New College Topics: Overview Building sub-committee Progress - PowerPoint PPT Presentation

New College Topics:  Overview  Building sub-committee  Progress during 2015/2016  Updated Design  Updated Building Cost Estimates  Schedule for 2016 and 2017  Funding Models

Building Sub-Committee # Name Category Role Duties 1. Paolo Trapani Procurement Transaction Advisor Team Leader Project Manage the Transaction of going out to Tender and signing a Building Contract with a Developer. Co-ordinate the responsibilities of the whole Team. Evaluator of Proposals from Bidders. 2. Lara Weissenberger Project co- Council and Environmental Source all input documents for Tender, building plans, ordinator/Administrator Liaison, Liaison with Council/Environmental requirements, Estimators, etc. Evaluator of Architect, Estimators Proposals from Bidders. 3. Johan Coetzee Financial/Educational Consultant Funding/Finance, Technical Review building plans and make recommendations for changes and Specifications/ Building right-sizing to requirements. Obtain cost estimate for Phases. Requirements, QA, etc Review all Technical and Tender documents and make changes. Evaluation of tender Proposals. Assist in drafting the final building contract with the Developer, including Funding/Financing model. Lead Negotiations with shortlisted Bidders. - Optional: Project Manager for the Build 4. Sarvin Naidoo Architectural Specialist/ Parent Technical Specifications/ Review Building Plans, all Technical and Tender documents and Building Requirements make changes. Evaluation of tender Proposals. Review draft contract for build. 5. Gary Simpson Business Consultant/ Parent Technical Specifications/ Review all Technical and Tender documents and make changes. Building Requirements Evaluation of tender Proposals. Review draft contract for build. 6. Sipho Roda Government/ Council Liaison Funding/Lobbing with Review all Technical and Tender documents and make changes. Government/Council Evaluation of tender Proposals. Review draft contract for build.

2015 & 2016 activities Feb 2015: Bought property and appointed Anderson Architects Mar 2015: Wetland delineation, Ecological studies and property survey performed Mar 2015: Design meeting with staff Jun 2015: Design meeting with staff Sept 2015: Appointed QS Sept 2015: Consent use application submitted Nov/Dec 2015: Met with civil and structural engineers to obtain quotes April 2016: Submitted Environmental application to GDARD (including revised traffic counts, services reports etc). ROD expected by mid June. May 2016: Award of R1million from the Albert Wessels Trust for bulk earthworks May 2016: Appointed Crossman Pape to perform geotechnical study on property (required for accurate bulk earthworks design)

Updated Phase 1a and 1b - Design

Updated Phase 1a and 1b - Design

Updated Estimates – Phase 1a & 1b (Squares 1758) Internal estimate Numbers Cost/sq/m B/marks costs Building/ Structure/ & R 19,000,000. 182 Pupils/ 13 R10 500 1. Trinity house earthworks classrooms *14 w/rand – R11 p/class 750 in 2013* Fittings, furnishings, R1,000,000. 2. Trinity house Equipment R12 750 in 2014 Landscaping, parking R1,000,000. Professional Fees R3,000,000. Total Cost R 24,000,000. • Exclusions: • Bulk/Utility fees (R ?_) • Value Added Tax

Activity Schedule for 2016 and 2017 As at 25 May 2016 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Activity Oct NovDec Jan FebMarAprMayJun Jul Aug Sep Oct NovDec Jan FebMarAprMayJun Jul Aug Sep Oct NovDec Jan FebMarAprMayJun Jul Aug Sep Oct NovDec Property Purchase Land Design Appoint Architect Design Input from Stakeholders Technical Technical Documentation Engineering Appointments Approvals Environmental Approvals Council Documentation Zoning Council Approval Construction Contractor Tender and Award Construction

Funding Models Area to be built: 1758 m2 and Total funds required = R 25M Interest rate Repayment / Opport. period Annual cost of # Option to Consider cost (months) Repayments funding Comments Advantage: No external funding required by school. Disadvantage: School will need to increase the fees now and wait for 4 years before the building can commence. School fees will need to be increased enough per child to create R 3,1 million in revenue per annum. The increased fees could 1 Increase in school fees 11.0% N/A R 258 047 R 3 096 565 have an affect on student numbers as affordability becomes a problem Advantage : There is capital available immediately. The school is not encumbered in any way. Disadvantage: There might not be enough parents with available funds to raise the required amount. Parents will need to wait 10 years to get there capital back. The school will need to find R 25 million in 2 Debentures 8.0% 10 R 1 750 000 R 1 750 000 10 years time to repay the capital Advantage : the school might be able to levy the current parents and have some funds availble immediately. There will be a constant capital injection for capital improvements from new parents forever. The precedent has already been set by Kyalami Schools. Disadvantage : This upfront payment might be too heavy for some potential parents, putting pressure on students numbers, now and in the future. There aren't currently enough parents to make up a capital injection of R 25 million., so the school would 3 Development levy (R 25,000 per student) 0.0% Forever R 0 R 0 probably still need to incumber assets for the shortfall Advantage : The money doesn't have to be repaid or the property encumbered. The grant reduces the amount of capital required for project. Disadvantage : The grant amounts are relatively small and additional funding is required to do the necessary construction. The school can only apply for 1 4 Social grant 0.0% N/A R 0 R 0 grant per annum

Funding Models....continued Area to be built: 1758 m2 and Total funds required = R 25M Advantage : The money is available immediately. It is a commercially proven and accepted method of raising finance. Disadvantage : Funding from a bank is expensive. Banks do not extend funding to schools or old age homes due to the reputational risk they run if they have to foreclose on the debtor. General commercial lending terms are over 10 years, making the monthly repayments high. The property will be 5 Bank loan 11.5% 120 R 351 489 R 4 217 863 encumbered as security for the bank. Advantage : The capitial is available immediately. A developer might offer more favourable terms than a bank. Developer is prepared to offer the school and option to settle the outstanding debt earlyf the school has excess cash. Developers and school's interests are aligned as the developer understands the education business. The developer has a construction business and has built schools and extended existing schools for a listed fund for 15 years. Disadvantage : The developer will require that the school be encumbered to protect the outstanding debt. The school will need to pay R 2,7 million annually in mostly interest in the early part of the 6 Funding from developer 9.0% 240 R 224 931 R 2 699 178 agreement. Advantage : The monthly repayments are reduced by the upfront capital investment that the school is able to make. The repayment period could be reduced as a the debt amount could be reduced. Disadvantage : It could take time for the school to raise some capital. Some parents might not be able to afford the capital required by the school, 7 Combination of 2 and 6??: resulting in discomfort amongst parents.