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Report to the Finance and Value for Money OSC 21 July 2017 Cabinet 24 July 2017 Wards : ALL Hull: Yorkshire’s Maritime City – Procurement of Activity & Capital Consultants Report of the Director of Regeneration This item is not exempt Therefore exempt reasons are not applicable This is a Key Decision This is a key decision. The matter is in the Forward Plan 0031/17 1. Purpose of the Report and Summary 1.1 To provide an update on the successful Hull: Yorkshire’s Maritime City project. Heritage Lottery Fund (HLF) have approved a development grant for the project of £1,368,400 to fund preparatory work prior to release of up to £15m following a Round 2 submission. 1.2 This report seeks approval to commence a procurement process to go out to tender for a Multi-Disciplinary Team which will consist of specialist Activity Consultants, Capital Construction Consultants and Naval Architects Consultants. A curatorial Consultant and a Quantity Surveyor will be procured separately. The team will develop the stage 2 HLF bid for the Hull: Yorkshire’s Maritime City (H:YMC) project. The total cost of professional fees during the development phase is estimated to be circa £1,234,400 and £1,712,000 for the delivery phase. 2. Recommendations It is recommended that Cabinet; 2.1 Note the planned Visitor Destination Programme legacy project for museums (this project) has a total capital requirement of £27.4m of which the Heritage Lottery grant will fund £15m, subject to a successful Author: Rob Kingdom Status: Project Manager Date: 12/07/2017 Page 1 of 21 round 2 bid to be submitted no later than 30 May 2019 and; Note that we seek approval to begin fundraising of £2.6m requirement within the scheme, which will be raised through one or more trusts, charities and foundations. 2.2 That approval is given to proceed in accordance with EU procurement rules with the procurement of the following contracts; a) A Multi-Disciplinary Team that can provide a full building design, costing, surveying and contract administration consultancy for the renovation of the Grade II* listed Maritime Museum, Dock Office Chambers, the historic dry docks at “North End Shipyard” and a new visitor orientation centre, on the same site. The consultancy Design team will be led by an accredited conservation architect or surveyor, in line with HLF requirements and shall act as Principal Designer for this scheme. Roles will also include – Activity Plan; Catering & Retail; Evaluation; Consultation & Community Engagement; Bid Management and Business Planning and a National Historic Ships consultancy service. b) A Quantity Surveying consultancy for the project in line with HLF requirements and in accordance with the Council’s procurement policy c) A Curatorial consultancy who will be responsible for the advice on and specification for, the conservation and storage of the artefacts and renovation including Interpretation & Design 2.3 That tenders are sought using the EU open procedure or on an open tender basis on a 70% quality 30% price value for money criteria and include a break clause to allow submission of a Round 2 HLF submission. 2.4 That the approval of the award of contracts once tendered be delegated to the City Manager for Major Projects & Infrastructure in consultation with the Town Clerk and Portfolio Holder for Economic Investment, Regeneration and Planning, subject to such tenders being within budget. 3. Reasons for Recommendations 3.1 The consultants are required for the scheme and will need to be in place until completion of their individual elements within the overall project, but HLF requirements for a round 2 submission and approval of the substantive grant requires a break clause to ensure the Council does not commit to unfunded services. The proposed consultancy contracts, require approval to procure through an open competitive tender. Author: Rob Kingdom Status: Project Manager Date: 12/07/2017 Page 2 of 21 3.2 HLF require that all tenders subject or grant are sought using the EU open procedure or on an open tender basis on a 70% quality 30% price basis. Utilising frameworks and existing Contractual arrangements are not permissible under the funding regime. 3.3 To progress the bid to round 2 delivery phase, HLF will require the works identified during round 1 to be further developed, resulting in the production of a comprehensive and fully costed delivery and implementation plan to a minimum RIBA stage 3 ready for submission to the HLF no later than 30th May 2019. As the Council cannot make use of it’s existing framework agreements to deliver the scheme, procurement is necessary. 4. Impact on other Executive Committees (including Area Committees) 4.1 These are services that will be delivered on a citywide basis and therefore has no impact on specific area committees. 5. Previous approvals and delegations 5.1 The Cabinet 23 rd February 2015 (minute 92 refers) approved a total allocation of £9.8m for the Hull: Yorkshire’s Maritime Museum project from the £80 million approved visitor destination investment allocated by the Council in support of the City plan. For phase 1 projects it also; a) Delegated to the Chief Operating Officer authority to enter into agreements for the acceptance of identified grant funding, in consultation with the s151 officer and the Town Clerk and the Portfolio Holder for Economic Investment, Regeneration and Planning b) Notes that the Leader may by individual decision record vire funds across the phase 1 and 2 programme and revise the funding for individual schemes, subject to funding remaining within the approved capital programme; c) Subject to contracts being let within the funding envelope identified, or as amended by the Leader, delegates to the Chief Operating Officer, in consultation with the s151 officer and the Town Clerk and the Portfolio Holder for Economic Investment, Regeneration and Planning, authority to enter into agreements with contractors providing the most economically advantageous proposal within the agreed delivery route for the development and delivery of the identified schemes d) Approved the commitment of capital expenditure of up to £1.6m to undertake feasibility and development work for the following projects within the Phase 2 2017 Legacy Programme of which this project forms part. e) Delegate’s authority, in consultation with Portfolio Holder for Economic Investment, Regeneration and Planning to the City Manager for Major Projects & Infrastructure and the Town Clerk, Author: Rob Kingdom Status: Project Manager Date: 12/07/2017 Page 3 of 21 to agree the detailed terms and conditions for any site appraisal works and associated legal agreements, including entering into contracts for feasibility/architectural, civil, structural design/surveys/other specialist support to facilitate delivery of the programme. 5.2 The Cabinet decision of 22 February 2016 (minute 102 part II a. refers) also included the approved allocation of £9.8m for museums. 5.3 Cabinet on the 20 February 2017 (min 104 k refers) updated that approval to include the known costs contained within the bid. 6. Background 6.1 This scheme is identified as a Phase 2, 2017 Legacy Programme within the capital programme. The total project value is estimated to be £27.4m, made up of Development costs £2,451,175 and delivery costs £24,952,771. 6.2 During the HLF Development Phase the Council and Hull Culture and Leisure Ltd , will refine the construction and engineering solutions, exhibition design and conservation requirements of the buildings, ships and artefacts. Business planning activity focussing on producing a combination of investment in infrastructure, facilities, programmes and new approaches, will be reflected in a sustainable financial model which will ensure the long-term viability of H:YMC well beyond the HLF funded period. 6.3 H:YMC is a heritage-driven, city wide project which draws on Hull’s unique spirit and sense of place, redefining and refocusing the cityscape to highlight the maritime stories shaping its past, present and future. It builds on legacy aspects of the City of Culture 2017, and focuses on the promotion and preservation of Hull's maritime history, architecture and collections, and offers opportunities for building new capacities, locally, through skills development, employment, and volunteering. This project, alongside other key programmes such as City of Culture and wide-ranging public realm improvements, will stimulate the visitor economy as well as address local indices of deprivation, develop skills, improve employment and celebrate Hull and its community’s unique heritage and identity. 6.4 The project encompasses the redevelopment of 5 historic assets across Hull: the transformation of the Grade 2* listed Maritime Museum with a new architectural and exhibition scheme; the creation of a collections store at the Dock Office Chambers; the conservation of two historic vessels – the Arctic Corsair and the Spurn Lightship, and the creation of a visitor orientation centre at the derelict North End Shipyard, the proposed new permanent berth of the Arctic Corsair. This will be linked Author: Rob Kingdom Status: Project Manager Date: 12/07/2017 Page 4 of 21 back to the Maritime Museum through new interpretation along the dock and all city walls. 6.5 H:YMC will create a new heritage visitor experience. Ongoing city-wide wayfinding and art installations will ensure that the project elements blend with existing visitor attractions such as the Museums Quarter, The Deep, the Ferens Art Gallery and newly regenerated areas in the Old Town and Fruit Market. The project builds on existing HLF investment as well as current opportunities presented through the UK City of Culture 2017 and its legacy. Together, this will make the cityscape more legible with a maritime heritage focus permeating across the city centre. 6.6 The Council, if successful in round 2, will be required to commit to a level of round 2 match funding for the delivery and this will be the subject of a further Cabinet report.
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