PWSC(97-98)46
For discussion
on 3 September 1997

ITEM FOR PUBLIC WORKS
SUBCOMMITTEE OF FINANCE COMMITTEE

HEAD 703 - BUILDINGS
Social Welfare and Community Building - Community centres and halls
160SC - Neighbourhood community centre, Land Development Corporation scheme K2 site, Shanghai Street

Members are invited to recommend to Finance Committee the upgrading of 160SC to Category A at an estimated cost of $88.7 million in money-of-the-day prices for the construction of a neighbourhood community centre at the Land Development Corporation scheme K2 site at Shanghai Street.

PROBLEM

There are insufficient community building facilities in the Yau Tsim Mong District.

PROPOSAL

2.The Director of Architectural Services (D Arch S), with the support of the Secretary for Home Affairs, proposes to upgrade 160SC to Category A at an estimated cost of $88.7 million in money-of-the-day (MOD) prices for the construction of a neighbourhood community centre (NCC) at the Land Development Corporation (LDC) scheme K2 site at Shanghai Street.

PROJECT SCOPE AND NATURE

3. The scope of the project comprises the construction of a NCC at floor level 2 and floor level 3 of a 35-storey hotel development at the LDC scheme K2 redevelopment site at Shanghai Street. The NCC will have a gross floor area of 3 102 square metres to provide community building and social services facilities which include a multi-purpose hall, a conference room, a social centre for the elderly, a day nursery, a children cum youth centre, a study/reading room, a family life education unit and office area for the Yau Tsim Mong District Office. The LDC will be entrusted to construct the centre with funding borne by Government.

JUSTIFICATION

4. The Yau Tsim Mong District, with a population of over 270 000, is currently provided with only one community centre, i.e. the Henry G. Leong Yau Ma Tei Community Centre. The existing community building facilities are not sufficient to meet the demand. It is necessary to alleviate this shortfall of community building facilities in the Yau Tsim Mong District by developing a NCC in LDC ' s K2 scheme, which is conveniently located at the heart of Mong Kok.

FINANCIAL IMPLICATIONS

5. We estimate the cost of the NCC component of the project to be $88.7 million in MOD prices (see paragraph 6 below), made up as follows -

A breakdown by man months of the estimate for consultants ' fees is at the Enclosure.

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

7. We derived the MOD estimates on the basis of the Government ' s forecast of trend labour and construction prices for the period 1997 to 2003. We will entrust the project to LDC under a fixed price lump-sum contract at which 95% of the payment will be paid on practical completion of the project, i.e. when the building is ready for occupation, and the remaining 5% paid on completion of making good defects. This method of payment is used in most government entrustment projects because we can clearly define the scope of works in advance, leaving little room for uncertainty.

8. We estimate the additional annually recurrent expenditure of the project to be $6.95 million.

PUBLIC CONSULTATION

9. We consulted the Yau Tsim Mong District Board on 31 October 1996. Members supported the project.

ENVIRONMENTAL IMPLICATIONS

10. Consultants engaged by D Arch S carried out a Preliminary Environmental Review (PER) for the project in February 1997. The Director of Environmental Protection vetted the PER and concluded that no Environmental Impact Assessment was necessary. During construction, we will control noise, dust and site run-off nuisances to comply with the established criteria through the implementation of mitigation measures in the relevant contracts.

LAND ACQUISITION

11. The project does not require land acquisition.

BACKGROUND INFORMATION

12. We upgraded 160SC to Category B in August 1997. We expect the LDC to start the construction works of the community centre component of the project in April 1998 for completion in February 2001.

Home Affairs Bureau
August 1997

(LL246)

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Enclosure to PWSC(97-98)46

160SC - Neighbourhood
community centre,
Land Development Corporation
scheme K2 Site, Shanghai Street

Breakdown of estimates for consultants ' fees

Notes

1. A multiplier factor of 3 is applied to the average MPS point to arrive at the full staff costs including the consultants ' overheads and profit, as the staff will be employed in the consultants ' offices. (At 1.4.96, MPS pt. 40 = $55,390 p.m. and MPS pt. 16 = $18,595 p.m.). A multiplier factor of 2.1 is applied in the case of site staff supplied by the consultant.

2. The figures given above are based on estimates prepared by the Director of Architectural Services. We will only know the actual man months and actual fees when LDC has selected the consultant.

(LL246)