0000For discussion PWSC(96-97)96
on 22 January 1997

ITEM FOR PUBLIC WORKS SUBCOMMITTEE
OF FINANCE COMMITTEE

HEAD 708 - CAPITAL SUBVENTIONS AND MAJOR SYSTEMS AND EQUIPMENT
Medical Subvention
8026MM - Redevelopment of Specialist Out-patient Department, Nursing School and Pupil Nurse Hostel in Our Lady of Maryknoll Hospital

Members are invited to recommend to Finance Committee the approval of a commitment of $82.9 million in money-of-the-day prices for redeveloping the Specialist Out-patient Department, Nursing School and Pupil Nurse Hostel in Our Lady of Maryknoll Hospital.

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PROBLEM
PROPOSAL
PROJECT SCOPE AND NATURE
JUSTIFICATION
FINANCIAL IMPLICATIONS
ENVIRONMENTAL IMPLICATIONS
PUBLIC CONSULTATION
LAND ACQUISITION
BACKGROUND INFORMATION
Details of Consultants’ Fees

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PROBLEM

The provision of space and facilities at the Specialist Out-patient Department (SOPD), Nursing School and Pupil Nurse Hostel in Our Lady of Maryknoll Hospital (OLMH) is inadequate to meet prevailing requirements.

PROPOSAL

2. The Hospital Authority (HA), with the support by the Secretary for Health and Welfare, proposes to create a commitment of $82.9 million in money-of-the-day (MOD) prices for redeveloping the SOPD, Nursing School and Pupil Nurse Hostel in OLMH.

PROJECT SCOPE AND NATURE

Encl.1

3. The project will involve the demolition of the existing two-storey building and construction of a new four-storey building with a total gross floor area of 4 200 square metres to reprovision the SOPD and Pupil Nurse Hostel. The Nursing School, which is currently located in a small covered area on the rooftop of the hospital’s East Wing, will also be relocated to the new building. A site plan is at Enclosure 1.

4. The new building will provide -

1. a SOPD with 25 consultation rooms and supporting facilities including a minor operating theatre, medical record storage area, a pharmacy and a clinical laboratory;
2. a Nursing School with two classrooms, two practical rooms, staff offices and ancillary facilities; and
3. a Pupil Nurse Hostel with accommodation for 72 pupil nurses and ancillary facilities.

JUSTIFICATION

5. The existing building which accommodates the SOPD and Pupil Nurse Hostel was built 35 years ago. With the passage of time, facilities in the building have become worn-out and are incurring high maintenance costs. Redevelopment is the most cost-effective way to provide facilities to meet prevailing standards.

6. Furthermore, both the space and design layout of the existing SOPD are inadequate to meet increasing demands. As a result, severe congestion is experienced in both the treatment rooms and the patient waiting area. In addition, certain diagnostic examinations such as ultrasound examinations and colposcopy service have to be conducted in the consultation rooms, thus depriving patients of comfort and privacy. Physical constraints also restrict the provision of certain types of treatment facilities, such as a minor operating theatre and a venue for patient education, which form an integral part of modern specialist out-patient services. The redevelopment project will relieve space congestion, increase the number of consultation rooms from 17 to 25 and provide additional space for diagnostic examinations. This will in turn reduce the waiting time for treatment and improve patient privacy and convenience.

7. The Nursing School in OLMH has only one classroom, one practical room and an office shared by five nurse tutors. It has a design capacity of 120 pupil nurses but is at present catering for 150 pupil nurses. The new premises with expanded facilities will help improve the learning environment of nursing trainees. We also propose to redevelop the existing Pupil Nurse Hostel which provides accommodation for 72 pupil nurses because its building conditions are sub-standard, its facilities are worn-out, and the space allocation is inadequate to meet the pupil nurses’ needs.

FINANCIAL IMPLICATIONS

8. The Director of Architectural Services (D Arch S) and HA estimate that the total project cost will be $87.9 million in MOD prices, made up as follows -

A breakdown of the cost estimate for consultants’ fees and related services is at Enclosure 2.

9. The OLMH Board has undertaken to contribute a minimum of $5 million over two years towards the redevelopment work. This is equal to 5.7% of the total project cost and is lower than the usual 20% contribution required of subvented organisations in similar projects. Given that the redevelopment will result in improvements to hospital services, we recommend that the 20% rule be waived in this particular case, subject to the hospital continuing to use its best endeavours to solicit donations above the pledged level during the course of the project. We thus propose a total commitment of $82.9 million calculated as follows -

10. Subject to Members’ approval, the estimated cashflow is as follows -

11. We have derived the MOD estimate based on Government's forecast of trend labour and construction prices for the period from 1997 to 2000. HA will tender under three separate fixed-price lump-sum contracts in respect of demolition, piling and superstructure respectively. Subject to Members' approval, HA will start the demolition works in March 1997, followed by piling works in May 1997 with a view to completing the construction works in January 1999.

12. HA estimates that the additional annually recurrent expenditure of the project will be $1,883,000 at 1996-97 price level, made up as follows -

ENVIRONMENTAL IMPLICATIONS

13. In July 1995, the Director of Environmental Protection (DEP) vetted a Preliminary Environmental Review (PER) completed by the HA consultants and concluded that there is no need for an Environmental Impact Assessment. HA will arrange for the management, storage, transport and disposal of liquid, chemical and clinical wastes as recommended in the PER. It will also control noise, dust and site run-off nuisances to within established standards and guidelines through implementation of appropriate mitigation measures in relevant contracts.

14. D Arch S conducted a survey in March 1996 and found no evidence of asbestos containing material in the Out-patient Clinic and Pupil Nurse Hostel.

PUBLIC CONSULTATION

15. We consulted the Wong Tai Sin District Board on 12 March 1996 and they supported the project.

LAND ACQUISITION

16. This project does not require land acquisition.

BACKGROUND INFORMATION

17. OLMH is an acute general hospital with a total of 252 beds serving the local community in Wong Tai Sin. It provides a wide range of clinical specialties including general medicine, general surgery, obstetrics, gynaecology, paediatrics and hospice care. The hospital also offers specialist out-patient consultation, day surgery, community nursing service and outreach medical services. A nursing school catering for 150 pupil nurses has been in operation since 1971.

(mp34-9\olmh)

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Details of Consultants’ Fees

Breakdown of estimates for consultants’ fees

Category of works/items		Estimated man months	Average MPS salary point	Multiplier factor	Estimated fees ($ million)
(I) Quantity Surveying
(a) Tender assessment	Professional Technical	0.1 0.2	40 16	3.0 3.0	0.02 0.01
(b) Contract administration	Professional Technical	1.2 3.3	40 16	3.0 3.0	0.19 0.17

Sub-total

0.39

(II) Architectural
(a) Tender assessment	Professional Technical	1.3 2.7	40 16	3.0 3.0	0.20 0.14
(b) Supervision	Professional Technical	3.9 7.2	40 16	2.1 2.1	0.42 0.26

Sub-total					1.02
(III) Structural Engineering
(a) Tender assessment	Professional Technical	0.3 0.6	40 16	3.0 3.0	0.05 0.03
(b) Supervision	Professional Technical	0.7 2.2	40 16	2.1 2.1	0.08 0.08

Sub-total					0.24
(IV) Building Services Engineering
(a) Tender assessment	Professional Technical	0.2 0.6	40 16	3.0 3.0	0.03 0.03
(b) Supervision	Professional Technical	0.8 4.7	40 16	2.1 2.1	0.09 0.17
Sub-total					0.32
Total					1.97

Notes

1. A multiplier factor of 3 is applied to the average MPS point to arrive at the full costs including the consultants’ overheads and profit, as the staff will be employed in the consultants’ office (as at 1.4.95, MPS pt 40 and 16 are equivalent to $51,440 and $17,270 per month respectively.) A multiplier factor of 2.1 is applied in the case of site staff supplied by the consultants.

2. The figures given above are based on estimates prepared by the Director of Architectural Services and Hospital Authority. We will only know the actual fees upon finalisation of the accounts of the works contract.

(mp34-9\olmh)

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