(KEY DECISION)

Report No. 72/2017 from the Director for Places (Development and Economy) was received.

The Portfolio Holder, Mr Mathias, introduced the report, the purpose of which was to update Cabinet on the progress towards the delivery of a joint Children’s Centre and Library and to seek additional budget to allow the completion of the works.  Combined these works would provide an asset that would support services for the people of Oakham for the next 25 years.

During discussion for the following points were raised:

      i.        The Visions (Children’s Centre) had given notice to vacate their current premises at Catmose College by 31 December 2017.

    ii.        If the additional funding was not approved there could be a potential for:

a.    The Department of Education (DoE) to try to claw back the grant awarded for this project, and other fees/expenditure would be written off.

b.    That work planned for the library roof would not be finished which would result in costs being incurred in the future.

   iii.        That consideration should be given to the future of Children in Rutland and the importance of the project.

   iv.        The addition of a recommendation to ensure that lessons were learnt when budgeting for future projects. This recommendation was to request that the Chairman of Audit & Risk Committee is to invite Internal Audit to complete an investigation into the significant increase in the required funds.

    v.        Concerns were raised regarding the revised estimates:

a.  Library being 66% above the original budget

b.  Children Centre 56% above the original budget

   vi.        That there had been a naivety that, once the building was stripped back additional works would not be identified.

  vii.        The total budget of £989,000 for the project is not anticipated to be exceeded, but there would be potential for additional work, to be identified, for example, once ground and foundation work commenced.

viii.        That if the budget for the project was to increase again and exceed the £1million threshold that Cabinet could approve, and then approval would be required by Full Council in line with the Councils Financial Procedure Rules.

DECISION

1)    Cabinet APPROVED an increase in the budget of up to £309,000 for the Oakham Library refurbishment and the Children’s Centre extension.

2)    Cabinet NOTED progress made towards the delivery of the combined Oakham Library and Children’s Centre.

3)    Cabinet requested the Chair of the Audit and Risk Committee to add a review onto the Internal Audit Plan for 2017/18.

4)    Cabinet delegated authority to the Chief Executive in consultation with the Leader and Assistant Director Finance to determine the source of funding for the additional budget.

Reason for Decision

1.    The provision of additional funding as set out in the report would allow the combined project to move forward and provide a joint asset that would serve the people of Rutland for the next 25 years.