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Bridgend County Borough Council Meeting of Special

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Bridgend County Borough Council Meeting of Special BRIDGEND COUNTY BOROUGH COUNCIL MEETING OF SPECIAL COUNCIL TUESDAY 13 TH JUNE, 2006 REPORT BY THE EXECUTIVE DIRECTOR - LEARNING SUBJECT: YNYSAWDRE SWIMMING POOL (BRIDGEND SWIMMING DEVELOPMENT CENTRE) 1.0 PURPOSE OF THE REPORT 1.1 To explain the circumstances which have led to a projected overspend on the budget to build a new swimming pool at Ynysawdre and seek authorisation for additional funding to allow the project to go ahead. 2.0 BACKGROUND 2.1 Previous reports to Cabinet in October 2003, March 2004, July 2005, October 2005 and a confidential report to Cabinet in November 2005 provide the detailed background to this scheme. * 2.2 Appendix ‘A’ lists in chronological order the key dates with regard to this project. 3.0 CURRENT SITUATION * 3.1 The Council has recently been advised by Limbrick Ltd, the consultant Architects the Council has employed to design and manage the development of the new pool at Ynysawdre, that the pool as currently designed will cost approximately £555,000 more than the budget available to the Council, Appendix ‘B’, the post tender analysis provided by Limbrick Ltd, provides detail and commentary showing a projected out-turn cost for the project of £4,997,778. Special Council 130606 See detailed breakdown below:- 1.0 Current firm price from Wilmott Dixon Turner £4,079,743 (18 th May 2006) 2.0 Overheads and Profit 5% £203,987 Sub Total £4,283,730 3.0 Professional Fees – percentage element 12% £514,048 4.0 Professional Fees – lump sum element £50,000 Sub Total £4,847,778 5.0 Project Contingency £150,000 6.0 Total Projected Project Cost £4,997,778 7.0 Available Bridgend County Borough Council Budget (£4,443,000) 8.0 Current funding deficit £554,778 3.2 Clearly this further increase in the project costs is both extremely unwelcome and also surprising given that as recently as early April 2006 the Council was being advised that the project was likely to come in only marginally over budget and that Limbrick Ltd were confident that any over-spend could be reduced by appropriate ‘value engineering’. 3.3 The explanation the Council has received concerning this matter is that the disparity between the original budget estimate and the projected out-turn now is in part due to an under-estimation of overall costs and in part down to various market factors and conditions. 3.4 This matter has been brought to the Council’s attention at late notice but it is necessary to commit to contract and make a ‘start on site’ by 18 th June 2006 if the Council wishes to comply with the conditions of the external funding grants for the scheme (totalling £1.25 million). 4.0 OPTIONS 4.1 On the face of it the Council has a number of options it could pursue, however in reality some are not feasible at this late stage. The options available to the Council are broadly:- a) Abort the project. b) Reconfigure the project to ensure it stays within the current budget. c) Defer/delay the project. Special Council 130606 d) Find additional funding to allow the project to proceed as designed. 4.2 Previous reports have set out the implications of pursuing each of these options. In brief:- Option ‘A’ will mean that the ageing pools at Ynysawdre (already closed) and Llangeinor will not adequately be replaced and large numbers of people and schools in the County Borough will have trouble accessing a swimming pool for lessons, fitness etc. In addition, this option would mean the loss of many hundreds of thousands of pounds in fees already paid to Architects, Quantity Surveyors etc and also lead to extremely negative public relations. Option ‘B’ would mean that inevitably a significant part of the current design for the pool would be lost which would undoubtedly be a concern to the external funding bodies (eg. spectator seating area or learner pool). This in any case would be difficult to achieve in design terms at this stage, would obviously cause a considerable time delay (and hence the probable loss of external funding) and ultimately lead to an inferior replacement pool being built, meaning some dissatisfied client groups. Option ‘C’ would allow more time to consider the way forward in greater detail. However, the strategic need to replace the pools at Ynysawdre and Llangeinor is well established and a unique opportunity to part fund the new pool from approved external funding of £1.25 million would be lost. A delay would not in any case reduce the overall cost of building the pool (in fact due to building inflation quite the opposite). Option ‘D’ would allow the pool as currently designed to proceed and would ensure that the external funding for the project is secured and retained. The strategic arguments to build a new pool at Ynysawdre are still valid and the Council now has a properly market tested cost of approximately £5 million to build a state of the art swimming pool and fitness centre. While obviously this figure is significantly higher than the original estimate we are advised that it still represents value for money and compares favourably with the cost of recent new build swimming pools in Wales and throughout the UK. 5.0 WAY FORWARD 5.1 It is recommended that option ‘D’ is pursued and that additional funding of £555,000 is granted to the scheme to allow it to proceed. It is necessary that this funding is approved immediately to allow the criteria and deadlines set by the external funders to be met and the contract to begin construction to be entered into immediately. 5.2 The key issue if this recommendation is accepted is then how the additional capital funding that is required can be paid for. The following Special Council 130606 paragraphs set out a strategic framework for swimming pool provision in the County Borough and an explanation of how projected revenue savings can pay for prudential borrowing to allow an additional capital allocation to the project. 5.3 Previous reports to Cabinet have detailed that the bids for both internal capital funding and external funding to develop a new swimming pool on the site of the current Ynysawdre Swimming Pool, have been predicated on the basis that the development of a new facility will allow a rationalisation of swimming pool provision in the County Borough. 5.4 The existing swimming pool at Ynysawdre dating from the early 1970s will obviously be demolished. A detailed condition survey carried out approximately 5 years ago revealed an immediate repair cost of over a million pounds and more importantly, serious structural issues including wide-spread and invasive concrete cancer. The pool has been shut to the public since the summer of 2005 5.5 Similarly, Llangeinor Swimming Pool (dating from the late 1960s), has been found to have multiple serious building issues requiring remedial expenditure totalling over a million pounds. It is anticipated that this swimming pool will close once the new pool at Ynysawdre is completed, (now anticipated to be late in 2007). In the meantime, a ‘sticking plaster’ approach to repairs at the pool has been adopted but even this is proving an expensive undertaking as the pool is now scarcely fit for purpose. A formal Council resolution will be required in due course to close Llangeinor Swimming Pool when the new pool at Ynysawdre opens. 5.6 More recently considerable concern has been expressed from various parties regarding the deteriorating condition of Maesteg Swimming Pool. The pool tank, plant and main structure date from 1938 and despite a significant ‘aesthetic’ refurbishment (including new reception and changing rooms) in the early 1990s, it is apparent that the pool requires major refurbishment work. A full and updated condition survey has been commissioned to identify the detailed problems and costs. The other Council run swimming pools at Pencoed and Pyle are identical in design and date from the early 1980s. They are currently in a reasonable state of repair and adequately serve the East and the West of the County Borough. The swimming pool at Bridgend Recreation Centre differs as it is designed as a ‘leisure pool’ and is therefore suited to fun activities, lessons and therapy/health sessions. The pool itself is relatively modern (early 1990s) although the whole recreation centre requires significant ongoing investment in view of its size and role. 5.7 There are other publicly accessible swimming pools in the County Borough on school sites eg. Bryntirion and Porthcawl Comprehensive Schools and at Trecco Bay, Porthcawl (leisure pool). As part of an overall strategy for the provision of swimming pools continued and extended use of these facilities should also be considered. Special Council 130606 5.8 Many residents of the County Borough will also continue to predominantly use swimming pools outside of the County Borough boundaries as their nearest pools are situated in Neath Port Talbot or Rhondda Cynon Taff. For example, the pools at Cymmer (used by the communities at the top of the Llynfi Valley), Afon Lido (leisure pool) in Port Talbot and swimming pools in the Rhondda valley, (eg. Treherbert, Porth and Ystrad) used by many communities in the Ogmore Valley, (eg. Evanstown). 5.9 Based on the above information, it would be reasonable to assume that the pool at Llangeinor will close at the end of 2007. The pool at Ynysawdre is already closed. The pool at Maesteg also requires significant investment although the extent of the issues at this pool have not yet been fully identified. In terms of strategic planning it is therefore imperative that the new pool is built at Ynysawdre to effectively serve the communities, schools and clubs, particularly from the 3 valleys in the north of the County Borough.
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