The Mayor considered the report as well as the Exempt Appendix.

DECISION

1.    To note the design development work to date (section 6 of the report) and the proposal for a different scheme to that which formed the basis of the November 2015 Cabinet report (section 5 of the report);

2.    To note the cost update (section 7 of the report);

3.    To adopt a capital estimate of £105 million for the construction and related costs associated with the building of the new civic centre;

4.    To authorise the Divisional Director, Property & Major Programmes, to negotiate and agree a revised fee for the architect-led multi-disciplinary design team up to the end of RIBA Stage 3 (Developed design), subject to the agreed fee representing no more than 4% of the core construction cost of the project (para 7.18 of the report);

5.    To authorise the Divisional Director, Property & Major Programmes, to issue a Voluntary Ex Ante Transparency (VEAT) notice to the OJEU if required and to enter into any contractual documentation to implement the above decision;

6.    To note the updated financial appraisal and business case that sets out the positive Net Present Value on the civic centre project (section 8 of the report);

7.    To note the update in relation to disposals (section 9 of the report)

8.    To note the difference between assets that have been identified to be sold to support the funding of the civic centre project and those that will be realised solely and exclusively as a result of proceeding with the civic centre scheme (para 6.3);

9.    To note the improved capital receipts from assets sold to date and forecast to be achieved (para 6.8 and exempt report);

10.To note that the funding available to support the development of the new civic centre from those assets identified in November 2015 for sale has, and is forecast to, grow and that the net borrowing requirement is reduced as a result;

11.To confirm that funding of the civic centre can be made available from either the utilisation of cash reserves, the asset sales identified in this paper, or from borrowing (or a combination of those three funding sources) with a final decision on funding and financing to be taken prior entering into the design and build contract in 2018;

12.To authorise the use of prudential borrowing to cover the gap between forecast project costs and other sources of capital including capital receipts;

13.To note the update on surveys, soft strip and asbestos (section 10 to the report);

14.To note the update in relation to procurement (section 11 to the report);

15.To authorise the Chief Executive, as Project Sponsor, to enter into a Pre-Construction Services Agreement, and subsequently the design and build contract, on the basis of the most economically advantageous  tender submitted following a compliant procurement exercise, together with any other ancillary or related contractual documentation;

16.To authorise the Chief Executive to initiate an OJEU restricted procurement exercise for the  ...  view the full decision text for item 5

The Mayor introduced the report. He explained that the costs and benefits of the proposals had been thoroughly examined and that it was the right decision to go ahead with the project.

He noted the exempt appendix to the report. He agreed that it was exempt for the reasons set out, namely that:

“The appendix sets out certain details of the proposed funding strategy for the project; the premature publication of this information could prejudice the council in future negotiations with potential contractors. The report also contains information relating to potential sale receipts of council-owned buildings that may be proposed for disposal; the publication of this could jeopardise the council’s ability to secure the best consideration, reasonably obtainable, when taking those sites to the market. The report also lists details of potential rental payments for the council’s current accommodation and possible alternatives; publication of this information could prejudice the council in negotiations. “

During discussion of the report it was noted that it provided a good account of the current state of the project and the next steps. It was also reported that the Overview and Scrutiny Committee were considering holding a spotlight session to examine the project in more detail.

Councillor Peter Golds, Leader of the Conservative Group, addressed the meeting to thank officers for continuing to provide briefings on the progress of the project and to highlight that he would be continuing to monitor the financial viability as the work developed.

The Mayor noted the pre-decision scrutiny questions and tabled answers and agreed the recommendations as set out.

RESOLVED

1.    To note the design development work to date (section 6 of the report) and the proposal for a different scheme to that which formed the basis of the November 2015 Cabinet report (section 5 of the report);

2.    To note the cost update (section 7 of the report);

3.    To adopt a capital estimate of £105 million for the construction and related costs associated with the building of the new civic centre;

4.    To authorise the Divisional Director, Property & Major Programmes, to negotiate and agree a revised fee for the architect-led multi-disciplinary design team up to the end of RIBA Stage 3 (Developed design), subject to the agreed fee representing no more than 4% of the core construction cost of the project (para 7.18 of the report);

5.    To authorise the Divisional Director, Property & Major Programmes, to issue a Voluntary Ex Ante Transparency (VEAT) notice to the OJEU if required and to enter into any contractual documentation to implement the above decision;

6.    To note the updated financial appraisal and business case that sets out the positive Net Present Value on the civic centre project (section 8 of the report);

7.    To note the update in relation to disposals (section 9 of the report)

8.    To note the difference between assets that have been identified to be sold to support the funding of the civic centre project and those that will be realised solely and exclusively as a  ...  view the full minutes text for item 5