Agenda item

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

“1.0     Purpose of Report or Summary of Main Issues

1.1       The Council’s Physical Programme currently includes over 200 capital projects with investment of £150m+ 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 presents requests for stage movement approvals under the Capital Programme, along with updates on capital letters of offer and contracts awarded.

2.0       Recommendations

2.1       The Committee is asked to:

·             Capital Programme - Waste Plan - Expansion of kerbside glass collection – Agree that the project is moved to Stage 3 – Committed with a maximum budget of up to £802,000 and 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.

·             Capital Programme – IT Programme – Folder Inserter Equipment – Agree that the project is moved to Stage 3 – Committed and held at Tier 0 – Scheme at Risk pending further development of the project and a satisfactory tender return; and 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.

·             Shared Island Funding - that €46,620 in Shared Island funding has been secured as part of a joint funding application with Cork City Council to install solar photovoltaics (PV) on the roof of Donegal Pass Community Centre subject to acceptance of the grant offer.

·             Capital Letters of Offer – to note the update in relation to capital letters of offer in Q1 2024/25.

·             Contracts awarded – to note the update in relation to contracts awarded in Q1 2024/25.

3.0       Main report

            Key Issues

            Capital Programme - Proposed Movements

3.1       Members will be aware that the Council runs a substantial Physical Programme. This includes the rolling Capital Programme  – a multimillion regeneration programme of investment across the city which improves existing Council assets or provides new council facilities. Members are advised that the Property & Projects Department is happy to arrange a site visit to any projects that have been completed or are underway.

3.2       Members have 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. Members are asked to note the following activity on the Capital Programme:

            Waste Plan – Expansion of Glass Collection Scheme

3.3       In March, SP&R Committee agreed to move the Waste Plan – Expansion of Glass Collection Scheme project to Stage 2 – Uncommitted. As per the three stage approvals process, an Outline Business Case has been completed and the project can now progress to delivery stage. The total costs of this capital project are estimated to be £1.6m. As reported to People and Communities Committee on 6 August 2024, the Council has recently been successful in securing an offer of match funding from DAERA for 50% of the total cost estimate, meaning that the funding required from the Council is up to a maximum of £802,000.

            Members are asked to agree that this project is moved to Stage 3 – Committed with a budget of up to £802,000. The Director of Finance has confirmed that this is within the affordability limits of the Council.

            IT Programme – Folder Inserter Equipment

3.4       A new folder inserter is required to continue to provide a high volume enveloping service for NIHE mandated via a Service Level Agreement, and internally for council departments. The current hardware is coming to end of life. Maintenance requirements are now frequent and increasing in recent years, and sourcing parts for this machinery is no longer possible within the UK. This project aims to enable Digital Services to continue to provide SLA mail processing service for NIHE and for council departments.

            Members are asked to agree that the project is moved to Stage 3 – Committed and held at Tier 0 – Scheme at Risk pending further development of the project and a satisfactory tender return; and 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.

            Shared Island Funding Awards

3.5       In 2023 Belfast City Council partnered with Cork City Council on a Shared Island funded feasibility study that assessed the solar PV potential on a number of high consuming council sites in both Cork and Belfast. In Belfast, the potential solar PV generation for 25 council owned buildings was estimated and linked with consumption. The results of the study were then used to complete a joint application with Cork City Council last summer to access capital funding to install solar PV on three community centres with one of these being in Belfast (Donegall Pass Community Centre) and the other two in Cork. One of the conditions of the funding was that it had to have a community focus. Donegall Pass community centre was selected due to their high potential solar PV generation matched to high energy consumption levels as highlighted in the feasibility study. Members are asked to note that this a positive funding award and that once the solar panels are installed, the panels could generate 37,898 kWh/year against a current energy consumption of approximately 19,000kWh/year (ie the panels will produce approximately double the amount of energy currently used). This would reduce carbon emissions in the city by approximately 12.99 tonnes CO2e/kWh annually and save around £7,000 per year on the electricity bill.  A contract for funding is currently being reviewed and will be signed by the Council and Cork City Council.  The project will be delivered by Property and Projects.  Members are asked to note the award of funding and 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.

3.6       A further application was put in to test interventions in community growing within the net-zero (UP 2030) neighbourhood area – Donegall Pass, Sandy Row, Markets, Barrack Street and the Linen quarter. Interventions include horticulture/growing training sessions; co-design of urban sustainable food interventions; implementation of urban sustainable food interventions; promotion of active travel; promotion of energy saving and retrofit measures. The funding for this project is €15,000. There may be an opportunity to avail of an additional €15,000 through partnering with Wild Belfast to deliver biodiversity enhancements, making the potential total funding up to €30,000. As above a contract for funding is currently being reviewed and will be signed by the Council and Cork City Council.  For this stream the Council will work with the Belfast Sustainable Food Partnership to engage with the neighbourhoods in the UP2030 area to identify and deliver community growing projects within the timeframe that will help develop growing capacity and biodiversity improvements across the area.

            Capital Letters of Offer

3.7       Members are asked to note the update in relation to capital letters of offer accepted in Q1 2024/25 at Appendix 1.

            Contracts Awarded

3.8       Members are asked to note the award of tenders for capital works including services related to works in Q1 2024/25 at Appendix 2.

            Financial and Resource Implications

3.9       Financial Implications – Waste Plan – Expansion of Glass Collection Scheme - a maximum of £810,000 is now allocated to this project. The Director of Finance has confirmed that this is within the affordability limits of the Council.

            Resource Implications – Waste Plan – Expansion of Glass Collection Scheme – revenue funding is in place for 2024/25 as part of the rates setting process. Revenue requirements for 2025/26 onwards are subject to approval.

            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.