b Cabinet 22 March 2010 Black Cultural Archives Delivery Report All Wards Cabinet Portfolio: Report authorised by: Cabinet Member for Culture and Communities: Councillor Rachel Heywood Executive Director Adults’ and Community Services: Jo Cleary Executive summary This report up dates Cabinet on the progress made in delivering the Black Cultural Archives project, Raleigh Hall, Brixton, sets out the level of partnership investment required over a five year period from the Council and provides the likely timeline leading to the opening of the facility in 2011. Summary of financial implications The Council will need to provide a one off £100,000 capital allocation towards an overall capital project estimated at £4.67m in the 2011/12 financial year and this will need to be included within the service and finance planning process. The Council currently provides £97,000 revenue per annum towards the project and this will need to rise to £162,000 pa as set out in paragraph 5 of the report. Recommendations (1) To agree the joint applicant approach to the Heritage Lottery Fund. (2) To agree to provide a one off £100,000 capital allocation towards overall project costs, which will be reflected within the 2011/12 service and finance planning process, subject to a successful Heritage Lottery Fund application. (3) To agree to make available an additional corporate contribution of £20,000 pa over 5 years towards the Black Cultural Archives project, subject to a successful Heritage Lottery Fund application. (4) To agree in principle and subject to final contract for the Council to act as the developer for the delivery of the construction and fit out of Raleigh Hall building. (5) To agree upon completion of the construction and fit out phase to transfer Raleigh Hall to be transferred to Black Cultural Archives on a 99-year peppercorn agreement. (6) To delegate to the Chief Executive authority to finalise and agree all contractual matters for the delivery of the project in consultation with the Leader of theCouncil, Cabinet Member for Culture and Communities and the Cabinet Member for Finance and Resources.Consultation Name of consultee Department or Organisation Date sent Date response received Comments appear in report para: Internal Derrick Anderson Chief Executive 9/3/10 10/3/10 Throughout the report Jo Clearly Executive Director Adults’ and Community Services 9/3/10 10/3/10 Throughout the report Helen Charlesworth-May Divisional Director Strategy and Commissioning 9/3/10 10/3/10 Throughout the report Peter Jones Divisional Director Cultural Services 9/3/10 10/3/10 Throughout the report Maria Millwood Divisional Director Finance and Resources 9/3/10 10/3/10 Paragraph 5.2 Frank Higgins Chief Accountant, Corporate Resources 9/3/10 10/3/10 Paragraph 9 of the report Mike Dickens Head of Democratic and Legal Services 9/3/10 10/3/10 Paragraph 10 of the report Councillor Rachel Heywood Cabinet Member for Culture and Communities 9/3/10 10/3/10 Throughout the report External Paul Reid Director, Black Cultural Archives 9/3/10 10/3/10 Throughout the report Report history Decision type: Key decision: reason Non-Key Decision EITHER a) expenditure or savings of £500,000 or more OR/AND: b) proposal affects significantly two or more wards Authorised by Cabinet member: Date report drafted: Date report sent: Report deadline 10.03.10 08.03.10 10.03.10 01.03.10 Report no.: Report author and contact for queries: 402/09-10 John Kerridge, Assistant Director Active Communities, Adults’ and Communities Services Department. 020 7926 744 [email protected] Background documents Black Cultural Archives Business Plan 2010 - 2015 Appendices 1. Black Cultural Archives Business Plan 2010 – 2015EXEMPT FROM PUBLICATION PURSUANT TO SCHEDULE 12A TO THE 1972 LOCAL GOVERNMENT ACT Reason for Exemption from Disclosure The following appendix is exempt from disclosure by virtue of the following paragraph of Schedule 12A to the Local Government Act 1972: 3. Information relating to the financial or business affairs of a particular person. (Including the authority holding that information). 1. Appendix 2: Income and Expenditure ProjectionsBlack Cultural Archives Delivery Report 1. Context 1.1 In 2005 Council agreed to support the development of a purpose built Black Heritage Centre at Raleigh Hall, Windrush Square, Brixton and in October 2007 Cabinet formally approved the resources to assist project development. The facility will be built to national museum standards and will house an appropriate collection and archive the modern history of Black presence in the UK. 1.2 Since 2007, the Black Cultural Archives (BCA) and the London Borough of Lambeth have worked in partnership to develop this project and oversee applications to a variety of funding bodies including, Heritage Lottery Fund, London Development Agency, as well as several charitable trusts. 2. Proposals and reasons 2.1 In 2009 the project was awarded stage 1 approval through the Heritage Lottery Fund, which provided funding to enable the project to be developed further and in line with the requirements of the Heritage Lottery stage 2 application. Following the latest round of meetings with potential investors this report provides: • The Cabinet on progress made to date. • The overall cost schedule for the project. • The investment required from the Council over a five year period. • Estimated timeline leading to the project being operational. 2.2 This report will inform the final piece of the jigsaw, which is a joint application between the Black Cultural Archives and the London Borough of Lambeth to the Heritage Lottery Fund. 3. Business Plan 3.1 Attached at appendix 1 of this report is the business plan for the project, which was initially submitted to the Heritage Lottery Fund in November 2009 and has been subject to variations following discussions between stakeholders. 3.2 The business plan will no doubt continue to be developed to reflect circumstances and opportunities that may arise over the next five years, although we are confident to present the business plan to funding bodies for their assessment and decision. 4. Capital Investment 4.1 The capital costs for the construction and fit out of Raleigh Hall to nationally recognised museum standards is estimated at £4.7m. This report confirms, subject to final approval that the capital investment for the project is in place based on the following:Funding body Amount Heritage Lottery Fund £2.98m London Development Agency £1m Biffa Charitable Trust £500.000 Garfield Weston Charitable Trust £50.000 Foyle Charitable Trust £100.000 London Borough of Lambeth £100.000 Total £4.73m 5. Revenue 5.1 Over the life of the 5 year business plan the annual revenue requirements for the project are set out below: Revenue Plan 10-11 11-12 12-13 13-14 14-15 HLF £125,000 £185,000 £175,000 £65,000 £64,084 LBL £162,000 £162,000 £162,000 £162,000 £162,000 BCA trading 0 £39,867 £89,605 £104,030 £118,095 BCA fundraising £20,000 £106,100 £133,600 £214,600 £229,600 Totals £307,000 £492,967 £560,205 £545,630 £573,779 5.2 The Council currently invests £97,000 revenue pa, which is made up of £52,000 secondment and £45,000 grant. The recommendation within this report is to increase this revenue package to £162,000 pa as set out below, which consists of existing staffing resources being seconded to BCA, maintaining existing grant levels to BCA and growth of £20,000: Item Investment 1 full time secondment (Director Post) £52,000 pa 1 full time secondment (Fundraising Manager) £45,000 pa Cultural Services Grant £65,000 pa Total £162,000 pa 5.3 Provision for the secondments has been made within the Adults’ and Community Services Department (Active Communities Team) work plan. A growth of £20,000 pa will be required within the service and finance planning process to uplift the current cultural services grant. 5.4 The 2010/11 contribution for the £20,000 growth will be met from the Chief Executive budget with the remaining four year being made available through the 2011/12 service and financial planning process. 5.5 The Councils proposed contribution has been developed within the context of the 5 year business plan for Black Cultural Archives and remains static throughout, whilst the Heritage Lottery Fund revenue stream peaks during 2011-12 and tapers off by 2014-15. 5.6 It is proposed that Black Cultural Archives and London Borough of Lambeth, as joint applicants continue to explore the prospect of Heritage Lottery Fund maintaining their annual revenue contribution at the 2011-12 levels for theduration of the business plan, whilst the application is being finalised, assessed and determined. This will strengthen the foundations of the project during the 5 year business plan and enhance sustainability. Sustainability 5.7 The long term sustainability of the project and its road to self-sufficiency as a social enterprise is rooted in a robust and challenging business plan, strong leadership and good governance that does not breed complacency. The Black Cultural Archives project also provides opportunities to explore new models of public service delivery in partnership with Third Sector Organisations where the method of work goes beyond commissioning to one of co-production. 5.8 Within this model of co-production, which underpins First Class, the Lambeth Third Sector Investment Plan this project will need to draw resources from a variety of sources, including: • Donations from charitable and corporate sectors • Commissioned services from local authorities • Secondments from the public, heritage, academic and corporate sectors • Investment from other statutory partners • The establishment of an endowment fund to facilitate individual private donations 5.9 The Council will continue to work in partnership with Black Cultural Archives to secure the long term sustainability of the organisation beyond the term of the current business plan. 6. Agreement to Lease and Asset Transfer 6.1 The Council will be entering into an agreement to lease for the Raleigh Hall site with Black Cultural Archives, which meets the standard terms and conditions of the Heritage Lottery Fund. The agreement to lease will feature the following conditions: • The London Borough of Lambeth in sole receipt of Heritage Lottery Funds • The standard and specification of construction works for Raleigh Hall agreed between Black Cultural Archives, London Borough of Lambeth, London Development Agency and Heritage Lottery Fund. • The undertaking of the construction and fit out of Raleigh Hall to the specification agreed. • The transfer the Raleigh Hall site to Black Cultural Archives on a 99-year peppercorn rate.6.2 The terms and conditions of the agreement to lease will also require the building, once transferred to be used for the sole purpose of a Black Heritage Centre providing community benefit. 7. Delivery Structure 7.1 As a joint applicant to the Heritage Lottery Fund with Black Cultural Archives the Council will be required to enter into a contract for the delivery of the project. This will be subject to further negotiations and agreement once Heritage Lottery Fund has determined their response to the application. Whilst subject to final negotiation and contract this report sets out some of the terms this contract and delivery structure will contain: • The London Borough of Lambeth will be identified as the sole recipient of the award of grant from the Heritage Lottery Fund and drawdown the percentage established in the capital project budget. • The application of these funds will be solely for use in the Raleigh Hall project, including works required for the refurbishment and repair of the hall, construction of its annexe, payment of design/project management team fees and fit out costs, etc. • Where appropriate make claims to drawdown funds and recover all VAT for funds apportioned to the Council for the delivery of the project. • Identify where this project is located for the delivery of the construction and fit out phase and utilise existing design and project management teams. • Black Cultural Archives will transfer to the London Borough of Lambeth funds secured to meet the balance outstanding for the capital works after the Heritage Lottery Funds are taken into account. • The London Borough of Lambeth and Black Cultural Archives will need to agree to meet the terms of the grant contract and Approved Purposes of the project. 7.2 It is also noted that whilst the standard Heritage Lottery Fund contract does not provide any significant problems to the Council, the Heritage Lottery Fund may wish to place ‘special conditions’ into the contract, which the Council may find unacceptable and may result in the Council terminating its involvement in the project. 7.3 Taking into account the negotiations that will need to take place following a successful outcome to the joint application this report delegates the Chief Executive to finalise all contractual matters for the delivery of the project in consultation with the Leader of the Council, Cabinet Member for Culture and Communities and the Cabinet Member for Finance and Resources. 8. Managing Project Risk8.0 The two inherent risks for this type of project are delivery of the construction phase and income generation over the course of the five year business plan. Construction 8.1 The construction phase is estimated at £4.7m and the joint application to HLF contains a £300,000 contingency to allow for unforeseen costs. There has been no notable ‘inflation’ in construction costs, which is likely to remain stable given the current market conditions. There is also the option of utilising the proposed capital allocation from the Council (£100,000), which together provides adequate resource to manage risk. Subject to negotiations and final contract the Council is offering to undertake the role as the developer for the construction and fit out phase of the project. Fundraising 8.2 Fundraising consultants have been commissioned by Black Cultural Archives, who have scoped out opportunities and developed a fundraising plan for the project. A sensitivity plan has also been developed for the project, which enables management of situations if fundraising targets are not achieved. This includes reduction in operational times and staffing resources. One of the posts the Council is funding within the project is a full time Fundraising Manager. 8.3 As set out in paragraph 5.5 of this report the foundations for sustainability will be further enhanced for the project if the London Borough of Lambeth and Heritage Lottery Fund are able to agree a complementary profile to the revenue investment required for the project. 8.4 The key to addressing these risks is a need for strong leadership and governance for the project. The project has been in receipt of intense capacity building support and has strengthened its governance considerably since the projects initial concept. Clear and robust project management procedures are in place and a new Chair to the Board of Trustees was recently appointed following advertisement and interview. 8.5 The Chair of Trustees is Matthew Ryder, who has been a practicing barrister since 1992 and was appointed as Queens Counsel in 2009. He specialises in human rights, crime, regulatory law and other related fields. He has been involved in numerous high profile cases, some of which have been run alongside nationally recognised campaigns. These have included Lawrence v Commissioner of Police for the Metropolis (representing the parents of Stephen Lawrence). 8.6 The Chief Executive has instigated discussions between stakeholders concerning the continued sustainability of the project, which officers are currently exploring. These include: • Linkage with the continued redevelopment opportunities in and around the immediate locality.• Mainstreaming the Council’s core archive services alongside Black Cultural Archives. • The commissioning of public services delivery 9. Comments from Executive Director of Finance and Resources Capital 9.1 Subject to a successful Heritage Lottery Fund application the Council will be required to provide a one off £100,000 capital allocation towards an overall capital project estimated at £4.67m in the 2011/12 financial year. Revenue 9.2 Subject to a successful Heritage Lottery application the Council will be required to provide an additional corporate contribution of £20,000 pa for a five year period. Year 1 of this commitment will be made available via the Chief Executive and the remaining 4 years to be identified through the 2011/12 service and finance planning process. 9.3 The remaining revenue contributions required for the project will be met through existing budgets within the Adults’ and Community Services Department (Cultural Services Division and the Strategy and Commissioning Division). 10. Comments from Director of Legal and Democratic Services 10.1 By virtue of section 2, Local Government Act 2000, local authorities have the power to do anything which they consider is likely to achieve the promotion or improvement of the economic, social and environmental well-being of their area. This power may be exercised in relation to, or for the benefit of, the whole or any part of the authority's area or all or any persons resident or present in their area. 10.2 The section 2 power includes power for a local authority to, inter alia, give financial assistance to, enter into an agreement with, or provide staff, goods, services or accommodation to, any person. However, the well-being power does not enable the authority to raise money, nor to do anything which it is unable to do by virtue of any existing statutory prohibition, restriction or limitation on its powers. 11. Results of consultation 11. Black Cultural Archives have been consulted and their views have been represented in the body of the report. The project itself has been subject to public consultation, which has been utilised throughout the development stage to inform the shape and design of the project. 12. Organisational implications 12.1 Risk management:Paragraph 8 of the report sets out the high level risks and provides actions that have been taken to mitigate against them. 12.2 Equalities impact assessment: Whilst a specific Equalities Impact Assessment has not been taken out on the project it is highly accepted and reflected within the business plan that this project will deliver a positive contribution towards community cohesions of Lambeth and the wider populous. 12.3 Community safety implications: There is none. 12.4 Environmental implications: The project will be an important contribution to the continuing development of the Windrush Square environment. 12.5 Staffing and accommodation implications: The project will include the secondment of two members of staff from the Council to the Black Cultural Archives. The terms of this secondment will be subject to final agreement with Black Cultural Archives. 12.6 Any other implications: The project will benefit the borough as a visitor attraction for the 2012 London Olympic Games. 13. Timetable for implementation Activity Estimated Timeline Joint application finalised and submitted March 2010 Application assessed and determined by funding bodies, namely Heritage Lottery Fund and the London Development Agency March 2010 – June 2010. Final contracts signed June 2010 Construction work/fit out instigated August 2010 Construction work/fit out completed August 2011 Project operational and doors open November 2011