Meeting documents

To amend the decision of the Leader of 13 September 2007 as follows:

i.                    to enter into contracts with the Marine Fisheries Agency and the Yorkshire and Humber Seafood Group to accept funding to cover all reasonable costs of the project over and above the sum already provided by Yorkshire Forward and carried over from the feasibility study (£7,000).

ii.                  for inclusion of the project in the Council’s capital programme with a value of £329,904

iii.                to grant an exemption from contract procedure rules under CPR rule 20(2)(j)

iv.                 to approve entry into the following contracts:

·        with Quibells & Son (Hull)  Ltd in respect for design and build of the building in the sum of £201,762;

·        with Aqua Logistix in respect of the internal fit out, in the sum of £99,500

REASONS FOR DECISION

Following a Scrutiny Review and a decision by Cabinet, the Council applied for Marine Fisheries Agency (MFA) and Yorkshire Forward funding to deliver a Shellfish Holding Facility in Whitby. Yorkshire Forward, however, required that their funding be channelled through the Yorkshire and Humber Seafood Group (YHSG), so consequently YHSFG took over both funding applications and the Council agreed to act as Project Manager, working for the YHSFG. This arrangement was agreed by Cabinet on 19 June 2007.

A subsequent review of the arrangement by the Project Board though, identified that the YHSFG would not be able to deliver the project within the funding approvals, because of additional VAT costs arising because of their VAT status, in contrast to the Council. The conclusion then reached was that the project could be delivered within budget by reverting to the original arrangement of the Council building the facility rather than just project managing on behalf of the YHSFG. Yorkshire Forward are satisfied with this arrangement providing their funding is still delivered via the YHSFG. The MFA funding, however, which had been offered to the YHSFG, has now been offered instead, direct to the Council, since the MFA require that funding is paid directly to the organisation that is contracting for the build. It is therefore necessary for the Council to agree funding agreements with the YHSFG and the MFA, rather than just with the YHSFG. The decision made by the Leader on 12 September, did not allow for this late decision by the MFA and thus requires amendment.

The funding offer provided by the MFA is to pay for 50% of eligible costs up to a maximum value of £345,000, thus exceeding the anticipated project sum. The agreement with the YHSFG is to cover any reasonable costs over and above those not met by the MFA funding and funding of £7,000 remaining from Yorkshire Forward grant provided in respect of the feasibility study. The application of the carried forward funding has been agreed by Yorkshire Forward.

The construction contract needs to be entered into as soon as practicable to enable commencement of the project in September 2007 to meet the completion date required by funding agencies of March 2008.

The Chair of Overview and Scrutiny Committee accepts that if authority to enter these agreements is delayed this would seriously prejudice the interests of the Council in that officers would be unable to deliver the project within the requisite timescales.

ANY RELEVANT INTERESTS DECLARED BY CABINET MEMBER AND ANY DISPENSATIONS GRANTED                           None

DATE OF DECISION:                                                         27 September 2007

AGREEMENT OF CHAIR OF

OVERVIEW AND SCRUTINY COMMITTEE:                 27 September 2007

IMPLEMENTATION DATE:                                               27 September 2007

Signed                                               Signed

……………………………                ………………………           

Councillor  T W Fox                       Councillor G W Allanson

Leader of the Council                   Chair of Projects and Partnerships

O & S Committee   

Date of signature                            Date of signature               

27 September 2007                         27 September 2007