Agenda item

            The Portfolio Manager presented the following 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 a request for an approval under the Capital Programme.

2.0       Recommendations

2.1       The Committee is asked to:

·        Capital Programme:

o   IT Programme – Palo Alto Firewall – Note that a satisfactory tender return has been received and that the Director of Finance has confirmed that this project is within the affordability limits of the Council and agree that a maximum of up to £67,000 be allocated.

o   Fleet Replacement Programme 2025/26 – Lord Mayor’s official car – Note the further information provided on the replacement of the Lord Mayor’s official car as part of the Fleet Programme for 2025/26.

3.0       Main report

            Key Issues

3.1       Physical Programme

            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. 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 physical programmes and standalone projects that we deliver for central government. Our funding partners include National Lottery Heritage Fund, SEUPB PeacePLUS, the Executive Office, DfC, DfI including the Living with Water Programme, DAERA, Ulster Garden Villages, Levelling Up Fund (LUF), UK Shared Prosperity Fund (UKSPF) and others.  When appropriate, the Property & Projects Department is happy to arrange site visits to any projects that have been completed.

            Capital Programme - Proposed Movements

3.2       Members are aware of the scale of the Council’s Physical Programme via a range of internal and external funding streams. 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:

3.3       IT Programme – Palto Alto Firewall

            This project is part of the overall IT Programme and will replace and licence new firewall hardware. In October 2024 this project was moved to Stage 3 – Committed and held at Tier 0 – Scheme at Risk pending further development of the project and asatisfactory tender return. An update was to be brought back to Committee along with the final budget allocation and confirmation that this is within the affordability limits of the Council. Members are asked to note that a satisfactory tender return has been received and that the Director of Finance has confirmed that this project is within the affordability limits of the Council and agree that a maximum of up to £67,000 be allocated.

3.4       Capital Programme - Fleet Programme 2025/26 - replacement of the Lord Mayor’s car

            Members will recall that in January an update was presented on the Fleet Programme for 2025/26 including the replacement of the Lord Mayor’s official car. Members noted the agreed Fleet Programme for 2025/26, but agreed to defer consideration of the replacement of the Lord Mayor’s official car until further information had been provided to the Committee on the specification and the cost. As reported, the current lease of the Lord Mayor’s official car is due to end in October. Due to delivery lead times it is anticipated to take a minimum of six months to acquire the new replacement lease/hire vehicle once ordered.

3.5       The Fleet Unit have engaged with the Lord Mayor’s Unit on the model of the replacement vehicle to ensure that the requirements, duties and obligations of the Office of the Lord Mayor are considered along with mileage requirements and capability. In keeping with the Council’s previous decision the replacement car will be fully electric. The models which meet the operational loading space and resilience requirements are summarised in the table below. Further detail including other options is also attached at Appendix 1.

3.6       Summary of specifications and costs:

            The current annual lease cost of the Lord Mayor’s official vehicle is £8,439 (from 2020) and a total of £33,756 over the four year contract period. To replace the current vehicle with the same model, the total cost is estimated at £67,180 over four years which would constitute a significant increase compared to the previous procurement exercise. Taking account of the required seating and load space needs, long journey timely returns and lease/hire cost it is recommended that the BMW i5 4 door saloon best meets all round operational requirements and overall value for money over a four year contract period. The cost estimate for this preferred option over four years is approximately £44,250.  Members are asked to note the further information provided on the replacement of the Lord Mayor’s official car as part of the Fleet Programme for 2025/26.

3.7       Financial and Resource Implications

            Financial Implications –

            IT Programme – Palo Alto Firewall - a maximum of £67,000 is now allocated to this project. The Director of Finance has confirmed that this is within the affordability limits of the Council.

            Fleet Replacement Programme 2025/26 – this is an existing rolling allocation of £2.2m on the Capital Programme relating to the Council’s fleet including the replacement of the Lord Mayor’s official car, estimated at £44,250.

            Resource Implications – Officer time to deliver.

3.8       Equality or Good Relations Implications/

            Rural Needs Assessment

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

            The Committee:

o   IT Programme – Palo Alto Firewall – Noted that a satisfactory tender return had been received and that the Director of Finance had confirmed that this project was within the affordability limits of the Council and agreed that a maximum of up to £67,000 be allocated.

o   Fleet Replacement Programme 2025/26 – Lord Mayor’s official car – Noted the further information provided on the replacement of the Lord Mayor’s official car as part of the Fleet Programme for 2025/26 and agreed to the lease of the KIA EV6 Electric Estate for a period of 4 years.