Report title : Waiver for the hire and installation of two temporary boilers and one new permanent commercial boiler at Brixton Recreation Centre

Transcription

1 Officer delegated decision Report title : Waiver for the hire and installation of two temporary boilers and one new permanent commercial boiler at Brixton Recreation Centre Wards: Coldharbour Report Authorised by: Strategic Director Commissioning: Helen Charlesworth-May Portfolio: Cabinet Member for Neighbourhoods: Councillor Jane Edbrooke Contact for enquiries: mcook2@lambeth.gov.uk Mark Cook, Senior Commissioning Officer: Healthier for Longer, Report summary The Brixton Recreation Centre is the borough s most popular sports facility in terms of footfall and usage. The current condition of the building does not meet the needs of users and plans are being developed for the refurbishment of the site. In the meantime however the boilers are in need of repairs and replacement in order to have a sufficient operational capacity to heat the building, showers and swimming pool. Without the efficient function of the boilers the centre will be at risk of closing as essential heating for swimming pool and showers will fail. Finance summary The indicative cost for the repairs and replacement of one boiler at Brixton recreation including the cost of the temporary boilers is 156, The funding will be sourced from the capital pipeline ( 600,000 funding agreed in July 2014 to undertake works to Brixton Recreation) and 75,000 will be funded from Lambeth/GLL development pot. Recommendations (1) Appoint Cofely to carry out works to install the new boiler at Brixton Recreation Centre at a cost of 156, (2) That a waiver be granted to clause 17.2 (b) Demonstrable Best Interest of the Council Contract Standing Order requiring competition on the grounds that it is in the Council s best interest to commission Cofely to undertake the work at this time.

2 1. Context 1.1 Brixton Recreation Centre is a six storey Leisure centre built in the early 1980s. The facility is extensive containing two swimming pools, a number of sports halls, gyms and indoor bowling, squash, with associated changing rooms and various other ancillary rooms. 1.2 The main source of heating to the building is provided by 3 Remeha P500 boilers with an output of 1785 kw each. At least 2 boilers need to be functioning at all times in order to adequately heat the swimming pools, provide hot water for showers and heat the building. 1.3 Although several areas of the building has been refurbished since construction, the majority of the plant has not received any major refurbishment and remains as original, except the installation of 3 new boilers in the early Pumps and ancillary equipment in the plant room has been renewed over the period as they have failed. 1.4 Despite regular maintenance and replacement of defective parts the boilers continue to pose problems with operations. Boiler no 1 has been out of service for over a year and boiler no 2 was decommsioned at the end of March 2015 due to its unsafe condition. We have now reached a critical situation with the heating and hot water as one boiler will be insufficient to maintain all the system in the building. 1.5 Boiler number 3 does not have enough flow rate to get enough heat into the building. In order to ensure that the building remains operational the decision has been taken to install temporary boilers pending the installation of a permanent replacement boiler. 2. Proposal and Reasons 2.1 Cofely are Lambeth s fixed term contractor and are responsible for carrying out planned and preventative maintenance on these boilers. 2.2 In the past two years attempts have been made to rectify the many issues that have been experienced with these boilers. Sections have been replaced and major works carried out to keep the boilers functioning. However, it is clear that continued repairs will not prove cost effective, as it is difficult to determine how long each element will last and which bit will be defective next. 2.3 Therefore Cofely were asked to prepare an independent condition survey and recommend options for the rectification of these issues. Cofley were asked to undertake initial costings to provide an indication of the level of work required. Following the decommissioning of one of the two working boilers, the centre could not operate sustainably on one boiler. As a result urgent action was required to resolve this issue, within short timescales to reduce the service risk of remaining with one boiler. This meant that Cofley were selected to complete this work to prevent service disruption

3 Option Comments Option 1 Carry out repairs to Boiler No 2. This will involve sourcing new sections for boiler no 2. Dismantle boiler no. 1 and use spare parts to repair boiler no. 2. Exact extent of work is unknown until the boiler is opened up. There is a lot of uncertainty with this approach. The boiler would have be to decommissioned to enable the works to proceed. Temporary boilers would need to be put in place before proceeding. There is no guarantee that all the spare parts required will be available or useful for the repair of no. 2 boiler. Option 2 Unable to guarantee how long the boiler will last as other parts may fail. Option 3 Replace boiler no. 1 with a new boiler. Repair boiler no 2. Temporary boilers would also need to be installed while the works are being carried out. Boiler no 1 has already been decommissioned so this would not have any further impact on the operations at present. 2.4 The recommended option is option 3. However since the options were developed boiler no 2 has been decommissioned and temporay boilers are being installed to keep the centre operational. 2.5 The current scope of works are (a) the 1 month hire of two 500kw boilers to provide a temporary heating solution and (b) the installation of a new Remeha P520 boiler to permanently replace boiler number 1. The useful power of Remeha P520 boilers range between 754kw and 1450kw. So this is an acceptable permanent replacement for boiler 1.

4 3. Finance % of the funding for the installation of the new boiler and the cost for the installation temporary boilers will be met from the 600,000 agreed by AIMG in July 2014 and 50% will be funded from Lambeth/GLL development pot. The budget of 600,000 is now confirmed on the council s Capital Investment Programme on Project Code and is fully available to spend in Legal and Democracy 4.1 The delegated authority to deal with the matters detailed in this report is vested in the Director, who should exercise his decision making powers following recommendation by the Procurement Board. 4.2 It is a requirement of the Council s Contract Standing Orders that proposed contracts with a value in excess of 100,000 should be competitively tendered. It is also a requirement that proposed contracts in excess of 25,000 be advertised on Lambeth s website and on the Contracts Finder e-portal. 4.3 Waivers of the Contract Standing Orders may be approved by the Director, who should exercise his decision making powers following recommendation by the Procurement Board. Waivers of this requirement in the Contract Standing Orders may be approved in certain circumstances, inter alia, where the works or services being procured are urgent or demonstrably in the Council s best interests, to meet exceptional exigencies, and where there is a sole supplier capable of meeting the requirements, which could include time critical requirements. 4.4 The Public Contracts Regulations 2015 applies to the award of works contracts with a value above the threshold of 4,332,012. Works contract awards below this threshold are not subject to the full weight of the Regulations but the advice of the EU commissioners is that they should be tendered where there may be cross-border interest and should in any event comply with the principles of non-discrimination, transparency and equal treatment. 4.5 The Council s Constitution requires that all key decisions, decisions which involve resources between the sums of 100,000 and 500,000, and important or sensitive issues, must be published on the website for five clear days before the decision is approved by the Director or Cabinet Member concerned. Any representations received during this period must be considered by the decision-maker before the decision is taken. 5. Consultation and co-production 5.1 No formal user consultation has been held. 5.2 Consultation has been carried out with Greenwich Leisure Limited, the leisure centre management and are in agreement with the proposed actions to rectify the boilers. 5.3 Internal commissioning colleagues have been consulted to ensure agreement for the proposed works.

5 6. Risk management 6.1 The main risk factor to the project is additional costs that may be incurred for use of the temporary boilers while we await delivery of the new boiler. The boilers are manufactured in France and are made on a job by job basis. Delays in making a decision on the installation of the new boiler will mean that we need to extend the timeline for the use of the temporary boilers on site. The site is unable to operate without the provision of these temporary boilers. Other risks have been managed through the development of the options.. 7. Equalities impact assessment 7.1 An equalities impact assessment is not relevant to this project, given that the works required are repairs and replacement of the boilers. The impact of the works not being completed will affect centre operations. A lack of hot water and negatively impact casual users and members, resulting in the closure of the swimming pool and possibly wider areas of the building. 8. Community safety 8.1 The Brixton Recreation Centre plays a role within the local community. The centre has 6,000 members and over 500,000 visits per year, acting as an important facility for community sports provision. 8.2 The potential impact of disrupted service and subsequent closures would result in loss of provision for a wide range of community, including those attending community led sports sessions catering for a wide range of age groups. 9. Organisational implications In September 2013 Lambeth and Cofely GDF Suez (formerly Balfour Beatty Workplace) began work on a supplier capacity building programme to get local facilities management firms working in the Cofely supply chain. 5 local Lambeth suppliers attended a series of Cofely business capacity building workshops and by December 2013 all were approved to begin work in the Cofely supply chain and in the Lambeth FM contract. Additionally, Cofely used a staff payment formula that enabled all staff members to make the London Living Wage without any staff reductions or any reduction in working hours. 9.1 Environmental Cofely will be installing P520 boilers which have a high energy efficiency rating 9.2 Staffing and accommodation There are no staffing implications in the delivery of this project 9.3 Procurement A waiver is requested to clause of the council s contract standing order requiring competition on the basis that it is in the best interest of the council to appoint Cofely to undertake the work at this time.

6 10. Timetable for implementation Activity Proposed Date Waiver report agreed 11 May 2015 Work commissioned 22 May 2015 Work completed June 2015

7 Audit trail Consultation Name/Position Lambeth cluster/division or partner Date Sent Date Received Comments in para: Donna Wiggins Commissioning Throughout John Kerridge Commissioning Throughout Ian Speed Accountant, Capital Enabling: Finance Tolu Fatogbe Principal Technical Services Manager Business & Customer Services: Enabling & 2.5 Finance Paul Badiani David Thomas Enabling: Finance Enabling: Integrated Support Enabling: Corporate Affairs Henry Langford Democratic Services Councillor Jane Cabinet Member: Edbrooke Neighbourhoods Internal Officer Board Date of meeting Procurement Board External Throughout Report history Original discussion with Cabinet Member Report deadline Date final report sent Report no. Part II Exempt from Disclosure/confidential accompanying report? Key decision report Date first appeared on forward plan Key decision reasons Background information Appendices N/A N/A N/A No No N/A None None

8 APPROVAL BY CABINET MEMBER OR OFFICER IN ACCORDANCE WITH SCHEME OF DELEGATION I confirm I have consulted Finance, Legal, Democratic Services and the Procurement Board and taken account of their advice and comments in completing the report for approval: Signature Date Post Mark Cook, Senior Commissioning Officer, Commissioning I approve the above recommendations: Signature Date Post John Kerridge, Associate Director, Commissioning I confirm I have consulted the relevant Cabinet Members, including the Leader of the Council (if required), and approve the above recommendations: Signature Date Post Helen Charlesworth-May, Strategic Director, Commissioning Any declarations of interest (or exemptions granted): Issue Interest declared