Minutes:
The Committee considered the undernoted report in relation to the Connswater Community Greenway:
“Relevant background information
The Connswater Community Greenway/Flood Alleviation Scheme (CCG/FAS) is a project jointly funded by the BIG lottery fund, Department for Social Development, Rivers Agency and Belfast City Council. The project will create a 16km walkway along the Knock, Loop and Connswater rivers in East Belfast from the Castlereagh Hills to Belfast Lough. Planned works on flood alleviation will be carried out by Rivers Agency in a joint contract thus realising savings on individual contracts and preventing nugatory works. The scheme will pass through a number of the Council parks and open spaces ie Orangefield Park, Dixon Playing Fields, Loop Play Area, Flora Street Walkway, Victoria Park etc and will include a number of upgrades and enhancements of sports and play facilities. In addition there will be new public art pieces, tourist trails and a number of upgraded public spaces currently in a poor state of repair.
To date the project has been led by the East Belfast Partnership as the recipient of the lottery offer with the Council playing the major role in terms of land assembly, design and procurement input and undertaking to manage and maintain the completed scheme for 40 years which was a condition of grant.
Key Issues
1. BIG Lottery Fund Letter of Offer
Earlier this year given the potential cash flow risk of this major project to the East Belfast Partnership Board, at their request and with the support of the other funders, Council was asked to accept the role of employer subject to BIG lottery agreement.
The Council agreed to accept the role and have worked up agreements with the East Belfast Partnership Board and other funders that reflect the continuing ‘co production’ of this scheme with the community but at the same time make clear the Council’s employer role and the risk manager.
As the employer under the contract, the existing grants held by the East Belfast Partnership Board need to be transferred to the Council.
The BIG Lottery Fund (BIG) have now agreed to the Council becoming the employer and the Assistant Chief Executive has received a letter from BIG confirming this. The letter asks the Council to sign a Transfer Agreement to formally transfer the grant to the Council. BIG have agreed to fund the project to the sum of £22,723,240. This is essentially an assignment of the existing grant on the same terms as were offered to the East Belfast Partnership Board including the management and maintenance of the scheme for a 40 year period which the Council has already signed up to. The Transfer Agreement must be signed and returned to BIG by 8 October and authority is sought for the Chief Executive to sign the document on the Council’s behalf.
2. Land Issues
An area of land at ConnswaterRetail Park consisting of 0.793 acres has been identified as being required for the Connswater Community Greenway. Council officials have agreed to take a lease of the area subject to the following terms:
Term: 99 years from 1/1/2011
Premium: £40,000 with an annual rent of 5p if demanded.
Repair/Maintenance: Council to be wholly responsible for the upgrade, renewal, repair and maintenance of the demised area together with fixtures and fittings thereon.
Use: Creation of public paths and associated landscaping.
3. Works Tender
Members will be aware that a tendering exercise was commenced earlier this year. Completed bids were received from six consortia by the tender return date of 9 July. Since then a rigorous and robust tender assessment exercise has been ongoing involving McAdam Design the employers agent, Central Procurement Directorate and Council staff.
The most economically advantageous tender has been received from SIAC/Galliford Try and has been accepted by the Project Management Team on behalf of the East Belfast Partnership Board, following a presentation from McAdam Design and CPD. The tender price is £20,026,310.00 which is below the pre tender costs and to some extent reflects current market conditions.
Council officers have asked that all funders keep to their current funding commitments despite the low tender price until final project outturn costs are known. The aim of this request is to ensure sufficient funds remain within the project to mitigate any potential claims, ensure highest quality to defer ongoing maintenance costs, address some pre tender omissions and deal with any additional issues. The BIG letter of offer commits all their monies and Council Officers have sought similar assurances from the Department of Social Development.
The Committee is asked to agree this approach to the tender so that the East Belfast Partnership Board can issue results and begin debriefs from 28 September. An alcatel period during which all substantive challenges must be considered then runs from 28 September to 8 October in accordance with EU procurement legislation.
Provided there are no substantive challenges it is anticipated that East Belfast Partnership Board will award the contract after the 11 October and shortly after the Council will become the employer and take ownership of the contract.
Resources Implications
Financial
This proposal requires expenditure of £40,000 to acquire the land plus reasonable professional and legal fees.
The purchase costs for all of the land required for the Connswater Community Greenway are included in the Connswater Community Greenway budget of the City Investment Fund and there will be no additional cost to Council.
Human Resources
No additional human resources required.
Asset and Other Implications
The additional land will form part of the Connswater Community Greenway which when complete will be managed and maintained by the Council.
Recommendations & Decisions
It is recommended Committee agree:
(i) to the Chief Executive signing the BIG letter of offer
(ii) to purchase by way of lease the lands outlined
(iii)to accept the tender and process as outlined in the report.”
The Committee adopted the recommendations.
Meeting with Ministers
Arising out of discussion in the matter, the Committee agreed that meetings be sought with the Ministers for the Department of Social Development, Regional Development and Agriculture and Rural Development in relation to the schemes at the Woodvale and Dunville Parks, the flood alleviation scheme at the Connswater Community Greenway and other relevant capital schemes.
Supporting documents: