Agenda item

Cabinet is asked to consider the proposals and agree next steps to enable the development of a new depot at Turnpike Close in Grantham.

Purpose of report

To consider the proposals and agree the next steps to enable the development of a new depot at Turnpike Close in Grantham.

Decision

To recommend to Council:

1.    That an allocation of £8million be included in the General Fund Capital Programme to provide funding to construct a new depot at Turnpike Close, Grantham.

2.    A delegation of authority to the Council’s Section 151 Officer, in consultation with the Leader and Deputy Leader of the Council, to allocate further funding if required due to unforeseen costs during the project.

3.    A request that the Finance and Economic Overview and Scrutiny Committee adds the replacement depot to its work programme and establishes a working group to receive regular updates and monitor the project.

Alternative options considered and rejected

Option 1 - To do nothing, not approve the budget for the construction of a new depot and remain at Alexandra Road. This had been discounted due to the growth of the District as identified in the Local Plan and the inability of the existing site to meet growth demands.

Option 2 – Investigate whether Alexandra Road (under the ownership of South Kesteven District Council) could be re- modelled to reconfigure the site.

Option 3 – Sell the Turnpike Close site and look for another site to purchase.

Reasons for decision

The site was chosen and purchased as the ideal situation for a replacement depot. The costs for the scheme were volatile but the building of the site was a priority due to potential changes in the Environment Act.

The Council needed to find an alternative provision for delivering its statutory function of this service. The site at Alexandra Road was geographically constrained and therefore could not accommodate any further service growth to meet future operational needs as identified in the Local Plan.

The welfare facilities did not meet modern standards for the Council’s workforce. A new facility would provide drying areas, new locker provisions as well as canteen and training facilities. The training room could be used by officers and Members providing a multipurpose space.

The ability to maximise sustainable systems so that the operational cost of the facility was lower showed a progressive approach working towards a carbon reduction target of 30% by 2030 and zero carbon by 2050.

The Leader of the Council and Cabinet Member for Property and Public Engagement highlighted several key points on the depot:

·         An options appraisal on the Alexandra Road site still needed to be undertaken.

·         The Lincolnshire County Council waste recycling centre must remain on the Alexandra Road site until at least April 2025 so as not to disrupt crucial services.

·         The priority of delivering a new depot was highlighted in the Corporate Plan when it was being drafted in 2020, under the priority ‘building a fit for purpose depot’. The current site was not fit for purpose and had no capacity for key areas such as welfare facilities and the workshop to expand into.

·         The Design team had worked on plans for a fit for purpose depot, which would allow for services to be housed together, whilst retaining land for future growth.

·         The Joint Meeting of the Finance & Economic, and Environment Overview & Scrutiny Committees recommended to Cabinet at its meeting held on 25 July 2023 that an allocation of £8 million should be included in the General Fund Capital Programme in order to construct the new depot at Turnpike Close, Grantham.

The following points were highlighted during discussion:

·         The engagement with the external cost consultants had led to the assurance that a contingency fund of 4.8% would be sufficient for the project. The Outline Programme for the works had to be ambitious, and the indicative timeline reflected that it was.

·         It was important that a contingency was built into the project to allow for unforeseen issues. If further major events impacted the project, then the relevant approvals would be sought from members and officers.

·         As much of the information as possible seen by any working group set up by the Finance and Economic Overview and Scrutiny Committee should be in the public domain.