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 design and build contractor if the outcome of the mini-competition under the Southern Construction Framework in terms of the lack of competition or inadequate bids returned is unsatisfactory (para 11.16 of the report);

17.To authorise the Chief Executive to procure and appoint an Employer’s Agent on the basis of the most economically advantageous tender submitted following a compliant procurement exercise, together with other ancillary or related contractual documentation;

18.To note the update in relation to the proposed publicly-accessible local presence on the ground floor of the new civic centre (section 12 of the report);

19.To note the update in relation to planning and listed building consent (section 13 to the report);

20.To note the high-level programme (section 14 to the report)

21.To note the proposal in relation to communication and engagement (section 15 to the report); and

22.To note the key risks (section 23 to the report).

Plus Recommendations from the Exempt Appendix:

1.    To adopt the capital estimate set out in the Exempt Appendix as a client-held contingency.

2.    To authorise the Chief Executive, in his capacity as the Project Sponsor, to consider and approve requests for draw-down against the proposed client contingency fund, subject to a report to the Project Board.

3.    To note the exempt information relating to the financial appraisal and business case.

4.    To note the exempt disposal values.

5.    To note the update in relation to business continuity.

Action by:

ACTING CORPORATE DIRECTOR, PLACE (A. SUTCLIFFE)

(Divisional Director, Property and Major Programmes (A. Sutcliffe)