to the user's pace.

Simple and Intuitive Use

Use of the design is easy to understand, regardless of the user's experience, knowledge, language skills, or current concentration level.

• Eliminate unnecessary complexity.

• Be consistent with user expectations and intuition.

• Accommodate a wide range of literacy and language skills.

• Arrange information consistent with its importance.

• Provide effective prompting and feedback during and after task completion.

Perceptible Information

The design communicates necessary information effectively to the user, regardless of ambient conditions or the user's sensory abilities.

• Use different modes (pictorial, verbal, tactile) for improving on redundant presentation of essential information.

• Provide adequate contrast between essential information and its surroundings.

• Maximize "legibility" of essential information.

• Differentiate elements in ways that can be described (i.e., make it easy to give instructions or directions).

• Provide compatibility with a variety of techniques or devices used by people with sensory limitations.

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Principle Definition Guidelines

Tolerance for Error

The design minimizes hazards and the adverse consequences of accidental or unintended actions.

• Arrange elements to minimize hazards and errors: most used elements, most accessible; hazardous elements eliminated, isolated, or shielded.

• Provide warnings of hazards and errors.

• Provide fail safe features.

• Discourage unconscious action in tasks that require vigilance.

Low Physical Effort

The design can be used efficiently and comfortably and with a minimum of fatigue.

• Allow user to maintain a neutral body position.

• Use reasonable operating forces.

• Minimize repetitive actions.

• Minimize sustained physical effort.

Size and Space for Approach and Use

Appropriate size and space is provided for approach, reach, manipulation, and use regardless of user's body size, posture, or mobility.

• Provide a clear line of sight to important elements for any seated or standing user.

• Make reach to all components comfortable for any seated or standing user.

• Accommodate variations in hand and grip size.

• Provide adequate space for the use of assistive devices or personal assistance.

Source: NC State University, The Centre for Universal Design, 1997

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3.2.2 Stakeholder consultations and guiding principles

A series of promotional activities were conducted by the City to ensure that the local community was well informed of the stakeholder consultation process and the range of opportunities available to have their say (Table 3-3).

Table 3-3: Promotion activites to raise awareness of the stakeholder consultaiton process

Activity Outreach

Postcard on the consultation Mail box drop to 23,000 households in Parramatta, North Parramatta, Westmead and parts of Mays Hill, Holroyd and Oatlands

Parramatta Council webpage Web page specific to the aquatic leisure centre planning (over 500 views for April, May 2017)

Email communications

Updates and communications to:

• 506 swimming pool members • 1500 learn to swim customers • 175 registered for pool updates

Media releases Advertised online survey and project updates

Social Media To 7,582 Twitter followers and 22,786 Facebook followers

Council newsletter (Parramatta Pulse) 82,000 households – project update and online survey

Our City Your Say panel 7,000 members received information on the online survey

Source: Information provided by the City

A variety of consultation activities were incorporated to ensure that Council heard from a diverse range of people and views was undertaken between February and May 2017 (Table 3-4).

Table 3-4: Stakeholder consultation for the new aquatic leisure centre

Activity Participation More about this tool

2015 Market Research 806 completed phone surveys

Research was representative of Parramatta LGA prior to 2016 amalgamations. Extensive survey on future aquatics and indoor recreation preferences, needs and behaviours

Stakeholder briefings 15 stakeholder interviews

One on one interviews, detailed assessment of stakeholder interests and needs

Focus Groups 3 groups (26 participants)

Recruited people who had used a public pool twice in the last 12 months, were aware of Parramatta Pool and represented different age groups, cultures, and socio-economic levels

Online survey 1,845 completed surveys

10-minute survey, open to the public, widely distributed through social media, Our City Your Say panel, website, postcard drop and other channels. Outreach to groups from non-English speaking backgrounds

Intercept surveys 158 completed surveys

Held at five locations: Centenary Square, Parramatta War Memorial Swimming Pool, Entrada Centre North Parramatta, Wentworthville Shopping Centre, United Indian Association Event

Youth Summit 60 young people in attendance

Involved a presentation, youth focused interviews and vox pops

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Activity Participation More about this tool

Stakeholder workshop 40 participants

From a mixture of pool user groups, community representatives, local parliamentary members and representatives from education, tertiary and local businesses

Pool interviews 40 participants Spoke to pool customers about their favourite memories of Parramatta War Memorial Swimming Pool and what they would like in the new centre

Direct submissions to Council 58 letters and emails

Direct submissions voicing ideas, views, concerns related to the closure of the Parramatta War Memorial Swimming Pool, the development of a new aquatic leisure centre and importance of aquatic facilities

Source: Information provided by the City

Second phase community consultation was undertaken in November 2017 to test if the facility mix under consideration within the business case concept designs were in-line with feedback provided in initial community consultation. It considered what facilities might not be delivered should the available budget be insufficient and/or what additional facilities could be delivered if further funding was identified.

A wide range of views were expressed as to the type and scale of aquatic leisure centre that participants would like to see developed in Parramatta and the range of services and facilities that should be included. In summary, however, the consultation confirmed that the concept of a contemporary facility would be broadly welcomed and that the community believes it needs recreation offerings that support the current and future Parramatta, one they see as a growing, modern, and significant place.

The majority of the community and stakeholders who participated supported:

• A modern facility capable of meeting the needs of a rapidly growing local population.

• Affordability – somewhere you can go for a quick workout or a family can spend the whole day without breaking the budget. Some services could be user-paid.

• A combination of outdoor and indoor pools – offering year round opportunities whilst keeping the amenity benefits of a pool in a park.

• Complementary recreational facilities and services but the starting focus must be aquatics.

• Inclusivity – access for people of all physical capabilities and aquatics facilities suited to both very competent swimmers and those who are learning.

• Future proofing - with a rapidly growing population the pool should be designed for appropriate capacity and/or expansion.

• Good accessibility – by car, public transport and walking.

• Being uniquely Parramatta – sympathetic with the natural landscape and reflecting the cultural and heritage values of the site.

• Contemporary facilities – including comfortable and modern change rooms, hot showers, and good, affordable food and beverage options.

There were varying viewpoints expressed on the importance of some facilities and features such as diving, regional level facilities/destination, water slides, gymnasiums and other dry spaces. Different parts of the community rated these elements differently for a number of reasons, including what was most important to them and/or their family given their interests and current use. This will be further tested through the feasibility study and subsequent community consultation.

The interplay between the concepts became clear during community discussions. The preference was for a modern aquatic leisure centre with features such as multiple pools, indoors and outdoors (heated) that primarily catered for:

• Recreational swimming.

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• Lap swimming.

• Learn to swim programming.

• School carnivals.

• Aquatic sports like water polo competition and training, programming like aqua aerobics.

• Water play opportunities for children and young people.

In the online survey that was developed by the City in March 2017, one of the questions asked community members:

If we had a more limited budget to spend on a new facility, what would your top 5 essentials be for you?

Figure 3-1 below illustrates that the four most essential elements reported by the largest number of community members included (i) an outdoor pool; (ii) hot showers; (iii) indoor pool; and (iv) high quality change rooms. These guiding principles were especially relevant for informing the design of the reduced scope options (i.e. Option 1a, 1b, 1c and Option 1d). A broad range aquatic facilities and ancillary services such as change rooms and lockers, through to a gymnasium / fitness class was considered the most important facility for the local community.

Figure 3-1: Essential elements of the new aquatic leisure centre

Source: Newgate, Community Consultation Report, 2017

The results from the November 2017 consultations generally corroborated the above.

3.2.3 Design principles developed through understanding best practice and operational sustainability

The following design principles were developed by the City through its understanding of best practice and operational sustainability:

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• To ensure a mix of facility components and design layout which provides optimal mix of operational and facility performance;

• Flexible programming;

• Incorporation of features which add or enhance revenue (to subsidise loss making services and spaces);

• Functional accessibility around the centre;

• Adoption of best practice technology and systems; and

• Ensure the flow of facilities to be customer focussed/oriented for convenience and optimal experience.

Developing from this, the designs considered specific factors in the context of Design Excellence, such as heritage, Ecologically Sustainable Design, options for the roof structure as a prominent visual element with critical functional importance for year round use, and car parking, as below:

3.2.3.1 Design Excellence

The new Parramatta Aquatic Centre will need to be assessed to ensure it meets the requirements for “design excellence”. In NSW, this is now defined in the Integrated Design Policy for the Built environment of NSW published by the NSW Government Architect’s Office in their document “Better Placed” and enshrined in legislation through statutory planning documents. The document outlines the stages of good design process, provides objectives for good design outcomes and stipulates mechanisms for assessing designs. Good design outcomes for NSW are defined within 7 distinct objectives that are to be used in evaluating projects (Table 3-5):

Table 3-5: Design objectives

Criteria Description Design Consideration

Better Fit

Contextual, local and of its place. Good design in the built environment is informed by and derived from its location, context and social setting. It is place-based and relevant to and resonant with local character, heritage and communal aspirations. It also contributes to evolving and future character and setting.

The “Pavilion in the Park” design principal respects a heritage of park structures. By maintaining prescribed views for park users and offering centre users the opportunity to enjoy the same views, the local context and relationship with Parramatta is retained.

Better Performance

Sustainable, adaptable and durable. Environmental sustainability and responsiveness is essential to meet the highest performance standards for living and working. Sustainability is no longer an optional extra, but a fundamental aspect of functional, whole of life design.

Sustainability is achieved through three main factors: social, economic and environmental.

Design excellence combines these factors with aesthetic values to produce a meaningful and functional design outcome. The design motto long life, low energy, loose fit is applied throughout the design process.

Better for community

Inclusive, connected and diverse. The design of the built environment must seek to address growing economic and social disparity and inequality, by creating inclusive, welcoming and equitable environments. Incorporating diverse uses, housing types and economic frameworks will support engaging places and resilient communities.

The centre has been designed to appeal to as wide a user base as possible, through a variety of different programme pools and other facilities, such as spa and sauna, and the gym while universal access requirements have been designed into the centre.

Better for people

Safe, comfortable and liveable. The built environment must be designed for people with a focus on safety, comfort and the basic

The layout of the centre has been workshopped with both operators and consultants to ensure a safe and healthy environment. The heated pools,

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requirement of using public space. The many aspects of human comfort which affect the usability of place must be addressed to support good places for people.

air-conditioned pool hall are supplemented by natural lighting will create a comfortable space for all ages.

Better working

Functional, efficient and fit for purpose. Having a considered, tailored response to the program or requirements of a building or place, allows for efficiency and usability with the potential to adapt to change. Buildings and spaces which work well for their proposed use will remain valuable and well-utilised.

Many options have been considered in order to create an aquatic centre that is tailored to the needs of the people of Parramatta while giving the maximum opportunity to change or add additional programme in order to give the centre a long life and ensure it is well utilised.

Better value

Creating and adding value. Good design generates ongoing value for people and communities and minimises costs over time. Creating shared value of place in the built environment raises standards and quality of life for users, as well as adding return on investment for industry.

Through a process of design iterations in conjunction with costings, the outcome represents the best value available to the City of Parramatta, both in terms of build costs and future operating expense.

Better look and feel

Engaging, inviting and attractive. The built environment should be welcoming and aesthetically pleasing, encouraging communities to use and enjoy local places. The feel of a place, and how we use and relate to our environments is dependent upon the aesthetic quality of our places, spaces and buildings. The visual environment should contribute to its surroundings and promote positive engagement.

The Parramatta Aquatic Centre design creates a unique space for the people of Parramatta. The clean and simple lines of the “podium” contribute to a contemporary feel while the views from the centre to Parramatta CBD and distant hills is unlike any in Sydney. The “Pavilion in the Park” concept assists in activating the park, attracting people to the area,

3.2.3.2 Heritage

Parramatta Parklands has strong cultural and heritage links to the history of the City of Parramatta. It is protected by local, state and national statues.

The subject site is located within the Mays Hill Precinct which falls outside the boundaries of the World Heritage Area and the National listings for Old Government House and the Government Domain. The Mays Hill Precinct is physically separated from the primary Parramatta Parklands by the railway line and Park Parade.

Since 1902, Mays Hill has been used as a recreational park, specifically as a golf course. Undertaken by Carnegie Clark, the course was designed to utilise the existing natural topography to avoid major earthworks that would have a long term detrimental impact upon the landscape. Recently, golfing activities have ceased to operate on this site and, through detailed consultation with Parramatta Park Trust, it became the preferred location for the new Parramatta Aquatic Centre. The preferred site is to the north of the existing Jubilee Avenue, and to the south of Park Parade. The final site selection was contained within a 2Ha area.

Due recognition of its unique relationship to the Parklands has been considered in the design of the Aquatic Centre.

The impacts of the new facility have been minimised by approaching the design as a Pavilion in the Park. The building comprises a low platform running parallel with the existing contours which allows the building to sit onto the landscape rather than into the landscape, thus avoiding long term and permanent changes to the natural topography.

Key sightlines from the ridgeline to the hills beyond (defined in the Parramatta DCP) have been maintained, and the future built form has remained lower that the ridgeline of Governors Avenue. The main pool hall is located towards the north-west, away from the DCP sightline, allowing uninterrupted views northward over Parramatta Park toward the hills district at the horizon line.

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The building is set back from the main road frontage, allowing the park to provide a visual buffer from the public domain, concealing the building behind a screen of landscaping and planting elements. It is an appropriate and low impact solution within a sensitive landscape, designed to limit the long-term impacts of the natural landforms and topography.

3.2.3.3 Ecologically Sustainable Design

Sustainability is achieved through three main factors: social, economic and environmental. Design excellence combines these factors with aesthetic values to produce a meaningful and functional design outcome. The design motto long life, low energy, loose fit is applied throughout the design process.

Social sustainability - The Aquatic Centre provides a community focused venue that improves the quality of life for residents, with health facilities that cater for all ages and needs.

Economic sustainability - The Aquatic Centre is built-to last. Low-maintenance and durable materials are used, such as timber and concrete.

Environmental sustainability - The Aquatic Centre uses design, careful choices of materials and systems to conserve resources and minimise its footprint on the environment. Physically, it sits lightly on the ground, limiting footprint and impact on the park, minimising excavation and offering flexibility for future land use. Natural materials such as timber are used, with its low-embodied energy that reduces the building’s carbon footprint.

Pre-fabricated steel Myrtha pools require little on-site work, allowing the construction process to be faster and impose less physical impact on the park than traditional concrete pools. This system also has a much greater design life than traditional reinforced concrete pools.

• The polycarbonate roof allows maximum natural light into the pool hall, conserving energy used by artificial lighting.

• Rainwater is captured and reused on site.

• Salt water system is used in the pools instead of chlorine, to reduce the toxicity in the pool environment.

• There is natural ventilation wherever possible to lower mechanical input.

3.2.3.4 Roof

Roofing of the facility presents a significant design challenge in both technical and aesthetic terms.

The space requires a large roof (90m x 60m), with long uninterrupted spans over the pool. Technically the roof is required to provide shelter from the elements; shading the interior from the sun’s harmful UV rays and efficiently shedding rain. Internally the structure will be exposed to the pool’s harsh corrosive environment and subject to high levels of humidity.

Aesthetically, the principal challenge is to accommodate such a large structure within the park environment, in a way that complements landscape. It must create a pleasant, light, internal environment, and enhance the quality of the pool space.

Two different materials have been investigated and evaluated in terms of performance, initial / lifecycle costs, sustainability and aesthetics:

• Steel, with a profiled metal sheet roof and polycarbonate skylights (25% by area);

• Timber, with translucent polycarbonate covering;

Steel provides the cheapest initial capital cost solution. The trusses will efficiently span the required distance, and the profiled deck offers a simple, well-tested roofing option. The use of steel however presents several challenges in the pool environment. Steel also requires corrosion protection, typically a paint system, introducing an ongoing maintenance demand over the building’s lifespan.

The Timber roof structure would require a greater initial investment, but delivers a range of other benefits. Timber is well suited to the park environment, offering a softer more natural feel. It also brings a technical benefit – with high ESD credentials. Once installed, the timber can be left untreated, eliminating the needs for recoating or repainting, and thus reducing ongoing costs to the centre.

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The polycarbonate sheeting component of the system is a high-performance material, which efficiently satisfies the functional requirements. It will filter the UV and IR rays, reducing heat gains whilst reducing the risk of skin cancer to the pool users. The level of translucency can be set to maximise daylight penetration, reducing internal lighting requirements, and thus reducing operational costs.

3.2.3.5 Car Parking

The Aquatic Centre brief stipulates a requirement to accommodate parking for over 200 cars. The Parramatta Park Trust has stated a preference for car parking to be underground. However, the financial constraints of the project are prohibitive as there are significant operational and design implications of burying the car park underground.

Underground parking will require significant excavation, necessitating transportation and disposal of spoil from the site and imposing an irreversible environmental toll. The extent of concrete retaining structure would also be significant, adding to the construction duration and the extent of material consumed. There are also concerns with the impact on underground water flows which may be rerouted by such a large imposition.

Underground parking therefore represents a high-cost option with a long-term environmental impact. The alternative proposal is for Surface Parking screened by planting and vegetation. This is the lowest cost option and there are also significant environmental benefits. It represents the lowest impact solution on the site, particularly in the long-term. By minimising excavation, it would allow the area to be returned to parkland at a future date should circumstances allow.

The visual imposition is mitigated through landscaping works, including banking, planting and vegetation screening. This enables the car park to be largely screened within the parkland. Use of native species and selective planting zones enhances the quality of the parkland at the fringes, creating new wildlife habitats. Surface Parking therefore offers the lowest-cost option which will restrict harm the site in the long term.

3.2.4 Mays Hill Precinct Site and Design Principles

The Mays Hill Precinct has previously been identified as the preferred location for the development of a new aquatic leisure centre for Parramatta. As the custodian of the site, the Parramatta Park Trust has developed a precinct master plan and through community consultation, it has been identified that Zone 2 (adjacent to Park Parade) is the preferred location for an aquatic leisure centre as:

• The master plan calls for activation of the precinct, in concert with other proposed developments within zones 1,3, and 4 of the Precinct;

• the site is within close proximity to the main catchment area which is the Parramatta CBD; and

• the site has good pedestrian access to the CBD and is accessible to public transport and key service infrastructure.

The Mays Hill Precinct Master Plan also identifies design principles to inform the planning for the aquatic leisure centre (Figure 3-2).

In consultation with the Trust, comments were made in relation to the option designs, having regard to the principles. The following response is in relation to these comments.

It should be noted that the design will need to be further developed, and these issues finalised, as part of the proposed design process to be agreed under the further MoU with the Trust:

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No. Comment Response

1

Conceal the built form and fencing within landform, in keeping with the picturesque character of the Mays Hill Precinct.

The proposal is nested in the hillside, its two-storey staggered structure is revealed only on the lower side of the slope, the rest of the building is concealed by the terrain. The building runs along the terrain, to minimise excavation. The roofs sit below the ridgeline (RL41) and the main roof appears to float above the platform.

2

Use landform to contain space rather than the Aquatic Centre being a prominent large building in the Park.

The aquatic centre is merged in the landscape, with a low-lying roof hovering over the concourse. The pools sit on the ground, level with the upper concourse, while the gym and plant are contained by the solid plinth in the lower ground without much excavation, making use of the natural slope.

3

Design the entries and amenities (e.g. cafe) so that they interface with the Park.

The proposed entry to the facility faces the park in the north-east corner of the building, adjacent to the drop-off zone and bus stop along Park Parade. The café is situated on the main concourse adjacent to the arrival point and function room, serving the pool deck, with views over-looking the park and hills beyond.

4

Present an active interface to the Aquatic Centre from Park Parade.

The “Pavilion in the Park” concept allows the aquatic centre to maximise the park space by being subtly set back from the road, sitting lightly on the ground and running along the contours. If the centre was along Park Parade, the structure will appear dominant and barrier-like, and views from the concourse will be compromised by the road and railway line. The visual relationship is maintained between Park Parade and the centre by the hovering roof and trees in between.

5

Relate the Aquatic Centre entry to the Park entry and make it accessible from Jubilee Avenue.

Jubilee Avenue has entries at Amos Street at the top of the hill and Park Parade at the bottom. The proposal therefore treats Jubilee Avenue as a principal pedestrian axis with the Aquatic Centre entry as a spur at the midway point allowing pedestrians to comfortably walk across the site along a consistent contour line.

6

Locate all car parking underground and minimise above ground bus parking and drop off zones.

Several parking options have been considered: on-grade parking, partially on-grade covered parking, and fully underground parking. The underground parking will cause long-term damage to the parkland, disruption to the waterways and require considerable excavation. On-grade parking with well-considered planting is the most nature-friendly and cost-effective option, keeping in line with the “touch the ground lightly” design principle.

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Figure 3-2: Aquatic leisure centre Design Principles

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3.3 Project options The financial appraisal and cost benefit analysis of the new aquatic leisure centre that are required by Treasury guidelines to be completed as part of this Final Business Case are required to:

…compare the state of the world with the proposed project, program or policy against the state of the world without the proposal.24

This requirement necessitates that a base case is established that clearly articulates how the project site within the Mays Hills Precinct would be utilised ‘without’ the new aquatic leisure centre, and a series of project options are developed that specify the potential design concepts of the new aquatic leisure centre and any further assumptions regarding the need for enabling infrastructure such as street or pathway upgrades. These options are detailed below.

3.3.1 Project options

The City is planning a contemporary aquatic leisure centre near the Parramatta CBD that will meet the needs of the current and future community for many decades to come. On the advice that the City has received from the community, customers and key user groups, along with an assessment of industry best practice in the design and operation, national and location benchmarks, industry trends and critical drivers of aquatic leisure centre success, and market/competitor analysis, it is working to develop a centre that is consistent with the following goals:

• Maximise Accessibility and Inclusiveness: to ensure that the Centre is easy to access and from a design perspective incorporates contemporary universal design elements to meet stakeholder needs.

• Diversity and a Wide Range of Services: to develop a Centre that provides a mix of programs and services that cater for the diverse needs of the Parramatta community.

• Focus on Servicing the Local Catchment: the primary target market for the Centre is the local catchment which is projected to be in excess of 388,760 residents within a 5km radius by 2036.

• Aim to Achieve Very High Levels of Usage: to maximise community benefit, the design should facilitate a very high level of participation in leisure, recreational and sporting activities.

• Ensure Capacity for Future Growth: given the significant projected catchment population, which is one of the highest in the country, the Centre should be designed to accommodate future demand for leisure services.

• Deliver as a Priority in the Shortest Possible Time: to ensure that the project is delivered in an efficient and effective manner with the objective of providing community services as soon as practicable.

• User Affordability: to provide a range of pricing options that accommodate the diverse needs of the Parramatta community and in so doing provide excellent value for money.

• Financial Sustainability: to maximise the financial performance of the Centre from an operational perspective and reduce the overall Council subsidy per visit.

• Provision of Existing Services: to deliver a range of experiences building on those provided at the old Parramatta War Memorial Swimming Centre.

• Mays Hill Precinct Integration: refer the site design Principles outlined below.

Concept options have been developed to align with these goals, community and operational needs, as well as consideration of potential and available funding. These considerations have necessitated a contemporary aquatic leisure centre that not only replaces the facilities provided by the previous PWMSC, but expands the scope and scale of facilities in a way that provides a truly integrated service offering.

Option One is a contemporary aquatic leisure centre with indoor and outdoor aquatic components for year round use and a fitness centre. Its key components include:

24 NSW Treasury, NSW Government Guide to Cost Benefit Analysis, 2017

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– Three heated pools (two indoor and one outdoor):

– Ten lane outdoor 50m multipurpose pool with pool side seating to accommodate competition, lap swimming, school carnivals, leisure swimming; youth-based inflatable play and local level water polo training and competition

– A dedicated indoor Learn to Swim pool with adjacent all-abilities water play zone

– An indoor 25m pool for comfortable all-year round swimming, programming such as aqua aerobics and rehabilitation, and additional learn to swim program capacity

– Access ramps for the 50m and 25m pools

– A club room for swimming and water polo clubs

– Outdoor areas for relaxing and viewing aquatic activities

– Modern change rooms and amenities that are family friendly

– A fitness centre (gymnasium, cardio room and programming rooms)

– A café; and

Approximately 212 car parks

Option Two: An expanded version of option 1, Option Two offers additional facilities and capacity that improve function, flexibility and performance of the new centre and retain well-utilised offerings that were found in the former PWMSC.

• an outdoor leisure/family pool which compliments the multipurpose outdoor 50m pool providing additional capacity for families and young people, especially when the deeper water pool is programmed for water polo, swimming competition and other activities;

• expanded outdoor seating/viewing areas with grassed areas to accommodate larger school carnivals and provide a more “pool in a park” experience;

• larger fitness centre and wellness offerings such as spa/sauna to offer a more diverse and comprehensive offering, supporting targeted programs aimed at increasing female and multicultural participation (where participation is low), active aging participation (where facilities and services provision is inadequate), and those with chronic health related illnesses (which are served best by specific programming capacity); and

• community meeting/programming room that provides complementary dry space for community programs and events such as council’s Senior Leisure Learning program, aquatic users, a space for local clubs to hold a meeting and community group’s to use for activities which there is a lack of options within Parramatta CBD

A key design guideline that was developed in collaboration with the Parramatta Park Trust was to:

Locate all car parking underground and minimise above ground bus parking and drop-off zones.25

While an underground car park requires a considerable investment compared to an at-grade parking provision, two (2) car parking alternatives were specified for each option, namely (i) an at grade car park with capacity for 212 cars; and an underground car park with capacity for 217 cars.

In addition, one further alternative was specified for Option One – the inclusion of a timber roof structure to cover the indoor aquatic facilities, as an example of an approach to ESD to meet Design Excellence (noting other options could also be pursued)..

Accordingly, six potential options are considered based on the combination of facilities, car parking, and the structure of the roof, specifically:

• Option 1A: A project site with a modern aquatic leisure centre with indoor and outdoor aquatic facilities and fitness centre and at grade car parking for 212 cars. The total project is assumed to commence


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construction in November 2018 and commence operation in September 2020. Total capital costs for the development of the facility are estimated to be $64.9 million (in nominal terms).

• Option 1B: A project site with a modern aquatic leisure centre with indoor and outdoor aquatic facilities and fitness centre and underground car parking for 217 cars. The total project is assumed to commence construction in November 2018 and commence operation in September 2020. Total capital costs for the development of the facility are estimated to be $72.4 million (in nominal terms).

• Option 1C: A project site with a modern aquatic leisure centre with indoor and outdoor aquatic facilities and fitness centre, at grade car parking for 212 cars, and a timber roof structure covering the indoor aquatic facilities. The total project is assumed to commence construction in November 2018 and commence operation in September 2020. Total capital costs for the development of the facility are estimated to be $69.5 million (in nominal terms).

• Option 1D: A project site with a modern aquatic leisure centre with indoor and outdoor aquatic facilities and fitness centre, underground car parking for 217 cars, and a timber roof structure covering the indoor aquatic facilities. The total project is assumed to commence construction in November 2018 and commence operation in September 2020. Total capital costs for the development of the facility are estimated to be $76.9 million (in nominal terms).

• Option 2A: A project site with a modern aquatic leisure centre with indoor and outdoor aquatic facilities, with additional outdoor aquatic leisure facilities and additional community, fitness and wellness components and at grade car parking for 212 cars. The total project is assumed to commence construction in November 2018 and commence operation in September 2020. Total capital costs for the development of the facility are estimated to be $75.2 million (in nominal terms).

• Option 2B: A project site with a modern aquatic leisure centre with indoor and outdoor aquatic facilities, with additional outdoor aquatic leisure facilities and additional community, fitness and wellness components and underground car parking for 217 cars. The total project is assumed to commence construction in November 2018 and commence operation in September 2020. Total capital costs for the development of the facility are estimated to be $82.8 million (in nominal terms).

Base case: Consistent with NSW Treasury Guidelines for capital business cases, the six project options are evaluated against a ‘Do Minimum’ Base Case. Under the base case, the project site is assumed to remain a ‘passive park’ over the next 30 years, with the open space within the broader Mays Hills Precinct remaining available for public use. The City has enacted a number of temporary provisions to ensure that the local community has access to aquatic facilities in the near term including the refurbishment of the outdoor 25 metre pool at Macarthur Girls High School, and the leasing of the facility from the school to provide controlled entry for both learn swim programs, and a limited form of lap swimming in the mornings, from February 2018.

It should be noted that the Macarthur Girls High School facility will only provide a limited capacity for these services, and sharing this facility poses a number of access and operational issues.

In the base case it is assumed that this provision is continued indefinitely to provide the community with access to an aquatic facility, which will be associated with a leasing fee of $30,000 per annum (in real terms) paid by the City to the Macarthur Girls High School.

Annual operational costs of the learn to swim program operated from the outdoor 25 metre pool at Macarthur Girls High School, as well as providing controlled entry for lap swimming some mornings of the week, is expected to be approximately $110,000 per annum (jn real terms) while revenues are expected to be closer $390,000 per annum (in real terms). Table 3-6 shows the facilities across the six project options.

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Table 3-6: Facilities provided across the six project options

Area of facilities (square metres) Option 1A Option 1B Option 1C Option 1D Option 2A Option 2B

Fitness centre 1 315 1 315 1 315 1 315 1 880 1 880

25 metre indoor pool 625 625 625 625 625 625

Indoor leisure pool 625 625 625 625 625 625

Sauna 70 70

Spa 20 20

Indoor change rooms 555 555 555 555 555 555

Café 150 150 150 150 120 120

Function meeting room - - - - 120 120

Outdoor leisure pool - - - - 440 440

Swim club room 120 120 120 120 150 150

50m outdoor pool 1 320 1 320 1 320 1 320 1 320 1 320

Outdoor change rooms 350 350 350 350 350 350

Terraced seating 100 100 100 100 100 100

Store 240 240 240 240 240 240

BBQ area 300 300 300 300 300 300

At grade car park (no. of cars at capacity) 212 - 212 - 212 -

Underground car park (no. of cars at capacity) - 217 - 217 - 217

Timber roof structure x x x x

Source: Sisson Architects

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Table 3-7 below compares the facilities provided in the six project options to those reported by the community as being essential for the new aquatic leisure facility if the budget was tight (Figure 3-1). Each of the project options provide 17 of 20 most essential items for a modern aquatic leisure centre reported by the community, and provide a more integrated service offering to what was previously provided by the PWMSC.

Table 3-7: Facilities provided across the six project options

Facilities PWMSC Base case Option 1a Option 1b Option 1c Option 1d Option 2a Option 2b

Outdoor lap pool

Outdoor leisure pool x x x x x

Hot showers x

Indoor pool x x

Change rooms (higher standard) x x

Accessibility provisions x

Indoor learn to swim pool x x

Change rooms (basic) x

Squads and swimming training x

Utility pool (diving and water polo) + dive tower

x x x x x x x

Toddlers pool x x x x x x x

Café x

Lockers for hire x

Picnic / BBQ areas x

Water play (under 12) x x x x x x x x

Gymnasium / fitness classes x x

Spectator seating x

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Facilities PWMSC Base case Option 1a Option 1b Option 1c Option 1d Option 2a Option 2b

Water slides x x x x x x x

Sauna / spa x x

Aqua aerobics x x

Indoor sporting complex x x x x x x x x

Program / hydro pool x x

Wave pool x x x x x x x x

Children's creche x x x x x x x x

Wellness centre x x x x x x x x

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3.3.2 Option 1A: Indoor and outdoor facilities and at grade car parking

Option 1A involves the development of modern aquatic leisure centre with indoor and outdoor facilities with at grade car parking for 212 cars. A description of the features of the centre under this option are summarised below and outlined in further detail in Appendix C.

Isometric view

Option 1A provides a contemporary aquatic leisure centre with indoor and outdoor aquatic components for year round use and a fitness centre as outlined in 3.3.1 – with at-grade car park.

Lower ground floor plan

The lower ground floor includes the ‘dry’ leisure facilities including the gymnasium area that is 1,315m2 in size. Three multi-purpose rooms provides the flexibility to hold a range of fitness classes and personal training sessions. The lower ground floor also accommodates water filtration plants and hot water systems.

Site plan

The new aquatic leisure centre will be located on Park Parade, on the eastern portion of the former golf course near the corner of Pitt Street close to an existing bus stop and walking distance to the CBD, CBD car parking and local transport connections. This strategic location will help ensure that the centre is accessible to local community members travelling via all transport mode shares.

Car park plan

The at grade car park includes 212 spaces that will be made available to users of the facility free of charge. The car park is located directly opposite the facility with entrance and exit points connected to Park Parade. Accessible parking spots and drop-off zones will be made available to users.

Roof plan

A permanent roof will provide shelter for swimmers and other users of the fitness centre across the year, while the 50m multipurpose pool will be open to the elements. This facility provides capacity for lap swimming, carnivals and training, water polo training and local competition and for general aquatic leisure.

Cross sections

The new aquatic leisure centre has been designed to align with the natural topography of the Mays Hill Precinct site. This design feature helps to reduce the excavation and site preparation costs and helps to maximise the amenity of the facility and project site.

Upper ground floor plan

The upper ground level will accommodate the indoor swimming facilities including a 25m leisure pool, dedicated learn to swim pool and all-abilities water play facility. Users of these facilities will have access to change rooms within close proximity to the pools. The outdoor 50m pool is located in the centre of the concourse and is surrounded by terraced seating, change rooms and various amenities. A café and retail area will provide ancillary services to both active and passive visitors.

Elevations

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3.3.3 Option 1B: Indoor and outdoor facilities and underground car parking

Option 1B involves development of modern aquatic leisure centre with indoor and outdoor facilities with at grade car parking for 217 cars. A description of the features of the centre under this option are summarised below and outlined in further detail in Appendix D.

Isometric view

The aquatic and fitness facilities provided under Option 1B are the same as those included Option 1A. The difference between the two options is that the latter provides an underground car park.



Site plan

The new aquatic leisure centre will be located on Park Parade on the eastern portion of the former golf course near the corner of Pitt Street, close to an existing bus stop and walking distance to the CBD, CBD car parking and local transport connections. This strategic location will help ensure that the centre is accessible to local community members travelling via all transport mode shares.

Car park plan

The underground car park includes 217 spaces that will be made available to users of the facility free of charge. The car park is located directly opposite the facility with entrance and exit points connected to Park Parade. Accessible parking spots and drop-off zones will be made available to users. Moving the car park underground helps improve the amenity of the project site and provides additional security to users.

Roof plan

A permanent roof will provide shelter for swimmers and other users of the gym across the year, while the 50m lap pool will be open to the elements.

Cross sections



The upper ground level will accommodate the indoor swimming facilities including a flexible 25m leisure pool, dedicated learn to swim pool and all-abilities water play facility. Users of these facilities will have access to change rooms within close proximity to the pools. The outdoor 50m pool is located in the centre of the concourse and is surrounded by terraced seating, change rooms and various amenities. A café and retail area will provide ancillary services to both active and passive visitors.

Elevations

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3.3.4 Option 1C: Indoor and outdoor facilities, at grade car parking, timber roof structure

Option 1C involves the development of modern aquatic leisure centre with indoor and outdoor facilities with at grade car parking for 212 cars. A description of the features of the centre under this option are summarised below and outlined in further detail in Appendix E.

Isometric view

Option 1C is identical to Option 1A with the exception of the material that is used to construct the roof to cover the indoor aquatic facilities. The roof structure for Option 1C is made out of timber.



Site plan


Car park plan


Roof plan

A permanent roof with timber structure will provide shelter for swimmers and other users of the fitness centre across the year, while the 50m multipurpose pool will be open to the elements. This facility provides capacity for lap swimming, carnivals and training, water polo training and local competition and for general aquatic leisure.

Cross sections




Elevations

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3.3.5 Option 1D: Indoor and outdoor facilities, underground car parking, timber roof structure

Option 1D involves development of modern aquatic leisure centre with indoor and outdoor facilities with at grade car parking for 217 cars. A description of the features of the centre under this option are summarised below and outlined in further detail in Appendix F.

Isometric view

Option 1D is identical to Option 1B with the exception of the material that is used to construct the roof to cover the indoor aquatic facilities. The roof structure for Option 1D is made out of timber.



Site plan


Car park plan

The underground car park includes 217 spaces that will be made available to users of the facility free of charge. The car park is located directly opposite the facility with entrance and exit points connected to Park Parade. Accessible parking spots and drop-off zones will be made available to users. Moving the car park underground helps improve the amenity of the project site and provides additional security to users.

Roof plan

A permanent roof with a timber structure will allow pool users and other users of the gym year indoor round use.

Cross sections




Elevations

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3.3.6 Option 2A: Indoor and outdoor facilities and at grade car parking

Option 2A involves development of modern aquatic leisure centre with indoor and outdoor facilities with at grade car parking for 212 cars. A description of the features of the centre under this option are summarised below and outlined in further detail in Appendix G.

Isometric view

Option 2A expands on the offering within Options 1A-D, providing expanded and additional aquatic, leisure and wellness offerings as outlined in Section 3.3.1. Car parking is provided at grade.


The lower ground floor includes the ‘dry’ health facilities including the gymnasium area that is 1,850m2 in size. Three multi-purpose rooms provides the flexibility to hold a range of fitness classes and personal training sessions. The lower ground floor also accommodates water filtration plants and hot water systems.

Site plan


Car park plan


Roof plan

A permanent roof will provide shelter for swimmers and other users of the gym across the year, while the 50m lap pool and leisure pool will be open to the elements.

Cross sections




Elevations

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3.3.7 Option 2B: Indoor and outdoor facilities with underground car parking

Option 2B involves development of modern aquatic leisure centre with indoor and outdoor facilities with at grade car parking for 217 cars. A description of the features of the centre under this option are summarised below and outlined in further detail in Appendix H.

Isometric view

The aquatic and fitness facilities provided in Option 2B are exactly the same as those included Option 2A. The main difference between the two options is that the latter provides an underground car park.


The lower ground floor includes the ‘dry’ health facilities including the gymnasium area that is 1,850m2 in size. Three multi-purpose rooms provides the flexibility to hold a range of fitness classes and personal training sessions. The lower ground floor also accommodates water filtration plants and hot water systems.

Site plan


Car park plan

The underground park includes 217 spaces that will be made available to users of the facility free of charge. The car park is located directly opposite the facility with entrance and exit points connected to Park Parade. Accessible parking spots and drop-off zones will be made available to users.

Roof plan

A permanent roof will provide shelter for swimmers and other users of the gym across the year, while the 50m lap pool and leisure pool will be open to the elements.

Cross sections The new aquatic leisure centre has been designed to align with the natural topography of the Mays Hill Precinct site. This design feature helps to reduce the excavation and site preparation costs and helps to maximise the amenity of the facility and project site.



Elevations

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3.4 Demand analysis Central to evaluating the potential net economic benefit generated by the six project options under review is a comprehensive understanding of the incremental demand for aquatic leisure services or activities relative to the base case. The first part of this section outlines the analysis conducted to assess the demand for the new aquatic leisure centre across the six project options, while the rest of the section focussing on the level of demand for aquatic leisure services or activities in the base case.

3.4.1 Demand for aquatic leisure services under the project options

The following section outlines the approach adopted for the findings of the demand analysis for the project options and the key findings. Specifically:

• the approach to undertaking the analysis;

• level of participation in leisure activities;

• benchmarking visitation to other facilities;

• programming considerations;

• user considerations; and

• the findings of the analysis.

3.4.1.1 Analysis approach and assumptions Articulating the potential nature and extent of demand for the new aquatic leisure centre in Parramatta is a critical element of assessing the potential net benefits of the Centre to the local community and to the State more broadly. In particular, the analysis needs to account for both the impacts of the core offering of the aquatic leisure centre and typical ancillary offerings (e.g. a café and retail shop), as well as the potential for additional commercial opportunities that the aquatic leisure centre may choose to pursue over time (e.g. a more substantial food and beverage offering, commercial development, early childhood education and care).

Given that a facility with the integrated service offerings embedded within the project options has not previously been available to the local community (and hence the level of demand unobserved) there are clearly a range of challenges and uncertainties surrounding the projection of attendance levels of the next 30 years including but not limited to uncertainty regarding:

• the timing and scale of the population and broader economic and demographic changes that will occur in Parramatta and the geographic catchment surrounding the aquatic leisure centre over the coming decades;

• the level of initial demand for the aquatic leisure centre;

• how the local community will interact with the new facilities and the level of continued demand for the facilities; and

• the precise level of capacity of the aquatic leisure centre across the various facilities and programs provided.

Within the context of the uncertainty and challenges involved in projecting attendance levels over the coming decades, a mixed method approach26 has been adopted to provide a judgement of the likely profile of attendance and demand for the various facilities. This approach has been underpinned by an extensive range of data and information around the regional economic and demographic landscape, together with demand and participation in the arts and culture sector, both domestically and internationally.

The demand analysis undertaken represents the most comprehensive approach available, given the extent of available data and information, the extent of definition around the shape and form of the new aquatic leisure

26 A mixed method approach focuses on collecting, analysing, and mixing both quantitative and qualitative data in a single study or series of studies. Its central premise is that the use of quantitative and qualitative approaches in combination provides a better understanding of research problems than either approach alone.

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centre, and the uncertainties associated with the various drivers of change that will impact the Project. In developing the framework to undertake this demand analysis, Council has critically evaluated the strengths and limitations of the range of alternate approaches available to put forward the most comprehensive approach, given the various objectives and the constraints.

To underpin the delivery of this work, Council has drawn on an extensive range of data and information, as well as targeted supplementary research and analysis to develop a broad range of potential approaches available to understand the underlying drivers of attendance to the new aquatic leisure centre, which include:

• benchmarking local council and leisure participation levels;

• benchmarking previous attendance at the Parramatta War Memorial Swimming Centre;

• benchmarking current attendance at other significant aquatic leisure facilities;

• estimating the capacity of the new aquatic leisure centre;

• estimating the current level of aquatic leisure facility provision across the broader district.

3.4.2 Leisure participation levels Given its size and functionality, the new aquatic leisure centre is expected to primarily service the local residential population within the 3km geographic catchment around the facility. An estimate of the potential level of demand for the facility can be generated by multiplying the level of residential population located within the catchment by benchmark levels of participation rates (i.e. the number of visits per head) of other established facilities. Table 3-8 below indicates that in the period from 2016 to 2036, the population located within the 3km catchment surrounding the facility is projected to increase by 65 per cent from 119,190 to 197,128.

National facility benchmarks for public recreation and aquatic centres produced by the Centre for Environmental and Recreational Management (CERM) at the University of South Australia show 5.4 visits per head of 5km population indoor/outdoor centre and 8.8 visits per head of 5km population for indoor/multi-purpose facility.27 As outlined above, the design concepts of the new aquatic leisure centre is expected to reflect an ‘indoor/outdoor centre’. Combining both the expected population levels within the 3km catchment and national facility benchmarks for public recreation and aquatic centres suggests that an indicative level of the overall annual demand for the facility is over 1 million visits per annum.

Table 3-8: Population growth expected within 3km of the new aquatic leisure centre

2016 2021 2026 2031 2036 % change

Population within 3km catchment

City of Parramatta 70,369 85,971 101,575 116,823 128,319 82%

Cumberland Council 48,820 58,425 63,492 66,268 68,809 41%

Total 119,190 144,397 165,067 183,092 197,128 65%

Indicative level of overall demand

Total 1,048,872 1,270,694 1,452,590 1,611,210 1,734,726 65%


3.4.3 Benchmarking visitation

The following sub-sections outline visitation benchmarking considerations, including:


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• previous attendance at the PWMSC;

• attendance at national aquatic leisure centres nationally; and

• considerations for the composition of demand.

Attendance at the Parramatta War Memorial Swimming Centre

The PWMSC was predominately an outdoor aquatic centre attracting on average 150,000 visitations per annum over the last four years. Revenue was approximately $1.3 million.

In the four-year period from 2013 to 2016, the centre was opened all year round with the exception of a four-month closure from June to September in 2016. During this period:

• Average annual visitations were 149,736, which includes an average of 28,089 swim school visits per annum and 2 544 water polo visits per annum.

• Slide ticket passes were purchased subsequent to entry and while the slides were closed for an extended period, in 2013/14 there were 11,099 slide ticket sales.

Figure 3-3 below provides a breakdown of average annual visits to PWMSC by type for the period from 2013 to 2016, and illustrates that ‘casual swims’ was the most common form of attendance.

Figure 3-3: Visitors to the Parramatta War Memorial Swimming Centre


A summary of visitations by month in 2016 is provided below, which highlights the seasonality of an outdoor pool with peak monthly attendance of 27,627 in February 2016 and a low monthly attendance of 3,719 in July 2016. If the February demand was maintained for a full year, it is identified that the hypothetical annual visitation number would be in excess of 330,000.

The number of visits to the new aquatic leisure centre are expected to stem from:

• demand for outdoor aquatic facilities;

• demand for indoor aquatic facilities;

• demand for wellness and fitness elements such as the gymnasium, fitness rooms, spa, sauna and steam room.

The observed level of demand for the PWMSC over the course of 2016 suggests that the near term demand for the outdoor swimming facilities of the two broad project options could be in excess of 150,000 per annum. In addition, the indoor aquatic and health facilities located within the new aquatic leisure centre are expected to significantly boost visitation given that they will operate across the year and not be affected by seasonal weather changes.

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Figure 3-4: Monthly visitors to Parramatta War Memorial Swimming Centre


Attendance to significant national aquatic leisure centres

A sense of the potential profile of attendance to the new aquatic leisure centre can also be gained by benchmarking the facility to other significant national aquatic leisure centres that are currently in operation. Table 3-9 below outlines the current total attendance levels per annum of a select number of Centres across Australia. The data indicates that large aquatic leisure centres can generate annual attendance levels of 1 to 1.2 million while smaller-scaled facilities such as the Ryde Aquatic Leisure Centre generate closer to 750,000 annual visitations. Of the centres listed below, the scope and facilities of the project options considered are more closely aligned to the Ryde Aquatic Leisure Centre, suggesting that an indicative level of demand for the new aquatic leisure centre could be in the range of 700 000 to 750 000 per annum.

Table 3-9: Benchmarking to significant national aquatic leisure centres

Aquatic facilities Total attendance per annum

Sydney Olympic Park Aquatic Centre (NSW) 1 million

Ryde Aquatic Leisure Centre (NSW) 0.7 million

Hurstville Aquatic leisure Centre (NSW) 1.2 million

Macquarie University (NSW) 1 million

Glen Eira Sports and Aquatic Centre (VIC) 1.2 million

Cockburn Aquatic and Recreation Centre (WA) 1.1 million


Considering the composition of demand

The benchmarking analysis outlined above provides an indication of the level of aggregate attendance to the new aquatic leisure centre. For the purposes of assessing the level of operational revenue and potential benefits to society of the new aquatic leisure centre, it is also important to gain a clear sense of the composition of demand or the usage levels of the different facilities and services that form part of the project options. The research conducted by the Victoria University referenced above also provides a sense of the potential composition of demand for the new aquatic leisure centre. Figure 3-5 below illustrates that outside

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Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16

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of casual or lap swimming, a large proportion of visits to Victorian aquatic leisure centres are driven by the use of gym /health club; group fitness; and learn to swim programs. The behaviour of Victorian users of aquatic leisure centres suggests that the gym and indoor health facilities included within the two project options will be a strong source of demand.

Anecdotal evidence also suggests learn to swim programs are likely to be a strong source of demand, with Swimming NSW indicating during consultation with the City that the learn to swim market in the western suburbs is significant and as an example Sydney Olympic Park Aquatic leisure centre has approximately 5 000 enrolments and is at capacity. Swimming NSW believe that the right facility design in Parramatta could result in a swim school program with up to 5,000 enrolments.28

Figure 3-5: Estimates of the composition of demand for Victorian aquatic centres

Source: Victoria University, Community Benefits of Victorian Aquatic and Recreation Centre, April 2014

Note: Users could indicate that they use more than one facility.

3.4.4 Current level of provision of aquatic leisure facilities The current level of provision of aquatic leisure facilities within the City and nearby municipalities can also affect the level of demand for the new facility. High levels of provision or close substitutes would be expected to limit demand, while low levels of provision or competition would, all else constant, help to boost the level of demand for the new centre.

As outlined above, the City has historically had a relatively low provision of aquatic leisure facilities per capita compared to other municipalities across the State. A 2015 review of Council aquatic leisure facility provision indicated that the average 2014/15 level of aquatic leisure provision for the Councils reviewed was one facility to 67 774 residents, while the City provision was one facility to 94 966 residents. This was the lowest level of provision of the Councils reviewed at the time. The low level of provision currently recorded is expected to help support the level of demand for the new aquatic leisure facility.

28 Source: Parramatta City Council, An Aquatic Leisure Centre for Parramatta Feasibility Study – September 2017

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Table 3-10: Aquatic leisure centre provision across NSW municipalities

Council (pre 2016) Population Facilities Facilities per head

Auburn 85,446 1 1:85,446

Bankstown 200,357 4 1:50,090

Canterbury 150,626 2 1:75,313

Fairfield 203,209 3 1:67,736

Holroyd 111,100 3 1:37,033

Hurstville 85,886 1 1:85,886

Liverpool 199,928 3 1:66,643

Parramatta 189,932 2 1:94,966

Strathfield 39,481 0 -

Sutherland 225,070 3 1:75,023

Total 1,491,035 22 1:67,774


Note: Based on the council boundaries defined prior to recent amalgamations

3.4.5 Estimating the capacity of the new aquatic leisure centre

The level of attendance at the new aquatic leisure centre will be a function of both demand and supply i.e. it is not possible for the level of attendance to exceed the capacity of the project options. Capacity constraints or bottlenecks can occur across the day, during peak and non-peak times, as well as across the various facilities and programs that are expected to be operated once the new aquatic leisure centre is opened. In particular, a key consideration when assessing the capacity of the facility is the number of car spaces that are available for potential users to access.

The capacity level of the two broad project options were benchmarked by Warren Green Consulting against the capacity levels of established aquatic leisure centres across Australia with comparable scope of facilities. This benchmarking exercise found the following:

• the expected capacity level of the Option 1a, 1b, 1c and 1d is close to 800,000 visits per annum;

• the capacity level of Option 2a and 1b is closer to 950,000 visits per annum.

3.4.6 Programming considerations The scope of the facilities included in the two broad project options will inform the programming of the facility which will in turn affect the expected demand levels. Table 3-11 below provides a summary of the programming that is expected for the new aquatic leisure centre under the two broad project options.

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Table 3-11: Expected programming at the new aquatic leisure centre

Service Option 1 Option 2

Included Details Included Details

Personal training

Personal training sessions will be available to members of the general public by qualified staff within the swimming and gymnasium facilities across the year.

Personal training sessions will be available to members of the general public by qualified staff within the swimming and gymnasium facilities across the year. The larger gym facility incorporated in Option 2 (please refer below) is expected to result in a greater number of personal training sessions being held within the centre per year.

Casual fitness

Option 1 will contain a gymnasium that is 1 315 m2 in size that will be open to the public and private members of the centre to participate in fitness activities across the year.

Option 2 will contain a gymnasium that is 1 880 m2 in size that will be open to the public and private members of the centre to participate in fitness activities across the year. The larger gym facility incorporated in Option 2 is expected to result in a greater number of casual fitness visitations per annum.

Casual / leisure swim x

Option 1 will not contain an outdoor leisure pool for casual or leisure swimming. Other swimming pools are available within the centre that can be used for casual or leisure swimming at certain times of the day.

Option 2 will contain an outdoor leisure pool that is 440m2 in area for community members to partake in leisure swimming across the year. The presence of the additional outdoor pool in Option 2 is expected to help generate higher levels of attendance to the new aquatic leisure facility in comparison to Option 1. Other smaller swimming pools are available within the centre that can be used for casual or leisure swimming at certain times of the day.

Water polo training and competition

Option 1 will contain an outdoor lap pool that is 1 320 m2 in area. Option 1 will contain an outdoor lap pool that is 1,320 m2 in area.

Lap swimming

Option 1 will contain an outdoor lap pool that is 1 320 m2 in area and an indoor 25 metre pool that is 625 m2 in area that can both accommodate lap swimming across the year.

Option 2 will contain an outdoor lap pool that is 1 320 m2 in area and an indoor 25 metre pool that is 625 m2 in area that can both accommodate lap swimming across the year.

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Service Option 1 Option 2

Included Details Included Details

Spa and sauna x Option 1 will not contain a spa and sauna. Option 2 will contain a spa and sauna that are both 70m2 in area that will be available to members of the general public.

Learn to swim programs

Option 1 will contain an indoor leisure pool that is 625m2 in area that will be available to accommodate learn to swim programs across the year.

Option 2 will contain an indoor leisure pool that is 625m2 in area that will be available to accommodate learn to swim programs across the year.

School carnivals

Option 1 will contain an outdoor lap pool that is 1,320 m2 in area with stadium seating that can accommodate the swimming carnivals and events of primary and secondary schools.

Option 2 will contain an outdoor lap pool that is 1 320 m2 in area with stadium seating that can accommodate the swimming carnivals and events of primary and secondary schools within proximity to the aquatic facility.

Indoor meetings / workshops / community programs x Option 1 will not contain facilities to host

indoor functions and events. Option 2 will contain a function / meeting room that is 120m2 in area that will be available to host indoor functions and events across the year.

Birthday parties

Option 1 will contain aquatic facilities and outdoor BBQ facilities that can accommodate birthday parties across the year.

Option 2 will contain aquatic facilities and outdoor BBQ facilities that can accommodate birthday parties across the year.

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3.4.7 Demand for the services provided by the new aquatic leisure centre The scope of the programming schedule under both broad project options is expected to lead to strong demand from the local community for both aquatic and broader health services. In order to accurately quantify the scale of future demand it is important to first consider the potential sources of demand including the:

• population segments expected to use the new aquatic leisure centre;

• nature of the potential users of the new aquatic leisure centre; and

• geographic catchment that users are expected to be drawn from.

Population segments As outlined above the Mays Hill Precinct is located within walking distance from Parramatta’s CBD which is expected to accommodate a growing number of potential sources of demand for aquatic leisure facilities including:

• permanent residents that live in proximity to the new aquatic leisure centre;

• professionals that commute to Parramatta;

• tertiary students that commute to Parramatta: and

• other commuters to Parramatta for district and regional services such as retail, cultural, and entertainment opportunities.

The usage behaviour of the population segments above are expected to vary, with professionals and tertiary students expected to use the facilities Monday to Friday outside of work hours, while permanent residents may be expected to use the facility more frequently across the weekend.

Nature of potential users

Users of aquatic centres can be classified as either active or passive users. Active users of the new aquatic leisure centre will include, for example, participants in learn to swim programs, adults exercising in the lane pool, and adults exercising in the gym facilities. In addition to active users, there are expected to be a number of passive users that, while unlikely to use the facilities, may for example utilise some of the ancillary services such as the café. These may include:

• parents of children that are enrolled in a learn to swim program, or

• other community members that are utilising the broader park and recreational facilities of the Mays Hill Precinct and may for example purchase food and beverages from the café.

Both category of users will impact demand for the facilities included in the new aquatic leisure centre and expected levels of operating revenue.

Geographic catchment

In order to consider the potential scale of the market for the new aquatic leisure centre it is important to consider the geographic catchment that users are likely to be drawn from i.e. how far are people (on average) willing to travel to use a modern aquatic leisure centre? The residential population located within that geographic catchment, in addition to the workers and students located within the catchment, would be considered part of the potential market of the aquatic leisure centre.

No primary research was conducted during the planning and development phases of the new aquatic leisure centre regarding the travel patterns of potential users. Similar research has, however, been previously conducted by Victoria University on the travel patterns of users of Victorian aquatic centres that can provide an evidence base to inform a realistic set of assumptions regarding the likely geographic catchment of the new aquatic leisure centre (Table 3-12).

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The study found that the clear majority (over 70 per cent) of users travel within the municipality that the centre is located and travel less than 15 minutes. Given the facility’s proximity to the Parramatta CBD and, in turn, the relatively high levels of traffic and congestion that are expected in the surrounding street network, a 3 kilometre catchment was judged to be a realistic assumption regarding the scale of the geographic catchment that the majority of users will be drawn from. It is noted that the traditional catchment applied to an aquatic leisure centre is 5 kilometres, however a more conservative approach has been taken (i.e. 3 kilometres) predominately due to the higher population density and impact on travel times.

Table 3-12: Estimated origin of users of aquatic centres in Victoria

Centre is in your municipality? Frequency Per cent

Yes 983 72.3

No 374 27.5

Total 1360 100.0

Travel time to aquatic leisure centre Frequency Per cent

Less than 10 minutes 726 53.1

10 minutes to 15 minutes 349 25.4

15 minutes to less than 20 minutes 149 10.9

More than 20 minutes 142 10.6

Total 1366 100.0


3.4.8 Findings and conclusions from the analysis

The analysis above highlights that there is expected to be strong demand for the facilities provided by the new aquatic leisure centre reflecting:

• the current low level of service provision in the local area;

• the large and growing residential population located within the 3km geographic catchment of the facility; and

• a significant learn to swim market in Western Sydney.

Benchmarking annual attendance levels with other established facilities across the State suggests that the level of demand could be between 800,000 and 1.1 million annual visits within the first five years of operation.

Attendance at the new aquatic leisure centre is, however, expected to be constrained by the capacity of the two broad project options are expected to be limited by the size of the car park and the health and aquatic facilities.

For the purposes of the demand analysis, it has been assumed that Option 1 has a capacity of 795,000 annual visits per annum across the diverse range of facilities, while Option 2 has a larger capacity of 920,193 annual visits per annum reflecting the large scope of facilities provided.

On the basis of this assumption, and the strong demand projected, the two project options are expected to reach capacity after the third year of operation (Figure 3-6 and Figure 3-7).

Across both broad project options, a high proportion of visitors to the new aquatic leisure centre are expected to be:

• children (and adults) attending learn to swim programs given the current size of the market;

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• casual swimmers that take advantage of the broad range of indoor and outdoor aquatic facilities; and members of the facility that can take advantage of the integrated service offering across all ‘wet’ and ‘dry’ facilities.

Figure 3-6: Projected attendance levels over the first ten years of operation – Option 1: Indoor and outdor facilities

Source: Warren Green Consulting

Figure 3-7: Projected attendance levels over the first ten years of operation – Option 2: Indoor and additional outdor facilities


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3.4.9 Demand for aquatic leisure activities under the base case

In considering the potential demand for aquatic leisure facilities by the local community under the base case, it is important to examine the proportion of projected demand for the new aquatic leisure centre that:

• would have been alternatively accommodated by neighbouring aquatic leisure centres, and

• is induced i.e. would not have occurred in the absence of the new aquatic leisure centre.

Local community members that would consider attending neighbouring swimming facilities under the base case are likely to face increased travel times and higher levels of congestion at existing facilities (relative to the project case). The level of demand for aquatic leisure activities that would be accommodated by neighbouring aquatic leisure centres under the base case is therefore a function of both:

• the capacity of neighbouring aquatic leisure facilities to accommodate additional levels of demand from the local community.

• the nature of demand for the range of aquatic leisure facilities provided by the new aquatic leisure centre;

– For example, given the importance that parents place on ensuring that their children can swim, the level of demand for learn to swim programs may be insensitive to modest changes in both financial and time costs associated with the classes (i.e. demand is relatively inelastic). On the other hand, for some people, there may be a number of substitutes for casual swimming (as a form of exercise) such as running or bike riding, which may result in demand being more sensitive to changes in both financial and time costs (i.e. demand is relatively elastic).

3.4.9.1 The capacity of neighbouring aquatic leisure facilities to accommodate additional levels of demand in the base case

In March 2017, INSW released an interim Swimming Pool Management Plan (‘the Plan’) for the closure of Parramatta Swimming Centre. The Plan included a comprehensive review of alternative swimming facilities that are within a 10 kilometre radius of the previous PWMSC site that could potentially accommodate additional demand due to the facility’s closure. In relation to learn to swim facilities, the Plan found that:

There are 28 public and private existing learn to swim facilities within a 10 kilometre radius of Parramatta Swimming Centre that are open all year round, operate most days of the week and have comparable lesson fees to Parramatta Swimming Centre. Each of these facilities was contacted via email or phone to discuss their capacity to accommodate new learn to swim enrolments from Parramatta Swimming Centre. 24 of these facilities confirmed that they have capacity to take on new enrolments until a new facility is built in Parramatta.29

In relation to alternative public swimming facilities more broadly, the Plan found that:

There are a number of alternative public swimming facilities within a 10 kilometre radius of Parramatta Swimming Centre that provide similar services, have comparable entry fees and opening hours. Infrastructure NSW and City of Parramatta met with the operators of each of these facilities to confirm their ability of accommodate users of Parramatta Swimming Centre.

Of the ten alternative public swimming facilities surveyed, all confirmed that some level of capacity was available to accommodate additional demand from the closure of PWMSC.

Based on the findings above, it is assumed that the level of demand in the base case for both learn to swim programs and swimming facilities more broadly could be accommodated by the alterative facilities within a 10km radius of the PWMSC.

Macarthur Girls High School In addition to the neighbouring facilities outlined above, the City has announced that it plans to:

• refurbish the outdoor 25 metre pool at Macarthur Girls High School (‘the School’),

29 INSW, Interim swimming pool management plan for the closure of Parramatta Swimming Centre, 2017

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• lease this facility from the school, and

• provide controlled entry for learn to swim programs, and a limited form of lap swimming in the mornings, from February 2018.

It is assumed under the base case that the provision of the pool at Macarthur Girls High School is continued indefinitely to provide the local community with access to an aquatic facility to support learn to swim programming and a limited form of lap swimming.

Estimation of the demand for the Macarthur Girls High School facility Previous visits by children (and adults) to learn to swim programs provided at the PWMSC is expected to be a reasonable benchmark for the level of demand for learn to swim services at the new facility at Macarthur Girls High School given that PWMSC was:

• an outdoor facility with a 25 metre program pool for learn to swim classes;

• open to the general public across the week; and

• previously located in close proximity to Macarthur Girls High School.

In the four-year period from 2013 to 2016, the average number of swim school visits to the PWMSC per annum were 28 089 visits (not including guardians).30 The average number of annual swim school visits to the PWMSC is considered to be an upper-bound estimate for the expected level of demand for the Macarthur Girls High School facility for the following reasons:

• the facility may not be available to the general public for all periods of the week / year;

• some segments of the local community may not be aware of the learn to swim programs;

• the facility is not expected to have the capacity to accommodate the same level of participants as PWMSC.

For the reasons listed directly above, the annual number of visits at the learn to swim program operated at the Macarthur Girls High School swimming pool is expected to be 20,000 visits (not including guardians). The expected number of casual swimming visits to the new facility at Macarthur Girls High School has been estimated to be 5,000 visits per annum given the controlled entry proposed for (selected) mornings only.31

3.4.9.2 The nature of demand for aquatic leisure activities

The table below outlines the assumed nature of the demand of local community members for the range of services offered by the new aquatic leisure centre. Based on this analysis, it is anticipated that the:

• vast majority of members, regular users, and learn to swim participants would be likely to seek these services from alternative providers in the base case,

• vast majority of irregular swimmers and gym users, school events, and functions & parties in the project case(s) would be unlikely to occur (and substituted for alternative services or activities) in the base case.

Table 3-13: The nature of demand for facilities at the new aquatic leisure centre

Services Nature of demand Rationale

Aquatic / swimming

Regular users (3 or more times per week)

Relatively insensitive to modest changes in financial and time costs associated with access.32

Attending the aquatic centre three (3) or more times per week forms a pattern of behaviour and requires a significant commitment in terms of time and money.

30 Parramatta City Council, An Aquatic Leisure Centre for Parramatta Feasibility Study – September 2017 31 The projected number of casual swimming visits per annum is roughly equivalent to 30 casual swimmers, visiting the facility 4 times per week on average, across 48 weeks per year. 32 The majority of regular users are assumed to be members.

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Infrequent users (less than 3 times per week)

Relatively sensitive to changes in financial and time costs associated with access.

As a result, modest changes to financial and time costs associated with access would not be expected to change the level of demand substantially.

The opposite is assumed for people that attend the facility less than three times per week.

Fitness / health

Regular users (3 or more times per week)

Relatively insensitive to modest changes in financial and time costs associated with access. Infrequent users (less than 3 times per week)

Relatively sensitive to modest changes in financial and time costs associated with access.

Attending the aquatic centre three (3) or more times per week forms a pattern of behaviour and requires a significant commitment in terms of time and money.

As a result, modest changes to financial and time costs associated with access would not be expected to change the level of demand substantially.

The opposite is assumed for people that attend the facility less than three times per week.

Learn to swim programs Relatively insensitive to modest changes in financial and time costs associated with access.

Given the importance that parents place on ensuring that their children can swim, the level of demand for learn to swim programs is assumed to be insensitive to modest changes in both financial and time costs associated with the classes (i.e. demand is relatively inelastic).

School events Relatively sensitive to modest changes in financial and time costs associated with access.

The range of alternative events and spaces available to schools suggests that demand is likely to be quite sensitive to which changes to financial and time costs associated with access.

Functions and parties Relatively sensitive to modest changes in financial and time costs associated with access.

The range of alternative function and party spaces available suggests that demand is likely to be quite sensitive to which changes to financial and time costs associated with access.

3.4.9.3 Estimating the demand for aquatic facilities in the base case

Based on the demand and supply analysis above, it is assumed that the demand or visits to neighbouring aquatic facilities in the base case would be equal to (i) the number of learn to swim visits; and (ii) the projected number of visits to the new aquatic leisure centre by regular users (including members) under Option 1.

All additional visitation projected under Option 2 due to the increased scope and scale of facilities is assumed to be induced demand that would not have occurred in the base case.

The projected number of annual learn to swim visitations (including guardians) under Option 1 at capacity (2023) was provided by Warren Green Consulting and totals 369,600 visits. Estimating the number of annual visits to the new aquatic leisure centre by regular users requires an evaluation of the (i) number of annual visitors (as opposed to visits), (ii) number of annual regular visitors, and (iii) the usage patterns of regular visitors.

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Estimating the number of visits by regular users In order to translate the number of visits to the aquatic leisure centre to number of visitors, a clear view of the distribution of attendance rates is required i.e. how many times per week will users typically visit the new aquatic leisure centre. The evidence collected by Victoria University regarding the usage patterns of Victorians is shown in Table 3-14, and suggests that visitors will, on average, visit the aquatic leisure centres close to three (3) times per week.

Table 3-14: Estimated frequency of use by users at Victorian aquatic centres

Time span Frequency Per cent

Less than once a week 71 5.2

Once per week 275 20.0

Twice per week 326 23.8

Three or four times per week 514 37.5

Five or more times a week 186 13.6

Total 1372 100.0


For the purpose of the analysis it is assumed that the distribution of usage of the new aquatic leisure centre in Parramatta is the same as that recorded by Victoria University. Based on this distribution, and the total number of visits assumed above, it is estimated that under Option 1 at capacity (2023) the:

• number of visitors to the aquatic leisure centre that use the gymnasium is 570; and

• number of visitors to the aquatic leisure centre to swim is 1,941.

Figure 3-8 below illustrates the relationship between the number of regular swimmers and the number of casual swim visits at capacity (in 2023) under Option 1.

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Figure 3-8: Relationship between casual swimmers and visits at 2023


Those people that visit the centre three or more times per week are considered for the purpose of this analysis to be regular users and would seek neighbouring facilities in the base case. Based on this assumption, and the usage patterns outlined in Table 3-13 above, the number of visits to the new aquatic leisure centre by regular users under Option 1 at capacity (2023) is 301,751 including:

• 68,454 visits per annum by (290) regular gym users; and

• 233,297 visits per annum by (990) regular swimmers.

The level of demand for aquatic leisure facilities in the base case Table 3-15 presents the assumed level of annual demand for aquatic leisure services from local community members in the base case. The estimates below are underpinned by the following assumptions:

• All the learn to swim participants under Option 1 would have attended equivalent programs at neighbouring centres in the base case including Macarthur Girls High School; and

• All the members and regular users under Option 1 would have attended neighbouring centres in the base case.

• All additional visitation projected under Option 2 are due to the increased scope and scale of facilities is assumed to be induced demand that would not have occurred in the base case.

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Table 3-15: The expected level of demand for aquatic leisure services in the base case, annual visits (at capacity)

Services Annual attendance Option 1

Induced demand

Demand that would have occurred in the base case Annual

attendance Option 2

Induced demand

Demand that would have occurred in the base case

Macarthur Girls High School

Neighbouring facilities

Macarthur Girls High School

Neighbouring facilities

Membership 167,960 - 5,000 162,960 260,780 92,820 5,000 162,960

Casual swimming 218,003 84,212 - 133,791 246,926 113,135 - 133,791

Sub-total 385,963 84,212 301,751 507,706 205,955 301,751

Casual fitness 4,628 4,628 - - 4,628 4,628 - -

Learn to swim programs 369,600 - 40,000 329,600 369,600 - 40,000 329,600

School events 30,000 30,000 - - 30,000 30,000 - -

Functions and parties 4,889 4,889 - - 8,260 8,260 - -

Total 795,080 123,729 45,000 631,351 920,193 248,843 45,000 631,351

Note: Learn to swim program visits include a child and a guardian.

2

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3.5 Financial analysis

3.5.1 Analysis approach

Financial appraisal was undertaken to assess the viability of the two design options under consideration for the new aquatic leisure centre. For each design, there are two sub-options reflecting different car parking options (as outlined in Section 3.3 above).

This section outlines the approach to the analysis, including the guidelines that were used to structure the approach and assumptions, the key inputs into the appraisal, the base case and option definition, and the sources of information used to estimate the financial impacts.

The approach to undertaking the financial appraisal is illustrated in Figure 3-9.

Figure 3-9: Approach to the financial appraisal

The purpose of the financial appraisal is to evaluate the incremental financial costs and benefits associated with each project option. Consistent with NSW Treasury guidelines, the financial appraisal considers the direct cash flows that affect the investment proposal for each option.

3.5.1.1 Appraisal scenario definition

For the purposes of the Business Case, financial appraisal was conducted for six options for the development of the new aquatic leisure centre, specifically:

• Option 1A: A project site with a modern aquatic leisure centre with indoor and outdoor facilities and at grade car parking for 212 cars. The new facility would open in September 2020.

• Option 1B: A project site with a modern aquatic leisure centre with indoor and outdoor facilities and underground car parking for 217 cars. The new facility would open in September 2020.

• Option 1C: A project site with a modern aquatic leisure centre with indoor and outdoor facilities, underground car parking for 212 cars, and a timber roof structure. The new facility would open in September 2020.

• Option 1D: A project site with a modern aquatic leisure centre with indoor and outdoor facilities, underground car parking for 217 cars, and a timber roof structure. The new facility would open in September 2020.

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• Option 2A: A project site with a modern aquatic leisure centre with indoor and outdoor facilities, additional outdoor facilities and at grade car parking for 212 cars. The new facility would open in September 2020.

• Option 2B: A project site with a modern aquatic leisure centre with indoor and outdoor facilities, additional outdoor facilities and underground car parking for 217 cars. The new facility would open in September 2020.

For the purpose of the financial appraisal, and to ensure consistency with NSW Treasury guidelines, these options were compared to a ‘Do Minimum’ Base Case. The Base Case reflects a continuation of the approach to delivering aquatic services since the closure of the PWMSC. Specifically, this involves leasing a private 25 metre pool for the specific purpose of providing a facility for swim school classes and a limited form of lap swimming. The Base Case involves costs associated with leasing and operating the facility, which is assumed to receive patronage of close to 25,000 visits per annum over the life of the assessment period.

3.5.1.2 Key inputs

The key inputs to the financial appraisal include:

• Key financial parameters for undertaking discounted cash flow analysis, including discount rates and appraisal periods. These are detailed below.

• Demand analysis outputs for each option for the financial years FY 2021 to FY 2050. For each year, demand estimates were developed for different cohorts of visitors. The demand analysis outputs are outlined in Section 3.4.

• Operational modelling to estimate the potential ongoing operational impacts of the project options including operating costs and revenue.

3.5.1.3 Financial appraisal guidelines and parameters

The approach to undertaking the financial appraisal are consistent with relevant guidelines.33 A range of timing, cost and escalation assumptions were adopted to undertake the financial appraisal. These assumptions are summarised in the table below.

Table 3-16: Financial appraisal assumptions

Item Assumption Source

Base date for Net Present Value

1 July 2017 Base assumption

Cash flow timings Annual (financial year) Base assumption

Timing of cash flows End of period (i.e. 30 June) Base assumption

Consumer Price Index (CPI) 2.5 per cent p.a. Average based on Sydney CPI

Nominal discount rate 9.5 per cent p.a. NSW Treasury

Period of analysis Base Case:

• 2017 to 2050

Options 1a and 1b:

• Design and construction of new indoor and outdoor facilities – 2018 to 2020

• Operation – 2021 to 2050


Turner Townsend

33 NSW Treasury 2007, NSW Government Guidelines for Financial Appraisal, July

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Options 1c and 1d:



Options 2a and 2b:



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3.5.2 Capital costs

Capital cost estimates for the six project options were developed by Turner and Townsend and are included at Appendix I. They are summarised below.

Table 3-17: Capital costs of the options for the new aquatic leisure centre (nominal prices)

Capital item Capital expenditure estimates ($ million)


Building 33.0 33.0 36.0 36.0 37.6 37.6

Site works 7.8 7.2 7.6 7.6 8.0 7.5

Aquatic works 10.8 10.8 10.6 10.6 13.7 13.7

Contingencies 5.2 5.1 5.4 5.4 5.9 5.9

Other costs 8.2 8.2 8.6 8.6 10.0 10.0

Underground car park - 8.2 - 8.2 - 8.2

Total 64.9 72.4 69.5 76.9 75.2 82.8

Discounted values – total (PV 2018 @ 9.5%) 54.7 61.0 58.5 64.8 63.3 69.7

Source: Turner and Townsend

For Option 1a, total capital costs are estimated to be $64.9 million (including escalation) in nominal terms and $54.7 million in present value terms (discounted at 9.5 per cent). For Option 1b, the costs are higher associated with the underground car park development. Costs under Option 1b are estimated to be $72.4 million in nominal terms and $61.0 million in present value terms.

For Option 1c, total capital costs are estimated to be $69.5 million (including escalation) in nominal terms and $58.5 million in present value terms (discounted at 9.5 per cent). For Option 1d, the costs are higher associated with the underground car park development. Costs under Option 1d are estimated to be $76.9 million in nominal terms and $64.8 million in present value terms.

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For Option 2a, total capital costs are estimated to be $75.2 million (including escalation) in nominal terms and $63.3 million in present value terms (discounted at 9.5 per cent). For Option 2b, the costs are higher associated with the underground car park development. Costs under Option 2b are estimated to be $82.8 million in nominal terms and $69.7 million in present value terms.

There are no capital costs under the Base Case.

3.5.3 Operating costs

Operating costs occur under all of the project options and the base case. This section outlines the approach adopted to estimate operating costs under all of these scenarios.

Operating cost estimates for the six project options were developed by Warren Green Consulting at 2017-18 prices and are in line with the historical results of the other similar centres across the State. Inflation was applied to convert the data to current price or nominal terms for the financial analysis.

Operating costs under the base case include:

• a leasing fee paid by the City to Macarthur Girls High School to ensure that the pool on school grounds is available to provide learn to swim programs for the public, and

• any ongoing operating costs required to provide the learn to swim programs and controlled entry for casual lap swimming in (selected) mornings.

Operating costs for the learn to swim program at the new aquatic leisure centre were estimated by Warren Green Consulting based on the projected number of child /student visitations. The costs assumed under the base case associated with operating the facility at Macarthur Girls High School were estimated based on the:

• expected number of visits per annum to Macarthur Girls High School; and

• estimated cost per visit of providing learn to swim programs at the new aquatic leisure centre.

Based on this methodology, the average operating costs (in real terms) are expected to amount to close to $110,000 per annum.

A lease agreement fee has been reached between the City and Macarthur Girls High School of $30,000 per annum. Estimated total operating costs under the Base Case and project options are illustrated in Chart 3-1.

Chart 3-1: Operating costs for project options and base case (nominal prices)


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The composition of costs over the analysis period are summarised in Table 3-18.

Table 3-18: Operational costs, aquatic leisure centre options ($m nominal)

Cost item Operating cost ($m)


Staff 4.3 227.9 227.9 227.9 227.9 243.1 243.1

Staff costs - 3.7 3.7 3.7 3.7 4.0 4.0

Administration - 12.5 12.5 12.5 12.5 13.7 13.7

Utilities - 29.2 29.2 29.2 29.2 30.7 30.7

Contract costs - 17.0 17.0 17.0 17.0 17.9 17.9

Maintenance - 30.6 33.6 32.5 35.6 34.8 38.0

Marketing - 4.8 4.8 4.8 4.8 5.1 5.1

Banking - 2.3 2.3 2.3 2.3 2.7 2.7

Lease costs 1.4 - - - - - -

Other - 13.7 13.7 13.7 13.7 16.0 16.0

Total 5.7 341.8 344.9 343.6 346.7 367.9 371.1

Discounted values – total (PV 2018 @ 9.5%) 1.6 79.6 80.3 80.0 80.7 85.7 86.4


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The largest cost item and driver of operational expenditure for the centre is salaries and wages, which comprises salaries, plus on costs for all permanent staff, plus casual staff that are not included as part of event and non-event day operations. Operating costs are expected to be higher for Option 2a and Option 2b given the expanded scale and scope of the facilities on site, while the underground car park is expected to be associated with only a minor rise in operational expenditure per annum relative to the at grade car parking options:

• For Option 1a, total operating costs are estimated to be $341.8 million in nominal terms and $79.6 million in present value terms (discounted at 9.5 per cent). For Option 1b, costs are higher due to additional maintenance costs associated with the underground car park. Operating costs under Option 1b are estimated to be $344.9 million in nominal terms and $80.3 million in present value terms.

• For Option 1c, total operating costs are estimated to be $343.6 million in nominal terms and $80.0 million in present value terms (discounted at 9.5 per cent). For Option 1d, costs are higher due to additional maintenance costs associated with the underground car park. Operating costs under Option 1d are estimated to be $346.7 million in nominal terms and $80.7 million in present value terms.

• For Option 2a, total operating costs are estimated to be $367.9 million in nominal terms and $85.7 million in present value terms (discounted at 9.5 per cent). For Option 2b, the costs are higher associated with the higher maintenance costs associated with the underground car park. Operating costs under Option 2b are estimated to be $371.1 million in nominal terms and $86.4 in present value terms.

Under the Base Case, lease costs and operating costs associated with the private 25 metre pool facility are expected to continue over the forecast horizon and are estimated to be $5.7 million in nominal terms and $1.6 million in present value terms (discounted at 9.5 per cent).

3.5.4 Life cycle maintenance costs

In addition to regular repairs and maintenance, major infrastructure assets such as swimming complexes have an ongoing requirement for major capital replacement to keep the venue fit-for-purpose as elements of the venue come to the end of their economic useful lives. Life cycle costs for all of the project options considered have been estimated by Turner and Townsend (refer to Appendix J) and fall within the bounds of our experience of life cycle provision ranges, which are generally 1.5 to 3.5 per cent of the value of the asset replacement value (excl. non-venue construction costs) on average per year over the life of the facility (Table 3-19):

• For Option 1a, total life cycle costs are estimated to be $17.8 million in nominal terms and $2.7 million in present value terms (discounted at 9.5 per cent). For Option 1b, the costs are higher due to additional maintenance associated with the underground car park. Life cycle costs under Option 1b are estimated to be $18.3 million in nominal terms and $2.7 million in present value terms.

• For Option 1c, total life cycle costs are estimated to be $20.1 million in nominal terms and $3.1 million in present value terms (discounted at 9.5 per cent). For Option 1d, the costs are higher due to additional maintenance associated with the underground car park. Life cycle costs under Option 1b are estimated to be $20.6 million in nominal terms and $3.2 million in present value terms.

• For Option 2a, total operating costs are estimated to be $21.6 million in nominal terms and $3.2 million in present value terms (discounted at 9.5 per cent). For Option 1b, the costs are higher due to additional maintenance costs associated with the underground car park. Operating costs under Option 2b are estimated to be $22.2 million in nominal terms and $3.3 million in present value terms.

There are no life cycle maintenance costs associated with the Base Case.

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Table 3-19: Life cycle costs of the new aquatic leisure centre options ($’000 nominal)

Financial years Life cycle costs ($’000)


2017 - 2021 - - - - - -

2022 - 2026 - - - - - -

2027 - 2031 38 50 966 978 41 54

2032 – 2036 10 261 10 337 10 261 10 337 12 962 13 091

2037 - 2041 7 495 8 442 7 957 9 339 8 601 9 091

Total 17 795 18 345 20 104 20 654 21 604 22 236

Discounted values – total (PV 2018 @ 9.5%) 2 725 2 794 3 159 3 228 3 296 3 378


3.5.5 Operating revenue

3.5.5.1 Pricing schedule

The new aquatic leisure centre is assumed to follow other council-operated facilities and adopt a traditional, subsidised pricing model for the aquatic services that are provided. This implies that prices are expected to be fixed over the course peak and non-peak periods and that some subsidy will be provided by the City to ensure accessibility for all members of the local community.

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A review of prices charged at other aquatic leisure facilities (Table 3-20) indicates that the average adult swim price is $6.80 per entry, a child swim is $5.00 per entry and learn to swim approximately $17.50 per week (learn to swim is based on a limited sample). By comparison, a sample of prices at seven more contemporary multi-purpose aquatic leisure centres indicates that the average adult swim price is $7.50 and child entry is $6.00 (including leisure water access).

Table 3-20: Price benchmarking for aquatic facilities

Facility

2017-18 Prices

Adult Swim Child Swim 20 Pass Visit

CK2 Fitness and Aquatic Centre $9.00 $4.50

Cook + Phillip Park $7.50 $5.60 $120.00

Cumberland Swimming Centres* $6.20 $4.20

Fairfield Leisure Centre $9.50 $6.50 $142.00

Guildford Swimming Centre $6.20 $4.20

Hurstville Aquatic Leisure Centre $8.50 $6.50 $130.00

Ian Thorpe Aquatic Centre $7.50 $5.60 $120.00

Macquarie University Sport and Aquatic Centre $6.00 $5.70

Merrylands Swimming Centre $6.20 $4.20

Prairiewood Leisure Centre $9.50 $6.50 $142.00

Prince Alfred Park Public Pool $6.50 $4.90 $104.00

Ruth Everuss Aquatic Centre $6.20 $4.60

Ryde Aquatic Leisure Centre $8.20 $6.30 $137.00

Sydney International Aquatic Centre $8.00 $6.00

Average $7.50 $5.38 $127.86


The assumed pricing model for the new aquatic leisure centre and rationale for the price adopted is summarised in Table 3-21.

Table 3-21: Expected pricing at the new aquatic leisure centre

Service Price assumption (exc GST) Benchmarks / rationale

Casual swimming

Adult per visit 6.8 The price schedule assumed for casual swimming has been benchmarked against other aquatic leisure facilities currently operating across Australia. The prices charged are assumed to be subsidised in line with the pricing models adopted by council-operated facilities.

Child per visit 5.0

Concession per visit 5.5

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Service Price assumption (exc GST) Benchmarks / rationale

Family per visit 19.1

Spectator per visit 2.7

Multi Visit Pass 10 visits 54.5

Membership

Joining fee 60.0

The price schedule for aquatic centre memberships have been benchmarked against other private provides currently operating in Australia and is therefore reflective of ‘market prices’ as opposed to subsidised prices.

Preopening (fortnight) 27.9

Standard (fortnight) 34.9

Concession (fortnight) 27.9

Aquatic (fortnight) 21.9

Aquatic concession (fortnight) 17.5

Junior (fortnight) 27.9

Over 60s (fortnight) 27.9

Casual fitness

Casual gym (per week) 20.5 The price schedule for casual fitness services have been benchmarked against other private provides currently operating in Australia and is therefore reflective of ‘market prices’ as opposed to subsidised prices.

Causal group fitness (per week) 14.5

Other

Lean to swim* Average weekly price 16.82

The price assumption for learn to swim services have been benchmarked against other private provides currently operating in Australia and is therefore reflective of ‘market prices’ as opposed to subsidised prices.

School Programs 10.0 The price schedule for school programs and birthday parties has been benchmarked against other aquatic leisure facilities currently operating across Australia. The prices charged are assumed to be subsidised in line with the pricing models adopted by council-operated facilities.

Birthday parties 27.3

Note: *Average weekly price


Revenue projections were generated based on the attendance profiles outlined in Section 3.4.3 and the price schedules outlined above.34 For each option, attendance and revenue are expected to gradually increase over the course of the first two years of operation reflecting the following:

34 Option 1 and Option 2 both include two separate scenarios with parking at grade and with an underground car park. The projected attendance levels to the new aquatic and leisure centre are assumed to be independent of whether at grade or undercover parking is provided.

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• time required to alert the community of the new facility, including through word of mouth;

• time for people to change their exercise patterns and routines; and

• time for registration and administrative process – for example, time is required to enrol and grade the swimming ability of participants for learn to swim programs.

Consistent with profiles of attendance across both broad project options, a high proportion of revenue generated for the new aquatic leisure centre is expected to be reflect:

• children (and adults) attending learn to swim programs given the current size of the market,

• casual swimmers that take advantage of the broad range of indoor and outdoor aquatic facilities,

• members of the facility that can take advantage of the integrated service offering across all ‘wet’ and ‘dry’ facilities.

Estimated total operating revenue under the Base Case and project options are illustrated in Chart 3-2.

Chart 3-2: Estimated operating revenue, Parramatta aquatic leisure centre options ($m nominal)


The composition of revenue over the analysis period are summarised in Table 3-22.

For Options 1a & 1b and Options 1c & 1d, total operating revenue is estimated to be $361.9 million in nominal terms and $75.4 million in present value terms (discounted at 9.5 per cent). For Options 2a and 2b, the revenue is higher due to the enhanced facilities and higher visitation. Aquatic programs and, in particular, learn to swim programs are expected to be the largest revenue source over the forecast horizon consistent with the anecdotal evidence provided by Swimming NSW during the stakeholder consultation process that the market for these programs is relatively high in Western Sydney.

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Table 3-22: Operational revenue, aquatic leisure centre options ($m nominal)

Revenue item Operating revenue ($m)


Casual Swimming - 66.4 66.4 66.4 66.4 78.7 78.7

Hire - 2.3 2.3 2.3 2.3 2.9 2.9

Centre Memberships - 85.6 85.6 85.6 85.6 134.0 134.0

Casual Fitness - 6.0 6.0 6.0 6.0 6.0 6.0

Aquatic Programs 15.9 182.3 182.3 182.3 182.3 187.5 187.5

Sports Stadium - 0.0 0.0 0.0 0.0 0.0 0.0

Other - 19.2 19.2 19.2 19.2 22.3 22.3

Total 15.9 361.9 361.9 361.9 361.9 431.4 431.4

Discounted values – total (PV 2018 @ 9.5%) 3.7 75.4 75.4 75.4 75.4 90.2 90.2


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3.5.6 Financial impact

The financial impact of each option are outlined in Table 3-23 and annual operating impact over the first ten years of operation are illustrated in Chart 3-3.

Under Option 1a, the reduced scope of facilities and services provided results in the aquatic leisure centre operating at a financial loss over a 30 year time horizon of $61.7 million in net present value terms. This reflects the fact that the facility does not generate any annual operating profits over its useful life to offset the capital costs. Under Option 1b, the capital costs and the annual operating costs are slightly higher due to the presence of an underground car park, with the financial loss over a 30 year time horizon of reaching $68.8 million in net present value terms. Under Option 1c, the reduced scope of facilities and services provided, and the additional cost of a timber roof structure, results in the aquatic leisure centre operating at a financial loss over a 30 year time horizon of $66.3 million in net present value terms. This reflects the fact that the facility does not generate any annual operating profits over its useful life to offset the capital costs. Under Option 1d, the capital costs and the annual operating costs are slightly higher due to the presence of an underground car park, with the financial loss over a 30 year time horizon of reaching $73.3 million in net present value terms.

Under Option 2a, the broader scope of facilities and services provided results in the aquatic leisure centre operating at a modest annual operating profit. The scale of the operating profit is however not a sufficient scale to offset the capital costs. Over a 30 year period, Option 2a generates a financial loss of close to $62.0 million in net present value terms. Under Option 2b, the capital costs and the annual operating costs are slightly higher due to the presence of an underground car park, with the financial loss over a 30 year time horizon of reaching $69.2 million in net present value terms.

Table 3-23: Financial impact (PV 2018 @ 9.5 per cent)


Capital costs ($m PV 2018) - 54.7 61.0 58.5 64.8 63.3 69.7

Life cycle maintenance costs ($m PV 2018) - 2.7 2.8 3.2 3.2 3.2 3.3

Operating costs ($m PV 2018) 1.6 79.6 80.3 80.0 80.7 85.7 86.4

Total Costs ($m PV 2018) 1.6 137.1 144.2 141.7 148.7 152.2 159.4

Total Revenue ($m PV 2018) 3.7 75.4 75.4 75.4 75.4 90.2 90.2

Net Present Revenue (Costs) ($m PV 2018) 2.1 -61.70 -68.80 -66.3 -73.3 -62.00 -69.20

Source: Warren Green Consulting, Turner and Townsend

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Chart 3-3: Annual operating impact (PV 2018 @ 9.5 per cent)

3.5.6.1 Sensitivity analysis

As required under NSW Treasury business case guidelines a sensitivity analysis has been undertaken on key variables. In particular, sensitivity analysis has been undertaken on the assumed capacity level of the facility, on the potential financial implications for the City of adopting an outsourcing model, and the financial impact of not charging subsidised prices for entry and car parking. The financial impact of each scenario is outlined in below.

Increased capacity level of the new aquatic leisure centre

The annual level of attendance (and in turn revenue) to the new aquatic leisure centre will be a function of both demand and supply (or the capacity of the centre). While it is almost certain that the new aquatic leisure centre will reach capacity at some point in the future, the precise point in time at which this occurs, and the number of people that the centre can accommodated, are difficult to accurately assess. In the analysis above, a mixed method approach was adopted to estimate the capacity level of the new aquatic leisure centre based on benchmarking activities and professional judgement and found that the facility will reach capacity after three years of operation. While this methodology aligns with best practice, the fact that there is no clear formula or set of rules to accurately assess the level of capacity based on the facilities associated with the project options implies that there is an inherent degree of uncertainty surrounding the level of capacity at the new aquatic leisure centre and in turn its revenue raising potential. In order to test the sensitivity of the financial impact and operating results to potential variations in the level of capacity, an increase in overall attendance and assumed capacity levels by 20% of the project horizon was modelled.

Under Option 1a, the increased level of assumed capacity helps to ensure that the facility is able to operate at an annual financial profit over the 30 year time horizon. The magnitude of the operating profit is, however, not sufficient to offset the significant capital costs. Under Option 1b, the annual operating profits are slightly lower due to the additional maintenance required of the underground car park, which translates to an additional financial loss over the 30 year time horizon of $7 million in net present value terms. Under Option 1c and 1d, the financial position is worse-off due to the additional expense of the timber roof structure. Under Option 2a, the increased level of assumed capacity helps to ensure that the facility is able to operate at an annual financial profit over a 30 year time. However, the magnitude of this operating profit is not sufficient to offset the significant capital costs. Under Option 2b, the annual operating profits are slightly lower due to the additional maintenance required of the underground car park, which translates to an additional financial loss over the 30 year time horizon of $7 million in net present value terms.

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Outsourcing of management model

The City currently and historically manages their aquatic leisure centre in-house with excellent outputs relative to the market and national benchmarks (such as CERM) for facilities of similar scale and function. As a result, it has been assumed that the City will manage the operation of the facility in-house. This management model however will need to be tested in the future against alternate options including the possible outsourcing of the operational management to a private sector provider.

An outsourced management model could potentially lead to changes to overhead costs that stem from business practice improvements, variations in the number of people employment and/or the wage rate that employees are provided. Hence, in order to test the sensitivity of the financial impact and operating results to potential variations in the operating model, a decrease in total overhead costs by close to 15 per cent over the project horizon was modelled.

Under Option 1a, the reduced operating costs due to the outsourcing model adopted help to ensure that the facility is able to operate at an annual financial profit over the 30 year time horizon. However, the magnitude of this operating profit is not sufficient to offset the significant capital costs which results in financial loss of $49.8 million in present value terms over the assessment period. Under Option 1b, the annual operating profits are slightly lower due to the additional maintenance required of the underground car park, which translates to an additional financial loss over the 30 year time horizon of $7 million in net present value terms. Under Option 1c and 1d, the financial position is worse-off due to the additional cost of timber roof structure. Under Option 2a, the reduced operating costs due to the outsourcing model adopted help to ensure that the facility is able to operate at an annual financial profit over a 30 year time. However, the magnitude of this operating profit is not sufficient to offset the significant capital costs which results in financial loss of $49.1 million in present value terms over the assessment period. Under Option 2b, the annual operating profits are slightly lower due to the maintenance required of the underground car park, which translates to an additional financial loss over the 30 year time horizon of $7 million in net present value terms.

Increase in the price charged for car parking

The financial projections of the new aquatic leisure centre currently assume that car parking will be provided free of charge to users of the facility. Increasing the price charged for parking may help to increase revenue generated from the new aquatic leisure centre and improve its overall financial position. The price charged for parking at the new aquatic leisure centre could be close to $3 per hour based on comparable prices charge for street parking in the local community (see Box 3-3 below). It is important to note however that increasing the price of parking may reduce the attendance level at the centre, which would in turn adversely affect revenue and the financial position. In the scenario below, it has been assumed due to data limitations that there is no change in attendance that result from an increase in car park prices. As a result, the results are likely to overstate the impact that increasing car park prices would have on the financial performance of the facility. Under Option 1a, the increased revenue due to the increase in car park prices helps to significantly boost the annual financial profit achieved over the 30 year time horizon. However, the magnitude of this operating profit is not sufficient to offset the significant capital costs which results in financial loss of $7.9 million in present value terms over the assessment period. Under Option 1b, the annual operating profits are slightly lower due to the additional maintenance required of the underground car park, which translates to an additional financial loss over the 30 year time horizon of $7 million in net present value terms. Under Option 1c and 1d, the financial position is worse-off due to the additional expense of the timber roof structure. Under Option 2a, the increased revenue due to the increase in car park prices helps to significantly boost the annual financial profit achieved over the 30 year time horizon. However, the magnitude of this operating profit is not sufficient to offset the significant capital costs which results in financial loss of $7.1 million in present value terms over the assessment period.

Under Option 2b, the annual operating profits are slightly lower due to the maintenance required of the underground car park, which translates to an additional financial loss over the 30 year time horizon of $7 million in net present value terms.

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Increase in the price charged for car parking and entry

In addition to increasing the price of parking, the new aquatic leisure facility could also charge unsubsidised entry prices for swimming facilities that are more consistent with a market price. The price charged for parking at the new aquatic leisure centre could be close to $12 per visit based on the outcomes of community consultation (see Box 3-2 below). It is important to note however that increasing the price of parking and entry for casual swimming may reduce the attendance level to the centre, which would adversely affect revenue and the financial position. In the scenario below, it has been assumed due to data limitations that there is no change in attendance due to the increase in car park and entry prices for causal swimming. As a result, the results are likely to overstate the impact that increasing car park prices would have on the financial performance of the facility.

Under Option 1a, the increased revenue due to the increase in car park and entry prices helps to significantly boost the annual financial profit achieved over the 30 year time horizon to the point that a financial gain of $17.7 million in present value terms is achieved. Under Option 1b, the annual operating profits are slightly lower due to the additional maintenance required of the underground car park, which translates to an additional financial loss over the 30 year time horizon of $7 million in net present value terms. Under Option 1c and 1d, the financial position is worse-off due to the additional expense of the timber roof structure. Under Option 2a, the increased revenue due to the increase in car park and entry prices helps to significantly boost the annual financial profit achieved over the 30 year time horizon to the point that a financial gain of $22.0 million in present value terms is achieved. Under Option 1b, the annual operating profits are slightly lower due to the additional maintenance required of the underground car park, which translates to an additional financial loss over the 30 year time horizon of $7 million in net present value terms.

Table 3-24: Sensitivity testing of the financial impact (PV 2018 @ 9.5 per cent)


Financial impact

Central scenario 2.1 -61.7 -68.8 -66.3 -73.3 -62.0 -69.2

Increase in capacity 2.1 -46.7 -53.8 -51.3 -58.4 -44.0 -51.2

Outsourced operating model 2.1 -49.8 -56.8 -54.4 -61.4 -49.1 -56.2

Increase in car park pricing 2.1 -7.9 -14.9 -12.5 -19.5 -7.1 -14.2

Increase in car park and entry pricing 2.1 17.7 10.7 13.1 6.1 22.0 14.9

Source: Warren Green Consulting, Turner and Townsend

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3.6 Economic appraisal

3.6.1 Analysis approach The purpose of the economic appraisal is to estimate the total economic benefits associated with each option and estimate the extent to which these benefits may outweigh the relative capital and operating costs for each option. The assessment of the economic viability of project options was undertaken through the use of cost benefit analysis (‘CBA’). This section outlines the approach to the analysis, including the guidelines that were used to structure the approach and assumptions, the key inputs into the appraisal, the base case and option definition, and the sources of information used to estimate the economic impacts.

Cost-benefit analysis is an economic appraisal tool that isolates the incremental costs and benefits of the project options over the evaluation period, relative to the base case scenario, and then uses discounted cash flow analysis to determine the net benefit to society. The cost-benefit analysis of the new aquatic leisure centre project involves the following steps:

• identification of the community of interest (or referent group) for the Project (NSW);

• articulating the “do minimum” Base Case and project options to be analysed;

• identification of relevant incremental economic, social and environmental costs and benefits for the “do minimum Base Case and project options;

• quantification of the identified costs and benefits, where possible;

• comparing and contrasting the quantified costs against the benefits over the evaluation period;

• generating economic appraisal performance measures including the Economic Net Present Value of net benefits (ENPV), Benefit Cost Ratio (BCR) and Economic Internal Rate of Return (EIRR) to evaluate the relative economic impact of each option; and

• sensitivity analysis and scenario testing to assess the sensitivity of performance measures to changes in key variables.

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An overview of the cost-benefit analysis approach for the new aquatic leisure centre is illustrated by Figure 3-10 below.

Figure 3-10: Overview of the methodology used for cost benefit analysis

3.6.1.1 Community of interest

The community of interest of the project is the group of economic agents deemed by the decision maker to be relevant to the analysis, sometimes referred to as the referent group or the scope of the analysis. The first step in conducting the economic appraisal is to strictly define the community of interest, and to identify both those potential bearers or beneficiaries of the incremental costs and benefits that lie within the community of interest, and those that fall outside it (i.e. the non-referent group).

For the purpose of the analysis, the community of interest is considered to be the community of NSW, including residents of the State, locally owned businesses and the NSW Government. This is in line with the relevant guidance from NSW Treasury and leading practice economic appraisal methodology. It follows that those economic agents outside the State of NSW that are bearers or beneficiaries of the costs and benefits of the project are not included in the community of interest.

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3.6.1.2 Appraisal scenario definition

For the purpose of the Business Case, economic appraisal was conducted for six options for the development of an aquatic leisure facility in Parramatta, specifically:

• Option 1A: A project site with a modern aquatic leisure centre with indoor and outdoor facilities and at grade car parking for 212 cars. The new facility would open in September 2020.

• Option 1B: A project site with a modern aquatic leisure centre with indoor and outdoor facilities and underground car parking for 217 cars. The new facility would open in September 2020.

• Option 1C: A project site with a modern aquatic leisure centre with indoor and outdoor facilities, at grade car parking for 212 cars, and a timber roof structure. The new facility would open in September 2020.

• Option 1D: A project site with a modern aquatic leisure centre with indoor and outdoor facilities, underground car parking for 217 cars, and a timber roof structure. The new facility would open in September 2020.

• Option 2A: A project site with a modern aquatic leisure centre with indoor and outdoor facilities, additional outdoor facilities and at grade car parking for 212 cars. The new facility would open in September 2020.

• Option 2B: A project site with a modern aquatic leisure centre with indoor and outdoor facilities, additional outdoor facilities and underground car parking for 217 cars. The new facility would open in September 2020.

For the purpose of the Business Case, and to ensure consistency with NSW Treasury guidelines, these options were compared to a “do minimum” Base Case. Further detail on each option is provided in Section 3.3.

3.6.1.3 Key inputs

The key inputs to the economic appraisal include:

• Key economic appraisal parameters for undertaking discounted cash flow analysis, including discount rates and appraisal periods.

• Demand analysis outputs for each option for the 30 years of operation.

• Capital, operating and maintenance costs as detailed in the financial appraisal.

• Project benefits were calculated based on the demand analysis outputs and quantified by applying economic parameters. These parameters were developed based on literary review and in consultation with NSW Treasury, and are detailed for each benefit stream in Section 3.6.3.

3.6.1.4 Economic appraisal guidelines and parameters

The approach and parameters specified in the cost benefit analysis are consistent with the relevant economic appraisal guidelines, as follows:

• NSW Government Guide to Cost-Benefit Analysis (TPP 17-03): This recently updated guide provides guidance on the cost-benefit analysis of Government initiatives, and promotes a consistent approach to the appraisal and evaluation of public projects, programs and policies across Government.

The core analysis assumptions for the CBA are summarised in Table 3-25.

Table 3-25: Economic appraisal assumptions


Base date for Net Present Value

1 July 2017 Base assumption

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Cash flow timings Annual (financial year) Base assumption

Timing of cash flows End of period (i.e. 30 June) Base assumption

Consumer Price Index (CPI) 2.5 per cent p.a. Average based on Sydney CPI

Real discount rate 7.0 per cent p.a. NSW Treasury

Period of analysis Base Case:

• 2017 to 2050

Options 1a and 1b:



Options 1c and 1d:



Options 2a and 2b:




Turner Townsend

An economic appraisal differs from a financial evaluation which focuses on revenue flows, capital and operating costs for key stakeholders and which excludes externalities or private benefits, for example consumer surplus. The economic appraisal broadens the analysis to include non-market values, and to capture the economic impact on all relevant stakeholders instead of those directly related to the project. Many of these are not financial in nature, and while the economic analysis quantifies impacts in dollars, these are a measure of social welfare, not financial value.

An economic appraisal is an important component of the business case, as it provides decision makers with a complete view of the net socio-economic impacts of the various options, that is, the expected total impact on societal welfare that would result from the project.

This CBA compares and evaluates the direct social welfare impacts of the project options, however does not extend to cover the wider indirect economic impacts that may arise from the project. This is consistent with common economic appraisal methodology. These economy-wide impacts, such as the employment benefits resulting from the project, are discussed in this analysis, but have not been quantified.

3.6.1.5 Identification of costs and benefits

The costs and benefits associated with the project can be divided into social, environmental and economic impacts. They can be further broken down into the following categories depending on the ease with which they can be quantified in market based monetary terms:

• Quantifiable – those impacts which can be readily identified and valued in monetary terms;

• Partially quantifiable – those impacts which can be readily identified and valued in non-monetary terms (e.g. quantifiable in quantities); and

• Non-quantifiable – those impacts which can be identified but not precisely quantified in any meaningful way.

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The identified costs and benefits of the project are outlined in the table below, along with the category of impact and to what extent they are quantifiable. These impacts are then explored further, and where possible quantified, in the following sub-sections (Table 3-26).

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Table 3-26: Costs and benefits considered as part of the economic assessment

Costs/Benefits Description Bearer / Beneficiary Cost category Quantified Rationale/ method

Costs

Planning costs

Cost associated with design, planning and administrative tasks required to demonstrate the feasibility and net community benefits associated with the new aquatic leisure centre.

NSW Community Economic Yes

Based on cost estimates by the quantitative surveyor Turner and Townsend.

Capital costs The (incremental) opportunity cost of resources required to construct and maintain the new aquatic leisure center relative to the base case.


Based on cost estimates by the quantitative surveyor Turner and Townsend.

Operating costs The (incremental) opportunity cost of resources required to maintain the operation of the new facility relative to the base case.


Based on financial estimates provided by Warren Green Consulting.

Loss of current land use benefits

The land proposed for the facility is expected to remain a ‘passive’ park for the coming decades in the base case due to its topography. This community asset will be lost with the development of the facility, which may be associated with some social and environmental costs such as a loss of vegetation and open space for leisure.

NSW Community

Economic / social / environmental Yes Based on the expected value of the

lease provided by PPT.

Broader council costs related to upgrading connectivity and access

If street and infrastructure upgrades are required to support the operation of the new facility, any costs associated with the infrastructure provision will need to be included in the CBA assessment.

NSW Community Economic No

No public works infrastructure is expected to be need to support the operation of the new aquatic leisure centre.

Benefits

Producer surplus

Producer surplus is the difference between the price that a producer receives and the cost of production. Analysts should quantify the benefit wherever possible.

The City, and third party operators

Economic Yes Based on financial projections provided by Warren Green Consulting.

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Travel time savings

Members and learn to swim participants that are assumed to attend neighbouring centers in the base case will receive travel time savings due to the close proximity of the new aquatic leisure centre.

Users Economic Yes

Estimate the average additional travel time required to reach neighbouring centers based on their distance from the local geographic catchment. Use the value of time provided by NSW government guidelines.

Consumer surplus - Active use value of facilities (e.g. swimming)

Induced visitations will be associated with physical, mental, health and social benefits. Users Economic / social /

environmental Yes Estimate the level of consumer surplus from community consultation and market-based estimates; and Utilise the attendance and usage estimates developed by Warren Green Consulting.

Consumer surplus - Active use of ancillary services (e.g. café)

Induced visitations will benefit from the services provided by the café and merchandise store. Users Economic / social /

environmental Yes

Consumer surplus - Active use of car parking facilities

Induced visitations will benefit from the convenience and time savings associated with car parking provisions.

Users Economic / social / environmental Yes

Passive use value (e.g. parents watching)

Passive users (e.g. parents watching their children learn to swim) may benefit from having seating and other facilities to spectate from.

Users / guardians

Economic / social / environmental

No – treated qualitatively

Passive use value is expected to be captured in part through spending on ancillary services such as the café.

Option value for community Local community members may place a value on having the option of using an aquatic leisure centre.

NSW Community

Economic / social / environmental

No – treated qualitatively

The latest Treasury CBA guidelines indicate that: A positive private option value should be excluded because (a) option value is relevant only in very rare cases where there are no substitute services or assets; (b) private option value is likely to be negative where future use is uncertain; and (c) for cultural and recreational services in particular, all private expenditure has an opportunity cost.

Social use value for community

Local community members may place on other people having access to a new modern aquatic leisure centre.

NSW Community

Economic / social / environmental No

The latest Treasury CBA guidelines indicate that: With cultural, natural or environmental assets in

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Non-use value for community (e.g. amenity)

Local community members may benefit from improvements in amenity or land prices associated with the new aquatic leisure centre.

NSW Community

Economic / social / environmental No

particular, it can be difficult to distinguish between and separately estimate the various categories of non-use value and private option value.

Public health benefits to the State

Users of the centre will receive physical and mental health benefits which may reduce public health care costs in the future.

NSW Community

Economic / social / environmental Yes

Adoption of the benefit transfer approach using existing research conducted by the London School of Economics.

Reductions in crime and other social costs

Participation at the centre may result in members of the community being occupied and finding a passion that reduces their likelihood of criminal activity.

NSW Community Economic / social No – treated

qualitatively

While generally accepted, and widely discussed in reviews and reports, a review of the literature revealed that studies making explicit, evidence-based connections between participation in physical activity and either reduced propensity to commit crime, or reduced recidivism, are limited.

Increased productivity and output in the local economy

Participation at the centre may result in members of the community being more productive and less absent from their workplace.


Adoption of the benefit transfer approach using existing research conducted by various research institutions regarding the relationship between physical activity and absenteeism.

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Labour surplus Labour surplus is the difference between a worker’s actual wages and what they are willing to accept (their reservation wage).

Employees of the new aquatic leisure centre

Economic Yes

The latest Treasury CBA guidelines indicate that: if an initiative increased employment, this would only be a benefit if the labour resources were previously unemployed or underemployed. That is, if employment is simply displaced, then it would not be a benefit. Relatively high levels of unemployment within Parramatta suggest that some proportion of staff will have been previously unemployed.

Catalytic benefits - in terms of development

The development of the new aquatic leisure center may help to spur further development and enhancement across the Mays Hill Precinct and broad suburb.

NSW Community Economic / social No – treated

qualitatively

Key council personnel have indicated that no catalytic impacts are expected from the new aquatic leisure centre.

Tourism spending by interstate visitors to events held at the aquatic leisure centre

Events held at the centre may attract interstate / international tourists that will add money to the local economy.

NSW Community Economic No

Warren Green Consulting has advised that the new aquatic leisure centre would not cater for national events.

Residual value

When an asset has not reached the end of its useful life by the end of the project horizon, a residual value may be inferred that measures be based on the lesser of replacement cost and the present value of future benefits.


The appraisal estimates the remaining economic value of the asset using straight line depreciation. The residual value is treated as a benefit in the last year of the economic appraisal.

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3.6.1.6 Economic performance indicators

The final stage of the CBA is a discounted cash flow analysis to compare and contrast the costs and benefits of the project options and Base case over the evaluation period. Benefits and costs are discounted at a rate of 7 per cent (real). Discounting enables comparison of costs and benefits over time, with all aspects of the analysis reported in present value terms.

Consistent with NSW Treasury guidelines, the following economic performance measures are calculated to estimate the economic viability of the project options:

• Benefit Cost Ratio (BCR) – The ratio of quantifiable incremental benefits to quantifiable incremental costs. A BCR greater than one indicates that the benefits of the project exceed the costs of the project over the evaluation period.

• Economic Net Present Value (ENPV) – The difference between the present value of the total incremental benefits and the present value of the total incremental costs. Projects that yield a positive ENPV indicate that the benefits of the project exceed the costs of the project over the evaluation period.

Projects that yield a positive NPV indicate that the incremental benefits of the project exceed the incremental costs over the evaluation period. The NPV measures the overall economic return in relation to the required capital expenditure.

An IRR greater than the seven per cent discount rate (real) recommended by the NSW Treasury guidelines also indicates that the project is economically justifiable, although the IRR can yield ambiguous results if the time stream of costs and benefits is not uniform over time. Given this potential issue, it is only recommended that the IRR is used in conjunction with other measures of economic viability.

The BCR measures the ratio of discounted benefits to discounted costs. A BCR greater than one indicates that project benefits exceed project costs. However, a higher BCR is usually required to ensure some level of built-in contingency against unforeseen increases in capital costs, project delays or scope expansion.

This section outlines the methods used to value the costs associated with the new aquatic leisure centre outlined in Table 3-26.

3.6.2 Project costs The economic appraisal relies on the capital and life cycle cost estimates developed by Turner and Townsend. As described in the financial appraisal, operating costs were developed by Warren Green Consulting based on current operating performance and industry benchmarking analysis. The following sections describe the economic costs associated with the options, including:

• Capital costs – all non-recurrent costs that are expected to be incurred after the economic appraisal period commences; and

• Operating and maintenance costs – all necessary recurrent costs to operate and maintain the asset over the evaluation period.

It is recognised that there may be financial costs associated with the lease or acquisition of land for the new aquatic leisure centre. However, consistent with the principles of economic appraisal, the change in land ownership and use rights is considered a transfer payment, and not included in the analysis.

3.6.2.1 Planning costs

The design, planning and administrative tasks required to demonstrate the feasibility and net community benefits associated with the new aquatic leisure centre, and organise procurement and planning approval prior to the construction phase, all required the use of scarce resources that need to be accounted for within a cost benefit analysis framework.

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These costs were included within the capital cost item ‘profession fees’ – estimated to be 10 per cent of the overall capital cost – and allocated to the 2017 and 2018 financial years prior to the commencement of the construction period.

No planning costs are assumed in the base case.

3.6.2.2 Capital costs

The capital costs provided by Turner and Townsend at 2017-18 prices were converted to present value terms using a 7 per cent discount rate. The estimated present value of the capital costs associated with the project options are summarised in Table 3-27 based on the construction schedule provided by Turner and Townsend that indicates that 10 per cent of construction costs allocated to the 2019 financial year, and 90 per cent of construction costs allocated to the 2020 financial year.

• The total costs associated with construction under Option 1a is estimated to be $61.9 million (in real 2017 dollars). Consistent with the higher cost associated with the development of the underground car park, the capital costs under Option 1b are $69.3 million (in real 2017 dollars).

• The total costs associated with construction under Option 1c is estimated to be $68.3 million (in real 2017 dollars), reflecting the additional cost associated with the

timber roof structure. The capital costs under Option 1d are $75.8 million (in real 2017 dollars), in line with the higher cost associated with the development of the underground car park.

• For Option 2a, the capital costs are estimated to be $71.9 million (in real 2017 dollars) and for Option 2b the cost is $79.5 million.

Table 3-27: Project capital expenditure ($m 2017/18 and present value terms)


Total – real values 0.0 61.9 69.3 68.3 75.8 71.9 79.5

Discounted values – total (PV 2018 @ 7%) 0.0 50.8 57.0 54.5 60.7 59.1 65.4


There are no capital costs under the base case.

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3.6.2.3 Operating and maintenance expenditure

Operating costs were estimated by Warren Green Consulting based on current operating performance, expected visitation and industry benchmark analysis. Annual maintenance costs were developed by Turner and Townsend and reflect the life cycle cost of maintaining the new facilities. The approach to estimating these costs and analysis of cost drivers is outlined in the financial appraisal.

Operating costs The nominal operating costs (excluding staff costs) projected in Section 3.5.3.2 above were converted to present value terms by adopting 2017-18 prices and using a 7 per cent discount rate.

In relation to estimating the economic costs associated with labour resources, the NSW Treasury Guidelines state that:

The cost of labour in a CBA is its opportunity cost, which is the reservation wage – i.e. the lowest wage rate that a worker would be willing to accept for doing a particular job. 35

This guidance implies:

• For those labour resources required to support the operation of the new aquatic leisure centre that transfer from another position, the reservation wage is assumed to be the base salary rate estimated by Warren Green Consulting.

• For those labour resources required to support the operation of the new aquatic leisure centre that were previously unemployed, the reservation wage is assumed to be the current minimum wage at $694.90 per 38 hour week (before tax).36

Table 3-28 below provides an overview of the local labour market conditions within both the Parramatta and Cumberland municipalities based on the 2016 Census data. The data demonstrate that there is a greater degree of spare labour capacity within the two municipalities that are located within close proximity to the new aquatic leisure centre (and therefore would be the principle source of labour), than what is available across NSW and Australia more broadly.

Based on this analysis, it has been assumed that 20 per cent of the labour required to support the operation of the new aquatic leisure centre will have been previously unemployed

Table 3-28: Local labour force conditions, per cent of the labour force

Full-time employed Part-time employed Unemployed

Parramatta 59.9 27.1 8.3

Cumberland 56.9 27.3 9.1

New South Wales 59.2 29.7 6.3

Australia 57.7 30.4 6.9

Source: ABS Census 2016

Under the base case, the costs associated with the facility at Macarthur Girls High School were estimated above in section 3.5.3 to include close to $110,000 per annum (in real terms) in operational costs and $30,000 per annum (in real terms) in lease costs. The total costs associated with facility at Macarthur Girls High School across the 30 year assessment horizon is estimated to be $4.1 million in real terms and $1.4 million in present value terms.

35 NSW Treasury, NSW Government Guide to Cost-Benefit Analysis, 2017 36 Fair Work Ombudsman, Minimum wage fact sheet, 2017

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Lifecycle costs The nominal lifecycle costs projected in Section 3.5.3.2 above were converted to present value terms by adopting 2017-18 prices and using a 7 per cent discount rate.

No life cycle costs are assumed in the base case.

Operating and maintenance expenditure Based on the assumptions outline above, the total operating costs under:

• Option 1a over the projection horizon were estimated to be $226.7 million in 2017-18 prices and $65.2 million in present value terms, while the total operating costs under Option 1b over the projection horizon were estimated to be $229.1 million in 2017-18 prices and $65.6 million in present value terms.

• Option 1c over the projection horizon were estimated to be $229.4 million in 2017-18 prices and $65.7 million in present value terms, while the total operating costs under Option 1d over the projection horizon were estimated to be $231.7 million in 2017-18 prices and $66.0 million in present value terms.

• Option 2a over the projection horizon were estimated to be $244.8 million in 2017-18 prices and $70.3million in present value terms, while the total operating costs under Option 2b over the projection horizon were estimated to be $247.2 million in 2017-18 prices and $70.6 million in present value terms (Table 3-29).

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Table 3-29: Operating and maintenance costs ($m 2017/18 and present value terms)

Base case Option 1a Option 1b Option 1c Option 1d Option 2a Option 2b

Total – real values 4.1 226.7 229.1 229.4 231.7 244.8 247.2

Discounted values – total (PV 2018 @ 7%) 1.4 65.2 65.6 65.7 66.0 70.3 70.6


3.6.2.4 Loss of land use benefits

Where a proposed development or expansion is intended to impede on open space, it is necessary to account for the loss of benefits derived by individuals who utilise the space. The new aquatic leisure centre will occupy Zone 2 of the Mays Hill Precinct which covers approximately 20 855m2 or close to 25 per cent of the Mays Hill Precinct. This implies that that:

• a significant proportion of the original open space will remain available for leisure activities; and

• any costs associated with developing Zone 2 will be associated with possible reductions in access or the permeability of the Mays Hill Precinct as opposed to the complete removal of open space from the area.

There is a significant body of local and international literature that examines the wide ranging benefits of open space (Figure 3-11). The two main ways in which individuals benefit from open space are through the visual amenity of the space and the activities that take place in the area. The main methods used to visual amenity of open space are hedonic pricing and stated preference techniques (McConnell & Walls, 2005).37 Specifically, McConnell & Walls note that:

“Both the revealed and stated preference studies generally show that there is value to preserving most types of open space land uses, but the values tend to vary widely with the size of the area, the proximity of the open space to residences, the type of open space, and the method of analysis. One conclusion we draw from this review is that the extant literature tends to be case study specific. However, it is possible to draw conclusions from the range of studies about the direction of particular effects, how values vary by location and other influences, and the differences among the methodologies used to estimate values.”

37 In the first category are hedonic property value studies in which the open space value is inferred by estimating the sales price or value of a property as a function of measures of proximity to open space and other property and neighbourhood characteristics. In the second are studies that use carefully designed surveys to elicit preferences or values households place on various types of open space amenities.

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Figure 3-11: Detailed benefits of open space

Benefits of open space

Social benefits of open space Open spaces provide a range of social benefits which are increasingly being recognised as important drivers in shaping future communities. Open spaces:

• Connect and build strong communities by providing opportunities for local people to come together for a range of leisure, cultural and celebratory activities;

• Enhance opportunities for social cohesion and inclusion and improve liveability in urban environments by offering affordable recreation opportunities for all community sectors

Health benefits of open space Access to open spaces

• encourages physical activity and enhances physical and mental health;

• helps reduce the risk of developing chronic diseases;

• assists in recovery from mental fatigue; and

• enhances children’s development and well-being.

Environmental benefits of open space Green open spaces provide both aesthetic and environmental benefits, including:

• protection of areas of conservation, biodiversity or cultural heritage value;

• managing climate change impacts by: - providing shade and cooling; - contributing to stormwater management; - contributing to urban heat abatement; and

• reduction of air and noise pollution.

Economic benefits of open space Local, regional and state economies benefit significantly from various types of open spaces. For example, parks are a major drawcard for recreation and tourism industries and significant sources of employment for local communities and flow on economic benefits, while active open spaces serve the same purpose on competition days by attracting participants and spectators beyond the district and this has significant flow on economic benefits.

Source: Parks and Leisure Australia, Open Space Planning and Design Guide, 2013

While a thorough literature review was conducted, no studies where found that provided a robust valuation of (a component) of open space that had the same characteristics that are present in the current context; and would pass the eligibility criteria outlined by NSW Treasury.

As a result, the potential of valuing the quality of open space located in Zone 2 was investigated based on the activities that take place in potential areas of impact. Unfortunately, no data is currently available regarding the usage of the Mays Hills Precinct by the general public.

In the absence of sufficient evidence to utilise the benefit transfer approach or estimate the value of the current land uses of the project site, the expected annual lease cost charged by PPT to the City was used as a proxy for the opportunity cost of the land.

The last annual lease payment from the City to PPT for the previous PWMSC site was $16,375 in 2016. This figure was adjusted to 2017/18 prices and used as an estimate of the annual lease cost for the new project site. Based on the assumptions above, the total lease cost is estimated to be $0.5 million in real terms and $0.2 million in discounted terms across the assessment horizon.

No replacement cost is assumed under the based case.

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3.6.3 Project benefits

The following section describes the economic benefits associated with the project options, including:

• the travel time savings for regular users and learn to swim participants;

• the consumer surplus resulting from the induced visitations to the new aquatic leisure centre;

• the estimated producer surplus resulting from the operation of the new aquatic leisure centre;

• the estimated labour surplus resulting from the additional labour resources required to support the operation of the new aquatic leisure centre;

• public health and productivity benefits stemming from improved health and fitness of users of the new aquatic leisure centre;

• the estimation of residual values at the end of the evaluation period;

• avoided operational and lease costs of the interim facility at Macarthur Girls High School; and

• a description of other qualitative benefits.

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3.6.3.1 Travel time savings for regular users and learn to swim participants

As outlined above, regular users and learn to swim visitors to the new aquatic leisure centre are expected to attend neighbouring aquatic leisure centres in the base case and are therefore assumed not to receive incremental consumer surplus and health benefits.38 Instead, these members of the community are expected to receive travel time savings due to the close proximity of the new aquatic leisure centre.

The table below provides the details of a select number of alternative swimming centres and learn to swim facilities within a 10 kilometre radius of Parramatta Park. Based on the details of these centres, and the extended list of alternative learn to swim facilities provided in the ‘Interim Recreational Swimming Pool Management Plan for the PWMSC’ prepared by INSW, the average travel distance of the range of alternative learn to swim facilities and swimming centres from Parramatta Park is estimated to be 10km. The additional travel times associated with visiting neighbouring centres in the base case were estimated based on travel time information provided by Google Maps.

Table 3-30: A select number of alternative learn to swim facilities and acquatic facilities within a 10 kilometre radius of PWMSC

Swimming schools Location Months of operation Assessment of capacity Estimate travel distance from PWMSC

MySwim Bass Hill 106 Johnston Road, Bass Hill Open all year Operators have confirmed capacity to accommodate learn to swim students. 14km

Swim Academy Baulkham Hills

Waves Fitness and Aquatic Centre, 44 Mileham Avenue, Baulkham Hills Open all year Operators have confirmed capacity to

accommodate learn to swim students. 10km

Aqua Learn to Swim Blacktown

Blacktown Aquatic Centre, 4 Boyd Street, Blacktown Open all year Operators have confirmed capacity to


Bankstown Swim School Birrong

Birrong Leisure Centre, Cnr Gascoigne & Wellington Roads, Birrong Open all year Operators have confirmed capacity to


Swimming centres Location Months of operation Assessment of capacity Estimate travel distance from PWMSC

38 This includes any consumer surplus for car parking facilities provided in the project case(s) due to the fact almost all neighbouring learn to swim facilities and swimming centers provide free parking. For more information, please see: http://www.infrastructure.nsw.gov.au/media/58725/Interim%20Recreation%20Swimming%20Pool%20Management%20Plan_Version%20A%20Final.pdf

http://www.infrastructure.nsw.gov.au/media/58725/Interim%20Recreation%20Swimming%20Pool%20Management%20Plan_Version%20A%20Final.pdf

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Granville swimming centre Enid Avenue, Granville Autumn/Winter (from 4 Apr)

Summer (from 4 Oct)

Cumberland Council have confirmed that Granville Swimming Centre has

capacity to accommodate a range of users 7km

Wentworthville swimming centre 115 Dunmore Street, Wentworthville Closed April - September

Cumberland Council have confirmed that Wentworthville Swimming Centre

has capacity to accommodate a range of users

4km

Baulkham Hills Squash and Fitness Centre 14 Hill St, Baulkham Hills Open all year Operators have confirmed capacity to

accommodate a range of users. 10km

Sydney Olympic Park Aquatic Centre

Olympic Boulevard, Sydney Olympic Park Open all year Sydney Olympic Park Authority confirmed

that they have capacity to accommodate a range of users

12km

Source: INSW, Closure of Parramatta Swimming Centre - Interim Recreation Swimming Pool Management Plan, March 2017

The table below presents the estimated average travel time savings for regular users and learn to swim visitors to the new aquatic leisure centre and the aggregate level of travel time savings expected in the two broad project options. The analysis is underpinned by the following assumptions:

• All regular users and learn to swim visitors to the new aquatic leisure centre are assumed to be drawn from a geographic catchment within a 3km radius of the PWMSC;

• Regular users and learn to swim participants are assumed to be evenly distributed across the geographic catchment and on average have a travel distance to the new aquatic leisure centre of 2km;

• Regular users and learn to swim participants that attend the facility at MacArthur Girls High School receive no travel time savings;

• The value of time for private trips is $17.95 per hour in 2017/18 terms. 39

Overall, members, learn to swim, and regular swim visitors to the new aquatic leisure centre (at capacity) are expected to receive $5.4 million per annum in travel time savings in real terms under Option 1 and Option 2.

39 Transport for NSW, Principles and Guidelines for Economic Appraisal of Transport Investment and Initiatives Transport Economic Appraisal Guidelines, 2013

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Table 3-31: Estimated level of travel time savings for regular users and learn to swim participants under Option 1 and Option 2

Average travel times in the project case(s) Average travel times in the base case(s)

Travel mode Mode share Average travel distance per visit

Average travel time per visit Mode share Average travel distance per

visit Average travel time

per visit

share km min share km min

Car 0.8 4 13 0.9 16 40

Walk / active transport 0.1 800 10 - - -

Bus 0.1 4 24 0.1 16 50

Total / average 1.0 3.9 14 1.0 16 42

Visitor cohort

Option 1 at capacity Option 2 at capacity

Visitations Average travel time savings per visit

Aggregate value of travel time savings Visitations Average travel time

savings visit Aggregate value of travel time savings

number min $ million number min $ million

Members 162,960 28 1.4 162,960 28 1.4

Learn to swim participants 329,600 28 2.8 329,600 28 2.8

Regular swimmers 133,791 28 1.2 133,791 28 1.2

Total 626,351 28 5.4 626,351 28 5.4

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3.6.3.2 Consumer surplus for induced visitations

For those visitations to the new aquatic leisure centre in the project cases that are induced, two sources of consumer surplus were identified, namely:

• surplus resulting from visitor use of the swimming and health facilities; and

• surplus gained from visitor use of the car park.

Consistent with Treasury guidelines, the private use value received by visitors to the new aquatic leisure centre is measured by the consumer surplus that they receive each visit. Consumer surplus is the net benefit that accrues to attendees and is defined as the difference between what people are willing to pay to visit the aquatic leisure centre, compared to what they actually pay. It is illustrated graphically below. The downward sloping demand curve represents the differing level of demand at different ticket prices. The total amount visitors are willing to pay is represented by the entire area under the demand curve. At ticket price P*, there would be Q* tickets purchase and the total ticket revenue would be equivalent to the square shaded area (P* x Q*). The consumer surplus is the amount consumers would be willing to pay, less the amount they actually pay. This is represented by the triangular shaded area below the demand curve and above the price point in Figure 3-12 below.

Figure 3-12: Estimating consumer surplus

Consumer surplus – active use value of facilities Council-operated aquatic leisure centres typically operate based on a subsidised pricing model. For example, the PWMSC previously provided a subsidy of $5.16 for a casual swim in 2015-1640, while CERM calculated that the average subsidy provided by aquatic leisure facilities across NSW was $4.31 in 201641.

40 Warren Green Consulting 41 Cumberland City Council, Net Operational Cost / Cost per person/ CERM Benchmark for like Centers, 2016

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The price schedule for swimming facilities of the new aquatic leisure centre is also based on an assumption of a subsidised price of admission, which implies that the projected entry price is not a robust indicator for the community members’ willingness to pay.

Willingness to pay for a good or service can be estimated a number of different ways including the benefit transfer method and direct stakeholder consultation. The City did extensive stakeholder consultation with the local community prior to the design of the project options that included a series of questions regarding the willingness to pay for aquatic leisure services. Based on the findings of the consultation, it is assumed that (the average) community member’s willingness to pay for swimming facilities is $12.00 (Box 3-1). This is broadly in line with what the unsubsidised price would have been at the PWMSC. Given the price assumptions outlined above, this finding suggests that there will be a consumer surplus of approximately $5 per visit for casual users of the swimming facilities.

Warren Green Consulting has assumed in conducting the financial and operational analysis that the other services provided by the new aquatic leisure centre including the gymnasium and the learn to swim program are expected to be operated under a more competitive pricing model i.e. prices are more reflective of market prices. The adoption of this model implies that the level of consumer surplus for casual gymnasium visits are expected to be less than that estimated for swimming services. It has therefore been assumed that the level of the consumer surplus for learn to swim participants and gym users is $2.00 per visit.

Box 3-1: Community consultation, wiliness to pay for a new aquatic leisure centre

Results of focus group

While a small number were concerned about the price of the facility, the majority were prepared to pay more for a facility with a broader offering and more amenities.

The average suggested entry fee for the different options were:

• $5.50 (range from $4.00 – $10.00) for a Traditional Pool,

• $9.30 (range from $5.00 – $20.00) for a Modern Pool, and

• $14.90 (range from $7.00 – $25.00) for a Modern Aquatic Complex.

Most participants desired a state-of-the art, multi-purpose facility with activities for all age groups because they envisioned this sort of facility as the pool of the future, and because they felt it was more suitable for the growing area. Most participants associated this type of facility with the Modern Aquatic Complex option.

Results of online survey

Similar to the focus groups, participants of a separate online survey indicated that they were willing to pay ‘a little extra’ for admission, with respondents currently paying an average of $8.70 for single entry at their current facility.

Source: Newgate, Community Consultation Report, 2017

Table 3-32 provides estimates of the annual level of consumer surplus based on the capacity level of attendance provided by Warren Green Consulting and the consumer surplus assumed for each of the service lines in real prices.

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Table 3-32: Annual level of consumer surplus for induced visits to the facility (at capacity)

Services Attendance at capacity (no.) Consumer

surplus per visit

Aggregate surplus per annum ($’000)

Option 1 Option 2 Option 1 Option 2

Membership - 92,820 5 - 464.1

Casual Swimming 84,212 113,135 5 421.0 565.6

Casual Fitness 4,628 4,628 2 9.2 9.2

Learn to Swim - - 2 - -

Schools 30,000 30,000 5 150.0 150.0

Functions & Parties

4,889 8,260 5 24.4 41.3

Total 123,729 248,843 - 605 1,230

The level of consumer surplus generated from subsidised swimming services over the 30 year assessment:

• Under Options 1a, 1b, 1c, 1d consumer surplus is estimated to be $16.4 million in real terms and $5.5 million in present value terms; and

• Under Options 2a and 2b is estimated to be $35.7 million in present value terms reflecting the large scope of facilities and higher levels of attendance, and $8.4 million in present value terms.

No (or marginal) consumer surplus is estimated to be received by learn to swim participants or casual swimmers that use the Macarthur Girls High School facility under the base case as: the learn to swim programs and casual swimming will be held at an outdoor pool with limited facilities and operating times; and the prices charged are assumed to be similar to the price schedule in the project case(s).

Consumer surplus - Active use of car parking facilities The project options provide users with approximately 212 at grade car parks (under Options 1a, 1c and 2a) or 217 underground parks (under Options 1b, 1d, and 2b) free of charge.42 With the car parking being provided free of charge, a consumer surplus will be received by induced visitors to the new aquatic leisure centre. In assessing the value associated with this free car parking provision it is noted that: the stakeholder consultation report produced by Newgate indicated that ‘an entry fee and parking fee is anticipated’, implying that users of the new aquatic leisure centre may be willing to pay for car parking services that enable quick and easy access to the aquatic leisure facility. Further, there are a large number of existing paid parking facilities across the Parramatta CBD and on-street parking involves purchase of a paid ticket. These factors highlight the strong demand for car parking in the area. Estimating the value of the car park service provided to users requires an assessment of (i) the number of people that are expected to use the car park; (ii) the average time spent in the car park; and (iii) their willingness to pay for the services (per hour).

Estimated car park usage The tables below provide an overview of the expected usage patterns of visitors to the aquatic leisure facility and in turn their demand for car parks across the day. The analysis indicates that based on the assumption that 80 per cent of (non-school) users commute to the facility by car, and that on average, two people share a car:

• Under Option 1, 65,989 cars will enter the car park per annum from induced visits; and

• Under Option 2, 130,918 cars will enter the car park per annum from induced visits.

42 It is important to note that the car park is not intended to be cross-subsidised in any way by elevated admission prices to any of the facilities offered.

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Table 3-33: Car park usage – Option 1a, Option 1b, Option 1c, and Option 1d

6am to 9am

9am to 12 noon 12 noon to 3pm 3pm to 5.30pm 5.30pm to

8pm 8pm to 9pm Total

Attendance

Membership - - - - - - -

Casual swimming 21,053 4,211 12,632 8,421 33,685 4,211 84,212

Casual fitness 1,388 231 463 0 2,545 0 4,628

Learn to Swim - - - - - - -

Schools 0 12,000 12,000 6,000 0 0 30,000

Function and parties 0 1,956 978 1,956 0 0 4,889

Car park usage

Estimates Total visits 22,441 18,398 26,072 16,377 36,230 4,211 123,729

Estimated visits by car 17,953 14,718 20,858 13,101 28,984 3,368 98,983

Estimated cars per annum

11,969 9,812 13,905 8,734 19,323 2,246 65,989

Estimated Cars per day 33 27 38 24 53 6 181


Table 3-34: Car park usage – Option 2a and Option 2b

6am to 9am



Attendance

Membership 23,205 13,923 9,282 4,641 37,128 4,641 92,820

Casual swimming 28,284 5,657 16,970 11,314 45,254 5,657 113,135

Casual fitness 1,388 231 463 0 2,545 0 4,628

Learn to Swim - - - - - - -

Schools 0 12,000 12,000 6,000 0 0 30,000

Function and parties 0 1,956 978 1,956 0 0 4,889

Car park usage

Estimates Total visits 52,877 33,767 39,693 23,910 84,927 10,298 245,472

Estimated visits by car 42,302 27,013 31,754 19,128 67,942 8,238 196,378

Estimated cars per annum

28,201 18,009 21,170 12,752 45,295 5,492 130,918

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6am to 9am



Attendance

Estimated Cars per day 77 49 58 35 124 15 360


Average time spent per visit Table 3-35 below outlines Victoria University’s estimate of the distribution of time spent by users at Victorian aquatic centres. Without equivalent data for NSW, it has been assumed that the distribution of time spent at the new aquatic leisure in Parramatta is the same as that recorded by Victoria University, and that the average time spent in the car park is 90 minutes per visit.

Table 3-35: Estimated time spent by users at Victorian aquatic centres

Time span Frequency Per cent

Less than 30 minutes 4 0.3

30 minutes to less than one hour 409 29.8

One hour to less than 90 minutes 729 53.1

90 minutes to less than 2 hours 170 12.4

2 hours or more 60 4.4

Total 1,372 100.0


Willingness to pay for parking In order to assess the level of consumer surplus per use of the car park, it is important to determine how much users would be willing to pay for the service. There are a number of methods that can be applied to estimate the willingness to pay of community members including stakeholder consultation, and using a market price as an approximation for users willingness to pay. While extensive consultation was conducted prior to the development of the business case, specific questions regarding the willingness of people to pay for car parking were not included. For this reason, the willingness to pay for at grade car parking to users of the new aquatic leisure centre is estimated by the current price schedule that is provide by the City of Parramatta Box 3-2. Based on this data, it is assumed that the willingness to pay and the consumer surplus for the parking services provided by the new aquatic leisure centre is $3.00 per hour. Underground car parking to users of the new aquatic leisure centre is estimated by the current price schedule of multi-level car park rates within Parramatta Box 3-2. Based on this data, it is assumed that the willingness to pay and the consumer surplus for the parking services provided by the new aquatic leisure centre is $4.00 per hour.

Box 3-2: Cost of parking in Parramatta

Street parking

The City of Parramatta advertises the following price schedule for metered street parking in Parramatta.

• $3.50 CBD (Central)

• $2.50 North Parramatta (north of Parramatta River, except Church Street and the southern part of the CBD between Church Street, Parkes Street, the railway line and Raymond Street)

• $1.50 after 6pm and all day Saturday for operating meters

• $1.50 per hour where there is 10-hour parking or all day parking

A maximum parking fee of either $9 00 or $7 50 per day applies on 'all day' and '10-hour' on-street metered

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Source: Information available online at: https://www.cityofparramatta.nsw.gov.au/living-and-community/parking-and-transport/car-

parks

The estimated level of surplus from car parking facilities Table 3-36 below outlines the estimated consumer surplus from car parking per annum based on the estimates of car park usage, time spent and consumer surplus levels per user for each of the broad options under consideration. The number of car park visits are not assumed to be affected by the presence of at grade versus underground parking, though are expected to vary across the two broad project options.

https://www.cityofparramatta.nsw.gov.au/living-and-community/parking-and-transport/car-parks

https://www.cityofparramatta.nsw.gov.au/living-and-community/parking-and-transport/car-parks

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Table 3-36: The level of consumer surplus from parking, (2017/18 prices)


Induced annual car park usage (no.) 65,989 65,989 65,989 65,989 130,918 130,918

Average time spent (mins) 90 90 90 90 90 90

Consumer surplus per hour ($) 3 4 3 4 3 4

Consumer surplus per annum (at capacity) ($m) 0.30 0.40 0.30 0.40 0.59 0.79

Total – real values ($m) 11.8 13.2 11.8 13.2 31.1 35.0

Discounted values – total (PV 2018 @ 7% $m) 3.9 4.4 3.9 4.4 7.2 8.1

No consumer surplus is assumed under the base case due to the assumption that no additional free parking will be provided by the City.

3.6.3.3 Producer surplus

Producer surplus arise when the factors of production (labour and capital) are in excess of their opportunity cost. The direct producer surplus is the estimated net surplus resulting from the operation of the facility, based on total revenue less costs (excluding life cycle maintenance costs). It is important to note that any additional producer surplus resulting from expenditure by NSW residents is not generally considered a benefit of a project or proposal under investigation, as this represents a transfer of economic activity within the community of interest. For example, spending at the new aquatic leisure centre may be transferred from neighbouring aquatic centres in the base case. Ordinarily, it would be expected that some proportion of the operating profits would be expected to ‘leak’ outside of the NSW to business and capital owners that operate interstate or overseas. In the current context, however, 100 per cent of the operating profits due to the new aquatic leisure centre will likely accrue to NSW ‘residents’ including the Council and the café operator.43 The additional operating surplus that remains within the State is considered a benefit of the new aquatic leisure centre.

Estimating the precise proportion of the producer surplus that would ordinarily flow outside of the State is difficult due to data limitations. For the purpose of the analysis, it is assumed (a priori) that an extra 20 per cent of the incremental producer surplus generated by the project options is likely to stay within NSW than what would have otherwise occurred.44 Table 3-37 below provides the estimate of the producer surplus generated by the project options and base case based on the assumptions outlined above, and the revenue and operating costs estimated developed by Warren Green Consulting and the life cycle cost estimates developed by Turner and Townsend.

43 It is assumed for the purpose of this analysis that the café operator will be owned by local residents. This is consistent with the expected size of the operator (i.e. 4 FTE employees). 44 This assumption has accounted for the assumption that members and learn to swim participants are expected to attend neighbouring centers in the base case, which are assumed to be locally operated and owned.

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Table 3-37: Producer surplus ($m 2017/18 and present value terms)


Revenue – real values 15.9 206.1 206.1 206.1 206.1 246.5 246.5

Costs (excluding life cycle maintenance costs) - real

7.3 216.7 218.6 217.9 219.9 233.2 235.2

Producer surplus – real values 8.6 -10.6 -12.5 -11.8 -13.8 13.3 11.3

Producer surplus – benefit due to project

1.4 - - - - 3.0 2.6

Discounted values – total (PV 2018 @ 7%)

0.4 - - - - 1.0 0.8

Source: Turner and Townsend and Warren Green Consulting

3.6.3.4 Labour surplus

Labour surplus benefits arise when a project improves the employment outcomes of workers within the NSW economy. Labour surplus is the difference between the wages earned by a worker, and the opportunity cost of their time (the minimum amount they would be willing to accept in order to work). Benefits from labour surplus can take the form of supranormal salaries and wages, additional jobs within the economy that are not displacing other jobs elsewhere, additional hours worked or additional non-monetary benefits (such as job satisfaction) accruing to NSW workers.

To calculate the labour surplus generated from the project, the opportunity cost of that labour needs to be taken into account. There are a number of methodologies for estimating this opportunity cost depending on the expectation of what individuals time would be used for under the status quo:

• in situations where incremental worker hours are displacing hours worked elsewhere, the opportunity cost is the foregone production from the displaced hours, measured by the wage cost of the displaced hours. In this case the opportunity cost can be relatively high, and therefore the corresponding labour surplus benefit is minimal;

• in situations where incremental worker hours represent additional hours or new jobs in the economy, the opportunity cost can be approximated by the minimum wage.

Based on the analysis presented above in 3.6.2.3 it has been assumed that 20 per cent of labour cost associated with the incremental expenditure resulting from the project represents incremental worker hours, with the remainder representing displaced worker hours. The displaced worker hours are assumed to deliver only marginal labour benefits and are therefore not quantified.

Table 3-38 below provides the estimate of the labour surplus generated by the project options and base case over the assessment period based on the assumptions outlined above, and the salary costs estimated by Warren Green Consulting. No labour surplus is assumed in the base case.

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Table 3-38: Labour surplus ($m 2017/18 and present value terms)


Labour surplus – real values - 37.1 37.1 37.1 37.1 39.7 39.7

Discounted values – total (PV 2018 @ 7%) - 12.5 12.5 12.5 12.5 13.4 13.4

Source: Warren Green Consulting, Australian Bureau of Statistics

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3.6.3.5 Public benefits including reduced cost of health care to NSW community and greater productivity levels

Within a cost benefit analysis framework, users of the new aquatic leisure centre are expected to obtain private health benefits from the use of the facility. These benefits are reflected in users’ willingness to pay. In addition to these private health benefits, there are other public benefits from users improving their health and wellbeing such as health care cost savings including government expenditure on Medicare and reduced absenteeism. This section examines these broader public health benefits.

The health benefits from physical activity are well understood within society, and the literature suggests that there is also substantial evidence of significant health impacts from physical activity. These benefits result from physically active persons having:

• a lower risk of being affected by a number of chronic diseases, including cardio-vascular diseases, cancers, dementia and diabetes; and

• greater mental health and mental well-being outcomes.

These greater health outcomes then deliver the following benefits:

• health system benefits as a result of a lower incidence of disease, including lower wait times, less congestion and health cost savings; and

• personal health benefits accruing to those persons with a lower risk of disease and accidents, who have a greater quality of life.

Some of these health outcomes are investigated in further detail below.

Literature review of public health savings

Cardiovascular disease

Cardiovascular disease (CVD) includes a range of diseases involving the heart and blood vessels. The most common types of CVD in Australia are coronary heart disease (CHD), stroke and heart failure. CHD is the leading cause of death in Australia, while stroke is the third leading cause of death. A review of the health literature clearly demonstrates physical activity results in a significant risk reduction for CVD.

For example, the 2011 Australian Burden of Disease Study identifies physical inactivity as contributing to 32.8 per cent of the burden of coronary heart disease, and 18.8 per cent of the burden of stroke. This is supported by the report published by the Sport 2000 Taskforce, Shaping Up: a review of Commonwealth involvement in sport and recreation in Australia, which outlines that, for sedentary people in comparison to those who are even moderately active:

• there is a 20 to 100 per cent higher risk of experiencing a cardiovascular event; and

• there is a 33 to 67 per cent higher risk of experiencing certain types of stroke.4

The review of literature undertaken as part of the development of Social Return on Investment in Sport: A participation wide model for England, found that the risk of CHD and stroke is reduced by an average of 30 per cent (range 11 to 52 per cent) due to participation in sport and exercise at moderate intensity in male and female adults.45

A 2006 evaluation of the evidence of the health benefit of physical activity undertaken by Warburton et al. reviewed a number of longitudinal studies into the relative risk of death from a number of specific diseases including CVD and found that those who reported higher levels of physical activity and fitness had a reduced relative risk of between 20 per cent – 35 per cent of dying from CVD. This study also found that the relative risk reduction has been increasing over time, and that it varies across age cohorts and gender. For example, physically inactive middle-aged women experience a doubling of mortality from CVD than those considered physically active.46

45 Sport Industry Research Centre, Social Return on Investment in Sport: A participation wide model for England, 2016. 46 Warburton, Nicol, Bredin, Health benefits of physical activity: the evidence, 2006

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Mental Health and Wellbeing

Wellbeing is variously described as life satisfaction, happiness and self-esteem. Valuing wellbeing is a new area of research attracting significant international interest. The London School of Economics and Political Science is at the forefront of this research, and has produced a range of reports on this topic. Importantly, values derived using the latest methods (the Wellbeing Valuation approach) can be used in cost-benefit analysis models.47

In an Australian setting, a qualitative study undertaken in 200248, which analysed the involvement, experience and outcomes of residents of two small rural towns in Victoria found that physical activity was central to the sustenance of the wellbeing of residents in these towns, and that due to sport being one of the only community activities available in the towns:

“….any threat to the viability and sustainability of rural sporting organisations (which currently help to balance other negative influences on rural health) must be considered as potentially disastrous.”

This suggests that sport and recreation could play an even more important role in wellbeing in rural communities.

Similarly, a 2014 study by Kremer et al. found that higher levels of physical activity (and lower levels of screen-based leisure time) were associated with lower depressive symptoms. The types of physical activity observed and analysed in the study included outside of class activity, school-based physical education, and involvement in school and extracurricular sports teams. Similarly, meeting recommended guidelines for physical activity were also independently associated with lower depressive symptoms.49

This relationship is supported across adulthood. While the level of impact may differ for different means of exercising, those who exercise have better mental health and wellbeing outcomes. A longitudinal study of 1 042 people aged over 65, over a period of 8 years, identified an association between lower levels of outdoor / leisure activities and propensity to develop depression 4 years later (Morgan & Bath, 1998).50

Anecdotal evidence of the incremental health benefits of aquatic leisure facilities

In assessing the health benefits of the new aquatic leisure centre it is important to consider the potential profile and characteristics of users. For example, the incremental health benefits to users are likely to be significant if they attend the aquatic leisure centre regularly and would otherwise do little physical activity. On the other hand, the incremental health benefits are likely to be more modest if users have an active and healthy lifestyle outside of the time spent at the aquatic centre and use swimming, for example, to supplement other forms of exercise.

Anecdotal evidence collected by the Victorian University from users of Victorian aquatic leisure centres suggests that users tend to live active lifestyles that include walking, and other forms of exercise including gardening and jogging (Table 3-39).51 As a result, the new aquatic leisure centre is likely to increase the overall level of exercise of users as opposed to transitioning people form an inactive to an active lifestyle.

Table 3-39: Participation in moderate or vigorous physical activity, per cent of respondents

Question Never Monthly 1 to 2 days p/ w 3 to 4 days p/ w 5 to 7 days p/ w

How often do you typically take part in moderate to vigorous activity?

5.0 7.2 28.2 42.4 17.2

47 Department for Culture Media & Sport, Quantifying the Social Impacts of Culture and Sport, April 2014 48 Townsend, M., Moore, J. & Mahoney, M. (2002). Playing their part: the role of physical activity and sport in sustaining the health and well-being of small rural communities, International electronic journal of rural and remote health research, education, practice and policy, 2(1), 1-6. 49 Kremer P., Elshaug C., Leslie E., Toumbourou J.W.4, Patton G.C., & Williams J. (2014). Physical activity, leisure-time screen use and depression among children and young adolescents, Journal of Science and Medicine in Sport, 17(2), 183-187. 50 Morgan and Bath, Customary physical activity and physical health outcomes in later life, 1998 51 Victoria University, Community Benefits of Victorian Aquatic and Recreation Centre, April 2014

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Question Never Monthly 1 to 2 days p/ w 3 to 4 days p/ w 5 to 7 days p/ w

How often do you typically take walks for exercise? 9.6 19.2 35.0 21.3 14.9

How often do you typically engage in exercise other than walking, e.g., jogging, cycling, active sports, activities at the gym or leisure centre, use of home gym, etc.?

13.2 12.7 30.4 31.0 12.7

How often do you typically work in the garden or yard at home?

18.5 37.3 33.3 7.6 3.2

How often do you typically engage in moderate or vigorous physical activity at your work?

57.9 13.2 15.1 9.5 4.3

Source: Victoria University, Community Benefits of Victorian Aquatic and Recreation Centre, April 2014 The proposition that the new aquatic leisure centre is likely to increase the overall level of exercise of users as opposed to transitioning people form an inactive to an active lifestyle is supported by anecdotal evidence collected by the Victorian University from users of Victorian aquatic leisure centres that indicated that in the absence of access to an aquatic leisure centre, users indicated that they would not participate in as much physical activity (Table 3-40)

Table 3-40: Estimated economic and social benefits of users of Victorian aquatic leisure centres







If I could not come to this centre I would not participate in as much physical activity 3.26 4 1.371


Note: Based on Likert scale of Strongly disagree (1) to Strongly agree (5).

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Quantification method

In order to quantify the public health benefits including reduced costs of health care to NSW community it is necessary to determine:

• the number of induced people (as opposed to induced visits) that attend the new aquatic leisure centre;

• the induced number of people that attend the new aquatic leisure centre regularly enough to receive health benefits (For the purpose of this analysis it is assumed that users that attend the centre once or more per week will receive health benefits from the exercise undertaken); and

• an estimate of the health benefits and productivity benefits per person.

The number of people that attend the leisure centre

Table 3-42 shows the number of regular induced swimmers and gym users based on the analysis presented in Section 3.4.4.3 above. It is assumed that 90 per cent of induced users will attend the new aquatic leisure centre more than once per week. As a result:

• Under Option 1, 856 swimmers and 279 gym users visit the new aquatic leisure centre more than once per week;

• Under Option 2, 1,066 swimmers and 398 gym users visit the new aquatic leisure centre more than once per week;

An estimate of public health care savings per person

One of the most comprehensive studies into the expected health care reductions due to physical activity was produced in 2014 by the London School of Economics (LSE) for the Department for Culture, Media and Sport (DCMS). LSE analysed data from ‘Understanding Society – The UK Household Longitudinal Study’ to investigate the relationship between self-reported health outcomes and other characteristics including sport participation using statistical regression techniques.

The report found a clear relationship between:

1. sports participation and self-reported health outcomes; and in turn

2. self-reported health outcomes and the (government subsidised) visits to medical practitioners

In particular, participation in sports was found to increase the likelihood of good health outcomes among community members, though there is not a perfect correlation between the two variables.

• People that take part in physical fitness are 9.7 per cent more likely (all else constant) to report good health outcomes, while people that take part in swimming are 4.8 per cent more likely (all else constant) to report good health outcomes.52

• People who rate themselves as having good health outcomes (i.e. four or five for self-reported health) were found to be 35 per cent less likely to visit a general practitioner (GP) six or more times per year. GP visits were reported to cost the government on average close to £30 per visit.

Overall, the expected public health savings associated with fitness and swimming were estimated based on the LSE report to be close to $AUD120 and $AUD 60 per person per annum in nominal terms. The authors noted that the estimates potentially understate the overall public health savings from sports participation due to the fact that the methodology does not cover the full range of medical services that are subsidised by the Government.

Table 3-41: Estimated cost savings for NHS (UK) from sport participation

Sport Probability impact (%) NHS cost saving (£ pa)

All sports 14.1 97.71

Team sports 7.6 52.67

52 Self-reported health was measured on a scale of 1 ('very poor') to 5 ('excellent'). LSE formed a binary variable that takes on 1 if self-reported health = 4 or 5 and 0 otherwise. The former is referred to in this report as a ‘good health outcome’.

https://www.understandingsociety.ac.uk/

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Sport Probability impact (%) NHS cost saving (£ pa)

Individual sports 12.9 89.40

Fitness 9.7 67.22

Football 4.9 33.96

Swimming 4.8 33.26

Cycling 9.2 63.76

Source: Department for Culture Media & Sport, Quantifying the Social Impacts of Culture and Sport, April 2014

Note: These are per person cost saving estimates

Based on the analysis above, the table below provides an estimate of the public health benefits associated with the number of regular induced users across both project options based on attendance levels at capacity (2023).

Table 3-42: Estimated public health care savings for induced visitors at capacity (2023)

Users of aquatic leisure centre Option 1 Option 2

Swimmers

Total swimming visitors to the new aquatic leisure centre (no.) 1,941 2,417

Regular swimming visitors to the new aquatic leisure centre (no.) 990 1,233

Induced swimming visitors to the new aquatic leisure centre (no.) 951 1,184

Total regular induced swimming visitors to the new aquatic leisure centre (i.e. attend more than once per week) (no.) 856 1,066

Estimated public health benefits per person ($) 60 60

Estimated aggregate public health benefits ($) 51,358 63,956

Gym users

Total gym visitors to the new aquatic leisure centre (no.) 570 866

Total induced gym visitors to the new aquatic leisure centre (no.) 290 442

Total regular induced gym visitors to the new aquatic leisure centre (i.e. attend more than once per week) (no.) 279 398

Estimated public health benefits per person ($) 120 120


Aggregate


3.6.3.6 Increased productivity and output in the local economy

By participating in sport, individuals are mentally and physically healthier and have enhanced cognitive performance and as a result the economy is, on average, more productive. This is delivered through a number of mechanisms, including lower absenteeism from work, greater personal productivity and increases in human capital (personal skills and ability).

Much of the existing literature on the value of sport relies on KPMG-Econtech’s 2008 report ‘The cost of physical inactivity’ which presents a relationship between sedentary behaviour and a negative impact on productivity. It finds that physical inactivity can result in both absenteeism – where employees do not come to work due to illness – and presenteeism – where employees come to work but are not performing at their best due to illness or other conditions. The authors estimate this impact to be a loss of 1.8 working days per worker

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per year, at a cost of $458 per worker per year (in nominal terms). This report was driven by a wealth of research illustrating the links between illness and other physical ailments and a loss of productivity, as well as an established relationship between physical activity and a reduction in the incidence of such ailments. More recent literature includes a research review by Brown (2012) which examined the relationship between employee physical activity and workplace performance. While not finding a specific link between physical activity and productivity uplift, it did find evidence of a link between physical activity and a range of wellbeing indicators such as quality of life, a reduction in anxiety and minimisation of burnout which may all result in a worker being more productive. In a more practical example, a 2011 study experimented with replacing 2.5 working hours with physical activity each week, with a resulting increase in both workplace output and self-rated productivity in comparison with the control groups.53Lincoln University’s 2015 report builds on the research undertaken by KPMG-Econtech to find an overall contribution of more than $NZ 280 million to New Zealand’s GDP (or $AUD 252 million) in the year ending March 2009 through improved productivity. In the Australian context, Access Economics published a report into the economic contribution of sport and recreation in the ACT in 2010 which put productivity gains as a result of physical activity at around $46.7 million (representing around 45% of total benefits).54 In addition to reducing presenteeism and absenteeism, participation in sport can increase human capital. A number of studies have suggested that sport can lead to the development of skills including leadership, social skills, public speaking, problem solving, decision making and conflict resolution amongst others, all valuable skills for employees.

Anecdotal evidence

Anecdotal evidence collected by the Victorian University from users of Victorian aquatic leisure centres found clear evidence that the majority of users perceive that they are more productive in their work life and have less sick days than what would otherwise be the case (Table 3-43). Table 3-43: Estimated economic and social benefits of users of Victorian aquatic leisure centres








Economic analysis

Taking account of the full range of information presented above, the regular induced users of the new aquatic leisure centre (exc. learn to swim participants) are assumed to have 2 less sick days per year than what would have been the case in the absence of the swim centre. The table below provides the estimate of the avoided loss of economic output associated with the number of users across the project options based on attendance levels at capacity (in year 2023).

53 Brown, H.E.; Gilson, N.D., Burton, N.W. and Brown, W.J. (2012) Does Physical Activity Impact on Presenteeism and Other Indicators of Workplace Well-Being? Sports Medicine, 41 (3), pp.249-262. 54 Lincoln University (2015). The economic value of sport and outdoor recreation in New Zealand: Update data. Christchurch: Lincoln University.

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Table 3-44: Estimated avoided loss of economic output, 2023 (2017/18 prices)

Option 1 Option 2

Number of employed working adults that are regular users of the centre

Number of regular induced swimmers and gym users (i.e. attend more than once per week) (no.) 1,230 1,582

Proportion of working age adults (%) 0.8 0.8

Number of working age adults (no.) 984 1,266

Proportion employed (%) 91.7 91.7

Number of employed working age adults (no.) 903 1,160

The value of the avoided loss of output due to increased health and fitness

Average weekly income (Parramatta; $) 712 712

Average hours worked per week (Parramatta; $) 33.1 33.1

Average income per hour ($) 21.6 21.6

Number of sick days / hours avoided per year (no.) 15 15

Avoided loss of output per employee ($) 324 324

Total avoided loss of output

Number of employed working age adults (no.) 903 1,160

Avoided loss of output per employee ($) 324 324

Total avoided loss of output per employee ($000) 292 376

Source: Australian Bureau of Statistics, Census, 2016

.

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3.6.3.7 Residual values

The residual value is a measure of the capacity of an asset to continue earning benefits after the evaluation period that is underpinned by project components with an economic life that extends beyond the evaluation period.

Information provided by Warren Green Consulting indicated that aquatic centres can remain operational for up to 50 years on the provision that they are well maintained. As a result, the present value of the net economic benefits of the new aquatic leisure facility were estimated for a further 20 years past the 30 year assessment horizon. Table 3-45 below outlines the residual values assumed across the various project options.

Table 3-45: Labour surplus ($m 2017/18 and present value terms)

2030 to 2050 Base case Option 1a Option 1b Option 1c Option 1d Option 2a Option 2b

Benefits – real values - 163.4 164.4 163.4 164.4 198.1 199.3

Costs – real values - 137.2 137.8 137.9 138.5 148.5 149.1

Residual values – real values - 26.2 26.6 25.5 25.9 49.5 50.2

Discounted values – total (PV 2018 @ 7%) - 2.8 2.9 2.7 2.8 5.7 5.9

Source: Turner and Townsend, Australian Bureau of Statistics

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3.6.3.8 Operational cost savings from closure of interim MacArthur Girls High School facility

As outlined above, under each of the projection options it is assumed that once the new aquatic leisure centre is operational that the interim facility at the Macarthur Girls High School will cease to operate learn to swim programs and be closed to the public. The closure of the facility represents an avoided cost to the City. The costs associated with the facility at Macarthur Girls High School were estimated above in section 3.5.3 to include close to:

• $110,000 per annum (in real terms) in operational costs;

• $30,000 per annum (in real terms) in lease costs.

The total savings from not requiring the facility at Macarthur Girls High School across the 30 year assessment horizon is estimated to be $4.1 million in real terms and $1.4 million in present value terms.

3.6.3.9 Reduced public costs of crime and anti-social behaviour

The Australian Institute of Criminology acknowledges the role of physical activity, but particularly sport, in preventing or reducing crime and other anti-social behaviours. The term ‘anti-social behaviour’ refers to “deviations from accepted or ideal social norms”, including crime, substance use, suicide or self-harm, homelessness, unemployment, mental health, truancy and early school leaving.13 Sport and physical activity are thought to reduce criminal and anti-social behaviour both directly (decreasing the amount of unsupervised leisure time and reducing boredom), and indirectly (improving self-esteem, increasing positive peer associations, emotional and cognitive skills).

However, while generally accepted, and widely discussed in reviews and reports, a review of the literature reveals that studies making explicit, evidence-based connections between participation in physical activity and either reduced propensity to commit crime, or reduced recidivism, are limited.

A range of studies focus on the impact of sport and physical activity on inmates’ health and wellbeing, with deterrence from recidivism being peripheral observations. But these studies each acknowledge their own, and that of the broader literature, shortcomings in terms of longitudinal recidivism outcomes. This finding is supported by the Australian Clearinghouse for Sports claim that there is “an absence of robust intermediate or final outcome data” supporting the strongly-held theories that sports can reduce crime levels.

Where a positive impact of sport and recreation on crime and anti-social behaviour has been identified, this impact is noted to be particularly strong for men, and young people.

The Social Return on Investment in Sport: A participation wide model for England report does, however, quantify a benefit in relation to a reduction in crime relating from participation in sport and recreation. Specifically, the review found that sports participation leads to a 1% reduction in criminal incidents for males aged 10-24 years.

The UK charity Sported and the research organisation Substance have recently released research titled “Investing in Sport for Development – creating the business case to help change the lives of disadvantaged young people in the UK”. This report sought to understand the value of Sport for Development, a term used to describe the concept of bringing about social change through sports programs, to both the UK society and economy, with a view to strengthening the business case for sport investment. Taking a risk and protective approach, mirroring that of the insurance industry, the research found that there is a cost saving of GBP4,174 associated with every disadvantaged young person that participates in a Sport for Development program. The strongest links were made between participation in Sport for Development, and reduction in criminal behaviour and substance misuse.

Coalter’s summary of the link between sport and its ability to reduce crime and anti-social behaviour is instructive:

It is clear that sport on its own will rarely be sufficient to address issues relating to the values and attitudes underpinning anti-social behaviour and crime. However, sport has the ability to attract many at-risk and vulnerable young people to programmes which can address such issues. Within this context there is a clear need for more systematic consideration of the causes of crime and the nature of the programmes required to address them…..While ‘sport’ plays a central role in such programmes, sport

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must be complemented by development. Most evidence suggests that sport’s potential is maximised by working in partnership with other agencies, understanding the complex causes of crime and recognising that the process of delivery and the social relationships within this are vitally important. 55

3.6.4 Cost benefit analysis outputs

The following section outlines key findings of the analysis, including economic performance indicators and sensitivities. Consistent with the NSW Treasury guidelines, findings for each option are presented as incremental differentials to the Base Case.

3.6.4.1 Economic analysis results

The table below details the outputs of the cost-benefit analysis using a 7 per cent real discount rate. All six of the project options relative to the base case deliver a BCR of less than one and a negative net benefit, that is, the quantifiable economic costs of the project outweigh the quantifiable economic benefits. Table 3-46 illustrates that:

• Option 2a results in the highest BCR of the six options (0.81).

• The key drivers of the economic benefits are the consumer benefits of the project stemming from travel time savings and subsidised aquatic and car parking services. Relative to Option 1a, 1b, 1c, and 1d, Options 2a and 2b have a higher level of transport savings and consumer surplus benefits reflecting the large scope, scale, and capacity of the facilities provided.

• A key driver of difference between options is the underground car park, which is estimated to have a capital cost of close to $8 million. This cost is partially offset by the value users are assumed to value underground car parking services more than at grade services due to protection from the weather and for security reasons.

• The BCRs for Options 1 and 2 are considered to be in the range expected for a social venue where many of the benefits are not quantifiable.

• The return on the State Government’s investment of $30 million is expected to be significant across each of the options assessed.

55 Coalter, F., The Social Benefits of Sport. Glasgow: Sport Scotland, 2013

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Table 3-46: Benefit cost items of the new aquatic leisure centre (2017 NPV terms)


Incremental project costs

Planning costs 1.9 1.9 1.9 1.9 1.9 1.9

Capital costs 50.8 57.0 54.5 60.7 59.1 65.4

Operational and maintenance costs 65.2 65.6 66.0 66.4 70.3 70.6

Opportunity cost of land 0.2 0.2 0.2 0.2 0.2 0.2

Total incremental project costs 118.1 124.6 122.6 129.1 131.5 138.1

Incremental project benefits

Travel time savings 57.6 57.6 57.6 57.6 57.6 57.6

Consumer surplus – swimming facilities 5.5 5.5 5.5 5.5 12 12

Consumer surplus – car parking 3.9 4.4 3.9 4.4 10.4 11.7

Public health and productivity benefits 3.6 3.6 3.6 3.6 4.9 4.9

(Net) residual value 2.8 2.9 2.7 2.8 5.7 5.9

Avoided lease and operations costs 1.4 1.4 1.4 1.4 1.4 1.4

Producer surplus - - - - 1.0 0.8

Labour surplus 12.5 12.5 12.5 12.5 13.4 13.4

Total incremental project benefits 87.3 87.9 87.2 87.8 106.3 107.7

Performance indicators

BCR 0.74 0.71 0.71 0.68 0.81 0.78

ENPV ($million) -30.8 -36.8 -35.4 -41.4 -25.1 -30.4

Incremental cost to the State Government

Capital contribution 24.8 24.8 24.8 24.8 24.8 24.8

BCR for the State Government 3.5 3.5 3.5 3.5 4.3 4.3

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3.6.5 Sensitivity analysis

Another consideration for decision makers is the sensitivity of the result to changes in underlying assumptions and the discount rate used - at the 3% discount rate, a number of options have a BCR exceeding 1. To assess the potential impact of changes in key underlying assumptions, sensitivity and scenario analysis has been conducted. This analysis is important as an option with a higher net benefit or BCR but that also has a higher potential variance from that outcome may be less desirable depending on the constraints (such as funding limits) or risk appetite of decision makers. It also highlights the robustness of the outcomes to changes in the assumptions, and uses breakeven analysis to identify how much those assumptions would need to change in order to achieve an outcome where economic costs equal economic benefits.

Sensitivity analysis was undertaken to assess the impact of changes in key assumptions on the CBA findings. There are five key areas of uncertainty that could affect the economic viability of a project such as the new aquatic leisure centre, namely the:

• capital and operating costs for each option;

• discount rates applied;

• capacity and attendance levels for each option;

• number of parking visits; and

• average travel time savings for regular users of the facility.

The new aquatic leisure centre is assessed to deliver benefits for local community members. While these community benefits were not assessed to outweigh the full extent of the project costs across the options examined, the BCRs for Options 1 and 2 are considered to be in the range expected for a social venue where many of the benefits are not quantifiable, while the project would provide an excellent return on investment for the State Government’s potential contribution of $30 million.

3.6.5.1 Overview of the results of the sensitivity analysis

Table 3-47 below provides the rationale behind the sensitivity parameters selected:

Table 3-47: Rationale behind the senstivity scenarios selected

Sensitivity parameters relative to central assumptions

Rational for the selection of the variable and ranges

Variable Ranges

Discount rate

3%

Sensitivity testing using a discount rate of 3% is specified by the Guidelines.

10%

Attendance

+20%

• Attendance is a key driver of the aggregate consumer surplus, health, and productivity benefits received by users.

• There is inherent uncertainty surrounding the level of capacity of the new aquatic leisure centre and hence the level of attendance per annum.

Consistent with upper and lower limits of performance measures from other aquatic centres e.g. attendance levels per car park. -20%

Average travel time savings

+30% (15min)

• Average travel time savings per visit is a key driver of the aggregate travel time savings received by regular users.

Consistent with plus or minus 15 mins to the average travel time savings per visit.

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The results of sensitivity analysis for Options 1a and 1b are presented in Table 3-48, while the results for of sensitivity analysis for Options 1c and 1d are presented in Table 3-49.

Table 3-48: Sensitivity testing Option 1a and Option1b


Option 1a Option 1b

NPV ($m) BCR NPV ($m) BCR

Discount rate

7% -31 0.74 -37 0.71

3% -15 0.91 -22 0.88

10% -34 0.64 -40 0.60

Attendance

+20% -16 0.87 -22 0.83

-20% -47 0.60 -52 0.58


+30% (+15min) -10 0.92 -15 0.88

-30% (-15min) -52 0.56 -58 0.53

Parking visits +20% -30 0.75 -36 0.71

-30% (15min)

• There is inherent uncertainty surrounding the level of travel time savings per visit and hence the level of attendance per annum.

Parking visits

+20% • The number of parking visits is a key driver of the

consumer surplus benefit for parking that users of the new aquatic leisure centre receive.

• There is inherent uncertainty surrounding the travel mode that users will adopt and the extent of any car-pooling.

Consistent with a car mode share range of 100 per cent to 60 per cent.

-20%

Capital costs

+10% • The capital cost is a key driver of the overall economic costs of the new aquatic leisure centre.

• There is inherent uncertainty surrounding the estimates provided by Turner and Townsend.

Consistent with the scale of contingencies included within the capital cost. -10%

Operating costs

+15% • The operational costs is a key driver of the overall

economic costs of the new aquatic leisure centre. • It is currently assumed that the City will manage

and operate the facility, though another possibility is that the management function is outsourced.

Consistent with the estimated cost implications stemming from the adoption of different operating models

-15%

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Option 1a Option 1b


-20% -32 0.73 -38 0.70

Capital costs

+10% -36 0.71 -42 0.67

-10% -26 0.77 -31 0.74

Operating costs

+15% -42 0.67 -48 0.64

-15% -19 0.82 -25 0.78

Table 3-49: Sensitivity testing Option 1c and Option 1d


Option 1c Option 1d

NPV BCR NPV BCR

Discount rate

7% -35 0.71 -41 0.68

3% -26 0.84 -33 0.81

10% -38 0.61 -44 0.58

Attendance

+20% -20 0.83 -26 0.80

-20% -50 0.59 -57 0.55


+30% (+15min) -14 0.88 -20 0.84

-30% (-15min) -57 0.54 -63 0.52

Parking visits

+20% -34 0.72 -40 0.69

-20% -36 0.70 -42 0.67

Capital costs

+10% -41 0.68 -47 0.65

-10% -30 0.74 -35 0.71

Operating costs

+15% -47 0.65 -53 0.62

-15% -24 0.79 -30 0.75

The results of sensitivity analysis for Options 2a and 2b are presented in Table 3-50.

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Table 3-50: Sensitivity testing Option 2a and Option 2b


Option 2a Option 2b


Discount rate

7% -25 0.81 -30 0.78

3% 4 1.02 0 1.00

10% -33 0.69 -38 0.66

Attendance

+20% -8 0.94 -14 0.90

-20% -42 0.67 -48 0.66


+30% (+15min) -4 0.97 -9 0.94

-30% (-15min) -47 0.65 -52 0.62

Parking visits

+20% -23 0.83 -28 0.80

-20% -28 0.79 -33 0.76

Capital costs

+10% -31 0.77 -37 0.74

-10% -19 0.85 -24 0.82

Operating costs

+15% -37 0.74 -43 0.71

-15% -13 0.89 -18 0.86

3.7 Preferred Option The new aquatic leisure centre for Parramatta will service the country’s largest catchment population for this type of facility and cater for a diverse range of user groups including residents, office workers and students. The region is currently very poorly serviced by aquatic leisure facilities and the development of a new centre provides Council with a unique opportunity to ensure the appropriate community service provision well into the future.

Option 1 provides a significant enhancement to the former PWMSC, with the inclusion of year round indoor aquatic leisure facilities delivering positive revenue and community service benefits. The topography of the Parramatta Park site also provides an opportunity for gym and related facilities, adding to both the viability and functionality of the centre.

The design will be subject to Design Excellence, and compliance with heritage and environmental standards will be highly scrutinised. As a result, option 1C incorporates additional ESD features such as a timber roof structure and translucent roof sheeting. Design features such as this, and other ESD initiatives potentially including solar and careful selection of materials, will be important in satisfying the requirements of Council, approval authorities and the Parramatta Park Trust.

When reviewing the Business Case design options, it is highlighted that Option 2 includes an outdoor recreational water space (for families and young children) as well as additional health and wellness spaces for adults. While these elements contribute further to the function and performance of the new aquatic leisure

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centre, as demonstrated by the improved BCR compared to option 1, the following factors need to be considered:

• The additional outdoor pool and consequent additional footprint of the facility further encroaches on Parramatta Park open space, with Option 1 currently maintaining the 2 hectare site limitation negotiated with Parramatta Park Trust (when at-grade car parking is taken into account);

• The budget implications for option 2, noting their estimated costs of from $75 to $83m, represent a significantly higher call on Council funds than the $69.5m estimate ($39.5m from Council) of Option 1C;.

• Finally, the inclusion of underground car parking is considered for both options 1 and 2. In each case, the additional cost of excavation and the disturbance of the natural ground, coupled with the reduction in viability of the centre, make these options relatively less desirable.

As a result, the preferred option recommended in this Business Case is Option 1C.

Figure 3-13: The Preferred Option – 1C


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3.8 Risk assessment

3.8.1 Risk assessment methodology

An assessment of potential Project risks has been undertaken based on risks identified for similar projects across Australia and the characteristics of the project. The objective of the risk analysis is to assist with the project risk management process, inform the future development of project documents and to address the requirements of the NSW Treasury business case guidelines. In relation to the latter, the risk analysis involves the following steps:

• Risk identification – identification of all material project risks including their likely impact e.g. cost impact, timing impact, stakeholder objection

• Risk exposure – determination of the risk exposure

• Risk likelihood – being the likelihood or probability of the risk occurring, on a scale of 1 to 5 (as per NSW Treasury guidelines)

• Risk consequence – being the consequence the risk will have, on a scale of 1 to 5 (as per NSW Treasury guidelines)

• Risk mitigation – identification of possible mitigation strategies to reduce the risk exposure.

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A risk rating matrix is summarised in Figure 3-14, and enables each identified risk to be assigned a risk rating of either ‘low’, ‘medium’, ‘high’ or ‘highest’ on the basis of the consequence of the risk on broader objectives, namely, the overarching strategic objectives that govern council decision making and the likelihood of the risk occurring over the course of the project.

Figure 3-17: Risk assessment table

Risk exposure = consequence x likelihood

Likelihood

Rare (L1) Unlikely (L2) Possible (L3) Likely (L4) Almost certain (L5)

Cons

eque

nce

Catastrophic (C5) Low 5 Moderate 10 High 15 Very High 20 Very High 25

Major (C4) Low 4 Moderate 8 High 12 High 16 Very High 20

Moderate (C3) Low 3 Low 6 Moderate 9 High 12 High 15

Minor (C2) Low 2 Low 4 Low 6 Moderate 8 Moderate 10

Insignificant (C1) Low 1 Low 2 Low 3 Low 4 Low 5

The risk assessment has been captured in a risk register which also includes the responsible agency or entity for the mitigation of each risk. The adjacent diagram shows the risk exposure matrix used to determine the risk exposure rating for each identified risk.

3.8.2 Risk assessment

The key areas of risk associated with the project have been identified as follows:

• Phase 1: Investment / planning;

• Phase 2: Design;

• Phase 3: Construction and completion;

• Phase 4: Management / operations, and

• Phase 5: Demand / market.

The following pages provide the outcomes of the risk assessment in detail. It is important to note that a number of key risks have already been considered with in the development of various packages of work, including development of design principles and as such, the risk assessment provides an overview of the broader project risks.

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Table 3-51: Risk assessment

Risk No. Risk description Risk likelihood Risk consequence Risk exposure (pre-mitigation) Mitigation strategy Risk exposure

(post-mitigation)

Phase 1: Investment / planning

1 Design concept cannot achieve an integrated service offering within capital budget envelope

2 4 Moderate

• Extensive community consultation to assess community service needs;

• Adopted a value engineering approach to the design concept as part of the development of the business case with specialist input from Turner and Townsend (quantity surveyor);

• Benchmarking best practice design and construction practices to maximise the efficiency of the aquatic leisure centre.

Low

2 Ability or delays in reaching agreement with PPT regarding approval and leasing conditions

3 4 Moderate • Development of a suite of design principles in collaboration with PPT;

• Continued liaison with Council and PPT to minimise unexpected consent conditions; and

• Possible executive level intervention to secure appropriate approval and/or terms.

Low

3 PPT commentary on design which leads to planning and design activities being delayed and impacts the capital budget

3 3 Moderate Low

4 Late design changes relating to Council/PPT requirements 3 3 Moderate Low

5 Conditions of state government funding are not met including the projected economic benefits don't achieve value for money BCR > 1

3 2 Low

• Adopt a value engineering approach to the functional requirements as part of the business case development with specialist input from KPMG.

Low

6 Business case does not meet Treasury/State funding requirements

2 2 Low

Council to ensure a series of internal and external reviews take place before the final business case is submitted to ensure the document’s compliance including: • an end-to-end review of the business case by all project team members;

• a formal presentation to Council; and

• discussion of the analysis inputs and assumptions with NSW Treasury.

Low

7 Centre is not deemed priority for Council capital funds/funds not secured

3 4 High • Continued consultation with key council stakeholders regarding the community need and benefits

associated with a new aquatic leisure centre. • Pending council resolution on 12 December 2017.

Moderate

Phase 2: Design

8 The design is not able to reflect the full range of community needs captured in the community consultation process

3 3 Moderate

Extensive stakeholder consultation process pre-and-post design including: • an external community consultation report;

• council consultation with neighbouring councils, Basketball NSW, Waterpolo NSW, Swimming NSW, and NSW Institute of Sport; and

• council consultation with users of the previous aquatic leisure centre.

Moderate

9 RMS/Council road issues impact design/access from Park Parade

2 2 Low • Engagement with TfNSW and RMS to develop transport improvement options prior to the finalisation

of the business case.

• Engagement with a specialist travel consultancy (GTA) regarding specific requirements for the junction.

Low

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10 Land capability issues (e.g. soil/geology/hydrology/contamination) affect development footprint and/or design

2 4 Moderate

• Development of a Site Analysis and Aquatic Site Suitability Report for the Mays Hill Precinct.

• Develop a full range of cost contingencies related to land capability issues. Low

11 Existing services infrastructure limitations (water, sewer. electricity etc.)

3 3 Moderate • Consultation with utility providers prior to the finalization of the business case.

Low

12 Delayed internal client approval processes 3 3 Moderate

• Development of a suite of design principles in collaboration with PPT;

• Strict adherence to council governance framework in the PCG papers;

• Adopted a value engineering approach to the design concept as part of the development of the business case; and

• Development and circulation of a clear project plan with approval milestones.

Low

13 Delayed development approval arising from authority, political, community opposition due to: use, height , traffic, visual impacts of project

3 3 Moderate

• Engage with community members early in the development of the business case development;

• Develop a community expectations matrix to track requirements throughout the project;

• Periodically update community members with project progress; and

• Ensure design in consistent with masterplan and design principles.

• Consultation with Authorities during design development and approvals process

Low

14 Archaeological heritage impact approvals affect concept/budget/time

2 3 Low • Development of a Site Suitability Heritage Report for the Mays Hill Precinct;

• Secure approved AHIP to complete investigations.

• Independent reports produced on potential aboriginal heritage impacts;

• Meeting with arborist to maximize tree preservation.

• Develop design according to established principles and requirements.

Low

15 Aboriginal heritage and/or environmental impacts affects development approval - delayed/not achieved

3 3 Moderate Low

16 Unforeseen/onerous conditions of approval 2 2 Low • Continued stakeholder engagement with key council personnel and PPT. Low

17 Lack of acceptance by PPT pre-tender 3 3 Moderate

• Development of design principles in collaboration with PPT;

• Agreement to process of engagement through revised MoU.

• Progressive sign off of key requirements by PPT; and

• Liaise with the PPT to minimise unexpected consent conditions.

Low

18 Budget misclose pre-tender 3 3 Moderate • Adopted a value engineering approach to the design concept as part of the development of the

business case with specialist input from Turner and Townsend (quantity surveyor). Low

19 Program unrealistic due to end date pressures 3 3 Moderate

• June 2020 is currently the date of completion. This is currently a realistic timeframe for completion though delays in internal and development approval process may pose some risks.

• Develop indicative construction staging plan that is socialised with Operator and relevant stakeholders (prior to release of RFT).

Low

20 Planning approval by Council (probity issue) 3 2 Low

• Establishment of process under governance arrangements separating functions.

• Engagement of a probity advisor.

• Continued stakeholder engagement with key council personnel.

Low

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Phase 3: Completion/construction

21 Probity issues arise during procurement 3 2 Low

• Commitment to a competitive tender process and development of a procurement strategy that: o Establishes probity roles including engagement of a probity advisor; o Identifies guidelines to identify and manage conflicts of interest; and o Identifies guidelines for the retention of all information, discussions, and decisions.

Low

22 Contract terms/risk allocation not achieved 2 3 Low

• Early contractor engagement to be embedded in the procurement strategy;

• Include design and construction elements that are able to be achieved by a wide range of contractors;

• Engage cost advisor with contemporary stadium cost estimating experience;

• Value engineer design prior to RFT;

• Develop pre-tender estimate on the developed design and contract risk profile;

• Undertake competitive tender process;

• Ensure tenderers are aware of budget constraints;

• Perform interactive tendering throughout the tender process to remove uncertainty in tender prices; and

• Ensure appropriate contingency in the budget for market risk / cost escalation.

Low

23 Council cannot secure a suitable tenderer i.e. quotes exceed budget or there is insufficient interest from the market

2 2 Low Low

24 Design issues lead to variations 2 2 Low • Contract to include design review by Principal and performance requirements. Low

25 Law changes relating to State or Federal legislation 2 2 Low

• Review of current building, design and health codes and information regarding possible amendments.

• Include flexibility in design to overlay most stringent security arrangements known for areas such as exclusion zones; stop and search zones; public gathering areas; security systems (CCTV and comms); segregation; and emergency service access.

Low

26 Union action/industrial relations problems including safety related incidents

2 2 Low • Develop a management and risk plan as part of the broader implantation plan that identifies the risk of

union action / industrial relations problems based on the characteristics of the contractors; and

• Ensure council corporate services are adequate.

Low

27 Weather delays project 3 3 Moderate • Develop indicative construction staging plan that is socialised with Operator and relevant stakeholders (prior to release of RFT) that includes contingencies for weather events.

Moderate

28 Contractor default 3 2 Low

Limit exposure to individual contractors and before finalising the selection process, include a review of:

• financial balance sheet;

• capability and experience;

• historical performance; and

• Consider appropriate risk transfer to contractor in relation to existing structure.

Low

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29 Existing services not previously identified 2 3 Low - Low

30 Contaminated materials found on site 2 2 Low • As part of the development of the Final Business Case, a detailed construction cost estimate has been

developed that draws upon relevant technical advice including areas such as geotechnical engineering, quantity surveying, and civil engineering.

Low

31 Heritage finds on site 2 2 Low

• Monitoring and archival recording of impacted site by specialist consultant.

• As part of the development of the Final Business Case, a detailed construction cost estimate has been developed that draws upon relevant technical advice including areas such as geotechnical engineering, quantity surveying, and civil engineering.

Low

32 Completion and commissioning issues - build 2 2 Low • Perform an existing structure integrity survey;

• Designers to certify design and existing structure;

• Allow tenderers to survey the structure during tender period; and

• Consider appropriate risk transfer to contractor in relation to existing structure.

Low

33 Completion and commissioning issues - FFE/fitout 2 3 Low Low

34 Subdivision/leasehold activities not complete for occupancy

2 3 Low • Continued stakeholder engagement with Council and PPT personnel. Low

Phase 4: Management/operations

35 Pools or other facilities do not function correctly for opening

2 4 Moderate

• Engage leading swimming pool advisor;

• Clear program schedule to manage activities required to move from practical completion to opening;

• Ensure sufficient capability and resources to adequately manage the establishment process; and

• Project brief and design brief to be developed in consultation with specialists.

Low

36 Safety in design not effective - public domain management issues

1 3 Low • Ensure compliance with all security requirements (e.g. CCTV); and

• Investigate structural design elements to increase safety of the site. Low

37 Third party concessions not secured (council is currently assumed to operate the center with third party arrangements for retail and gymnasium services)

1 3 Low • Continued stakeholder engagement with third parties and government approval bodies. Low

38 Car parking inadequate/used by commuters 3 3 Moderate

• Consultation with a specialist traffic consultant to estimate the number of car parks required to meet demand for the centre.

• Develop user requirements matrix in consultation with users, content providers, patrons, services, major event providers, community and operator;

• Develop a user review group to review the design development;

• Seek early commitment from users and event providers based on developed design; and

• Investigate a parking validation system for the car park.

Low

39 Industrial issues (Council workforce) 2 2 Low • Development of a workforce plan. Low

40 FM operational costs high - ESD initiatives not effective 2 2 Low • Adopt a value engineering approach to the functional requirements as part of the business case development with specialist input from Warren Green Consulting.

Low

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41 Adverse publicity from outside parties (including the coverage of an event that has the potential to damage the reputation of the aquatic leisure facility)

2 2 Low

• Engage with community members early in the development of the business case development;

• Develop a community expectations matrix to track requirements throughout the project;

• Periodically update community members with project progress.

•

Low

42 Adverse environmental impacts on Mays Hill Precinct 2 2 Low • Development of an Environmental Impact Assessment Strategy. Low

43 Public transport doesn't provide level of service– Bus loop/train

2 2 Low • Engage with TfNSW and RMS to develop transport improvement options; and

• Realistic revenue estimates based on existing transport arrangements.

Low

Phase 5: Demand/market

44 The capacity of the center does not align with demand 3 3 Moderate

• Detailed benchmarking of attendance at comparable facilities in other jurisdictions;

• Engage with users and content providers early in the development of the business case development;

• Develop a users expectations matrix to track requirements throughout the project;

Moderate

45 Competing facilities affect projected demand 2 2 Low • Development of a market review and benchmark assessment of the major community aquatic leisure centres near the project site.

Low

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3.9 Technical standards and legislative requirements

3.9.1 Technical standards

The following technical standards were provided by Sisson Architects:

3.9.2 National Standards

• Building Code of Australia • National Construction Code • Australian Standards • Disability Discrimination Act • Occupational Health and Safety • National Australian Built Environment Rating System • NSW Public Health Act 2010 • Public Health Regulations 2012 • Royal Life Saving Guidelines for Safe Pool Operations

3.9.3 NSW Legislation Standards

• NSW Health Public Swimming Pools Guidelines • NSW Health Public Pool and Spa Advisory Document • NSW Emergency Response Plans

3.9.3.1 Non-Statutory Standards:

• Greenstar

3.9.4 Legislative requirements

There are a number of legislative considerations for the development of the new aquatic leisure facility. These are summarised in Table 3-52. Parramatta Park is a significant historic cultural landscape. The cultural significance of the landscape is formally recognised through its protection under national, state and local statutes.

The precinct is adjacent to Old Government House and the Government Domain within Parramatta Park, which is one of the 11 Australian Convict Sites inscribed on the UNESCO World Heritage List and the National Heritage List under the Environment Protection and Biodiversity and Conservation Act 1999.

The Park is included on the State Heritage Register under the Heritage Act 1977 (NSW) (the Heritage Act) and is listed as an item of environmental heritage under Schedule 5 of the Parramatta Local Environmental Plan 2011 (100596).

The Mays Hill Precinct of Parramatta Park is located outside of the boundaries of the World Heritage Area and the National Heritage listed area for Old Government House and the Government Domain (OGHGD), Parramatta (Place ID 105957).

In NSW, heritage is principally protected under three Acts:

• National Parks and Wildlife Act 1974 (NPW Act)-applies to Aboriginal objects and Aboriginal Places;

• Heritage Act 1977-applies to items of environmental heritage including places, buildings, works, relics, moveable objects, and precincts of State or local heritage significance.

• The Environmental Planning and Assessment Act 1979 (EPA Act) which provides for the management, development and conservation of resources and land. The EPA Act also applies to the study area. The study area is listed in Schedule 5 of the Parramatta Local Environmental Plan 2011 (100596).

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Table 3-52: Legislative requirements

Legislation Description of requirements

National Legislation

Environment Protection and Biodiversity Conservation Act 1999

The Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) is the Australian Government's primary piece of environmental legislation that protects national and internationally significant heritage places. Parramatta Park is included on the World Heritage list and the National List and is therefore subject to the EPBC Act and its regulations. Under the EPBC Act world heritage properties are considered to be a matter of national environmental significance (NES).

The Mays Hill Precinct is not within the World Heritage inscribed area or the buffer zone surrounding it. Mays Hill is located outside of the National Heritage listed area.

Despite not being located within the World and National Heritage areas, Mays Hill is in the vicinity of, and within important sightlines of, Old Government House and the Government Domain. It also comprises the wider historic landscape setting and has associated cultural values; as such the provisions of the EPBC Act apply to the study area.

UNESCO World Heritage List

The OGHGD is part of the serial listing of 11 Australian Convict Sites inscribed on the UNESCO World Heritage List on 31 July 2010 for their Outstanding Universal Value, and under Criteria (iv) and (vi) of the World Heritage Convention. As a group, the sites constitute an outstanding example of the forced migration of convicts.

National Heritage List OGHGD was included on the National Heritage List on 1 August 2007 under a range of criteria, including outstanding national significance for its association with the foundation of the British colonial administration and as an important centre of the convict system in Australia.

Matters of National Environmental Significance

Part 3, Division 1 of the EPBC Act identifies requirements relating to matters of national environmental significance (NES) (Subdivision A-World Heritage and Subdivision AA-National Heritage) ; this includes assessing whether proposed activities within or in the vicinity of a place protected under the EPBC Act may constitute a significant impact to the NHL or WHL.

Under the EPBC Act, a 'significant impact' is an impact which is important, notable or of consequence, having regard to its context or intensity. Whether an action is likely to have a significant impact depends upon the sensitivity, value and quality of the environment in question. An action which is likely to give rise to a 'significant impact' requires approval from the Minister. Guidelines have been prepared which enable proponents to undertake a self-assessment to assist in determining whether an action is likely to give rise to a significant impact. If the self-assessment finds that the action will give rise, or has the potential to give rise to a significant impact, a referral to the Australian Minister for the Environment and Energy may be necessary.

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NSW Legislation

National Parks and Wildlife Act 1974

The NPW Act provides statutory protection for all Aboriginal 'objects' (consisting of any material evidence of the Indigenous occupation of New South Wales) under Section 90 of the NPW Act, and for 'Aboriginal Places' (areas of cultural significance to the Aboriginal community) under Section 84 of the NPW Act. Aboriginal objects and places are afforded automatic statutory protection in New South Wales whereby it is an offence (without the Minister's consent) to harm an Aboriginal object or declared Aboriginal Place.

The NPW Act defines an Aboriginal object as:

any deposit, object or material evidence (not being a handicraft made for sale) relating to the Aboriginal habitation of the area that comprises New South Wales, being habitation before or concurrent with (or both) the occupation of that area by persons of non-Aboriginal extraction, and includes Aboriginal remains.

The protection provided to Aboriginal objects and places applies irrespective of the level of their significance or issues of land tenure. Sites of traditional significance that do not necessarily contain material remains may be gazetted as 'Aboriginal Places' and thereby protected under the NPW Act. However, areas are only gazetted if the Minister is satisfied that sufficient evidence exists to demonstrate that the location was and/or is of special significance to Aboriginal culture.

On 1 October 2010, the mechanisms for the protection and management of Aboriginal heritage places and objects changed with the adoption of the NPW Amendment (Aboriginal Objects and Places) Regulation 2010.

New offences relating to the harm to, or desecration of, an Aboriginal object or declared Aboriginal Place were introduced. The definition of 'harm' now includes to destroy, deface, damage or move an Aboriginal object or declared' Ab9riginal Place. The former Department of Environment, Climate Change and Water (DECCW-now the Office of Environment and Heritage [OEH)) stated:

the most significant change is the introduction of tiered offences and penalties. Offences committed with knowledge, in aggravating circumstances or in relation to an Aboriginal Place will attract higher penalties than previously. There is a new strict liability offence of harming Aboriginal objects and of harming or desecrating Aboriginal Places.

The strict liability offence of harming Aboriginal objects has a number of defences. The two defences relevant to the proposed development include the statutory defence of due diligence through complying with an adopted industry code, or compliance with the conditions of an Aboriginal Heritage Impact Permit (AHIP).

The potential for Aboriginal objects, sites, places and/or values within the study area and whether the proposed development may impact on such objects has been assessed and the results presented in this report.

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Heritage Act 1977 The Heritage Act is a statute designed to conserve New South Wales' environmental heritage. 'State heritage significance', in relation to a place, building, work, relic, moveable object or precinct, means significance to the state in relation to the historical, scientific, cultural, social, archaeological, architectural, natural or aesthetic value of the item.

State Heritage Register

The State Heritage Register (SHR) was established under the Heritage Act. The SHR includes items and places (such as buildings, works, archaeological relics, movable objects or precincts) determined to be of state heritage significance.

Items listed on the SHR are subject to Section 57(1) of the Heritage Act. Under this section approval is required to demolish a building or work , damage or despoil the place, precinct or land or any part thereof, move, damage or destroy a relic or moveable object, excavate any land for the purposes of exposing or moving a relic, carry out any development, or alter the building, work , relic or moveable object. The provisions under this section do not apply to anything exempted through a heritage agreement, or a Conservation Management Plan, or otherwise by site specific or standard exemptions.

Relics

The Act defines a 'relic' as any deposit, object or material evidence that:

a) relates to the settlement of the area that comprises New South Wales, not being Aboriginal settlement; and

b) is of State or Local heritage significance.

The historical archaeological component of this report considers whether the study area has the potential to contain archaeological remains that would be considered 'relics' under the Heritage Act.

Environmental Planning and Assessment Act 1979

The EPA Act is administered by the NSW Department of Planning and Environment and provides for environmental planning instruments to be made which guide development and land use. These planning instruments also provide for the protection of local heritage items and conservation areas through listing on LEPs.

Local Requirements

Parramatta City Centre Local Environment Plan 2007

The Parramatta City Centre Local Environmental Plan (PCCLEP) is an instrument administered under the Environmental Planning & Assessment Act (EPA Act).

The study area is located within the boundaries of the Parramatta City Centre LEP 2007. It is listed as Parramatta Regional Park, on Schedule 5 of the LEP.

As such, potential impacts to the park's heritage significance must be considered in line with Clause 35 (Heritage Conservation) of the Parramatta City Centre LEP 2007.

The relevant objectives of the 'Heritage Conservation' clause are listed as:

a) to conserve the environmental heritage of Parramatta city centre, and

b) to conserve the heritage significance of heritage items and heritage conservation areas including associated fabric, layout, settings and views, and

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c) to conserve archaeological sites and relics, and

d) to conserve places of Aboriginal heritage significance.

Clause 35(2) establishes the requirements for development consent as it applies to heritage items:

a) development consent is required for any of the following,

b) demolishing or moving a heritage item or a building, work, relic or tree within a heritage conservation area,

c) altering a heritage item or a building, work, relic, tree or place within a heritage conservation area, including (in the case of a building) making changes to the detail, fabric, finish or appearance of its exterior,

d) altering a heritage item that is a building, by making changes to significant elements of its interior,

e) disturbing or excavating an archaeological site while knowing, or having reasonable cause to suspect, that the disturbance or excavation will or is likely to result in a relic being discovered, exposed, moved, damaged or destroyed,

f) disturbing or excavating a heritage conservation area that is a place of Aboriginal heritage significance,

g) erecting a building on land on which a heritage item is located or that is within a heritage conservation area,

h) subdividing land on which a heritage item is located or that is within a heritage conservation area.

Clause 35(4) establishes requirements for assessing the impact of development on heritage items:

The consent authority may, before granting consent to any development on land:

a) on which a heritage item is situated, or

b) within a heritage conservation area, or

c) within the vicinity of land referred to in paragraph (a) or (b), require a heritage impact statement to be prepared that assesses the extent to which the carrying out of the proposed development would affect the heritage significance of the heritage item or heritage conservation area concerned.

Clause 35A relates to historic views:

The consent authority must not grant consent to development on land identified in the City Centre Development Control Plan as being within a historic view corridor unless it has taken into account the impact that the development may have on any such historic view corridor.

Clause 35(6) addresses the requirements for archaeological sites:

6) Archaeological sites

The consent authority must, before granting consent under this clause to the carrying out of development on an archaeological site, be satisfied that any necessary excavation permit required by the Heritage Act 1977 has been granted.

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Clause 36(7) establishes guidelines in relation to places of Aboriginal significance:

7) Places of Aboriginal heritage significance

The consent authority must, before granting consent under this clause to the carrying out of development in a place of Aboriginal heritage significance:

a) consider the effect of the proposed development on the heritage significance of the place and any Aboriginal object known or reasonably likely to be located at the place, and

b) notify the local Aboriginal communities (in such way as it thinks appropriate) about the application and take into consideration any response received within 21 days after the notice is sent.

Parramatta Local Environmental Plan 2011

The Mays Hill Precinct is listed as an item of local heritage significance in Schedule 5 of the Parramatta Local Environmental Plan 2011. The study area is identified as being a component element of 'Parramatta Park and Old Government House' (100596).

The Parramatta Park Trust Act 2001

The study area is within the boundary regulated by The Parramatta Park Trust Act 2001 (NSW), which currently has legislative control for the administration and management of Parramatta Park.

The objectives of the Act include:

a) to maintain and improve the trust lands,

b) to encourage the use and environment of the trust lands by the public by promoting the creational, historical, scientific, educational and cultural heritage values of those lands,

c) to ensure the conservation of the natural and cultural heritage values of the trust lands and the protection of the environment within those lands; and

d) such other objects, consistent with the functions of the Trust in relation to the trust lands, as the Trust considers appropriate.

The Parramatta Park Trust Act 2001 allows the trust members, under control and direction of the Minister, to direct expert staff in conservation and land management operations.

Non-Statutory Planning

Parramatta Development Control Plan 2011

The Parramatta City Council Development Control Plan (Parramatta DCP 2011) provides detailed planning and design guidance for new developments to supplement the provisions of the Parramatta LEP 2011. The DCP is not a statutory document, but rather an additional set of planning guidelines to refine plans for development.

Section 3.5 of the Parramatta DCP 2011 sets out the general principles and controls that apply to development on and in the vicinity of heritage items or conservation areas as identified within the Parramatta LEP 2011.

Section 3.5.1 outlines the considerations and general requirements applicable to general (built) heritage. The objectives are:

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• Appropriate management of heritage in the Parramatta LGA;

• Retention and reinforcement of the attributes that contribute to the heritage significance of items, areas and their settings,

• Maintenance and improvement to residential amenity and open space areas,

• Development that is compatible with the significance and character of the area,

The design principles applicable to the proposal and the heritage items and heritage conservation area in the vicinity include:

Development near Heritage Items

C.3 Where development is proposed that adjoins a heritage item identified in the Parramatta LEP 2011 or Parramatta City Centre LEP 2007, the building height and setbacks must have regard to and respect the value of that heritage item and its setting.

New Buildings

C.11 New buildings will need to respect and acknowledge the existing historic townscape of Parramatta so that new and old can benefit from each other.

C.12 Applicants need to concentrate on getting the height, siting, shape and materials right so that new buildings will blend with old areas without imitation of period details, including consideration of:

• the height of the new building compared to those nearby - the new building should be no higher than the majority of the buildings in its vicinity,·

• the setback of the new building from the street and from its side and rear boundaries and as compared to its neighbours on either side,

• whether the building has a similar shape - in a street of hipped or gable roof, in a street of commercial buildings, a parapet roof might help the new building fit better with its neighbours,

• whether the building materials of the new building complement those nearby -most houses in Parramatta are of brick or weatherboard so bagged and painted brick walls might not be suitable for new buildings nearby.

Section 3.5.2 outlines the considerations and procedures relating to archaeology. The objective is to provide appropriate conservation and management of the archaeological resources to the Parramatta Local Government Area (LGA). The design principles set out are:

• P.1 In the case of any development where excavation is proposed, the Applicant must refer in their Statement of Environmental Effects (SEE) to the Parramatta Historical Archaeological Landscape Management Study (PHALMS).

• P.2 The SEE must refer to the management recommendations set out in the PHALMS in relation to the subject site, and must show how the applicant intends to comply with those recommendations. If PHALMS recommends further assessment and/or documentation, then such information shall be included in the SEE.

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• P.3 If necessary, the applicant shall, prior to any excavation work commencing, make an application to the NSW Heritage Office for an application permit under the terms of the Heritage Act 1977. The applicant shall allow sufficient time and resources for the determination of the application and for completion of the archaeological programme required.

• P.4 At all times when excavation is being carried out, the applicant (or any persons acting for the applicant) should be aware of any excavation permit requirements including the need for monitoring, stopping work and reporting any relics found to the NSW Heritage Office.

Section 3.5.3 defines Aboriginal heritage and outlines considerations and procedures relating to Aboriginal heritage. The objective is to ensure that appropriate consideration is given to the impact of development on known or potential Aboriginal archaeological sites or sites of cultural or historical significance to Aboriginal people in the Parramatta LGA.

Aboriginal heritage is defined in the DCP as follows:

Aboriginal heritage includes places and items that are important to the local Aboriginal community or to Aboriginal people of NSW. These are places or objects that people have a connection to, both physically and spiritually and can include natural features such as creeks or mountains, ceremonial or story places or areas of more contemporary cultural significance such as Aboriginal missions or post contact sites. Parramatta City Council has a database of known Aboriginal archaeological and historic cultural sites and information about the location of land that could contain Aboriginal sites.

The following principles apply:

P.1Before lodging a development application for development that may have an impact on known or potential Aboriginal sites, Council's information on known Aboriginal sites and potential heritage sensitivity should be consulted.

P.4 For properties identified as Medium Sensitivity or High Sensitivity an Aboriginal Heritage Assessment is required.

Section 4.3.3.4 of the Parramatta DCP 2011 defines significant view corridors from within Parramatta Park. The objectives of this section are to maintain and enhance views from the city centre to significant heritage or natural features, enhance views along city streets and to protect silhouettes of the tops of major buildings or structures as seen against the sky.

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4 Implementation

4.1 Project planning A project plan (refer Appendix L) has been prepared that sets out the project stages and activities after Business Case approval, including:

• Resource engagement • Design development • Development Approvals • Provision of utilities and external site services • Subdivision • Procurement • Construction and Fit Out • Completion and commissioning • Opening and Operations

The program developed by consultant TBH which includes contingency based on industry practice, shows completion of the preferred option by June 2020.

To achieve this date requires continued design development and stakeholder consultation, with a Design Excellence design process assumed.

The program does not allow for a design competition, and assumes construction durations consistent with the preferred Option 1.

It is anticipated that adopting either or both of a design competition, or adopting a design that requires additional scope or underground excavation for car parking, would add of the order of 3-6 months to the program.

This section provides an outline of the major project components for implementing the project from resource allocation decision to operation, including key milestones and delivery dates, major decision points, critical path items and key dependencies.

4.1.1 Resource engagement (current – March 2018)

Resources engaged for the preparation of the feasibility report have continued into the preparation of the Business Case. A procurement activity for design consultants will be undertaken to resource the ext stage, being development of the concept and schematic designs.

Specialist advisers have been identified with expertise in aquatic leisure centre design and operation, heritage, statutory planning, procurement and legal to supplement Council resources for the upcoming phases of the project.

Budget has been allocated by Council for these engagements.

4.1.2 Design development (March 2018 – Sept 2018)

The design has been developed in accordance with the design principles including:

• Best practice design in the aquatic leisure centre market;

• Mays Hill Precinct Master Plan – Zone 2 Design Principles;

• Benchmarking best practice facilities, as well as incorporating current advice from specialist advisers from the aquatic leisure centre market.

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The design development process will be informed by further consultation, as well as adherence to the NSW Government’s Design Excellence requirements.

A key constraint on the design is available budget, and a number of options identified, as well as sub-options for certain design elements, subject to financial outcomes during the project’s development.

Council will engage a suitably qualified team of consultants and utilise its Design Excellence process to ensure the design meets contemporary standards and required guidelines.

4.1.3 Development approvals (current – Oct 2018)

With an anticipated budget in excess of the required threshold, the project will be assessed by the Sydney Central City Planning Panel.

Due to the heritage status of the site, a number of precursor planning activities are underway to inform the development application, including:

• Extensive due diligence has been conducted as part of the feasibility report to establish the history of the site and its heritage;

• applications are being prepared under section 60 (State heritage) and section 90 (Aboriginal Heritage) under the Heritage Act 1977:

• A specialist adviser is currently completing due diligence on the aboriginal heritage and historical heritage impacts of the proposed development on the site, with a Heritage Impact Statement under preparation;

• Consultations are underway with the Office of Environment and Heritage and the Heritage Council.

As the land is under the control of the Parramatta Park Trust, it will need to consent as “owner” for any planning application. Consultation is ongoing under the October 2016 Memorandum of Understanding between the Trust and Council, under which the project has progressed to date.

The critical path for the project runs through development consent, before contractor engagement can be finalised and construction commenced.

4.1.4 Utilities and external services (current – Jan 2019)

Due diligence conducted over 2016/2017 has identified all services and external infrastructure needed to support the project.

As a park, there are few services within the boundary that can support the proposed redevelopment. However all major services are located within road reserves to the perimeter of the site.

Design is underway for these services, and their extension into the site has been programmed to proceed in parallel with the redevelopment, noting that no services are required to enable the site for construction.

Council may choose to extend urban infrastructure in the region of the site to enhance user access, with works identified in its program (separately funded to the project) for upgrades to pedestrian paths in the Parramatta CBD and in the Argyle/Pitt/Parks Parade area. However none of these enhancements are required for the aquatic leisure centre to function.

4.1.5 Subdivision (current – Dec 2018)

As part of its agreement with Parramatta Park Trust, the site is to be subdivided and a lease put in place for the aquatic leisure centre.

The centre and its related services is a permitted use within the park lands, so rezoning is not anticipated. A statutory planner will be engaged to advise on this aspect.

Until the design is finalised, the lease cannot be defined in real property, noting however that Council has had a lease in place over Parramatta Park since 1957 (last extended in 2014).

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An Agreement for Lease or other legally binding instrument is being developed to govern the upcoming project stages, to enable a lease specific to the aquatic leisure centre within the Mays Hill Precinct to be entered into at completion of the development in 2020.

4.1.6 Procurement (current – Sep 2018)

Council has an established procurement division and governance. This includes standard form government contacts.

Consultants have been procured in accordance with Council policy to date.

For the upcoming major consultant procurements, Council proposes to use Government pre-qualified panels established for the purpose by DFSI.

It has also retained the services of a probity adviser to oversee procurement going forward.

For the main contractor, Council proposes to engage with Tier 1 and 2 contractors from the DFSI panel for contractors prequalified for works >$10m, with experience in design & construction.

The procurement strategy intends to take advantage of specialist contractor’s buildability knowledge and expertise in finalising the designs and to drive best value for money from the procurement. This will also assist with resolving any remaining site based conditions that arise from continued due diligence.

Aquatic leisure centre construction is within the capabilities of the pre-qualified construction contractors, demonstrating experience in civic and leisure facilities. Specialist capability is required to ensure the swimming pools and aquatic leisure elements are constructed properly, with standard subcontractors not appropriate for some specialist elements.

The procurement method will identify these elements, and identify for separate tender or nominate suppliers as principal nominated items, in order to address high risk construction/supply elements.

4.1.7 Construction and fitout (Nov 2018 – Mar 2020)

This program has been benchmarked against facilities recently constructed within Australia as well as analysis of the proposed options.

Options being considered in this Business Case include underground or at-grade car parking. However the design has these elements separated, allowing any extra time for underground car parking to be absorbed in parallel to the construction of the centre.

In terms of risk to the build program:

• Geotechnical and site condition investigations indicate minimal time risk;

• base build elements are relatively conventional and do not attract a time premium for novel methods;

• The large span roof structure is predominantly pre-fabricated off site and so is only weather dependent on installation;

• Pool construction is specialist, however contractors experienced in this area have normalised construction programs

• Services installations within the centre are extensive, but are able to be carried out concurrent with pool deck activities

• Fitout elements are relatively low risk, with minimal technologies.

4.1.8 Pre-Opening and operational establishment (Jun 2019 – June 2020)

Consistent with Council experience in the operation and management of aquatic leisure facilities, the operational model assumes a manager will be employed 12 months from completion, with supervisory staff 6 months out, prior to training and development in the final 1-2 months.

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The pre-opening and establishment period would also include: the development of an operational plan, planning and set up of administrational systems, program planning and development, pre-opening marketing, regulatory and compliance accreditation, supplier contracts establishment, technology system procurement and implementation and policy and procedure development.

Council intends operating the facility in-house, as was the case with the PWMSC, with potentially the café being leased.

4.1.9 Completion and commissioning (Mar 2020 – Jun 2020)

Completion and commissioning of aquatic leisure facilities will be a key contractor responsibility, overseen by specialist advisers and consultants engaged experienced in this type of service. Staff engaged by Council in readiness for opening (see below) will also witness all testing and be part of the commissioning process.

4.2 Governance model There are four key stakeholders in the governance of the aquatic leisure centre project:

• Council – will design, build, operate and fund the centre, using its internal governance model and processes (see below);

• Parramatta Park Trust – as Trustee for the Parramatta Park, Council will work with the Trust to ensure the development meets the requirements of the Trust and relevant legislation;

• Infrastructure NSW – is providing part of the funding as a result of the Western Sydney Stadium Project requiring the relocation of the former Parramatta War Memorial Swimming Centre. INSW requires the project to meet its (and NSW Treasury’s) requirements to secure the funding.

• Office of Local Government – under which capital projects need to conform to Capital Expenditure Guidelines

4.2.1 Council

Council will manage the project until completion and has established a governance structure and resources to achieve this. In terms of status:

• The committees have been established and have met;

• Reporting against all project stages, with regard to the master program, occurs through the monthly PCG;

• Officers from within Property & Significant Assets are actively managing the project on a day to day basis, with City Services representing Council as Client;

• City Services is planning for the operational aspects of the project, including consultation, workforce planning and communications.

The project requires specialist advisers in addition to Council resources, which Council has procured or is in the process of procuring, including:

• Aquatic leisure centre specialist – the design and construction of the centre requires the input of a specialist aquatic leisure centre adviser;

• Lead design team –as a significant piece of civic infrastructure, the aquatic leisure centre will require Design Excellence to be achieved and therefore an appropriately qualified and experienced design team. This will be procured on approval of the business case, in order to progress the scheme design and Development Approval;

• Procurement – the size of the project may require procurement assistance to supplement current Council resources;

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• Legal – arrangements with the Parramatta Park Trust will require legal agreements to be put in place in addition to the current leases and the 2016 MoU;

• Probity – the government requirements for funding, and the Capital Expenditure Guidelines applicable to Council projects >$10m, require a probity adviser.

The diagrams and tables below show the governance structure, roles and responsibilities of the participants:

Figure 4-1: Governance structure for the delivery of the new aquatic leisure centre

4.2.2 Parramatta Park Trust

The Trust is responsible for the management and operation of Parramatta Park, including the Mays Hill Precinct in which the aquatic leisure centre is to be developed.

Council currently meets the Chief Executive of the Trust on a two weekly basis, to discuss matters including progress on the centre under the terms of the 2016 MoU.

In parallel with the development of Council’s Aquatic Leisure Centre Feasibility report, the Trust in consultation with Council developed Its 2017 Mays Hill Precinct Masterplan. This sets out four zones to be developed as part of its activation of a currently poorly patronised site, formerly a golf course.

A key part of this activation is the proposed aquatic leisure centre, on an approximately 2 hectare parcel of land within Zone 2.

Informed by these plans and studies, in October 2017 the NSW Government passed the Parramatta Park Trust Amendment (Western Sydney Stadium) Bill 2017, which at section 13(1)(b) allows the Trust to enter into a 50 year lease specifically for a new aquatic leisure centre.

The memorandum of understanding (MoU) between Council and Parramatta Park Trust to develop a master plan for the Mays Hill Precinct is now entering into the implementation phase given the completion of the master plan and identification of a preferred and suitable site. An updated MoU is being drafted to set out roles and responsibilities related to the obtaining of consents, planning approvals, lease and delivery of the new centre. It is expected that Council will finalise the new MoU in early 2018.

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As the MoU between Council and the Trust is non-binding (though covers the arrangements between the parties to develop the aquatic leisure centre), Council and the Trust will enter into a binding agreement to manage the development of the centre, based on a ground lease arrangement, under which:

• The Trust will be a stakeholder in the development of the centre, with consultation on the adherence of the centre to its design principles;

• The Council will bear all responsibility for the cost and timely delivery of the centre;

• Council will collect all revenues from the operation of the centre; and

• The Trust will receive a lease payment for the leased area.

4.2.3 Infrastructure NSW

Infrastructure NSW is currently developing the Western Sydney Stadium, which required the relocation of the former Parramatta War Memorial Swimming Centre.

Council prepared an estimate of the asset value of the PWMSC and as a consequence of this, Government has proposed to provide $30m towards the replacement facility, subject to Council providing a Business Case that meets certain funding and community benefit thresholds, and meeting INSW Investor Assurance requirements.

To this end, a risk assessment has been conducted and INSW has advised that the project is of low risk and Gateway reviews are not required prior to the business case approval.

Once the business case and funding are approved, it is not expected that INSW will be actively involved in the development of the aquatic leisure centre, though may, at its discretion, require further action under the Investor Assurance Review framework.

4.2.4 Office of Local Government

Communication between OLG and Council CE has occurred to ensure compliance with relevant capital expenditure requirements.

Since NSW Treasury has required its processes to be followed (which are essentially the same as OLG requirements), OLG has been notified that Council is adopting the NSW Treasury business case process for the development of the project to funding stage.

Subsequent to the approval of the Business Case, the project will be delivered, under Council governance and management, to OLG’s requirements.

4.3 Procurement method Council will utilise existing resources and methods to procure the project, which have been recently enhanced to reflect the delivery by Council of major projects within the Parramatta LGA such as the Parramatta Square redevelopments.

The procurement method will be implemented through tendering processes that comply with the Tendering Guidelines, Local Government (General) Regulation and the Local Government Act, as currently employed by Council in its procurement processes.

4.3.1 Procurement Objectives

The procurement objectives are to:

• Achieve certainty of project budget, scope, and delivery program;

• Achieve budget cash flow objectives;

• Achieve value through the procurement process;

• Reduce risk at all stages of the procurement process; and

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• Ensure the project is completed in a timely manner to facilitate opening in 2020.

4.3.2 Key Procurement Considerations

Key considerations to be taken into account in assessing the procurement options are summarised below:

Table 4-1: Procurement considerations

Category Considerations

Market capacity and appetite

• Size of project

• Specialization needed

• Skills in design management

• Market demand for like sized/type projects (tier 1, 2 considerations)

Funding

• Project value and funding sources – need to work toward a fixed price to ensure capped INSW investment is adequate

• Adequacy of budget including contingencies appropriate at this stage of the project

Timelines

• Project milestones – potential need for overlapping activities to meet program for 2020.

• Project program includes benchmark contingency.

• Car park component – depending on whether car park is at-grade or underground, work can be carried out in parallel.

Work Type

• Early works / enabling works package (potential for utilities enhancements)

• Specialist inputs – pools, equipment, internationally sourced elements

Opportunities for Innovation • Design excellence input.

• Opportunities during design development, procurement and construction.

4.3.3 Delivery Contractor Procurement Options

A review of procurement options has been undertaken to provide:

• An orderly program to deliver the project so that services can be delivered as soon as possible to meet the needs of the community;

• Earliest commencement of construction works (subject to funding), optimising project efficiencies and reducing escalation through program and project cash flow whilst controlling risk to ensure the delivery and commissioning of the facility in all respects;

• Management of design risk and flexibility to accommodate community concerns, Trust principles, budget limitations and environmental considerations.

NSW Government procurement policy recognises several delivery contractor options; including:

• Traditional design and construct - The Agency develops a full and final design to the contractor to deliver the works;

• Design finalisation and construct (DF&C) - The contractor develops the design from a concept or preliminary design provided by the Agency and documents its requirements for procurement to deliver the works; and

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• Design and construct (D&C) - The contractor prepares a design on the basis of the principal’s documents (e.g. performance brief, functional brief, schematic design) and delivers the works.

• Managing contractor (MC) - engagement of a delivery contractor to support the management of scope definition, design, documentation and construction of the works, based on preliminaries, overheads and margin.

• Early Contractor Involvement (ECI) - where the contractor tenders a fixed price on preliminaries and overheads and margin, and works through the design process to both develop the design, impart buildability inputs to the process, and develops a fixed price for the delivery of the project.

4.3.4 Preferred procurement method

It is anticipated that a D&C form of procurement will be utilised for the main works elements of the project, for the following reasons:

• The program does not permit full design prior to contractor procurement;

• Pre-qualified Tier 1 and 2 contractors are skilled in providing buildability inputs and potential inputs to specialist and key project elements, and need to be engaged early enough in the design program to efficiently provide this;

• Council will consider principal nominated suppliers, whose integration into the design for specialist aquatic design elements requires design to be completed by the builder; and

• Budget constraints/opportunities are likely to require value engineering at various stages in the project’s design finalisation.

This will however be subject to a detailed review on completion of the schematic design and preparation of the development application, in the context of the project program, should any early packages of work be identified in order to minimise project risk

In this case the project may be initiated under an ECI form of contract before reverting to a D&C contract for the main works.

4.3.5 Cost of procurement

Procurement costs, relating primarily to site investigations, due diligence, feasibility studies and concept design, have been met to date from Council budgets in FY 2016/17.

The capital budget includes Council direct and external consultancy costs consistent with a project of this size and type. The procurement risk associated with this project is primarily the participation of specialist contractors for aquatic services and items (such as prefabricated pool elements). Council is seeking or has identified suitably qualified specialists to assist in this.

The procurement plan will specifically identify these elements within design and tender documents, and selection criteria will recognise them in making contractor selection.

4.3.6 Council capability

Council is currently procuring under development and delivery contracts a variety of large scale projects, such as Parramatta Square.

Its governance has been structured to ensure contract, financial, procurement and governance control of these major projects.

Its Significant Assets & Property division has been resourced with personnel experienced in the size, type and value of the proposed project.

In addition, specialist advisers have been engaged to supplement the projects as required.

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4.3.7 Probity Plan

Due to the value of the project, Council is required to develop a probity plan that will set out the principles and processes adopted by Council in its advertising, assessment, selection and contracting of consultants, operators and construction contractors.

In its commercial dealings, the Council will observe the highest standards of probity. Council business must be fair, open and demonstrate the highest levels of integrity consistent with public interest.

The key probity principles supporting all stages of the project are:

• Fairness and impartiality.

• Use of competitive process.

• Consistency and transparency of process.

• Security and confidentiality.

• Identification and resolution of conflicts of interest.

4.4 Management The aquatic leisure centre will reinstate an aquatic facility for the municipal population of 234,000 residents (and more specifically the 3 kilometre catchment population of 119,190 in 2016 and 197,128 in 2036). as well as local workers and visitors to the Parramatta CBD and University students.

It is anticipated to deliver the following benefits:

• Private use benefits including health and socialization

• Public health benefits including reduced cost of health care to NSW community

• Option value for local residents of having access to an aquatic leisure centre

• Revenue to Council to offset operational costs

4.4.1 Changes to be managed While the delivery and operation of an aquatic leisure facility is a well-developed, historical and ongoing service delivery process for Council, the project will require the following changes:

• Changes in operational planning necessary to service a significant increase in forecast patronage, from 150,000 p.a. for the PWMSC, to around 800,000 p.a. for the new centre;

• Additional operational activities by Council, incremental to its current leisure facilities;

• Recruitment of staff for the facility, previously reallocated on the closing of the PWMSC in 2015;

• Communications and user information to secure patronage and deliver the anticipated benefits of the facility; and

• Additional traffic and transport needs to service the centre and provide access to it.

4.4.2 Change management plan During the next phase of project development, a detailed change management plan will be developed from the basis of the Stakeholder Engagement and Communication Plan to include:

• Change management methodology;

• Outline of project assumptions;

• Consideration of project risks;

• Consideration of existing and new linkages within and external to the project;

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• Project governance;

• Project stakeholders;

• Outline of project deliverables; and

• Outline of key personnel.

The objectives of the Plan will be to:

• Achieve a shared understanding amongst project stakeholders of the changes to service delivery, facilities, operational practices, business practices, and workforce requirements arising from the project;

• Ensure changes in systems and processes arising from the project are clearly identified and are prioritised and implemented in line with the project timetable;

• Achieve a shared understanding and commitment to the strategies required to support the transition from the current environment to future environment;

• Establish a structure to ensure efficient, effective and proactive change management occurs;

• Establish appropriate processes to ensure that transition management issues are effectively identified and captured throughout the project;

• Ensure the effective integration of the change management plan with key interrelated strategies e.g. the Stakeholder Engagement and Communications Plan.

Council will in 2018 continue to consult stakeholders and the community through:

• Mandatory consultation and notices related to planning approvals • On the centre’s design • Future services and business plan for the new centre • Updates on the progress of the project

4.5 Risk assessment Government guidelines specify that a capital project business case identifies the major risks associated with the project and the impact and likelihood of these risks occurring.

The objective of risk management is to identify and analyse risks and to manage their consequences by putting in place strategies to minimise and/or avoid risks. Discussions have been conducted with Infrastructure NSW to ascertain the risk rating for the project, with INSW advising that the project presents a low risk (Tier 3/4). As such, Gateway or Investor Assurance Reviews are not required prior to the completion of the business case.

Consistent with good project practice, a risk management framework has been applied to the project to ascertain risks, consequences, likelihood and mitigations for risks identified for the project.

The risk assessment conducted to date (refer to section 3.8) will continue over the project phases within the framework and according to the methodology below.

4.5.1 Risk Management Framework

The risk assessment process being followed is based on the Total Asset Management (TAM) Risk Management Guideline produced by the NSW Government Asset Management Committee, which in turn is based on AS/NZS 4360:2004 ‐ Risk Management Standard. The risk management framework is shown below.

https://www.finance.nsw.gov.au/sites/default/files/policy-documents/tpp08-5.pdf

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Figure 4-2: Risk management framework

4.5.2 Risk Assessment

• Risk identification – identification of all material project risks including their likely impact e.g. cost impact, timing impact, stakeholder objection, etc.

Risk exposure – determination of the risk exposure, being a function of:

Risk likelihood – being the likelihood or probability of the risk occurring, on a scale of 1 to 5 (as per NSW Treasury guidelines)

Risk consequence – being the consequence the risk will have, on a scale of 1 to 5 (as per NSW Treasury guidelines)

• Risk mitigation – identification of possible mitigation strategies to reduce the risk exposure.

A risk rating matrix is summarised in Figure 3-13, and enables each identified risk to be assigned a risk rating of either ‘low’, ‘medium’, ‘high’ or ‘highest’ on the basis of the consequence of the risk on broader objectives, namely, the overarching strategic objectives that govern council decision making and the likelihood of the risk occurring over the course of the project.

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Figure 4-3: Risk assessment table

Risk exposure = consequence x likelihood

Likelihood

Rare (L1) Unlikely (L2) Possible (L3) Likely (L4) Almost certain (L5)

Cons

eque

nce

Catastrophic (C5) Low 5 Moderate 10 High 15 Very High 20 Very High 25

Major (C4) Low 4 Moderate 8 High 12 High 16 Very High 20

Moderate (C3) Low 3 Low 6 Moderate 9 High 12 High 15

Minor (C2) Low 2 Low 4 Low 6 Moderate 8 Moderate 10

Insignificant (C1) Low 1 Low 2 Low 3 Low 4 Low 5

The risk assessment has been captured in a risk register which also includes the responsible agency or entity for the mitigation of each risk. The adjacent diagram shows the risk exposure matrix used to determine the risk exposure rating for each identified risk.

4.5.3 Risk assessment

The key areas of risk associated with the project have been identified as follows:

• Phase 1: Investment / planning;

• Phase 2: Design;

• Phase 3: Construction and completion;

• Phase 4: Management / operations, and

• Phase 5: Demand / market.

The following pages provide the outcomes of the risk assessment in detail. It is important to note that a number of key risks have already been considered with in the development of various packages of work, including development of design principles and as such, the risk assessment provides an overview of the broader project risks.

4.5.4 Financial Management of Risks

Contingency provisions have been made in the budget consistent with the stage of the project.

Costs associated with risks are also being progressively identified to allow the analysis and management of contingency during the project phases. Due diligence studies undertaken to date to identify and mitigate project financial risk and considered within the Business Case budget include:

• ESD and Design Excellence

• Geotechnical and contamination

• In-ground building services and utilities

• Site surveys and topography

• Heritage and archaeological

• Ecological

• Transport and parking

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4.6 Benefit realisation strategy The Benefits Realisation strategy is aligned with the overall Project objectives and describes the benefits that are expected to arise out of the Project’s implementation. These benefits will be realised due to, or as a direct step toward, achieving one or more of the Project’s outlined objectives. All benefits relate to a Project objective, and an objective can have one or many benefits associated with it.

Government Guidelines specify that a business case for a capital project identifies a benefit realisation strategy as part of a broader implementation plan to:

• document the benefits realisation methodology to be adopted; • describe the benefit to be achieved; • describe the contribution to Council service delivery, • identify the resources responsible for implementation and what will be managed and measured during

implementation. This is to ensure that the objectives and/or benefits will be achieved and to track whether the project is being implemented in a way to give assurance that the benefits will be achieved.

• identify performance measure or service level before and after the service change; and • identify target date(s) for the objectives and or benefit to be implemented or realised.

Benefits will be managed during the following project phases:

Figure 4-4: Benefits management across the project stages

Benefits are measurable either in quantitative or qualitative terms. Benefits will be measured according to a methodology that describes how the benefit will be measured, the frequency with which the benefit will be measured, and the source from which measurement information or data will be collected.

A large proportion of the community benefits associated with the new aquatic leisure centre are the private use benefits related to health and wellbeing, which will be directly proportional to the number of admissions.

4.7 Stakeholder consultation strategy As part of the process to develop the Feasibility Study (September 2017), Council conducted extensive consultation.

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This identified the following key principles to inform the planning for the centre and the basis for ongoing consultation:

• Maximise Accessibility and Inclusiveness.

• Diversity and a Wide Range of Services.

• Focus on Servicing the Local Catchment.

• Aim to Achieve Very High Levels of Usage.

• Ensure Capacity for Future Growth.

• Deliver as a Priority in the Shortest Possible Time.

• User Affordability.

• Financial Sustainability.

• Provision of Existing Services.

• Mays Hill Precinct Integration.

Council has been active in promoting its messages to the community, working with Infrastructure NSW (INSW), Parramatta Park Trust (the Trust) and other State government agencies who have a number of interests in this project. The next phase should focus on education of the community in regards to options and implications, confirming the vision for the new centre, support for funding opportunities, ensure design meets their needs, delivery of the centre and interim options whilst services are not available.

Council is committed to advocating the highest quality outcome for its community and ensuring their view points are considered in the design and construction of the new aquatic leisure centre.

4.7.1 Objectives The objectives are:

• To consult with and encourage engagement with a diverse range of stakeholders representative of Parramatta’s demographic diversity

• To raise awareness of best practice principles regarding aquatic leisure centre facilities within the community

• To identify and mitigate issues and concerns within the community and stakeholder groups • To maintain community and stakeholder confidence that Council will deliver a successful project • To keep community and stakeholders informed and provide regular updates on the project and key

milestones • To inform and understand community and stakeholder interests and objectives

4.7.2 Stakeholder engagement and communications plan The stakeholder communications and engagement plan at Appendix B has been prepared to implement the above objectives and principles.

This plan sets out Council’s approach to effectively engage customers, the community and internal stakeholders. Council will assist our community to have input into the design and development of the new Centre.

The plan outlines, who, what, where and how we will continue to engage the community and stakeholders. The community will be informed and consulted as each stage evolves. We will target stakeholders using clear key messages and objectives.

The plan is broken down into eight phases:

• Pre-concept and Opportunity Analysis - Complete • Precinct Master Plan and Site Selection - Complete • Business Case - November to December 2017 • Design Review - January 2018

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• Development Approvals - To be confirmed on submission of business case • Construction and Fit Out - To be confirmed on submission of business case • Completion - 2020 • Opening Event and Operations - 2020

Council undertook extensive initial consultation with the community to provide input into the Feasibility Study, identifying facility and service priorities and preferences for the new centre. It has also completed a detailed Community Needs Analysis.

Parramatta Park Trust has also overseen a comprehensive community consultation program in the delivery of the Mays Hill Precinct Master Plan, which identifies the preferred site.

4.8 Resourcing The project will be resourced through the governance structure identified in Section 4.2:

4.8.1 Roles and responsibilities

The table below sets out the roles and responsibilities of key resources

Table 4-2: Roles and responsibilities

What Who Role

Council • Lord Mayor and Councillors • City of Parramatta Council

• Sponsorship, oversight and provision of strategic direction for the project.

• Determination of project scope including governance framework, approval of business case for Council expenditure, selection of tendered services/ contracts and resolution of any significant issues requiring Council determination.

Project Control Group

• Project Director • Director City Services • Director Property & Significant Assets • Chief Financial Officer

• Project oversight/control by senior management.

• Approval of proposal to Council for project scope business case for Council expenditure and all major milestones including P3M and Assurance Framework gateways.

• Timely support, resolution and decision making for project issues including those outside the agreed budget, scope, schedule and resources.

• Regular reporting to Council with recommendation for decisions requiring Council determination.

Advisory Committee

• INSW • PPT • Director City Services • Project Director

• Independent advice on project plan and risk management including key stakeholder issues.

Lead Team

• Senior Project Manager • Project Manager • Manager Social & Community Services • Manager City Assets & Environment • Recreation Planner • ASPM

• Support PM to develop, implement and monitor project plan.

• Lead issue based teams and resources. • Recommend any changes to project plan

to PCG. • Timely support, resolution and decision

making for issues within the agreed

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What Who Role

• Senior Business Analyst – Finance • Executive Planner • Comms

project budget, scope, schedule and resources.

Issue Based Teams / Resources

For example: • Design • Aquatic Operations • Comms & community engagement • Property (including leasing) • Sustainability

Predominantly internal resources to deliver tasks within project plan and provide specialist advice.

Contractors / Specialist Consultants

For example: • Architect • Heritage consultants • Project management • Construction contractors etc.

External resources to deliver tasks with project plan and provide specialist advice.

Community Stakeholder Forum

User groups eg: • Swim Club • Water Polo Club • Schools Community members eg: • Advisory Panels • Casual Users

Provide forum to engage key community stakeholders in monitoring project development and delivery Provide feedback to Council on key project issues.

4.8.2 Project Team The Lead Project Team will be led by an appointed Senior Project Manager with a combination of internal stakeholders and key consultants and resources. Trish Tweedie, City Engagement will be drafted to join the Lead Project Team. A wider group of external consultants and internal subject specialists will be enlisted to assist on parts of the project based on issues and/or needs.

The Project Team will call upon subject specialists from the City Engagement and City Identity and Marketing teams to assist in the preparation, review and evaluation of all work associated with this Plan in addition to assisting with the procurement and management of any external resources engaged to assist with communications and engagement for this project.

Table 4-3: Project team

Role Name

Project Working Group / Lead Project Team

Project Manager Dearbhla Keane

Business Owner Gary Moore

Strategic Project Leader Brett Pettersen

City Engagement Lead Trish Tweedie

Urban Design/City Architect Guy Pinkerton

Aquatics Expert Warren Green (Consultant)

Lead Architect Sisson Architects

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Role Name

Extended Project Team

Heritage Consultant

Executive Planner (consultant)

Geotechnical Engineer Consultant

Surveyor (consultant)

Quantity Surveyor (consultant)

Utilities Planner (consultant)

Additional Project Manager resources

Assets Strategy and Property Management (ASPM) representative – future Asset Owner

Finance and Business Coordinator

City Significant Development

Procurement Services

Legal Services

Communications and Engagement Specialists

City Engagement Anthea Hall /Trish Tweedie

Research & Consultation Natasha Caldwell

Media Officer Brad Schmitt

Publications Coordinator Lisa Cedres

Website Coordinator Natasha Potzsch

City Identity and Marketing Laila Hage-Ali

4.8.3 Sourcing of resources

The above-noted Council resources are in place and have been involved in the project to date. External resources are being procured, with key advisers and the design team in place for the preparation of the feasibility and business case, including concept design and financial/economic assessment. Additional resources will be procured according to the stage of the project according to the project plan. Where external stakeholders are resources for the project (such as community consultation), these will be managed by the Lead Project Team.

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Appendix A: Aquatic Needs and Trends Report

1. Strategic Context

1.1.1 The Broader Context The NSW Government’s Metropolitan Strategy, A Plan for Growing Sydney, confirms Parramatta as a dual CBD and highlights the key role it plays in providing homes, jobs, businesses and healthy lifestyles into the future. A new aquatic leisure facility will advance the goals of A Plan for Growing Sydney by supporting the following goals:

• Goal 3 - A great place to live with communities that are strong, healthy and well connected

• Goal 1 - A competitive economy with world-class services and transport

For NSW 2021: A Plan to make NSW number one, a new aquatic facility would further a number of goals, including:

• Enhancing cultural, creative, sporting and recreation opportunities

• Building liveable centres

• Keeping people healthy and out of hospital

• Making it easier for people to be involved in their communities

• Increasing opportunities for seniors in NSW to fully participate in community life.

The Greater Sydney Commission’s plan, Greater Parramatta and Olympic Peninsula (GPOP) identifies the increasing need for improved recreational facilities. GPOP recognises that a clear path for public and private investment is required in a number of areas with an emphasis on recreation and healthy pursuits.

A new aquatics leisure facility in Parramatta will further the goals of other key NSW Government policies and plans, namely:

• Game Plan 2012: NSW Sport and Recreation Industry Five Year Plan

• Premier’s Council for Active Living NSW’s Operational Plan

• NSW Healthy Eating and Active Living Strategy 2013-2018

• Blueprint for Active Australia (Heart Foundation Australia).

1.2 City of Parramatta (CoP) Plans The development of a new modern aquatic facility will advance a number of actions in the current Community Strategic Plan in the areas of Economy, People & Neighbourhoods, and Culture. Additionally it would progress a number of key priorities identified in City of Parramatta’s Operational Plan including:

• Sport and Recreation - We will encourage active and healthy lifestyles by increasing participation in sport, physical recreation and other activities that improve health and wellbeing.

• Destination for Sport and Culture - Council will support existing facilities and work with other agencies to develop precincts, facilities and partnerships which maintain and enhance the City as the central sporting and entertainment destination for Western Sydney.

• In December 2016, the City of Parramatta, following significant community consultation, adopted a new Vision Statement and Priorities. One of these priorities is to maintain accessible and high quality facilities to promote healthy and active lifestyles amongst the growing local population.

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1.3 Changes to Aquatics in Parramatta Several recent and significant changes have occurred to the aquatics services and facilities overseen by the City of Parramatta Council.

• The announced closure of the Parramatta War Memorial Swimming Centre (PWMSC) in March 2017 to make way for the new Western Sydney Stadium development; a

• $300 investment by the NSW Government.

• Local government amalgamations, reforming Parramatta’s boundaries with a different mix of assets and services under its control and incorporating new communities with unique needs and preferences.

2. Local Demand for Aquatic Facilities and Services

2.1 Micromex Research Micromex Research undertook a study of Sport and Recreation Participation in the City in March 2015 and the following is a summary of the key consultation findings.

Key themes associated with aquatic participation and provisions were identified as:

‘Reasons users participate in indoor/aquatic activities in the nominated suburb rather than somewhere else’.

Proximity and ease of access are key drivers of participation with just under three quarters (73%) of participants choosing a certain location ‘because it’s close to home’ with a touch over half (52%) of participants only ‘spend up to 10mins to travel’ to the facility.

‘Main reasons for participation in these aquatic/indoor activities’.

The survey identified that aquatic and indoor recreation is largely a social experience with just under two thirds of activities (62%) undertaken with someone else, and in 35% of cases, residents cited ‘socialise/part of organisation/meet people’ as a reason for participation.

Drivers of participation

• General Fitness (75%)

• Lose weight (26%)

• Challenge/achieve goal (25%)

• Sense of community (18%)

Preferred features of aquatic/indoor recreation centre (across users & non-users)

• 71% Restaurant/café

• 69% Outdoor BBQ and family areas

• 68% Indoor heated pool

• 59% Wellness centre; such as physiotherapy, sports medicine, massage, nutrition

• 57% outdoor heated pool

• 53% Water slides

• 51% basic gymnasium, including cardio, weights

• 49% serviced gymnasium, including group fitness and personal training

• 46% Multisport courts to use for futsal, basketball, netball, badminton

• 41% Program/hydro pool to use for aqua aerobics/aqua fitness, rehabilitation

• 40% water play equipment, for children up to 12

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Aquatic and indoor recreation attitude statements

• 81% agree or strongly agree that aquatic and other recreation centres and facilities help improve the quality of life for residents

• 69% agree or strongly agree Parramatta needs an indoor recreation facility for sports like basketball, futsal, badminton etc.

• 69% agree or strongly agree Parramatta needs a larger facility combining a wide range of both aquatic and indoor sport and recreation services

• 63% agree or strongly agree Parramatta needs an indoor swimming facility

• 61% of respondents Agree or Strongly Agree that they are likely to change their recreation habits should improve facilities be available in Parramatta.

3. Assessment of community need and demand

3.1 Benefits to the Community PWMSC has serviced residents, workers, schools, community organisations and elite sporting bodies for almost 60 years, and recreational opportunities and assets like PWMSC take on major significance as the City continues its enormous growth toward realising its vision of becoming Sydney’s central city; sustainable, liveable and productive – inspired by our communities. A focus on recreation has the ability to positively impact on a City’s liveability and amenity, and substantially support the wellness of a fast growing population.

3.1.1 Recreation and Leisure Benefits – Reduced Morbidity

• Sport contributes to economic growth through business investment and employment, and helps sustain the environment through protecting open space and natural areas

• Helps promote the use of active modes of transport

• Positive impacts on physical and mental wellbeing

• Reduces absenteeism and improves productivity

• Health and social benefits for the aged including mobility and engagement.

3.1.2 Water Safety Awareness – Reduced Mortality

• Better access to and efficacy of water safety programs can reduce the incidence of drownings. These programs are important for infants and young children and can further be effective in targeting the specific needs of individual communities. For instances in the Parramatta local government area, there are a range of cultural and migrant groups where swimming may not be a traditional past time.

3.1.3 Social Benefits

• Improved social cohesion and educational outcomes for young people

• Increasing community participation in organised sport and recreation contributes to what is known as ‘social capital’, it ties members together in a given locality. Sports clubs and community organisations are important conduits for developing such capital and are good barometers of community strength

• Sport and recreation helps to build communities through social inclusion and a sense of connection. Through participation, sport helps address anti-social behaviour and can support education. It can reduce alienation and loneliness.

• Integrated and accessible leisure services are critical to the quality of life of people with a disability and disadvantaged individuals

• Community recreation promotes ethnic and cultural harmony

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• Recreating together builds strong families, the foundation of a stronger society

• Open space and recreation facilities are known to improve the property values of surrounding properties

• Sport and leisure provide leadership opportunities that build stronger communities

• Leisure provides opportunities for community engagement and community involvement in the shared management and ownership of resources

• Leisure opportunities, facilities and the quality of the local environment are the foundations of community pride

• Encourages volunteering

• Leisure services enrich and complement protective services for latchkey children through after-school and other recreational services.

3.2 Current Aquatics Facilities, Services and Users Parramatta War Memorial Swimming Pool (PWMSC) is the aquatic facility Council established and currently manages in central Parramatta on land leased from Parramatta Park Trust. This facility will close on 31 March 2017 to make way for construction of the Western Sydney Stadium. The current facility includes a variety of outdoor pools and associated facilities including kiosk / merchandise facilities, waterslides, diving and program room space for hire.

The PWMSC currently experiences over 160,000 visits per annum:

• 3,300 Learn to Swim enrolments

• 35 swimming carnivals (12,562 students)

• 14 primary school programs (5.666 students)

• 5 high school learn to swim programs (2,608 students)

• Parramatta Memorial Swim Club

• Parramatta Water Polo Club

• Swim Squads

• Recreational swimmers and lap swimmers – Casual Users and Members

• Over 45% of casual swimmers and members live within 3 to 4 km of the Centre and over 70% reside within the LGA. A significant number of those who live further away, but work within the CBD or surrounds.

• Over 75% of Learn to Swim participants (after-school and weekend participants) live locally in the suburbs of Parramatta, North Parramatta and Westmead.

• 12 other user groups on a semi regular basis, including:

- Parramatta Eels

- Aussie Masters

- Youth of the Streets

- DET – 6 Schools (325 students)

- Go4Fun

- Onebody Tri Club

- Pink Triathlon

- NSWIS squads and diving

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- School associations and State Sporting Organisations – organised competitions and carnivals swimming and water polo

3.3 Aquatics Market Segments Modern public aquatic centres service a variety of users by offering a wide array of options, including learn to swim, rehabilitation treatments, community gathering points, weight training and other recreational and health opportunities. In this way, these new centres are tapping into the various markets with a diversity of offerings. Identified markets for these facilities include:

• Recreation and Leisure

This market segment involves people that visit pools to relax, cool down, do some modest exercise, socialise, play with their families and friends and/or generally have fun.

- Families

- Children

- Seniors groups

- Holiday programs

- Children’s parties

• Fitness/wellness/health

The fitness/wellness market includes people who visit pools to enhance their fitness levels and sense of well-being or rehabilitate from injury or illness.

- Rehabilitation programs

- Wellness Programs

- Aqua aerobics

• Education/skills/safety

The education/skills market includes people wanting to learn how to swim or enhance their swimming skills.

- School programs

- Learn to Swim (LTS)

- Stroke correction

- Lifesaving training

• Competition/training/fitness/sports

It includes schools and swim and other aquatic clubs that hold competition events and train their students or members to participate in these events.

- Adult lap swimming

- Corporate fitness

- Carnivals/competitions

- Club training

- Swim squads

- Aquatic sports (scuba diving, water-polo, synchronised swimming, canoeing)

3.4 Participation Trends The following participation trends show what sports and activities are the most participated in, highlighting swimming participation in relation to all sports and activities. Further it shows sports and activities that are important to this study as they are common activities that complement modern aquatic and leisure facilities by providing a more sustainable business model in offering a diverse range of recreation options.

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3.4.1 Adult Participation Trends The Exercise, Recreation and Sports Survey (ERASS) was a joint initiative of the Australian Sports Commission and State and Territory Departments of Sport and Recreation, conducted annually between 2001 and 2010. The Australian-wide survey depicts the average participation rates for people aged 15 years and over for exercise, recreation and sport during the 12 months prior to interview (Table 1 see below).

ERASS provides participation rates nationally and for each state and territory. Both in Australia and NSW, swimming is the third most participated activity. Two other activities important to this study (aerobics/fitness - 2nd, and netball -10th) are inside the top 10 most participated activities. These activities are complementary to aquatic leisure centres, now common in modern facilities where more sustainable business models can be made.

The lower half of Table 1 identifies additional relevant activities. All of these sports identified in the lower half are complementary activities that are commonly found in modern aquatic centres through program rooms and indoor multipurpose courts, offering diverse recreational opportunities for a variety of different users resulting in a superior business model.

The Parramatta context through a separate community survey (Micromex Research Survey, 2015) portrays a similar story. However swimming moves into second (22%) accounting for almost a quarter of people’s choice for a physical activity, weight training (10%) is ranked 6th choice whilst aerobics/fitness is almost 10% lower in participation rates. Many of the participation rates for Parramatta are low due to a lack of facilities that appropriately accommodate these activities, predominately a lack of indoor sport and leisure facilities.

There is a need to accommodate appropriate activities for seniors that consider their physical capacity. Having healthier seniors provides a range of benefits both for the community and the individual, including reduced social and economic costs on the health system. Within the Parramatta LGA, 17% of residents are currently aged 60 years and over with the overall number expected to increase as the population continues to age (City of Parramatta Demographics 2016).

TABLE 1: Total participation in specific activities (organised and non-organised), Australia & NSW, 2010 (ERASS).

Australia NSW Parramatta

Activity

Participation %

Participation %

Male

Female Participation

%

Top

10

Walking 35.9 34 23.9 43.8 33

Aerobics/Fitness 23.5 22.4 19 25.7 14

Swimming 13 13.6 13.8 13.4 22 Cycling 11.9 10.6 13.7 7.6 14

Running 10.6 9.1 11.2 7.1 8

Golf 6.7 7.6 13 2.4 4

Tennis 6 6.8 7.7 5.9 4

Bushwalking 4.8 4.8 5.5 4.2 9

Football (outdoor) 4.8 6.5 9.2 4 14

Netball 3.7 3 **0.3 5.7 5

RANK

Addi

tiona

l Act

iviti

es

Rele

vant

to

T11 Basketball 3.5 2.6 3.4 1.7 3

T11 Yoga 3.5 3.4 *0.6 6 3

15 Weight Training 2.9 2.4 2.9 2 10

T21 Football (Indoor) 1.9 1.6 2.5 *0.8 3

T23 Squash 1.4 1.6 2.2 *1.0 <2

T28 Volleyball 1.2 *0.6 *0.7 *0.5 <2

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30 Aquarobics 1.1 0.9 19 25.7 <2

T36 Badminton 0.7 *0.4 **0.4 **0.4 <2

T36 Cricket (Indoor) 0.7 *0.4 *0.8 **0.0 <2

T41 Table Tennis 0.6 *0.4 **0.3 *0.4 <2

T46 Gymnastics 0.3 *0.4 **0.3 *0.6 2

T52 Water Polo *0.1 **0.1 **0.1 **0.0 <2

*Estimate has a relative standard error of between 25% and 50% and should be used with caution

**Estimate has a relative standard error greater than 50% and is considered too unreliable for general use

3.4.2 Children Participation Trends A study of children between the ages of 5-14 years by the Australian Bureau of Statistics (ABS) depicts their participation in culture and leisure activities for Australia and NSW. It is important to note that these statistics are for participation outside of school hours during the 12 months prior to the interview.

Based on Australian participation rates, swimming (17.7%) tops the list for the most popular organised sport for children aged 5-14 years see Table 2 below. Netball and basketball both have strong participation rates at around 8% Australian- wide and are important to this study as they are complementary sports to modern aquatic centres, providing a more sustainable business model.

More boys participated in sport than girls; two thirds of boys (66%) were involved in at least one organised sport compared to just over half of all girls (54%). Participation was higher for children born in Australia (61%) compared with those born overseas (52%) and higher for children in couple families (64%) compared with those living in one-parent families (48%) (ABS 2012). This is significant to the Parramatta context as 44.5% of residents are overseas born and 9.6% of household types are a one parent family with children.

Table 2: Children’s participation in Culture & Leisure Activities, Australia & NSW, 2012 (ABS 2012)

PARTICIPATION RATES (%)

Participation in organised sports (excluding dancing) NSW AUSTRALIA

ALL MALE FEMALE ALL

Swimming and diving 18.2 16.2 20.4 17.7 Soccer (outdoor) 21.3 32.3 9.7 14.3

Australian Rules football 2.6 4.3 0.7 8.1

Netball 8.1 ..C ..C 8

Basketball 5.1 6 4.1 7.9

Tennis 6.8 7.5 6.1 7.4

Martial arts 5.2 7.2 3.1 5.8

Gymnastics 4.4 1.6 7.3 4.8

Cricket (outdoor) 4.5 ..C ..C 4.7

Rugby League 6.6 ..C ..C 3.9

Athletics, track and field 2.6 2 3.2 3.2

Rugby Union 2.8 ..C ..C 2.1

Touch football 2.9 3.7 2.2 1.8

Soccer (indoor) 1.6 2.5 0.7 1.7

Hockey 0.9 0.5 1.3 1.6

Other organised sports 9.8 10.3 9.2 10.5

SELECT RECREATIONAL ACTIVITIES

Bike Riding 62.6 68.7 56.2 63.5

Skateboard/roller/scooter 52.3 57.5 47 53.8

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3.4.3 Swimming Trends Swimming is one of the highest participated recreational pursuits undertaken by Australian’s in both organised and non-organised settings. With such high participation rates and a diverse range of users, aquatic facilities and programs have had to adapt to accommodate the broad range of users. The overall average adult participation rate based on Australian figures despite fluctuations has remained fairly steady at 14.44%. It is observed that every 4 years (Olympic game years - 2004 & 2008) there are spikes in participation rates. Nation-wide for children aged 5-14 years, participation rates had an overall increase from 2003 to 2012, making it one of the most participated activities for children to take part in. See Table 3 below.

A recent annual report by the Royal Life Saving Society Australia (2016), recorded a total number of deaths due to drowning was 280, most occurring in NSW (34%). Noteworthy for the Parramatta LGA is that 9% of drowning’s were from overseas tourists (almost half of those being from Asian countries) and 33% were aged 14 or under. Within the Parramatta LGA, 44.5% of residents are born overseas with the two of the top three represented counties being from Asian backgrounds. Further, 14.5% of Parramatta’s community are 12 years and younger. A large and important role of the aquatic team is developing swimming competency for all ages and communities, many residents are not from traditional swimming nations.

Within the Parramatta LGA, 20% of those with a disability participated in at least one aquatic/indoor recreation activity. This suggests those with a disability can use the facilities and potentially would even more with the inclusion of appropriate programming pools, better access, wellness centre facilities and increased services. The challenge for Council is to understand the needs of those disabled residents who haven’t used these facilities previously and how they can be accommodated for, particularly with world class health facilities located at Westmead who could draw on these facilities.

TABLE 3: Participation rates from both Australia and NSW for adults (15yrs and over) – (ERASS, 2010). Participation rates for children (5-14yrs) (ABS 2012)

Adult (15 yrs and over) Children (5-14yrs)

Year NSW Australia Year Australia

2001 2002

No. ('000) % No. ('000) % No.('000) %

967.4 877.5

19 17

2,415.50 2,278.00

16 14.9

2003 915.6 17.5 2,383.10 15.3 2003 439.1 16.6 2004 2005

961.8 871.7

18.3 16.4

2,605.70 2,311.20

16.5 14.4

2006 814.7 15.4 2,200.00 13.7 2006 462.5 17.4 2007 2008

737.7 875

13.8 16.1

1,966.20 2,414.00

12 14.5

2009 813.1 14.5 2,419.10 14.1 2009 502.9 18.5 2010 771.2 13.6 2,279.20 13

2012

492.1

17.7

AVERAGE 860.57 16.16 2,327.20 14.44 AVERAGE 474.15 17.55

3.5 Current and future demographics More than two million people currently live west of Sydney Olympic Park, good for almost one in two Sydney-siders with around 300,000 people travelling outside of the region to work.

The Parramatta community specifically, is young and fast growing. Through the recent council amalgamations an additional 35,719 people have been added to the LGA, resulting in a population of 236,272 in 2016 and a median age of 35. The total population is forecasted to grow exponentially to 397,339 residents by 2036. This

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equates to a 2.72% growth rate over the twenty year period, the growth rate for 2014-15 alone was 3.5%. In contrast, for the year 2015, NSW’s growth was 1.4%, Sydney just up from that at 1.7% and the fastest growing major city, Melbourne, grew at 2.1%.

The fast growing community of Parramatta is very diverse, 44.5% of residents were born overseas and 39% of those residents come from non-English speaking backgrounds. The top three countries outside of Australia represented within the LGA are China (8.1%), India (7.8%) and South Korea (3.4%).

The City of Parramatta is established and family oriented with 27% of residents completely owning their house, 32% have a mortgage and 28% are renting. The average household size is 2.68 people with 46% of households comprising of ‘families with children’.

Overall, the City of Parramatta is relatively prosperous having a median household income of $1,453 a week; however the wealth is concentrated in the upper echelon (28.2% of residents are in the highest bracket and 26.4% in the lowest).

Despite the increased prosperity and growth, there are still vulnerable communities. The unemployment rate is relatively high (6.5%) compared to NSW’s rate (5.0%). The youth unemployment rate is 14% (National Rate: 12.8%) and youth disengagement is 6.5% (15-24yrs who are neither employed or in education). Further, 14% of residents don’t have access to the internet, 6% live in social housing and 4% require daily support due to disabilities.

Figure 2: Forecast population, households and dwellings for the City of Parramatta

Figure 3: Age structure comparison for 2016 and 2036

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3.6 City Growth The City of Parramatta has been identified through NSW’s A plan for growing Sydney as being the second CBD or in the Greater Sydney Commissions plan as the ‘Central City’ for greater Sydney. As such, there has been significant investment, close to $10 billion in upgrading important infrastructure, services and transport services.

TABLE 5: Greater Parramatta and Sydney Olympic Park job estimates for 2016 and 2036

Precinct 2016 Jobs estimate

2036 Baseline estimate

2036 Higher estimate

Greater Parramatta* 96,500 156,000 170,500

Sydney Olympic Park 30,100 45,000 46,500

* “Greater Parramatta” covers Westmead, Parramatta North Urban Renewal Area, Parramatta CBD, Camellia/Rydalmere

employment areas. Greater Parramatta is estimated to increase by between 59,500 and 74,000 workers; and

Sydney Olympic Park is estimated to increase by between 14,900 and 16,400 workers

TABLE 6: Population density

Year

Population LGA

Workers Greater Parramatta

Workers - GPOP

Density GPOP

Density LGA

2000 136000 55000 75000 12.41 16.90

2012 203000 96500 126600 22.29 24.17

2024 317000 130000 150000 44.70 37.74

2036 397000 156000 201000 65.54 47.26

3.7 High Density Living The Heart Foundation identifies high density living as an area that has 60+ dwellings per hectare. With the fast and increasing development of Parramatta, it is becoming evident that high density living needs to accommodate for young families with children and not just the young workforce. Appropriate nearby

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amenities are required to help support the growing number of people and families living in high rise dwellings, whether they be transport hubs, shopping centres, recreation facilities or green space.

High density living typically requires residents to forgo private open space. As such, this increases the demand of public open space and other recreational offerings to substitute for the lack of private open space. A large part in complimenting high density living is having equitable, close and easy access to open space and recreational opportunities.

3.8 The Unique and Diverse Communities of Parramatta The demographics of Parramatta vary significantly across the LGA with each neighbourhood and suburb having their own unique and demographic qualities. A quick comparison between Harris Park and Winston Hills demonstrates that a blanket approach in planning will be inappropriate and likely miss the desired outcome of a plan.

TABLE 7: Comparison between Harris Park and Winston Hill for selected parameters

High Density % Low Density % Overseas Born % Indian %

Harris Park 65.2 9.7 70.6 40

Winston Hill 0 91.4 26.6 1.9

3.9 Healthy Active Lifestyles In response to the following health data (Figure 4), the City of Parramatta Council is committed to providing opportunities for residents, workers and visitors to improve their health and wellbeing.

A new modern aquatic centre would assist in facilitating access to activities and information, providing a platform for new and existing residents to engage with fellow peers, family members and the general public. Furthermore, it would target a wider population including youth, families, over 55’s, Australian Torres Strait Islanders (ATSI), Culturally and Linguistically Diverse (CALD) and workers.

Finally, the importance of supporting and enabling healthy active lifestyles from a young age is extremely important as studies have shown the most important long term consequence of childhood obesity is its persistence into adulthood and the related chronic diseases associated with obesity.

Figure 4: Health statistics for the Parramatta LGA prior to amalgamations in comparison to western Sydney

Parramatta has a HIGHER LEVEL of OVERWEIGHT PEOPLE

Parramatta has lower levels of LIFE EXPECTANCY than

Parramatta has a greater level of PSYCHOLOGICAL DISTRESS

Parramatta residents DO NOT UNDERTAKE the

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4 Aquatic Provision and Facility Trends

4.1 Aquatic Facility Trends While PWMSC is perhaps typical of large, outdoor aquatic facilities built in the 1960s, the inclusion of a variety of pools, play features and hydrotherapy options now available in many modern aquatic centres allows for different aquatic experiences, different needs to be met and more sustainable business models (Warren Green Consulting: Sport and Leisure). Modern aquatic facilities are increasingly diverse to cater to localised needs, gaps in facilities and services and available capital. The features outlined below are now commonly considered when prioritising the elements of a modern aquatic facilities.

4.1.1 Dedicated Learn to Swim Pools These pools, which are generally around 10m by 12m with a temperature of 34 degrees Celsius and depths ranging from 0.7m to 0.9m, cater for in excess of 50% of a Centre’s total LTS participation. A successful learn to swim program is critical to the overall financial sustainability of contemporary leisure aquatic centres.

4.1.2 Water Play Areas – Leisure Water Leisure water includes sprays, tipping buckets, fountains, small water slides and the like. Modern water play installations are highly interactive and can transform aquatic centres into entertainment destinations and increase activity levels in children aged from 2-14 years of age.

4.1.3 Warm Water Exercise Pools Physiotherapists, general practitioners, personal trainers and other healthcare professionals are increasingly prescribing aquatic exercise programs for patients and clients. Arthritis patients have an increased range of movement and more flexibility in water, allowing them to improve their physical condition.

As the population continues to age, the demand for venues to deliver aquatic therapies will grow. In response to the increased demand for warm water activities, most new facilities now incorporate either a hydrotherapy pool or a warm water exercise pool.

4.1.4 Universal Design and Disability Access The concept of Universal Design is to simplify life for everyone by making the built environment more usable to as many users as possible. It differentiates from accessible design as it is based on equitable use of a facility and social inclusion.

Changes to government legislation with regard to disability access means that modern facilities now require ramp access into all pools, hoists and accessible toilets and change facilities. Indoor heated pools are now more widely used by disability groups and individuals.

4.1.5 Family and Group Change Facilities Change villages are a low cost way of increasing overall change facility capacity and providing dedicated change facilities for families.

4.1.6 Group Training or Meeting Spaces Provision Major redevelopments have incorporated the provision of additional group training or meeting spaces for a range of activities including: community meetings, educational sessions, allied health services, spin classes, traditional aerobics, older adult programs, special needs groups sessions, programs for minority or ethnic groups and alternate training (e.g. yoga, tai chi, Pilates etc.) These spaces have been shown to increase customer retention, facilitate social interaction between users, create a sense of belonging, enhance overall financial performance and create a point of difference with the private sector.

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4.1.7 Environmentally Sustainable Design (ESD) and Management Reducing energy usage is an increasingly critical part of centre management plans, facility design and operations. Energy and water costs are predicted to continue to rise, therefore requiring increased capital investment in ESD to assist with long-term viability. This trend is likely to continue as people become more educated regarding the impact of ESD.

4.1.8 Reception Foyer Areas Designed to Take Into Account Self-Entry Opportunities

Changes in technology have made the implementation of self-entry options possible in leisure aquatic centres. Self-entry involves customers swiping their membership cards over a scanner to gain access through entry gates in the foyer. Self-entry systems have many benefits including quick entry for members, reduction of queues, enhanced capacity to manage over the counter enquiries and some reduction in staff costs.

4.2 Provision Standards Regional Aquatic Facility - for every 100,000 to 150,000 people:

• Extensive and varied program leisure water attractions

• Inclusion of indoor 50m pool and separate warm water pools

• Wellness/health club and extensive program room inclusions

• Complementary services and amenities, crèche’, food and beverage

• (Aquatics and Recreation Victoria (2011) Guidelines)

Indoor Sport Facility - for every 40,000 to 60,000 people:

• A high order 4-6 court or;

• 1 indoor court for 15,000 people

• Multipurpose spaces

• Complementary amenities

• (Planning for Community Infrastructure in Growth Areas (2008)

Based on the current size and forecast growth of the Parramatta CBD and surrounding areas (within 3-4km), regional scale facilities would service a local catchment of residents, workers and students.

The summary below provides a sample of aquatic and leisure facility visitation levels at local government aquatic and leisure facilities 2015.

Table 8: Council Aquatic and Leisure Participation Levels (2015)

Council (pre amalgamation)

LAC Attendances per LGA (per

annum)

Number of Facilities per

LGA

Average Visits per Centre (per

annum)

Visits per Head of Population (per

annum)

Bankstown 424,408 4 106,102 2.1 Canterbury 295,000 2 147,500 2 Fairfield 1,144,000 3 381,333 5.6 Holroyd 178,000 3 59,333 1.6 Hurstville 1,051,000 1 1,051,000 12.2 Liverpool 483,000 3 161,000 2.4 Parramatta 280,000 2 140,000 1.5 Sutherland 1,140,000 3 380,000 5.1 Total 4,995,408 21 2,426,268 2.1

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Table 4 indicates that the average 2014/15 level of aquatic and leisure participation for the Councils reviewed was 2.1 visits per head of population, whilst the Parramatta participation was 1.5 visits per head of population. This was the lowest level of participation at the Councils reviewed at the time.

In addition to the above, some examples of multi-purpose, indoor/outdoor, aquatic and leisure facility attendances are as follows:

• Hurstville Aquatic Leisure Centre - 1.05M per annum

• Prairiewood Leisure Centre - 544K per annum

• Sutherland Leisure Centre - 800K per annum.

4.3 Service and Facility Delivery The Centre for Environmental and Recreational Management (CERM) at the University of South Australia has been operating a benchmarking program for public recreation and aquatic centres in Australia and New Zealand for over 20 years. This project is known as CERM Performance Indicators (CERM PI) and enables benchmarking against like facilities in over 60 management performance indicators.

Councils and management operators are able to compare their results against the average results for their group of like facilities. CERM PI data can also be used to make comparisons against previous year’s results and be used to set KPI’s in business plans or personal performance plans (Guidelines for Outdoor Seasonal Pools, 2016).

Parramatta War Memorial Swimming Centre (PWMSC) is categorised in ‘Group 5’ facilities, meaning it only has outdoor pools. Below is a comparison of key identified benchmarks for PWMSC to the CERM PI for the year 2014-15:

Table 9: Service and facility delivery

CERM PI 2014-15 PWMSC 2014-15 Actual Figures

56% expense recovery 61% expense recovery

29 visits per metre squared 39 visits per metre square

59,132 total visits per year 159,321 total visits per year

Total Space 2,075m2 Total Space 4,100m2 37,000 catchment (5km radius) 164,153 catchment (5km radius)

-$3.81 surplus (subsidy) per visit -$5.83 surplus (subsidy) per visit

Secondary spend per visit $1.02 Secondary spend per visit $1.67

Fees per visit $4.02 Fees per visit $7.39

Full time equivalent staff (7) Full time equivalent staff (29)

Labour Costs $348,896 Labour Costs $1,419,401

The CERM benchmark for this category of facility includes both large and smaller outdoor operations. PWMSC is a larger facility with 4,100sqm compared to the average facility in this category and offers a larger range of services and capacity. This is reflected in the significantly higher annual visitation and it performs well on relative scale, observing 39 visits per square metre to 29 visits per square metre.

The current PWMSC subsidy per visit is $2.02 higher than the benchmark, despite higher additional secondary spend per visit and overall visitation figures. This is due mainly to the layout of the large facility (and thus greater quantum of plant and staffing required), type of services provided (consistent with a district scale facility – e.g. dive/water polo pool and large water slides), all-year operation and the service quality provided (through higher staffing numbers). For example the dive and water polo pool is not common in all facilities within this category and has a similar quantum of water and plant to manage to the Olympic 50m Pool, therefore has a similar operating cost but far less usage. Also, all-year round facilities are more expensive per

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visit to run over the cooler months with the typical drop in attendances and higher costs of heating in colder conditions.

As such, PWMSC is a more expensive facility to run compared to the average outdoor and summer only community facilities, but services a much larger population base, provides more services and thus greater outcomes to the community.

The PWMSC performs relatively well for its facility type in most financial metrics but is considered to be only a moderate performer in terms of annual attendance when compared to other metropolitan facilities. In comparison to centres at nearby Wentworthville, Granville and Merrylands (whom experience between 40,000 and 90,000 visits per annum), it is the most popular and well used facility, but more extensive facilities in Blacktown and Ryde with indoor and other features experience numbers well over 400,000 visits per annum. Sydney Olympic Park Aquatic Centre averages over 1 million visitors per annum.

4.4 Other Key Influences on Aquatic Facility Provision

4.4.1 Leisure and Wellness Prior to the council amalgamations, residents of Parramatta LGA noted that having wellness facilities located within an aquatic centre was the fourth most desirable feature that would likely increase their visitation (Micromex Research Survey, 2015).

Modern aquatic centres with both wet and dry recreational offerings typically record higher visits per square metre, higher expense recovery, high secondary spend and provide an excellent range of programs for users.

4.4.2 Cooling Off There has been a 72% increase in the days equal to or above 35°C in Parramatta in 2015 than in 1967 with this trend predicted to increase. Parramatta has averaged 10.4 days equal to or above 35°C a year since 1967 compared to only 3.5 days in Sydney.

A further analysis indicates that in the 2015 year, Parramatta had:

• 15 days (4%) with temperatures over 35°C (5 days above the 48 year average)

• 32 days (9%) with temperatures between 30°C and 35°C

• 95 days (26%) with temperatures between 25°C and 30°C

• 106 days (29%) with temperatures between 20°C and 25°C.

• 117 days (32%) with temperatures under 20°C.

• 142 days (39%) with temperatures 25°C and above.

Figure 5: Annual days > 35°C from 1967 to 2015 comparing Parramatta to Sydney CBD.

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Annual Days 35°C and Above

25

Parramatta

20

Sydney CBD 15

10

5

0 1967 1972 1977 1982 1987 1992 1997 2002 2007 2012

Year

Annu

al d

ays a

bove

35

deg.

C

4.4.3 Private Swimming Pool Use

• There is a small substitution effect of people with private swimming pools only using their own and not needing public swimming pools however, private swimming pools generally provide a limited form of recreational aquatics. They generally won’t service people’s needs for aquatic sport, water safety skills and substantive recreation for fitness (limited). Further, they only in fortunate circumstances provide water play (small slides) and have limited social connection.

• This is not stating one is better than the other, but rather they are complimentary in providing for the broad spectrum of wants and needs. Importantly, having private swimming pools won’t defer the need for a public offering.

• Prior to the amalgamations, the Parramatta LGA had close to 5,000 private swimming pools on council records. With the boundary change new data is being collected to update this figure, however a number of assumptions can be made: many of the pools previously accounted for remain within the new LGA boundary, assume higher number as there is an increase in households within the new LGA (7,875 new dwellings) and assume higher number as many households in new areas are single detached houses (most common housing type for private pools).

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Appendix B: Stakeholder Engagement and Communications Plan Parramatta is experiencing significant change as it transforms into Sydney’s Central City and as a key focus for economic and cultural outcomes for Western Sydney – Australia’s third largest economy and one of its fastest growing regions. Critical to the success of the Greater Parramatta and Olympic Peninsula (GPOP) investment corridor, significant infrastructure is being put in place to support major growth in employment, the economy, and housing, social and cultural needs. The expected outcome is to make Sydney easier to live in, more productive and with greater capacity for the continued population demands. The City of Parramatta local government area is expected to double in population from 220,000 to almost 400,000 residents by 2036 with the addition of a substantial transient population of workers and students coming into the City each day. The Council is focused on providing services and facilities that support the liveability of a great and vibrant city where local community growth will need to consider the broad diversity in cultural composition and their associated interests and needs. To accommodate this growth in residents, workers and students, the success of the GPOP area will rely upon increased density in commercial and residential development, high levels of transport connectivity and the rollout of planned infrastructure. By 2036, a regional level population (approximately 200,000 residents) is expected to live within a ‘local’, highly walkable and accessible 3km radius of Parramatta Train Station. A further 90,000 to 100,000 workers and 35,000 students are also forecast to be located within that local catchment area. This will create unprecedented demand for the provision of recreational spaces and activities and will require both a planning and behavioural change in the way space is used and people navigate the city. As capacity and development increases, private recreation space will become scarcer but also more necessary. High density living and working places greater importance and dependency on public recreation offerings. While the redevelopment of a new Western Sydney Stadium has meant the loss of a treasured community asset in the form of the Parramatta War Memorial Swimming Centre (PWMSC), it provides a timely opportunity to replace an aged facility with a new, contemporary leisure facility and range of services that reflect the evolving population of Parramatta. Such facilities are best placed to respond effectively to greater community demand and expectation for higher quality and greater diversity of service offerings, Together with the NSW Government and Parramatta Park Trust, the City of Parramatta has identified the Mays Hill Precinct as the best possible location of a new, contemporary community leisure offering with capacity to service the rapidly evolving and expanding Parramatta community for 50 years and beyond. Further, the NSW Government has announced a commitment of $30 million in funding towards the new aquatic centre. Council has also committed up to $30 million and is developing strategies to fast track delivery of the project for opening in 2020. This plan sets out Council’s approach to effectively engage customers, the community and internal stakeholders. Council will assist our community to have input into the design and development of the new Centre. The plan outlines, who, what, where and how we will continue to engage the community and stakeholders. The community will be informed and consulted as each stage evolves. We will target stakeholders using clear key messages and objectives.

The plan is broken down into eight phases:

1) Pre-concept and Opportunity Analysis - Complete 2) Precinct Master Plan and Site Selection - Complete 3) Business Case - November - December 2017 4) Design Review - January 2018 5) Development Approvals - To be confirmed on submission of business case 6) Construction and Fit Out - To be confirmed on submission of business case

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7) Completion - 2020 8) Opening Event and Operations - 2020

The first two stages have been completed already. Council has undertaken extensive initial consultation with the community to provide input into the Feasibility Study, identifying facility and service priorities and preferences for the new centre. It has also completed a detailed Community Needs Analysis. Parramatta Park Trust have also overseen a comprehensive community consultation program in the delivery of the Mays Hill Precinct Master Plan, which identifies the preferred site. The communication and engagement program outlined in this plan addresses Phase 2 and will be updated following the outcomes of the Business Case and Proposal Phase.

Council has been active in promoting its messages to the community, working with Infrastructure NSW (INSW), Parramatta Park Trust (the Trust) and other State government agencies who have a number of interests in this project. The next phase should focus on education of the community in regards to options and implications, confirming the vision for the new centre, support for funding opportunities, ensure design meets their needs, delivery of the centre and interim options whilst services are not available.

1.1 Stakeholder engagement and communication objectives Council is committed to advocating the highest quality outcome for its community and ensuring their view points are considered in the design and construction of the new aquatic leisure centre.

The communications and engagement objectives are:

• To consult with and encourage engagement with a diverse range of stakeholders representative of Parramatta’s demographic diversity

• To raise awareness of best practice principles regarding aquatic leisure centre facilities within the community

• To identify and mitigate issues and concerns within the community and stakeholder groups

• To maintain community and stakeholder confidence that Council will deliver a successful project

• To keep community and stakeholders informed and provide regular updates on the project and key milestones

• To inform and understand community and stakeholder interests and objectives

1.2 Project governance The Project will be delivered by the City of Parramatta. It will be subject to Council’s P3M project management framework for major projects and meet the requirements of the Office of Local Government Capital Expenditure Guidelines and other relevant regulations under the Local Government Act and related to the Integrated Reporting and Planning framework. Additionally, the Project Governance will meet requirements related to the NSW Government’s funding contribution, namely the Restart Program, and associated business case standards, gateway approvals, project oversight and quality assurance. Under the principles of Council’s P3M framework, the project client initiating the project is City Services (Social and Community Services Unit), who will receive the asset back to operate, and the Property Development and Significant Assets will deliver the project. Project Sponsor: Sue Coleman, Director City Services Business Owner: Gary Moore, Manager Social and Community Services Project Director: Mark Stapleton, Director Property Development and Significant Assets

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1.3 Project Team The Lead Project Team will be led by an appointed Senior Project Manager with a combination of internal stakeholders and key consultants and resources. Trish Tweedie, City Engagement will be drafted to join the Lead Project Team. A wider group of external consultants and internal subject specialists will be enlisted to assist on parts of the project based on issues and/or needs.

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The Project Team will call upon subject specialists from the City Engagement and City Identity and Marketing teams to assist in the preparation, review and evaluation of all work associated with this Plan in addition to assisting with the procurement and management of any external resources engaged to assist with communications and engagement for this project. Project Working Group or Lead Project Team: Project Manager: Dearbhla Keane Business Owner: Gary Moore Strategic Project Leader: Brett Pettersen City Engagement Lead: Trish Tweedie Urban Design/City Architect: Guy Pinkerton Aquatics Expert: Warren Green (Consultant) Lead Architect: Sisson Architects Extended Project Team: Heritage Consultant Executive Planner (consultant) Geotechnical Engineer Consultant Surveyor (consultant) Quantity Surveyor (consultant) Utilities Planner (consultant) Additional Project Manager resources Assets Strategy and Property Management (ASPM) representative – future Asset Owner Finance and Business Coordinator City Significant Development Procurement Services Legal Services Communications and Engagement Specialists: City Engagement Anthea Hall /Trish Tweedie Research & Consultation Natasha Caldwell Media Officer Brad Schmitt Publications Coordinator Lisa Cedres Website Coordinator Natasha Potzsch City Identity and Marketing Laila Hage-Ali

2 Stakeholder analysis

Identified Stakeholders Details

Stakeholder Impact/Risk Level

Approach Responsibility

Council has a resident population of 230,500 Note the diversity of population and need to provide translated information. 44.5% of residents are born overseas, 39% from a non-English speaking background e.g. China 8.1%, India 7.8% South Korea 3.4%.

Local Residents • In close proximity to the development

High Inform Gary Moore Brett Pettersen

Engaged Residents and Stakeholders

• Participants in workshop • Participants in on-line

survey High Inform Gary Moore

Brett Pettersen

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• Those requesting pool updates

Local Residents

The community includes: • General community • Residents and ratepayers

around construction area • Residents and ratepayers

surrounding pool area • Residents and ratepayers

who are not around the construction area but have been vocal about the stadium and North Parramatta development

• Residents from Culturally and Linguistically Diverse backgrounds

Medium-High Inform, Consult

Anthea Hall, Trish Tweedie WeNi Wong Jasmina Dugalic

Key Stakeholders

• Parramatta Park Trust • State Member for

Parramatta, Geoff Lee • Federal Member for

Parramatta, Julie Owens • State Member for

Granville, Julia Finn • State Member for Seven

Hills, Mark Taylor

High Inform, Consult

Sue Coleman Gary Moore Brett Pettersen Dearbhla Keane

City of Parramatta Council Lord Mayor and Councillors High Inform, Consult Sue Coleman

Gary Moore


Executive Property Development Group City Strategy City Outcomes City Development

Medium Inform Dearbhla Keane Gary Moore Brett Pettersen

Council Advisory Groups

Aboriginal and Torres Strait Islander Advisory Committee. Access Advisory Committee, Heritage Advisory Committee, Our City Your Say Panel, Citizens’ Jury, Darug Reference Panel, Paint Your Parra Youth Forum

Medium-High Inform, Consult Sue Coleman Gary Moore Brett Pettersen

Highly impacted user groups

Parramatta Memorial Swim Club, Parramatta Water Polo Club, schools using the pool for curriculum activities/carnivals, current customers and members

High Inform, Consult Gary Moore Brett Pettersen

Other stakeholders Sporting, community groups who hire pool and facilities Medium-High Inform, Consult Gary Moore

Brett Pettersen

Interest Groups

Save Parramatta Pool/North Parramatta Residents Action Group Sydney Business Chamber - Parramatta Western Sydney University University of New England PCYC Parramatta RSL YMCA

Low-High Inform, Consult Sue Coleman Gary Moore Brett Pettersen

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Parramatta Chamber of Commerce NSW Department Education Catholic Education – Parramatta Diocese NSW Heath WSLAHD

Government Ministers

• NSW Minister for Environment and Heritage

• NSW Minister for Transport and Infrastructure

• NSW Minister for Sport

High Inform, Consult Sue Coleman Gary Moore

Other government departments

NSW Planning, NSW Treasury, Infrastructure NSW, Venues NSW, Greater Sydney Commission, NSW Heritage Office

Medium Inform, Consult Dearbhla Keane

State Sporting Agencies

Swimming NSW, Water Polo NSW, NSW Institute of Sport (NSWIS), Diving NSW, Basketball NSW, Football NSW

Medium –High Inform, Consult Gary Moore Brett Pettersen

Neighbouring Councils Cumberland Council Medium Inform Sue Coleman

Gary Moore

Aquatic Centre staff Current employees Low Inform Gary Moore Brett Pettersen

3 Opportunities and issues

3.1 Opportunities • Develop a contemporary offering which will service the community for the next 30 years • Develop a sustainable operation which delivers a diverse range of services in demand and aligned to

community needs • Council can demonstrate best practice engagement by involving stakeholders and community

Issues Mitigations

Closure of Parramatta War Memorial Swimming Centre Stadium development taken over – not for everyone

There are alternative and nearby services, including swimming pools, learn to swim centres, water playgrounds and other options for swimming and cooling off

Time and inconvenience without a new facility

There are alternative and nearby services, including swimming pools, learn to swim centres, water playgrounds and other options for swimming and cooling off

War memorial connection and history related to the former PWMSC

Council will listen and incorporate the views of the community into the construction and operation of the new centre

Loss of open space impacts on neighbouring residents

Council has undertaken extensive consultation with the community to provide input into the Feasibility Study, identifying facility and service priorities and preferences for the new centre

Old Government House and World Heritage listing The NSW Government, Parramatta Park Trust and the City of Parramatta identified the Mays Hill Precinct as the best possible location

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Impacts on neighbouring residents

Council has undertaken extensive consultation with the community to provide input into the Feasibility Study, identifying facility and service priorities and preferences for the new centre

Potential heritage and archaeology within the precinct

The NSW Government, Parramatta Park Trust and the City of Parramatta identified the Mays Hill Precinct as the best possible location. Heritage consultant Cultural Resources Management has been engaged to work on the project and there is mandatory consultation activities with heritage and Darug stakeholders.

Cumberland Council plans for pools, particularly Merrylands concept

The Projected growth in residents, workers and students will create an unprecedented demand for the provision of recreational spaces and activities that require both a planning and behavioural change in the way space is used.

Related to North Parramatta and stadium development

The closure of the Parramatta War Memorial Swimming Pool presents an opportunity to redefine the City’s aquatic and leisure offering and plan for the next 30 to 50 plus years

4 Key messages

• Council is delivering a new aquatic leisure centre for the City that meets community needs now and into the future

• The projected growth in residents, workers and students will create an unprecedented demand for the provision of recreational spaces and activities that require both a planning and behavioural change in the way space is used.

• The community has told us that while a range of recreational facilities are desirable, Council’s priority should be providing a modern, flexible aquatic facility that is both affordable and accessible so that it can be enjoyed by our diverse communities

• Council will acknowledge and incorporate the views of the community and stakeholders, where possible, into the design, construction and operation of the new centre.

• Council is currently working towards opening in 2020

5 STRATEGIES

Objective To capture local stakeholder and community preferences, needs and expectations for the new aquatic leisure centre. Strategy

• Produce collateral for stakeholders and the local community at regular intervals that provides information

about the project’s progress, the timelines and feedback opportunities • Inform and update community and encourage feedback via council’s key communication platforms

including web updates, media announcements, social and digital media, e-newsletters, Council’s quarterly Local Government Area wide newsletter, mayoral column, brochures and leaflets

• Inform and update key stakeholders with briefings, presentations and reports • Keep staff informed and encourage feedback with regular updates via internal channels The Scoop,

intranet and CEO Forums • Engage with business, sporting and education bodies through briefings, forums, Chamber of Commerce

meetings • Encourage community to sign up for Our City Your Say online panel and email updates via @poolupdate

email address to keep up to date about upcoming engagement opportunities

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• Provide information at Council’s network of libraries

Objective To consult with a diverse range of stakeholders representative of Parramatta’s diverse community. Strategy • Provide translated information and updates in key languages and make available on Council’s website • Translate online surveys and make available via Council’s Our City Your Say online engagement tool. • Keep City of Parramatta pool staff updated on the project via Council’s internal communication channels

including the intranet, the internal e-newsletter, staff quarterly forums and internal briefings and meetings.

Objective To mitigate inconvenience for customers/users whilst the new centre is planned and delivered.

Strategy

• Provide information regarding alterative and nearby services, including swimming pools, learn to swim centres, water playgrounds and other options for swimming and cooling off

• Update the community and customers of progress in delivering interim options such as opening of Macarthur Girls HS, improvements to Lake Parramatta and a new water playground for the Parramatta CBD

• Inform via digital platforms, collateral, and material in key languages

• Provide updates to registered interested community members through @poolupdate email address

6 KEY MILESTONES

Phase 2 Key Communication and Engagement Actions

Key Messages and Questions for testing

The key focus for messaging and engagement in Phase 2 is to check back in with the community and key stakeholders about what we have heard so far and to communicate how this has been translated into design for the new Aquatic Leisure Centre moving forward.

Messages and questions will include:

• These are the things that you told us, is this right?

• Based on what you told us, this is what we are proposing

• Here are a number of elements for consideration, how would you prioritise this list? What would you add and what would you consider to be a lower priority if cost became an issue?

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October – December 2017

Date Communication Action Responsibility Stakeholder Group Status 30 Oct website updated

FAQs updated

- Brett Pettersen - Trish Tweedie

All stakeholders Completed – BP 30/10

8 Nov 9 Nov 8 Nov 10-11 Nov 9 Nov 9 Nov 8 Nov 8 Nov 8 Nov

-Media release post Nov 6 Councillor workshop inviting community to have their say on what’s being proposed -Mayors Column mention -Flyer outlining what’s being proposed -Flyer translated into key languages -E-newsletter update published first week month -Website updated post Nov 6 workshop -FAQs updated post Nov 6 workshop -Social media updates on Council’s key channels -Update on Our City Your Say Facebook page - Internal newsletter the Scoop

- Jasmina Dugalic

- Jasmina Dugalic - Trish Tweedie - Trish Tweedie - Jasmina Dugalic - Jasmina Dugalic, Brett

Pettersen - Jasmina Dugalic, Brett

Pettersen - Jasmina Dugalic

- Jasmina Dugalic

- Jasmina Dugalic

- Jasmina Dugalic, Alan Williamson

All stakeholders Completed – BP 8/11 Completed – BP 8/11 Completed – BP 9/11 Completed – BP 10/11 Completed – BP 6/11 Completed – BP 7/11 Completed – BP 8/11 Completed – BP 9/11 Completed – BP 10/11

8-22 Nov Targeted email update - Jasmina Dugalic, Brett Pettersen

Engaged Residents and Key Stakeholders • Participants in workshop • Participants in on-line survey • Those requesting pool updates

Completed – BP 8/11

Post Dec 18 Council Meeting 19 Dec 20 Dec

Provide update on Council meeting to all key stakeholders and Engagement participants via: - Media release outlining Council report recommendations -Mayors Column mention

- Jasmina Dugalic

- Jasmina Dugalic

All Stakeholders

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19 Nov 19Nov 19 Dec 19 Dec

-E-newsletter update published first week of the month -Quarterly LGA wide print newsletter update -Website update -FAQ update -Social media updates on Council’s key channels -Update on Our City Your Say Facebook page - Create and distribute an infographic to use on social media and website that provides community with an easy to understand update on consultation results

- Jasmina Dugalic - Jasmina Dugalic - Jasmina Dugalic - Jasmina Dugalic, Brett

Pettersen - Jasmina Dugalic Brett

Pettersen

- Jasmina Dugalic

- Trish Tweedie, Chloe McIntosh, Jasmina Dugalic

Post Dec 18 Council Meeting

Targeted email updates - Jasmina Dugalic, Brett Pettersen

Engaged Residents, interest groups highly impacted groups and user groups and: • Participants in workshop • Participants in on-line survey • Those requesting pool updates

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Phase 3 Engagement Actions

October – December 2017

Date Engagement Action Responsibility Stakeholder Group Comments

6 Nov Councillor Workshop Briefing Note Report

Sue Coleman, Craig Becroft, Gary Moore, Brett Pettersen

City of Parramatta Council • Lord Mayor • Councillors


8-22 Nov ET Briefing Sue Coleman, Mark Stapleton, Dearbhla Keane (through Executive Steering Group and ET Meetings)

City of Parramatta • Executive

TBC (Dearbhla)

Dec Project Progress Briefing – and set up of internal resources to be part of or contribute to Lead Team and issue based teams

Dearbhla Keane, Brett Pettersen • Property Development Group • City Strategy • City Outcomes • City Development

TBC (Dearbhla)

8-22 Nov Briefings and Meetings Gary Moore, Brett Pettersen Council Advisory Groups • Access Advisory Committee

Completed – BP 20/11 Committees not in operation, phone calls to former chairs and offer to email former members for comment

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8-22 Nov Briefings and Meetings • Aboriginal and Torres Strait Islander Advisory Committee.

• Heritage Advisory Committee, •

8 Nov Online Survey with supporting background material on options

WenNi Wong, Jasmina Dugalic, Brett Pettersen

All stakeholders Completed – BP Survey closed on 22 Nov Draft results 29/11 Full report by 6/12

8 Nov Online Survey made available in hard copy and provided to all Council Libraries

WenNi Wong, Jasmina Dugalic Local residents and all stakeholders Completed – BP 9/11

8-22 Nov Briefings and email updates

Sue Coleman, Gary Moore, Brett Pettersen Key Stakeholders: Parramatta Park Trust Local state and federal members

Letters issued – BP 17/11 Meetings with PPT ongoing (2 held between 17-27 Nov) SC meeting with Geoff Lee on xxx (BP to confirm date)

8-22 Nov One-on-one sessions to update and inform of feasibility options and next steps

Sue Coleman, Gary Moore, Brett Pettersen Highly impacted user groups • Parramatta Memorial Swim Club • Parramatta Water Polo Club

Completed – BP PMSC on 22/11 PWPC on 27/11

8-22 Nov Letter via email Sue Coleman, Gary Moore, Brett Pettersen • Schools – Primary and High Schools – refer attachment 1 for full list

Letters issued/completed – BP 17/11

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8-22 Nov Letters to update and inform of feasibility options and Next steps. Meeting offered to SPP and PCYC

Brett Pettersen Special Interest Groups • Save Parramatta Pool/North

Parramatta Residents Action Group

• Parramatta Business Chamber • Western Sydney University • PCYC • Parramatta RSL

Completed – BP 17/11 Met with SPP on 28/11

8-22 Nov Emails/Letters to update and inform

Gary Moore, Brett Pettersen Other stakeholders Sporting Community groups who hire pool and facilities


8-22 Nov Email/letter update and Phone Call follow up

Brett Pettersen State Sporting Agencies: Swimming NSW, Water Polo NSW, NSW Institute of Sport (NSWIS), Diving NSW, Basketball NSW, Football NSW


8-22 Nov Letter Brett Pettersen Cumberland Council Completed – BP 17/11

8-22 Nov Internal newsletter and meetings

Brett Pettersen, Allan Williamson Aquatic Centre staff Completed – BP 17/11


Meeting and Briefing Sue Coleman and Dearbhla Keane Parramatta Park Trust


Email community stakeholders on results of most recent consultation and outcomes of Council Meeting plus next steps

Brett Pettersen, Jasmina Dugalic Chloe McIntosh, WenNi Wong

Those who participated in the engagement activities Key Stakeholders, Highly Impacted User groups, special interest groups

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Evaluation Measures

The success of the communication and engagement activities will be measured using the following metrics:

1. Awareness and Reach:

o The number of stakeholders and people reached through emails, meetings, correspondence and presentations

o Social media engagement, website traffic to dedicated pool information and e-newsletter opening rates and click throughs

o Media coverage and reporting of key messages

2. Engagement

o Number of survey participants

o Participation rates and feedback from stakeholders

o Indirect feedback on engagement activities received through social media and print media (and online versions)

o Positive support for the project expressed by community and stakeholders in their feedback and comments

The number of responses and issues raised will be provided in an engagement report at the end of each consultation phase.

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Appendix C: Option 1a Area schedule and design concepts Figure 4-5: Aquatic centre area schedule – Option 1A (Reduced scope with at grade parking)

Components of the facility and broader project site Area (m²)

(Lower Ground) 4115

Gym 1315

Multi-purpose room 1 200



Open floor 360

Amenities 150

Pool balance tanks 300

Plant 1390

Concourse (Upper Ground) 9095

Entry ramp / lift 320

Indoor pool hall 4400

25m indoor lap pool 625

Indoor leisure pool 625

Sauna 70

Spa 20

Plant (indoor) 205

Change rooms 555

Admin / office / entry 250

Café 150

Life guard's office 120

Swim club 120

50m outdoor lap pool 1320

Group change (50m pool) 180

Change rooms (50m pool) / spectator wc 350

Terraced seating 100

Plant (outdoor) 480

Store 240

Grassed bank 2310

BBQ area 300

Roof 3720

Car park 9450

Total cars 212

Total lease area 20855

Source: Sisson Architect

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Figure 4-6: Isometric view – Option 1A (Reduced scope with at grade parking)

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Figure 4-7: Upper Ground Floor Plan – Option 1A (Reduced scope with at grade parking)

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Figure 4-8: Lower Ground Floor Plan – Option 1A (Reduced scope with at grade parking)

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Figure 4-9: Car Park Plan– Option 1A (Reduced scope with at grade parking)

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Figure 4-10: Roof Plan– Option 1A (Reduced scope with at grade parking)

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Figure 4-11: Cross Sections – Option 1A (Reduced scope with at grade parking)

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Appendix D: Option 1b Area schedule and design concepts Table 4-4: Aquatic centre area schedule – Option 1B (Reduced scope with underground parking)


(Lower Ground) 4115

Gym 1315




Open floor 360

Amenities 150


Plant 1390






Sauna 70

Spa 20

Plant (indoor) 205

Change rooms 555


Café 150


Swim club 120





Plant (outdoor) 480

Store 240

Grassed bank 2310

BBQ area 300

Roof 3720

Car park 8280

Total cars 217



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Figure 4-12: Isometric view – Option 1B (Reduced scope and underground car parking)

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Figure 4-13: Upper Ground Floor Plan – Option 1B (Reduced scope and underground car parking)

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Figure 4-14: Lower Ground Floor Plan – Option 1B (Reduced scope and underground car parking)

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Figure 4-15: Car Park Plan– Option 1B (Reduced scope and underground car parking)

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Figure 4-16: Roof Plan– Option 1B (Reduced scope and underground car parking)

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Figure 4-17: Cross Sections – Option 1B (Reduced scope and underground car parking)

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Appendix E: Option 1c Area schedule and design concepts Table 4-5: Aquatic centre area schedule – Option 1C (Reduced scope, at grade parking, timber roof)


(Lower Ground) 4115

Gym 1315




Open floor 360

Amenities 150


Plant 1390






Sauna 70

Spa 20

Plant (indoor) 205

Change rooms 555


Café 150


Swim club 120





Plant (outdoor) 480

Store 240

Grassed bank 2310

BBQ area 300

Roof 3720

Car park 9450

Total cars 212



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Figure 4-18: Isometric view – Option 1C (Reduced scope, at grade car parking, timber roof)

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Figure 4-19: Upper Ground Floor Plan – Option 1A (Reduced scope, at grade car parking, timber roof)

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Figure 4-20: Lower Ground Floor Plan – Option 1C (Reduced scope, at grade car parking, timber roof)

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Figure 4-21: Car Park Plan– Option 1C (Reduced scope, at grade car parking, timber roof)

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Figure 4-22: Roof Plan – Option 1C (Reduced scope, at grade car parking, timber roof)

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Figure 4-23: Cross Sections – Option 1C (Reduced scope, at grade car parking, timber roof)

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Appendix F: Option 1d Area schedule and design concepts Table 4-6: Aquatic centre area schedule – Option 1d (Reduced scope, underground parking, timber roof)


(Lower Ground) 4115

Gym 1315




Open floor 360

Amenities 150


Plant 1390






Sauna 70

Spa 20

Plant (indoor) 205

Change rooms 555


Café 150


Swim club 120





Plant (outdoor) 480

Store 240

Grassed bank 2310

BBQ area 300

Roof 3720

Car park 8280

Total cars 217



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Figure 4-24: Isometric view – Option 1D (Reduced scope, underground car parking, timber roof)

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Figure 4-25: Upper Ground Floor Plan – Option 1D (Reduced scope, underground car parking, timber roof)

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Figure 4-26: Lower Ground Floor Plan – Option 1D (Reduced scope, underground car parking, timber roof)

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Figure 4-27: Car Park Plan– Option 1D (Reduced scope, underground car parking, timber roof)

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Figure 4-28: Roof Plan – Option 1D (Reduced scope, underground car parking, timber roof)

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Figure 4-29: Cross Sections – Option 1D (Reduced scope, underground car parking, timber roof)

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Appendix G: Option 2a Area schedule and design concepts Table 4-7: Aquatic centre area schedule – Option 2A (Full scope with at grade parking)


(Lower Ground) 5130

Gym 1880




Open floor 710

Amenities 150


Plant 1390






Sauna 70

Spa 20

Plant (indoor) 205

Change rooms 555


Café 120

Function / meeting rooms 120

Outdoor leisure pool 440



Swim club 150




Plant (outdoor) 480

Store 240

Grassed bank 2590

BBQ area 300

Roof 3720

Car park 9450

Total cars 212


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Figure 4-30 Isometric view – Option 2A (Full scope and at grade car parking)

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Figure 4-31: Upper Ground Floor Plan – Option 2A (Full scope and at grade car parking)

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Figure 4-32: Lower Ground Floor Plan – Option 2A (Full scope and at grade car parking)

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Figure 4-33 Car Park Plan– Option 2A (Full scope and at grade car parking)

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Figure 4-341: Roof Plan– Option 2A (Full scope and at grade car parking)

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Figure 4-352: Cross Sections – Option 2A (Full scope and at grade car parking)

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Appendix H: Option 2b Area schedule and design concepts Figure 4-36: Aquatic centre area schedule – Option 2B (Full scope with underground parking)


(Lower Ground) 5130

Gym 1880




Open floor 710

Amenities 150


Plant 1390






Sauna 70

Spa 20

Plant (indoor) 205

Change rooms 555


Café 120

Function / meeting rooms 120

Outdoor leisure pool 440



Swim club 150




Plant (outdoor) 480

Store 240

Grassed bank 2590

BBQ area 300

Roof 3720

Car park 8280

Total cars 212

Page 234

Figure 4-37: Isometric view – Option 2B (Full scope and underground car parking)

Page 235

Figure 4-38: Upper Ground Floor Plan – Option 2B (Full scope and underground car parking)

Page 236

Figure 4-39: Lower Ground Floor Plan – Option 2B (Full scope and underground car parking)

Page 237

Figure 4-40: Car Park Plan– Option 2B (Full scope and underground car parking)

Page 238

Figure 4-41: Roof Plan– Option 2B (Full scope and underground car parking)

Page 239

Figure 4-42: Cross Sections – Option 2B (Full scope and underground car parking)

Appendix I: Capital costs Table 4-8: Option 1a – capital costs

Project: Parramatta Aquatic Centre Details: Workbook - R3 - OPTION

1A Building: Parramatta Aquatic Centre

Code Description Quantity Unit Rate Total

A

PARRAMATTA AQUATIC CENTRE

11,925

66.45

792,400

PRELIMINARY COST PLAN

13 November 2017

OPTION 1A

Areas

B Substructure

C Columns 55.19 658,100

D Upper Floors 238.88 2,848,625

E Staircases 26.83 320,000

F Roof 390.09 4,651,790

G External Walls / Doors 264.76 3,157,287

H Internal Walls / Doors 108.47 1,293,557

I Wall Finishes 34.59 412,540

J Floor Finishes 121.84 1,452,950

K Ceiling Finishes 122.92 1,465,800

L Fitments 144.84 1,727,275

M Hydraulics 129.72 1,546,900

N Fire 35.18 419,550

O Mechanical 249.41 2,974,200

P Electrical / Comms / Security / AV 266.57 3,178,800

Q Lift and Shaft 20.96 250,000

R Preliminaries & margin 16% 364.27 4,343,964

S ESD 3% 79.23 944,812

Building Subtotal 2, 720. 21 32,438,551

T Site Preparation / Earthworks 146.57 1,747,850

U Site Works 159.50 1,902,000

V Landscaping 89.73 1,070,000

W Stormwater 155.97 1,860,000

X Preliminaries & margin 16% 88.28 1,052,776

Site Works Subtotal 640 .05 7 , 632,626

Y Pools 716.98 8,550,000

Z BWIC incl excavation and piling for pools 50.31 600,000

AA Preliminaries & margin 16% 122.77 1,464,000

Aquatic Subtotal 890 .06 10,614,000

Construction Subtotal

4, 250. 33

50,685,177

AB Design Contingency 5% 2,534,259

AC Construction Contingency 5% 2,534,259

Subtotal 55,753,694

AD Professional Fees 10% 5,575,369

AE Authority Fees & Charges Allow 253,426

AF Contribution to new substation 2 No 300,000

AG Office equipment / FF&E Allow 836,305

AH AV, telephone and ICT equipment Allow 300,000

AI Legal, marketing and other costs Allow 836,305

Project: Parramatta Aquatic Centre Details: Workbook - R3 - OPTION

1A Building: Parramatta Aquatic Centre


A

B

TOTAL

based on 3% pa

63,855,100

Escalation to tender (May 2018)

TOTAL

EXCLUSIONS

1,117,464

64,972,565

Table 4-9: Option 1b – capital costs

Project: Parramatta Aquatic Centre Details: Workbook - R3 - OPTION 1B Building: Parramatta Aquatic Centre


A


11,925

66.45

792,400

PRELIMINARY COST PLAN 13 November 2017 OPTION 1B Areas

B Substructure C Columns 55.19 658,100 D Upper Floors 238.88 2,848,625 E Staircases 26.83 320,000 F Roof 390.09 4,651,790 G External Walls / Doors 264.76 3,157,287 H Internal Walls / Doors 108.47 1,293,557 I Wall Finishes 34.59 412,540 J Floor Finishes 121.84 1,452,950 K Ceiling Finishes 122.92 1,465,800 L Fitments 144.84 1,727,275 M Hydraulics 129.72 1,546,900 N Fire 35.18 419,550 O Mechanical 249.41 2,974,200 P Electrical / Comms / Security / AV 266.57 3,178,800 Q Lift and Shaft 20.96 250,000 R Preliminaries & margin 16% 364.27 4,343,964 S ESD 3% 79.23 944,812

Building Subtotal 2, 720. 21 32,438,551 T Site Preparation / Earthworks 108.08 1,288,850 U Site Works 159.50 1,902,000 V Landscaping 85.12 1,015,000 W Stormwater 155.97 1,860,000 X Preliminaries & margin 16% 81.39 970,536

Site Works Subtotal 590 .05 7 , 036,386 Y Pools 716.98 8,550,000 Z BWIC incl excavation and piling for pools 50.31 600,000 AA Preliminaries & margin 16% 122.77 1,464,000



4, 200. 33

50,088,937 AB Design Contingency 5% 2,504,447 AC Construction Contingency 5% 2,504,447

Subtotal 55,097,830 AD Professional Fees 10% 5,509,783 AE Authority Fees & Charges Allow 250,445 AF Contribution to new substation 2 No 300,000 AG Office equipment / FF&E Allow 826,467 AH AV, telephone and ICT equipment Allow 300,000 AI Legal, marketing and other costs Allow 826,467



A

B

C

Subtotal

based on 3% pa

63,110,993


Subtotal

Underground Carpark

TOTAL EXCLUSIONS

1,104,442

64,215,435

8,224,360

72,439,795

Table 4-7: Option 1c – capital costs


A


11,925

66.45

792,400


29 November 2017

OPTION 1C

Areas

B Substructure C Columns 55.19 658,100

D Upper Floors 238.88 2,848,625


F Roof 641.56 7,650,565






L Fitments 144.84 1,727,275

M Hydraulics 129.72 1,546,900

N Fire 35.18 419,550

O Mechanical 249.41 2,974,200




S ESD 3% 87.98 1,049,170

Building Subtotal 3,020.67 36,021,487


U Site Works 159.50 1,902,000


W Stormwater 155.97 1,860,000

X Preliminaries & margin 16% 88.28 1,052,776

Site Works Subtotal 640.05 7,632,626

Y Pools 716.98 8,550,000



Aquatic Subtotal 890.06 10,614,000


4,550.79

54,268,113



Subtotal 59,694,924

Table 4-8: Option 1d – capital costs


A


11,925

66.45

792,400


29 November 2017

OPTION 1D

Areas

B Substructure C Columns 55.19 658,100

D Upper Floors 238.88 2,848,625


F Roof 641.56 7,650,565






L Fitments 144.84 1,727,275

M Hydraulics 129.72 1,546,900

N Fire 35.18 419,550

O Mechanical 249.41 2,974,200




S ESD 3% 87.98 1,049,170

Building Subtotal 3,020.67 36,021,487


U Site Works 159.50 1,902,000


W Stormwater 155.97 1,860,000

X Preliminaries & margin 16% 81.39 970,536

Site Works Subtotal 590.05 7,036,386

Y Pools 716.98 8,550,000



Aquatic Subtotal 890.06 10,614,000


4,500.79

53,671,873



Subtotal 59,039,060

Table 4-9: Option 2a – capital costs

Project: Parramatta Aquatic Centre Details: Workbook - R3 - OPTION 2A Building: Parramatta Aquatic Centre


A


14,365

66.31

952,560

PRELIMINARY COST PLAN 13 November 2017 OPTION 2A Areas

B Substructure C Columns 77.63 1,115,100 D Upper Floors 275.70 3,960,450 E Staircases 22.28 320,000 F Roof 326.71 4,693,210 G External Walls / Doors 246.44 3,540,050 H Internal Walls / Doors 90.93 1,306,152 I Wall Finishes 34.90 501,300 J Floor Finishes 105.38 1,513,822 K Ceiling Finishes 112.28 1,612,832 L Fitments 132.55 1,904,150 M Hydraulics 127.89 1,837,140 N Fire 33.03 474,460 O Mechanical 223.89 3,216,200 P Electrical / Comms / Security / AV 257.37 3,697,140 Q Lift and Shaft 17.40 250,000 R Preliminaries & margin 16% 344.11 4,943,131 S ESD 3% 74.84 1,075,131

Building Subtotal 2, 569. 64 36,912,827 T Site Preparation / Earthworks 125.15 1,797,850 U Site Works 118.06 1,696,000 V Landscaping 74.63 1,072,000 W Stormwater 153.29 2,202,000 X Preliminaries & margin 16% 75.38 1,082,856

Site Works Subtotal 546 .52 7 , 850,706 Y Pools 756.70 10,870,000 Z BWIC incl excavation and piling for pools 52.21 750,000 AA Preliminaries & margin 16% 129.43 1,859,200



4, 054. 49

58,242,733 AB Design Contingency 5% 2,912,137 AC Construction Contingency 5% 2,912,137

Subtotal 64,067,007 AD Professional Fees 10% 6,406,701 AE Authority Fees & Charges Allow 291,214 AF Contribution to new substation 2 No 300,000 AG Office equipment / FF&E Allow 1,281,340 AH AV, telephone and ICT equipment Allow 300,000 AI Legal, marketing and other costs Allow 1,281,340

Project: Parramatta Aquatic Centre Details: Workbook - R3 - OPTION 2A Building: Parramatta Aquatic Centre


A

B

TOTAL

based on 3% pa

73,927,601


TOTAL

EXCLUSIONS

1,293,733

75,221,334

Table 4-10: Option 2b – capital costs



A


14,365

66.3

952,560

PRELIMINARY COST PLAN 13 November 2017 OPTION 2B Areas

B Substructure C Columns 77.6

3 1,115,100

D Upper Floors 275.70

3,960,450 E Staircases 22.2

8 320,000

F Roof 326.71

4,693,210 G External Walls / Doors 246.4

4 3,540,050

H Internal Walls / Doors 90.93

1,306,152 I Wall Finishes 34.9

0 501,300

J Floor Finishes 105.38

1,513,822 K Ceiling Finishes 112.2

8 1,612,832

L Fitments 132.55

1,904,150 M Hydraulics 127.8

9 1,837,140

N Fire 33.03

474,460 O Mechanical 223.8

9 3,216,200

P Electrical / Comms / Security / AV 257.37

3,697,140 Q Lift and Shaft 17.4

0 250,000

R Preliminaries & margin 16% 344.11

4,943,131 S ESD 3% 74.8

4 1,075,131

Building Subtotal 2, 569. 64

36,912,827 T Site Preparation / Earthworks 87.5

6 1,257,850

U Site Works 132.41

1,902,000 V Landscaping 68.6

4 986,000

W Stormwater 153.29

2,202,000 X Preliminaries & margin 16% 70.7

0 1,015,656

Site Works Subtotal 512 60

7 , 363,506 Y Pools 756.7

0 10,870,000

Z BWIC incl excavation and piling for pools 52.21

750,000 AA Preliminaries & margin 16% 129.4

3 1,859,200

Aquatic Subtotal 938 .34

13,479,200


4, 020. 57

57,755,533

AB Design Contingency 5% 2,887,777 AC Construction Contingency 5% 2,887,777

Subtotal 63,531,087 AD Professional Fees 10% 6,353,109 AE Authority Fees & Charges Allow 288,778 AF Contribution to new substation 2 No 300,000 AG Office equipment / FF&E Allow 1,270,622 AH AV, telephone and ICT equipment Allow 300,000 AI Legal, marketing and other costs Allow 1,270,622



A

B

C

Subtotal

based on 3% pa

73,314,216


Subtotal

Underground Carpark

TOTAL EXCLUSIONS

1,282,999

74,597,215

8,224,360

82,821,575

Appendix J: Life cycle costs Figure 4-43: Option 1a – life cycle costs

Figure 4-44: Option 1b – life cycle costs

Figure 4-45: Option 1c – life cycle costs

Figure 4-46: Option 1d – life cycle costs

Figure 4-47: Option 2a – life cycle costs

Figure 4-48: Option 2b – life cycle costs

Appendix K: Agreement with Parramatta Park Trust

Memorandum of Understanding

Made between

Parramatta Park Trust (ABN: 90811557 152)

And

City of Parramatta Council (ABN: 49 907 174 773)

Mays Hill Precinct Master Plan

This MEMORANDUM OF UNDERSTANDING is made on 2016

Between:

Parramatta Park Trust {ABN: 90811 557 152) of 7/10 Valentine Ave Parramatta NSW 2150

{'PPT')

and

City of Parramatta Council {ABN: 49 907 174 773) of 126 Church Street, Parramatta NSW

2150 ('CoP')

1:, Purpose

There have been a range of proposals canvassed for the Mays Hill Precinct, including potential relocation of the Parramatta War Memorial Swimming Centre ('PWMSC') and other sports facilities, potential needs of the adjacent Parramatta High School and needs of the expanding Westmead Health Precinct.

The importance of a 20ha open space becoming available for new recreation uses in the context of the growth of residential and employment populations in Parramatta and in particular on a site that links Parramatta CBD and Westmead, requires a fully considered master plan including community and stakeholder consultation.

Given the timeframes for the closure of the current PWMSC located on O'Connell Street, and the time required to adequately plan and construct a new aquatics centre, it is important that a site suitability study determines early in the master plan process whether the Mays Hill Precinct is suitable for the aquatic centre relocation.

2. Background

Site Location

The Mays Hill Precinct is a 20ha site located between the Great Western Highway and Park Parade and adjacent residential areas along Good Street, Westmead. Prior to the construction of the Western Railway line and Park Parade this site was originally part of the core area of Parramatta Park. The Precinct contains Mays Hill Gatehouse (currently leased for office space), Domain Creek Gatehouse (currently tenanted for residential), Jubilee Ave and Amos Street minor car parks, a playing field used by the adjacent Parramatta High School and a now closed 9 hole golf course (the former Parramatta Golf Club).

Heritage Listing

The site is State Heritage listed and in addition to the Gatehouses, contains the original Governors Drive, and a sight line to the Governor Bathurst Observatory. There is no detailed information about Aboriginal archaeology or other European heritage items.

Project Working Group

A Project Working Group will be established between CoP (City of Parramatta) and PPT (Parramatta Park Trust) to oversee project delivery and stakeholder engagement. All resulting reports and data will be made available to the PWG to inform all the stages of the Master Plan.

The Project Working Group will coordinate all stages of the Mays Hill Precinct Master Plan to guide future facility development within the Mays Hill Precinct. The group will be chaired by PPT as land owner and terms of reference and media/communication protocols will be established for the PWG.

3. Methodology and Program

Stage 1 - Planning a New Aquatics Centre: Site Suitabilit y and Feasibility Report

Given the in-principle support of PPT and Minister for a site for a new aquatics facility within Mays Hill Precinct, CoP will undertake a Site Suitability and Feasibility Study to confirm a preferred site within the Precinct and provide a high level assessment of its physical capacity and potential constraints to accommodate a new aquatics facility in order to continue with other project planning including detailed design, business plan, and financial analysis.

As part of this work, CoP will deliver an initial high level analysis of key site considerations for the entire Mays Hill Precinct. The scope of site analysis will include:

• Services: Location condition and capacity - electricity, water, stormwater etc • Heritage: Aboriginal and European studies and protected views • Contamination: Desktop and preliminary gee-technical studies (if required) • Contours and Features Plan • Land Use Planning: Preliminary assessment of site suitability including traffic and environmental

considerations

Concurrently, CoP will undertake related tasks to inform potential project development. This will include analysis of recreational and aquatics needs, industry trends, and community consultation including functional elements and requirements to be planned within a new aquatics facility and locational preferences. Financial analysis will also be undertaken to assess capital and operational impacts of different options identified for facilities and operational models. CoP will fund and deliver these related studies. Investigation of interim options will also be undertaken. The desktop work completed in Stage 1 by CoP will inform both Council's further detail design and the master plan.

A preliminary understanding of land tenure arrangements will also be undertaken by PPT within this stage to inform CoP's financial analysis and development of a business plan.

Outcomes: A site assessment and feasibility report that either confirms or not the suitability of a location for the aquatic facility within the Mays Hill Precinct, and outlines draft site principles to guide future master plan stages, with a parallel process underway including investigation of interim options to replace existing aquatic services and provisions. CoP, PPT and the NSW Government will agree the key terms for land tenure related to a potential aquatic centre site, subject to project planning and approval processes and the outcome of further master plan stages.

Consultation: Heritage Office, selected stakeholders such as RMS and service providers. CoP will also undertake broad community consultation around aquatic and community recreation needs generally across the LGA, which will not be site specific to the Mays Hill Precinct.

Stage 2 - Land Use Concept Options

To be led by PPT to develop land use concept options for the full Mays Hill Precinct inclusive of the new aquatic facility, based on the outcomes of Stage 1 and include consideration of a wide range of potential land uses. The process will commence with a broad community consultation process and will include stakeholder consultation.

Outcomes: Land use options report including preliminary land tenure arrangements and draft design and planning guidelines for the entire Mays Hill Precinct.

Consultation: Stakeholders and full community consultation.

Stage 3 - Detailed Assessment of Options

To be led by PPT to assess the options on the basis of more detailed information including Aboriginal and European heritage, ecological and existing tree assessment, and traffic studies, and any detailed survey as required.

Inputs from CoP include confirmed aquatic facility requirements and finalisation of land tenure terms (as a result of CoP determining a final project option and in-principle investment decision).

Outcomes: Preliminary master plan report including land tenure arrangements and program to inform a future business case, if required.

Consultation: Relevant authorities.

Stage 4 Preferred Option(s) and Master Plan

To be led by PPT to identify a preferred master plan option for the ongoing development and management of Mays Hill Precinct inclusive of the aquatic facility, including final design and planning principles, access and egress, traffic and transport, operational measures, and long-term funding mechanisms.

Outcome: Preferred Option Master Plan complete to inform a future business case, if required.


Stage 5 Implementation

To be led by PPT to progress prioritized elements of the master plan of Mays Hill Precinct to achieve Government approvals, delivery and construction, while CoP progresses the approval, delivery and construction of an aquatic facility, as determined by the masterplan.

Outcome: Business case and development application for authority approval , as required.


Timeframe Targets

Stage 1 Site Suitability and Feasibility Report - October to December 2016 Stage 2 Land Use Concept Options - November 2016 to April 2017

Stage 3 Detailed Assessment of Options - April to Jun 2017 Stage 4 Preferred Option and Master Plan - July to Sept 2017 Stage 5 Implementation - Sept 2017 to Nov 2019

CoP will continue with its detailed planning for a new aquatics facility in parallel but not subject to the Master Plan stages. The timetable to deliver a new aquatics facility, assuming a suitable site is confirmed, will be subject to Council finalising an investment decision, confirmation of funding and appropriate development approvals, public input and construction requirements.

5. Costs

CoP will fund Stage 1. PPT will fund Stages 2 to 5 subject to securing NSW Government funding.

6. Non-binding MOU

The parties acknowledge that this document is intended to record the cooperative future plans between the parties. Nothing in the MOU is intended to create legal relations or constitute a legally binding contractual agreement between the parties, or to be the subject of any court, mediation, or arbitration proceedings.

Stage Outcome Costs

Stage 1 Site Suitability and Feasibility Report $50,000 Sub Total CoP costs $50,000

Stage 2 Concept Options Development $35,000 Stage 3 Detailed Assessment of Options $180,000

Stage 4 Preferred Option Master Plan $35,000 Community and Stakeholder Consultation (during various stages) $90,000

Stage 5

Implementation (includes business case and planning application only and excludes capital works fundina)

$60,000

Subtotal PPT Costs Total Cost Estimate

$400,000 $450,000

Appendix L: Project Plan

Final Business Case for a New Aquatic Leisure Centre...The purpose of this Final Business Case is to assist decision makers determine the best option for the development of a new aquatic

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