This report provides an update on the overall progress of the programme.
David Burns and Emily Hill presented the update report.
David reported that the overarching programme was green. There were risks rated amber due to the continuing risks around the decant programme though these are moving in a positive direction. The 1st move took place successfully during the 14th – 17th June weekend.
We are not expecting any issues with the Secretary of State’s approval for the sale of land. We have informally been told that the Secretary of State’s approval may not be required. The Deputy Mayor of London’s approval would be granted on 8th July. Full planning and listed building consent are now scheduled for the end of July 2019 which does not impact on the project’s critical path. Town Hall site demolition works would start in September and the construction works in February 2020. The programme is currently deliverable within the approved programme budgets.
In response to a question regarding project management approach, the Committee was informed that both the waterfall and agile approaches were used. By December 2019, the bottom line would be above the top line in the progress tracker. A2 dominion would employ a development manager and a clerk of works to ensure quality control. Currie & Brown would provide the quality assurance and cost control work for the Council.
Councillor Murphy inquired about the contingency provision for the decant costs. It was explained there is a contingency for the construction elements of the project. Members asked for clarification between the responsibilities for the Town Hall refurbishment and new Town Hall extension construction work. David noted that the JV was responsible for new Town Hall extension construction work in while the Council was responsible for the refurbishment. There was likely to be 1 contractor with 2 separate contracts for 1 project. Both contracts would be managed by the JV acting as the development manager for the Council on the refurbishment element.
In response to Councillor Murphy’s question regarding how the project would be funded, Emily noted that the £85 million project cost would be financed through multiple funding streams – CIL, S106 funding, profit from the JV, savings from the not occupying the building such as utilities, business rates, borrowing etc and as a last resort use of reserves. David noted that the Council was putting its contribution into the JV via the land sale. We have the authority to lend the JV up to £90 million to fund the development. Any funds loaned to the JV would be at market rate. They can seek funding from alternatives sources if they want to.
In response to Councillor Quigley question about what the £85 million expenditure cover, it was reported that it included the decant and refurbishment costs.
Councillor Schmid stated that members require a detailed knowledge of the scheme to scrutinise and track the progress. This might come from discussions outside a formal meeting setting. Judith Worthy asked officers to think about the structure of the report and take on board the comments made particularly outlining where the money was coming from.
· Next update to include spend, sources of funding and funding risk.
· Clarification of where the responsibility of the JV starts and stops.
· Provide a diagram showing the JV and Council’s financial responsibilities and core elements.
· Officers to split the contingency elements of the project.
· Committee to receive quarterly update reports to reassure the Committee that the programme is on track.
Action by – David Burns
Councillor Schmid commended the officers for an excellent job done in managing the programme to date.