Issue - items at meetings - Recommendations from the Executive Cabinet

Issue - meetings

Recommendations from the Executive Cabinet

 

 

Meeting: 09/06/2016 - Council (Item 19)

19 Recommendations from the Cabinet pdf icon PDF 114 KB

To consider the recommendations from the meeting of the Cabinet held on 1st June 2016

 

(Background information is included at the back of the Council agenda book)

Minutes:

Dolphin Centre Replacement – Financial Update

 

The recommendations from the Cabinet were proposed by Councillor P. J. Whittaker and seconded by Councillor G. N. Denaro.

 

In proposing the recommendations, Councillor Whittaker referred to the increase in the final contract sum proposed by the preferred building contractor for the replacement of the Dolphin Centre. This had resulted in a request for additional funding to support the increase in associated costs.

 

It was reported that officers, together with the Design/Project Management Team and the Commercial Team had undertaken a positive and challenging process to achieve a significant reduction in the additional cost over the currently approved budget from £2.5m to  £619k. When added to other costs relating to the development such as purchase of the land and contingency the revised total cost to the Council of the replacement centre was £13.7m.  There was now some urgency to proceed  with the signing of the contract to ensure the project could go ahead.

 

Councillor Whittaker also referred  to some of the reasons for the increase in cost including:

 

·         Unusual ground conditions and the need for the car park to be split across two levels in order to be DDA compliant;

 

·         An increase in utility costs due to the need for a new electricity substation and connection to a new Severn Trent water main; and

 

·         Inflation within the construction sector being higher than initially anticipated due largely to the increased cost of materials and the large number of 1960’s and 1970’s built Leisure Centres and Swimming Pools now requiring replacement.  

 

Councillor Whittaker reported that Sport England, who were providing a grant of £1.5m towards the scheme, were satisfied that the revised  proposals were robust and reasonable in the current market conditions.  There had been a final review of the business case following the agreement of the facility mix in January 2016 and the resulting income levels anticipated from the larger site had increased the level of prudential borrowing.

 

During the debate some Members suggested that this may be an opportunity to review the proposals for the replacement Leisure Centre as a whole. This could include the possibility of simplifying/downsizing the current proposals in order to reduce the level of borrowing required and the building of a replacement sports hall.     

 

It was proposed as an amendment by Councillor C. A. Hotham and seconded by Councillor C. J. Bloore that Council take the opportunity to defer any further payments on the sports hall and carry out a review to explore any further options  for a replacement leisure centre.

 

On a requisition under Council Procedure Rule 18.3 the following details of the voting on the amendment were recorded:

 

For the amendment: Councillors S. J. Baxter, C. J. Bloore, M. T. Buxton, C. A. Hotham, L. C. R. Mallett,  P. M. McDonald, C. M. McDonald, S. R. Peters, S. P. Shannon, M. Thompson and L. J. Turner (11)

 

Against the amendment: Councillors C. Allen-Jones, B. T. Cooper, R. J. Deeming, G. N. Denaro, R. L. Dent, M.  ...  view the full minutes text for item 19