Agenda item

            The Committee considered the following report:

“1.0      Purpose of Report or Summary of Main Issues

1.1       The Council’s Physical Programme currently includes over 400 capital projects via a range of internal and external funding streams, together with projects which the Council delivers on behalf of external agencies. The Council’s Capital Programme forms part of the Physical Programme and is a rolling programme of investment which either improves existing Council facilities or provides new facilities. This report includes stage movement requests relating to the Capital Programme, an update on Peace IV capital projects and an update on letters of offer received.

2.0       Recommendations

2.1       The Committee is requested to consider the following items on the Capital Programme:

·        IT Programme – F5 Access Policy Manager Project / Web Application Firewall - Agree that this project is moved to Stage 3 – Committed and agree that the necessary procurement processes (including the invitation of tenders and/or the use of appropriate ‘framework’ arrangements) be initiated with contract to be awarded on the basis of most economically advantageous tenders received and full commitment to deliver.

·        HWRCs and Civic Amenity Sites - Containers –Agree that this project is moved to Stage 3 – Committed and agree that the necessary procurement processes (including the invitation of tenders and/or the use of appropriate ‘framework’ arrangements) be initiated with contract to be awarded on the basis of the most economically advantageous tenders received and full commitment to deliver.

·        Update on PEACE IV Capital Projects - Note the status of Black Mountain Shared Space Project and Shankill Shared Women’s Centre and the challenging issues and risks presented in paragraph 3.5.

·        Externally Funded Projects - Agree that necessary procurement processes (including the invitation of tenders and/or the use of appropriate ‘framework’ arrangements) be initiated for any Physical Programme projects including externally funded projects as required, with contracts to be awarded on the basis of most economically advantageous tenders received and full commitment to deliver.

3.0       Main Report

            Capital Programme 

3.1       Members will be aware that the Council runs a substantial Physical Programme which includes the rolling Capital Programme – a multimillion regeneration programme of investment across the city which improves existing Council assets or provides new council facilities. The Council also delivers externally focused funding streams such as Belfast Investment Fund (BIF), Local Investment Fund (LIF), Social Outcomes Fund (SOF) and Neighbourhood Regeneration Fund (NRF), as well as numerous capital programmes that we deliver for central government. Our funding partners include National Lottery Heritage Fund, SEUPB Peace IV, the Executive Office, DfC, DfI via the Blue Green Infrastructure Fund and Living with Water Programme, DAERA, Ulster Garden Villages, Levelling Up Fund (LUF) and others. When appropriate, the Physical Programmes Department is happy to arrange site visits to any projects that have been completed.

3.2       Members agreed that all capital projects must go through a three-stage process where decisions on which capital projects progress are taken by the Committee. 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. The Committee is asked to note the following activity on the Capital Programme:

            Proposed Stage Movement – F5 Access Policy Manager Project/ Web Application Firewall

3.3       Under the Council’s IT Programme, this project has been identified as being business critical which will replace existing but end of life devices and services. The project includes two modules of the F5 security suite, the F5 Access Policy Manager (APM) and the Web Application Firewall (WAF). The first module provides a VPN service for suppliers to work on network servers and for Council staff to access the network in the event of an issue with the Global Protect service. The second Web Application Firewall (WAF) module provides protection to the Council’s websites and online forms from attackers attacking the application. This project aims to continue provide remote connections to suppliers and for some applications, protect the Council against internet based cyber attacks and continue to host the digital certificates for the encryption of website traffic.

            The Committee is asked to recommend that the F5 Access Policy Manager/ Web Application Firewall project now progresses to Stage 3 – Committed and that it is held at Tier 0 – Scheme at Risk pending further development of the project and a satisfactory tender return. An update will be brought back to the Committee at this stage along with the final budget allocation and confirmation that this is within the affordability limits of the Council. Members are asked to agree that necessary procurement processes (including the invitation of tenders and/or the use of appropriate ‘framework’ arrangements) be initiated with contract to be awarded on the basis of most economically advantageous tenders received and full commitment to deliver.

            Proposed stage movement – HWRC and Civic Amenity Sites - Containers (Compactors and Skips)

3.4       Members will recall that, in August 2023, this project was moved to Stage 2 – Uncommitted on the Capital Programme, with the requirement that an Outline Business Case will be worked up, with further detail to be brought back to Committee. Members are advised that the OBC has been completed and satisfactorily reviewed. The provision of Household Waste Recycling Centres/Civic Amenity sites is a statutory obligation on the Council, contained within article 25 of the Waste and Contaminated Land (Northern Ireland) Order 1997. The network of Household Waste Recycling Centres (HWRCs) and Civic Amenity Sites (CAS) is an essential business unit within the Resources & Fleet Service. Residents can deposit a significant range of large bulky items for re-use and/or recycling at the sites. The sites accept around 30,000 tonnes of waste per annum and account for almost 25% of the total tonnage of household recycling captured during the year. The provision of fit for purpose equipment (compactors & skips) will assist in achieving the key objectives, namely; maintaining efficient and effective site operations which meet strategic and statutory targets for landfill diversion and recycling; reduced Health and Safety risk associated with the sites and any potential liability arising from this equipment; maintaining customer service – recycling centre availability and capacity; and avoidance of additional costs in respect of the need to hire the containers.

            The Committee is asked to recommend that the HWRC and CAS Containers project now progresses to Stage 3 – Committed and that it is held at Tier 0 – Scheme at Risk pending further development of the project and a satisfactory tender return. An update will be brought back to Committee at this stage along with the final budget allocation and confirmation that this is within the affordability limits of the Council. The Committee is asked to agree that necessary procurement processes (including the invitation of tenders and/or the use of appropriate ‘framework’ arrangements) be initiated with contract to be awarded on the basis of most economically advantageous tenders received and full commitment to deliver.

            PEACE IV Capital Projects

3.4       Members will recall that the Committee has expressed strong support for both Peace IV Capital Projects - Black Mountain Shared Space Project and Shankill Women’s Centre - noting that this would constitute a potentially significant investment of up to €12.5m in the area which will build on the funding already secured under the Peace IV Local Action Plan for the Forth Meadow Community Greenway project and that it would also mark a significant further step towards the realisation of the ‘Peace Corridor’ stretching from Black Mountain to the city centre. On this basis the Council agreed to sign both letters of offer and progress with each project.

Black Mountain Shared Space Project – Phase 1

3.6       Members will be aware that as lead partner for the above project, the Council is effectively required to act as guarantor for the project including meeting any potential deficit in Capital Financing, as well as any ongoing revenue deficit. A potential funding deficit of £1,473,994 was reported to SP&R Committee in October 2022. The project timeframe has been extended out to December 2023 by SEUPB however this extension was within existing parameters and does not mitigate against delays caused by Covid 19, nor recent inflation rises. The capital build has always been programmed to complete in March 2024 and this remains the projection, with programming to be delivered afterwards as part of a ‘grace period’ requested by SEUPB. The Council has proposed this ‘grace period’ runs up until 28th June 2024 for completion of the physical build and associated monitoring. Officers have continued to explore any and all options possible with SEUPB to safeguard the Peace IV funding beyond the deadline date, including an extension to the claim deadline, a letter of guarantee, escrow and an advance payment bond. All these proposals were rejected by SEUPB in September 2023 due to Programme Rules. Officers will remain in contact with SEUPB to put forward any other potential solutions over the coming months.

            Shankill Shared Women’s Centre

3.7       The Committee is asked to note that the project is proceeding on site and has encountered significant cost increases directly related to inflationary pressures. This has been formally raised with SEUPB with a view to the funder meeting the additional costs. A response is awaited and the Committee will be updated accordingly.

            The Committee is asked to note the status of Black Mountain Shared Space Project and Shankill Shared Women’s Centre and the challenging issues and risks presented, with a further update to be brought back to Committee in due course.

            Externally Funded Projects

3.8       The Committee is asked to note that capital project letters of offer and amended letters of offer have now been received for a number of projects where the Council is acting as the delivery agent. Amended letters of offer are commonly received to reflect minor adjustments required following tender returns. Several of these projects are match funded by the Council, either under the various funding streams i.e. LIF/BIF/SOF or through close alignment with ongoing Council initiatives. The Committee is asked to agree that necessary procurement processes (including the invitation of tenders and/or the use of appropriate ‘framework’ arrangements) be initiated for any Physical Programme projects including externally funded projects as required, with contracts to be awarded on the basis of most economically advantageous tenders received and full commitment to deliver.

            Financial and Resource Implications

3.9       Financial – PEACEIV to be met within existing budgets and Council resources

            Resources – Officer time to deliver as required

            Equality or Good Relations Implications/ Rural Needs Assessment

3.10      All capital projects are screened as part of the stage approval process.”

            The Committee adopted the recommendations contained within the report and noted, in response to concerns which had been raised by Members around the challenging issues and risks associated with the Black Mountain Shared Space and the Shankill Shared Women’s Centre projects highlighted therein, that the Chief Executive would keep the Party Group Leaders apprised of his ongoing discussions with the Special EU Programmes Body and would seek to hold a special meeting of the Committee/Council, should the need arise.

            (Alderman McCoubrey and Councillor M. Donnelly declared an interest as soon as reference had been made to the Black Mountain Shared Space project, on the basis that they were on the Board of that organisation and left the meeting for the duration of the discussion.)