Agenda item

To consider the decisions made by Cabinet at their meeting on 6 November 2012 in relation to the above item, which has been called in by Cllrs Gillies, Warters and Taylor in accordance with the Council’s Constitution. A cover report is attached setting out the reasons for the call-in and the remit and powers of the Corporate Scrutiny Management Committee (Calling-In) in relation to the call-in, together with the original report and the decisions of the Cabinet.

Members received a report which asked them to consider the decisions made by Cabinet on 6^th November 2012 in relation to the Community Stadium project. The report to the meeting provided an update on this project, including the procurement timetable and risk register, the Business Plan, new Project Management/Governance arrangements together with new interim arrangements for the current Waterworld contract.

Details of Cabinets decision were attached at Annex A to the report, with the original report to Cabinet attached at Annex B. The decision had been called in by Cllrs Gillies, Warters and Taylor on the following grounds:

(1)The key amendments to the business case approved by Cabinet are not specifically itemised, including the total capital costs, so that the revisions agreed to are not particularly obvious and transparent;

(2) There needs to be a greater appreciation of when the risk identified in the report is deemed to be an unacceptable risk.  For example, on the one hand the capital overspend is given a medium rating, whereas the risk associated with the S106 contribution from the retail development is rated high;

(3) The potential impact of the new interim contractual arrangements for the Leisure Complex upon the future financial stability and sustainability of the project does not appear to have been addressed.

Members were asked whether to confirm the decision (Option a) or to refer it back to Cabinet for re-consideration (Option b) as set out in the report.

Councillor Gillies addressed the meeting on behalf of the Calling-In members expressing concern at the business plan delivery and procurement. He felt that it was unacceptable that project costs had risen with an apparent increase of over 60%and without explanation. In relation to risks 4, 7 and 10 highlighted in the Cabinet report, he felt that these could be mitigated by delaying the project until the Section 106 money is available.

Councillor Taylor also addressed the meeting on behalf of the Calling-In Members  to highlight paragraph 24 of the Cabinet report attached at Annex B to request that reconsideration be given to retaining leisure facilities under Council control.

The Cabinet Member for Leisure responded to the points raised, advising that it made long term financial sense to keep Greenwich Leisure Ltd (GLL) in place. The project cost table contained in the Cabinet report showed no impact on the £19.2m cost and it is possible that the business case detail would change as the project progressed. Risks were usual with all major development projects and officers would monitor the situation.

Members went on to discuss the points raised and other issues in some detail. These issues related to the operation of the Community Stadium and the arrangements with GLL, in particular the future of Waterworld.

In response, Officers confirmed that any potential operator would bid to take it on for 18 years and be expected to have a design and operating plan in place.  Constitutional advise was also given in relation to the consideration of exempt information at Annex 2 to the report.  It was noted that further consideration would be given to  the current constitutional position on this matter outside this meeting.

RESOLVED:                That Option (a) identified in the report be approved and that the decision of Cabinet be confirmed.

REASON:                     In accordance with the requirements of the Council’s Constitution.