APPENDIX 1 OPTIONS APPRAISAL

1. General Information Directorate Place Portfolio/Committee Homes and Neighbourhood s Project Title Ward End Park Lakeside Project Code (as per Renewal Project Voyager) TBC

Project The Project is part of a wider vision for the regeneration of the area around Description Ward End Park and the HS2 Depot linked to the HS2 Growth Strategy. The project is located in Ward End Park, in Ward End Ward, directly opposite the HS2 Depot site off Washwood Heath Road, the two sites linked by the Wash Brook. The Dolphin Centre, a public building owned by City Council and leased to Norton Hall, fronts onto Washwood Heath Road and overlooks the lake within the park.

The focus of the project is the refurbishment of the Park and Dolphin Centre, works which designed to increase the capacity of Norton Hall to deliver their objectives in offering women of all ages and backgrounds access to education, learning, volunteering, employment and entrepreneurial opportunities in a welcoming and supportive environment.

The need for the expansion to this service is identified in the recorded levels of deprivation in the local community which are amongst the highest in the country, Washwood Heath recording 90% of its population as being within the lowest 5% of the most deprived Super Output Areas in England. Over 83% of the population are from an ethnic minority background and 36% of the ward population have no qualifications. Through this project and the work of Norton Hall more women will gain access to employment and thereby the wellbeing of local families will improve. They will be better placed to take up opportunities offered by the arrival of the HS2 Depot and the business park opposite.

The works to the building include external enhancements to the building fabric, improved energy efficiency measures, new meeting rooms, office space and a ground floor café overlooking the lake. The thermal performance of the building will be enhanced through a higher specification of the windows (argon filled triple glazing); provision of air source heat pumps with heat recovery units and solar panels fitted to the southern roof elevation.

The revamping of the building will create co-working space for local women entrepreneurs, who are developing small home-based, internet and or micro- businesses; space for a community nursery for 2-5 year olds; a new ground floor social enterprise café overlooking the lake and a community support hub to attract local women to engage in community activities and provide a pathway to further training and employment.

The appearance of the building and its function will act as a catalyst to reconnect the community with the park. Improvements to the park will build on the recent de-silting works to the lake undertaken through the Parks Pools capital programme, through restoration of the lake revetments, the opening up of the enclosed spaces to let more light in to encourage generation of a rich ground flora and the reduction in the eutrophication of the water body.

Further enhancements to the park include the creation of new wetland habitats on the margins of the lake, the re-profiling and aeration of the Wash Brook, the thinning of the lakeside woodland to create an understorey, planting of ground flora and the creation of a new heathland on the existing mown grassland area to the east of the wood and lake. This work will demonstrate synergies with the

APPENDIX 1 work being proposed by HS2 to de-canalise the Wash Brook through the depot site opposite and there Sustainable Urban Drainage proposals

Access will be improved via boardwalks and enhanced cycle-paths along with interpretation of the ecosystem services created and existing within the park. The cyclepaths will be directed around the lake and will exit the park outside the entrance to the HS2 depot.

Along with the interpretation there will be opportunities provided for healthy exercise through the installation of adult outdoor gymnasium equipment. All these measure, with the support of Norton Hall are designed to encourage more women to access the park in a safer environment and encourage community engagement with the life of the park and engender a sense of pride in the local environment.

Links to Corporate The proposed schemes will contribute to the Council’s Key Priorities : and Service Jobs and skills: through the enhancements to the Dolphin Centre and creation of additional learning space more women will gain access the learning Outcomes and skills that will increase their opportunities for employment and enterprise. Healthy: through the visible investment and physical improvement of the building and park increased numbers of residents will be encouraged to participate in recreational and physical activity. Children: through the design improvements, children and young people of all backgrounds and abilities will have the opportunity to enjoy the outdoors in a more ecologically diverse, safer and brighter environment.

Taking a whole building and whole place approach will help to deliver the ambitions set out in the Carbon Roadmap, where the City Council is committed to a 60% carbon reduction by 2027, which is reflected in the environment and sustainability policies and targets of the Birmingham Development Plan.

The project will offer services and provide facilities that will directly help address the Ward Profiles for the Public Health Outcomes Framework

The proposals will help to deliver the Birmingham and Black Country Nature Improvement Area action plan targets, help meet the policy commitments in Birmingham’s Green Living Spaces Plan and its global Biophilic City commitments.

It will help deliver the recommendations in the 2018 Birmingham Tree Policy and contribute to the Environment Agency’s Water Quality targets under the Water Framework Directive.

Through the emerging Local Cycling and Walking Infrastructure Plan the cycle path improvements support the objectives of Birmingham Connected adopted by the City’s Transport Strategy

Project Benefits One of the key benefits of the proposals will be achieved through the whole building approach where the enhancement of the thermal efficiency of the facade will reduce heat loss and prime energy source consumption which are current problems with the building. The retrofitting of insulation to the existing walls and roof internally will improve the u-value of these elements. The use of

APPENDIX 1 triple glazed argon filled window units will provide natural light and passive solar gain thereby reducing reliance on artificial lighting during daylight hours. The installation of an air source heat pump and heat recovery unit will increase the efficiency of heating the building along with the fitting of solar panels to the southern roof elevation. These measures address the environment and sustainability policies and targets of the Birmingham Development Plan.

Improved connectivity through the park with the improvement of cycle paths and better way-marking will help reduce car journeys by providing local residents and employees with clear routes to work including linking the City’s Cycling and Walking Infrastructure to the HS2 Depot site and the proposed Business Park off Washwood Heath Road.

The current dredging of the lake through the Parks Pools Programme will contribute to the match funding and this work will be built upon with the introduction of new aeration pumps and enhancements to the islands and margins of the lake to improve the overall water quality which eventually is discharged out to the Wash Brook.

The interventions planned for the Wash Brook itself will support a more diverse ecosystem than is currently indicated by evidence from Eco Record. These will include re-profiling the banks of the brook to create shallower gradients , the introduction of boulders and gravel to slow and aerate the flow encouraging colonisation by marginal vegetation.

The tree canopies will be thinned to let more light into the brook, lake and woodland floor to provide new habitats and food sources for nesting birds and a greater diversity of flora and fauna.

The conversion of the grass area to the south east of the woodland into 2 hectares of heathland will increase the bio-diversity within the park. Other benefits of this measure will be the re-introduction of lowland heath habitat that is increasingly under threat and which provides new capacity for carbon sequestration and with a new landscape more diverse opportunities for recreation and community engagement.

All these green and blue measures will help to deliver the Birmingham and Black Country Nature Improvement Area action plan targets

In terms of the benefits to the Parks service, the engagement with the local residents will provide opportunities for enhanced litter picking and the increased presence in the park will improve community safety and reduce anti- social behaviour. Currently grounds maintenance costs are £128,000 per annum and it is planned to make savings of around £5,000 per annum by reducing the cylinder mowing regime in the area converted to heathland..

The main beneficiaries of the project will be the local community who will enjoy a safer and more diverse landscape. Also women attending the Dolphin Centre will feel encouraged to visit and take their children to the park to enjoy the wildlife and existing recreational facilities. Cyclists will have better access to the City’s network and the improved water quality will benefit businesses and residents further down stream.

APPENDIX 1 Project The project will, through the expansion of the building space within the Dolphin Centre, support business start-ups. Relocating the Tulip cafe from the first floor Deliverables to the ground floor open up the facade to the lakeside setting and encourages the use of the facility by visitors to the park as well as the building. The first floor nursery will provide a safe and secure facility for 2-5 year olds to play and learn, monitored by a new inviting reception entrance. The extension to the front of the building addresses the entrance whilst connecting all levels of the building via a new circulation hub serving the upper floor training spaces and enterprise studios at third floor. Each floor benefits in some way from the view out onto the lake and the positive impact such a setting can have on experiencing a space. The café extension will provide 57m2 of additional space and the nursery, training spaces and enterprise studios will provide 93m2 additional space. A small car park is proposed for nursery drop off and to provide disabled parking in closer proximity to the building than currently exists. A total of 4 spaces are proposed within the existing landscape arranged so as not to disrupt the surrounding mature trees.

The heathland will provide 2 hectares of new habitat and the existing landscape around the brook lake and woodland will provide enhancements to the biodiversity within these habitats.

It is also planned to create approximately 560m of new cycle path to connect the existing route through the park to the Dolphin Centre and across Washwood Heath Road to the entrance of the HS2 Depot, which will extend eventually to Bromford Interchange. This aims to reduce the number of journeys taken by car.

The installation of a series of outdoor gym stations is also planned for the open space adjacent to the Dolphin Centre to encourage visitors to participate in healthy exercise.

Procurement The project will be procured in respect of consultancy services and works contracts in line with the European Structural & Investment Funds Implications requirements for procurement, as set out in ESIF Compliance Guidance Note ESIF-GN-1-001 – Procurement Law (“the ESIF Procurement Requirements”) and our Delivery Partners HS2 Ltd and Norton Hall will also be required to meet the relevant requirements. The total project value is currently £2,463,072, which is below the European Threshold for capital works contracts procurement through OJEU, but following the signing of the Funding Agreement all contracts relating to the grant will be procured with support from BCC’s Corporate Procurement Services and will follow strict governance procedures to ensure compliance with the ESIF requirements

Taxation The Corporate Finance taxation advisors have been consulted and their advice has been taken account of in the development of these proposals. (TBC) Implications

Accountable Body The City Council will be the Accountable Body for the grant and will sign the Funding Agreement with the Managing Authority and hold ultimate accountability and responsibility for the project delivery and outcomes. The head of landscape and development will oversee the project management and will be responsible for ensuring that the Accountable Body role is satisfactorily discharged.

APPENDIX 1 The added value to the City for undertaking this role is that it will have overall control of the inputs and will be able to ensure that all the delivery partners will meet the requirements of the funding body. The City, as principle land owner, and strategic partner can therefore direct the project to meet the outcomes that will best align with the City’s Corporate policies, plans and objectives.

There are risks with assuming this role as there will be potential for clawback following an ERDF audit. To mitigate against this our delivery partners will be required to enter a service level agreement to ensure comopliacne with the ERDF requirements for procurement and State Aid Law. Key Project Milestones Planned Delivery Dates Full Application to European Regional Development Fund 29th June 2018 Managing Authority Approval to the Full Application for ERDF funds 31st August 2018 Grant Acceptance Agreement 30th September 2018 FBC Report Approval /Planning Approval (resubmission) 6th December 2018 Start on site 3rd June 2019 Project completion (allowing for 12 months defects period) 30th November 2021 Dependencies on The project would receive 50% overall grant from ERDF and other projects or therefore the project is dependent on receiving award of agrant activities approval from other funding agencies including HS2 Community and Environment Fund (CEF) Planning approval expires on 30th September and therefore a second application will need to be submitted and approved prior to commencement of the works. A procurement process will be necessary in line with ERDF requirements prior to any orders being placed for the works. Service level agreements with the delivery partners will need to be agreed prior to signing the funding agreement.

Achievability The Landscape Practice Group has undertaken projects of a similar size and complexity such as Restoration and more recently are in the process of delivering the Jewellery Quarter Cemeteries Repair and Conservation HLF project with Planning and Regeneration Officers. The relevant Architectural and Mechanical and Electrical and other engineering consultants will be procured through Norton Hall within ERDF regulations. Works contractors for both the building and the landscape elements will be procured with support from officers in Corporate Procurement to ensure compliance with ERDF regulations. Subject Matter Experts will be consulted from the Parks’ Woodland Management Team and the City Ecologist to ensure the correct techniques are followed to establish the relevant habitats on the site.

Project Manager Bob Churn, Head of Landscape and Development

Project Lisa Pendlebury, Business Analyst, Capital Finance Accountant Project Sponsor Steve Hollingworth, Service Director Sports , Events, Open Spaces and Well-being Proposed Project Bob Churn, Head of Landscape and Development, Landscape

APPENDIX 1 Board Members Practice Group Jonathan Webster, Principal Landscape Architect, Landscape Practice Group Mike Hinton, District Parks Manager, Hodge Hill Lisa Pendlebury, Business Analyst, Capital Finance Suzanne Knipe, Chief Executive, Norton Hall Children and Family Centre Mike Wheale, Friends of Ward End Park Finance Business Sukvinder Kalsi, Assistant Date of FBP Approval TBC Director, City Finance Partner (FBP) Other Mandatory Information  Has project budget been set up on Voyager? No  Issues and Risks updated (Please attach a copy to the PDD and Yes on Voyager)

APPENDIX 1 2. Options Appraisal Records

The following sections are evidence of the different options that have been considered in arriving at the proposed solution. All options should be documented individually.

Option 1 Submit ERDF funding application for the refurbishment of the Dolphin Centre and the enhancements to Ward End Park Information The relevance of the GBSLEP Sustainable Urban Development Considered Programme Calls for Proposals and Priority Axis P4 and P6 Availability of match funding from other agencies The 2011 Census data for the local ward. Multiple Deprivation Statistics for the Ward Local, regional and national strategies relating to the environment Proximity to HS2 Depot site and the disruption anticipated during the construction of the railway and future impact Availability of capital and human resources to deliver the project The Design and Planning Approval requirements for the building and landscape works

Pros and Cons of What were the advantages/positive aspects of this option? Option The advantages of this option were that the themes underpinning the Calls for Proposals from the GBSLEP Sustainable Urban Development Programme aligned with the aspirations of both the City Council and Norton Hall in terms of meeting environmental and energy efficiency objectives and improvement of Education, Skills and Business opportunities. The location of the site fits well with the major development of the HS2 Depot and the project proposals meet the HS2 Environment and Landscape Board’s Strategic Scheme Priorities Scoring Assessment. The proposals address the areas of deprivation in the ward through the provision of a building fit for purpose to provide community services for local women to expand their knowledge and business skills in a welcoming environment and will help equip local women to take advantage of the opportunities that will become available through the HS2 Depot and Business Park developments. The ERDF is a significant funding opportunity and will provide 50% of total project costs. The HS2 CEF fund, should the bid be successful, will provide significant match enabling the project to proceed with limited capital resource need from the City. The refurbishment of the Dolphin Centre has already received Planning Permission but this will need to be resubmitted to account of the changes since approval in 2015.

What are the Disadvantages/negative aspects of this option?

One of the disadvantages of these proposals is that the timing of the funding call and the deadline for the Full Application has provided little time to assemble the match funding. This however can be confirmed prior to the signing of the Funding Agreement

Other risks include the complexity of an ERDF bid in terms of the rules that need to be followed around procurement for both City contracts and delivery partner activity. However the City has in-house expertise to support these processes.

The ERDF outline approval does not release any resource to make the Full Application so this work is undertaken at risk and with limited resources.

APPENDIX 1

People Consulted Who was consulted regarding development of key elements of this option Steve Hollingworth, Service Director, Sports, Events, Open Spaces and Well-being District Parks Manager Mike Hinton, District Parks Manager Charlie Short, Corporate Procurement (TBC) Nigel Greenwood, Corporate Finance Leigh Nash/Janet Morritt, Corporate Finance (Taxation)(TBC) Councillor Mohammed Aikhlaq, Ward End Ward Anthony Coumbe, Head of Environment, , HS2 Ltd., Suzanne Knipe, Chief Executive, Norton Hall Children and Family Centre. Mike Wheale, Friends of Ward End Park

Recommendation Proceed Principal Reason What are the key reasons for the recommendation regarding this option for Decision This is the only realistic way to assemble the necessary resources to fund the proposals as ERDF is a significant funding source and there is a clear link to the HS2 development which is a once in a lifetime opportunity to secure funding for this type of project from a major national provider.

Option 2 Scale down the ambition of the project and bid to alternative funders with less onerous conditions Information What information was considered in making the decision Considered Availability of match funding from other agencies and their relevance The complexity of GBSLEP Sustainable Urban Development Programme Calls for Proposals and Priority Axis P4 and P6 The 2011 Census data for the local ward. Multiple Deprivation Statistics for the Ward Local, regional and national strategies relating to the environment Proximity to HS2 Depot site and the disruption anticipated during the construction of the railway and future impact Availability of capital and human resources to deliver the project The Design and Planning Approval requirements for the building and landscape works

Pros and Cons of What were the advantages/positive aspects of this option? Option The advantages of this option were that the project would be reduced in size and therefore the project would be less complex in its delivery. There would be less onerous requirements to meet than for the ERDF fund and the extension and refurbishment of the building would exclude the additional environmental and energy efficiency interventions making it a cheaper scheme.

The landscape proposals could also be reduced to fit in with the criteria of other funding bodies and therefore the amount of ecological interventions could be limited to fit a smaller budget

What are the Disadvantages/negative aspects of this option?

This would be a great missed opportunity to deliver something that reflects the scale of the impact HS2 will have in the area. Much less of the City’s policies and priorities will be helped as a result and the City would lose the

APPENDIX 1 inward investment from external resources that is much needed in this time of growth alongside squeezed Council resources.

The environmental impact of HS2 would not be mitigated to the same degree without the more ambitious project and Norton Hall would not be able to expand their services which support much of the City’s priorities through the social enterprise partnership arrangement.

People Consulted Who was consulted regarding development of key elements of this option Steve Hollingworth, Service Director, Sports, Events, Open Spaces and Well-being District Parks Manager Mike Hinton, District Parks Manager Charlie Short, Corporate Procurement (TBC) Leigh Nash/Janet Morritt, Corporate Finance (Taxation)(TBC) Councillor Mohammed Aikhlaq, Ward End Ward Anthony Coumbe, Head of Environment, West Midlands, HS2 Ltd., Suzanne Knipe, Chief Executive, Norton Hall Children and Family Centre. Mike Wheale, Friends of Ward End Park

Recommendation Abandon Principal Reason What are the key reasons for the recommendation regarding this option for Decision This would be a great missed opportunity to deliver something that reflects the scale of the impact HS2 will have in the area. The City would lose the potentially significant inward investment from external resources that is much needed Norton Hall would not be able to sufficiently expand their services which support much of the City’s priorities

Option 3 Do Nothing Information What information was considered in evaluating the option Considered The relevance of the GBSLEP Sustainable Urban Development Programme Calls for Proposals and Priority Axis P4 and P6 Availability of match funding from other agencies The 2011 Census data for the local ward. Multiple Deprivation Statistics for the Ward Local, regional and national strategies relating to the environment Proximity to HS2 Depot site and the disruption anticipated during the construction of the railway and future impact Availability of capital and human resources to deliver the project The Design and Planning Approval requirements for the building and landscape works The impact of expanding the service provided by Norton Hall at the Dolphin Centre Pros and Cons of What were the advantages/positive aspects of this option? Option There would be no need to procure the resources and provide in-house expertise to deliver the project There would be no need to seek match funding in support of the project

What are the Disadvantages/negative aspects of this option?

This would be a great missed opportunity to deliver something that reflects the scale of the impact HS2 will have in the area.

APPENDIX 1

Much less of the City’s policies and priorities will be helped as a result and the City would lose the inward investment from external resources that is much needed in this time of growth alongside squeezed Council resources

The environmental impact of HS2 would not be mitigated in this part of the City that will be impacted the greatest throughout the development.

Norton Hall would not be able to expand their services which support much of the City’s priorities through the social enterprise partnership arrangement.

People Consulted Who was consulted regarding development of key elements of this option Steve Hollingworth, Service Director, Sports, Events, Open Spaces and Well-being District Parks Manager Mike Hinton, District Parks Manager Councillor Mohammed Aikhlaq, Ward End Ward Anthony Coumbe, Head of Environment, West Midlands, HS2 Ltd., Suzanne Knipe, Chief Executive, Norton Hall Children and Family Centre. Mike Wheale, Friends of Ward End Park

Recommendation Abandon Principal Reason What are the key reasons for the recommendation regarding this option for Decision This would be a great missed opportunity to deliver something that reflects the scale of the impact HS2 will have in the area. The City would lose all the potential inward investment from external resources that is much needed Norton Hall would not be able to expand their services which support much of the City’s priorities

APPENDIX 1

3. Summary of Options Appraisal – Price/Quality Matrix Options Weighting Weighted Score 1 2 3 1 2 3 Criteria Total Capital Cost 5 8 10 30 1.5 2.4 3 Upfront Revenue Cost 5 6 10 5 0.25 0.3 0.5 Full Year Revenue Consequences 8 5 3 5 0.4 0.25 0.15 Quality Evaluation Criteria e.gs 1)Meeting Service Requirements 9 4 0 20 1.8 0.8 0 2)Contributing to Priorities 9 4 0 20 1.8 0.8 0 3)Deliverability 8 9 10 20 1.6 1.8 2 4) Total 100% 7.35 6.35 5.65

4. Option Which option, from those listed in the Options Appraisal Records above, is recommended and the key reasons for this decision. Recommended Option 1 is recommended for approval and development to Full Business Case The key reasons for this decision are: This is the only realistic way to assemble the necessary resources to fund the proposals as ERDF is a significant funding source and there is a clear link to the HS2 development which provides a once in a lifetime opportunity to secure funding for this type of project from a major national provider. The project deliverables meet many of the key priorities of the Council and its partner organisations. The impact of HS2 on the Ward End community will be significant and disruption to the lives of local residents can be mitigated through the environmental enhancements proposed through this project. Through the enhancements to the Dolphin Centre and the creation of additional learning space more women will gain access to learning and skills that will increase opportunities for employment and enterprise in Ward End ward which currently suffers high levels of deprivation.

APPENDIX 1

5. Budget information Voyager Financial Financial Later Years Totals Code Year Year 2018-19 2019-20

Capital Costs & Funding TBC £ £ £ £

Expenditure: Development costs to proceed to Full Business Case 97,450 0 0 97,450

Other Costs to complete project Architectural and engineering 69730 43,580 8,717 122,027 consultancy fees

Landscape Architect’s Employment costs 60,200 37,630 7,525 105,355 Building works to Dolphin 1,007,305 335,768 1,343,073 Centre Landscape Works to Ward End 592,625 197,541 790,166 Park Totals 227,380 1,681,140 549,551 2,458,071 Funding Development costs funded by: TBC ERDF GBSLEP SUDP Programme Grant 50% (TBC) 113,690 840,570 448,275 1,402,535 HS2 CEF Grant (TBC) 58,154 840,570 101,276 1,000,000 BCC Match (Section 106 and Capital resources) (TBC) 55,536 0 0 55,536

Other Costs Funded by: HS2 Depot Work match funding contribution (£315,000) BMHT Ward End Park Road Housing SUDS Scheme (£32,000)

Totals 227,380 1,681,140 549,551 2,458,071 Revenue Consequences 128,000 128,000 123,000 379,000 Expenditure

Income 0 0 0 0

0 0 0 0 Waterside Care research support work ( One off project costs) 2,000 500 2,500 5,000

Totals 130,000 128,500 125,500 384,000

APPENDIX 1 Funded By:

Current Budgetary Provision

Ref: SI/001002289 - 1188PKA - Ward End Park: TBC 128,000 128,000 128,000 384,000

Other revenue resources identified: ERDF GBSLEP SUDP 1,000 250 1,250 2,500 Programme Grant 50% (TBC) BCC Match (Section 106) (TBC) 1,000 250 1,250 2,500

Totals (Saving) 0 0 (5,000) (5,000)

APPENDIX 1

6. Project Development Requirements/Information Products required This should be a full list of the items required in order to produce a Full to produce Full Business Case. Examples might be: Business Case  Financial plan including funding  High Level design  Detailed design  Whole life costings  Tender details  Consultation/Stakeholder analysis  Full Application to ERDF GBSLEP SUD Programme  Application to HS2 CEF  Procurement Strategy

Estimated time to Give an estimate of how long it will take to complete the delivery of all the complete project products stated above, and incorporate them into a Full Business Case. development 6 months i.e. December 2018 Estimated cost to Provide details of the development costs shown in Section 5 above. This complete project should include an estimate of the costs of delivering all the products stated above, and incorporating them into a Full Business Case. The cost of development internal resources, where these are charged to the project, should be included. A separate analysis may be attached. Architecturaland engineering professional services to FBC: £52,300 Landscape Architecturaland project management Employment costs to FBC: £45,150 Funding of Provide details of development costs funding shown in Section 5 above. development costs ERDF GBSLEP SUDP Programme Grant 50% (TBC) : £48,725 HS2 CEF Grant (TBC): £24,725 BCC Match (Section 106 and Capital resources) (TBC): £24,000

Planned FBC Date service expects to Planned Date for Date service anticipates Date receive FBC approval Technical physical completion of (month/year) the project (month/year) Completion

6th December 2018 November 2020