Buckie harbour BOWL

Construction and Commissioning Operations and Maintenance Base Harbour Port Facilities

The Moray Council Outline Proposal

Foreword The Moray Council is delighted to provide a proposal to support BOWL offshore windfarm operations. As the harbour authority, Buckie is our number one priority. We are determined to reposition the facility as a versatile commercial harbour and ensure operators have everything needed to support the developing renewables industry. Tandem to this will be the nurturing and development of existing marine businesses.

Buckie Harbour was built in 1877 to replace an earlier harbour west of the present site. It was home to a thriving fishing industry and has an enduring legacy of shipbuilding and marine engineering.

As well as a long-established marine pedigree, Buckie offers vast potential. It is an established allweather harbour close to the BOWL field; there is a skilled and flexible workforce; plentiful opportunities for shore-side development; and good transport links by road, rail, sea and air.

We commend this document to you, and assure you that the Council is firmly committed to making Buckie Harbour an integral part of one of the fastest-growing industries of the 21st century.

Councillor John Cowe Chair of the Economic Development and Infrastructure Services Committee The Moray Council

Rhona Gunn Corporate Director (Economic Development, Planning and Infrastructure)

23rd November 2015

Table of Contents 1

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Introduction 1.1 Purpose

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1.2 Project Overview

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1.3 Requirement

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1.4 BOWL Project Timeline

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1.5 Council and Partners’ overview

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1.6 Procurement Strategy

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Technical Requirements 2.1 Introduction

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2.2 Timeline

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2.3 Detailed specification of defined areas

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2.3.1 Construction and Commissioning Phase

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2.3.2 Operations & Maintenance Phase

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2.3.3 Value Adding Opportunities

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2.4 Communication

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2.5 Access

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2.5.1 Accessibility from Sea

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2.5.2 Accessibility from Land

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2.6 Transport Links (Road / Air / Rail)

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2.7 Accommodation

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Commercial Proposal 3.1 Introduction

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3.2 Construction & Commissioning Phase

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3.3 Operations & Maintenance Phase

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3.4 Option: Travis Perkins Site

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3.5 General Comment & Assumptions

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Appendix 1

Staff biographies

Appendix 2

TMC Land Ownership

Appendix 3

Buckie Harbour – BOWL Proposal: Overview

Appendix 4

Construction & Commissioning Phase

Appendix5

Operation & Maintenance Phase

Appendix 6

March Road Industrial Site

Appendix 7

Met Office R – Downtime Report – Offshore Buckie

Appendix 8

Local Hotels & Guest Houses

Appendix 9

Quality of life

VERSION CONTROL Date 22/11/15 23/11/15

Version

Author

Comment

0.1 1.0

Morris Morris

Draft Technical Narrative for Project Board approval.

Project Exec sign off

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1

Introduction

1.1

Purpose The purpose of this document is to describe how Buckie Harbour fulfils BOWL’s requirement in support of the construction and commissioning and operations and maintenance phases of the Beatrice offshore Wind Farm (OWF).

This document details the facilities and site services that Buckie Harbour can offer. It has been developed by a multi-disciplinary team from The Moray Council (TMC) (see Appendix 1), in collaboration with our Highland and Islands Enterprise Limited (HIE).

It is important to note that work to date has been high-level. The technical proposals have been created using assumed metrics provided by SSE representatives during a site visit on 18th November 2015. It has been developed following discussions with specialist suppliers and other ports involved in supporting similar operations. Detailed proposals will be developed once TMC receives formal notification of BOWL’s intention to operate from the Buckie Harbour.

1.2

Project Overview The Beatrice OWF site is located in the outer Moray Firth on the north-western point of the Smith Bank. It has a planned capacity of 664MW. The 84 x 7.0 MW turbines cover an area of approximately 131 km² with a water depth of 35-48m. At its nearest point, the development lies approximately 52 km from Buckie Harbour.

Beatrice Offshore Windfarm Limited (BOWL) is the partnership formed between SSE Renewables (50%), Nuevas Energias UK (25%) and Copenhagen Infrastructure Partners (25 %).

1.3

Requirements The BOWL requirements are recorded as: 

Provision of shore-side facilities for a 5-year period to support the construction and commissioning phase of the Beatrice OWF development. This includes: o Serviced quayside building suitable for housing modular technical accommodation; o Serviced site for temporary modular office accommodation; o Adjacent car parking for 40 vehicles; o Communication connectivity to technical and office accommodation; o Pontoon structure for 6 to 8 crew transfer vessels (CTV); o Capacity for short-notice expansion of CTV fleet; o 24/7 operations and bunkering services; o Shore-side lifting capability – 2 x Davit cranes; o Safe access from office to quayside operations.

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Provision of harbour facilities for a minimum of 25-years (+ 30 year option) to support the operations and maintenance of the Beatrice OWF post construction and commissioning; o Harbour based, fully serviced site for BOWL to develop office, technical and warehouse campus accommodation; o Adjacent car parking for 72 vehicles;

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o o o o o o o 

1.4

The provision of value-adding opportunities in support of BOWL’s operations: o Buckie-based, fully serviced site suitable for an OrbisEnergy Business Centre (similar to the facility supporting Lowestoft renewable operations); o Adjacent car parking; o Buckie-based, fully serviced site suitable an a training facility; o Adjacent car parking.

BOWL Project Timeline The timeline for the phased work associated with the Beatrice OWF are outlined below:  

1.5

Communication connectivity to campus site; Buckie site suitable for helicopter operations including support infrastructure and accommodation; Pontoon structure for 6 to 8 crew transfer vessels; Capacity for short-notice expansion of CTV fleet (up to 14 vessels); 24/7 operations and bunkering services; Shore-side lifting capability – 2 x Davit cranes; Safe access from campus to quayside operations.

Commissioning and construction activities from January 2017 until January 2022.

Operations and maintenance activities from January 2020 until 2045.

Council and Partners’ Overview The Moray Council The Moray Council is the local authority, serving an area of 2,238 km² on the Moray Firth between Aberdeenshire and the Highlands. The Council delivers a wide range of public services including harbours, education, housing, social work, planning, economic development, roads, environmental protection and leisure.

Partnership is important to the Council and it is firmly committed to working with other organisations to deliver high quality services. Our Community Planning Partners include Highlands and Islands Enterprise, University of the Highlands and Islands, Skills Development Scotland, Police Scotland, Scottish Fire & Rescue Service and NHS Grampian.

Highlands and Islands Enterprise HIE is the Scottish Government agency for economic and community development. Its role is to lead regional growth and development, seek investment opportunities that will be catalysts for change and ensure that the Highlands and Islands derive maximum benefit from existing and emerging opportunities. HIE works with organisations across a diverse region which extends from Shetland to Argyll, and from the Outer Hebrides to Moray, covering more than half of Scotland’s landmass.

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1.6

Procurement Strategy Based on the specification and information provided during the site visit (18th November 2015), the assumption made is for BOWL to lease land and facilities from TMC for the duration of the commissioning and construction and operation and maintenance phases of the project.

TMC is required to acquire land to meet BOWL’s requirement. This includes the relocation of premises, car parking and net storage/lay down space.

The extent of TMC enabling work is primarily services to accommodation sites and the provision of pontoons and quayside equipment. This is to be confirmed with BOWL. The design, build and maintenance of the facilities are the responsibility of BOWL. TMC does not rule out the possibility that alternative proposals or approaches could be considered. Over the last three years, TMC has managed and delivered capital projects with a value of ÂŁ167M.

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Technical Requirements

2.1

Introduction Located on the south of the Moray Firth, Buckie possesses an excellent, commercial, Port Marine Safety code compliant all-weather harbour. Buckie has a long and distinguished shipbuilding heritage and an established local supply chain that services the marine, engineering and offshore sectors. In and about the harbour are Macduff Shipyard, Forsyths, No1 Electical, Fal Propellers, Northern Oils, Regency Oils, Associated Seafoods and a number of smaller companies.

There is a strong local skills-base that includes engineering, energy, marine and manufacturing:    

Energy, marine and manufacturing accounts for 17% of the workforce in Moray (9.7% for the Highlands and Islands) There are over 8,000 people in Moray employed in engineering disciplines (excluding the RAF) Of the 115,930 people (working age) within one hour’s drive of Elgin. 16% have a skilled trade 29% of school leavers in 2014 went on to study engineering, science, mathematics or computing/ICT at HE/FE level (192 individuals).

TMC is a competent harbour authority and owns significant areas of land in and about the harbour area (see appendix 2). Its operational remit includes:   

Health & Safety and environmental controls and governance Marine control (shipping movements, berth scheduling, etc.)

Site coordination and control, including traffic management.

Facilities currently offered by Buckie Harbour include:  24/7 manned harbour operations with sheltered entrance  Pilotage service  Cargo handling in Basin 1 up to 500Te single lift  Public weighbridge  Bunkering available by road tanker from local suppliers, 24 hours, delivering gas oil, marine diesel, petrol and marine lubricants  Secure storage areas  Comprehensive waste management: o Waste oil and waste oil product collection service o Recycling services  Electric power and mains water available on main working quays  Emergency services - Fire station nearby and RNLI boat in Basin 4  International Ship and Port Facility Security (ISPS) code compliance.

The development of the harbour is an economic driver and a strategic priority for the council. A Master Plan for the harbour has been created specifically to enable business development and the provision for inward investment. A number of premises in the nearby Industrial Estate and

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the former quayside Fishmarket have been developed using external funds; further locations around the harbour and shipyard have been earmarked as development opportunities.

In recognition of future needs, TMC has a newly appointed Harbour management team, a dedicated Project Manager and a multi-disciplinary delivery team whose remit is to refine and deliver the Masterplan that includes provision to support OWF operations.

The facilities described in this document will fully meet BOWL’s requirements in support of activities for OWF operations. Our proposal will support streamlined operations in a safe, secure and accessible setting. A full range of harbour services is offered, including exclusive access to specific quay and pier facilities.

There will be opportunities to value engineer all aspects of the proposal in order to reduce costs.

2.2

Buckie Harbour Timeline TMC recognises BOWL’s requirement for services, facilities and infrastructure that meets its construction, commissioning and O&M requirements throughout the OWF’s 25-year lifetime. 

Commissioning & Construction Phase: o August 2016 (TBC) – TMC enabling work complete, BOWL access to Buckie sites. o December 2016 - Buckie harbour infrastructure – full operational capability (FOC)  March 2017 – Start of construction  January 2018 – Grid connection  September 2018 - 1st generation  December 2019 – Full generation  March 2018 to March 2019 - Commissioning (Phase 1)  March 2019 to March 2020 – Commissioning (Phase 2) o December 2021 - End of Commissioning & Construction Phase

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Operations & Maintenance Phase: o TBC – TMC enabling work complete, BOWL access to Buckie site o January 2020 – Buckie harbour infrastructure – FOC  January 2020 to 2045 - O&M provision for 25 years (option for 30 years) o January 2020 - Helicopter Operations – FOC

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Value Adding Packages: o TBC – OrbisEnergy Business Centre – FOC o TBC – Training Facility - FOC

2.3

Detailed specifications of defined areas TMC has identified a number of options that meet BOWL’s requirements for the construction and commissioning phase and for the duration of the operations and maintenance phases.

2.3.1

Requirements for Construction and Commissioning Phase TMC recognises BOWL’s requirements and our proposal shown at appendices 3 and 4. It includes:

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Secure harbour offering offer 365 day protection and minimal harbour swell. The harbour has operated as a base for CTVs since 2008, and the safe transfer of personnel and equipment has been a regular activity throughout this period.

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Exclusive use of the east side of Pier 2 and shared use of Basins 1 and 2.

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TMC can provide a bespoke pontoon system: a 50m-long berthing facility, capable of simultaneously loading two CTVs. The facility will have an operational draught of at least 2.5m. The pontoon design will incorporate the requirement to accommodate an additional 6 CTVs. Diagram 1 – example pontoon layout.

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There will be a dedicated, and exclusive to BOWL, service berth area for waste water pumpout and refueling in the Basin, from Pier 2. This will include a sheltered waste storage area and a fuel storage tank and will be fully accessible by road tanker vehicle, a short distance from Commercial Road (A942). Alternative options for water pump-out and refueling could be considered.

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A double-skinned, bunded 100,000 litre diesel storage tank and lockable metered pump delivery system will be provided for bunkering the CTVs at the quayside, along with a mains water supply connection. The diesel storage tank will be fully accessible by road tanker vehicle.

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A floating pontoon solution offers safe access to and from the quayside via a walkway.

Additional bunkering for equipment and components will be available on the quayside.

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A floating pontoon solution will address any tidal issues. The pontoon system will be designed to meet the final specification of the CTVs and ensure safe egress/access for personnel and equipment. Provisional discussions have already been held with a number of suppliers.

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Shore power and clean water supplies and the refueling of CTVs and provision for portable generators (if required) will be available at all exclusive berths.

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The vacant Fishmarket building (Serial No 1 on appendices 3 and 4) provides space to house modular technical accommodation. The quay is easily accessed by a crane and truck with 30 tonnes capacity on all three sides of the basin.

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Our proposal includes the provision of 2 x Davit cranes, each with 1 tonne capacity, for the loading/ unloading of CTVs.

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Power and clean water supplies and the refueling of CTVs and portable generators (if required) will be available at all exclusive berths.

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Vacant TMC owned land (Serial number 2 on appendices 3 and 4) provides space for modular office accommodation. TMC will put down hard standing, construction sufficient light weight traffic and services to site.

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Car parking space for 40 cars will be provided on TMC owned land south of office site (serial number 3 on appendices 3 and 4). The provision of alternative storage for existing site users will be factored into the commercial element of this proposal.

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A controllable traffic system will ensure the safe passage of staff and equipment across Commercial Road (A492) to the quayside.

Vessels involved in BOWL operations up to 87.5m LOA, 14M wide, 4.5M draught can be accommodated at Basin 1, adjacent to the Fishmarket building. The quayside has a 10Te/m² strength capacity.

2.3.2

Requirements for Operations and Maintenance phase Our proposal, included in diagram 1, recognises the requirement for the operations and maintenance phase including helicopter operations: 

The TMC owned (vacant) Buckie Drifter site, associated carpark and the acquisition of two adjacent sites provides 1800m2 space on which office, warehouse and technical accommodation can be built. The provision of alternative public car parking facilities and provision of sites for displaced neighbours will be factored into the commercial element of this proposal. Appendix 5 shows TMC owned land and adjacent properties.

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Exclusive use of berthing on the east side of Pier 4 and shared use of Basins 4.

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TMC can provide a bespoke pontoon system. A 50m-long berthing facility, capable of simultaneously serving two CTVs. The facility will have an operational draught of at least 2.5m. The pontoon design will incorporate the requirement to accommodate an additional 6 CTVs.

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There will be a dedicated, and exclusive to BOWL, service berth area for water pump-out and refueling in the Basin, from Pier 4. This will include a sheltered waste storage area and a fuel storage tank and will be fully accessible by road tanker vehicle, a short distance from Commercial Road (A942). Alternative options for water pump-out and refueling could be considered.

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A double-skinned, bunded 100,000 litre diesel storage tank and lockable metered pump delivery system will be provided for bunkering the CTVs at the quayside, along with a mains water supply connection. The diesel storage tank will be fully accessible by road tanker vehicle.

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2.3.3

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A floating pontoon solution will be deployed, offering safe access to and from the quayside via a walkway. Additional bunkering for equipment and components will be available on the quayside.

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A floating pontoon solution will address any tidal issues. The pontoon system will be designed to meet the final specification of the CTVs and ensure safe egress/access for personnel and equipment. Provisional discussions have already been held with a number of suppliers.

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The quay is easily accessed by a crane and truck with 30 tonnes capacity on all three sides of the basin.

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Our proposal includes 2 Davit cranes, each with 1 tonne capacity, for the loading/ unloading of CTVs.

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Power and clean water supplies and the refueling of CTVs and portable generators (if required) will be available at all exclusive berths.

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Sufficient space within secured area for parking for 72 vehicles.

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BOWL controlled traffic controls for the safe passage staff and equipment across Commercial Road (A492) to quayside operation from pier 4.

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A serviced site suitable for helicopter operations - helipad, accommodation and fuel storage - is at March Road development site. This is currently a green field site owned by TMC with suitable permissions for development. Appendix 6 shows the site set aside for helicopter operations. o

TMC initial early investigation shows the site is a ‘congested area’ in terms of statute.

Consent from the Flight Operations Inspectorate is required before an unlicensed helicopter base can operate. The ‘congested area’ designation prohibits flying below 1,100ft and therefore an exemption will be required from the Civil Aviation Authority to operate.

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The RAF Lossiemouth Military Air Traffic Zone only extends to a 5 mile radius surface to 3000 feet with a further 5 mile extension 1000 feet to 3000 feet on a heading of 050 magnetic aligned with the main runway 05/23. Buckie is clear of this. Aberdeen is not a factor as it is too far away to need consideration. The helicopter site will have radio contact with RAF Lossiemouth and Aberdeen for traffic information.

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Ministry of Defence safeguarding consultation will be required to ensure military installations are not compromised. A planning application, including an Environmental Impact Assessment will be required. TMC planning officers can advise further if required.

Value adding opportunities The March Road development site provides a suitable location for the OrbisEnergy Business Centre (1800m2), Training facility (1600m2) and helicopter site. It is already zoned for development and affords space for car parking. March Road is 1km from the harbour. A scaled outline of the site is at Appendix 6.

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Early discussions with TMC Economic Development staff indicate that this site could attract industry specific external funding. Moreover, HIE are keen to assist with the development of the concept and the site.

2.4

Communication High speed broadband is available in the locality. Buckie was the first location in Scotland to receive superfast fibre broadband as part of a ÂŁ410m publicly-funded project, delivered in partnership with the Scottish Government, Broadband Delivery UK and BT. Standard broadband speeds are now up to 20 Megabits per second or 76 Megabits per second for fibre-optic cable, more than double the maximum speeds available to the majority of UK homes and businesses. More than 5300 premises in Buckie can now order fibre services.

The closest fibre-optic cable is approximately 250m from the Fishmarket Building and 650m from the Buckie Drifter. 2G/3G is available locally.

2.5

Access

2.5.1

Accessibility from sea Port entry and exit meets the accessibility requirements for O&M activities on the site. Vessels with maximum dimensions of 87.5m LOA, 14M wide, 4.5M draught can safely access the harbour.

TMC has its own 24m dredger in construction (to be delivered spring 2016) to maintain Moray harbours.

The harbour is accessible in all weathers. There are no access restrictions arising from wind and wave directions. There is no requirement for an alternate port of refuge. However, Macduff Harbour (owned by Aberdeenshire Council) would be available if required.

A Met Office downtime analysis report for offshore Buckie appears at Appendix 7.

19m Windcat Workboats have operated out of Buckie Harbour, serving the Beatrice Offshore Windfarm on a regular basis since 2008 without any weather-related interruptions or delays.

2.5.2

Accessibility from land Buckie is located on the A98 between Inverness (56 miles) and Aberdeen (63 miles) and is about 90 minutes’ drive from each. Buckie Harbour is on Commercial Road (A942) just over one mile from the A98.

The harbour is fully accessible to HGVs. The recommended route for access from the A98 would be via March Road, avoiding the town centre .

2.6

Transport Buckie Harbour is strategically positioned between Aberdeen and Inverness with good transport links, including road, rail, air and sea.

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Road Links Buckie is 17 miles from Elgin, the commercial and administrative centre of Moray. Both Inverness and Aberdeen can be reached by road in around 90 minutes and Edinburgh and Glasgow in about 4 hours. A return journey to Buckie from anywhere in Scotland can be undertaken within a day’s HGV drive. Journey times will be significantly reduced by the Scottish Government’s proposed dualling of the A96.

Air Travel Buckie is well linked to air services at Aberdeen (Dyce) and Inverness. From these airports there are 138 flights per week including 35 flights to London airports and a daily connection into the international hub at Amsterdam. Aberdeen Airport at Dyce currently serves 57 international locations. Flight time from Aberdeen or Inverness to London is about 75 minutes.

Rail Travel Buckie’s nearest rail stations are at Keith (15 miles) and Elgin (17 miles). Train services connect Glasgow and Edinburgh at least 12 times each working day with journey times of around 4 hours.

Journey times and frequency of trains are expected to improve over the next three to four years as rail links are upgraded.

2.7

Accommodation Available accommodation within a 30-minute commute of Buckie is set out at Appendix 8. There is a variety of accommodation including guest houses, bed and breakfast and hotels. Much of the hotel accommodation is small scale, however some hotels are capable of hosting large groups of workers. ‘Quality of life’ information on Moray can be found at Appendix 9.

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3.

Commercial Proposal

3.1

Introduction The commercial proposal complements the technical requirement detailed at Section 2. It sets out the commercial aspects of TMC’s offer to BOWL. It includes a Price Schedule. The schedule has been completed using high-level costs derived from information in the technical proposal.

It contains the assumptions made in developing this response. Costs are based on the information provided during the BOWL site visit (18th November 2015).

TMC has applied appropriate policy and standard charges where applicable, used industryrecognised estimating metrics, current market rates and information from specialist contractors and suppliers in developing this commercial proposal. .

The principal terms and conditions of the lease arrangements are included.

It is important to recognise that this proposal is high-level and will be refined once formal notification of BOWL’s intent and requirement to use Buckie Harbour is received. Detailed design has not yet been undertaken and this valuation will therefore require further refinements as the design process develops and specifications are clarified.

Whilst there have been provisional discussions with specialist government offices concerning State Aid compliance, the final proposal will be subject to more detailed scrutiny when specific requirements and associated costs have been confirmed.

3.2

Construction and Commissioning Phase

Fishmarket The Fishmarket will be leased on an inclusive lease basis as TMC occupies much of the property and subdivision is not required. Accordingly, it is proposed to lease the area shown on the draft lease plan comprising 10 bays at the west end of the property on the following main terms: 1. TMC legal costs in granting the lease will be met.

2. BOWL will be responsible for LBTT. 3. Initial rent will be ÂŁ28,900 pa exclusive of VAT. 4. Rental will be reviewed every 3 years in line with increase in industrial rents in the Buckie area generally.

5. TMC will maintain the building including power, water and lighting in the 10 western bays, with exception of BOWL installed plant.

6. TMC will be liable for Non Domestic Rates for the building as a whole.

7. TMC will insure the building on its block insurance policy and BOWL will arrange contents and employee/public liability.

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8. TMC will charge a secondary fee to recover its operational costs of £11,500 per annum exclusive of VAT. 9. Lease period will be 5 years with an option to renew from year to year thereafter.

10. Proposed use: storage.

Total Rental £40,400 inclusive of secondary fee.

5 Commercial Road Site as shown on the draft lease plan will be leased on a Full Repairing Ground Lease basis on the following main terms: 1. TMC legal costs in granting the lease will be met.

2. BOWL will be responsible for LBTT. 3. Initial Rental will be £6,370 per annum exclusive of VAT and rates.

4. Rental will be reviewed every 5 years in line with industrial ground rents in the Buckie area.

5. TMC will surface the area in 125mm Bitmac where required and bring services to the site on a cost recovery basis. Estimated cost £138,500. BOWL can agree to repay on completion of works or by payment of an annual fee for first 5 years only in the amount of £35,605 per annum.

6. TMC will provide traffic control measures for access to Harbour at estimated cost of £91,000. BOWL can agree to repay on completion of works or by payment of an annual fee for first 5 years only in the amount of £22,800 per annum. Removal costs at project end are estimated as £46,000. Given costs are not fixed for removal, propose that is paid for at contract end at cost plus management fee of 20%.

7. Lease period will be 5 years with an option to renew on an annual basis.

8. BOWL will arrange suitable property and liability insurance for the property during the lease period.

9. Proposed use: construction of modular offices and crew facilities.

On the basis that all capital costs are recovered through a secondary fee over the first 5 years (as incurred), the total rental would be £64,775 per annum, exclusive of VAT dropping to £6,370, exclusive of VAT after 5 years. Alternatively the rental would be £6,370 per annum, exclusive of VAT and BOWL would repay the capital costs of £229,500. BOWL will meet cost of traffic system removal estimated £46,000 payable at contracts end.

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Net Repair Area Site as shown on the draft lease plan will be leased on a Full Repairing Ground Lease basis on the following main terms: 1. TMC legal costs in granting the lease will be met.

2. BOWL will be responsible for LBTT. 3. Initial Rental will be £10,000 per annum exclusive of VAT and rates.

4. Rental will be reviewed every 5 years in line with industrial ground rents in the Buckie area.

5. TMC will relocate the net repair area and recover costs to provide alternate facility. Estimated cost £5,000 per annum plus one of cost of £20,000. BOWL can agree to repay on completion of works or by payment of an annual fee for first 5 years only in the amount of £5,000 per annum. TMC will line the area for parking at a cost of £3,000 payable upon completion of works or by payment of an annual fee for first 5 years only in the amount of £850 per annum.

6. Lease period will be 5 years with an option to renew on an annual basis.

7. BOWL will arrange suitable property and liability insurance for the property during the lease period.

8. Proposed use: car parking.

On basis that all capital costs are recovered through a secondary fee over the first 5 years the total Rental would be £20,850 per annum, exclusive of VAT dropping to £15,000, exclusive of VAT after 5 years. Alternatively the rental would be £15,000 per annum, exclusive of VAT and BOWL would repay the capital costs of £23,000.

Pontoons & Quayside Equipment (Construction & Commissioning) Capacity for 8 x CTVs. 82m concrete pontoon with 100,000 litre fuel system, waste disposal sytem, based off Pier 2. Includes exclusive use of pontoon and associated quayside area, bunkering, waste disposal, operation of davits, maintenance of the assets, utilities (not fuel), and all harbour charges. Excludes costs for CCTV, security gates, additional lighting or actual fuel consumed) Cost per annum for 5 years = £403,061 3.3

Operations and Maintenance Phase: Sale & Lease Options Buckie Drifter, 36 Commercial Road and Car Park TMC will consider a lease of the Buckie Drifter and Car Park, as shown on the draft plan provided on following main terms: 1. TMC will lease the site, as is, for the development of an O&M base, offices and crew facilities, warehousing and car parking on a design to be agreed.

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2. BOWL will obtain all statutory consents required for the proposed development.

3. BOWL will meet the Councils legal costs of granting the lease as well as any LBTT liable.

4. BOWL will develop the property and thereafter maintain the property on the basis of a Full Repairing and Insuring lease.

5. TMC will relocate the public car park to an adjoin site and recover costs to provide alternate facility. Estimated one of cost is £347,250. BOWL can agree to repay on completion of works or by payment of an annual fee for first 25 years only in the amount of £32,530 per annum.

6. The initial rental will be £55,950 per annum which will be reviewed annually to RPI or 3 yearly in line with increases in commercial property values in the Buckie area.

The Council will consider the sale of the Buckie Drifter and Car Park, as shown on the draft plan provided on following main terms: 1. TMC will issue information on contamination risks on site and on that basis will sell the property as is, subject to BOWL agreeing to accept liability for contamination.

2. BOWL will meet the Council’s legal costs of the sale and any LBTT. 3. BOWL will pay £968,750 exclusive of VAT. 4. BOWL, or their successors, will to agree offer first refusal to TMC to purchase the property at current market value, should they cease to require the property for the O&M base in the future.

Pontoons & Quayside Equipment (Construction & Commissioning) Capacity for 8 x CTVs. 82m concrete pontoon with 100,000 litre fuel system, waste disposal system, based off Pier 4 Includes exclusive use of pontoon and associated quayside area, bunkering, waste disposal, operation of davits, maintenance of the assets, utilities (not fuel), and all harbour charges. Excluded are costs for CCTV, security gates, additional lighting or actual fuel consumed.

Cost per annum for 25 years = £216,484 Additional vessels (construction or O&M) = £240 per vessel per week 3.4

Optional: Travis Perkins Site (extent to be confirmed) TMC will acquire Travis Perkins property at Freuchny Road and lease the property as is to BOWL on the following Terms: 1. The Travis Perkins property will be incorporated in to the lease of the Buckie Drifter etc. as is.

2. The rent under said lease will increase by £117,500 per annum and said lease will be reviewed in line with the remainder of the property.

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TMC will acquire Travis Perkins property at Freuchny Road and sell it to BOWL on the following Terms: 1. TMC will issue information on contamination risks on site and on that basis will sell the property a is, subject to SSE agreeing to accept liability for contamination.

2. BOWL will meet the Council’s legal costs of the sale and any LBTT. 3. BOWL will pay £1,255,000 exclusive of VAT. 4. BOWL or their successors will agree to offer first refusal to TMC to purchase the property at current market value, should they cease to require the property for the O&M base in the future.

3.5

General Comments and Assumptions The following assumptions and valuation methods were used in assessing the above terms.

Variation in these will result in changes to the figures and possible terms which can be agreed.

1. Areas have been based on plans and OS plans. After survey areas may be changed resulting in changes values/costs.

2. It is assumed that Travis Perkins will agree to sell their property if we agree to relocate them to March Road Industrial estate in a new facility.

3. Travis Perkins site has not been investigated in detail and the valuation which is based on a simple desktop may be subject to review as more detail is available especially in relation to their accounts and the contaminated land situation.

4. Forsyths will sell 36 Commercial Road and McLarens Brae on terms verbally agreed.

5. Contamination screenings provided accurately reflect risks and costs associated with Contaminated Land concerns. Further investigation of these could generate significant cost reductions/increases.

19

Appendix 1 Staff biographies 1

Stephen Cooper - Project Sponsor Head of Direct Services. Joined the Council in August 2012 and has been leading the Buckie Harbour project since then. Secured European funding for the construction of fabrication units in Buckie, won approval for the Buckie Harbour Master Plan and implemented new management arrangements for the Council’s harbours. Prior to joining Moray, Stephen was general manager with Shetland Islands Council at Sulom Voe Harbour. He has a 30 years’ experience of managing public sector services and a proven track record of delivering major capital schemes on time and in budget. A member of the Chartered Institute of Waste Management.

2

David Morris - Project Manager Project Leader. MBA graduate and qualified and experienced project/programme manager. He recently managed a complex transformation programme from concept to closure. Former senior RAF logistics officer and NHS general manager with considerable experience leading successful infrastructure and redesign projects.

3

Rhona Gunn - Project Board Member Corporate Director. Responsible for strategic management, development and delivery of environmental services.

4

Jim Grant - Project Board Member Head of Development Services. An MBA, member of the Chartered Institute of Waste Management and a Member of the Royal Environmental Health Institute of Scotland, Jim has over 30 years service in Local Government. He has been responsible for delivering a range of services related to transport, waste management, environmental sustainability, and carbon management. Since joining Moray Council, he has been responsible for Economic Development, Planning and Regulatory services.

5

Lorraine Paisey - Project Board Member Principal Accountant. MA, PhD and CA. Lorraine trained with Coopers & Lybrand Deloittes before moving into local government in 1992. She developed Moray Council’s first 10-year capital plan, 5-year revenue forecast for public consultation and our corporate asset management planning framework.

6

Alasdair McEachan - Project Team Member Head of Legal & Democratic Services. A solicitor with 19 years’ experience in Local Government responsible for property, procurement and contract matters.

7

Duncan Brown - Project Team Member Development & Operations Manager (Harbours). An MSc in Marine Resources – Development & Protection, Duncan has extensive local authority and port authority management experience. He has also worked in underwater surveying and as an ROV pilot.

8

Alex Burrell - Project Team Member Estates Management. A Chartered Surveyor and Registered Valuer with 27 years in local government, Alex specialises in property management, acquisition and valuation and commercial development project management of retail and industrial schemes. He was Property Manager for the Granton Waterfront Regeneration Project in Edinburgh and is currently leading the expansion of the Council’s Industrial Portfolio.

9

Emma Gordon - Project Team Member Planning Officer, Planning & Development. An MA (Hons) in Town and Country Planning and Member of Royal Town Planning Institute since 2005, Emma has extensive experience in assessing development proposals. She currently works in a strategic planning role, preparing policy framework for the delivery of sustainable economic development and transition to the low carbon economy. She recently gained a PG Dip in Climate Change and Sustainable Development from De Montfort University.

10 David Gowans - Project Team Member Consultancy Manager. BSc Civil Engineering, MSc Construction Innovation and MICE. Responsible for major civil engineering projects, bridges, flood and coastal defences. 37 years experience in major roads, transport interchanges, bridges, flooding and coastal defences projects. David has expertise in construction procurement, contract strategies and project management and is currently delivering £165M programme of flood defence schemes, among other projects.

11 Moray MacLeod - Project Team Member Design Manager, Property Services. Principal Architect who developed the outline design proposal.

12 Dave Malpas - Project Team Member Senior Engineer (Traffic). A Civil Engineer with over ten years’ experience in local government traffic and roads engineering, Dave previously managed the roads on the British Overseas Territory of St Helena, working closely with stakeholders to facilitate access and deliveries during the construction of the Island’s first airport.

13 Eddie Milne - Project Team Member Property Resources Manager. Quantity Surveyor who provided indicative construction costs.

14 Clive Oxford - Project Team Member Harbour Master. Clive’s extensive maritime experience includes periods as a Chief Engineer and Owners’ Engineering Representative on high-value projects in Europe and as a Maritime Pilot in Australasia. A member of UKHMA and IHMA and an Associate Fellow of the Nautical Institute.

Pier 1

Basin 1 Pier 2

Basin 2 Pier 3

Basin 3 Pier 4

Basin 4

Appendix 2 - TMC Land Ownership

Appendix 3 - Buckie Harbour - BOWL Proposal: Overview

Appendix 4 - Construction and Commissioning Phase

Appendix 5 Operation and Maintenance Phase - including land to be acquired

Appendix 6 - March Road Industrial Site

Appendix 7 Met Office Report Introduction This report has been prepared on behalf of Moray Council and presents downtime statistics for Offshore Buckie.

Analysis Methodology This analysis has consisted of using wave model data from the Met Office’s 8km resolution North Atlantic and European WaveWatchIII™ model archive at 57.709°N, 3.041W (Figure 1), which holds thirty-five years of 3hourly data from January 1980 to December 2014.

Figure 1 Location of hindcast model data A single operational criteria have been tested for downtime. Is is: 1. Average wind speed exceeds 21 knots AND significant wave height exceeds 2.0m Downtime analysis consists of analysing the thirty four years of data and recording how many hours in each month in each year satisfied the operational criteria. As well as the number of hours, the number of days on which the criteria was satisfied at least once, is recorded. The overall mean, median 25th and 75th percentiles are also calculated. These are presented in tabular and graphical format in the following pages.

Results

Appendix 8 - Local Hotels and Guest Houses Hotels and Guest Houses

Street

Town

Postcode Rooms

Notes

Dist.

Miles

The Marine Hotel

Marine Place

Buckie

AB56 1UT

28

The Old Coach House

High Street

Buckie

AB56 1AR

21

Struan House Hotel & Restaurant Cluny Square

Buckie

AB56 1HA

8

0.7

Rosemount Guest House

62 East Church Street

Buckie

AB56 1ER

8

0.8

Highlander Hotel

75 West Church Street

Buckie

AB56 1BQ

6

For sale

0.9

The Victoria Hotel

Victoria Street

Portknockie AB56 4LQ

7

For sale

4.3

Mill House Hotel

Tynet

Near Buckie AB56 5HJ

Cullen Bay Hotel

Cullen

AB56 4XA

0.3 For sale

0.7

5.2 14

5.3

The Royal Oak

Castle Terrace

Cullen

AB56 4SD

5.7

The Three Kings Hotel

21 North Castle Street

Cullen

AB56 4SA

Grant Arms Hotel

31 Grant Street

Cullen

AB56 4RS

Bayview Hotel

57 Seafield Street

Cullen

AB56 4SU

7

Norwood Guest House

11 Seafield Place

Cullen

AB56 4TE

6

For sale

6.3

Crannoch Hotel

12 Blantyre Street

Cullen

AB56 4RP

7

For sale

6.3

Grant Arms Hotel

42 High Street

Fochabers

IV32 7DX

Red Lion Inn

67 High Street

Fochabers

IV32 7DU

10

8.4

Gordon Arms

80 High Street

Fochabers

IV32 7DH

17

8.5

Station Hotel

Seafield Street

Portsoy

AB45 2QT

11

11.6

Boyne Hotel

2 North High Street

Portsoy

AB45 2PA

10

11.7

Durn House

Durn Road

Portsoy

AB45 2XT

6

11.8

Fife Arms Hotel

Regent Street

Keith

AB55 5DZ

7

12.6

Grampian Hotel

Regent Square

Keith

AB55 5DX

3

12.7

Ugie Hotel

Church Road

Keith

AB55 5BR

10

13.0

Royal Hotel

109 Church Road

Keith

AB55 5BR

13.1

Commercial Hotel

Mid Street

Keith

AB55 5AE

13.5

Linkwood Lodge (Premier Inn)

15 Linkwood Way

Elgin

IV30 1HY

For sale

6.0 6.1 6.1

8.3

62

16.2

Hotels and Guest Houses

Street

Town

Postcode

Rooms Notes

Dist.

Miles

The Pines Guest House

East Road

Elgin

IV30 1XG

6

16.7

Laichmoray Hotel

Maisondieu Road

Elgin

IV30 1QR

34

17.2

Willowbank Guest House

18 Moss Street

Elgin

IV30 1LU

5

17.2

The Lodge Guest House

20 Duff Avenue

Elgin

IV30 1QS

8

17.2

Southbank Guest House

36 Academy Street

Elgin

IV30 1LP

15

17.4

Auchmillen Guest House

12 Reidhaven Street

Elgin

IV30 1QG

Heather Glen Guest House

1 North Guildry Street

Elgin

IV30 1JR

Royal Hotel

Station Road

Elgin

IV30 1QW

18

17.5

Mansion House Hotel

Blackfriars Road

Elgin

IV30 1AW

23

17.7

Strathdonan Guest House

High Street

Elgin

IV30 1AH

Moraydale Guest House

276 High Street

Elgin

IV30 1AG

7

17.7

The Ben Aigen Hotel

51 New Street

Rothes

AB38 7BJ

13

17.7

Seafield Arms

73 New Street

Rothes

AB38 7BJ

Sunninghill Hotel

Hay Street

Elgin

IV30 1NH

23

17.8

West End Guest House

282 High Street

Elgin

IV30 1AG

6

17.8

Mansefield House

Mayne Road

Elgin

IV30 1NY

41

17.9

Eastbank Hotel

11 - 17 High Street

Rothes

AB38 7AU

10

17.9

Eight Acres

Morriston Road

Elgin

IV30 6UL

53

18.6

Banff Springs Hotel

Golden Knowes Road

Banff

AB45 2JE

36

18.8

Fife Lodge Hotel

Sandyhill Road

Banff

AB45 1BE

8

19.5

Carmelite House Hotel

30 Low Street

Banff

AB45 1AY

9

19.6

Rock House

Clifton Road

Lossiemouth IV31 6DP

8

20.9

Stotfield Hotel

Stotfield Road

Lossiemouth IV31 6QS

46

21.3

Clifton Hotel

5 Clifton Road

Lossiemouth IV31 6DH

10

21.3

Skerrybrae Hotel

Stotfield Road

Lossiemouth IV31 6QS

19

21.4

The Craigellachie Hotel

Victoria Street

Craigellachie AB38 9SR

26

23.1

For sale

17.4 17.4

17.7

17.7

Appendix 9 – Quality of Life Housing There is an excellent choice of housing available in Moray, with a number of large developers creating new homes across the area. New housing has been built on the western edge of Buckie and there is an annual completion of rate of 42 houses per year. The local housing market also provides a wide selection of period and traditional homes. House prices in Moray are 13% below the national average.

Healthcare The area benefits from a modern hospital in Elgin and community healthcare centres across the region.

Seafield Community Hospital in Buckie has respite and rehabilitation facilities. There is no waiting list to register at GP surgeries and waiting times for appointments are extremely low with many being same-day consultations.

Schools Moray holds its own in relation to national attainment levels in secondary education and has an excellent college that is part of the University of the Highlands and Islands campus. There is plentiful nursery provision.

Two new primary schools and one secondary school have recently been completed with construction of a further secondary school due to start later this year. Buckie has four primary and one secondary schools.

Work/life balance Moray has appeal for a wide ranging of interests. For the sporty, a wide range of activities are available, from skiing to sailing, mountaineering to beachcombing, mountain biking to surfing. Wherever one lives in the area, it is never far from a leisure centre or pool, and the area’s main centre also boasts an ice rink. There are a plethora of good restaurants and historical sites to see. Moray is also the malt whisky capital of the world with nearly Facilities Buckie is Moray’s largest coastal town and offers a range of services including a large Tesco supermarket, health centre, community centre, swimming pool and fitness centre, a variety of shops and businesses and recreational spaces for sports and costal walks. There are two high standard golf courses at the eastern and western entrances to the town.

The area’s biggest town and administrative capital is Elgin. This is Moray’s principal shopping centre and many national retailers are represented alongside long established local outlets.

Culture and environment Moray has a wide range of cultural events throughout the year, such as the Speyside Whisky Festival, Speyfest music festival and the European piping championships. Many towns have their own traditional Highland games and there are many historical sites of interest across the area. There is a strong performing arts community that presents theatre, street art and music events at varying locations throughout the year.

The area’s natural environment is host to many species of wildlife, including the indigenous colony of dolphins in the Moray Firth which can be seen from the many vantage points and on boat trips. One of the most afforested areas in the UK, Moray has some spectacular woodlands.