On behalf of the Cabinet and using the special urgency powers, in accordance with Parts 3 and 5.8, the Leader of the Council and Portfolio Holder for Finance and Governance, in consultation with the Portfolio Holder for Leisure and Public Realm, Section 151 and Monitoring Officers agrees:
To authorise a virement of £60,000, to increase the Clacton Leisure Centre Swimming Pool Heating System Replacement Capital project budget, funded from within existing Clacton Leisure Centre revenue budgets, that results in an overall increase in the project budget from £1,368,729 to £1,428,729.
Note:
In addition, in order to meet the deadline to sign the funding agreement, permission will need to be granted by the Chairman of the Resources and Services Overview and Scrutiny Committee to exempt this decision from both the Forward Plan and the 5 day call in period, through the special urgency provisions. This will be made through using Rule 15 of the Access to Information Procedure Rules, as set out in Part 5.8 of the Constitution.
As such, consultation has taken place with the Chairman of the Resources and Services Overview and Scrutiny Committee and he has agreed that the Special Urgency Procedure as set out in Overview and Scrutiny Procedure Rule 15 (Part 5.8) can be invoked in this instance.

Following completion of the procurement process to engage an appropriate mechanical and electrical contractor to complete this project, the best value for money winning bid resulted in a higher cost than originally budgeted for. As such, £60,000 additional funding is required to increase the overall budget.
As all suppliers were requested to include a £100,000 contingency sum into their bids, without this increase, there would be sufficient budget to meet the submitted cost, with an additional £40,000 contingency. However, this is not considered sufficient, and the additional funding from over-achievement of income at Clacton Leisure Centre will ensure that the contingency will increase to £107,403. The additional £7,403 will allow for any potential incidental expense which may occur beyond the required contingency.
In addition to the links provided to previous decisions, please refer to the supplementary information provided with this report.

a). To discontinue this project - This would result in a loss of the external ‘Salix’ funding associated with this project and the Council would be required to find the funding in its entirety to urgently replace the heating system.
b). To continue the project with a smaller contingency sum – this would increase the risk and may result in further requests for funding, as the project progresses. £107,403 is considered an appropriate amount.