Agenda and minutes

To sign the minutes of the meeting held on 22 March 2017.

The minutes of the meeting held on 22 March 2017 were taken as read and signed by the Chair as correct.   

Councillors are reminded of the need to declare any disclosable pecuniary interests that relate to business on the agenda and which have not already been included in the register of interests, before any discussion takes place on the item. Unless the interest is sensitive, you must also disclose the nature of the interest. In accordance with the Council's Code of Conduct, you must then leave the room and must not participate in any further discussion of the item.  Councillors requiring clarification should seek the advice of the Monitoring Officer prior to the day of the meeting.

No declarations of disclosable pecuniary interest were made.

To consider the report of the Deputy Chief Executive.

The Client Lead (Build) presented a report which sought a recommendation for additional funding of £7.67m to deliver the Leisure Centre, St Sidwell’s Point and the new Bus Station scheme. The proposal also sought approval for authority for officers to enter into a building contract with the successful tenderer to undertake the construction of the development as one Building Contract.  The development of the Leisure Centre and Bus Station, the closing of upper Paris Street and future development by Crown Estate and TIAA Henderson Real Estate on the adjacent site which would include a leisure extension of Princesshay, a new mix of shops, cinema, restaurants, cafes, public open space and an amphitheatre at the site would all provide for a long term regeneration of a strategic site within the city centre.

A presentation by the Client Lead (Build) was made which provided an overview update of the Leisure Complex and the Bus Station. It also highlighted the reasons for the cost disparity between the Project budget cost and the tender return figures. A substantial increase in construction costs was a consequence of a number of factors, including the impact of Brexit, the shortage of skilled workers and workforce in the south west and general uncertainty within the economy and construction marketplace. At the last meeting of the Programme Board, it was reported that tenders for the project had not met the approved budget and due to the complexity of the tender documentation, they would be subjected to a full tender analysis. Five companies had originally been invited to tender. Two tenders were finally submitted. Both tenders exceeded the project budget allocated for construction. The presentation also set out what measures had been put in place to mitigate the cost increase including a Best and Final Offer (BAFO) process led by an external independent consultant.  The six month BAFO process involved the engagement of the whole design team, with one contractor, to identify areas of value of engineering, and where necessary to redesign aspects of the buildings to deliver them within a more attainable tender sum.  The process included a review of the specification and risk allocations within the contract, and further engagement with the supply chain/market to achieve a more favourable position for the City Council. 

At the end of the BAFO period, a detailed Tender report and Value for Money report was produced, once a preferred option had been ascertained.  The options appraised were as follows:-

Option 1 -   develop the Leisure Centre and Bus Station aligned to the already approved Council total project cost budget. However, the top floor of the Leisure Centre would be removed, (including the Spa and two studios) and 40% of the gym area removed.  The enclosed gazing wall would also be removed from the Bus Station concourse. The buildings as designed would be compromised.  This option did not provide the mix of facilities or quality of building required, with a revenue position significantly lower than the other two options;

Option  ...  view the full minutes text for item 7.

To pass the following resolution:

RESOLVED that, under Section 100A (4) of the Local Government Act 1972, the press excluded from the meeting for item 6 on the grounds that they involve the likely disclosure of exempt information as defined in paragraph 3 of Part I of Schedule 12A of the Act.

RESOLVED that, under Section 100A (4) of the Local Government Act 1972, the press and public be excluded from the meeting for the consideration of the following item on the grounds that it involved the likely disclosure of exempt information as defined in Paragraph 3 of Part I, Schedule 12A of the Act.

To consider the report of the Deputy Chief Executive

The Client Lead (Build) presented a report which sought a recommendation for additional funding of £7.67m to progress the Leisure Centre and Bus Station scheme. The proposal also sought to undertake authority for officers to enter into a building contract with the successful tenderer to undertake the construction of the development as one Building Contract.

The Client Lead (Build) responded to a number of Members’ questions including the work by Continuum Sports Consultants who had reviewed their independent business modelling for the project; an explanation of the lump sum/fixed price clause, and a reminder that whilst a retrofit of solar panels may be retrofitted at a later stage, the design would be compatible with the District Heating system once it reached the City Centre.  The Chief Finance Officer also addressed Members’ questions on the Medium Term Financial Plan and future income levels from the project. The Client Lead (Leisure Operations) commented on Members’ comments on future operator performance and confirmed that he had carried out a series of soft market testing as part of his work within the contract mechanism.

The Chief Executive & Growth Director also provided a short statement and referred to the city centre strategy set out in the City Council’s Development Plan.  The Leisure Complex and Bus Station development was a challenging site both physically and also in looking at ways to address the growing competition from internet shopping.  This project would help safeguard the long term future of the city centre.

 A Member referred to the lengthy debate at this meeting which was necessary to ensure that there was full confidence in the project.  They were happy to support the recommendation to help deal with the threat of out of town developments. A Member also agreed that it was not about looking back but about looking forward.

RESOLVED that the Leisure Complex and Bus Station Programme Board support Option Two set out in the report and request Executive to recommend approval by Council of the following:-

(1)          allocation of an additional £0.62 million for the Bus Station and £7.05million for the Leisure Centre to develop the new Leisure Complex and Swimming Pool and Bus Station; and  

(2)         once the overall budget of £39.92 million is agreed by Full Council, the Deputy Chief Executive be authorised to enter into a written contract with the successful tenderer prior to the commencement of any works on site.

Two Members abstained from voting on this matter.

The date of the next Leisure Complex and Bus Station Programme Board will be identified to coincide with the programme gateway.

A further meeting of this Board would be arranged to coincide with the revised programme gateway.