Report of the Development Director

Part 1 / ITEM NO.

REPORT OF THE DEVELOPMENT DIRECTOR,

OFFICE OF THE CHIEF EXECUTIVE

TO THE CITY MAYOR ON

22nd APRIL 2013

TITLE: Greengate Square Phase 2 Public Realm Works – Procurement of Design

and Engineering Consultants

RECOMMENDATION:

That the City Mayor:

1.  Approve the drawdown of spend of £125,000 from the Development Team’s 2013/14 Capital Programme allocation to procure design, engineering and quantity surveying consultants for Greengate Square Public Realm, Phase 2.

2.  Approve the appointment of Grontmij as lead consultants for this commission.

3.  Approve the creation of a purchase order for the same amount to enable payment to the appointed consultants.

EXECUTIVE SUMMARY:

The re-development of Greengate will expand the regional centre north into Salford and is expected to catalyse investment of around £400 million from the private sector, resulting in the creation of around 50,000sqm of new commercial floorspace, 1,400 new residential units and create around 3,000 jobs. Greengate is therefore fundamental to the continued growth of the regional centre and to Salford’s own economic growth prospects.

Around £110 million has already been invested in the Greengate area and the recent opening of the £13.3 million public realm scheme at Greengate Square has re-ignited developer interest south of the viaduct at Greengate, with the first commercial development on the east podium expected to commence on site in late 2013 / early 2014. The east podium scheme will lever in around £100 million of private sector investment and will also see two-thirds of the railway viaduct taken down, improving visual and physical connectivity to the northern part of Greengate beyond the viaduct and to the communities beyond.

To build on the improved linkages and connectivity and to begin to catalyse private sector interest and investment north of the viaduct, the City Council now wishes to progress detailed designs for Greengate Square phase 2 public realm works. This will assist the council with coming up with a preferred design solution and an indication of costs, with a view to sourcing and securing the anticipated £3+million of funding to deliver the phase 2 public realm works. This will help to lever in investment to the north of the viaduct which will ultimately lead to the creation of a significant amount of new commercial floorspace, residential units and jobs which will contribute towards the growth of the city and of the Regional Centre.

BACKGROUND DOCUMENTS:

(Available for public inspection)

Exchange Greengate Planning Guidance (Adopted, Jan 2007)

KEY DECISION: YES

1.0 Background

1.1 The redevelopment of the Greengate area presents a mixed-use development opportunity of enormous potential significance and benefit to Salford and represents the natural extension of the Regional Centre. A masterplan for the Greengate area was prepared by Fielden Clegg Bradley (FCB) in 2005 and adopted by the City Council in the Exchange Greengate Planning Guidance in 2007. .

1.2 To date around £110 million has been invested in Greengate by the private sector, creating 800 new residential units and 4,000sqm of commercial floorspace. Over the last couple of years however development has stalled due to the economic and funding climate. In view of this the City Council is currently undertaking a review of the masterplan as it is clear that the scale of development originally proposed will be difficult if not impossible to deliver given the current and expected state of the market for the foreseeable future.

1.3 Nevertheless, Greengate still has the potential to create a new mixed-use urban quarter at the heart of the Regional Centre, delivering a significant quantum of new commercial and residential floorspace, jobs and growth at a time of much needed investment. Initial findings from the masterplan review suggest a revised quantum of development of around 50,000sqm of commercial floorspace, 1,400 residential units and up to 3,000 new jobs created, bringing a total investment of around £400 million into Greengate.

1.4 Part of the vision enshrined in the masterplan for Greengate was to deliver a significant amount of new, high quality, iconic public realm that would re-connectGreengate with Manchester city centre, and provide public spaces and greenspace for those communities working and residing in the area . To this end Greengate Square was completed on-site in September 2012 and was officially opened in March 2013. This £13.3million project has linked the medieval cores of Salford and Manchester via a new pedestrian footbridge linking to Greengate Square.

1.5 The completion of Greengate Square has had a positive impact for ASK’s Greengate Embankment scheme, with ASK closing in on a funding package to deliver the first phase of commercial development on the East podium Construction on site is programmed to commence in late 2013 / early 2014 and will represent around £100 million of private sector investment. Additional developer interest has been seen in a number of the sites on Chapel Street that front onto the new public realm.

2.0 Greengate Square Public Realm, Phase 2

2.1 The re-development of the East podium will see two-thirds of the railway viaduct taken down, removing a huge physical barrier between Manchester city centre and Greengate area to the north of the viaduct and to the communities beyond. To further enhance its attractiveness, and to catalyse private sector interest and investment to the north of the viaduct, the City Council now wishes to progress detailed designs for Greengate Square phase 2 public realm works.

2.2 Greengate Square phase 2 is on the north side of the viaduct bounded by the streets of Greengate, Gravel Lane and Queen Street and contains the historic core of the settlement of Salford (see Annex B for site plan). It encompasses an area of 4,500sqm and will be the largest public space within Greengate. The vision for Greengate Square phase 2, as contained within the original masterplan, is to create a green lung at the heart of the Greengate area.

2.3 This report is seeking approval to appoint Grontmij, landscape architects to prepare a number concept designs for Greengate Square phase 2 up to RIBA Stage C. A preferred option will then be selected to take forward to detailed design and planning permission stage. Once designs and a planning approval is in place this will assist the Council with sourcing and securing funding to deliver the Greengate Square phase 2 works and beginning to unlock private sector investment north of the viaduct to deliver jobs and growth.

2.4 This commission will include the following scope of works:

·  Reviewing all background documents to gain an understanding of the area and context.

·  Advise, procure, organise and submit site investigation surveys to understand the site constraints and to inform the detailed design and structural engineering work.

·  Developing 2 – 3 outline options (RIBA Stage C) for Greengate Square for client consultation and approval, including costing up each option.

·  Liaising with statutory undertakers and other relevant parties which might include Local Authorities, landowners, local residents, businesses and bodies including the Environment Agency and utility companies.

·  Liaise with other team consultant(s), monitor and advise on all issues relating to the preparation of the concept designs.

·  Produce a final preferred design option, incorporating any comments and amends, to take forward to detailed design stage.

3.0 Procurement

3.1 Grontmij was the lead consultant appointed to design and deliver the Greengate Square Phase 1A and 1B scheme.. Under the terms of their original appointment there was an option to extend the contract to encompass the Greengate Square Phase 2 works, subject to a satisfactory performance review. A review exercise has been undertaken of their performance on Phases 1A and 1B which involved obtaining feedback from the client (Salford City Council), the Project Manager (Faithful and Gould) and the contractor (Carillion). This review concluded that Grontmij’s overall performance on Phases 1A and 1B was excellent.

3.2 Following the successful review of Grontmij’s performance on phases 1A and 1B we are proposing to extend their contract to encompass the Greengate Square phase 2 works. Whilst we won’t be seeking competitive quotations for this commission we will ensure a competitive fee proposal is obtained by comparing Grontmij’s rates to their Phase 1A and 1B fee proposal, which was competitively tendered from the English Partnerships Consultancy Framework.

4.0 Costs and budget

4.1 This commission will require a budget of £125,000 to deliver. The monies have been set aside within the Development Team’s 2013/14 Capital Programme allocation, which was approved by the city council on 27th February 2013.

4.2 The fee breakdown is as follows:

Stage A - £21,000

Stage B - £26,000

Stage C - £78,000

Total - £125,000

4.3 Approving this report will enable the City Council to gain a firmer idea of costs for implementing the Phase 2 public realm works and to begin the process of discussions with external funders with a view to securing funding to deliver this scheme.

5.0 Timescales

5.1 Subject to approval the anticipated timescales for this commission are as follows:

Task / Timescales
City Mayoral approval / April 2013
Appointment of Grontmij / April 2013
Review of background documents / April 2013
Site investigations / April – May 2013
Concept designs produced / May – August 2013
Client consultation / August – September 2013
Preferred design option agreed and finalised / September – October 2013

6.0 Conclusion

6.1 Delivery of the Greengate Embankment scheme will see two-thirds of the railway viaduct taken down, improving visual and physical accessibility to the heart of the Greengate area to the north of the viaduct and to the communities beyond.

6.2 To further enhance the attractiveness of Greengate area and allow the City Council to start to consider its options in future pump priming initiatives for the Greengate area the City Council now wishes to progress detailed designs for Greengate Square phase 2 public realm works.Preparation of detailed designs will assist the Council with sourcing and securing funding to deliver the Phase 2 public realm works..

7.0 Recommendation

7.1 That the City Mayor:

1.  Approve the drawdown of spend of £125,000 from the Development Team’s 2013/14 Capital Programme allocation to procure design, engineering and quantity surveying consultants for Greengate Square Public Realm, Phase 2.

2.  Approve the appointment of Grontmij as lead consultants for this commission.

3.  Approve the creation of a purchase order for the same amount to enable payment to the appointed consultants.

KEY COUNCIL POLICIES:

Salford City Council Unitary Development Plan

Exchange Greengate Masterplan

Exchange Greengate Planning Guidance

EQUALITY IMPACT ASSESSMENT AND IMPLICATIONS:-

An Equality Impact Assessment has been undertaken for the Greengate Masterplan (2007). A new Equality Impact Assessment is also being undertaken to support the current review of the Greengate Masterplan prior to it being adopted by the city council.

In developing designs for the Greengate Square phase 2 public realm works we will ensure that the design takes account of all relevant legislation with regards to equalities, including the Disability Discrimination Acts 1995 and 2005.

ASSESSMENT OF RISK:

Medium – this commission will involve the commitment of £125,000 of council capital funding along with the commitment of officer time. Whilst this does represent a significant financial investment by the council it will enable officers to approach external funding bodies with a view to securing the anticipated multi-million pounds of investment required to deliver these works and unlock further private sector investment in the area.

SOURCE OF FUNDING:

£125,000 from the Development Team Capital Programme allocation – Capital programme approved 27/02/2013.

Cost centre: A70201

LEGAL IMPLICATIONS

Supplied by: Melinda Edwards, Solicitor, Tel: 0161 219 6286

Date Supplied: 22nd March 2013

Comments: When commissioning goods, works or services the Council must comply with the requirements of the procurement regulations and its own Contractual Standing Orders.

In that regard, Whitelaw Turkington was the lead consultant appointed to design and deliver the Greengate Square Phase 1A and 1B scheme which has recently been completed on site. This company was bought out by Grontmij in 2008.

The report confirms that when the original tender included an option to extend the contract to encompass the Greengate Square phase 2 works, subject to a satisfactory performance review.

Grontmij’s performance on Phase 1A and 1B has been assessed as excellent and it is proposed that the contract now be extended accordingly.

Provided that provision for such an extension was included in the original tender brief and contract which went out to competitive tender and that the performance of Grontmij was assessed in accordance stated criteria, the proposed extension would appear to fall within the remit of the original procurement exercise. A failure to comply with the procurement regulations or Contractual Standing Orders may result in legal challenge from an aggrieved provider.

When exercising its functions, the Council must have due regard to the Public Sector Equality Duty as set out in section 149 of the Equality Act 2010.

FINANCIAL IMPLICATIONS

Supplied by: Chris Mee (Group Accountant) ext 0434 / Janet Cross (Accountant) ext 2858

Date Supplied: 22nd March 2013

Comments: There is sufficient budget within the Central Salford & Media City 2013/12 capital programme to fund this commission.

PROCUREMENT IMPLICATIONS

Supplied by: Sharon Robson (Head of Procurement) Colette Hilton (Category Manager)

Date Supplied: 22nd March 2013

Comments: Following the successful delivery of Phase 1A & 1B public realm work, in the Greengate area, by Grontmij, we are looking to continue to build on this work by moving to Phase 2 of the project, development of Greengate Square.

Incorporated within the scope of work, as identified within the original tender specification for the appointment of consultants, was the option to extend the contract to include delivery of Phase 2, based on a satisfactory performance review. A thorough review has now been undertaken with feedback being sought from: the client, the Project Manager (Faithful and Gould) and the contractor (Carillion) and concluded that Grontmij’s overall performance was considered excellent overall.

Based on the performance review and the successful implementation of Phase 1A & 1B, we believe this approach is compliant and represents low risk in terms of procurement challenge.