Agenda item

The Deputy Chief Executive/Director of Customer & Corporate Services to present a report which provides an update on the progress of the Community Stadium and Leisure Facilities Project since the last report brought to Executive in March 2017.

Resolved:  That the Executive:

a.   Approves that the operation of Yearsley Swimming Pool (“YSP”) by GLL under the Design, Build, Operate and Maintain Contract (“DBOM Contract”) be included for the full Contract Period, as per the details set out at paragraphs 26 – 30 of this report;

b.   Agrees that the Project proceeds to Financial Close to enable construction of the NSLC scheme to commence and operation by GLL of the NSLC and the city’s wider leisure facilities;

c.   Agrees that the Deputy Chief Executive, in conjunction with the Leader and Executive Member for Culture, Leisure & Tourism be authorised to complete all final negotiations and arrange execution of all legal documents relating to the Project at Financial Close, providing the Project remains within the overall budget;

d.   Agrees that the Deputy Chief Executive, in consultation with the Leader and the Executive Member for Culture, Leisure & Tourism be authorised to agree to underwrite the cost of required Building Contractor early construction design work and sub-contractor orders ahead of Financial Close to achieve the Project timetable, estimated at a value of £0.5m. These costs form part of the NSLC Construction Cost and are payable post Financial Close already but would be payable should Financial Close not be achieved, as per the details set out under table 5 of this report;

e.   Notes the financial position of the Project and that the Project can proceed within the approved capital budget parameters that Council agreed in March 2016;

f.     Notes as set out at paragraphs 55 – 58 of this report that the project is forecast to be within approved revenue budget set out in the March 2016 Executive Report;

g.   Notes the latest position of the Project Community Partners, as set out at paragraphs 31 – 39 of this report;

h.   Notes the current indicative Project timetable for delivery of the NSLC, as set out at table 5 of this report;

i.     Notes the updated areas of Project risk at paragraphs 70 to 76 of this report, alongside the update on the legal implications since the March 2016 Executive Report that are detailed at confidential Annex B to this report.

j.     Approves the pension arrangements as set out in Paragraphs 78-79 of the report.

Reason:    To progress with the Project and enter into all necessary legal agreements at Financial Close to deliver the NSLC and operation by GLL of the NSLC and the city’s wider leisure facilities.

Members considered a report which provided an update on the progress of the Community Stadium and Leisure Facilities Project since the last report brought to Executive in March 2017 and set out proposals to move forward with construction.

The Executive Member for Culture, Leisure & Tourism thanked offices, partners, the Yearsley Pool Action Group as well as the football and rugby clubs for their work in moving the project forward.  He highlighted the scheme’s leisure, sport and health offer which would include a range of facilities, such as a county standard athletics track and purpose built NHS facility and stated that it would be a valuable asset to the City.

In response to Member questions, it was noted that that GLL had carried out the tender exercise and that whilst market forces and competition, in conjunction with the prestige of the scheme, had driven down costs, there was no reduction in quality and the builders shortlisted were reputable and had delivered similar projects. 

With regards to Yearsley Swimming Pool, it was noted that funding to meet the costs of continuing to operate the pool from 2024/25 would be subject to further approval.   The potential for a revenue surplus in later years was highlighted and the overall budget position would be reviewed after the 7 year period, with a decision taken at that time.

It was noted that whilst the NHS were still to formally sign and confirm the facilities they wished to operate, they had committed to enter into the lease arrangements.

An additional recommendation requesting approval of the pension arrangements as set out in Paragraphs 78-79 of the report was proposed and agreed.

Resolved:  That the Executive:

a.   Approves that the operation of Yearsley Swimming Pool (“YSP”) by GLL under the Design, Build, Operate and Maintain Contract (“DBOM Contract”) be included for the full Contract Period, as per the details set out at paragraphs 26 – 30 of this report;

b.   Agrees that the Project proceeds to Financial Close to enable construction of the NSLC scheme to commence and operation by GLL of the NSLC and the city’s wider leisure facilities;

c.   Agrees that the Deputy Chief Executive, in conjunction with the Leader and Executive Member for Culture, Leisure & Tourism be authorised to complete all final negotiations and arrange execution of all legal documents relating to the Project at Financial Close, providing the Project remains within the overall budget;

d.   Agrees that the Deputy Chief Executive, in consultation with the Leader and the Executive Member for Culture, Leisure & Tourism be authorised to agree to underwrite the cost of required Building Contractor early construction design work and sub-contractor orders ahead of Financial Close to achieve the Project timetable, estimated at a value of £0.5m. These costs form part of the NSLC Construction Cost and are payable post Financial Close already but would be payable should Financial Close not be achieved, as per the details set out under table 5 of this report;

e.   Notes the financial position of the Project and that the Project can proceed within the approved capital budget parameters that Council agreed in March 2016;

f.     Notes as set out at paragraphs 55 – 58 of this report that the project is forecast to be within approved revenue budget set out in the March 2016 Executive Report;

g.   Notes the latest position of the Project Community Partners, as set out at paragraphs 31 – 39 of this report;

h.   Notes the current indicative Project timetable for delivery of the NSLC, as set out at table 5 of this report;

i.     Notes the updated areas of Project risk at paragraphs 70 to 76 of this report, alongside the update on the legal implications since the March 2016 Executive Report that are detailed at confidential Annex B to this report.

j.     Approves the pension arrangements as set out in Paragraphs 78-79 of the report.

Reason:    To progress with the Project and enter into all necessary legal agreements at Financial Close to deliver the NSLC and operation by GLL of the NSLC and the city’s wider leisure facilities.