Report to the City Executive Board meeting on 24^th September attached.

Extract from the Minutes attached.

The City Executive Board agreed to grant project approval for the construction of the Rose Hill Community Centre within a revised capital budget of £4,764,000.

Council is recommended by the City Executive Board to allocate a revised capital budget of £4,764,000.

If there are recommendations to Council either from the special meeting of the City Executive Board on 24^th September or from officers, these will be circulated with the briefing note.

Council had before it the joint report of the Head of Leisure, Parks & Communities and the Service Manager, Regeneration and Major Projects to the City Executive Board meeting on 24^th September, and the minutes of that meeting.

Councillor Turner moved the report.

Councillor Thomas moved an amendment to add a third point “If/when it becomes apparent that the contingency funds are not needed, the matter of redirecting these towards the purchase of the Gladiator Club is considered by the City Executive Board”. This was lost on being put to the vote.

Council therefore considered the unamended recommendation in the report.

Council agreed to allocate a revised capital budget of £4,764,000 for the construction of the Rose Hill Community Centre.

Lead Members: Councillor Christine Simm, Executive Board Member for Culture and Communities and Councillor Ed Turner Board Member for Finance, asset Management and Public Health

Report of the Head of Leisure, Parks & Communities and Service Manager, Regeneration and Major Projects now attached.  

The Head of Leisure, Parks and Communities submitted a report (previously circulated, now appended) which requested project approval for the construction of Rose Hill Community Centre at a total cost of £4,764,000.

The Head of Leisure, Parks and Communities explained that an additional £478,000 was needed to complete the construction of the Rose Hill Community Centre. Material costs had increased significantly since the original budget was agreed and the two tenders received did not fall within the existing budget. There is currently a lack of supply in materials as many local construction businesses have gone out of business since the recession.  A lot of materials have to be imported from abroad which has increased costs. Half of the £478,000 would be set aside as contingency and was unlikely to be spent.

Councillor Turner, Executive Member for Finance, Asset Management and Public Health agreed with the rising price of materials being the cause of the project being over-budget. He felt that because the Council had consulted the public and had designed the building in line with the public’s response. It was important that the Council complete the proposed work rather than reduce the scale of the building to meet costs.

Councillor Fooks was concerned with the Council’s ability to manage the capital programme and if additional funding is given to complete this project what capital project misses out? Cllr Turner said that the capital programme would need to be re-prioritised.

Cllr Simm asked that officers analyse what mistakes were made in the budgeting of this project and should anticipate rising costs when budgeting future projects.

The City Executive Board resolved to:

1.    Grant project approval for the construction of the Rose Hill Community Centre within a revised capital budget of £4,764,000;

2.    Recommend to full Council the allocation of a revised capital budget of £4,764,000.