Auckland Transport refurbishment LGOIMA response

6 Henderson Valley Road, Henderson, Auckland 0612 Private Bag 92250, Auckland 1142, New Zealand Ph 09 355 3553 Fax 09 355 3550

25 July 2017

NZ Taxpayers Union Via email: requests@taxpayers.org.nz

To whom it may concern, Local Government Official Information and Meetings Act 1987 CAS-520508-D6K7W4 Thank you for your request dated 19 July relating to Auckland Transport’s move to collocate in a single main location.

Attached are replies to previous questions raised by the Taxpayers’ Union. I can confirm that the situation remains unchanged from our previous responses. In particular, the lease terms and conditions remain unchanged from those originally agreed with the landlord. The fitout project remains on budget to be completed on time and within the original budget of $11 million or $800 per m2.

You have also asked why it was not possible to reuse the previous fitout. There are several reasons for this: The technology element is unique to AT and its network The previous tenant took their furniture and furnishings with them. While we have reused a considerable portion of our existing furniture, some of it is unsuitable for the more compact environment and needed replacement.

The previous fitout was 12 years old and some items required replacement including air conditioning and floor coverings AT will have more staff in the building than the previous tenants and will have a slightly different operating philosophy. This has required changes to meeting room size and configuration, end of journey facilities such as bike racks and showers, kitchens, internal signage and so forth.

AT’s Board of Directors has closely monitored this project to ensure it remains within budget and the standard of the fitout befits a public-funded body.

The end result will be a facility which will increase productivity, save on rental and produce a good work environment at a modest budget.

aucklandtransport.govt.nz

We trust the above information has addressed the matters raised however, should you believe that we have not responded appropriately to your request, you have the right in accordance with section 27(3) of the LGOIMA to make a complaint to the Office of the Ombudsman to seek an investigation and review in regard to this matter.

If you have any further queries, please contact Auckland Transport on (09) 355 3553 during business hours, quoting Local Government Official Information request number CAS-520508-D6K7W4.

Yours sincerely

Richard Morris Chief Financial Officer Enc.

Previous LGOIMA responses: CAS-362547-Q2V8C9 – 27 January 2017 CAS-366956-C5D6X8 – 21 February 2017 CAS-386621-Q8F2K2 – 22 February 2017

ENCLOSURES

6 Henderson Valley Road, Henderson, Auckland 0612 Private Bag 92250, Auckland 1142, New Zealand Ph 09 355 3553 Fax 09 355 3550

27 January 2017

NZ Taxpayers Union Via email: requests@taxpayers.org.nz

To whom it may concern, Local Government Official Information and Meetings Act 1987 CAS-362547-Q2V8C9 Thank you for your request for information about Auckland Transport’s office relocation and fit-out.

The relocation has come about because one of our major leases, at Smales Farm on Auckland’s North Shore, expired and was unable to be renewed. We took the opportunity to relocate all of our operations from 19 sites across Auckland to one main site and three district operational bases.

This has allowed us to reduce our accommodation from 18,986 square metres currently to only 15,700 (including the satellite locations) from late this year. By choosing a building with large floor plates we will be able to achieve occupancy of only 9 square metres per staff member. This is right up there with private sector best practice and is well below the 13 square metres per person targeted by the Government Office Accommodation watchdog.

In addition to annual rental savings of over $500,000 there are also savings in electricity and other operating costs of almost $200,000 per annum and softer savings from less travel between current locations.

Your specific questions are around our fit out cost. Given we will not be moving until late this year, some items are still being costed and haven’t yet been ordered. The fit out cost is budgeted at $11 million and this amount was approved by our Board. This represents $800 per square metre which is below the typical fit-out cost of $1,000 per square metre as advised by our professional advisors.

The budget comprises: Item

Cost ($M)

Explanation

Fit Out

6.842

This is a known cost as the procurement process is complete. The work comprises physical works on the building including replacing the existing air conditioning at the end of its current life and “hard fit out” spaces like kitchenettes on each floor, reception and bike racks.

Technology

0.583

This is a budget sum for cabling, switches and other network costs. We will be reusing existing phones, laptops, printers, etc.

3.262

We will be reusing around half our existing furniture. Much of our existing furniture is either old or unsuited to the new location. For example, I currently have an office in Henderson with a large, L shaped desk and meeting table. In order to achieve levels of occupancy required I will have a small desk in an open plan area in the new building with shared meeting and break out spaces

0.313

Currently unallocated

Furniture and Fittings Contingency Total

aucklandtransport.govt.nz

11.000

While this may seem like a large sum on first blush, it is a cost that will occur only once over the term of the lease. Much of the fit-out in our existing buildings was due for replacement. The amount being spent on furnishings is modest and there is no art work or recreational space.

We trust the above information has addressed the matters raised however, should you believe that we have not responded appropriately to your request, you have the right in accordance with section 27(3) of the LGOIMA to make a complaint to the Office of the Ombudsman to seek an investigation and review in regard to this matter.

If you have any further queries, please contact Auckland Transport on (09) 355 3553 during business hours, quoting Local Government Official Information request number CAS-362547-Q2V8C9.

Yours sincerely

Richard Morris Chief Financial Officer

6 Henderson Valley Road, Henderson, Auckland 0612 Private Bag 92250, Auckland 1142, New Zealand Ph 09 355 3553 Fax 09 355 3550

21 February 2017

Jack Close NZ Taxpayers Union requests@taxpayers.org.nz

Dear Mr Close Local Government Official Information and Meetings Act 1987 CAS-366956-C5D6X8 Thank you for your further query of 31 January regarding Auckland Transport’s fitout cost.

In your earlier query, we provided a breakdown of the proposed fitout. We noted that the move would generate significant savings and that the resultant occupancy ratio and fitout were below benchmarks of good practice.

We also noted in our response that some items were still undergoing detailed budgeting.

The requested breakdown of the $3.262 million furniture and fittings budget is as follows: Item

$000

Office Desks, Chairs etc.

1,232

Meeting Rooms

389

Other Spaces (e.g. collaborative, focus and open meeting areas)

314

Kitchens

374

Taps/Plumbing

126

Appliances

86

Signage

25

Bike Racks

40

End of Journey (lockers, changing facilities etc.)

45

Technology (including room booking system)

382

Fees, Project Management and Consents

249

Total

3,262

These costs need to be seen in the context of 1,525 staff to be accommodated.

All of the items above are subject to an open tender. The standard of furniture and fittings all reflect the modest standard suitable for a ratepayer funded organisation.

aucklandtransport.govt.nz

We trust the above information has addressed the matters raised however, should you believe that we have not responded appropriately to your request, you have the right in accordance with section 27(3) of the LGOIMA to make a complaint to the Office of the Ombudsman to seek an investigation and review in regard to this matter.

If you have any further queries, please contact Auckland Transport on (09) 355 3553 during business hours, quoting Local Government Official Information request number CAS-369543-V7V5Y0.

Yours sincerely

Richard Morris Chief Financial Officer

6 Henderson Valley Road, Henderson, Auckland 0612 Private Bag 92250, Auckland 1142, New Zealand Ph 09 355 3553 Fax 09 355 3550

22 February 2017

NZ Taxpayers Union requests@taxpayers.org.nz

To whom it may concern, Local Government Official Information and Meetings Act 1987 CAS-386621-Q8F2K2 Thank you for your additional query of 21 February regarding Auckland Transport’s fitout cost. The responses to your questions are outlined below.

1) Was it possible for Auckland Transport to move the current desks and chairs from the current office to the new one? Was it necessary to purchase new desks and chairs?

This answer was provided in my earlier response of 31 January, AT will be reusing half of our existing furniture.

Moving to new space at the tight density intended requires smaller desks than currently. Aside from the age and condition of much of our office furniture, it is simply not suitable. We cannot use desk that are longer than the 1.6 metre in length as this has a major impact on the number of desks overall we can fit on a floor. Where possible we will repurpose furniture including looking at the cost effectiveness of getting new tops on current 1.8 desks that have a reusable leg system.

The large wooden corner/straight desks that are two metres or longer cannot be repurposed and again impact on the number of desk we can put on a floor which affects our ability to use the floors efficiently. We have 378 1.8m desks that we need to repurpose, we will be reusing 724 1.6m desks. We will be utilising 884 existing chairs in the new premises.

2) What is involved with the $25,000 in signage costs? Please provide a breakdown of these costs.

Signage refers to internal building signage. AT is not taking naming rights on the building. Given the building is undergoing an internal refit, there will be a need to replace all signage for exits, meeting rooms, toilets, safety signage and the like. AT does not take possession of the building until April and does not move in until September. The signage plan will not be finalised for some time and the amount in the budget is currently an estimate. As with other elements of our fitout the signage will be to a modest standard.

aucklandtransport.govt.nz

3) What is involved with the $126,000 in taps/plumbing? Does the new Auckland Transport office not have taps or plumbing? Why is it necessary to refit taps/plumbing? Please provide a breakdown of these costs.

The building is being refitted to cater for 1,525 people. There will be one kitchen and one kitchenette on each of the six floors. Kitchen fittings are commercial grade to cater for the hot and chilled water needs of this number of people and for normal sinks. These are subject to a competitive tender process to ensure best price.

We trust the above information has addressed the matters raised however, should you believe that we have not responded appropriately to your request, you have the right in accordance with section 27(3) of the LGOIMA to make a complaint to the Office of the Ombudsman to seek an investigation and review in regard to this matter.

If you have any further queries, please contact Auckland Transport on (09) 355 3553 during business hours, quoting Local Government Official Information request number CAS-386621-Q8F2K2 Yours sincerely

Richard Morris Chief Financial Officer