Agenda item

            The Committee considered the undernoted report:

 

“1.0    Purpose of report

 

1.1    The Capital Programme is a rolling programme of investment which either improves existing Council facilities or provides new facilities. This report provides an update on –

 

§    Capital programme - Recent highlights since March 2013

 

§    proposed recommendations for movement between the Capital Programme stages

 

§    proposed new emerging projects

 

2.0    Relevant Background Information

 

         Capital Programme – Highlights since March 2013

 

2.1    There has been significant movement on the Capital Programme since its approval by SP&R Committee in March 2013. Many projects have progressed both on the ground and also in the necessary preparatory work required to deliver them. A number of projects have been completed including the £3m upgrade to the Mary Peter’s Track; the Mountain Bike Trail at Barnett Demesne and the new fuel station at Duncrue. Work is due to be completed this month on the £4m upgrades of Dunville and Woodvale Parks and the new Hammer pitch.

 

2.2    Work is also well underway on the new John Luke Bridge, which is due for completion in August. Phase 1 of the Connswater Community Greenway project restarted in May and work is underway to appoint a contractor for Phase 2 of the works. Work is due to start in July on the relocation of the Belfast Welcome Centre which is due to open later this year. Preparatory work is also well advanced for a wide range of projects including new pitches and changing facilities under Phase 1 of the Pitches Strategy and the new pitch at Marrowbone and design consultants have been appointed for the Waterfront.   Members are asked to note that Corporate Communications are working on a calendar of events to ensure that the media opportunities around each of these projects is maximised.

 

         Rolling Capital Programme 2013/14 onwards

 

2.3    Members have agreed that all capital projects must go through a Stage process where decisions on which projects progress are taken by SP&R. This provides assurance as to the level of financial control and will allow Members to properly consider the opportunity costs of approving one capital project over another capital project. Importantly it will also enable Members to focus on delivering the projects which can have maximum benefits and investment return for the city and local areas.

 

2.4    Members are aware that the Capital Programme (as agreed by Committee on 22nd March 2013) has been reconfigured to reflect the 3 approval stages as agreed –

 

§Committed projects (Stage 3) - projects which have completed a Full Business Case (FBC) and where approval has been obtained by SP&R to proceed to tender. These projects will either be at the tender preparation stage (Stage 3 – Tier 1), construction stage (Stage 3 – Tier 2) or completed (Stage 3 - Tier 3). 

 

§Uncommitted projects (Stage 2) –projects where an SOC has been agreed by Committee and work on the project is being progressed through the development of an Outline Business Case (OBC), but they have not yet been developed to a stage where permission could be sought from SP&R to proceed to tender. 

 

§Emerging proposals (Stage 1) –proposals which require completion of a Strategic Outline Case (SOC) before they could be considered further by SP&R Committee.

 

         KEY ISSUES

 

   Capital Programme – Proposed movements – Projects

   recommended to move up a Stage  

 

2.5    It is proposed that the projects outlined in Table 1 below are advanced to Stage 3 – Committed projects. Members are asked to note that with the exception of the Suffolk Changing Pavilion all of these projects are subject to external funding. The timescales for funding, particularly for those which are seeking timebound EU funding, is extremely tight.  The Zoo

 

         Playground must be delivered by March 2014 while the EU funded projects (Girdwood, Waterfront, Innovation Centre, North Foreshore and the Creative Hub) must all be completed by 2015.  The public bike hire scheme must also be completed by 2015.

 

2.6    Members are asked to note that the majority of these projects have not yet received Letters of Offer (LOO). However, in order to meet the tight deadlines and avail of the potential funding, it is necessary for these to proceed to tender preparation stage.  As Members are aware preparing tender documentation and progressing this can be time consuming with procurement exercises taking on average 3-6months depending on the scale of the project.  This may also lengthen if there are challenges to the procurement exercise. However Members are asked to note that NO CONTRACTS for these projects will be awarded until a letter of offer is in place, the terms and conditions for funding have been agreed by Legal Services or that any other outstanding issues have been resolved. 

 

2.7    Essentially these projects will remain ‘at risk’ until all these issues have been signed off. Due to this, it is recommended that a further Tier is added under Stage 3 – Committed projects (Stage 3 – Tier 0 – Schemes at risk). This will include schemes which are still awaiting letters of offer from funders (i.e. ERDF/Peace III applications) but that need to be progressed to tender preparation stage in order to meet tight funding deadlines. This also includes projects which have other issues still to be resolved - i.e. public bike hire and agreement over where and how the ongoing revenue costs for the project will be secured and the Zoo Playground where the projected costs are over the letter of offer amount and which will require a reduction in specification to ensure that it comes in on the costs estimated.  As outlined no contracts will be let for these projects until letters of offer are in place or all outstanding issues have been resolved.  Members will be kept updated when letters of offer etc. are received for these projects.

 

2.8    Table 1 – Proposed Movements from Stage 2 – Uncommitted to Stage 3 - Committed

 

 

2.9    Members are asked to note that the costs cited are pre-tender estimates only at this stage. These costs will be challenged and assessed at the tender preparation stage. Any significant changes to these figures will be brought back to Committee. 

 

2.10  Members are asked to note that the scope of the Suffolk Pavilion project has increased since this was first proposed following further consultation and work on the specification. This change in scope is to enable the facilities to meet intermediate league football standards, allow for a reception room and ensure disability access.  Members will also note that at 2.13 below one of the proposed emerging projects is for the wider Suffolk site.  Importantly this project also allows for 2 modular buildings which are flexible and can be re-located if needed as future plans for the site develop. On the basis of the rescoped project it is estimated that the costs will be £185,000.

 

2.11  Members will recall that they agreed in January 2012 that the Girdwood Community Hub project would progress ‘at risk’ and that £250,000 was allocated towards this project in order to progress the design to meet the tight Peace III deadlines. The Council has continued to work at risk on this project to progress it to a level where it is ready to commence as soon as possible after a Letter of Offer is received from SEUPB in order to ensure successful delivery of the Hub.  This will now require design up to RIBA Stage E and to facilitate this it is recommended that an additional £150,000 is allocated to this project.  Members are asked to note that the costs for this project have that these covers will be recovered if a Letter of Offer is received.

 

2.12  The Director of Finance & Resources has confirmed that these projects are within the affordability limits of the Council on the proviso that no contracts are awarded until letters of offer are received and all outstanding issues in relation to business cases have been agreed.

 

         Projects recommended to be added to the Capital Programme

 

2.13  It is proposed that the following projects are added to the Capital Programme Stage 1 – Emerging Projects. These projects will all require the completion of a Strategic Outline Case (SOC) before they are progressed. Members will acknowledge that there is increasing demand on the Council to deliver projects within increasingly scarce financial resources.  Members will also be aware that the Council is commencing an ambitious leisure transformation programme. Due to the scale of investment required this will have implications on future project delivery and will necessitate prioritisation of projects under the capital programme.  Members are therefore asked to take this into consideration when making investment decisions around projects.

 

Proposed Project	Overview	Proposed through
Tamar Street	Members will be aware that the Council owns land in Tamar Street off the Newtownards Rd. There is a modular building on part of the land which was previously leased by the Scout Association. The building is in a bad state of repair. Consequently in April 2012, the SP&R Committee agreed to accept a surrender of the lease from the Scouts and   approved the demolition and removal of the building. The site is designated as ‘white land’ under BMAP and, as such, is free from constraint and might be suitable for development, subject to normal development control considerations.  The Council also owns adjoining land and this may facilitate a wider development of the whole site. The building has not yet been demolished. The East Area Working Group have since been approached by a group who wish to investigate using the modular building on the site.  Members are asked to note that there will be capital implications to bring the modular building back into a fit standard.  The approx cost of this work is £50,000.  This will limit the future use of the site and constrain future development	East Area Working Group
Boxing Statues	To erect a statue of a celebrated local boxer in each of Dunville Park (John Cadwell), Woodvale Park (boxer to be agreed) and Cathedral Gardens (‘Rinty’ Monaghan) to acknowledge the valuable contribution which boxing had made to the city.  The proposal originated from the Belfast Boxing Ring which was established in 2010, with the aim of celebrating the rich and shared history of boxing, both amateur and professional, across communities in the city. Members are asked to note that Cathedral Gardens itself is an Emerging project on the capital programme list.	Parks & Leisure Committee
Suffolk site	Proposal to purchase the school site and open up access to the wider community to the existing pitches and to look at options for the wider site.  Links to the Suffolk Pavilion project as outlined in 2.10 above	West Area Working Group

 

         Updates on capital projects

 

         Approval to go to tender  

 

2.14  Approval is sought from Committee to advance the projects under the pitches strategy and Roselawn Site Development (Section Y) to the invitation of tenders, to be awarded on the basis of most economically advantageous tenders received and full commitment to deliver with authority delegated to the Director of Property & Projects.  

 

3.0    Recommendations

 

3.1    Members are asked to note the contents of this report and

 

·  agree if they wish to progress the projects as outlined in Table 1 (2.8 above) to move from Stage 2 -Uncommitted to Stage 3 – Committed in the capital programme and if so, agree that these projects are advanced to the invitation of tenders, to be awarded on the basis of most economically advantageous tenders received and full commitment to deliver.  Members are asked to note however the tight funding deadlines for the majority of these projects and that NO contracts for these projects will be let until letters of offer are received, the terms and conditions are agreed by Legal Services or other outstanding issues in relation to projects are satisfactorily resolved

 

·  approve the change in scope of the Suffolk Pavilion project

 

·  approve an additional allocation of £150,000 ‘at risk’ towards the Girdwood Hub project prior to confirmation of funding in order to progress design work and ensure this project is ready for tender to meet the tight timescales for EU Peace III funding.  Members are asked to note that the costs of the project have not increased and this money can be recovered if a Letter of Offer is received

 

·  agree if they wish the proposed new projects as outlined in 2.13 to be added as Stage 1 – Emerging projects

 

·  agree that the projects under the pitches strategy and Roselawn Site Development (Section Y) are advanced to to the invitation of tenders, to be awarded on the basis of most economically advantageous tenders received with authority delegated to the Director of Property & Projects.”

 

            The Committee adopted the recommendations.