The Group met on 17th November 2015 for an update on approved projects progress and to consider further proposals.

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1 Item/Min Ref: 10 Title f Reprt: Capital prjects apprval Officer presenting: Lead Finance Officer Authr: Lead Finance Officer 1 Purpse f Reprt/Recmmendatins The purpse f this reprt is fr Members t apprve allcatin f capital funding twards a number f prjects fllwing cnsideratin by the Capital Prjects and Crprate Prgramme Planning Grup held n 17th Nvember Backgrund The Capital Prjects and Crprate Prgramme Planning Grup was set up as part f the gvernance arrangements f the new Cuncil as a cntrl mechanism t cnsider the financial implicatins f prjects and prvide versight in relatin t the prgress f prjects within Cuncil s capital plan. The grup will cnsider the full revenue implicatins f all prjects befre cmmencement, scrutinise the surces f financing fr the prjects, ensure business cases and ecnmic appraisals have been prepared, and will enable Members t priritise capital prjects in line with the finances available. The Grup is nt a decisin making bdy and will cnsider in full the financial implicatins f prjects befre prgressin t the Gvernance and Strategic Planning Cmmittee fr apprval. There are currently 2 lists f prjects. The first is prjects which are fully apprved and fully financed. These are updated fr each meeting t reflect new recmmendatins fr allcatin f funding by Cuncil thrugh this Cmmittee. The secnd is a cmprehensive list f aspiratinal prjects which are being cnsidered r develped by the relevant Directrate Senir Respnsible Officers and nce such prjects have been develped t a state f readiness, they will be brught frward t this Cmmittee fr allcatin f funds fllwing cnsideratin by the Capital Prjects and Crprate Prgramme Planning Grup. This list currently ttals 160m. The Grup met n 17th Nvember 2015 fr an update n apprved prjects prgress and t cnsider further prpsals. 3 Key Issues The fllwing prjects were cnsidered by the Grup fr advancement:-

2 SIF Invest In Play Brandywell - Detailed reprt attached (Appendix 2 CRG02/15)- This Cmmittee in September 2015 allcated a sum f 300,000 t cmplete the funding package in full fr 4 Play prjects (Brandywell, Ballymagrarty, Kilfennan and Ballyarnett) fllwing receipt f funding in the sum f 2,790,346 frm OFMDFM Scial Investment Fund. Csts fr the Brandywell prject have increased by 155,000 due t a number f issues as described in the attached reprt, mainly cnsisting f site relcatin, decntaminatin and demlitin csts. This additinal cst has been reduced thrugh value engineering withut impacting n the verall integrity f the prject and fficers will aim t recup this additinal cst ver the curse f the grant perid when firm price tenders are received fr all 4 f the prjects. This will bring Cuncil s ttal cntributin t these 4 prjects t 455,000 and maintain a significant external funding rati f 6.13 fr each 1 f Cuncil investment. Apprval is therefre sught fr the fllwing:- Cuncil apprve an additinal 155,000 twards the Invest in Play Prject t ensure a fully funded prject at this stage. Tendering and prcurement f prfessinal design teams and principle cntractrs in line with the verall revised prject budget. Irish Street, Rse Curt and Funtain Play Prjects and Curryneirn Play design csts- Detailed reprt attached (Appendix 3 CRG03/15)- A number f successful applicatins have been secured frm DSD fr a number f legacy Derry City Cuncil play prjects, as fllws:- Prject Title Estimated Ttal Prject Cst DSD funding Sught DSD funding Secured Cuncil funding Irish Street 330, , ,000 45,000 Rse Curt 330, , ,000 45,000 The Funtain 66,000 66,000 66,000 0 Curryneirn (design) 15,000 15,000 15,000 0 Ttal 741, , ,000 90,000

3 Frm Cuncils perspective this represents an external funding rati 7.23 fr each 1 f Cuncil investment. Cuncil has already cmmitted 42,000 twards these prjects, meaning that an additinal sum f 48,000 is nw required frm Cuncil's capital plan t ensure the prjects are funded in full. Apprval is therefre sught fr the fllwing:- Overall prject budget f 741,000 fr the abve prjects including Cuncil cntributin f 90,000 (additinal 48,000). Tendering and prcurement f a prfessinal design teams and principle cntractrs in line with the verall prject budget. Strategic Play Develpment- Detailed reprt attached (Appendix 4 CRG04/15)- A State f Play reprt was previusly prepared fr and presented t the Shadw Cuncil in March 2015 which set ut a range f recmmendatins pertaining t the management, maintenance and develpment f future fixed play prvisin district wide. There is a particular need t develp prjects t a state f readiness in the Strabane area t avail f upcming and future funding pprtunities (e.g. Rural Develpment Prgramme). The reprt recmmends the need t resurce a Play Develpment Officer in this regard. In additin, and aligned t the recmmendatins in the State f Play Reprt, there is nw a need t develp a new Plan Play fr the new Cuncil. Previusly bth frmer Cuncils had their wn respective Play Plans which are nw utdated The purpse f this new Play Plan will establish the strategic visin, directin, resurcing and management f fixed play prvisin ging frward. It is essential t develp this Plan in rder t secure external funding in making the 'case fr play' t meet the needs and aspiratins f ur cmmunity. It is mst likely that this will be an emerging theme thrugh the Cmmunity Plan prcess. 40,000 was used t appint Strategic Leisure t develp the frmer Derry City Cuncil's Play Plan in March 2010 and it is anticipated that a similar amunt will be required t develp the new plan. Apprval is therefre sught fr the fllwing:- Realignment f frmer Strabane District Cuncil Access Officer budget t appint a Play Develpment Officer fr the new Cuncil. A sum f 40,000 t prcure external supprt t develp a new Play Plan and authrise fficers t prceed t tender fr this service in line with this budget and in cmpliance with Cuncil purchasing prcedures. Cuncil has specific funding set aside within its' capital plan t fund business cases and ecnmic appraisals and this sum can be funded frm this surce.

4 Strathfyle Play- Cuncil in partnership with RAPID, Enagh Yuth Frum, Strathfyle Wman's Grup and Strathfyle Cmmunity Assciatin recently submitted an applicatin t the Cmmunity Fundatin fr NI under their Places & Spaces Prgramme t develp new play prvisin at Strathfyle. Unfrtunately, this applicatin was unsuccessful. There has been extensive engagement undertaken ver the last number f mnths with the lcal cmmunity and stakehlders and, understandably, there is great disappintment given that the CFNI applicatin was rejected n the basis that the funder was nt satisfied with the infrmatin prvided in evidencing the case fr need. The verall cst breakdwn prvided as part f the Stage 2 applicatin is as fllws:- Capital 448,489 Prfessinal Fees 26,900 Cntingency 47,540 Ttal 522,938 It was envisined, that subject t the successful utcme f the CFNI applicatin in the sum f 350,000, Cuncil thrugh its capital plan wuld cntribute a further 172,938 t cmplete the funding package in full. Cuncil's Parks Develpment team has been extremely successful in the past in using Cuncil investment t lever funding frm external surces t maximise value fr ratepayers. Cuncil has received recent cmmunicatin frm the Office f the Minister f the Envirnment utlining a number f ptential funding pprtunities. These range frm 50,000 frm the DOE Envirnmental Grant Prgramme t the pssibility f 50,000 frm the DSD and ptentially a cntributin f 50,000 frm River Ridge Recycling thrugh the Landfill Cmmunities Fund ver the next tw quarters. It is als nted that RAPID are in dialgue with the NIHE Chesin Unit t see if further funds can be secured. This ptentially prvides a further minimum 150,000 f funding fr the prject. Officers are explring these ptential pprtunities further and are mindful that the Rural Develpment Prgramme will be pening next year and subject t prcess the Envirnmental Imprvements (under Village Renewal Scheme) up t 500,000 at 75% grant aid assistance may be an ptin wrth cnsidering.

5 Fllwing extensive discussin at the Capital and Crprate Prjects Planning Grup, the fllwing 2 ptins are cnsidered as the mst viable ptins t prgress the prject:- Optin 1- Cuncil prvides the necessary funding t deliver the prject in full and prgresses the prject t tender with immediate effect, whilst in the interim seeking cnfirmatin f the additinal 150,000 f immediate funding pprtunities identified abve. It is anticipated that this will enable the prject t be cmpleted by April 2017, hwever will remve the pssibility f external funding being secured thrugh the Rural Develpment Prgramme which will have the pprtunity cst f reduced funding being available fr ther prjects in the capital plan. Optin 2- Cuncil cnfirms 172,938 match funding fr the prject, seeks t cnfirm the additinal 150,000 f funding pprtunities identified abve, and makes a further applicatin t the Rural Develpment Prgramme when the prgramme pens (anticipated April t June 2016) t secure the balance f funding. This will ensure Cuncil investment secures the maximum additinal external funding leverage and maximises funding available fr ther prjects within Cuncil s capital plan. It is anticipated that this will allw the prject t be cmpleted by September/ Octber 2017 althugh dependent n the Rural Develpment Prgramme cmmencing as abve. Other prjects- Updates n the fllwing prjects have been/ will be prvided t the relevant Cmmittees:- Majr leisure develpment- Health & Cmmunity Cmmunity Centres- Health & Cmmunity Maritime Museum- Business & Culture As nted abve, in additin t the apprved prjects list, there is a further cmprehensive list f majr revenue prjects, capital prjects with funding nt yet secured and capital prjects t be scped/ csts nt yet cnfirmed. These include prjects ptentially transferring frm DSD and will require substantial further rates investment and funding t be secured t deliver in full. A medium term plan will be prvided t Members as part f the upcming rates estimates prcess with a view t prviding an achievable target.

6 The grup als discussed the linkages that exist between a number f prjects n Cuncil s capital plan e.g. Masterplans such as Tp f the Hill and Fyle Valley that have elements which fall within different Cuncil Directrates and therefre have differing Senir Respnsible Officers. It has been cnsidered that it wuld be beneficial in these instances t have an verall prject Senir Respnsible Officer as the accuntable fficer fr the verall prject prviding Members and stakehlders with a main cntact pint. The plan will therefre be updated in advance f the next meeting t address this issue. The list f prjects with Cuncil funding fully allcated has been updated t reflect the abve (Appendix 1). Members will nte that these prjects ttal ver 66m f which ver 32m has been r is anticipated t be secured externally. 4 Financial, Equality, Legal, HR and Other Implicatins All the capital prjects and recmmendatins identified abve are affrdable within Cuncil's available lan charge prvisin. Befre this reprt, Cuncil had an available MRP/ lan charge prvisin f 477k which wuld facilitate further investment f circa 7.0m (depending n prject lifespans) by the new Cuncil via lan charge financing in additin t the significant additinal external funding this wuld lever. A summary f the financial implicatins f the recmmendatins made in this reprt are prvided belw. Prject Capital funding requirement MRP prvisin Other SIF Invest in Play Brandywell 155,000 13,250 Irish Street, Rse Curt and Funtain Play Prjects and Curryneirn Play design csts 48,000 4,100 Strathfyle T be cnfirmed depending n ptin selected (mimimum 172,938, maximum 522,938) T be cnfirmed depending n ptin selected (minimum 15,000 maximum 44,500) Strategic Play Develpment 40,000 t be funded frm recurring revenue

7 budget within capital plan ( 56,000) fr develpment f business cases Ttal Minimum 375,938, Maximum 725,938 Minimum 32,350, Maximum 61,850 40,000 This will leave Cuncil with a minimum remaining available lan charge prvisin f 415k which wuld facilitate further investment f circa 6.275m (depending n prject lifespans) via lan charge financing in additin t the significant additinal external funding this wuld lever. 5 Recmmendatins It is recmmended that Members apprve the recmmendatins made abve in respect f the fllwing prjects:- SIF Invest in Play Brandywell Irish Street, Rse Curt and Funtain Play prjects and Curryneirn Play design csts Strategic Play Develpment Members are als asked t cnsider the 2 ptins identified abve in respect f the prgressin f the Strathfyle Play prject. Backgrund Papers Appendix 1 Apprved and fully funded capital prjects register Appendix 2 CRG 02/15 SIF Invest in Play- Brandywell Appendix 3 CRG 03/15 Irish Street, Rse Curt, Funtain & Curryneirn Play Appendix 4 CRG 04/15 Strategic Play Develpmemnt