Decisions

To support the Honeybourne Line Missing Link project being delivered and fully funded by Great Western Railway (GWR), with CBC bearing the ongoing negligible maintenance costs.  These costs will be negligible due to economies of scale with contractors already in place to cleanse the existing line.

To consider the recommendations

In introducing the report the Leader explained that the Minster Exchange (MX) was a key project of this Council, and as a result of considerable hard work by both council officers and Workshop Cheltenham and significant progress had been made towards its delivery which she detailed.

The Leader informed Members that there remained considerable pressure on the construction industry resulting in short supply of materials and price inflation of circa 20 % and significant demand. The council was aiming to deliver a  operationally carbon efficient building for the MX project. The additional cost pressures were detailed in the report but included additional construction costs, increased specification of work including a building management system to manage utilities and the potential additional cost of linking to the power supply. A commitment had also been made to the virtual Growth Hub which is being delivered and additional legal advice was sought to support the joint venture and the complex procurement process. There was also an additional contingency required to ensure that the project could be delivered within the challenging funding deadlines. The overall impact was an additional budget requirement for the MX increasing the council’s investment from £1 million to £1.995 which was £295k above the original level of the £1.7 m investment agreed by Council in March.  She explained that the exempt Appendix 3 demonstrated that the additional borrowing could be repaid by the joint venture with Workshop Cheltenham over the initial 10 year period.

She reminded Members that this project had the potential to completely transform a much neglected area with significant antisocial behaviour into a new cultural and creative quarter where people will be able and want to spend time. This formed part of the council’s key recovery plan from the pandemic and supports the development of the cyber eco-system of the Golden Valley Development. It also addresses reducing the carbon footprint in the town.

In the debate that followed Members made the following comments :

·         There was an acknowledgement of the exceptional construction costs

·         The benefits of the project in terms of accommodating start up and accelerating businesses and theatre and community groups, outweighed the costs, recognising the long term nature of the investment

·         Caution should be taken in the construction phase due to the ‘tightness’ of the site and concern was expressed relating to unknown costs, in particular relating to the electricity substation requirements

In summing up, the Leader thanked Members for their comments and highlighted the long term nature of the investment. It would be an excellent use of space-opening out on to the Minster gardens which would be subject to long awaited improvements to footpaths and lighting. It also represented a feeder into the Golden Valley Cyber Central programme. She reassured Members that whilst the exact cost of electricity supply was not known, this had been included in the revised budget requested.

RESOLVED THAT

1.    Additional borrowing of £995k and upper borrowing requirement limit of £1.995m to deliver the Minster Exchange project be approved.

2.    A revised gross capital budget for Minster Exchange of £5.666m be incorporated into the Council’s budget and capital programme for 2021/22.

3.    the Investment and Treasury strategy for 2021/22 be revised to include the revised borrowing limit for Minster Exchange of £1.995m.

To approve the appointment of Shield Electrical Services to deliver domestic electrical and associated works for a 5 year call off contract awarded under the JCT 2016 Measured Term contract.  There is the option for the contract to be extended for an additional 3 years. 

The full extent of the works to be delivered under the contract will follow electrical safety reports completed during the contract period.  However, whilst the full extent of the works cannot be determined at this stage a budget of £500,416 has been allocated across the 5 year period, which covers the renewal of 91 old electrical heating systems and 40 rewires. All works will be priced in accordance with rates that were competitively tendered.

CBH has worked with Shield Electrical Services previously and they provided a good service and excellent site works.  Their tender submission was of a high standard.

The Cabinet Member agrees that the Authority;

1. Recommends to Gloucestershire County Council that the HAF funding be allocated as set out in paragraph 3.1 of this report; and
2. That the Authority administers payment of the HAF on behalf of Gloucestershire County Council.