Tarbert and Lochgilphead Regeneration Fund Projects Update
Argyll and Bute Council · 13 October 2022
Back to Policy and Resources Committee — 13 October 2022 and its agenda
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ARGYLL AND BUTE COUNCIL MID ARGYLL, KINTYRE AND THE ISLANDS AREA COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 7 SEPTEMBER 2022 TARBERT AND LOCHGILPHEAD REGENERATION FUND – PROJECTS UPDATE 1.0 EXECUTIVE SUMMARY 1.1 This report provides an update on the 6 projects which Mid Argyll, Kintyre and the Islands Area Committee agreed on 6 September 2017 focusing on those projects which have not previously been reported to committee as complete. Lochgilphead Front Green (LA10) 1.2 The main body of works were completed by 12 August 2022 and the site reopened that evening. An opening ceremony is planned following completion but details for this have yet to be agreed. 1.3 We procured the works at Lochgilphead during a time of considerable uncertainty with the ongoing Covid pandemic and other changes such as the UK leaving the EU. In order to protect the Council’s position, the project entered the construction phase with a considerable contingency allowance attached to anticipated risks. At the time of writing, we believe that there is likely to be approximately £55,000 of contingency remaining once all costs associated with the project have been covered, the exact amount cannot be confirmed until all commercial matters have been settled with the contractor. We are asking Committee to continue with this pragmatic approach and enable any surplus funding from the Lochgilphead Front Green Project to be allocated to the Ardrishaig North Public Realm project which is due to start on site shortly. Ardrishaig North Public Realm (LA13) 1.4 Following appointment of P1 Solutions Ltd as the main contractor for this project work on site is expected to commence on 29 August 2022. The contractor indicates that there should be a construction period of eight months. During the construction period the contractor will minimise disruption as much as possible but the site will require closure to ensure the safety of members of the public and site workers. Updates on the project are being issued by email to interested parties and published on the Council’s website at www.argyll- bute.gov.uk/ardrishaig/public-realm.
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Ardrishaig Gleaner Site (LA17) 1.5 There have been a number of discussions between the Head of Development and Economic Growth and senior members of Scottish Canals in relation to Phase 2 of the site and how that could be developed. Whilst there are no firm proposals at this stage we believe that it is beneficial to retain the allocated funding against the phase 2 and that proposals will continue to be developed. We are looking at whether there is an opportunity to gain support for development of this site through the Rural Growth Deal via the tourism and place element of funding. RECOMMENDATIONS Members of the Mid Argyll, Kintyre and the Islands Area Committee are asked to: 1. Note the progress made with the projects as detailed within the report; and 2. Recommend to Policy and Resources Committee the transfer of any unspent funding from the Lochgilphead Front Green project to support the ongoing delivery of the Ardrishaig North Public Realm project.
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ARGYLL AND BUTE COUNCIL MID ARGYLL, KINTYRE AND THE ISLANDS AREA COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 7 SEPTEMBER 2022 TARBERT AND LOCHGILPHEAD REGENERATION FUND – PROJECTS UPDATE 2.0 INTRODUCTION 2.1 This report provides an update on the 6 projects which Mid Argyll, Kintyre and the Islands Area Committee agreed on 6 September 2017 (ratified by Policy and Resources Committee) should form the Tarbert and Lochgilphead Regeneration Fund and proceed to full business case. The projects include: Project Ref. Project Status T02 Barmore Road (A83)/Garvel Road junction improvement Complete T11 Tarbert Harbour facilities Complete LA10 Lochgilphead Front Green Ongoing at time of writing report LA11 Argyll Street Complete LA13 Ardrishaig North Public Realm Improvements Ongoing LA17 Gleaner Oil Site Phase 1 complete, phase 2 ongoing Whilst some projects have been successfully completed, as agreed, our focus is now on successfully delivering the remaining agreed projects. The report below provides an update on the remaining ongoing projects. 3.0 RECOMMENDATIONS 3.1 Members of the Mid Argyll, Kintyre and the Islands Area Committee are asked to: 1. Note the progress made with the projects as detailed within the report; and 2. Recommend to Policy and Resources Committee the transfer of any unspent funding from the Lochgilphead Front Green project to support the ongoing delivery of the Ardrishaig North Public Realm project.
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4.0 DETAIL Lochgilphead Front Green (LA10) 4.1 Works started on the Lochgilphead Front Green project on 31 May 2021 following the appointment of contractors Hawthorn Heights Limited in March 2021. During the course of the project, we have been able to add in a number of elements of the project which were removed during a value engineering exercise. As works progressed, it became clear that some of the contingency allocated to identified risks would not be required and as such we were able to include in the contract the landmark and car parking signage which was something that members had been keen to see included. We also extended the natural stone in the square so that it meets the seating wall, this was felt to be beneficial in terms of long term maintenance, and upgraded the grass works to the coastal edge from seeding to turf. Additional Town Centre Funding enabled us to upgrade and extend the A83 footway works and change the surface finish from resin bound gravel to natural stone to match into the works completed in Colchester Square and Argyll Street as well as extending works in front of the public toilets building. All of these works have added additional time to the works on the Front Green. 4.2 The project has also been impacted by delays some of which are being widely experienced across the construction industry and are impacting availability of site labour, supplies and materials. As a result of the additional works and the other delays, the completion date for the works moved from the end of January 2022 to 12 August 2022. The majority of the site was reopened to the public on the evening of 12 August 2022. Some parts of the site were closed off to enable recently laid turf to establish and the remedial works to the site compound are still required to be completed, following the removal of site welfare facilities this part of the site will be seeded with grass which will also require time to establish. 4.3 An opening ceremony is planned following completion but details for this have yet to be agreed. A 12 months defects period will follow completion and it is anticipated that a number of works will be required during this period. 4.4 A schedule of before and after photographs is included at Appendix 1. 4.5 The funding allocated for the Lochgilphead Front Green project has enabled us to attract external funding into the area, for every £1 of funding through the Tarbert and Lochgilphead Regeneration Fund a further additional 30p of external funding has been attracted to the project. 4.6 We procured the works at Lochgilphead during a time of considerable uncertainty with the ongoing Covid pandemic and other changes such as the UK leaving the EU. In order to protect the Council’s position, the project entered the construction phase with a considerable contingency allowance attached to anticipated risks. As the project progressed, some of the contingency has been expended and, as detailed above, some of this has been released to enable additional works to be undertaken. At the time of writing, we believe that there is likely to be
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approximately £55,000 of contingency remaining once all costs associated with the project have been covered, the exact amount cannot be confirmed until all commercial matters have been settled with the contractor. 4.7 Previously when funding has remained available at the end of a project, it has been agreed that this should be transferred into other ongoing Tarbert and Lochgilphead Fund projects to enable them to progress. We are asking Committee to continue with this approach and enable any surplus funding from the Lochgilphead Front Green Project to be allocated to the Ardrishaig North Public Realm project. Ardrishaig North Public Realm (LA13) 4.8 Our previous report on this project identified that we had applied for funding from Sustrans to help to deliver the works, the project had secured support and funding from Sustrans for the design works. Unfortunately the funding application for the construction phase was unsuccessful and as a result of this we were required to undertake a period of value engineering and reduce the scope of works before proceeding with the procurement exercise. This exercise was undertaken at a time of significant volatility within the construction sector with prices for some items raising exponentially over very short periods of time. 4.9 In June 2022 we completed the procurement exercise and awarded a contract to P1 Solutions Ltd. At the time of writing, the preconstruction phase is expected to extend to the end of August with works on site commencing on 29 August 2022. The works to be completed are shown on the drawing at Appendix 2. 4.10 Information from the contractor indicates that there should be a construction period of eight months and they expect to undertake works commencing in the garden area between the car parks and working along the waterfront before moving onto the car park and A83 frontage. 4.11 During the construction period the contractor will minimise disruption as much as possible but the site will require closure to ensure the safety of members of the public and site workers. During the construction period there will be access to the public toilets and the North Hall. Car parking on the Southern Car Park will be unaffected however the north car park will be closed and is expected to be utilised by the contractor for their compound. 4.12 Updates on the project are being issued by email to interested parties and published on the Council’s website at www.argyll-bute.gov.uk/ardrishaig/public- realm. Ardrishaig Gleaner Site (LA17) 4.13 This project is being delivered by Scottish Canals with a grant being provided through the Tarbert and Lochgilphead Regeneration Fund. Phase 1 of the Gleaner Site, the award winning Egg Shed, was completed in 2019. The Egg Shed was recognised by the Royal Incorporation of Architects in Scotland (RIAS) in their 2021 awards.
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4.14 There have been a number of discussions between the Head of Development and Economic Growth and senior members of Scottish Canals in relation to Phase 2 of the site and how that could be developed. Whilst there are no firm proposals at this stage we believe that it is beneficial to retain the allocated funding against the phase 2 and that proposals will continue to be developed. We are looking at whether there is an opportunity to gain support for development of this site and the Crinan Canal through the Rural Growth Deal via the tourism and place element of funding. 5.0 CONCLUSION 5.1 Funding through the Tarbert and Lochgilphead Regeneration Fund has successfully completed a number of projects in Tarbert, Ardrishaig and Lochgilphead. The main focus of activity continues to be delivering the remaining of the agreed six projects with work now focusing on Ardrishaig. There remain a high number of risks associated with delivery of the remaining projects however these will continue to be monitored and managed where possible. Should an underspend remain once the agreed six projects have been completed this will be reported to Committee so that arrangements can be agreed as to how this should be allocated. 5.2 An update on the projects will be made to Committee during 2023. 6.0 IMPLICATIONS 6.1 Policy The projects will support the overarching objective and long term outcomes of the Council’s Corporate Plan, Argyll and Bute Outcome Improvement Plan, the Local Development Plan, the Economic Strategy. It will deliver the Tarbert and Lochgilphead Regeneration Fund. 6.2 Financial A total of £3 million is allocated through the Tarbert and Lochgilphead Regeneration Fund. Expenditure at August 2022 is £2,042,863.98 including the grants made for Tarbert Harbour and Gleaner Phase 1 site, works completed at Garvel Road, Tarbert, Lochgilphead Front Green and Ardrishaig North Public Realm. 6.3 Legal Working with procurement colleagues in regard to management of contracts and tendering process. Leases, licences and memorandums of understanding with third party progressed by the legal team where necessary. 6.4 HR Support required from colleagues across the Council particularly Roads and Infrastructure Services who are the asset owners for the Lochgilphead
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Front Green and Ardrishaig North. 6.5 Fairer Scotland Duty: 6.5.1 Equalities - protected characteristics Equalities and Socio Economic Impact Assessments have been carried out. 6.5.2 Socio-economic Duty See above 6.5.3 Islands No impacts anticipated. 6.6. Climate Change Construction works undertaken as a result of the Tarbert Lochgilphead Regeneration Fund will result in carbon emissions although it is anticipated that these will be restricted to the construction period. Works at Lochgilphead Front Green raise the ground level of part of the green and may offer a form of climate change adaptation. 6.7 Risk There remain a number of risks associated with all the ongoing projects including those associated with external funding, public perception, construction working, costs, covid-19 and Brexit etc. Project Risk Registers are being maintained. 6.8 Customer Service None at this time Kirsty Flanagan – Executive Director with responsibility for Development and Economic Growth Policy lead – Robin Currie 16 August 2022 Appendix 1 – Lochgilphead Front Green Photographs Appendix 2 – Ardrishaig North Public Realm Landscape Plan For further information contact: Anna Watkiss, Senior Development Officer, Development and Economic Growth, Tel. 01546 604344
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APPENDIX 1 – Lochgilphead Front Green Photographs Before After
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Before After
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Appendix 2 – Ardrishaig North Public Realm Landscape Plan