Agenda pack
North Lanarkshire Council · 18 November 2022
Back to Enterprise and Fair Work Committee — 18 November 2022 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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Our Ref: Your Ref: Contact: Tel: Fax: E-Mail: Date: Clare Louise McDonald 0 mcdonaldcl@northlan.gov.uk 9 Nov 2022 Members of the Enterprise and Fair Work Committee Chief Executive’s Office Archie Aitken Head of Legal & Democratic Solutions Civic Centre, Windmillhill Street Motherwell ML1 1AB DX 571701, Motherwell 2 www.northlanarkshire.gov.uk Notice is given that a Meeting of the ENTERPRISE AND FAIR WORK COMMITTEE is to be held within the Council Chamber, Civic Centre, Motherwell on Friday, 18 November 2022 at 10:00 am which you are requested to attend. The agenda of business is attached. Head of Legal and Democratic Solutions Members : Councillors: A Bustard, D Crichton, P Di Mascio, K Docherty, K Duffy, H Dunbar, J Hume, A Khan, J Leckie, G Lennon, J Logue, A Magowan, A Masterton, F McNally, M McPake, L Mitchell, L Nolan, P Patton, G Robinson, A Smith, K Stevenson, R Sullivan, J Toner, S Watson, C Williams. Page 1 of 65
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AGENDA (1) Declarations of Interest in terms of the Ethical Standards in Public Life Etc. (Scotland) Act 2000 OPERATIONAL (2) City Deal Programme Update (page 5 - 14) Submit report by the Head of Planning and Regeneration providing an update on the current status of the North Lanarkshire City Deal Infrastructure subprojects (copy herewith) (3) Energy Audit Voucher Scheme (page 15 - 20) Submit report by the Head of Planning and Regeneration seeking approval to establish a new energy audit voucher scheme for North Lanarkshire based small to medium sized businesses (copy herewith) PERFORMANCE (4) Fusion Assets' Performance and Financial Monitoring Report (page 21 - 36) Submit report by the Head of Planning and Regeneration outlining the operational performance of Fusion Assets up to 30 September 2022 and detailing key highlights achieved during 2021/22 (Quarters 3 & 4) and 2022/23 (Quarters 1 & 2). (copy herewith) CONTRACTS (5) Contract Award - Enterprise Backup Solution (page 37 - 46) Submit report by the Head of Business Solutions seeking approval to award the contract for an Enterprise Backup Solution to Softcat Plc (copy herewith) (6) Contract Award - Greenspace Development Framework (page 47 - 58) Submit report by the Head of Planning and Regeneration seeking approval to award the Framework Agreement for Greenspace Development Framework to Project Centre Limited (copy herewith) (7) Business Gateway Lanarkshire Contract Extension (page 59 - 65) Submit report by the Head of Planning and Regeneration advising of action taken by the Convener to extend the Lanarkshire Business Gateway contract to 29 February 2024 (copy herewith) Page 3 of 65
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North Lanarkshire Council Report Enterprise and Fair Work Committee Does this report require to be approved? ☐ Yes ☒ No Ref EPT/LN Date 18/11/22 Programme of Work PO21 - City Deal Programme Update From Pamela Humphries, Head of Planning and Regeneration E-mail NobleLy@northlan.gov.uk Telephone Lyndsay Noble 07970016256 Executive Summary The North Lanarkshire City Deal Programme Update report seeks to inform the Enterprise and Fair Work Committee of the current status of North Lanarkshire City Deal Infrastructure subprojects. Recommendations It is recommended that the Committee: 1) Note the status and recent progress of the North Lanarkshire City Deal infrastructure subprojects. The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes Ambition statement (5) Grow and improve the sustainability and diversity of North Lanarkshire's economy AGENDA ITEM 2 Page 5 of 65
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1. Background 1.1 The Glasgow City Region (GCR) City Deal is an agreement between the UK and Scottish Governments and the eight GCR Local Authorities, with the sole focus of creating additional economic growth. The 20-year GCR Deal was accepted by GCR Council Leaders on 20 August 2014 and incorporated: • implementing a £1.13bn Infrastructure Fund to improve the regional transport network, regenerate sites for economic use and improve public transport provision; • supporting growth in the life sciences sector; • helping small and medium enterprises to grow and develop; • establishing programmes to support the unemployed; and • piloting new ways of boosting the incomes of low wage employees. 1.2 The City Deal programme for North Lanarkshire as part of the Infrastructure Fund comprises the following projects: • A8/M8 Corridor Access Improvements o Strategic Active Travel (Eurocentral Park and Ride deferred) o Orchard farm Roundabout • Glenboig Link Road (complete) • Pan-Lan Orbital Transport Corridor o East Airdrie Link Road o Ravenscraig Access Infrastructure o Motherwell Town Centre Transport Interchange 2. Report 2.1 Motherwell Town Centre Transport Interchange (MTCTI) 2.1.1 The redevelopment of Motherwell Rail Station by ScotRail’s appointed contractor, Balfour Beatty, is significantly underway however is experiencing delay. Work is progressing on the station frontage, internal concourse area and construction of the new retail space. Access to the station and platforms for passengers will continue to be maintained throughout the improvements. 2.1.2 Balfour Beatty have also been appointed by the council to undertake the improvement works to Muir Street comprising expansion of the bus stop; provision of a new access road to Motherwell Rail Station with new taxi rank and public realm improvements. 2.1.3 Both the Motherwell Rail Station and Muir Street contracts were scheduled to be complete by July 2022. Due to delays in delivering the station contract, works are now expected to continue until early next year, with the Muir Street works expected to be complete by the end of the calendar year. The council are working with Balfour Beatty to examine solutions to minimise the impact of delays of the station works on the Muir Street contract and the town centre. Progress on formation of the new bus bays has been delayed and it is now aimed that the expanded bus stop, and refurbished bus shelter will be reopened by November 2022. It is anticipated that the new access road and new taxi rank will open in December 2022, with small areas of remaining works completed after the new station roof is installed and widened station forecourt is complete. It is aimed that all works will be completed by early 2023. Page 6 of 65
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2.1.4 Construction access and pedestrian management arrangements are being coordinated between the contracts, to minimise disruption. Some road closures of short duration have been put in place to date for the Muir Street works to carry out some activities safely. Further road closures will be needed to complete work on expanding the bus bays. For each road closure, advance notification is provided to local businesses and the public (through signage on site, website updates and other communication channels). Road closures are arranged at weekends to minimise disruption to the town centre. Officers within the Enterprise Projects Team are working with the communication team at Balfour Beatty and the Motherwell Rail Station Communications Group to ensure that communications are coordinated across both contracts. 2.1.5 A Community Benefits Plan has been agreed with Balfour Beatty for the contract. To date, a number of skills, employability and training initiatives have been delivered, including a careers event, work experience placements and mock interviews. An initiative has been delivered with Our Lady’s High School and a commitment made to support five local community projects, with arrangements for delivery now in place with each group. These projects were identified in consultation with the Motherwell Community Board. 2.2 Ravenscraig Access Infrastructure 2.2.1 The Ravenscraig Access Infrastructure project comprises three projects: • a new road connection between Motherwell and Ravenscraig from Airbles Road, passing under the West Coast Main Line railway, and on to the Regional Sports Facility • completing the dualling of Airbles Road between Airbles Farm Road and Hamilton Road and improving facilities pedestrians and cyclists • upgrading the A723 for three kilometres from the New Craig Road junction at Ravenscraig to the M8 at Holytown to create a dual carriageway and shared footway/cycleway 2.2.2 The project will be delivered in phases beginning with the new rail bridge for the future connection between Motherwell and Ravenscraig. 2.2.3 Good progress continues to be made by Story Contracting, with the construction of the rail bridge currently running ahead of programme. Whilst not shortening the overall programme, this does provide greater programme contingency for the works that are required to take place over the winter and ahead of the track closure in April 2023. 2.2.4 In preparation for the next phases of works, the project team: • Are continuing to prepare the detailed specifications and tender documents for the procurement of the new connection from Ravenscraig to Motherwell - the tender is expected to be published in January (owing to delays on confirming final arrangements for utilities). The contract is expected to awarded and commence in the summer 2023 following City Deal and Committee approval and once the bridge is fully complete. • have completed the demolition and clearance of the former Dellburn Trading Park allowing Story Contracting to begin preparations of the west side of the railway; • continue to seek to negotiate with all other owners and occupiers for the remaining land required to deliver all parts of the Ravenscraig Infrastructure Access project - acquisitions are reported to, and approved as required by, Finance and Resources Committee; and Page 7 of 65
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• have begun refining and developing the detailed proposals for the dualling of the A723 from Ravenscraig to the M8 at Holytown following the appointment of Amey in June. 2.2.5 Related to this project, a planning application has been submitted for an alternative location for the Evans Halshaw Ford car dealership which, if permitted, will allow the business to be retained within Motherwell, following relocation to facilitate the new road connection between Motherwell and Ravenscraig. 2. 3 East Airdrie Link Road 2.3.1 East Airdrie Link Road will provide a new strategic link between the M8 and south Cumbernauld. Following a detailed Stage 2 option appraisal, and a further review of the emerging option, a preferred route has now been agreed. Feedback from Stage 2 public consultation has been reviewed and will help inform the project moving forward. Further public consultation has taken place from November 2022 for 6 weeks on the preferred route and on the environmental report as part of the Strategic Environmental Appraisal. 2.3.2 A section of the preferred route has been realigned to accommodate the proposed Monklands Hospital replacement project. The project team continue to liaise with NHS Lanarkshire to ensure coordination, secure efficiencies and to maximise benefits. 2.3.3 In line with previous approvals, the procurement for professional services to develop and deliver the EALR including design and engineering, cost consultancy, project and contract management together with site supervision and quality control for the preferred route has commenced. The outcome of this procurement activity will be brought back to Committee in line with General Contract Standing Orders. 2.4 Orchard Farm Roundabout 2.4.1 The ‘A8/M8 Corridor Access Improvements’ Outline Business Case (OBC) including the Orchard Farm Roundabout was approved by the GCR Cabinet on 30 August 2022. As reported, the scope of the Orchard Farm Roundabout project comprises a financial contribution of £2m to the developer for the construction of the junction on the A8. The roundabout secured Planning consent in January 2020 and supporting technical approvals including a Minute of Agreement with Transport Scotland have been secured by the developer or are in final stages of agreement. 2.4.2 The Orchard Farm Roundabout is a new junction on the A8 All Purpose Distributor Road and critically supports the development of the Mossend International Rail Freight Park (MIRP) and provides important access to a number of development sites to the north of the A8/M8. 2.4.3 MIRP is a low carbon rail-based infrastructure project with a significant co-located logistic park development. Peter D Stirling Limited (railfreight terminal operator/landowner) and Mount Park (new landowner) seek to develop the Mossend Railfreight Terminal into a European scale railfreight terminal and distribution park with all-electric facilities. MIRP is one of very few sites within the UK that can offer integrated multi-modal logistics of this scale, quality and economic value. The MIRP supported the bid for the Clyde Green Freeports. Page 8 of 65
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2.4.4 The OBC and proposed Full Business Case (FBC) will be underpinned by a funding agreement between the council and the developer/s and will establish funding arrangements, obligations and key milestones. The remainder of the costs and any associated delivery risks relating to the delivery of the infrastructure will be met by the developer/s. The infrastructure will form part of the strategic road network and will fall under the responsibility of Transport Scotland. 2.4.5 It is proposed to submit the Full Business case (FBC) for the Orchard Farm Roundabout for approval to the GCR Chief Executive’s Group during 23/24. The FBC will report on the procurement of the new Junction and associated works and is the final stage in the funding approvals to allow for contract award and the delivery of the infrastructure to progress. Agreement will be sought from Committee to submit the FBC to the GCR Chief Executives Group for approval in due course. 2.5 Eurocentral Park and Ride 2.5.1 A change control has been approved by the GCR Cabinet to defer the Eurocentral Park and Ride sub project within the NL City Deal Programme. This follows a feasibility study recommendation that there is insufficient demand for this use at this location at this time. 2.5.2 An updated options appraisal for the Eurocentral sub-project took place, to assess other infrastructure options that can be delivered now to improve sustainable transport connections to Eurocentral/Maxim Office Park and Newhouse from surrounding local areas and the wider region. The need for sustainable transport improvements has been identified, to remove barriers to accessing jobs at these strategic employment locations. 2.6 A8/M8 Corridor Strategic Active Travel 2.6.1 The provision of Strategic Active Travel Links, connecting Eurocentral/Maxim Office Park/Newhouse and Mossend to surrounding local communities and local rail stations has been approved by GCR Cabinet on 30 August as the new preferred option for the Eurocentral sub-project. This has been prioritised over the Park and Ride to ensure needs can be met now and to maximise the City Deal funding. 2.6.2 The routes identified are to the south of Eurocentral between Bellshill and Newhouse via Holytown and to the north of Eurocentral linking Whifflet rail station with the M8 Cycle Route at Shawhead and leading to Eurocentral and Maxim Office Park. These routes are designated as Strategic Network Routes within the North Lanarkshire Active Travel Strategy. 2.6.3 In total, it is aimed to deliver 10km of shared use walking and cycling routes with City Deal investment. The routes link with other planned active travel route improvements as part of the Ravenscraig Infrastructure Access and East Airdrie Link Road projects. There are also opportunities to seek match funding from other external funding sources to expand the scope of the project to connect more communities to employment opportunities. 2.6.4 Further feasibility and design work is required to develop the active travel routes. With the approval of the A8/M8 Corridor Access Improvements OBC, it is planned to appoint consultants to progress detailed design work in early 2023. It is then intended, subject to Committee approval, to submit the sub-project Full Business Case in early 2024 and commence work on site in Spring 2024. Page 9 of 65
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3. Measures of success 3.1 As the second largest Local Authority within the GCR, North Lanarkshire’s residents and businesses will directly benefit from the City Deal through: • creation of 2,000 new workplace jobs, representing a 1.6% uplift in the future jobs growth forecast for North Lanarkshire; • a significant share of some 15,000 temporary construction jobs anticipated to be generated by the development of the Infrastructure Investment Fund projects – construction being a predominant local employment sector; • estimated 9.2% of North Lanarkshire working age residents having heightened access to employment opportunities within the wider GCR area; • additional tender opportunities as a result of GCR City Deal investment for North Lanarkshire Business and SME’s; • community benefits derived from all GCR City Deal contracts awarded over £50,000; and • a proportionate share of the £2.2bn per annum Gross Value Added (GVA) increase in the GCR area over the lifetime of City Deal, equivalent to 4% uplift in the region. 4. Supporting documentation 4.1 No supporting document presented. Pamela Humphries Head of Planning and Regeneration Page 10 of 65
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The City Deal Cabinet has agreed that Inclusive Growth is to be fully embedded within the GCR City Deal programme delivery and that it is also committed to supporting the delivery of the Fairer Scotland Action Plan. Future NLC subproject OBC/FBC development will be scrutinised to ensure it meets the duties of the Fairer Scotland Action Plan. If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☒ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The North Lanarkshire Council City Deal Programme approved funding allocation across the 3 headline projects is as: • A8/M8 Corridor Access Improvements £6,478,521 • Glenboig Link Road (complete) £6,223,205 • Pan-Lan Orbital Transport Corridor £215,696,493 The City Deal funding comprises funding from the GCR City Deal Infrastructure Fund (£148,956,293) and North Lanarkshire Council (£79,441,926). The financial implications of the City Deal Programme are incorporated within the Council’s Long- term Financial Plan and to date budgetary implications have been approved by the Policy and Strategy Committee. 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Page 11 of 65
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Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? All infrastructure projects developed by the Council as part of the GCR City Deal will be subject to relevant environmental and sustainability appraisal and as part of subsequent planning application approvals and procurement. Furthermore, to adhere with HM Treasury Greenbook best practice, each iteration of project business case seeking GCR City Deal funding will include a review of the sustainability considerations, this will include carbon management, involving categorisation, assessment and mitigation. 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The City Deal programme and the delivery of the projects will continue to be promoted through Corporate Communications and the Glasgow City Region’s Communications team. Specific to Muir Street Improvements, a joint communications group with Scotrail, Transport Scotland and North Lanarkshire Council has been set up to coordinate Page 12 of 65
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communication and promote the Motherwell Station redevelopment and the City Deal Muir Street improvements. 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? A key risk for the City Deal Programme is the current global economic climate and its short and long term impacts on the delivery of the city deal projects. This risk is becoming a live issue for the Programme and will be assessed and recorded within the City Deal Issues Register. This is not unique to City Deal and the approach to this risk and issue management will be carried out in conjunction with Finance and the Glasgow City Region Project Management Office. Risk management of North Lanarkshire’s City Deal activity is incorporated within the council’s City Deal programme risk register which is reviewed by the City Deal Manager and reported to the council’s City Deal Board. The City Deal risks are also integrated in the Planning and Regeneration Service Risk Register. Each City Deal sub project has a detail risk register and is managed by the Project Manager. Page 13 of 65
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North Lanarkshire Council Report Enterprise and Fair Work Committee Does this report require to be approved? ☒ Yes ☐ No Ref PH/YW Date 18/11/22 Energy Audit Voucher Scheme From Pamela Humphries, Head of Planning and Regeneration E-mail weiry@northlan.gov.uk Telephone Yvonne Weir Enterprise Manager 07508 001238 Executive Summary The purpose of this report is to seek approval to establish a new energy audit voucher scheme for North Lanarkshire based small to medium sized businesses which will provide up to £2,500 of financial support. The scheme aims to fund the costs associated with an energy audit to support businesses to save money on their energy bills and help them reduce their carbon emissions and help tackle climate change. Recommendations It is recommended that Committee: 1) Considers the contents of this report; and 2) Approves the proposal to establish an Energy Audit Voucher Scheme. The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes Ambition statement (5) Grow and improve the sustainability and diversity of North Lanarkshire's economy AGENDA ITEM 3 Page 15 of 65
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1. Background 1.1 In February 2022, COSLA Leaders and Scottish Ministers agreed an £80m Local Authority COVID Economic Recovery Fund (LACER) to be provided to Councils. North Lanarkshire Council was allocated £5,149,000 from the national LACER Fund. 1.2 The funding is flexible and designed to empower local authorities to utilise funding where they consider this necessary or justified based on local circumstances. The guiding policy intent of the funding is to support local economic recovery and was acknowledged that Local Authorities are best placed to understand the needs of businesses and therefore will need flexibility to design and deliver interventions that best meet that local need. 1.3 Through the Local Authority Covid Economic Recovery (LACER) Fund, the Council allocated £1.750m for business growth and recovery linked to additional business start- up funding, expansion of business growth and recovery funding, support for energy efficiency audits and a temporary rates relief fund. While these measures were considered as part of the recovery from Covid they will also have some impact in supporting businesses with the cost-of-living crisis. 2. Report 2.1 Following dramatic changes in the energy market, caused by global events such as the war in Ukraine, businesses have faced significant increases in their energy bills such that for many the increases threatened their viability leading to potentially significant job losses. 2.2 Subsequently, on 21st September 2022, the UK government announced the Energy Bill Relief Scheme that details support for everyone on a non-domestic energy contract including: • businesses • voluntary sector organisations, such as charities • public sector organisations such as schools, hospitals and care homes who are: • on existing fixed price contracts that were agreed on or after 1 December 2021 • signing new fixed price contracts • on deemed / out of contract or variable tariffs • on flexible purchase or similar contracts The new measures will be applied to energy bills from October 1st and will last until 31st March. 2.3 With support only provided for six months it is imperative businesses in North Lanarkshire are provided with support to see how they can better utilise their energy usage to reduce their costs and improve the sustainability of their operations beyond the end of the Energy Bill Relief Scheme, should energy market conditions not have improved. 2.4 It is proposed to launch an Energy Audit Voucher Scheme to provide grant support to help businesses address specific, immediate priorities in direct response to the Page 16 of 65
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combined challenge of the rise in energy costs and the Climate Change Emergency, thereby enabling businesses to gain a bespoke audit of their business, buildings, processes, and practices to enable them to make changes that will reduce energy consumption and reduce their carbon footprint. 2.5 Specifically, eligible businesses can apply for grant funding to commission suitably qualified consultants to undertake an energy audit to: • Identify where large amounts of energy are being consumed and provide guidance of how to reduce energy consumption; • Investigate interventions to building infrastructure and that could reduce energy consumption and reduce the business’ carbon footprint; and • Advice on how to adapt their business model to deliver a new or amended service/product offering that reduces energy consumption. 2.6 The Energy Audit Voucher focusses on providing grant funding as a contribution towards the energy audit interventions outlined in 2.5. Grants will provide 100% of these costs (excluding VAT), up to a maximum grant award of £2,500 with one application per business permitted. 2.7 Applicant businesses (including social enterprises) must be based in North Lanarkshire and operate from commercial premises. Home-based businesses will not be eligible. Eligible businesses must also be a micro, small or medium-sized enterprise (up to 250 employees). 2.8 Where specific improvements requiring further capital or infrastructure expenditure are identified within the audits, officers will work with the organisation to identify potential sources of funding from both the council and other organisations. This will include the council’s Business Recovery and Growth Fund which can provide up to 50% towards eligible projects costs with a maximum of £50,000 award available over a rolling 2-year period. 3. Measures of success 3.1 North Lanarkshire Council continues to play a leading role in supporting local Small to Medium-sized Enterprises (SMEs) and aiding their sustainability, growth and prosperity. The Energy Audit Voucher Scheme will ensure a minimum of 100 businesses receive an Energy Audit, providing them with actionable ways to reduce their operating costs. 4. Supporting documentation 4.1 None. Pamela Humphries Head of Planning and Regeneration Page 17 of 65
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☐ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The total budget for the programme is £250,000 which is funded entirely through the Local Authority COVID Economic Recovery (LACER) funding received by the council from the Scottish Government to support local economic recovery. 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☒ No ☐ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☒ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ Page 18 of 65
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5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? Businesses will receive support to identify ways they can save and better utilise energy which should result in reductions in carbon emissions. 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The Energy Audit Voucher Scheme will be published on the council’s website and promoted on social media channels. 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? The key risks which are assessed and recorded in the Service Risk Register are as follows: - Fraud: The council has robust grant processes in place. Grants are paid retrospectively following evidence of expenditure by the business. - Eligibility of grants for the scheme conditions. All grants are checked for compliance prior to payment to ensure there is no risk of non-compliance with funding rules and regulations. Page 19 of 65
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North Lanarkshire Council Report Enterprise and Fair Work Committee Does this report require to be approved? ☐ Yes ☒ No Ref PH/DG Date 18/11/22 Fusion Assets’ Performance & Financial Monitoring Report From Pamela Humphries, Head of Planning and Regeneration Email Greerd@nothlan.gov.uk Telephone David Greer Growth Programme Manager tel. 07583 059816 Executive Summary This report provides details of the operational performance of Fusion Assets Ltd. (Fusion Assets) during 2022/23 (up to 30th Sept 2022), outlines a range of economic outputs and outcomes being delivered through this Arms Length Organisation (ALEO) and details key highlights achieved during 2021/22 (Q3 & 4) and 2022/23 (Q1 & 2). The report also details the financial performance of Fusion Assets between April 1st 2021 and June 30th 2022, their overall current financial standing and future financial projections. Recommendations It is recommended that committee: 1) Note the content of this report and the operational targets set for Fusion Assets during 2022/23 and performance against these to 30th September 2022 (as outlined in Appendix 1); 2) Note the financial performance of Fusion Assets (April 1st 2021 to June 30th 2022), their overall current financial standing and future financial projections as detailed in 2.2; and 3) Note the key highlights achieved during 2021/22 (Q3 & 4) and 2022/23 (Q1 & 2). The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes Ambition statement (3) Maximise the use of our marketable land and assets through improved development in business and industrial infrastructure AGENDA ITEM 4 Page 21 of 65
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1. Background 1.1 Fusion Assets is a wholly owned subsidiary of the council. It focuses on delivering physical economic regeneration projects across North Lanarkshire and in particular industrial development – a market where there is currently limited speculative development. Unlike more traditional council owned property companies, Fusion Assets is more similar to an urban regeneration company whose role is focused on the redevelopment of vacant and derelict land and brownfield sites rather than commercial property management. 1.2 It should be noted that Fusion Assets does not receive an on-going or recurring management fee from the council for the delivery of services but rather uses grant funding from the council’s annual Vacant & Derelict Land Fund (VDLF) allocation from the Scottish Government as enabling investment for the acquisition and redevelopment of vacant and derelict land sites. In taking this forward, Fusion Assets has developed a unique and innovative development model where the value of acquired/remediated land sites, together with other loan funding and Fusion’s reserves, is used as equity to set up joint venture partnerships with the private sector that will fund and manage the commercial redevelopment of sites for industrial use. Once industrial units are complete and let/partially let, unless restricted by the terms and conditions of any grant funding, this asset is sold to a private sector investor with returns used to pay off loan funding and re-invested in future regeneration projects. 1.3 Fusion Assets’ operational and financial performance was previously considered by the former ALEOs and External Bodies Monitoring Sub Committee. Following changes to the council’s Scheme of Administration, responsibility for oversight of service delivery by arm’s length bodies now rests with the relevant service committee. The functions delivered by Fusion Assets on behalf of the council fall within the Terms of Reference of the Enterprise and Fair Work Committee. 1.4 In addition to performance monitoring by service committees, the Audit and Scrutiny Panel holds responsibility for ensuring the effectiveness of the administrative and financial governance of all of the council’s ALEOs (including Fusion Assets) whilst the Policy and Strategy Committee retains responsibility for considering the outputs from reviews by the council into its arm’s length delivery arrangements, including recommendations in relation to Best Value and potential future delivery options. 2. Report 2.1 Operational Performance Indicators 2.1.1 Fusion Assets’ 2022/23 annual targets and performance indicators are shown in Appendix 1. These indicators have been developed to show this company’s contribution to North Lanarkshire’s wider economy as well as the council’s strategic priorities. 2.1.2 Appendix 1 also details the external funding leverage secured by this company in relation to completed industrial developments. 2.2 Financial Performance Indicators Financial Performance 1 April 2021 to 31 March 2022 2.2.1 The company’s draft unaudited annual accounts to 31 March 2022 reports a projected net surplus of £0.557m. In respect of the underlying operational performance, this was Page 22 of 65
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a net surplus of £0.072m, which is a favourable variance of £0.224m on a net operating expenditure budget of £0.153m. Accounting adjustments resulted in additional £0.485m surplus, primarily due to impacts of updated land valuations. A summary is provided at Appendix 2 along with previous year comparator outturn position. Financial Performance 1 April 2022 to 30 June 2022 2.2.2 The company has approved a 2022/23 operating budget with projected net operating cost of £0.135m, which is a decrease of £0.017m on the 2021/22 budget. This is primarily due to projected increased income of £0.026m partly offset by increased expenditure of £0.009m. For 2022/23 the company has also been successful in securing a VDLF grant via the Council of £1.938m. Overall Financial Standing as of 30th June 2022 2.2.3 Appendix 3 gives an update on the overall financial standing of the company as of 30th June 2022, together with further information and previous year’s comparator figures. As can be seen, a healthy current asset to liability ratio of 2.05 is reported which gives assurance the company has sufficient resources to meet its commitments. 2.2.4 Based on their financial statements to 30th June 2022, Fusion Assets is currently projecting a minor overspend of £0.001m. A summary is provided at Appendix 4 along with previous year comparator outturn position. Capital Development Expenditure/Projection 2.2.5 Reflecting the long-term regeneration and project-based nature of Fusion Assets, the company’s project (capital) development expenditure is monitored cumulatively with spend on all projects fully tracked back to each project’s inception. The summary financial position of the projects is outlined in table 1 below. Table 1 – Capital Development Expenditure/Projection Budget Actual Projection Variance (Budget v Projection) £ £ £ £ Expenditure (VDLF & Non VDLF) (19,142,930) (17,295,738) (19,441,491) (298,561) Income (VDLF & Non VDLF) 23,631,295 17,517,827 24,324,483 693,188 Net (Cost)/Surplus 4,488,365 222,079 4,882,992 394,626 2.2.6 As outlined above, cumulative expenditure of £19.142m has been approved by Fusion Asset’s board, which will be met from budgeted income of £23.631m, a combination of VDLF grant, Regeneration Capital Grant Fund (RCGF) funding, anticipated capital receipts and Fusion Assets’ own resources. An overall surplus of £4.883m is currently projected, which is an increase of £0.339m from previously reported. These are estimates reflecting current valuations of land transfers and receipts from onward sales, which may fluctuate, impacting the surplus projected. Page 23 of 65
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2.2.7 As of 30 June 2022, net surpluses of £0.222m are reported, with a projected £2.146m of expenditure to be incurred on pre-development and building works. Further receipts of £6.806m are still anticipated, mainly from the onward sale of developments and VDLF funding. 2.2.8 However, the total development investment of the current portfolio is in the order of £40m, which predominantly rests with the joint venture companies and excludes some £9m of pre-development works funded through VDLF grants. Fusion Assets’ share of total development costs will be in the order of £7-8m and will consist of a mixture of land, cash contributions and recycled receipts. Cash Flow Forecast to June 2024 2.2.9 Fusion Assets requires effective cash management to support its development programme and therefore the cash position is closely monitored. The cash balance as at 30th June 2022 totalled £3.199m. The cash flow forecast to June 2024 is illustrated within Appendix 5. Based on estimated expenditure and receipts, the forecast demonstrates that there is sufficient funding available to carry out the proposed development programme. The lowest cash balance is forecast at £1.949m in December 2022, with the balance reaching a high of £3.412m in May 2023. 2.3 Key Achievements & Highlights (2021/22 – Q 3&4 and 22/23 Q1 & 2) 2.3.1 In early 2022, Gartcosh Estates LLP (a joint venture between Fusion Assets and Smart & Co.) completed the construction of the remaining 2 industrial units (totalling 40,500 sqft in size) of Phase 1, Gartcosh Business Interchange. Whilst there have been no lettings of these 2 units to date, there remains interest in both with Heads of Terms currently issued to several parties. Also at Gartcosh, Fusion Assets completed the purchase of the remaining 3.67 hectares of land from Scottish Enterprise that makes up Phase 3 and Phase 4 of this development. Once remediated and serviced, this could accommodate a further 102,000 sqft of industrial and commercial floorspace which equates to approximately 200 FTE jobs. 2.3.2 During 2022/23 Fusion Assets has also carried out a sustainability review of its activities and adopted a new ESG (Environmental Social and Governance) Policy and Action Plan to reduce its carbon footprint and transition to a net zero operational model. The net zero carbon pathway and delivery strategy will ensure that Fusion Assets maintains a commitment to the wider sustainability agenda as well as progressing with its local economic development objectives. 2.3.3 As a demonstration of its commitment to embed ESG and sustainability principles within its regeneration and development operations, Fusion Assets is currently out to tender for the construction of a new flagship development at Link Park, Newhouse. The new commercial building – a speculative 16,000 sqft unit to be built on a brownfield site remediated through North Lanarkshire Council’s VDLF programme, will incorporate a wide range of energy saving features. This includes solar PV panels on the roof, enhanced insulation panels and cladding, low energy LED lighting, EV charging points and the ability to introduce a heat recovery system in place of a gas connection. This new building will be funded through the land investment sale (recycled receipt) of the new £12M Co-Op ‘Dekit’ Facility which is under construction on the adjacent site at Link Park and is being built out under a development agreement between Fusion Assets and Tulchan/Newlands Developments. Page 24 of 65
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3. Measures of success 3.1 Fusion Assets’ measures of success are reflected in the level of physical regeneration works which they deliver together with economic outcomes achieved from investment made. For 2022/23 this includes: • the acquisition, remediation and improvement of Phase 3 and 4 of Gartcosh Business Interchange (3.67ha); • the acquisition of Plot 1 – Ravenscraig Industrial Park (circa. 2 ha); and • the procurement of a Joint Venture Partnership to take forward the redevelopment of Condor Park, Euocentral. 4. Supporting documentation Appendix 1: Fusion Assets Ltd - 2022/23 Performance Measures, Targets and Outcomes Appendix 2: Fusion Assets Ltd - Financial Performance as at 31st March 2022 Appendix3: Fusion Assets Ltd - Overall Financial Standing as at 30th June 2022 Appendix 4: Fusion Assets Ltd - Financial Performance as at 30th June 2022 Appendix 5: Fusion Assets Ltd - Cashflow Forecast as at 30th June 2022 Pamela Humphries Head of Planning and Regeneration Page 25 of 65
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? 5.1.1 Promoting inclusive growth sits at the heart of the council’s Ambition Programme. Fusion Assets will contribute towards this goal through the delivery of activity that supports the council to meet its Fairer Scotland Duty and address socio-economic disadvantage by: • promoting and enabling investment that will create and improve access to new and better employment opportunity; and • working as part of North Lanarkshire’s ERDP Business &Industry Group to ensure effective linkage between economic opportunity, skills and work-force development. 5.1.2 Fusion Assets also aim to ensure that any potential adverse equalities impacts as a result of policy and/or plans developed are minimised or negated where possible. If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☐ No ☒ 5.2 Financial impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? Fusion Assets does not receive an on-going or recurring management fee from the council for the delivery of services but rather uses grant funding from the council’s Vacant & Derelict Land Fund (VDLF) allocation as enabling investment for the acquisition and redevelopment of vacant and derelict land sites. The council did, however, award Fusion Assets £1.4M through the 2021/22 VDLF Programme and a further £1.938M through the 2022/23 Programme for a variety of industrial development projects. 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Page 26 of 65
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Yes ☒ No ☐ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? Legal and Democratic Services provide Fusion Assets with third party Vacant & Derelict Land Fund grant agreements. 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☒ No ☐ The environmental impact of any projects progressed by Fusion Assets has/will be assessed as part of the business case process. 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? Fusion Assets’ risk register review has been uploaded to the council’s Fig Tree Risk Register and is reviewed annually. Page 27 of 65
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Appendix 1 Fusion Assets Ltd - 2022/23 Operational Performance Measures, Targets and Outcomes Area of Activity Performance Indicator 2022/23 Target Outcome Outcome Achieved To Date Comments Cumulative Total (Since 2011) Improve economic opportunities and outcomes Support development of strategic investment sites, Enterprise Areas and industrial parks Number of infrastructure works to support strategic industrial sites 2 0 The contract is let for infrastructure works on Gartcosh Phase 3 & 4 but work has still to start on site. The planning application for infrastructure works at Ravenscraig Plot 1 is due to be submitted in October 2022. 8 Area of Activity Performance Indicator 2022/23 Businesses Accommodated by Site as at 30th September 2022 Comments Cumulative Total (Since 2011) Support businesses in expansion and development Number of new gross businesses re-located T A R G E T Dundyvan Enterprise Park N/A A C T U A L Dundyvan Enterprise Park N/A Dundyvan Enterprise Park was sold in early 2018 and Western Campus in October 2019. Businesses accommodated at these sites have not been counted from date of sale. Link Park : The 47,500sqft building on Plot A2 is pre-let but still under construction – completion scheduled for December 2022. Gartcosh - buildings 2 & 3 completed but still to be let 13 Western Campus N/A Western Campus N/A 12 Drumpellier N/A Drumpellier N/A 4 Link Park 1 Link Park 0 4 Gartcosh (Phase 1) 2 Gartcosh (Phase 1) 0 1 Total Number of businesses accommodated when properties under ownership of Fusion Assets/Fusion Assets JV. 34 Page 28 of 65
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Area of Activity Performance Indicator 2022/23 Number of Gross Jobs Created by Site as at September 30th 2022 Comments Cumulative Total (Since 2011) Enhance the number of direct, indirect and induced jobs Number of new direct gross jobs created (FTE) TARGETS ACTUAL Dundyvan Enterprise Park N/A Dundyvan Enterprise Park N/A Dundyvan was sold in 2018 and Western Campus in 2019. Jobs created since date of sale have not been included. Targets based on employment densities for Light Industrial use 119 Western Campus N/A Western Campus N/A 166 Drumpellier N/A Drumpellier N/A 43 Link Park 50 Link Park 0 63 Gartcosh (Phase 1) Buildings 2 & 3 80 Gartcosh (Phase 1) Buildings 2 & 3 0 25 Total Number of gross jobs created when properties under ownership of Fusion Assets/Fusion Assets JV. 416 Area of Activity Performance Indicator 2022/23 Target Outcome (ha) Actual Outcomes as at 30th September 2022 Comments Cumulative Total - ha (Since 2011) Improve the health and wellbeing of our communities Improve brownfield and vacant & derelict land Total of vacant and derelict land improved (ha) 3.18 0 Target – Gartcosh Phase 3 & 4 developable land 12.62 Vacant & derelict land sites removed from register Total of vacant and derelict land taken off register (ha) 1.04 1.04 Previous land removed to date includes from Dundyvan Enterprise Park, Western Campus, Link Park (part) and Drumpellier Business Park (part) and Gartcosh Phase 1 (part). Remainder of Gartcosh Plot 1 to be removed from register in 2022/23 3.76 V&DL acquired for commercial development V&DL acquired (ha) 2.0 0 Target relates to Ravenscraig Plot 1 – circa 2ha. 15.54 Page 29 of 65
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Area of Activity External Funding Leverage by Fusion Assets (Completed Projects) Comments Cumulative Total (Since 2011) Improve North Lanarkshire’s Resource Base Leverage on Council Investment Project Dundyvan Western Campus Gartcosh Phase 1 Drumpellier Link Park – excluded until full development completed/financed Gartcosh Phase 1: Excludes VDLF investment made in Phase 1B as this not currently financed. NLC secured an additional £108,000 capital receipt from NLC’s purchase of site for Gartcosh Phase 2. Total Total Project Spend £2,985,993 £4,209,915 £5,541,621 £1,646,596 £14,384,125 VDLF £162,917 £748,564 £976,000 £300,000 £2,187,481 NLC N/A £99,351 N/A N/A £99,351 RCGF N/A N/A N/A £1,116,591 £1,116,591 Private Sector £387,750 £631,000 £857,000 £115,000 £1,990,750 Fusion £530,326 £631,000 £524,000 £115,000 £1,800,326 Loan Finance £1,905,000 £2,100,000 £3,184,621 N/A £7,189,621 Ratio of Leverage achieved from NLC investment (including VDLF Funding) 18:1 5:1 6:1 5:1 6:1 Page 30 of 65
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Forecast GVA & Employment Impact of Projects Completed to Date Development Name Construction Spend *1 Construction Jobs (PYE) Construction Impact – GVA (£) *2 Employment By 2030*3 GVA Impact By 2030 *3 Local Economy Value Dundyvan Enterprise Park £2,823,000 18.8 £983,860 312 jobs + 0.5% £37M Western Campus £3,362,000 22.4 £1,172,259 357 jobs + 0.7% £50M Gartcosh Industrial Park Ph 1 (Building 1) £1,310,000 8.7 £455,297 175 jobs + 0.1% £7M Gartcosh Industrial Park Ph1 (Buildings 2 & 3) £3,091,076 20.5 £1,074,318 413 jobs +0.2% £16M Enterprise House, Drumpellier Business Park £1,046,000 7.0 £366,331 65 jobs + 0.02% £2M Link Park, Newhouse (Building 1) £1,100,000 7.3 £382,030 156 jobs + 0.1% £8M TOTAL £9,641,000 72.9 £4,434,095 + 1478 jobs + 1.62% £120M *1 Excludes site acquisition and remediation costs *2 Person Year Equivalent (PYE) construction impacts are reported as gross impacts and as such do not take account of displacement or leakage to the local economy. Source: Scottish Annual Business Statistics 2019 *3 Employment and GVA impacts take in to account direct impacts (changes in employment and GVA as a direct result of these commercial developments), indirect impacts (impacts on supply chains) and induced impacts (household spending as a result of wages earned both via direct and indirect impacts). The uplifts in GVA and employment figures are based on a number of assumptions around the occupancy rates and types of businesses occupying these premises as well as macro-economic factors such as Brexit. The model on which 10 year Employment and GVA forecasts were produced was developed before the Covid-19 global pandemic and therefore may prove optimistic. Source: NLC oxford Economics Model 2019 Page 31 of 65
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Fusion Assets Limited Financial Performance as at 31st March 2022 Income & expenditure 2020/21 Commentary Budget Provisional Outturn Variance Final Outturn £ £ £ £ Rental Income 135,342 134,275 (1,068) 94,835 Minor under-recovery in income at Newhouse Building due to lease agreements Bank Interest 1,000 1,537 537 923 Minor increase in interest due to market impacts Investments 0 207,200 207,200 10,000 Provisional receipts from development sale of Newhouse A2 Misc 0 0 0 10,295 Total Income 136,342 343,011 206,669 116,053 Expenditure: Staff costs (173,960) (166,966) 6,994 (105,939) Underspend due to delay in recruitment Board Costs (15,000) (15,000) 0 (15,008) Operating Costs (89,300) (86,865) 2,435 (60,289) Decreased expenditure in project/development costs Running Costs (10,900) (2,667) 8,233 (5,105) minor underspend Total Expenditure (289,160) (271,499) 17,661 (186,341) Net Surplus/Deficit (152,818) 71,513 224,330 (70,288) Accounting adjustments: Release of deferred grant income 0 873,049 873,049 699,643 Unrealised gain/(loss) on investment property 0 (5,905) (5,905) 195,225 Impairment 0 (251,185) (251,185) (446,102) Tax provision 0 (130,619) (130,619) (77,885) Increase / (Utilisation) of Reserves (152,818) 556,852 709,670 300,593 2021/22 Appendix 2 Page 32 of 65
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Fusion Assets Overall Financial Standing - Balance Sheet as at 30 June 2022 Balances/ Indicator as at 30 June 2022 as at 31 March 2022 Movement Commentary £'000 £'000 £'000 Fixed Assets: Investments 1,040 990 50 Increased investment in Gartcosh Estates LLP Investment Property 1,995 1,995 0 Newhouse Building 1 3,035 2,985 50 Current Assets: Stocks 2,937 2,884 53 Work in progress Trade Debtors 601 1,361 (760) Debtors, VAT recoverable, deferred taxation, accrued income, prepayments Bank 3,199 2,563 636 Short-Term Investments 0 0 0 6,737 6,808 (71) Current Liabilities: Other Creditors inc. VAT & other taxes (3,282) (3,318) 36 Deferred income (VDLF), accruals, tax (3,282) (3,318) 36 Net current Assets/(liabilities) 3,455 3,490 (35) Creditors: Amounts falling due over 1 year (2,396) (2,396) 0 Deferred income (Boots) Net Asset / (Liabilities) 4,094 4,079 15 Current Ratio 2.05 2.05 0.00 A comparison of current assets, current liabilities and short term loan obligations, gives a net current asset position of £4.094m, and a healthy current ratio of 2.05, which gives assurance the company has sufficient resources to meet its current commitments Appendix 3 Page 33 of 65
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Fusion Assets Limited Financial Performance as at 30th June 2022 Income & expenditure 2021/22 Commentary Annual Budget Projected Outturn Variance Final Outturn £ £ £ £ Rental Income 161,707 158,554 (3,153) 134,275 Bank Interest 700 3,406 2,706 1,537 Increased interest income due to market impacts Investments 0 0 0 207,200 Misc 0 1,565 1,565 0 Total Income 162,407 163,525 1,118 343,011 Expenditure: Staff costs (182,570) (182,570) 0 (166,966) Board Costs (15,000) (15,000) 0 (15,000) Premises Costs (9,250) (9,783) (533) 0 Operating Costs (81,000) (78,750) 2,250 (86,865) Running Costs (10,000) (12,000) (2,000) (2,667) 0 0 0 0 Total Expenditure (297,820) (298,103) (283) (271,499) Net Surplus/Deficit (135,414) (134,578) 835 71,513 Accounting adjustments: Release of deferred grant income 0 0 0 873,049 Unrealised gain/(loss) on investment property 0 0 0 (5,905) Impairment 0 0 0 (251,185) Tax provision 0 0 0 (130,619) Increase / (Utilisation) of Reserves (135,414) (134,578) 835 556,852 2022/23 Appendix 4 Page 34 of 65
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0.000 0.500 1.000 1.500 2.000 2.500 3.000 3.500 4.000 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 balance 3.220 3.243 2.900 2.370 2.224 1.949 2.470 3.390 3.295 3.381 3.412 3.354 3.314 3.392 3.382 3.318 3.355 3.331 3.281 3.329 3.247 3.243 3.275 3.271 Forecast Cash Balances to June 2024 Appendix 5 Page 35 of 65
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North Lanarkshire Council Report Enterprise and Fair Work Committee Does this report require to be approved? ☐ Yes ☒ No Ref KH/MB Date 18/11/22 Contract Award for an Enterprise Backup Solution From Katrina Hassell, Head of Business Solutions E-mail HassellK@northlan.gov.uk Telephone 07903 096121 Executive Summary In compliance with clause 21 of the General Contract Standing Orders (GCSO), this report recognises the contract award for an Enterprise Backup Solution. The Contract is for a period of five years from 3/10/2022 ending 2/10/2027 with a total value that shall not exceed five hundred, fourteen thousand and sixty-nine Pounds Sterling (£514,069) exclusive of VAT. Recommendations It is recommended that the Enterprise and Fair Work Committee recognise the content of this report and the award of a contract to Softcat PLC at the maximum value of five hundred and fourteen thousand and sixty-nine Pounds Sterling (£514,069) exclusive of VAT. The Plan for North Lanarkshire Priority All priorities Ambition statement (18) Ensure our digital transformation is responsive to all people's needs and enable access to the services they need AGENDA ITEM 5 Page 37 of 65
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1. Background 1.1 The current Backup solution provided by Dell EMC offers resilience of council data across all services by backing-up data to the council’s data centre; Data Vita, Motherwell. This contract is due to end on 31st December 2022, at which point the hardware is end of life. 1.2 The architecture of the current solution is based on out-dated requirements of the council, failing to align to the hybrid infrastructure adapted through the digital programme. The new solution requires a next-generation data management tool to provide resilience against the present / future cyber-threat landscape and bring itself in-line with current best practice and guidelines. 2. Report 2.1 A user intelligence group (the ‘UIG’) of technical and procurement representatives was formed to review technical specifications, routes to market and to agree the procurement strategy that would deliver maximum benefit for the Council via the Framework. 2.3 The initial estimated value of the contract dictated that the procurement procedure be undertaken in accordance with the Public Contracts (Scotland) Regulations 2015. 2.4 The procurement procedure was undertaken as a “Direct Award” from the Scottish Government Value added re-seller framework agreement. 2.5 The tender submitted by Softcat PLC has been evaluated and represented the most economically advantageous tender for this Contract. 2.6 The costs associated with contract delivery will be contained within the Business and Digital capital and revenue budgets. 2.7 Through the delegated authority provided within GCSO 21.3.2, the Chief Executive instructed the Head of Asset and Procurement Solutions to award the Contract for Enterprise Backup Solution (the ‘Contract’) to Softcat PLC. These subsequent paragraphs provide committee with details of the contract award. 2.8 The above request was made to secure the contract in line with quotation received, thereby avoiding an anticipated thirteen percent increase due to adverse movement in the dollar exchange rate. Price Savings / Increases 2.9 The contract offers £24,441.74 per annum savings from year 2 to year 5; a total of £97,766.96 savings. Price Stability 2.10 As described in section 2.8, an escalated approval for this procurement was progressed to secure the contract mitigating a thirteen percent price increase. The price secured is fixed for the five-year contract term. Page 38 of 65
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Community Benefits 2.11 The procurement did not include a community benefit requirement as detailed in the contract. Fair Work First 2.12 Within their tender submission, Softcat PLC advised that they commit to the Scottish Governments “Fair Work First” initiative. Contract Strategy 2.13 Officers from Business and Digital will be responsible for managing the Contract which will be undertaken in accordance with the council’s agreed approach to contract and supplier management. 3. Measures of success 3.1 The aim of the contract is to modernise and streamline the council’s existing corporate backup environment, provide ransomware protection, Microsoft Azure backup protection and to provide efficiencies in the management of the environment itself. 4. Supporting documentation Appendix 1 Summary of Tender Evaluation Process Appendix 2 Summary of Procurement Process Appendix 3 SME Status and Location of All Tenderers Katrina Hassell Head of Business and Digital Page 39 of 65
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Approved by Procurement Lead Approved by Service Lead Name: Lewis Blakeway Name: Graeme Finlayson Position: Senior Procurement Officer Position: Infrastructure Support Officer Signature: Signature: Date: 6/10/22 Date: 6/10/22 Approved by Senior Responsible Officer Approved by Chief Officer Name: Name: Katrina Hassell Position: Position: Head of Business and Digital Signature: Signature: Date: Date: 6/10/22 Page 40 of 65
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5. Impacts 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☐ No ☐ 5.2 Financial Impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? Costs to be met through Business and Digital capital and revenue budgets. 5.3 HR Policy Impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal Impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Page 41 of 65
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Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data Protection Impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e-mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital Impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The Enterprise Backup Solution is required to provide ransomware protection, Microsoft Azure backup protection and keep council data Resilient. Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☒ No ☐ 5.7 Environmental / Carbon Impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☒ No ☒ If Yes, please provide a brief summary of the impact? 5.8 Communications Impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Page 42 of 65
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5.9 Risk Impact Is there a risk impact? Yes ☐ No ☒ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? Page 43 of 65
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Appendix 1 – Summary of Tender Evaluation Process Final Rank Tenderer Name Total Tender Score (%) Recommended for Contract Award (Y / N) 1 Softcat PLC 100 Y Appendix 2 – Summary of Procurement Process Response Procurement Procedure Utilised: Governing Legislation / Regulations: Crown Commercial Services Date Contract Strategy Approved: 29 September 2022 Date Contract Notice Published: 23 September 2022 SME % of Expressions of Interest: 0 NLC Based % of Expressions of Interest: 0 Number of Tenders Received: 1 Where Only One Tender Is Received, Why?: Direct Award Tenders Received from SME’s: 0 Tenders Received from NLC Based Tenderers: 0 Number of Non−compliant Tenders: 0 Number of Compliant Tenders: 1 Number of Recommended Tenderers: 1 Basis of Contract Award: Quality: Price: 100% Evaluation Team: Graeme Finlayson, Brian Nisbet, Mark Brennan Anticipated Contract Start Date: 10 October 2022 Total Contract Period (Months): 60 months Page 44 of 65
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Maximum Total Contract Value: £514,069 Appendix 3 – SME Status and location of all Tenderers Name of Tenderer Size of Tendering Organisation (Micro, Small, Medium or Large) Location (Local Authority / Council Area) N/A Page 45 of 65
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North Lanarkshire Council Report Enterprise and Fair Work Committee Does this report require to be approved? ☒ Yes ☐ No Ref: NLC-CPT-21-142 Date: 18 November 2022 Contract Award for Greenspace Development Framework From Pamela Humphries, Head of Planning and Regeneration E-mail humphriesp@northlan.gov.uk Telephone Stuart Hodge, Project Development Manager – 07583 091571 Executive Summary Committee is asked to approve the award of the Greenspace Development Framework Agreement (the “Framework Agreement”) to Project Centre Limited. The Framework Agreement is for an initial period of 24 months anticipated to commence on 09 January 2023. The Council reserves the right to extend the Framework Agreement for additional periods up to a maximum of a further 24 months. The value of the Framework Agreement shall not exceed Five Million Pounds Sterling (£5,000,000) exclusive of VAT. Recommendations It is recommended that Committee approves the award of the Framework Agreement to Project Centre Limited at the maximum value of Five Million Pounds Sterling (£5,000,000) exclusive of VAT. This recommendation follows the completion of a procurement procedure, where the tender recommended for award has been evaluated as providing the most economically advantageous tender in terms of cost and quality for the Council. The Plan for North Lanarkshire Priority Improve the health and wellbeing of our communities Ambition Statement (16) Transform our natural environment to support wellbeing and inward investment and enhance it for current and future generations AGENDA ITEM 6 Page 47 of 65
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1. Background 1.1 The Council has an ambitious plan for North Lanarkshire to become the place to live, learn, work, invest and visit. The Plan for North Lanarkshire sets an ambition for the area’s town centres and communities to become ‘multi-functional connected places which maximise social, economic and environmental opportunities. This ambition guides much of the work of the Council’s Planning and Regeneration service, including the Planning Team (in its enabling and regulatory functions) and the Growth Team, which was established in early 2019 to lead on delivering place-based regeneration, including bringing vacant and derelict land back into use and delivering improved green and industrial infrastructure. 1.2 The Growth Team is responsible for securing external funding to help deliver on these objectives and has identified a number of key national funding streams which may support low carbon and other ‘greening’ projects across North Lanarkshire. It does not however have the key skills to develop fundable projects and manage their delivery in-house therefore an external consultant is required to be appointed to assist in delivering the Councils ambition to bring vacant and derelict land back into use and delivering improved green and industrial infrastructure. 1.3 The consultant appointed to the Framework Agreement will be expected to identify and secure a level of external funding for projects whilst also taking concept designs for identified projects and develop these to a detailed level. Thereafter, the appointed consultant will be required to ensure tender documentation is developed to allow a procurement process to be undertaken. The consultant will be expected to manage the procurement and tender evaluation process and will appoint contractors to deliver projects and manage them throughout the contract process through to final completion whilst liaising with the council during all the relevant stages. 1.4 Additional services within the Framework Agreement required to be delivered by the consultant also include (but not limited to) site investigations required on projects identified by the Council and to engage with community groups linked to each project, or to identify potential active groups that may take on ownership and management of each identified sites. Additionally, the appointed consultant will develop ideas and concepts with community groups and with the Growth Team or other council services. 1.5 The requirements of the Framework Agreement have never been contracted before by the Council therefore historical contract information is not available. 2. Report 2.1 A user intelligence group (the ‘UIG’) of technical and procurement representatives was formed to review technical specifications, discuss trading processes, market conditions and trends, ways to maximise community benefits and sustainability and to agree the procurement strategy that would deliver maximum benefit for the Council via the Framework Agreement. 2.2 The initial estimated value of the Framework Agreement dictated that the procurement procedure be undertaken in accordance with the Public Contracts (Scotland) Regulations 2015. An advert for the framework agreement opportunity was published on the Public Contracts Scotland and the UK Find a Tender (FTS) website. Page 48 of 65
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2.3 The procurement procedure was undertaken as an “Open Procedure” Based on the evaluation criteria and scoring methodology set out in the invitation to tender package within the procurement procedure, an evaluation of tender responses was completed by members identified by the UIG. Selection stage responses were assessed first and compliant tenderers that satisfied / declared that they met the published minimum selection stage criteria progressed to the award stage evaluation. Following identification of the recommended tenderer(s), their selection stage responses were assessed in more detail to ensure they satisfied the minimum selection stage criteria applied. 2.4 The Contract award recommendation is made on the basis of the tenderer who submitted the most economically advantageous tender. 2.5 The tender submitted by Project Centre Limited has been evaluated as representing the most economically advantageous tender for this Framework Agreement. 2.6 Appendix 1 confirms the scoring achieved by each tenderer, further details of the procurement procedure is provided in Appendix 2 and the SME status and location of all tenderers is located within Appendix 3. 2.7 The maximum value of the Framework Agreement is Five Million Pounds Sterling (£5,000,000) exclusive of VAT including any option to extend the Framework Agreement. 2.8 The costs associated with contract delivery will be contained within the capital budget for Planning and Regeneration. Price Savings / Increases 2.9 Price Savings / Increases could not be calculated as this is the first time the Council has procured services in this manner. Additionally, procuring the requirements as a framework agreement as opposed to a contract, the Council is not obligated to guarantee the recommended tenderer any level of business throughout the entire term of the Framework Agreement. Price Stability 2.10 The Consultant “% Rates” submitted within the procurement shall remain fixed and unchangeable for entire duration of the Framework Agreement. Following the initial 24-month period of the Framework Agreement, the Consultants “Day Rates” may be subject to review. This review under no circumstances will introduce price increases greater than the latest / current value (%) as determined by the National Retail Price Index at time of a request. For the purpose of clarity the National Retail Price Index to be used when apply price increases will be based on the RPI All Items: Percentage change over 12 months as published by the Office of National Statistics. Page 49 of 65
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Community Benefits 2.11.1 The Council is committed to maximising the delivery of community benefits. The procurement included a community benefit requirement, this approach is designed to deliver local community benefits where possible. 2.11.2 Within their tender, Project Centre Limited committed to delivering a range of community benefits within the Framework Agreement as outlined in the table below (Subject to points 2.11.3 and 2.11.4):- Community Benefit Type Quantity Committed New Job for an Individual not from a Priority Group (Full Time) 2 Educational Visits 4 Educational Workplace Visit 4 Work Experience Placement for an individual aged 14 to 16 years of age 2 Work Experience Placement for an individual 16+ years of age 2 2.11.3 The exact details of any community benefits will however be dependent upon the value of any contract awarded. 2.11.4 Furthermore, there is no automatic guarantee of work via the Framework. Fair Work First 2.12 Within their tender submission, Project Centre Limited advised that they will commit to the following areas of the Scottish Governments “Fair Work First” initiative: • Appropriate channels for effective voice; • No inappropriate use of zero hour contracts; • Action to tackle the gender pay gap and create a more diverse and inclusive workplace through their Women’s Leadership and Development Network and Equality, Diversion and Inclusion Group; • Offering flexible and family friendly working practices for all workers from day one of employment; • Payment of the real Living Wage; and • Investment in workforce development. Contract Strategy 2.13 Officers from the Growth Team, Planning and Regeneration will be responsible for managing the Framework Agreement which will be undertaken in accordance with the Council's agreed approach to contract and supplier management. 3. Measures of success The Framework Agreement will deliver the following outcomes; Page 50 of 65
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3.1 the appointment of a Consultant who has the experience and capability to deliver an innovative, high quality and responsive service; 3.2 the contract award procedure is compliant with the procurement legislation and internal procedures; 3.3 that best value is both demonstrable and achieved; 3.4 that the Framework Agreement secures a range of community benefits; 3.5 that the Framework Agreement supports payment of the living wage to staff employed in the delivery of the Framework Agreement; and 3.6 that the Framework Agreement performance is proactively managed against a number of Key Performance Indicators. 4. Supporting documents Appendix 1 Summary of Tender Evaluation Process Appendix 2 Summary of Procurement Process Appendix 3 SME Status and Location of All Tenderers Pamela Humphries Head of Planning and Regeneration Page 51 of 65
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? The report is not about a key strategic decision and not subject to the Fairer Scotland Duty. If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer-scotland- duty-impact-assessments Yes ☐ No ☐ 5.2 Financial Impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The maximum value of the Framework Agreement is £5,000,000.00 exclusive of VAT including any option to extend the Framework Agreement. The Council does not warrant or guarantee the amount of the total value of the Framework Agreement, this amount is indicative only. The costs associated with contract delivery will be contained within the capital budget for Planning and Regeneration. 5.3 HR Policy Impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? Page 52 of 65
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5.4 Legal Impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data Protection Impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e-mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital Impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon Impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Page 53 of 65
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5.8 Communications Impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk Impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? A contract specific risk register is contained within the Contract Strategy and will be managed by the service throughout the lifecycle of the Framework Agreement. Page 54 of 65
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Appendix 1 – Summary of Tender Evaluation Process Final Rank Tenderer Name Total Tender Score (%) Recommended for Contract Award (Y / N) 1 Project Centre Limited 87.60% Y 2 LUC (Land Use Consultants) 77.77% N 3 Rankinfraser Landscape Architecture 77.69% N 4 RSK Environment Limited 75.73% N 5 Ironside Farrar Limited 71.10% N Page 55 of 65
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Appendix 2 – Summary of Procurement Process Response Procurement Procedure Utilised: Open Procedure Governing Legislation / Regulations: Public Contracts (Scotland) Regulations 2015 Date Contract Strategy Approved: 12 July 2022 Date Contract Notice Published: 13 July 2022 Total Expressions of Interest Received: 32 SME % of Expressions of Interest: 37.9% NLC Based % of Expressions of Interest: 3.4% Tender Return Deadline: 17 August 2022 Number of Tenders Received: 6 Tenders Received from SME’s: 4 Tenders Received from NLC Based Tenderers: 0 Number of Non−compliant Tenders: 0 Tenders Excluded at Selection Stage: 1 Number of Compliant Tenders: 5 Number of Recommended Tenderers: 1 Basis of Contract Award: Quality: 70% Price: 30% Evaluation Team: Staff from Planning and Regeneration Anticipated Contract Start Date: 09 January 2023 Total Contract Period (Months): 48 Maximum Total Contract Value: £5,000,000 Page 56 of 65
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Appendix 3 – SME Status and location of all Tenderers Name of Tenderer Size of Tendering Organisation (Micro, Small, Medium or Large) Location (Local Authority / Council Area) Arcadis Consulting (UK) Limited Large Edinburgh Ironside Farrar Limited SME Edinburgh Land Use Consultants (LUC) SME Glasgow Project Centre Limited SME Edinburgh Rankinfraser Landscape Architecture LLP SME Edinburgh RSK Environment Limited Large Glasgow Page 57 of 65
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North Lanarkshire Council Report Enterprise and Fair Work Committee Does this report require to be approved? ☐ Yes ☒ No Ref EFW/BG/YW-SQ Date 18/11/22 Business Gateway Lanarkshire Contract Extension – 1 March 2023 to 29 February 2024 From Pamela Humphries, Head of Planning and Regeneration E-mail weiry@northlan.gov.uk Telephone Yvonne Weir 07508 001238 Executive Summary The purpose of this report is to provide an update on the Business Gateway Lanarkshire Service and seek homologation of the decision taken by the Convener of Enterprise and Growth in consultation with the Head of Planning and Regeneration to extend the Lanarkshire Business Gateway contract to 29th February 2024. Recommendations It is recommended that Committee: 1) Consider and note the contents of this report. 2) Homologate the decision to extend the Lanarkshire Business Gateway contract to 28th February 2024. The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes Ambition statement (5) Grow and improve the sustainability and diversity of North Lanarkshire's economy AGENDA ITEM 7 Page 59 of 65
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1. Background 1.1 Business Gateway is a publicly funded service that provides free business support and impartial advice for start-up and existing businesses based in Scotland. Following changes to the delivery of local economic regeneration agreed in 2007, the delivery of the Business Gateway service across Scotland was transferred to local government on 1st April 2008 to align more closely with local priorities and economic development. 1.2 Since then, the local authorities have been responsible for the delivery of the service in local areas with eighteen Lead Local Authorities (LLAs) coordinating the delivery on behalf of the local authorities in their respective Business Gateway region. In Lanarkshire the LLA is North Lanarkshire Council, who manage the delivery across North Lanarkshire and South Lanarkshire. 1.3 In Lanarkshire, the Business Gateway Service is outsourced and delivered by a third- party contractor. The current contractor is Elevator North East Trust Limited trading as ‘Elevator’. In March 2021, following a competitive procurement process Elevator were awarded the current contract for the provision of the Business Gateway services in Lanarkshire. The contract is for an initial 24 months to 28th February 2023, with the option to extend for a further two twelve-month periods. 1.4 A robust contract and supplier management programme is in place to enable contract performance to be closely monitored and reported. The strategic direction and performance of the service is overseen by the Business Gateway Steering Group. This group consist of 2 elected members and senior members from both North and South Lanarkshire Councils, supported by operational staff who have responsibly for contract management. The group is chaired by an elected member from South Lanarkshire Council and meets on a quarterly basis. 1.5 The value of the contract across the 4-year term is £4,600,000 (£1.15m per annum) with a contingency option to increase by a further £1,000,000, taking the total maximum value of the contract to £5,600,000. The core £4,600,000 is provided through North Lanarkshire Council’s Revenue Support Grant (RSG). 2. Report 2.1 The current contract with Elevator for the delivery of the Business Gateway Service in Lanarkshire has an optional break on the 28th of February 2023. In March 2022 the Business Gateway Lanarkshire Steering group agreed to extend the contract for a further period to 29th February 2024. This was subsequently agreed by the Convenor of Enterprise and Growth in consultation with the Head of Planning and Regeneration. A decision on the second break option will be taken in early 2023 following a review of performance and options of the current contract. 2.2 This decision to extend the contract to 29th of February 2024 was taken in consideration of the strong performance of the contract and positive customer satisfaction. Performance for the first 12 months from 1st March 2021 to 28th February 2022 2.3 The Business Gateway Lanarkshire service has two key service areas: firstly, to support pre-start and new businesses trading less than 12 months and secondly, to support existing businesses. The overarching aim of the support is to increase the Page 60 of 65
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number of businesses per capita in Lanarkshire, increase the productivity and outputs of Lanarkshire businesses, help them to access new markets and introduce innovation, and ultimately create more and better paid jobs for Lanarkshire residents. 2.4 Services to support new businesses include advice from a local business adviser, access to training workshops and webinars, market research and online resources to help businesses successfully commence trading. The below table outlines the number of pre-start and new businesses supported in 2021/22, against the minimum targets set in the contract: New Businesses Number of businesses supported % To target achieved North South Businesses Supported 1065 107% 576 489 2.5 During the period, 1065 new start businesses were supported through the service. This was against a target of 1000. 2.6 Services to support existing businesses are delivered through the existing and growing business service. The support provided includes a dedicated local business advisor to help businesses create an action plan for growth, access to surgeries, accelerator programmes and up to 21 hours of expert support from a qualified consultant on an array of useful topics including Finance, HR, Digital Development and Marketing. 2.7 The below table outlines the intensive support provided to existing businesses in 2021/22against the minimum targets set in the contract: Existing Businesses Number of businesses supported % To target achieved North South Businesses Supported 412 103% 195 217 2.8 412 businesses received intensive support through the existing and growing business service. This was against a target of 400. 2.9 In addition to the above, for the period: • 1565 hours’ worth of ad hoc support was provided to local businesses • 175 local workshops were delivered on topics integral to helping local businesses start and grow in Lanarkshire. • 774 businesses operating in sectors of local importance where supported. • 446 businesses supported employed people under 25 • 351 business supported operated in areas of deprivation Performance for the first 6 months of Year 2 from 1st March 2022 to 31st August 22 2.10 The contract has continued to perform well for the first six months of year two. The below table outlines the number of pre-start and new businesses against the minimum targets set in the contract: Number of businesses supported % To target achieved North South Businesses Supported 511 102% 240 261 Page 61 of 65
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2.11 During the period, 511 new start businesses were supported through the service. This was against a target of 500. 2.12 The below table outlines the intensive support provided to existing businesses against the minimum targets set in the contract: Number of businesses supported % To target achieved North South Businesses Supported 225 113% 94 131 2.13 225 businesses received intensive support through the existing and growing business service. This was against a target of 200. 2.14 In addition to the above, for the period: • 866 hours’ worth of ad hoc support was provided to local businesses • 73 local workshops were delivered on topics integral to helping local businesses start and grow in Lanarkshire. • 381 businesses operating in sectors of local importance where supported. • 173 businesses supported employed people under 25 • 199 business supported operated in areas of deprivation Financial Performance Update 2.15 The financial performance of the contract is closely monitored monthly. The total cumulative spend for the contract to date, the period period 1st March 2021 to 31st August 2022 is £1,737,306. This is £12,306 over the targeted spend. 2.16 The financial performance for the period has been outlined in the table below: 2021/22 April – Sept 2022 Total Variable Payment £783,130 £407,950 £1,191,080 Fixed Payment £287,484 £143,742 £431,226 Innovation Payment £115,000 £0 £115,000 Total £1,185,614 £551,692 £1,737,306 Cumulative Spend £1,737,306 Spend Target £1,725,000 Overspend £12,306 Ongoing Customer Satisfaction with the Service 2.17 To monitor the local and national satisfaction rates, the Business Gateway National unit instruct an independent quarterly satisfaction survey, issued to a selection of clients recently supported through the service. 2.18 The minimum targets of 80% have been consistently exceeded throughout the contract. The latest survey results for the period 1st April 2022 to the 30th of June 2022 have been outlined below: Page 62 of 65
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Service (1st April 22 – 31st June 22) National Average North Lanarkshire South Lanarkshire Overall satisfaction (Extremely satisfied, very satisfied or satisfied) 83% 100% 96% Service delivered met expectations (Met or exceeded expectations) 81% 100% 96% Benefit the business will gain from service received (All saying yes, support will be beneficial – excluding those who report it is ‘too early to say’) 87% 100% 96% Would recommend Business Gateway (Definitely or probably) 84% 100% 96% 2.19 In North Lanarkshire a sample of 13 businesses were surveyed for the period; 100% of these businesses were satisfied with the service, had their expectations met, will benefit from the support, and would recommend the service. 3. Measures of success 3.1 North Lanarkshire Council continues to play a leading role in supporting local SMEs, aiding their growth and prosperity. The service delivery will continue to measure: • Number of new start businesses that have accessed support through the Lanarkshire Business Gateway Service • Number of growth and sustainable businesses that have accessed support through the Lanarkshire Business Gateway Service • Businesses in key sectors that have accessed support 4. Supporting documentation N/A Pamela Humphries Head of Planning and Regeneration Page 63 of 65
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☐ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The value of the contract for the period 1 March 2023 to 29 February 2024 is £1.15m in line with the current budget availability. 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☒ No ☐ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? A contract extension letter will be required to confirm the extension beyond 28 February 2023. 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ Page 64 of 65
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5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? The delivery of the Business Gateway Service is recorded within the Service Project Risk Register. Page 65 of 65