Portfolio Holder – Councillor David Ellesmere
To enable the delivery of the infrastructure works at the Eastern Gateway site to serve the next occupier, Ipswich Borough Council is required to provide a fully serviced site, including a new power supply, new access road and drainage.
This report recommends that Executive grants approval of the quotation received from UKPN for the 1.75MVA supply and an exemption from contract standing orders. It also seeks approval to agree the budget for the next phase of conducting work on the access road and attenuation basin ahead of tender returns and authorises officers to award the contract should tenders be returned within budget and, as the award of this contract is urgent, to exempt the decision from call in.
In addition, it also requests authorisation to award post contract design and project management fees to the existing design team and to award a small three stage contract for groundwater investigations to Geosphere Ltd.
75.1 Councillor Ellesmere introduced the report, explaining that the Council was close to agreeing terms with a second large occupier of the site. Councillor Ellesmere noted that further infrastructure would therefore need to be delivered, to relatively short timescales. The recommendations of the report would enable these works to be delivered.
75.2 Councillor Ellesmere highlighted that it was proposed to exempt some of the decisions from call-in due to the urgency of the works starting and the delays to the Council’s call-in process which would be caused by the likely General Election.
It was RESOLVED:
a) that the acceptance of the quotation submitted by UKPN for the sum of £212,595.00 be approved and that the Head of Development, in consultation with the Operations Manager for Legal Services, be authorized to enter into a contract with the recommended provider as set out in this report.
Reason: To enable the timely delivery of the power supply to meet delivery requirements.
b) that the decision above (a) be exempted from Contract Standing Orders.
Reason: To enable the appointment of a single supplier able to conduct all the work associated with the supply of electricity to the site.
c) that the allocation of the phase 2 roadways project budget as shown in paragraph 8.2 (from existing budgetary allocations) be agreed and that the Head of Development be authorised to enter into a works contract in consultation with the Head of Governance, Leader of the Council, Chief Executive and S151 Officer, subject to the returned tenders being within the project budget above.
Reason: To enable the appointment of a works tender to be made in sufficient time to allow for the necessary work to be completed in accordance with terms agreed with the proposed purchaser.
d) that the above decision (c) be certified as urgent and exempt from call-in.
Reason: To enable the appointment of the contractors to be made in sufficient time to allow for the necessary work to be completed in accordance with terms agreed with the proposed purchaser.
The decision to make the appointments is urgent as the infrastructure for Phase 2 of the site must be completed by 31/03/2020 to comply with the proposed next land sale agreement. If the appointment is delayed it is highly unlikely that these works would be completed in time. There is also the risk of reputational damage to the Council if the infrastructure works are not completed. The impact of any delay in the appointment of the contractor could be considered to prejudice the Council’s and the public’s interest given it could lead to the Council being in breach of contract with subsequent financial consequences.
e) that £1,605,441 of existing budget for the project be brought forward from future financial years into 2019/20 in order to enable the rapid delivery of the next proposed land sale enabling works.
Reason: To enable appropriate resources to deliver the required Project Rio infrastructure contracts.
f) that the award for post contract management (inc. Project management) fees for the Phase 1 and Phase 2 roadways contracts be made to Castons for the value of £176,686 (Phase 1) and £81, 790 (Phase 2), to be funded from existing capital budgets.
Reason: To enable the appointment of a design team to be made in sufficient time to allow for the necessary work to be completed in accordance with terms agreed with the proposed purchaser.
g) that the next three stages of groundwater investigation (for the whole Eastern Gateway site) contracts be awarded to Geosphere Ltd. to the value of £34,370 to be funded from the existing capital project budget.
Reason: To enable the appointment of a geotechnical specialist to be made in sufficient time to allow for the necessary work to be completed prior to a tender process for further geotechnical investigations and works contract to satisfy the requirements of the Environment Agency.
h) that the decision above (g) be exempted from Contract Standing Orders.
Reason: To enable the appointment of a single supplier able to conduct the groundwater investigations prior to a design and tender process for wider project contracts.