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Agenda Item No

 

The Vale of Glamorgan Council

 

Cabinet Meeting: 28 July, 2014

 

Report of the Cabinet Member for Regeneration, Innovation, Planning and Transportation

 

Barry Regeneration Project Development Fund for the years 2014/15 to 2016/17

 

Purpose of the Report

1.         To identify budget proposals for approval and to grant delegated authority to approve the use of the unallocated budget as appropriate; and, to make additions, deletions or transfers to or from Barry Regeneration Project Development Fund for the years 2014/15 to 2016/17 as appropriate.

Recommendations

1.         That subject to Welsh Government approval of the Council's application for Tackling Poverty Fund, the budget proposals as set out in paragraph 5 (Appendix 1) be approved.

2.         That the budget proposals set out in paragraph 6 be approved.

3.         That the Director of Resources, in consultation with the Leader and Cabinet Member for Corporate Resources, Cabinet Member for Regeneration, Innovation, Planning and Transportation and Director of Development Services be given delegated authority to make additions, deletions or transfers to or from Barry Regeneration Project Development Fund for the years 2014/15 to 2016/17 as appropriate.

4.         That the Director of Resources, in consultation with the Leader and Cabinet Member for Corporate Resources, Cabinet Member for Regeneration, Innovation, Planning and Transportation and Director of Development Services be given delegated authority to approve the use of the unallocated budgets as set out in paragraph 7 for the years 2014/15 to 2016/17 as appropriate.

5.         That the Director of Resources in conjunction with the Head of Legal Services be authorised to negotiate terms and conditions for the appointment of third-party suppliers/providers where required.

6.         That the Head of Legal Services in conjunction with the Director of Resources be authorised to prepare, complete and execute the required legal documentation to enable third-party suppliers/providers to be appointed where required.

Reasons for the Recommendations

1.         To allow the Barry Regeneration Project Development Fund for the years 2014/15 to 2016/17 as identified in Appendix 1 of this report to be counted within the Council's match funding required for the Tackling Poverty Fund programme of projects. 

2.         To allow project preparation work to either continue or commence and, in doing so contribute to the delivery of future investment and development opportunities set out in Barry: a centre of growth and opportunity and the emerging Delivery Plan (Minute C2132 refers).

3.         To enable the capital allocation to be managed effectively.

4.         To enable the capital allocation to be managed effectively.

5.         To allow project preparation work to either continue or commence and, in doing so contribute to the delivery of the Tackling Poverty Fund programme of projects; and, to the delivery of future investment and development opportunities set out in Barry: a centre of growth and opportunity and the emerging Delivery Plan (Minute C2132 refers).

6.         To allow project preparation work to either continue or commence and, in doing so contribute to the delivery of the Tackling Poverty Fund programme of projects; and, to the delivery of future investment and development opportunities set out in Barry: a centre of growth and opportunity and the emerging Delivery Plan (Minute C2132 refers).

Background

2.         The Council has a capital allocation for the years 2014/15 to 2018/19 of £300,000 per year (Council 5th March 2014, Minute 883 (Cabinet 24th February 2014, C2211) refers).  This allocation is used for preparatory work such as feasibility, site investigation and concept design work; project management in keeping with good practice for major projects; and, project match funding to lever in capital funding from external funding sources.

3.         The Council received notification in September 2013 that its Stage 1 bid (Barry: a centre of growth and opportunity) for Vibrant and Viable Places funding had not progressed to Stage 2.  When announcing the determination of the bid the Welsh Government also announced that the Council should be eligible for a ring-fenced fund aimed at tackling poverty.  In April 2014 the Minister for Housing and Regeneration announced that the Council would be eligible for £1m in capital funding (known as the Tackling Poverty Fund) over the three financial years 2014/15, 2015/16 and 2016/17.  The Council received guidance on how to apply for this funding on 12th June 2014.  A request for the use of emergency powers to submit an application was authorised on 23rd June 2014 to coincide with the Welsh Government's deadline for submitting the application.  At the time of writing it is understood that the Welsh Government will issue a determination letter before the end of this month (July 2014).

4.         The Council's Tackling Poverty Fund application is the subject of a separate report on the agenda for this meeting of Cabinet which sets out in more detail the Outline Business Case for intervention; the programme of projects; funding profiles for each project; and, all match funding requirements.  In light of this, this report considers:

·               The match funding requirements of the Council's Tackling Poverty Fund application from the Barry Regeneration Project Development Fund for the years 2014/15 to 2016/17;

·               The development funding requirements of other priorities and key facets of the Stage 1 bid, from the Barry Regeneration Project Development Fund for the year 2014/15 as appropriate; and,

·               The delegated authority arrangements to approve the use of the unallocated budget as appropriate; and, to make additions, deletions or transfers to or from Barry Regeneration Project Development Fund for the years 2014/15 to 2016/17 as appropriate.

Relevant Issues and Options

5.         As stated above the Tackling Poverty Fund application is the subject of a separate report on the agenda for this meeting of Cabinet.  In light of this (and subject to Welsh Government approval of the Council's application for Tackling Poverty Fund) it is requested that approval is given to use the capital allocation of £300,000 per year for the years 2014/15 to 2016/17 to fund part of the match funding requirements of the Council's Tackling Poverty Fund application (set out in Appendix 1).  In summary £40,000 is required for 2014/15; £116,000 is required for 2015/16; and, £40,000 is required for 2016/17.  The other match funding elements are capital allocations arising from s106 legal agreements and are considered in more detail in a separate report as stated above.

6.         It is requested that approval is given to use the remaining capital allocation of £260,000 for the year 2014/15 to fund the following budget proposals:

·               Project Management Unit: £65,000 is required to fund a dedicated resource to project manage a number of major regeneration projects including, Innovation Quarter (including the Pumphouse); Barry Rail Centre/Barry Tourist Railway; Nell's Point marketing; Barry Island Eastern Shelter/Promenade enhancements; and the emerging masterplan for Barry Island “Setting the Sceneâ€.

·               Economic Development Unit: £14,000 is required to fund a dedicated resource to undertake project preparation work and, in doing so contribute to the delivery of future investment and development opportunities set out in Barry: a centre of growth and opportunity and the emerging Delivery Plan (Minute C2132 refers).

·               Landscape Design Service: £35,000 is required to fund a dedicated design and contract management resource to develop and deliver the public realm, public open space and public art elements of both major regeneration projects such as Barry Town Centre, Innovation Quarter, Barry Island; and, community based projects in Castleland Renewal Area and the Communities First Cluster area.

·               Highways and Engineering Design: £15,000 is required to fund a dedicated design and contract management resource to develop traffic management and sustainable transport projects in traditional shopping areas such as Holton Road, High Street and Broad Street and their hinterland.

·               Maslin Park: £32,000 is required as gap funding to demolish the existing buildings and deliver a new two team changing room, which would add value to the improvements funded by the Barry Regeneration Area Programme 2013/14.  The budget cost for the scheme (including Property Services fess and a contingency) is £80,000.  Budgets of £33,000 (Marine Hotel s106 legal agreement) and £15,000 (Parks and Grounds Maintenance Asset Renewal) have been identified leaving a funding gap of £32,000.

·               Barry Ideas Bank: £500 is required as gap funding for the web-based community ideas bank run by a not-for-profit social enterprise the Flexible Thinking Forum.  It is considered that support for this activity would add value to the partnership working and community engagement arrangements reported to the meeting of Cabinet on 24th March 2014 (Minute C2265 refers).

7.         The budget proposals identified in paragraphs 5 and 6 amount to a total expenditure of £201,500 for 2014/15; £116,000 for 2015/16; and, £40,000 for 2016/17.  There is need to retain the appropriate flexibility on possible future uses of the Barry Regeneration Project Development Fund allocation as the Council and partner organisations strive to deliver in a financial climate that is and will continue to be tough.  With this in mind it is considered prudent for the unallocated budgets of £98,500 for 2014/15; £184,000 for 2015/16; and, £260,000 for 2016/17 to be held in abeyance and that the Director of Resources, in consultation with the Leader and Cabinet Member for Corporate Resources, Cabinet Member for Regeneration, Innovation, Planning and Transportation and Director of Development Services be given delegated authority to approve the use of the unallocated budgets for the years 2014/15 to 2016/17 as appropriate and to make additions, deletions or transfers to or from Barry Regeneration Project Development Fund for the years 2014/15 to 2016/17 as appropriate.

Resource Implications (Financial and Employment)

8.         The Barry Regeneration Project Development Fund capital allocation for the years 2014/15 to 2018/19 is £300,000 per year.  Procurement will be undertaken in accordance with the Council's Procurement Guidance and Financial Regulations as appropriate.

9.         Under the Tackling Poverty Fund guidance for local authorities, direct running costs for staff allocated to the successful execution of a project can be counted as part of the match funding contribution.  For example the Energy Champion post (refer to Appendix 1 - Project Id6) is counted as part of the Council's match funding contribution of £423,000 (set out in Appendix 1).

Sustainability and Climate Change Implications

10.      There are no Sustainability and Climate Change Implications directly associated with this particular report. However, regeneration has implications for the sustainability of communities, especially when integrated with planning, housing and transport issues.

Legal Implications (to Include Human Rights Implications)

11.      In procuring and appointing any contractor and/or external advisor in connection with the proposals and projects identified, regard must be had as applicable for the Council’s Procurement Policy and Guidance. As appropriate, any procurement process will involve the use of the Council’s standard terms and conditions of contract or industry standard terms and conditions of contract, which will serve as the basis for any contractual arrangements with third-party suppliers/providers.

12.      Furthermore, where the proposals and projects identified involve making bids for external funding, it will be necessary to ensure that all terms and conditions attached to the external funding offer and grant are complied with and that the Council’s Procedure Note on Grant Funding is followed.

Crime and Disorder Implications

13.      There are no Crime and Disorder Implications directly associated with this particular report, although successful regeneration activity can result in a reduction in crime and anti-social behaviour.

Equal Opportunities Implications (to include Welsh Language issues)

14.      There are no specific Equal Opportunity Implications directly associated with this particular report, although successful regeneration can lead to improved access to services and facilities and foster community cohesion.

Corporate/Service Objectives

15.      There is broad agreement both in Wales and across the United Kingdom that regeneration is a comprehensive process, which aims to tackle a combination of social, economic, physical and environmental issues and that it is focused on areas of disadvantage, particularly those where the market alone cannot deliver improvement.  Regeneration therefore requires broad action across a range of Departments and Service Areas and in terms of Barry this is reflected in the content of both the Corporate Plan and Service Plans.

Policy Framework and Budget

16.      This report is a matter for Executive decision.

Consultation (including Ward Member Consultation)

17.      The actions and activities identified in this report contribute to a significant number of priorities, objectives and actions in the Corporate Plan 2013-2017.  Consultation with Ward Members and third parties will be commensurate with the feasibility, design and implementation requirements of the project.

Relevant Scrutiny Committee

18.      Economy and Environment.

Background Papers

Cabinet Reports - 16th December 2013 (Minute C2132); 24th February 2014 (Minute C2211) and, 24th March 2014 (Minute C2265).

 

Welsh Government - Vibrant & Viable Places Regeneration Framework (Tackling Poverty Fund), Guidance for local authorities (June 2014).

 

Contact Officer

Dave Williams, Principal Regeneration Officer

Tel: 01446 704753

 

Officers Consulted

Head of Housing & Building Services

Operational Manager, Countryside and Economic Projects

Operational Manager, Highways and Engineering

Senior Lawyer, Legal Services

Operational Manager, Accountancy

Senior Finance Officer, Development Services Support

Principal Housing & Pollution Officer  

Major Project Managers

Principal Landscape Architect

 

Responsible Officer:

Rob Thomas, Director of Development Service

 

 

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