Issue - meetings

This report seeks Council approval of an addition to the capital budget to fund the development of the new Splashes sports centre.

Background:

This report sought Council approval of an addition to the capital budget to fund the development of the new Splashes sports centre.

The report explained that projections from the professional design team had previously indicated that the redevelopment could be delivered within a budget envelope of £17.85m. Based on this projection Cabinet had previously recommended full Council to approve an additional £12.850 million to the Splashes Replacement Scheme within the capital programme to meet this budgetary expectation. This addition was approved by full Council at its meeting on 21 July 2022.

Due to economic volatility internationally, there had been a knock-on effect on the construction industry across the UK, leading to challenges across all areas of the supply chain, as well as significant increases in labour costs. This had meant that the completed tenders received in August 2022 were several million pounds higher than those projected earlier in the year.

As result of these highly unusual circumstances, the capital budget approved by full Council in July 2022 was no longer sufficient to award a contract for the development of the new Splashes sports centre. The Council was therefore requested to agree the addition of a further £5.8million to the Capital Programme.

An exempt appendix to the report set out information in relation to the contract tender returns received for the development of Splashes Sports Centre and consequent implications for the capital budget.

A Member asked for legal advice regarding whether the decision that the Council was being asked to make could be considered Wednesbury unreasonable. The Assistant Director, Legal and Governance, advised that to be Wednesbury unreasonable, a decision had to be so unreasonable that no person acting reasonably could have made it. Ultimately, it was for Members of the Council to determine whether they considered this to be the case.

The Deputy Leader and Portfolio Holder for Housing and Community Services, Councillor Doe, supported by the Portfolio Holder for Education and Schools, Councillor Potter, proposed the recommendations set out in the report.

Councillor Maple, supported by Councillor Andy Stamp, proposed the following amendment:

Delete the following:

“12.1. The Council is recommended to agree the addition of £5.8 million, to the Splashes Redevelopment Scheme in the Capital Programme, to enable development of the new Splashes Sports Centre.”

and replace with:

“12.1   …notes the Cabinet decision made on October the 18^th 2022.

12.2       Council asks officers to prepare a detailed report on:

a.      What options there are to find the ongoing estimated £1.6 million revenue costs to service borrowing proposed in paragraph 10.3.

b.      What options there are to find the additional £500,000 per year running costs as laid out in paragraph 10.4.

This report to be received with the substantive Splashes report no later than 19th January Full Council.”

Amended recommendations read:

“12.1   The Council notes the Cabinet decision made on October the 18^th 2022.

12.2      Council asks officers to prepare a detailed report on:

a.      What options there are to find the ongoing estimated £1.6  ...  view the full minutes text for item 351

Background:

This report asked the Cabinet to consider whether to recommend full Council to approve an addition of £7million to the capital budget to fund the development of the new Splashes Sports Centre and if so, to delegate authority to the Leader of the Council to enter into the contract.

The report set out that the addition made to the Capital Programme at Full Council in July 2022 was no longer sufficient due to economic volatility internationally, leading to challenges across all areas of the supply chain, as well as significant increases in labour costs. This had meant that the completed tenders received in August 2022 were several million pounds higher than those projected earlier in the year.

An exempt appendix to the report set out projected costs of the new build of the Sports Centre.

Reasons:

An addition to the capital budget of £7.0 million will allow the development of Splashes sports centre to proceed in accordance with Cabinet approval from July 2021, and in line with tender returns received.