For discussion PWSC(96-97)40
on 10 July 1996

ITEM FOR PUBLIC WORKS SUBCOMMITTEE
OF FINANCE COMMITTEE

HEAD 703 - BUILDINGS
Law and Order - Correctional Services
40LC - 60 Correctional Services Department Quarters at Pik Uk

Members are invited to recommend to Finance Committee the upgrading of 40LC to Category A at an estimated cost of $59.8 million in money-of-the-day prices for the construction of 60 departmental quarters for the Correctional Services Department at Pik Uk.

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PROBLEM
PROPOSAL
PROJECT SCOPE AND NATURE
JUSTIFICATION
FINANCIAL IMPLICATIONS
PUBLIC CONSULTATION
ENVIRONMENTAL IMPLICATIONS
LAND ACQUISITION
BACKGROUND INFORMATION

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PROBLEM

The Commissioner of Correctional Services (C of CS) forecasts that there will be a shortfall of Grade “G” and Grade “H” married quarters for junior staff¹ of the Correctional Services Department by 1997.

PROPOSAL

2. The Director of Architectural Services, with the support of the Secretary for Security, proposes to upgrade 40LC to Category A at an estimated cost of $59.8 million in money-of-the-day (MOD) prices for the construction of 60 departmental quarters for the Correctional Services Department (CSD) at Pik Uk.

PROJECT SCOPE AND NATURE

3. The project comprises the construction of three five-storey residential blocks and the associated landscaping works² to provide a total of 60 married quarters with parking spaces. It will include 40 Grade “G” and 20 Grade “H” quarters for married junior personnel of CSD.

JUSTIFICATION

4. In July 1988, the Executive Council reaffirmed the existing policy to provide quarters for married junior disciplined services staff, subject to availability of resources, in order to sustain morale and facilitate the retention of staff. As most of the correctional services institutions are located in remote areas, we normally provide departmental quarters for CSD either within or near existing institutions to enable staff to respond to standby duties and to attend to emergency calls.

5. C of CS forecasts that there will be a shortfall of 214 Grade “G” and 439 Grade “H” quarters. This has already taken into account the number of CSD quarters we will provide through other items in the Public Works Programme³ and the creation and deletion of posts in the department. In order to reduce the shortfall, we propose to build 40 Grade “G” and 20 Grade “H” quarters at Pik Uk. We shall continue to review the shortfall position and plan for the provision of further quarters to meet the outstanding demand.

FINANCIAL IMPLICATIONS

6. We estimate the capital cost of the project to be $59.8 million in MOD prices (see paragraph 7 below), made up as follows -

7. Subject to approval, we will phase expenditure as follows -

8. We have derived the MOD estimates on the basis of the Government’s forecasts of trend labour and construction prices for the period between 1996 and 2000. We will tender the works as a fixed-price lump-sum contract because we can clearly define the scope of works in advance, leaving little room for uncertainty.

9. We estimate the additional annually recurrent expenditure of the project to be $0.58 million and the annual revenue from rental income to be $0.86 million.

PUBLIC CONSULTATION

10. C of CS and the District Officer (Sai Kung) have confirmed that there is no need to consult the District Board as the project is a continuation of phase I works under 54LC - 80 Correctional Services Department quarters at Pik Uk, which was previously agreed by the Sai Kung District Board.

ENVIRONMENTAL IMPLICATIONS

11. The Director of Environmental Protection completed an Environmental Review of the project in June 1995. The findings indicated that the project would have no long term environmental impact. No Environmental Impact Assessment is therefore necessary. We have provided an on-site sewage treatment plant (STP) for the development under 54LC - 80 Correctional Services Department quarters at Pik Uk with provision for future connection to a public sewer when it is available. For short term impact during construction, we will control noise, dust and site run-off nuisances through the implementation of mitigation measures in the contract.

LAND ACQUISITION

12. The project does not require land acquisition.

Background INFORMATION

13. In July 1992, Members agreed to upgrade part of 40LC “Additional departmental quarters in Kowloon and the New Territories, Phase II - Pik Uk” to Category A as 54LC “80 Correctional Services Department quarters at Pik Uk” at an estimated cost of $73.9 million for the provision of 80 departmental quarters for staff of the CSD at Pik Uk and to retain the remainder of 40LC in Category C, retitled “56 Correctional Services Department quarters at Pik Uk”. We expect to complete the works under 54LC in July 1996.

14. The scope of 40LC originally comprised the construction of 32 officers’ married quarters and 24 Grade ‘G’ junior staff married quarters. In view of the reduced demand for officers’ married quarters following the introduction of the Home Purchase Scheme and Home Financing Scheme, C of CS has decided to revise the scope of the remaining works to provide 60 quarters for junior married staff only.

15. The Director of Architectural Services has completed the working drawings and tender documents using in-house staff. We plan to start work in October 1996 for completion in March 1998.

1 -- Normally, we provide married officers in the rank of Assistant Officer I with Grade "G" quarters and those in the ranks of Assistant Officer II and Instructor with Grade "H" quarters.
2 -- We included site formation works for the residential blocks under 40LC in 54LC "80 Correctional Services Department quarters in Pik UK" when Members upgraded part of 40LC to Category A as 54LC in July 1992.
3 -- This figure does not take into account the changes to the provision of department quarters brought about by 61LC "Redevelopment of Stanley Prison area, phase II" which will be considered at the same PWSC meeting on 10 July 1996 via PWSC Paper (96/97)41.

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