1 Memo Wairere House exit plan August 2018 Redacted.pdf

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h)  Agree that the fol owing funding sources are reallocated towards this project
in 2018/19:
i.  $0.800M al ocated in DIA’s 2018/19 capital envelope for the Wairere
House chiller upgrade; and
ii.  $0.250M of the PtNM operating budget in 2018/19;
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Agree / Disagree
i)  Agree that if the PtNM submission for Budget 2019 submission is
unsuccessful, the balance of the funding required ($1.898M) to complete this
project will be sought from DIA in financial years 2019/20 and 2020/21;
Agree / Disagree

Background
3.  The Wairere House facility in Whanganui is at the end of its economic life and is built
next to a flood prone river.  There are a number of known issues with the facility that
represent a risk to the collections.
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4.  The Preserving the Nation’s Memory (PtNM) Business Case noted these concerns and
included the relocation of the col ections currently stored at Wairere House to the
New Shared Repository (Phase 1) and the divestment of the property.
5.  Fol owing the unsuccessful budget bid in 2018 it was agreed to investigate what
actions were needed to be taken to address the most immediate risks. This included
looking into the relocation of the collections at Wairere House with urgency and
disposing of the building.
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6.  On 16 April 2018 the PtNM Board requested a detailed plan be developed for the exit
of Wairere House, including a timeline and budget.
Key features of the project plan for the exit of Wairere
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House
7.  The Wairere House project plan for the relocation of the col ections is attached at
Appendix 1.
8.  The table below sets out the project scope and deliverables;

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Out of scope
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Rugby House facility
21. A number of practical steps for the relocation of the contents of Wairere House have
already commenced at Rugby House. This includes:
•  Moving the Dorothy Neal White col ection from Rugby House to Molesworth
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Street
•  Reorganising and streamlining the Rugby House col ection space
•  Processing music donations and inventory control.
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22. Any continued streamlining of Rugby House will ensure efficient use of shelving to
support future growth.
Avoided maintenance costs for Wairere House
23. Substantial short and long term capital investment will be required to maintain this
sub-optimal facility into the future. By releasing and disposing of Wairere House, DIA
will avoid expensive and o
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24. A building Condition Report prepared by9(2)(f)(iv) (in June 2018) states that the
estimated cost to remediate:
d)  The most immediate and pressing maintenance items (1-4 years remedial
work) will be in the vicinity of $0.750M capex.
e)  Renewal works in years five to nine will be $1.050M capex
f)  Renewal works in year ten only will be $1.480M capex
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9(2)(f)(iv)
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Consultation and communication with stakeholders
26. There are a number of key internal and external stakeholders that wil  need to be
informed of the Department’s plan to exit and how this wil  be managed.  These
include; staff and tenants located at Wairere House, Iwi, Archives NZ Auckland office,
LINZ, the Guardians ATL and Whanganui City Council. The Minister of Internal Affairs
will also be kept informed throughout the project.
27. Consultation and engagement with Iwi needs to include a consideration to tāonga
being moved within three locations: Whanganui, Wel ington and Auckland.
28. A key message in the Department’s communication with stakeholders wil  be to how
Wairere House has served to meet the National Library needs for around 25 years
and is now at the end of its useful life without a major upgrade. In addition,
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relocating the collections will significantly reduce the risk of loss or damage if they
are moved out of Wairere House.
Guardians Kaitiaki of the Alexander Turnbull Library
29. Consultation regarding the exit plan commenced with the Guardians Kaitiaki at their
19 July meeting.  Overall the Guardians Kaitiaki supported the exit and relocation of
the contents, and the proposed new sites.
30. The Guardians Kaitiaki noted the relocation of the contents would not be a
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permanent move and that a further move would be required as proposed in the
PtNM business case. They were comfortable with the experience and capability of
the ‘project team’ to execute the successful relocation of the col ections.
31. The ATL have undertaken to report back to the Guardians Kaitiaki in October 2018 on
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progress with the operating model review and policy development work. This will
give them a greater sense of what the long term collections setting might look like
going forward and how it might impact the collections.
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Financials
34. The Wairere House net book value as at 31 May 2018 is $0.890M for the land and
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$1.606M for the building.

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35. Building outgoings are $300k annually. Rental income and other cost recovery items
is $109K annually. A property valuation report is being prepared to determine the
likely Leasing and Re-sale value for the Wairere House.
36. The associated disposal costs for the building are not included in the budget
estimate.
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Funding options available for the delivery of the project
37. As mentioned above the total budget estimated to complete this project is $2.948M.
This is made up $1.381M Capex and $1.567M Opex. $1.391M of these budgeted
costs are included in the PtNM business case.
38. We have reviewed PtNM budget for 2018/19 and identified up to $0.250M operating
funding that could be al ocated toward pre-decant activities.
39. In addition, there is $0.800M capex allocated in DIA’s 2018/19 capital envelope for
the Wairere House chiller renewal (this requires ICG approval). This capital could be
redirected toward project costs providing the chiller plant can be maintained for a
further 2 years without replacement.
40. Should the PtNM submission for Budget 2019 be unsuccessful, the balance of the
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funding required ($1.898M) to complete the project will be sought from DIA in
financial years 2019/20 and 2020/21.
Risks
41. A number of risks have been identified with regard to the delivery of this project and
project dependencies, these include:
a)  Any outcomes arising from the newly established National Archives and
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Library Institutions Ministerial Group that may impact on the PtNM project;
b)  Any direction to re-scope the PtNM project, this may impact on timing and
resourcing for this project;
c)  The outcomes of the col ections setting review and policy development, and
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how this may impact collections rationalisation;
d)  If Ministerial approval is not granted for the disposal of the National Library
general collections, this wil  mean other storage options for these col ections
wil  need to be sourced. This will impact on resourcing and cost.
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42. Subject to PtNM board approval and direction, we will prepare a (short form)
business case seeking IGC approval to secure the $0.800M capital funding to
commence the exit project.

Peter Murray
Chief Executive (Acting)
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