Agenda item

Full Council is asked to consider the proposals and agree next steps to enable the development of a new depot at Turnpike Close in Grantham, following a recommendation from Cabinet held on 11 September 2023.

Members considered the proposals and budget attached to the development of a new depot at Turnpike Close in Grantham.

The priority for a replacement depot was in the outgoing Corporate Plan. The current site at Alexandra Road was not fit for purpose. For example, the current operating licence only allowed for one additional waste collection vehicle on site, demonstrating that there was little room to expand – the current site had been in use since the 1970s. Since 2020 there had been continued progress in working towards this corporate priority by purchasing Turnpike Close.

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 Lincolnshire County Council waste disposal site would remain unchanged as any changes to that site were not within the gift of South Kesteven District Council. Works would not occur on the Alexandra Road site until 2025 to avoid interruptions to the service.

The Joint Meeting of the Finance & Economic and Environment Overview & Scrutiny Committees occurred on 25 July 2023 and recommended proposals to Cabinet, who in turn unanimously recommended the scheme to Council at their meeting on 11 September 2023.

The following points were raised during debate:

·       The combined cost of £10 million mentioned within the financial comments in the report included £2 million that had previously been used for the acquisition of the Turnpike Close site.

·       The conditions encountered at Alexandra Road were poor compared to other Councils. The site itself was in a residential area and the condition of the access road was degrading.

·       The timings of Finance and Economic Overview & Scrutiny Committees made it difficult to monitor the progress of the Depot, therefore a politically balanced, public working group was proposed.

·       There had been some previous costs attributed to this project, including preliminary and demolition works.

·       The new site at Turnpike Close was closer to the A1 road, and away from most residential properties.

·       The selling of surplus assets would mitigate the cost of the Depot; however cost mitigations would be considered separately in the future.

Note:  Councillor Harrish Bisnauthsing left the meeting.

Debate moved specifically onto the proposed recommendation 2, which dealt with the allocation of additional funding that may be required for the project. The proposal read:

“That delegated authority be granted to Cabinet, in consultation with the Section 151 Officer and Chairman of the Finance and Economic Overview & Scrutiny Committee, to allocate any additional funding if necessary as a result of unforeseen costs during the project, with any such decision being reported to the Finance and Economic Overview & Scrutiny Committee at the earliest opportunity.”:

·       Scope was built into this recommendation to utilise further funding on top of the £8 million should an unintended increase in costs arise. This would be subject to scrutiny from the Finance and Economic Overview & Scrutiny Committee.

·       It was prudent to have a mechanism in place to adapt to an unintended overspend. If the spend increased to a greater degree, then a further report would need to be heard at to Full Council.

·       If the contractor on site encountered an unforeseen problem and approached Full Council for payment, it would be a lengthier consultation process than using delegated powers.

·       The scheme of delegation already contained provision for the Head of Paid Service to take action under emergency powers on consultation with the Leader of the Council.

·       There was £333,000 contingency built into the project for construction risks and design development risks, and inflation was also built in.

An amendment to recommendation 2 was proposed. As the proposer had originally moved the motion, he was entitled to amend this. The seconder to the original motion was content with this amendment. The amendment read:

“That delegated authority be granted to Cabinet, in consultation with the Section 151 Officer and Chairman of the Finance and Economic Overview & Scrutiny Committee, to allocate any additional funding up to £1 million if necessary as a result of unforeseen costs during the project, with any such decision being reported to the Finance and Economic Overview & Scrutiny Committee at the earliest opportunity.”

A further amendment was proposed and seconded, and this read:

 “That delegated authority be granted to Cabinet, in consultation with the Section 151 Officer and Chairman of the Finance and Economic Overview & Scrutiny Committee, to allocate any additional funding up to £250,000 if necessary as a result of unforeseen costs during the project, with any such decision being reported to the Finance and Economic Overview & Scrutiny Committee at the earliest opportunity.”

It was highlighted that it was already possible in accordance with the Council’s Contract Procedure Rules for the Cabinet to make up to four allocations of £150,000 each, equating to £600,000.

The amended recommendation 2 was moved and seconded, and following a vote, the amendment FELL and the vote was LOST.

Note:Council voted to further extend the meeting until the end of the item under discussion under Council Procedure Rule 14.20 (g) due to the meting approaching three hours in length.

          Councillor Nicola Manterfield left the meeting.

An amendment was proposed and seconded to remove the wording ‘up to £1 million’ from the motion, effectively returning to the original wording proposed. The proposer of the original motion refused to accept this change. Following a vote the amendment was AGREED.

Having been proposed and seconded and upon being put to the vote, it was AGREED:

DECISION:

That Full Council:

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

2.    Delegates authority to Cabinet, in consultation with the Section 151 Officer and Chairman of the Finance and Economic Overview & Scrutiny Committee, to allocate any additional funding if necessary as a result of unforeseen costs during the project, with any such decision being reported to the Finance and Economic Overview & Scrutiny Committee at the earliest opportunity.

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