Issue - meetings

(Cabinet Member with Special Responsibility Councillor Maia Whitelegg)

Report of the Head of Cultural Services. 

(Cabinet Member with Special Responsibility Councillor Maia Whitelegg)

The Head of Cultural Services presented a report that gave consideration to options for the future of the Dome. 

The options, options analysis, including risk assessment, were set out in the report as follows: 

Option A         Closure and demolition of the Dome, with no transfer of events.

In option A an estimate for demolition of the Dome (“to one metre below ground level, grubbing up and sealing off of services, removal of debris and arisings off site, etc”) has been received from Birse Civils Limited. At December 2006 prices the total cost estimate stood at £79,400 (£83,400 at 2008/2009 prices). This capital growth has yet to be highlighted as an item for the Capital Programme and approval would be dependent on a project appraisal.

Assumptions;-

·         Cessation of all operations at Dome.

·         One permanent staff member subject to redeployment, with effect from April 1^st 2008. Staff member may alternatively take redundancy option which would result in subsequent redundancy costs.

·         Effective 1^st April 2008, subject to no contractual costs relating to cancellation of existing bookings.

·         Pumping Station expenditure (see paragraph 2.10)

Projected revenue savings of £103,900 best case and £58,900 worst case scenario based on 2008/09 draft estimates. The projected savings for 2009/10 and 2010/11 are £114,300 and £122,000. A breakdown of the Option A financial appraisal was attached as an appendix to the report. 

Risks:-

·               The above would have a potentially damaging impact on the reputation of the Council and district. The closure of the Dome and no transfer of events would be viewed negatively in terms of the impact that shows and events make to the district and undermine the events strategy undertaken since the creation of Cultural Services. High profile event/shows such as those undertaken in 2007/2008, including; - the “Arctic Monkeys”, “Athlete”, and “Reverend & the Makers” would cease through the loss of the existing revenue budget.

·               The above assumes an effective date of the 1^st April 2008, and no contractual costs relating to cancellation of existing bookings. However, based on existing bookings scheduled for the Dome in 2008/2009, the potential maximum estimated contractual costs of cancellations, to-date have been calculated at £45,000. Pending Cabinet’s decision with regards to a preferred option on the future of the Dome, to avoid the risk of reputational damage the above is hypothetical, as no event promoter or organiser has yet been contacted with a view to negotiating an alternative venue (which could offset some of the potential contractual cancellation costs). However, if the decision was taken now to close the Dome with effect from April 2009, there would be no contractual costs relating to cancellation of bookings, as to-date no bookings have been confirmed for 2009/2010. A decision should be made to coincide with the end of the 2008/2009 season to ensure no commitments are made for events to be held in 2009/2010.

·               Permanent staff member could take statutory redundancy if redeployment not successful which would result in a  ...  view the full minutes text for item 99