Issue - meetings

Report by Contracts Delivery Manager and minute extract of the special Executive meeting held on 26^th February 2019 (attached).

Council considered a report by the Contracts Delivery Manager and minute extract of the special Executive meeting held on 26^th February 2019 (circulated previously) regarding Leisure Provision at Seven Brethren.

The Contracts Delivery Manager highlighted the following:

·         The tender process was still live, therefore the report was confidential and needed to be considered under Part B of the agenda.

·         Analysis of the audit undertaken of the current leisure provision in North Devon.

·         Proposals for a new Leisure Centre provision submitted by the tenderer.

·         Leisure Centre usage over the past 12 months.

·         Leisure Centre current usage groups

·         Costs and sources of external funding.

·         Prudential borrowing requirements for the Council.

·         Further opportunities available to the Council in relation to borrowing, costs and contract clauses.

The Head of Resources highlighted the following:

·         Revenue Budget for 2019/20 and potential risks for future funding in relation to Business Rates Retention and the New Homes Bonus.

·         Local Government Finance funding reforms planned for 2020/21 and uncertainty over future funding.

·         The Business Cases for capital funds which had been approved by Council on 25^th February 2019 and the Council’s increased borrowing requirements for some of these projects.

·         The overall Capital Programme approved by Council on 25^th February 2019.

·         Capital funding and future borrowing costs for the existing programme commitments.

·         Medium Term Financial Strategy for 2019-23 approved by Council on 25^th  February 2019 and forecast budget gaps for the period.

·         10 Year Capital Strategy 2020-29 approved by Council on 25th February 2019 and impact this had on the future revenue budget gaps to 2028/29.

·         The Council’s current position in relation to financing and potential borrowing requirements for the proposed Watersports Centre in Ilfracombe.  This would be considered by the special meeting of the Executive on 1^st April 2019 and Extraordinary Council meeting on 15^th April 2019.

·         Leisure Centre – where we started and the original business plan.

·         Leisure Centre – where we are now in relation to financing the project and the breakdown of potential funding as detailed in paragraph 5 of the report and the requirement for banked and future anticipated income from section 106 agreements.

·         Financing of the project subject to the final build priced submission and external funding bids being confirmed.

·         Leisure Centre financial modelling as detailed on page 269 of the report and to be considered in light of highlighted risks, assumptions made and the uncertainty around local government funding changes on the horizon.

·         Financial model context.

·         Financial model risks which included the already projected revenue budget funding gap as detailed in the 10 Year Capital Strategy.

·         Risks of not proceeding with the project.

It was moved by Councillor Jones and seconded by Councillor Moores “that the recommendations 2.1 and 2.2 in the report be adopted”.

An amendment was moved by Councillor Ley and seconded by Councillor Chesters “that the recommendations 2.1 and 2.2 in the report be adopted subject to the banked sources of section 106 funding from planning application 55662 being removed.”

Councillor Wilkinson gave notice  ...  view the full minutes text for item 121

Report by Contracts Delivery Manager (attached).

The Executive considered a report by the Contracts Delivery Manager (circulated previously), the options and/or alternatives and other relevant facts set out in the report regarding Leisure Provision at Seven Brethren.

The Executive noted the following typographical errors in the report:

·         Paragraph 2.2 – be amended to “That Executive approve the following:”

·         Paragraph 4.5 – second line be amended to “20m x 8.5 m learner pool”

The Head of Place provided the Executive with an update on the Seven Brethren project. 

The Contracts Delivery Manager and Parks, Leisure and Culture Officer highlighted the following:

·         Analysis of the current leisure provision in North Devon.

·         Proposals for a new Leisure Centre provision submitted by the tenderer.

·         Leisure Centre usage over the past 12 months. 

·         Leisure Centre current usage groups

·         Costs and sources of external funding.

·         Prudential borrowing requirements for the Council.

·         Further opportunities available to the Council in relation to borrowing, costs and contract clauses.

·         In addition to the construction costs a budget was required for fixtures, fittings, equipment, soft landscaping and planning related fees.  The contractor would then be responsible for ensuring that equipment was maintained and kept up-to-date.

In response to questions, the Contracts Manager advised the following:

·         The new Leisure Centre provision would complement the Tarka Tennis Centre, Falcon Gymnastics Academy and the new Artificial Grass Pitch.

·         The car park would still be owned by the Council and the current number of car parking spaces would be re-provided on the new site.

·         Appropriate bonds and insurances would be in place for the Council should the construction company or contractor become bankrupt at any stage.

·         The reasons why some contractors had pulled out of the tendering process.

·         The business case would include all works required at the Ilfracombe Swimming Pool.

The Head of Resources highlighted the following:

·         Revenue Budget for 2019/20 and potential risks for future funding in relation to Business Rates Retention and the New Homes Bonus.

·         Local Government Finance funding reforms planned for 2020/21 and uncertainty over future funding.

·         Reminder of the business Cases for capital funds which had been approved by Council on 25^th February 2019 and the Council’s borrowing requirements for some of these projects.

·         The overall Capital Programme approved by Council on 25^th February 2019.

·         Capital funding and future borrowing costs for the existing programme commitments.  The new administration would need to challenge the future planned capital expenditure to bridge the gap at an early stage.

·         Medium Term Financial Strategy for 2019-23 approved by Council on 25^th February 2019 and forecast budget gaps for the period.

·         10 Year Capital Strategy 2020-29 approved by Council on 25^th February 2019 and impact this had on the future revenue budget gaps to 2028/29.

·         The Council’s current position in relation to financing and potential borrowing requirements for the proposed Watersports Centre in Ilfracombe.

·         Leisure Centre – where we started and the original business plan.

·         Leisure Centre – where we are now in relation to financing the project and the breakdown of potential funding as detailed  ...  view the full minutes text for item 114