Agenda item

Minutes of meetings of

            The Director of Property and Projects submitted for the Committee’s consideration the undernoted report:

 

“1       Relevant Background Information

 

1.1      The SP&R Committee agreed at its meeting on the 21^st March 2014 to proceed to awarding the contract for the Design, Build, Operation and Maintenance of the Public Bike Share Scheme, subject to additional resources required for the capital construction being secured from DRD.

 

1.2      The development of a Public Bike Share scheme is identified as a partnership project in Belfast City Council’s Investment Programme 2012-2015. The primary objective of the Belfast Public Bike Share scheme is to provide a sustainable low cost transport system for the citizens of Belfast and for visitors as well as benefits such as improved health and reduced congestion.

 

1.3      Phase 1 of the Public Bike Share scheme aims to create a network of up to 30 docking stations supporting 300 bikes with associated infrastructure in the city centre to be implemented by March 2015.  The locations of the docking stations were agreed by the Development Committee on 19^th March 2013 and ratified in the Council meeting on 3^rd April 2014. 

 

2         Key Issues

 

2.1      Members were asked to note last month that the submission from the preferred bidder for Lot 1 to Design, Build, Operate and Maintain indicated that the capital cost for Phase 1 will be £1,140,000. The original Council grant award was £698,700 therefore indicating a deficit of £441,300.  

 

2.2      A supplementary application had however been made to DRD for an increase in grant support to cover the additional capital cost for Phase 1. DRD has considered the Council’s request for £441,303 further capital funding and in a letter to the Chief Executive on 10^th April 2014 they have confirmed that they will meet the full amount of the capital costs of the Public Bike Hire Scheme of £1,140,000.

 

2.2      Ownership of the proposed bike docking station sites (as listed in Appendix 1) falls into the following categories:

·        Private Ownership

·        Department of Social Development

·        Belfast City Council

·        Department of Regional Development, Road Service

 

2.3      Definitive locations will need to be agreed between the operator and the Council in line with the contract requirements for a total 30 no docking stations. 

 

           Legal Arrangements/Agreements

 

2.4      Sites in Private and DSD Ownership

           It is proposed that the Council shall take a licence of the lands required for the docking stations from private landowners and DSD. Whilst DSD assets are due to transfer to the Council in April 2015 under LGR the public bike hire scheme needs to be implemented by March 2015.  A Licence Agreement will therefore be required with DSD for the period pre LGR transfer.

 

2.5      The Licence Agreements will permit the Council to use and occupy the sites for the purpose of a Public Bike Share Scheme and the landowners contractual arrangements will be with the Council rather than with the Scheme Operator. This is the preferred approach insofar as it satisfies the landowners and provides the Council with control over the use and development of the sites. The terms of the licence are summarised as follows:

 

                                                    i.     A term of 6 years renewable for a further 3 years.

                                                  ii.     An option in favour of the Council to renew at the end of the 9^th year.

                                                 iii.     A licence fee of £1.00 per annum, if demanded and without review

                                                 iv.     Use restricted to bike docking stations only

                                                  v.     Council right to terminate

 

2.6      Following the grant of licences, the Council will enter into ‘back to back’ Agreements with the Operator in relation to the development, use and occupation of the bike docking station sites. These will be known as ‘Land Access Agreements’ by which the Operator is bound to perform the obligations imposed on the Council under the terms of the Licence and all development and operational rights will be conveyed to the Operator. In addition, the Land Access Agreements will indemnify the Council against any legal action arising out of the Operator’s use and occupation of the sites.

 

2.7      Sites in Council Ownership

 

           The Council shall grant a licence on BCC held sites to the Operator on similar terms and conditions as above.

 

2.8      Sites in DRD/Roads Service Ownership

 

           The DRD has confirmed that the construction and maintenance of bike share docking stations shall be by way of a Street Works Licence(s) to be granted by DRD to the Council. The Council will subsequently enter into Agreement(s) with the scheme Operator in relation to the installation, maintenance management and operation of the bike hire scheme on DRD lands. DRD has advised that this is permissible but the Council is not permitted to contract out off or assign its legal responsibility for any offences under the Street Works (NI) Order 1995.

 

2.9      However, the Council will protect its position by ensuring that the obligations imposed on the Council under the Street Works Licence are passed, as far as they can be, to the Scheme Operator. This will be achieved by a condition imposed on the Operator making compliance with the Street Works Licence and the relevant legislation a condition of the operational contract. Further, the Council shall have the right to terminate the Agreement in the event of a breach of the Street Works Licence. In addition, the Operator will be obliged to provide a warranty to the Council ensuring compliance with the Street Works Licence and the Council will be permitted to monitor the use and occupation of the lands.

 

3         Resource Implications

 

3.1      Financial

 

           The licence agreements are on the basis of a nil rental.  Capital and revenue financial implications were included in the report to the Strategic Policy & Resources Committee on 21 March 2014.  As noted above, DRD has now confirmed that they will meet the full amount of the capital costs of the Public Bike Hire Scheme of £1,140,000.

 

3.2      Human

 

           Staff resource from Estates, Urban Development and Legal Services required to progress the land access and licence agreements.

 

3.3      Assets

 

           Occupation of the docking station sites by way of the legal agreements as detailed above represents effective asset management. 

 

4         Equality and Good Relations Considerations

 

4.1      There are no equality or good relations implications connected with this report.

 

5         Recommendations

 

5.1     The Committee is asked to approve that the appropriate Licences, Land Access Agreements and Street Works Licences are entered into in relation to the Public Bike Share Scheme docking stations, as outlined above and subject to detailed terms being agreed by the Estates Manager and Legal Services. 

 

6         Key to Abbreviations

 

BCC – Belfast City Council

DRD – Department of Regional Development

DSD – Department of Social Development

 

Appendix 1 Schedule of Sites and Ownership

 

No	Area	Location	Ownership
1	City Hall	Footpath in front of City Hall, Donegall Sq North/West	DRD Roads Service
2	Victoria Square	Footpath Victoria Street close to the entrance Victoria Square Shopping Centre	DRD Roads Service
3	Custom House Square	Public open space on the east side of Donegall Quay, close to the Big Fish	DSD
4	Central Station	Mays Meadow, rear of Central Station	DRD Roads Service
5	St. George’s Market	Cromac Square	DRD Roads Service
6	Gasworks	Close to the entrance of the Gasworks at Cromac Street/Ormeau Road	BCC
7	Waterfront Hall	Open space area close to the entrance of the Waterfront Hall	DSD
8	Shaftesbury Square	Footpath at the corner Botanic Avenue/Donegall Pass	DRD Roads Service
9	Europa Bus Centre 1	Public open space at Blackstaff Square	DSD
10	Europa Bus Centre 2	Footpath Great Victoria Street/Hope Street	DRD Roads Service
11	Castlecourt	Footpath at the entrance to the Castlecourt Shopping Centre	DRD Roads Service
12	Smithfield	At Smithfield Market	DRD Roads Service
13	St. Anne’s Cathedral	Public space at Cathedral Gardens, close to the University of Ulster	BCC
14	St. Patrick’s Cathedral	Footpath at the corner Carrickhill/Donegall Street	DRD Roads Service
15	Yorkgate/City North	Only potential site, depending on future plans for contra-flow bus lane	DRD Roads Service
16	Dunbar Link	Footpath in the area Dunbar Link/Dunbar Street	DRD Roads Service
17	High Street	Open space North Street/Waring Street	Private
18	BBC/Dublin Road	Footpath at Bankmore Square	DSD
19	Wellington Place West	Traffic island on College Square East	DRD Roads Service
20	Millfield	Open space on the grounds of Belfast Met	Private
21	Odyssey Arena	Open space in front of Odyssey Arena	Private
22	Harbour	Open space at entrance of new Harbour development	Private
23	St. Malachy’s	Footpath opposite St. Malachy’s in Alfred Street	DRD Roads Service
24	Bradbury Place	Footpath at King William Park	DRD Roads Service

 

Note: definitive locations for 30no docking stations are to be agreed between the operator and the Council in line with contract requirements; any additional locations are likely to be on BCC, DSD or DRD land”

 

            The Committee adopted the recommendations.