Agenda item

To respond to the request from the Special Overview and Scrutiny Committee for a general update on the Council’s LUF work.

Recommended          -           That the Committee notes the report.

The Chair welcomed Councillor Marlene Haworth and Steve Riley, Executive Director (Environment) to the meeting to report on this item.

Steve explained that a thorough report and appendices were included in the agenda, of which he wished to highlight a few points. Steve discussed the following aspects of the report in more detail:

·         Expenditure on bid submission

·         Current position with regards to the acquisition of Burton’s Chambers and Market Chambers

·         Tight timescales of the LUF programme

·         Meetings with market traders, including questions and answers which are included in the appendices

·         Temporary accommodation for market traders

·         Appointment of the Project Director

Following the appointment of the Project Director and given the bid was submitted over 7 months ago, she has commenced an initial piece of work up to the end of March involving a RIBA Stage 2 refresh of all the work undertaken to produce the bid. This will help to understand how far each work stream progressed and where further information/work is needed prior to the main work around progressing the designs/drawings, planning permissions, listed building consents, further costing work, operator procurement etc. before progressing to formal tenders and appointment of contractors to commence the works in Burtons Chambers and the Market Hall at the start of 2024. Steve explained that the attached Appendix B provides a brief programme for this work.

The Chair thanked Steve for the report and invited questions from the committee.

Councillor Judith Addison asked if there was a contingency should costs increase. Steve responded that approximately 30% was allowed for in the bid. The current piece of work being carried out by the Project Director should give a more firm indication of expected costs.

Councillor Susan Hayes asked how the work will be phased. Steve responded that this has not yet been determined.

Councillor Zak Khan said that it is important to keep members of the public updated as there is a lot of misconceptions. Many don’t realise that the funding comes with strict criteria of what it is spent on and the Council should ensure we continue to communicate this. Councillor Khan suggested that we could assist the levelling up process by ensuring we use local firms for the contract where possible.

Steve responded that the scale of this project meant that it is subject to public sector procurement rules which won’t allow directly for local preference of contractors.

Councillor Khan also asked what work is going on behind the scenes to encourage further investment into the town centre. Steve responded that UKSP funding has been allocated to promote the town centre, and numerous events are planned to generate footfall. The opening of these 3 major buildings in the programme will also generate more footfall. This is the catalyst for private sector investment to follow, and there is a town centre masterplan with other projects that the Council will bid for when suitable funding streams become available. However, they will be developing KPIs which may include aspects such as percentage of the supply chain procured locally etc. However, we must be careful that we do not inhibit the main contractor’s ability to deliver this project.

Councillor Khan asked about the Council’s relationship with the Arndale. Mark Hoyle explained that there is a professional relationship there and the Arndale have agreed to be part of the town centre master plan working group.

Councillor Kimberley Whitehead asked for the current position regarding compulsory purchase orders for Burton’s Chambers and Market Chambers. Steve responded. Regarding Burton’s Chambers, the Council have acquired the freehold and are currently in discussions with two tenants about how the Council can assist them to move into other property. The Council will do everything we can to assist them. A report was agreed by Cabinet yesterday regarding compulsory purchase order which will be used only if necessary. There are 5 known interests in Market Chambers, 3 are progressing sale by agreement and the other 2 are continuing talks.

Councillor Whitehead asked about plans for market hall tenants during the construction. Steve said that by the end of the month the Council will have been provided the information as to the needs of the traders and this will be determined from there.

Councillor Hayes asked about concerns that the town centre will look like a building site for long period. Steve responded that this will be managed as best as it can be and we will ensure the public and businesses are aware of what is happening and when.  Steve added that the Council have successfully decanted the market previously and accommodated traders on a temporary basis elsewhere in the town centre and he is confident they will do so again.

The Chair commented that he had spoken to traders regarding temporary accommodation and there were concerns that the use of possible log cabin type stalls would cause issues for safety, security and warmth. He suggested that consideration should be given to the use of alternatives, such as shipping containers, which could be purchased and reused. Councillor Marlene Haworth responded. She said that she agreed this may look good in principle, however, any money spent on temporary accommodation means there is less to be spent on the main refurbishment project. Councillor Kimberley Whitehead also added that there would be significant storage costs if we did this. Councillor Khan and Shahed Mahmood both commented that they would be supportive of the shipping container idea and suggested that it should at least be explored further.

Councillor Khan asked were specifically we would be accommodating market traders during the construction, and if the Council had considered using the Arcade or the Arndale. Steve responded that this decision had not yet been made and right now nothing was off the table. This will not happen until December, and it is unlikely that whatever is decided will be everyone’s first preference so some degree of compromise will be needed.

Shahed Mahmood asked how the Council will keep members of the public and businesses informed of ongoing works. Steve responded that this is included in the communications plan. There will be a dedicated page on the Council website with the most up to date information. Councillors can help by directing members of the public to this resource.

Councillor Whitehead asked if Councillors could be notified when this page is updated. Steve will look into this.

The Chair asked about social value. Steve responded that social value will be included as part of the procurement.

The Chair referred to a question regarding procurement which had been referred to the Committee from the Resources Overview and Scrutiny Committee, which he would read out in full.

The Levelling up Fund Investment and Leisure Investment - how does the Council intend to ensure that it receives value for money from its investment? What KPIs will be used when assessing contractors’ suitability to undertake the work? Can the Council ensure that any tender is open to public scrutiny rather than it being decided behind closed doors?

Steve responded. Members can be reassured that the project team are taking on board the principals set out in The Construction Playbook, which captures best practices and the government’s expectations of how contracting authorities and suppliers, should engage with each other.  These are set out in 14 key policies for how the government should assess, procure and deliver public works projects and programmes.  It is supported by a review called Supporting Constructing the Gold Standard review which specifically considered construction frameworks.  The quotes below are from these two documents and summarise why effective use of frameworks is considered good practice.

• The Construction Playbook was launched on 8 December 2020 containing 14 key policy reforms to enable ‘faster, better, greener’ construction by transforming how we assess, procure and deliver public works projects and programmes.
• One of these key policy reforms is ‘Effective Contracting’, designed to ensure that contracts are structured to support an exchange of data, collaboration, improve value and manage risk with clear expectations for continuous improvement and consistent with the principles contained within the Construction Playbook.
• Frameworks are an efficient method for government to procure public works, goods and services and can provide an opportunity for contracting authorities to access economies of scale.
• They are widely recognised as the best medium through which procurement and contracting can deliver transformational improvements, overcoming the ‘Groundhog Day’ of lost learning from one project to the next.

Councillor Britcliffe said that he wished to thank the officers involved, who have been one step ahead during the entire process. Appointing the Project Director early has been vital, particularly with the short time frame to spend the money and the competition from other areas. He is very enthused about these projects and so are the staff who are delivering them.

The Chair thanked all those for attending and responding to the discussion.

Resolved        -           That the report is noted.