Agenda item

            The Committee considered the undernoted report:

 

“1.0     Relevant Background Information

 

1.1       In May 2014 the Department of the Environment issued to all Councils, a Departmental Direction and Guidance in relation to the introduction of expenditure controls for the period during which the 11 new councils will operate in shadow form.

 

2.0       Key Issues

 

2.1       The Departmental Direction is made under Section 10 of the Local Government (Miscellaneous Provisions) Act (Northern Ireland) 2010 and states that existing councils may not, without the written consent of the new council:-

 

(a)   make any disposal of land, if the consideration for disposal exceeds £100,000;

(b)   enter into any capital contract where

ii       under which the consideration payable exceeds £250,000

iii     which includes a term allowing the consideration payable to be varied

(c)   enter into any non-capital contracts where consideration exceeds £100,000. Such contracts may include

ii       employment contracts (e.g. individual employment contracts over £100,000 over annum and fixed-term contracts of employment exceeding £100,000 in total over the fixed-term period)

iii     service contracts (e.g. asset maintenance contracts)

iiii    revenue contracts (e.g. accountancy or legal services)

 

            Members will note that a similar expenditure controls process was introduced by the DoE during the operation of the Statutory Transition Committee period.

 

2.2       It is important to note that the release of this guidance does not preclude the necessity to follow Belfast City Council Standing Orders and the associated processes for entering into contracts and land disposals, requiring approval through the Strategic Policy and Resources Committee and Full Council.

 

2.3       The guidance states that ‘Councils should have their three year capital plans and revenue expenditure forecasts examined and approved by the new council (in shadow form) at the beginning’ which would mean that only those transactions above and beyond that are in the three year capital plans and relevant expenditure forecasts would subsequently have to be referred to the new council (in shadow form).

 

2.4       The guidance further states that all other disposals, capital contracts and non-capital contracts and borrowings outside of the three-year capital plans and revenue expenditure forecasts should comply with the DoE direction as set out above.

 

2.5       Capital Contracts

 

            In July 2014 as part of the expenditure control process the Shadow Council endorsed the Council’s rolling Capital Programme as formally agreed by the Statutory Transition Committee. Capital contract commitments are processed in accordance with the agreed stage approval process within the capital programme reports.

 

2.6       The Council’s rolling capital programme was endorsed by the Shadow Council in February. There have been no further investment decisions  since this time.

 

2.7       Non-Capital Contracts

 

            Appendix 2 outlines the list of proposed non-capital contacts which have secured or are due to seek BCC approval. These are submitted for consideration and consent of the Committee and new council (operating in shadow form).

 

2.8       Land disposals/acquisitions

 

            Shadow Council in March 2015agreed to purchase lands at the junction of the Upper Ballygomartin Road and Springmartin Road to accommodate the Black Mountain Shared Space project  

 

2.9       Local Investment Fund

 

            Local Investment Fund is deemed to be a contract and Legal Services has also advised that Shadow Council is required to approve all Local Investment Funds (LIF) over £100K because they also constitute a contract and therefore fall within the DoE guidance.  Please see table in Appendix 2 for funding allocations over £100k which have not already been endorsed by the STC.

 

2.10     Award of tender associated with Innovation Centre

 

            In order to maximise the planned benefits that can be derived from the investment in the Innovation Centre the project board has agreed that a competitive dialogue procurement process be undertaken to appoint the operator for the centre. Given the timeframe commitments and the specialist skills associated with this process an outside resource will be required.

 

3          Resources

 

            Finance

3.1       The financial resources for these contracts will be met within the current departmental budgets and the proposed estimates are taken forward through the rate setting process.

 

3.2       Human Resources

            There are no additional human resource implications.

 

3.3       Assets and other implications

            The asset and other implications associated with this report are covered within the capital programme update.

 

4          Equality and Good Relations Implications

 

4.1       There are no equality implications from this report.

 

5          Call in

 

5.1       This decision is subject to call in.

 

 

6          Recommendations

 

6.1       The Committee is recommended to:

(i)     Give consent to the contracts as set out at Appendix 2 which have already been presented to the relevant Belfast City Council committee;

(ii)   Give permission to go to public tender and delegate authority to the Director of Property and Projects to award the most economically advantageous tender for the delivery of a competitive dialogue process in order to appoint an operator for the innovation centre.”

 

APPENDIX 2

 

SUPPLIES & SERVICES TENDERS

 

Contract Name	Estimated value over period of new contract	Contract duration	Comment
Bring Sites Service for mixed glass, textiles, mixed paper and mixed cans	The value of the contract lots are variable but will exceed EU thresholds currently £172K	4 years	The contract is being let by Arc21 and BCC is a participant
Supply of fuel cards	£250K	4 years + 2
Procurement support for Innovation Centre	£100K	1 year	*Note; Seek approval to go to tender and also delegated authority for approval by Director of Property & Projects

 

LIF

 

Springfield Star	£160K
Sarsfield GAC	£120K
Templemore Avenue School Trust	£100K
Short Strand Community Centre	£101K

 

            The Committee adopted the recommendations.