Agenda item
Recommendations from the Cabinet
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. Glass, R. L. Laight, P. Lammas, M. A. Sherrey, R. D. Smith, C. J. Spencer, C. B. Taylor, P. L. Thomas, S. A. Webb, P. J. Whittaker and H. J. Jones (16)
The Chairman declared the amendment to be lost.
During the debate on the substantive motion reference was made to the importance of moving forward with the project in order to minimise the risk of additional costs arising.
RESOLVED:
(a) that the Capital programme for 2016/17 – 2017/18 be increased by £700k to £13.7m to progress the scheme;
(b) that the funding of £700k be secured by
(i) prudential borrowing of £465k; and
(ii) release of balances of £235k to fund the contingency should it be required.
On a requisition under Council Procedure Rule 18.3 the following details of the voting on the recommendations were recorded:
For the recommendations: Councillors C. Allen-Jones, B. T. Cooper, R. J. Deeming, G. N. Denaro, R. L. Dent, M. Glass, R. L. Laight, P. Lammas, M. A. Sherrey, R. D. Smith, C. J. Spencer, C. B. Taylor, P. L. Thomas, S. A. Webb, P. J. Whittaker and H. J. Jones (16)
Against the recommendations: 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)
New Homes Bonus Scheme
The recommendations from the Cabinet were proposed by Councillor G. N. Denaro and seconded by Councillor R. D. Smith.
In proposing the recommendations Councillor Denaro referred to the work which had been undertaken to balance the budget for 2016/17 which therefore enabled funding to be released for the New Homes Bonus Scheme.
Councillor Denaro confirmed that the New Homes Bonus Panel would be looking at the application process with a view to simplifying it as far as possible. Members would have the opportunity to work with groups and organisations within their Wards in order to submit funding applications, including the possibility of cross border or joint applications.
RESOLVED:
(a) that the revised New Homes Bonus Community Grants Scheme as set out in Appendix 1 to the report be approved subject to the exclusion of the sum of £23,840 (unallocated from 2015/16 scheme) and the subsequent recalculation of the sums available to each Ward ;
(b) that 25% of the additional New Homes Bonus grant received in 2016/17 be used to calculate the amount of £101k to be allocated to the scheme; and
(c) that the sum of £23,840 previously unallocated from the 2015/16 scheme, be allocated to bids from Communities previously affected by housing growth in 2015/16, using the criteria from 2015/16.
Supporting documents:
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