Minutes:
The Committee considered the undernoted report:
“1 Relevant Background Information
1.1 At its meeting in April 2012, the Strategic Policy & Resources Committee agreed to convene Area Working Groups (AWGs) to support effective ‘place-shaping’ and make recommendations on investment decisions for their local area including the Local Investment Fund and the Feasibility Fund.
1.2 The Local Investment Fund was established to support the delivery of key local regeneration projects in neighbourhoods and as a means for Members to connect with local communities in their area, in preparation for their formal role in community planning under the RPA. SP&R Committee agreed on 23 March 2012 that there was a minimum level of investment through LIF of no less than £15,000 and unlikely to exceed £250,000 to ensure focus on more local investments and the opportunity for a broad spread of investment across the city. North, South, East and West AWGs were allocated £1,127,500 each, with a proportionate amount of £490,000 for the Shankill area.
1.3 The Area Working Groups held their first meetings in June 2012 and each AWG has met on at least a monthly basis since this time. As part of this process, 58 Local Investment Fund project proposals have been recommended for funding by the AWGs and been approved in principle for funding by Strategic Policy & Resources.
2.0 Key Issues
LIF Processes and Governance
2.1 Members will recall that they approved in September 2012 the governance arrangements, including the financial governance, for LIF. Members are asked to note that detailed processes have been established for each stage of LIF. These include –
§ Stage 1 – the project proposal stage – up until the project has been approved in principle for funding by SP&R or been rejected at this Stage by the AWG
§ Stage 2 – the due-diligence process - an in-depth scrutiny of the project proposal forms which have been recommended for funding by SP&R
§ Stage 3 – the delivery process – the project delivery method and who will undertake delivery
§ Stage 4 – the payment process.
2.2 Members will be aware that the Council has a duty to ensure public money is spent wisely and the Council’s investment is properly protected. In order to ensure this, a thorough due-diligence process has been established and each project proposal is subject to this process. The first step in the due-diligence process is that projects which have been approved in principle to receive funding are written out to and asked to provide written confirmation and clarification of issues identified or detailed information that remains outstanding. A due-diligence checklist has been developed in order to ensure that the Council captures all the information that it needs in order to properly and rigorously scrutinise proposals. Information that needs to be provided includes:
Legal provision to support the proposal – Vires
Capacity to deliver the proposed project and approach including timescales
Governance: constitution; appropriate policies; minutes of Board meeting to confirm grant application
Security of tenure: confirmation of ownership and/or permission to carry out the proposed works and occupy the land
Proposed approach to procurement
Financial: dedicated bank account; audited accounts; insurance cover; VAT eligibility; evidence of match funding offer(s); contract documentation and any conditions attached to partner funding; approach to payment and process identified
Statutory consents: site plan; details of site appraisal; confirmation of planning permission; building control approval; adherence to Construction (Design and Management) Regulations 2007
Sustainability: whole life costs; community use plan; maintenance plans; business plan/project management plan/marketing plan
Accessibility and secured community access
Equality/good relations screening
Any other supporting evidence e.g. topographical surveys, contaminated land surveys
The due-diligence process ensures that the support is eligible under the Local Government Finance Act 2011 and the Local Government Accounts and Audit Regulations (Northern Ireland) 2006.
2.3 At this stage 53 of the recommended project proposals have been written out to as part of the due-diligence process. The other letters are due to be sent out shortly. Members are asked to note that the Project Sponsor who worked with the Group from the proposal stage also works with the Group throughout the due-diligence stage. This provides continuity to the Groups and ensures that an iterative process of seeking information can be maintained.
2.4 The information that is provided by Groups is then scrutinised by a Due-Diligence working group, which meets on a weekly basis, which has been set up to oversee this process. This Group, which is chaired by the Head of Contracts, is comprised of officers from across the Council with relevant disciplines (legal, financial, estates, project management). Members are asked to note that NO project proposal will receive a Letter of Offer or Funding Agreement before all due-diligence information is received and has been signed off by each individual section (Property & Projects, Legal Services, Estates, Urban development Unit and Financial Services) as being satisfactory and meeting all requirements.
2.5 Members will be aware that some of the projects which were proposed for funding under LIF were at a more advanced state of readiness than others. At this stage in-depth information has been received in relation to 8 project proposals. It is anticipated that a number of these will be signed off in the coming weeks by the Due-Diligence Group. These will then be passed to Legal Services to draft the Letters of Offer and the individual Funding Agreements. Each project proposal will have standard Terms and Conditions which will be outlined in their funding agreement as well as specific conditions relating to their own unique project. The remaining 48 projects are being work through systematically with the projects officers and updates will be given as required at the respective Area Working Groups.
2.6 A detailed payment process, similar to those which have been established for other Council funding streams, has been established by Financial Services and Property and Projects. The final letters of offer will issued by the Director of Finance. Members are asked to note that no payments will be made to project promoters until the Letter of Offer and Funding Agreements are signed by both parties. As part of this process the Council has put in place a series of checks and balances to ensure that the money which has been issued by the Council has been used for the purpose for which it was approved. Clawback procedures proportionate to the funding offer will be put in place.
2.7 Members are asked to note that in the case of projects which have been approved for funding in principle, subject to match funding being found (either within 12months or 18 months), the period of time for match funding being secured will commence from when the Letter of Offer is sent out by the Council.
2.8 Members will be kept up to date on the progress of the due diligence process in respect of project proposals through the Area Working Groups on a regular basis going forward
Delivery Mechanism
2.9 At the due-diligence stage confirmation is also sought in relation to the anticipated project delivery method and who will be appointed to undertake delivery, including whether there is any anticipated support needed from the Council. At this stage of the due-diligence process 8 projects have been identified that will potentially be delivered by the Council.
February AWG Recommendations on LIF proposals
2.10 At the most recent round of AWG meetings, officers updated Members on the external meetings they have facilitated on the LIF proposals. In accordance with Council procedures, individual Members declared any conflicts of interest and this was noted in the minutes of the AWG. Members are asked to note that only the South and East AWGs have met in time for the preparation of this report and put forward project recommendations. On the basis of the information presented, the South and East AWGs have made the following recommendations for the consideration of the Committee:
East AWG
2.11 The East AWG considered the potential for feasibility support and recommends to the SP&R the following as a feasibility project:
|
Project |
Ref No. |
Comments |
|
Constance Street Community House |
ELIF021 |
Feasibility study |
On the basis of the information presented, the East AWG also made the following recommendation for the consideration of the SP&R Committee:
|
Proposal |
Ref No. |
Up to £ |
AWG Comments |
|
Community Garden Tildarg Street |
ELIF022 |
£15,000 |
South AWG
2.12 The South AWG confirmed support and recommend to the SP&R the following as a feasibility project:
|
Project |
Ref No. |
Comments |
|
Tonnta / SOLAS |
SLIF053 |
Feasibility study |
|
South Belfast Sure Start (Markets) |
SLIF056 |
Feasibility study |
On the basis of the information presented, the South AWG also made the following recommendation for the consideration of the SP&R Committee:
|
Proposal |
Ref No. |
Up to £ |
AWG Comments |
|
South Belfast Sure Start (Markets) |
SLIF056 |
£150,000 |
Subject to match funding being obtained |
Review of the role of Area Working Groups
2.13 Members have enthusiastically embraced the potential presented by local area working. This is an evolving process and when the Area Working Groups were first established it was agreed that their role and remit should be kept under regular review. Given that the AWGs are now well established and that most of the AWGs have committed their full allocation of Local Investment Funding at this stage, it is recommended that the terms of reference for the AWGs are reviewed to ensure that they can continue to best facilitate the shared political ambition to deliver change at a local level. This will be undertaken in parallel with, and link to, the ongoing work which is being taken forward by Jon Huish on Member development and review of the Council’s governance.
2.14 With the first draft of SIF Area Plans now published it is important that Area Working Groups begin to address overall plans for their area.
To this end further work is intended with Jon Huish to agree comprehensive area plans that link to an overall community plan and includes high level outcomes together with practical on the ground projects.
3 Resource Implications
3.1 Human – Resources are currently allocated to individual projects
3.2 Financial – Proposed allocations as outlined in the report and summary detailed below:
|
AWG |
(A) LIF Allocation |
Amount allocated June 12- Jan 13 (B) |
Proposals in this report (C) |
(D) Projected Allocation (b) + (c) |
Remaining amount (A) – (D) |
|
East |
£1,127,500 |
£860,852 |
£15,000 |
£875,852 |
£251,648 |
|
South |
£1,127,500 |
£874,541.40 |
£150,000 |
£1,024,541.40 |
£102,958.60 |
|
West |
£1,127,500 |
£1,127,500 |
- |
£1,127,500 |
£0 |
|
North |
£1,127,500 |
£1,127,500 |
- |
£1,127,500 |
£0 |
|
Shankill |
£490,000 |
£438,000 |
- |
£438,000 |
£52,000 |
|
TOTAL |
£5,000,000 |
£4,428,393.40 |
£300,000 |
£4,728,393.40 |
£271,606.60 |
4 Equality and Good Relations Considerations
4.1 The overall LIF programme will be screened at regular intervals to ensure that the Council is fulfilling its obligations as part of the Equality Scheme as well as ensuring that it is in line with the Investment Programme’s underpinning principles related to good relations and balanced investment.
5 Recommendations
5.1 The Committee is asked to note the contents of this report and
- Note the thorough due diligence process which is being carried out on each LIF project proposal
- Approve in principle the allocation of Local Investment Funding as proposed by the South and East Area Working Groups
- Approve that a review of the Terms of Reference for the AWGs is undertaken in order to continue to ensure that the AWGs can best facilitate the shared political ambition to deliver change at a local level and begin to finalise area plans.”
The Director of Property and Projects advised that the West Area Working Group had previously agreed to support the Rossa Park Project in full. However, at its last meeting it had considered a revised scheme at Phase 1, including the modernisation and refurbishment of the existing structure and had agreed to support the revised scheme in the sum of £80,000 and be recommended accordingly.
The Committee adopted the recommendations.
Supporting documents: