Agenda item

RESOLVED:

KEY DECISION

That the Executive:

a)    Noted the content of the report which sets out  the current budget challenges for the capital programme, what has changed since March 2022, and the comparison with other projects of this nature.

b)    Approved the uplift to the capital budget of £412,000 to cover the worst-case scenarios and risks,  in order to ensure there is sufficient budget to successfully complete the build in a timely fashion

c)    Delegated authority to the Executive Member for Leisure, Sport, Culture and Tourism, in conjunction with the Executive Director for Adults, Communities and Wellbeing, to take the actions necessary to ensure successful completion of the capital project.

Reasons for Recommendations: Approval of the recommendations will allow the Council to ensure the capital project is successfully delivered in a timely manner and do so without exceeding approved budget whist achieving best value.

Alternative Options Considered: The capital programme cannot be completed without a further budget uplift. The alternative would be to act within current budget which would mean the site would not be fully complete and may be unable to open to the public until it is complete. This will have huge reputational impact and will also mean that the Council will not be able to deliver some of the outcomes set by the external funders, which might expose the Council to the risk of not being able to draw down final claims or having to pay some of the funding back.

Furthermore, identified risks would not be mitigated and instructions to the contractors for variations would be hampered, as Officers have to instruct variations to mitigate risks within the approved budget. Officers cannot instruct if the budget approval is not in place. This would mean that the project would be further delayed, potentially subjecting the Council to more Extension of Time claims which would be in excess of the amount requested in this report for the budget uplift.

The Chair welcomed Dr David Brown, Chair of the Friends of Kettering Art Gallery and Museum to address the meeting. Dr Brown criticized a perceived lack of transparency and communication regarding the Kettering Alfred East Art Gallery, Library and Museum (Cornerstone) Capital Project, noting several issues that had engendered public protest including tree-felling at the site, re-branding and the impact of the development on the Blitz café that he believed could have been avoided with enhanced public engagement. Dr Brown did note that his organisation supported the allocation of additional funding required to complete the project as well as the recommissioning of the Manor House museum.

Cllr Anne Lee was then provided an opportunity to address the meeting. Cllr Lee also raised concerns regarding communications relating to the project while supporting the recommendation of additional funding.

Cllr Helen Howell, Executive Member for Sport, Leisure, Culture and Tourism then introduced a report, the purpose of which was to seek approval for a budget increase for the capital programme at the Cornerstone site to bring the project to a successful conclusion in the summer of 2022.

Cllr Howell thanked the speakers for their endorsement of the additional funding requirements, but refuted the assertion regarding lack of communications, noting that a timeline and copies of communications were available, with quarterly update reports being sent to stakeholders and site visits held in November 2021 and March 2022. An Operations Manager would increase this level of engagement once in post.

It was heard that due to the tight timescales involved in the project to allow funding deadlines to be met, plus the impact of the Covid19 pandemic, costs relating to the project had increased. A further uplift to the capital budget of £412,000 to cover the worst-case scenario and risks was now requested in order to ensure there was sufficient budget to successfully complete the build in a timely fashion. Any underspend would revert back to the capital programme.

Cllr Lloyd Bunday spoke to register his disappointment at the criticism levelled at the project given the success of obtaining a funding award under very tight timescales, noting that other suggested uses for the funding did not meet eligibility criteria.

Cllr Scott Edwards noted that at the outset of the project no-one could foresee a global pandemic that would impact the finances and timescales involved. He further noted that the development was a fantastic opportunity for Kettering, especially in relation to education, history and the arts and it was now a case of getting the project across the finishing line.

RESOLVED:

KEY DECISION

That the Executive:

a)    Noted the content of the report which sets out  the current budget challenges for the capital programme, what has changed since March 2022, and the comparison with other projects of this nature.

b)    Approved the uplift to the capital budget of £412,000 to cover the worst-case scenarios and risks,  in order to ensure there is sufficient budget to successfully complete the build in a timely fashion

c)    Delegated authority to the Executive Member for Leisure, Sport, Culture and Tourism, in conjunction with the Executive Director for Adults, Communities and Wellbeing, to take the actions necessary to ensure successful completion of the capital project.

Reasons for Recommendations: Approval of the recommendations will allow the Council to ensure the capital project is successfully delivered in a timely manner and do so without exceeding approved budget whist achieving best value.

Alternative Options Considered: The capital programme cannot be completed without a further budget uplift. The alternative would be to act within current budget which would mean the site would not be fully complete and may be unable to open to the public until it is complete. This will have huge reputational impact and will also mean that the Council will not be able to deliver some of the outcomes set by the external funders, which might expose the Council to the risk of not being able to draw down final claims or having to pay some of the funding back.

Furthermore, identified risks would not be mitigated and instructions to the contractors for variations would be hampered, as Officers have to instruct variations to mitigate risks within the approved budget. Officers cannot instruct if the budget approval is not in place. This would mean that the project would be further delayed, potentially subjecting the Council to more Extension of Time claims which would be in excess of the amount requested in this report for the budget uplift.