APP/P1.3/SCH. Scheme Overview Proof of Evidence - Appendices Peter Adams

Transcription

1 APP/P1.3/SCH Scheme Overview Proof of Evidence - Appendices Peter Adams

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3 APP/P1.3/SCH PROOF OF EVIDENCE - APPENDICES Peter Adams Scheme Overview TRANSPORT AND WORKS ACT 1992 MIDLAND METRO (WOLVERHAMPTON CITY CENTRE EXTENSION) ORDER INQUIRY JUNE 2015 Page 1 of 43

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5 APP/P1.3/SCH LIST OF APPENDICES Appendix 1- Reports and minutes relating to BCLEP Funding Appendix 2 - Reports and minutes relating to ITA Funding Appendix 3 - Report and minutes relating to WCC Funding Appendix 4 - Letter from Secretary of State for Transport Appendix 5 - Issue of Crown Authority

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7 APP/P1.3/SCH Appendix 1 APP P1.3 SCH Appendices Page 1

8 APP P1.3 SCH Appendices Page 2

9 ITEM 11 REPORT OF THE CITY DEAL AND GROWTH DEAL ADVISORY BOARD TO BLACK COUNTRY EXECUTIVE JOINT COMMITTEE ON 18 FEBRUARY 2015 BLACK COUNTRY LOCAL GROWTH DEAL WOLVERHAMPTON INTERCHANGE PROJECT APPROVAL Key Decision: Forward Plan: Yes Yes 1. PURPOSE OF REPORT 1.1 To present the recommendations of the Advisory Board of the Joint Committee in relation to the Wolverhampton Interchange Growth Deal application by Wolverhampton City Council. To ask the Joint Committee to note as recommended by the Advisory Board a new Green rating for this project, and approve movement to full approval and contracting and subsequent grant agreement by the Accountable Body. 2. RECOMMENDATIONS 2.1 That the Joint Committee note the movement of the Wolverhampton Interchange project from its current Amber to a Green rating following the recommendation of the Head of Regeneration for Wolverhampton City Council to the Advisory Board. 2.1 That the Joint Committee grants approval for the Accountable Body for the Growth Deal (Walsall Council) to proceed to a Grant Agreement with Wolverhampton City Council to deliver the Local Growth Fund (LGF) elements of the Wolverhampton Interchange with delivery to commence in the 2015/16 financial year. 3. REPORT DETAIL 3.1 The Joint Committee received a report on the 17 th September setting out the background and work so far in the development of the Black Country Growth Deal Round 1, approving a way forward for the 15 projects involved, utilising the individual Red Amber Green (RAG) ratings system for each project proposal. 3.2 To ensure that these RAG ratings were as accurate as possible, each project business case was further scrutinised by specialists and officers (October 2014), culminating at BCJC 18/2/15 BC Local Growth Deal Wolverhampton Interchange Project Approval APP P1.3 SCH Appendices Page 3 Page 1 of 6

10 ITEM 11 the Advisory Board Star Chamber on the 10 th November 2014, where representatives from 13 of the 15 projects were further questioned by members of the Advisory Board and the Working Group of the Joint Committee. The remaining two projects were scrutinised at the Advisory Board on 19 th November. At the last meeting on 3 rd December, the Joint Committee gave approval to proceed to contracting for 8 of those 15 projects, with the remaining 7 given in principle approval subject to further work being undertaken. 3.3 The Joint Committee is now requested to consider the recommendations of the Advisory Board on the updated status of projects following further work by the applicants for Wolverhampton Interchange as presented to the Working Group by the sponsoring Head of Regeneration for Wolverhampton City Council. The Joint Committee is requested to grant approval for the Accountable Body for the Growth Deal (Walsall Council) to proceed to a Grant Agreement with Wolverhampton City Council to deliver the Local Growth Fund (LGF) funded elements of the Wolverhampton Interchange Project with delivery to commence in the 2015/16 financial year. 3.4 The revisions arising from this additional information are included in the amended Business Case for the project, set out within the attached Appendix 1, with the evidence substantiating this change held on file by the Accountable Body (Walsall Council). 4. FINANCIAL IMPLICATIONS 4.1 The costs associated with this development work and the delivery of projects that form part of the LGF round 1 will be covered by allocations from government associated with this programme. This includes the use of any interest accrued by the Accountable Body to cover costs associated with the delivery of Accountable Body functions, as approved by its (Walsall Council) Cabinet and the Joint Committee. 5. LEGAL IMPLICATIONS 5.1 The appropriate Grant Agreements are being prepared by the Accountable Body (Walsall Council) and will include all conditions passed onto the LEP by Government, together will all terms, conditions, performance measures and sanctions as required by the approvals/conditions received from Government or approved by the LEP Board or the Joint Committee. BCJC 18/2/15 BC Local Growth Deal Wolverhampton Interchange Project Approval APP P1.3 SCH Appendices Page 4 Page 2 of 6

11 ITEM RISK MANAGEMENT 6.1 Risk is being managed through the on-going assessment of individual projects and their ability to deliver the required spending profiles and outcomes for the programme as required or agreed with Government and set into place by the LEP Board or the Joint Committee. 7. EQUALITY IMPLICATIONS 7.1 None at the time of drafting Back Ground papers The Black Country Strategic Economic Plan (SEP) Business Cases for each Individual Project Attachments Appendix 1 Wolverhampton Interchange, Project Headlines and Outline Business Case RAG Rating Contact Officer & Author Tim Johnson Mark Lavender Strategic Director, Place Joint Committee Programme Manager Wolverhampton City Council Walsall Council Civic Centre, St Peter s Square, Civic Centre, Darwall Street, Walsall. Wolverhampton, WV1 1SH WS1 1TP tim.johnson@wolverhampton.gov.uk lavenderm@walsall.gov.uk Telephone: Telephone: BCJC 18/2/15 BC Local Growth Deal Wolverhampton Interchange Project Approval APP P1.3 SCH Appendices Page 5 Page 3 of 6

12 ITEM 11 Appendix 1 Wolverhampton Interchange, Project Headlines and Outline Business Case RAG Rating Project Description The project will provide a fully integrated multi-modal transport hub, deliver 36,684 sqm of new commercial floor space, creating 2,254 new jobs, improving the strategic gateway to Wolverhampton, the wider Black Country, Birmingham and HS2. A new rail station building will be constructed and the multi-story car park refurbished and extended. Start date: Within the 2015/16 financial year, completing all spend by the close of the 2016/17 financial year, with outcomes generated within the Growth Deal period, up to the end of March Headline Outputs Include: 2,254 jobs created and 36,684 of new commercial floor space, others require clarification. Funding Profile: Total project cost estimated at 113.4m, with LGF requested totalling 4.5m, of which, 3m to be spent during 2015/16, with 1.5m during 2016/17, an intervention rate around 4%. January 2015 Update and Revised RAG Rating PROJECT MANAGEMENT Remained at Green throughout the process, with Project Management arrangements continuing to be refined and appear robust across all aspects of the project. Construction of Block 10 has commenced, supported by a head lease to WCC and pre-lets to ground floor leisure uses, project partners have continued to progress design work across the scheme. ECONOMIC OUTPUTS Wolverhampton City Council has now provided the details of the economic outputs expected within the Growth Deal timeframe through to 2020/21, with agents for Neptune indicating interest from potential office occupiers for Blocks 9 & 10. Following further definition by BIS, there have been a reduction in Business Assist outputs for the programme (see separate report). FUNDING Indicative funding has been allocated by the LEP board of 9m ( 5.4m in 2015/16), which is subject (along with the LEP-approved LTB funding) to final confirmation by the Government as part of our Growth Deal settlement. This will be subject to further approval in accordance with DfT s Business Case approval processes. The status of this element of the project will remain at Amber until the conclusion of the DfT Business Case process, though this does not impact on the overall rating of the project. OVERALL RATING PROPOSED GREEN Recommendation That the Joint Committee grants approval for the Accountable Body for the Growth Deal (Walsall Council) to proceed to a Grant Agreement with Wolverhampton City Council to deliver the Local Growth Fund (LGF) elements of the Wolverhampton Interchange with delivery to commence in the 2015/16 financial year. BCJC 18/2/15 BC Local Growth Deal Wolverhampton Interchange Project Approval APP P1.3 SCH Appendices Page 6 Page 4 of 6

13 ITEM 11 OUTLINE BUSINESS CASE (Including October Revisions) PROJECT TITLE: Wolverhampton Interchange Commercial Gateway Phase 2 PROJECT SPONSOR: Wolverhampton City Council October 2014 Re-Assessment Update and Outstanding Scrutiny Issues PROJECT MANAGEMENT PM arrangements have continued to be refined and appear robust across all aspects of the project. Construction of Block 10 has commenced, supported by a head lease to WCC and pre-lets to ground floor leisure uses. Project partners have continued to progress design work across the scheme. ECONOMIC OUTPUTS Agents for Neptune have indicated interest from potential office occupiers for Blocks 9 & 10. It is not clear what delivery milestones are specified in the Master Development Agreement, including any commitments to development delivery beyond Block 10. FUNDING Status of 9m approved by the former Strategic Transport Board remains unclear Advisory Board/Transport Director to clarify July 2014 Assessment PROJECT MANAGEMENT Senior Responsible Officer (SRO): Marie Bintley, Head of Physical Regeneration. An Interchange Steering Group has been established since 2009 to ensure the delivery of the project. This comprises senior level representatives from the overarching Interchange Partnership and includes senior-level representatives from the City Council, Centro, Neptune Developments, Network Rail, Virgin Trains and the Canals & River Trust. Centro retains overall responsibility for the delivery of the Metro/Rail Station element of the project. Neptune are the City Council s development partner under a Master Developer Agreement which gives them the rights to develop all City Council land within the Interchange area and manage the delivery of the new bus and railway station and multi-storey car park alongside the delivery of new commercial floorspace. A first phase involving the delivery of a new bus station, new highways access and commercial floorspace was completed in 2009/10. A detailed development programme for the transport elements of the project has been provided. Construction of the car park will commence in April 2015 and railway construction will follow on from this over the period January 2016 to March Commercial floorspace will be delivered over the period to 2018/19 and further programme information on this element of the project has been requested. A series of risk registers have been provided for each element of the project and focus on the key risks associated with the development process. ECONOMIC OUTPUTS The key economic outputs (set out below) delivered by the project are based on end user occupation of commercial floorspace (offices, retail, leisure and hotel end uses) and are derived from the HCA Employment Densities Guidance (2010). Further detail has been requested on the timing of outputs over the period to 2020/21. BCJC 18/2/15 BC Local Growth Deal Wolverhampton Interchange Project Approval APP P1.3 SCH Appendices Page 7 Page 5 of 6

14 Headline outputs Total Jobs created 2,254 Floorspace (sqm) 36,684 ITEM 11 This project is forecast to deliver nearly 40% of the job outputs and over 30% of new commercial floorspace for the entire Growth Deal programme by 2020/21 and therefore any reduction in outputs of a significant scale is a key strategic risk to the programme. The economic downturn has stalled progress in the delivery of commercial floorspace and the City Council has helped to facilitate delivery of Block 10 by taking a head lease but it is understood that marketing agents are reporting a strong enquiry list from potential occupiers with evidence of latent demand for Grade A office accommodation. In addition to the further work to clarify and confirm the output profile, the project will require close monitoring of the commercial development process to ensure job outputs are being delivered in accordance with projections. FUNDING The total LGF funding (profiled below) is as originally requested, however the profile of LGF funding has now changed with reduced funding in 2015/16. A revised expenditure profile together with a profile of monthly LGF spend for 2015/16 to account for this change has been requested. The new railway and metro stations and multi-story car park will be substantially funded via prudential borrowing by Centro together with 9m of funding previously allocated by the LEP though the Strategic Transport Board. Further clarification has been requested as to the status of this allocation and whether its release is subject to the completion of a full business case, which has been substantially completed by Centro. LGF spend profile 2015/16 All Apr-Jun Jul-Sep Oct-Dec Jan-Mar 2015/16 Future years Total LGF tbc tbc tbc tbc 3,000,000 1,500,000 4,500,000 Private sector match funding is dependent on the delivery of commercial floorspace and therefore the status of this funding is not confirmed at this stage and will need to be the subject of ongoing financial viability appraisals. A further financial consideration relates to the level of optimism bias applied to the forecasting of capital costs. Value engineering through the design process may be expected to reduce overall costs and a mechanism needs to be agreed which allocates any cost savings to the LEP and Centro as the primary funders. KEY ISSUES & RISKS Overall risk rating: This is an important strategic project in the Growth Deal not least given the scale of projected job outputs. Achieving these outputs will be dependent on the take up of commercial development, and existing market analysis indicates that successful early phases could help to establish the Interchange as a key business location and drive further commercial demand. However, further detailed information on output forecasts is required and this project will require close monitoring in terms of the timing of the delivery of outputs. Delivery management arrangements appear well established and the appointment of a lead developer to advance a comprehensive masterplan has ensured that delivery risks have generally been fully assessed and understood. Advanced expenditure by the project partners has demonstrated delivery commitment and provides reassurance that the full package of funding can be secured alongside LGF funding. The funding agreement for LGF should include a mechanism for allocating any cost savings between the primary funders. BCJC 18/2/15 BC Local Growth Deal Wolverhampton Interchange Project Approval APP P1.3 SCH Appendices Page 8 Page 6 of 6

15 ITEM 12 REPORT OF THE CITY DEAL AND GROWTH DEAL ADVISORY BOARD TO BLACK COUNTRY EXECUTIVE JOINT COMMITTEE ON 18 FEBRUARY 2015 BLACK COUNTRY LOCAL GROWTH DEAL WOLVERHAMPTON INTERCHANGE PROJECT APPROVAL (delivery of the Pre-Allocated Local Growth Fund (previously Local Transport Funding) funded elements) Key Decision: Forward Plan: Yes Yes 1. PURPOSE OF REPORT 1.1 To present the recommendations of the Advisory Board of the Joint Committee in relation to the Wolverhampton Interchange Growth Deal application by Wolverhampton City Council. To ask the Joint Committee to note as recommended by the Advisory Board a new Green rating for this project, and approve movement to full approval and contracting and subsequent grant agreement by the Accountable Body. 2. RECOMMENDATIONS 2.1 That the Joint Committee note the movement of the Wolverhampton Interchange project from its current Amber to a Green rating following the recommendation of the Head of Regeneration for Wolverhampton City Council to the Advisory Board. 2.1 That the Joint Committee grants approval for the Accountable Body for the Growth Deal (Walsall Council) to proceed to a Grant Agreement with Wolverhampton City Council to deliver the Pre-Allocated Local Growth Fund (previously Local Transport Board funding) elements of the Wolverhampton Interchange with delivery to commence in the 2015/16 financial year. 3. REPORT DETAIL 3.1 The Joint Committee received a report on the 17 th September setting out the background and work so far in the development of the Black Country Growth Deal BCJC 18/2/15 BC Local Growth Deal Wolv Interchange - Project Approval (delivery of Pre-allocated LGF elements) APP P1.3 SCH Appendices Page 9 Page 1 of 6

16 ITEM 12 Round 1, approving a way forward for the 15 projects involved, utilising the individual Red Amber Green (RAG) ratings system for each project proposal. 3.2 To ensure that these RAG ratings were as accurate as possible, each project business case was further scrutinised by specialists and officers (October 2014), culminating at the Advisory Board Star Chamber on the 10 th November 2014, where representatives from 13 of the 15 projects were further questioned by members of the Advisory Board and the Working Group of the Joint Committee. The remaining two projects were scrutinised at the Advisory Board on 19 th November. At the last meeting on 3 rd December, the Joint Committee gave approval to proceed to contracting for 8 of those 15 projects, with the remaining 7 given in principle approval subject to further work being undertaken. 3.3 The Joint Committee is now requested to consider the recommendations of the Advisory Board on the updated status of projects following further work by the applicants for Wolverhampton Interchange as presented to the Working Group by the sponsoring Head of Regeneration for Wolverhampton City Council. The Joint Committee is requested to grant approval for the Accountable Body for the Growth Deal (Walsall Council) to proceed to a Grant Agreement with Wolverhampton City Council to deliver the Pre-Allocated Local Growth Fund (previously Local Transport Board funding) elements of the Wolverhampton Interchange with delivery to commence in the 2015/16 financial year. 3.4 The revisions arising from this additional information are included in the amended Business Case for the project, set out within the attached Appendix 1, with the evidence substantiating this change held on file by the Accountable Body (Walsall Council). 4. FINANCIAL IMPLICATIONS 4.1 The costs associated with this development work and the delivery of projects that form part of the LGF round 1 will be covered by allocations from government associated with this programme. This includes the use of any interest accrued by the Accountable Body to cover costs associated with the delivery of Accountable Body functions, as approved by its (Walsall Council) Cabinet and the Joint Committee. 5. LEGAL IMPLICATIONS 5.1 The appropriate Grant Agreements are being prepared by the Accountable Body (Walsall Council) and will include all conditions passed onto the LEP by Government, together will all terms, conditions, performance measures and sanctions as required by the approvals/conditions received from Government or approved by the LEP Board or the Joint Committee. BCJC 18/2/15 BC Local Growth Deal Wolv Interchange - Project Approval (delivery of Pre-allocated LGF elements) APP P1.3 SCH Appendices Page 10 Page 2 of 6

17 6. RISK MANAGEMENT ITEM Risk is being managed through the on-going assessment of individual projects and their ability to deliver the required spending profiles and outcomes for the programme as required or agreed with Government and set into place by the LEP Board or the Joint Committee. 7. EQUALITY IMPLICATIONS 7.1 None at the time of drafting. Back Ground papers The Black Country Strategic Economic Plan (SEP) Business Cases for each Individual Project Attachments Appendix 1 Wolverhampton Interchange, Project Headlines and Outline Business Case RAG Rating Contact Officer & Author Tim Johnson Mark Lavender Strategic Director, Place Joint Committee Programme Manager Wolverhampton City Council Walsall Council Civic Centre, St Peter s Square, Civic Centre, Darwall Street, Walsall. Wolverhampton, WV1 1SH WS1 1TP tim.johnson@wolverhampton.gov.uk lavenderm@walsall.gov.uk Telephone: Telephone: BCJC 18/2/15 BC Local Growth Deal Wolv Interchange - Project Approval (delivery of Pre-allocated LGF elements) APP P1.3 SCH Appendices Page 11 Page 3 of 6

18 ITEM 12 Appendix 1 Wolverhampton Interchange, Project Headlines and Outline Business Case RAG Rating Project Description The project will provide a fully integrated multi-modal transport hub, deliver 36,684 sqm of new commercial floor space, creating 2,254 new jobs, improving the strategic gateway to Wolverhampton, the wider Black Country, Birmingham and HS2. A new rail station building will be constructed and the multi-story car park refurbished and extended. Start date: Within the 2015/16 financial year, completing all spend by the close of the 2016/17 financial year, with outcomes generated within the Growth Deal period, up to the end of March Headline Outputs Include: 2,254 jobs created and 36,684 of new commercial floor space, others require clarification. Funding Profile: Total project cost estimated at 113.4m, with LGF requested totalling 4.5m, of which, 3m to be spent during 2015/16, with 1.5m during 2016/17, an intervention rate around 4%. January 2015 Update and Revised RAG Rating PROJECT MANAGEMENT Remained at Green throughout the process, with Project Management arrangements continuing to be refined and appear robust across all aspects of the project. Construction of Block 10 has commenced, supported by a head lease to WCC and pre-lets to ground floor leisure uses, project partners have continued to progress design work across the scheme. ECONOMIC OUTPUTS Wolverhampton City Council has now provided the details of the economic outputs expected within the Growth Deal timeframe through to 2020/21, with agents for Neptune indicating interest from potential office occupiers for Blocks 9 & 10. Following further definition by BIS, there have been a reduction in Business Assist outputs for the programme (see separate report). FUNDING Indicative funding has been allocated by the LEP board of 9m ( 5.4m in 2015/16), which is subject (along with the LEP-approved LTB funding) to final confirmation by the Government as part of our Growth Deal settlement. This will be subject to further approval in accordance with DfT s Business Case approval processes. The status of this element of the project will remain at Amber until the conclusion of the DfT Business Case process, though this does not impact on the overall rating of the project. OVERALL RATING PROPOSED GREEN Recommendation That the Joint Committee grants approval for the Accountable Body for the Growth Deal (Walsall Council) to proceed to a Grant Agreement with Wolverhampton City Council to deliver the Pre-Allocated Local Growth Fund (previously Local Transport Board funding) elements of the Wolverhampton Interchange with delivery to commence in the 2015/16 financial year. BCJC 18/2/15 BC Local Growth Deal Wolv Interchange - Project Approval (delivery of Pre-allocated LGF elements) APP P1.3 SCH Appendices Page 12 Page 4 of 6

19 ITEM 12 OUTLINE BUSINESS CASE (Including October Revisions) PROJECT TITLE: Wolverhampton Interchange Commercial Gateway Phase 2 PROJECT SPONSOR: Wolverhampton City Council October 2014 Re-Assessment Update and Outstanding Scrutiny Issues PROJECT MANAGEMENT PM arrangements have continued to be refined and appear robust across all aspects of the project. Construction of Block 10 has commenced, supported by a head lease to WCC and pre-lets to ground floor leisure uses. Project partners have continued to progress design work across the scheme. ECONOMIC OUTPUTS Agents for Neptune have indicated interest from potential office occupiers for Blocks 9 & 10. It is not clear what delivery milestones are specified in the Master Development Agreement, including any commitments to development delivery beyond Block 10. FUNDING Status of 9m approved by the former Strategic Transport Board remains unclear Advisory Board/Transport Director to clarify July 2014 Assessment PROJECT MANAGEMENT Senior Responsible Officer (SRO): Marie Bintley, Head of Physical Regeneration. An Interchange Steering Group has been established since 2009 to ensure the delivery of the project. This comprises senior level representatives from the overarching Interchange Partnership and includes seniorlevel representatives from the City Council, Centro, Neptune Developments, Network Rail, Virgin Trains and the Canals & River Trust. Centro retains overall responsibility for the delivery of the Metro/Rail Station element of the project. Neptune are the City Council s development partner under a Master Developer Agreement which gives them the rights to develop all City Council land within the Interchange area and manage the delivery of the new bus and railway station and multi-storey car park alongside the delivery of new commercial floorspace. A first phase involving the delivery of a new bus station, new highways access and commercial floorspace was completed in 2009/10. A detailed development programme for the transport elements of the project has been provided. Construction of the car park will commence in April 2015 and railway construction will follow on from this over the period January 2016 to March Commercial floorspace will be delivered over the period to 2018/19 and further programme information on this element of the project has been requested. A series of risk registers have been provided for each element of the project and focus on the key risks associated with the development process. ECONOMIC OUTPUTS The key economic outputs (set out below) delivered by the project are based on end user occupation of commercial floorspace (offices, retail, leisure and hotel end uses) and are derived from the HCA Employment BCJC 18/2/15 BC Local Growth Deal Wolv Interchange - Project Approval (delivery of Pre-allocated LGF elements) APP P1.3 SCH Appendices Page 13 Page 5 of 6

20 ITEM 12 Densities Guidance (2010). Further detail has been requested on the timing of outputs over the period to 2020/21. Headline outputs Total Jobs created 2,254 Floorspace (sqm) 36,684 This project is forecast to deliver nearly 40% of the job outputs and over 30% of new commercial floorspace for the entire Growth Deal programme by 2020/21 and therefore any reduction in outputs of a significant scale is a key strategic risk to the programme. The economic downturn has stalled progress in the delivery of commercial floorspace and the City Council has helped to facilitate delivery of Block 10 by taking a head lease but it is understood that marketing agents are reporting a strong enquiry list from potential occupiers with evidence of latent demand for Grade A office accommodation. In addition to the further work to clarify and confirm the output profile, the project will require close monitoring of the commercial development process to ensure job outputs are being delivered in accordance with projections. FUNDING The total LGF funding (profiled below) is as originally requested, however the profile of LGF funding has now changed with reduced funding in 2015/16. A revised expenditure profile together with a profile of monthly LGF spend for 2015/16 to account for this change has been requested. The new railway and metro stations and multi-story car park will be substantially funded via prudential borrowing by Centro together with 9m of funding previously allocated by the LEP though the Strategic Transport Board. Further clarification has been requested as to the status of this allocation and whether its release is subject to the completion of a full business case, which has been substantially completed by Centro. LGF spend profile 2015/16 All Apr-Jun Jul-Sep Oct-Dec Jan-Mar 2015/16 Future years Total LGF tbc tbc tbc tbc 3,000,000 1,500,000 4,500,000 Private sector match funding is dependent on the delivery of commercial floorspace and therefore the status of this funding is not confirmed at this stage and will need to be the subject of ongoing financial viability appraisals. A further financial consideration relates to the level of optimism bias applied to the forecasting of capital costs. Value engineering through the design process may be expected to reduce overall costs and a mechanism needs to be agreed which allocates any cost savings to the LEP and Centro as the primary funders. KEY ISSUES & RISKS Overall risk rating: This is an important strategic project in the Growth Deal not least given the scale of projected job outputs. Achieving these outputs will be dependent on the take up of commercial development, and existing market analysis indicates that successful early phases could help to establish the Interchange as a key business location and drive further commercial demand. However, further detailed information on output forecasts is required and this project will require close monitoring in terms of the timing of the delivery of outputs. Delivery management arrangements appear well established and the appointment of a lead developer to advance a comprehensive masterplan has ensured that delivery risks have generally been fully assessed and understood. Advanced expenditure by the project partners has demonstrated delivery commitment and provides reassurance that the full package of funding can be secured alongside LGF funding. The funding agreement for LGF should include a mechanism for allocating any cost savings between the primary funders. BCJC 18/2/15 BC Local Growth Deal Wolv Interchange - Project Approval (delivery of Pre-allocated LGF elements) APP P1.3 SCH Appendices Page 14 Page 6 of 6

21 BLACK COUNTRY EXECUTIVE JOINT COMMITTEE Wednesday 18 February 2015 DECISIONS ITEM 2. Notes of Previous Meeting held on 3 December Matters Arising from the notes of the previous meeting. DECISION It was resolved that: The notes of the meeting held on 3 December 2014 be confirmed as a true record. None. 4. Declarations of Interest None. 5. Local Government (Access to Information) Act, 1985 (as amended): To agree that the public be excluded from the private session during consideration of the agenda items indicated for the reasons shown on the agenda. 6. Black Country European Strategic Investment Fund Committee request for a Member nomination There are no items to be considered in private session. It was resolved that the BCJC: Nominates: Councillor Roger Lawrence, Leader of Wolverhampton City Council to join the Black Country ESIF (European Structural Investment Fund) Committee as the Black Country Executive Joint Committee Representative. 7. Black Country City Deal Progress Report - Sarah Middleton, Black Country Consortium Ltd 8. Black Country Local Growth Deal Pipeline process and current schedule of projects - Sarah Middleton, Black Country Consortium Ltd It was resolved that the BCJC: Notes the contents of this report. It was resolved that the BCJC: Notes the contents of this report. BCJC Decisions APP P1.3 SCH Appendices Page 15 Page 1 of 5

22 9. Black Country City Deal High Value Manufacturing Apprenticeships Appointment of Managing Agent Sarah Middleton, Black Country Consortium Ltd 10. Black Country Local Growth Deal (Round 1) Progress Update and Approval for Output Changes on previously approved projects Sarah Middleton, Black Country Consortium Ltd It was resolved that the BCJC: 2.1 approves the appointment of the Black Country Consortium to act as the Managing Agent for the delivery of the High Value Manufacturing Apprenticeships element of the City Deal programme. It was resolved that the BCJC: 2.1 notes the progress being made in developing the project paths from Amber to Green ratings as summarised in Appendix 1, with 6 reports (one for each project) demonstrating positive movement, presented individually for consideration later as part of this meeting. 2.2 as recommended by the Advisory Board approves the updated project outputs for the Growth Deal 2015/16 projects - as set out in Appendix 2, these changes are associated with the following four approved projects: Science, Technology and Prototyping Centre, Growing Priority Sectors, FAB Kit Programme, Growing the City Centre Business and Events Offer. 11. Black Country Local Growth Deal Wolverhampton Interchange Project Approval Tim Johnson, Wolverhampton CC It was resolved that the BCJC: 2.1 note the movement of the Wolverhampton Interchange project from its current Amber to a Green rating following the recommendation of the Head of Regeneration for Wolverhampton City Council to the Advisory Board. 2.2 grants approval for the Accountable Body for the Growth Deal (Walsall Council) to proceed to a Grant Agreement with Wolverhampton City Council to deliver the Local Growth Fund (LGF) elements of the Wolverhampton Interchange with delivery to commence in the 2015/16 financial year. BCJC Decisions APP P1.3 SCH Appendices Page 16 Page 2 of 5

23 12. Black Country Local Growth Deal Wolverhampton Interchange (delivery of the Pre-Allocated Local Growth Fund (previously Local Transport Funding) funded elements) Project Approval Tim Johnson, Wolverhampton CC It was resolved that the BCJC: 2.1 notes the movement of the Wolverhampton Interchange project from its current Amber to a Green rating following the recommendation of the Head of Regeneration for Wolverhampton City Council to the Advisory Board. 2.2 grants approval for the Accountable Body for the Growth Deal (Walsall Council) to proceed to a Grant Agreement with Wolverhampton City Council to deliver the Pre-Allocated Local Growth Fund (previously Local Transport Board funding) elements of the Wolverhampton Interchange with delivery to commence in the 2015/16 financial year. 13. Black Country Local Growth Deal Regeneration of Bilston Centre Project Approval Tim Johnson, Wolverhampton CC It was resolved that the BCJC: 2.1 note the movement of the Bilston Centre Regeneration Programme from its current Amber to a Green rating following the recommendation of the Head of Regeneration for Wolverhampton City Council to the Advisory Board. 2.2 grants approval for the Accountable Body for the Growth Deal (Walsall Council) to proceed to a Grant Agreement with Wolverhampton City Council to deliver the Local Growth Fund (LGF) elements of the Regeneration of Bilston Centre with delivery to commence in the 2015/16 financial year. BCJC Decisions APP P1.3 SCH Appendices Page 17 Page 3 of 5

24 14. Black Country Local Growth Deal Accessing Growth Programme Project Approval Tim Johnson, Wolverhampton CC It was resolved that the BCJC: 2.1 note the movement of the Accessing Growth Programme from an Amber to a Green rating following the recommendation of the Head of Regeneration for Wolverhampton City Council to the Advisory Board. 2.2 grants approval for the Accountable Body for the Growth Deal (Walsall Council) to proceed to a Grant Agreement with Wolverhampton City Council to deliver the Local Growth Fund (LGF) funded elements of the Accessing Growth Programme with delivery to commence in the 2015/16 financial year. 15. Black Country City Deal Growth Hub - Appointment of Accountable Body Tim Johnson, Wolverhampton CC 16. Black Country Local Growth Deal M6 Junction 10 Improvement Programme Project Approval Simon Neilson It was resolved that the BCJC: 2.1 approves the appointment of Wolverhampton City Council to act as the Accountable Body for the delivery of the Growth Hub element of the City Deal programme. It was resolved that the BCJC: 2.1 notes the movement of the M6 Junction 10 Improvement Programme from an Amber to a Green rating following the recommendation of the Head of Regeneration for Walsall Council to the Advisory Board. 2.2 grants approval for the Accountable Body for the Growth Deal (Walsall Council) to proceed to a Grant Agreement (or appropriate internal or external service level agreement or contracts with the appropriate bodies) to deliver the Local Growth Fund (LGF) elements of the M6 Junction 10 Improvement Programme, commencing in the 2015/16 financial year. 17. Black Country Local Growth Deal M6 Junction 10 Improvement Programme (delivery of the Pre-Allocated Local Growth Fund funded elements) Project Approval Simon Neilson It was resolved that the BCJC: 2.1 notes the movement of the M6 Junction 10 Improvement Programme from an Amber to a Green rating following the recommendation of the Head of Regeneration for Walsall Council to the Advisory Board. 2.2 grants approval for the Accountable Body for BCJC Decisions APP P1.3 SCH Appendices Page 18 Page 4 of 5

25 the Growth Deal (Walsall Council) to proceed to a Grant Agreement (or appropriate internal or external service level agreement or contracts with the appropriate bodies) to deliver the Pre- Allocated Local Growth Fund (previously Local Transport Board funding) elements of the M6 Junction 10 Improvement Programme, commencing in the 2015/16 financial year. 18. Black Country City Deal Appointment of Managing Authority Simon Neilson, Walsall MBC 19. Black Country City Deal Public Works Loan Board (PWLB) Fund Appointment of Accountable Body Nick Bubalo, Sandwell MBC It was resolved that the BCJC: 2.1 approves the appointment of Walsall Council to act as the City Deal Managing Authority, to coordinate the activities of the individual (4) Accountable Bodies for the City Deal Programme. It was resolved that the BCJC: 2.1 approves the appointment of Sandwell MBC in the role of Accountable Body for the City Deal PWLB Black Country Investment Fund. Date of future meetings Wednesday 22 April 2015, 11.15am at Wolverhampton CC Wednesday 17 June 2015, 11.15am at Dudley MBC Wednesday 16 September 2015, 11.15am at Walsall MBC Wednesday 2 December 2015, 11.15am at Sandwell MBC BCJC Decisions APP P1.3 SCH Appendices Page 19 Page 5 of 5

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29 Agenda Item No. 9 Meeting: Centro Members Joint Committee Date: 26 January 2015 From: Subject: Lead Member: Head of Programme Management 2015/16 Capital Programme Integrated Transport Block Funded Elements Finance, Delivery & Performance Monitoring - Councilor Worrall 1. PURPOSE 1.1 The purpose of this report is to inform Centro Members of the 2015/16 Integrated Transport Block based Capital Programme. 2. RECOMMENDATIONS 2.1 The Committee is asked to: a. Approve the proposed 2015/16 Integrated Transport Block (ITB) Programme as shown in Appendix BACKGROUND 3.4 As part of the 2015/16 Business Planning Process, an exercise was carried out to develop the Centro Capital Programme. The main objective of the exercise was to ensure that Centro s Investment is focused in the most effective areas, particularly given the context of the limited funding availability following a reduction in Centro s share of the regional Integrated Transport Block Allocation /16 INTEGRATED TRANSPORT BLOCK ALLOCATION /16 will be the first year of the new capital funding settlements which most notably, sees the creation of the Local Growth Fund (LGF) to support the West Midlands Strategic Economic Plans. As the LGF is partly afforded by government by a corresponding reduction in Integrated Transport Block, the National (and hence Regional) ITB allocations have decreased significantly. 4.2 In addition to the changes to the National ITB allocation, at a regional level, The ITA have approved a reduced allocation to Centro of 25%, from the previous 40%. Centro s subsequent share of the ITB versus the historic poision is as detailed below: APP P1.3 SCH Page Appendices 1 Page 23

30 4.2 In previous years, the Integrated Transport Block grant has been predominantly used to support Centro s Minor Works Programme and also to provide local contributions to make more significant schemes (such as BBAF, LSTF and the Access to Growth Pinch Point Programme) possible. 4.3 Due to the significant constraints on this grant, however, the main focus of the 2015/16 business planning process for the ITB funding has been on business critical activity, mostly focused in the area of Asset Management. 5 INTEGRATED TRANSPORT BLOCK PROGRAMME 1. The 2015/16 programme is shown within Appendix 1 and consists of schemes continuing from 2014/15 and new investment in 2015/16 funded from the new ITB allocation. 2. Due to the reduction in ITB grant, in 2015/16 there has been an element of overprogramming which means the current cost of the works exceed the available funding by 1.4m. It is intended that this position will be closely monitored and frequent updates will be provided to Centro Members throughout the year. 3. As detailed below, the most significant area of investment is in the area of Asset Management, where the replacement of life expired assets will allow the existing public transport infrastructure to continue to be made available for use. 4. Appendix 2 gives a short description of the works to be undertaken for each project where investment is being proposed from the new 2015/16 ITB allocation. APP P1.3 SCH Page Appendices 2 Page 24

31 6 FUTURE YEAR PROGRAMMES 6.1 The National ITB values are now confirmed by DfT as 258m p.a. ( m p.a. Met Area) for the next 3 years from April 2015 and provisionally (at the same level) for the following 3 years to 2020/ Whilst the 2015/16 ITB allocation has been based upon the 25% share of the regional grant, The ITA is currently developing a Strategic Transport Plan for the Metropolitan area. 6.3 It is expected that the scheme definition which comes from the Strategic Transport Plan will inform the distribution of the ITB grant across Centro and the Local Authorities and as such, it is possible the future share to Centro of the ITB will be based on an alternative method. 6.4 To give an indication of the levels of investment post 2015/16, Appendix 1 does contain provisional schemes from 2016 to 2020 for information only, again based mainly around prioritising the availability of use of existing public transport infrastructure. Stephen Terry-Short Head of Programme Management Centro Media Contact: Contact Officer: Background Papers: Steve Swingler, Media Manager Tel: (0121) steveswingler@centro.org.uk Stephen Terry-Short Head of Programme Management Tel: (0121) Nil APP P1.3 SCH Page Appendices 3 Page 25

32 APPENDIX 1 - Proposed ITB Funded Capital Programme 2015 / /16 ITB Suggested Allocation INDICATIVE ONLY PROGRAMMES AND FUNDING ALLOCATION TO BE INFORMED BY ITA LONG TERM PLAN Previous Allocation From New Allocation 16/17 ITB Forecast 17/18 ITB Forecast 18/19 ITB Forecast 19/20 ITB Forecast MAJOR SCHEMES Better Bus Area Fund (Centro Match) 404,597 TRANSFORMING BUS TRAVEL TBT Infrastructure Coventry City Centre Totems 164,000 Platinum Route Infrastructure Upgrades 450,000 Solihull Gateway 300,000 Wolverhampton City Centre Shelters 190,000 TBT Real Time Information Completion of 2014/15 Infrastructure Programme 209,664 Platinum Route Equipment Upgrades 200, , ,000 Swift - Smartcard Programme 449,026 Rail Smart Ticketing 300,000 Birmingham City Centre Shelter Optimisation 124,152 50,848 73,000 45,000 Highway Scheme Development (Bus reliability and punctuality) 60,000 60,000 60,000 TRANSFORMING RAIL TRAVEL New St Gateway Way Finding 44,800 Park & Ride Delivery 500, ,000 One Station Contribution 250,000 Safety & Security Improvements (Bescot / P&R CCTV / Lighting / Walking) 100,000 SYSTEMS ARCHITECTURE Asset Management System 25,162 72,678 ASSET MANAGEMENT Design Standards for Centro's Assets 24,332 Bus Station Capital Replacements & Refurbishment 78,215 86, ,905 2,079, ,505 Park & Ride and Bus Station Resurfacing Programme 242, , , , ,774 40,750 Park & Ride Lighting Replacement / Enhancements 178,171 79,250 33,350 5,850 5,400 Park & Ride Upgrades (Cycle Facilities / Height Restrictors) 37,475 56, ,795 36,382 89,950 ICT Rolling Programme 64,000 36, , , , ,000 Walsall Cutting 890,216 Help Point Replacement 70,000 CCTV Replacement 711, ,292 83,604 81, ,033 Shelter Infrastructure (Replacement of Time Expired Stock) 132, ,000 36,000 Bus and Rail RTI - Life Expired Replacements 53,712 26,856 26,856 26,856 Walsall Cutting - Structural Improvements 135,000 Building Information Modelling (BIM) 50,000 PROJECT DEVELOPMENT Gateway Controlled Project Development 310, ,000 Hagley Road SPRINT 494,000 A45 SPRINT 150,000 METRO CAF Tram Communication Equipment 250,000 Metro - Wolverhampton City Centre Extension 1,250,000 1,250,000 Pipeline Projects (Scheme Definition and Costs being Refined) 600,000 2,000,000 2,350,000 3,500,000 TOTAL 2,730,304 5,767,125 4,084,948 4,902,092 5,158,444 4,566,238 ITB Funding Available New Funding - 4,382,000 4,382,000 4,382,000 4,382,000 4,382,000 Unallocated Carry Forward 2,706,159 (24,145) (1,409,270) (1,112,218) (1,632,310) (2,408,754) TOTAL ITB BALANCE 2,706,159 4,357,855 2,972,730 3,269,782 2,749,690 1,973,246 Carried Forward Balance (24,145) (1,409,270) (1,112,218) (1,632,310) (2,408,754) (2,592,992) Page 4 APP P1.3 SCH Appendices Page 26

33 Appendix 2 - Description of Works from New Allocation PROJECT 2015/16 New Allocation Description of Works TRANSFORMING BUS TRAVEL Platinum Route Infrastructure Upgrades Platinum Route RTI Equipment Upgrades Rail Smart Ticketing Birmingham City Centre Shelter Optimisation Highway Scheme Development (Bus reliability and punctuality) 450,000 Contribution towards the delivery of bus priority and enhanced infrastructure on Lode Lane (Solihull) 200,000 Real Time Information developments to support enhanced information provision on Platinum routes 300,000 Introduction of nnetwork on Swift for Centro Direct Debit customers. Further improvements to the customer experience for users of BCCI by optimizing the design solution of 50,848 the shelter infrastructure to meet customer needs. Contribution towards the development of highway schemes to improve reliability of bus services to support 60,000 partnership commitments with bus operators. TRANSFORMING RAIL TRAVEL Park & Ride Delivery 500,000 Allocation for the construction for the delivery of a Park and Ride Site during 2015/16 One Station Contribution Safety & Security Improvements (Bescot / P&R CCTV / Lighting / Walking) Contribution towards the One Station Project to provide a stronger link between Moor Street and New 250,000 Street Rail Stations in Birmingham. A package of safety and security improvements for Bescot Stadium Station / Park and Ride CCTV, 100,000 lighting and walking route improvements ASSET MANAGEMENT Bus Station Capital Replacements & Refurbishment Park & Ride and Bus Station Resurfacing Programme Park & Ride Lighting Replacement / Enhancements Park & Ride Upgrades (Cycle Facilities / Height Restrictors) ICT Rolling Programme Walsall Cutting Help Point Replacement Replacement of life expired assets in Bus Stations relating to internal environment, access, electrical and 78,215 security. Post 2015/16 allocations make allowance for mid life refurbishments at Bilston and Coventry Bus Stations. Surfacing and lining at a programme of bus station and park & ride sites based on condition. This also 249,203 include to optimise the site to enable maximum availability when relined in line with the space optimisation programme. Replacement of life expired assets on a spend to save basis by upgrading these to LED lanterns with 79,250 dimming profiling to save further on power use and maintenance together with remote operational capability. Replacement life expired of components within the park and rides such as fencing, cycle facilities, height 37,475 barriers and bollards. 36,000 Replacement of business critical ICT Infrastructure 890,216 Final stages of the In-fill project 70,000 Replacement of life expired help point infrastructure at rail stations CCTV Replacement 711,206 Renewal of life expired and at risk CCTV infrastructure and associated cabling to renew cameras and help points across all sites. Improved cameras in order to support the smarter travel offer to have infrastructure enabled to have car counting capacity to provide real time messages showing the number of spaces left at sites for websites, SMS etc for customers. Shelter Infrastructure (Replacement of Time Expired Stock) 132,000 Replacement of life expired shelter infrastructure on the basis of poorest condition first. Bus and Rail RTI - Life Expired Replacements 53,712 London Midland to replace life expired Centro funded assets at railway stations within the West Midlands. Walsall Cutting - Structural Improvements Building Information Modelling (BIM) To undertake works to North Walsall Cutting bridge following the outcome of the principle structural 135,000 assessments. To facilitate the government requirement for public sector organisations to meet the Building Information 50,000 Modelling (BIM) level 2 stage by PROJECT DEVELOPMENT Gateway Controlled Project Development Development of the Capital Programme pipeline projects managed by the internal governance arrangements 440,000 procedures of the Gateway Process. Hagley Road SPRINT 494,000 Continuation of the detailed design and development of the Hagley Road SPRINT project. A45 SPRINT 150,000 Initial development of the A45 SPRINT Project METRO CAF Tram Communication Equipment Installation of ground infrastructure to enable full functionality of Onboard multi-media system, Passenger 250,000 counting system)and management of CCTV on Trams. Page 5 APP P1.3 SCH Appendices Page 27

34 Agenda Item No. 4 Meeting: Subject: Date: Centro Members Joint Committee Minutes Monday 26 January 2015 at 2.00pm /14 Minutes PRESENT: Councillors McNicholas (Chairman) Alden, Barrie, Clarke, Cruise, Ditta, Eaves, Evans, Hanif, Hartley, Horton, Hughes, Hunt, Huxtable, Lal, Linnecor, Miks, O Shea, Richards, Robinson, Rowley, Singh, Taylor, Worrall and Zada. Apologies for absence were received from Councillors Azim and Claymore. The minutes of the meeting held on 24 November 2014 were agreed, and signed by the Chairman, as a correct record. /14 Finance, Delivery & Performance Monitoring Committee The minutes of the Finance, Delivery & Performance Monitoring Committee held on 10 November 2014 were considered. RESOLVED that, there being no matters requiring the approval of Centro members, the minutes of the Finance, Delivery & Performance Monitoring Committee held on 10 November 2014 be noted. 100/14 Putting Passengers First Committee The minutes of the Putting Passengers First Committee held on 8 December 2014 were considered. In respect of minute no. 113/14 ( Travel Information Delivery Plan Update ), the Chirman RESOLVED that, there being no matters requiring the approval of Centro Members, the minutes of the Putting Passengers First Committee held on 20 October 2014 were noted. 101/ /16 Capital Programme - Integrated Transport Block Funded Elements AGREED 56 APP P1.3 SCH Appendices Page 28

35 /14 London Midland Direct Award Members considered a report of the Director of Operations on public transport safety and security performance and on an update on the Safer Travel Partnership. Horton want 7 day railway. Working conditions of staff not referred to. New franchise coming and still not resolved. Need 21 st century railway. Worrall at LRG raised Walsall Wolverhampton line. How do we include this project into a future scenario. Sargant reinstating this is long time aspiration. Can t do it during 15 month direct award phase. DfT won t fund unless strong business case. Need to do this, so look to do something under rail devo. Likely to be a big subsidy required. Clarke asking for a business case to be prepred. Hunt business case needs intermediate stops. Centro was looking at tramtrain. That might be the answer. We can t have huge subsidy. Huxtable govt took co-franchisee role off ITAs. Under a direct award, will this happen again? Will we be able to stop this happening again. Inskip No change in our powers. Co-sig doesn t exist. Under devo, we ll have a greater say. Don t expect this to give us co-sig,but have greater say with DfT. We will also be able to prioritise funding from DfT. We have a good relationship with DfT. AGREED. 103/14 ITA Levy 2015/16 NOTED. Hughes authorities cutting back. Centro Services going up! Need to cut back? Why? Aspinall increase is 1% pay rise for staff and 1.5% for inflation. Section 5 says looking at reducing the figures. Sprate piece of work for future years. Alden will this work eradicate the deficit shown? Aspinall yes Cruise 3.14 capacity to move R&R services into areas needing them, can we do that ASAP? Using resources better. Inskip yes, we ll do that. Looking at how we monitor the use of services. Will go back with this info to Darren Cooper. AGREED. Pension Reform 57 APP P1.3 SCH Appendices Page 29

36 AGREED Annual Equalities Review and Equality Scheme Update AGREED Matters Arising from the West Midlands Integrated Transport Authority Agenda on 28 January 2015 Chairman went through the agenda for next meeting. Centro Members Review Cruise re. performance. What are their intention of raising 75% reliability of punctuality Me to circulate papers to CM. Huxtable review of CM. Will we discuss this? Chair up to ITA. Not our call. Huxtable we should still make comment. Model isn t sufficient. We want aggregate proportionality across West Midlands. Oppose scrapping canals and road safety meetings. Retrograde. Want more partnership working. Richards draw to their intention that Cabinet Member should be appointed here. Re. road safety board, their proposals are detrimental to road safety. Alden disappointed that our body is being destroyed. Doesn t take into account workload issues. Leaders can t do everything. What will be the function of this meeting? Nothing to discuss. Chairman Road safety champion can meet with blue light partners. We will delivery leaders policy decisions. Hunt relationship between ITA and us never thought through. What feedback do we give? How do they create a relationship with backbench and opposition councillors. Need to be clearer about what all these bodies/committees do. Chairman must also see this in context of a combined authority. Huxtable do need quality. Cabinet Members need to be here. Cruise how long do they spend reading reports?! Clarke *you re living in cookoo land*. Want to see Roger Lawrence sitting here telling us about their plans. NOTED. 104/14 Forthcoming Events Kath, Cruise, Ditta, Linnecor, Huxtable JM from Centro 58 APP P1.3 SCH Appendices Page 30

37 Midland Connect Huxtable, Horton PPF conference [The meeting ended at 3.10pm] CHAIRMAN 59 APP P1.3 SCH Appendices Page 31

38 APP P1.3 SCH Appendices Page 32

39 APP/P1.3/SCH Appendix 3 APP P1.3 SCH Appendices Page 33

40 APP P1.3 SCH Appendices Page 34

41 This report is PUBLIC [NOT PROTECTIVELY MARKED] Agenda Item No: 6 Cabinet (Resources) Panel 9 December 2014 Report title Decision designation Cabinet member with lead responsibility Key decision In forward plan Wards affected Accountable director(s) Originating service Accountable employee(s) Report to be/has been considered by Capital programme 2014/15 to 2018/19 quarter two review RED Councillor Andrew Johnson Resources Yes Yes All Keith Ireland, Managing Director Sarah Norman, Community Tim Johnson, Education and Enterprise Strategic Finance Mark Taylor Tel Strategic Executive Board Assistant Director Finance (6609) mark.taylor@wolverhampton.gov.uk 6 November 2014 Recommendation(s) for action or decision: 1. The Cabinet (Resources) Panel recommends that Council: a) Approves the revised medium term general fund capital programme of million, an increase of 24.9 million from the previously approved programme (paragraph 2.3), reflecting the latest projected expenditure for the medium term. b) Approves additional resources for six new and seventeen existing projects totalling 24.9 million (paragraph 4.9). c) Approves the revised medium term Housing Revenue Account (HRA) capital programme of million, an increase of 2.0 million from the previously approved programme (paragraph 5.2). Page 33 APP P1.3 SCH Appendices Page 35 Report Pages Page 1 of 24

42 This report is PUBLIC [NOT PROTECTIVELY MARKED] d) Approves new capital projects for Heath Town estate redevelopment, the Installation and upgrade of Carelink alarm systems (paragraph 5.4) and the programme for Garage demolitions (paragraph 5.9) included within the revised HRA capital programme. e) Delegates authority to the Cabinet Member for Leisure and Communities and the Cabinet Member for Resources in consultation with the Strategic Director for Community and the Assistant Director Finance to award a grant from the Sports Investment Strategy (paragraph 4.9). 2. The Cabinet (Resources) Panel is recommended to: a) Approve six General Fund virements with a gross transfer value of 2.9 million detailed at Appendix B (paragraph 4.6). b) Approve the updated schedules of works for the capital projects under the following directorates; i) Community: Urban Parks Refurbishment, Sports Investment Strategy (appendix C1) ii) Delivery: ICTS, Leisure Centres and Disposals (appendices C2 - C3) iii) Education and Enterprise: BSF, Capital Maintenance and Expansion of Primary School Places (appendices C4 C6) c) Delegate authority to the Cabinet Member for Resources in consultation with the Assistant Director Finance to approve the allocation of the provision of the Disposals Programme to individual capital schemes (see also paragraph 4.8). d) Approve the HRA virement of 100,000 from the External Works programme to facilitate a new programme for Garage demolitions, for which approval is also sought (paragraph 5.9). Recommendations for noting: The Cabinet (Resources) Panel is asked to note: 1. The expenditure position for quarter two of 2014/15 which stands at 27.3% of the approved general fund capital budget (paragraph 3.3). 2. The expenditure position for quarter two of 2014/15 which stands at 23.8% of the approved Housing Revenue Account (HRA) capital budget (paragraph 5.1). Page 34 APP P1.3 SCH Appendices Page 36 Report Pages Page 2 of 24

43 This report is PUBLIC [NOT PROTECTIVELY MARKED] 1.0 Purpose of report 1.1 To provide Cabinet (Resources) Panel with an update on the financial performance of the General Fund and HRA capital programmes for 2014/15 and the revised forecast for 2014/15 to 2018/19 as at quarter two of 2014/ To recommend revised General Fund and HRA capital programmes for the period 2014/15 to 2018/ Executive Summary 2.1 At its meeting on 16 July 2014, Council approved a General Fund capital programme totalling million for the period 2014/15 to 2018/ Table 1 below shows the changes proposed when comparing the approved budget with that proposed, along with the resources identified to finance the proposed change. Table 1: Summary of the forecast budgets compared to approved General Fund 2014/ / / / /19 Total Budget Approved 124,220 48,007 14,657 5,921 2, ,841 Projected 122,692 57,035 29,195 8,752 2, ,710 Variance (1,528) 9,028 14,538 2,831-24,869 Financing Approved Internal resources 82,837 41,097 7, ,940 External resources 41,383 6,910 6,910 5,598 1,100 61, ,220 48,007 14,657 5,921 2, ,841 Projected Internal resources 80,803 47,960 17,585 3, ,438 External resources 41,889 9,075 11,610 5,598 1,100 69, ,692 57,035 29,195 8,752 2, ,710 Variance (1,528) 9,028 14,538 2,831-24, This report recommends variations to the approved programme totalling an increase of 24.9 million bringing the total revised capital programme to million. 2.4 The approved General Fund capital budget for 2014/15 amounts to million. Expenditure to the end of quarter two 2014/15 totals 33.9 million. This represents 27.3% of the approved budget. 2.5 At its meeting on 17 September 2014, Council approved a revised Housing Revenue Account (HRA) business plan, including the HRA capital programme totalling million for 2014/15 to 2018/19. Page 35 APP P1.3 SCH Appendices Page 37 Report Pages Page 3 of 24

44 This report is PUBLIC [NOT PROTECTIVELY MARKED] 2.6 The approved HRA capital budget for 2014/15 amounts to 84.4 million. Expenditure to the end of quarter two 2014/15 totals 20.1 million. This represents 27.3% of the approved budget. 2.7 A further revised business plan totalling million is proposed for the 2014/15 to 2018/19 period, an increase totalling 2.0 million. A summary analysis of variances when comparing the approved HRA budget to that proposed can be seen in Table 2. Table 2: Summary of the HRA forecast budgets compared to approved Housing Revenue Account 2014/ / / / /19 Total Budget Approved 84,431 50,503 38,233 33,178 31, ,710 Projected 74,935 62,040 38,233 33,178 31, ,751 Variance (9,496) 11, ,041 Financing Approved Internal resources 73,675 50,503 38,233 33,178 31, ,954 External resources 10, ,756 84,431 50,503 38,233 33,178 31, ,710 Projected Internal resources 63,285 62,040 38,233 33,178 31, ,101 External resources 11, ,650 74,935 62,040 38,233 33,178 31, ,751 Variance (9,496) 11, , /15 General Fund capital programme 3.1 At its meeting on 16 July 2014, Council approved a 2014/15 General Fund capital programme totalling million. 3.2 Table 3 provides an analysis of general fund capital expenditure to the end of quarter two compared to the approved budget. Table 3: Expenditure to the end of quarter two of 2014/15 Directorate Approved budget Expenditure to the end of quarter two Variance over / (under) Expenditure as % of budget % Delivery 24,070 3,229 (20,841) 13.4% Community 8,077 2,338 (5,739) 28.9% Education and Enterprise 86,849 28,170 (58,679) 32.4% Housing Private Sector 5, (5,089) 2.6% Total 124,220 33,872 (90,348) 27.3% Page 36 APP P1.3 SCH Appendices Page 38 Report Pages Page 4 of 24

45 This report is PUBLIC [NOT PROTECTIVELY MARKED] 3.3 General fund expenditure to the end of quarter two stands at 33.9 million against a budget of million which represents 27.3% of the approved budget for 2014/ The latest financial monitoring information indicates that capital expenditure during 2014/15 will be lower than the approved budget at million, a reduction of 1.7 million. This reflects 2.7 million increase in planned expenditure offset by a 4.5 million decrease in expenditure as a result of project re-profiling over subsequent years. 3.5 To understand the impact that this might have on the Council s capital resources it is necessary for 2014/15 requirements to be considered alongside the medium term capital programme covering the period up to and including 2018/19. An analysis of the medium term projected expenditure compared to budget is provided in Table 1 and a more detailed analysis is provided in Section Medium term General Fund capital programme 4.1 A revised medium term capital programme, covering the period 2014/15 to 2018/19 of million is proposed (see Table 1), a projected increase of 24.9 million. 4.2 The projected increase has been analysed over existing directorates and is detailed in Table 4. Table 4: Variance analysis of 2014/15 to 2018/19 projected budgets by Directorate Directorate Approved budget 2014/15 to 2018/19 Forecast budget 2014/15 to 2018/19 Variance over / (under) Community 9,346 9,283 (63) Delivery 45,673 51,342 5,669 Education and Enterprise 124, ,954 19,480 Housing Private Sector 15,348 15,131 (217) Total 194, ,710 24, The projected increase of 24.9 million reflects additional expenditure of 36.8 million not already assumed in the approved capital programme requiring Council approval, offset by expenditure reductions of 11.9 million. 4.4 Any proposals to increase the level of the capital programme are considered by Capital Programme Working Group, via a capital appraisal mechanism, prior to approval being sought from Councillors. 4.5 Table 5 provides a summary of the projected changes in expenditure for new and existing projects requiring Council approval. Specific project details in relation to these changes are provided at appendix A. The transfer of some projects from one Directorate to another is also detailed which has a net nil impact on the overall capital budget. Page 37 APP P1.3 SCH Appendices Page 39 Report Pages Page 5 of 24

46 This report is PUBLIC [NOT PROTECTIVELY MARKED] Table 5: Summary analysis of the projected change in expenditure Projected change in expenditure Total increase / Directorate New Existing (decrease) in projects projects Restructure expenditure Community 70 (95) (38) (63) Delivery 2,808-2,861 5,669 Education & Enterprise 12,438 9,865 (2,823) 19,480 Private Sector Housing - (217) - (217) Total 15,316 9,553-24, Requests for budget virements between projects are detailed in appendix B. 4.7 Ancillary schedules of works for approval are detailed in appendices C1 to C Approval is sought to delegate authority to the Cabinet Member for Resources in consultation with the Assistant Director Finance to approve the allocation of the provision of the Disposals Programme to individual capital schemes. This is to enable works to be initiated in relation to the disposal of non-strategic sites, the nature of which would not allow sufficient time to gain normal Council approvals. 4.9 Approval is also sought to delegate authority to the Cabinet Member for Leisure and Communities and the Cabinet Member for Resources in consultation with the Strategic Director for Community and the Assistant Director Finance to award a grant from the Sports Investment Strategy Table 6 analyses the type of resources identified to finance the projected change in expenditure. Table 6: Summary of financing for projected change in expenditure Projected Summary Internal External change in resources resources resources New projects 8,308 7,008 15,316 Existing projects 9, ,553 Total 17,498 7,371 24, The programme is financed through internal and external resources. Internal resources reflect expenditure that requires the use of Council resources and over which the Council therefore has absolute discretion. Capital receipts are only assumed where there is reasonable certainty that they will be received within the required timeframe. External resources is funding secured from external organisations e.g. central government The implications of the levels of borrowing required have been fully reflected in the revenue budget and medium term financial strategy. Page 38 APP P1.3 SCH Appendices Page 40 Report Pages Page 6 of 24

47 This report is PUBLIC [NOT PROTECTIVELY MARKED] 4.13 Details of the financing of the revised capital programme are shown in Table 7. Table 7: Summary of recommended changes to financing of the General Fund capital programme 2014/15 to 2018/19 Approved Recommended budget budget Variance Resource as % of expenditure Expenditure 194, ,710 24, % Financing Internal resources Capital receipts 17,790 16,565 (1,225) 7.5% Prudential borrowing 114, ,833 18, % Revenue contributions 800 1, % Subtotal 132, ,438 17, % External resources Grants & contributions 61,901 69,272 7, % Subtotal 61,901 69,272 7, % Total 194, ,710 24, % Note: The use of Revenue contributions will be reviewed at year end to identify whether this is the appropriate option or whether borrowing will provide the opportunity to deliver in year savings General Fund capital receipts totalling 16.6 million have been assumed within the capital programme for quarter two and can be seen in Table 8. These receipts reduce the need for Prudential Borrowing. Table 8: Receipts assumed in the revised capital programme Projected 2014/ / / / /19 Total General Fund capital receipts 7,007 3,693 4, , Housing Revenue Account capital programme 5.1 The approved HRA capital budget for 2014/15 amounts to 84.4 million. Expenditure to the end of quarter two 2014/15 totals 20.1 million. This represents 23.8% of the approved budget. 5.2 The Housing Revenue Account Business Plan totalling million was approved by Council at its meeting on 17 September Latest financial monitoring information forecasts expenditure to be 2.0 million higher than the approved budget and is reflected in the revised budget of million. Page 39 APP P1.3 SCH Appendices Page 41 Report Pages Page 7 of 24

48 This report is PUBLIC [NOT PROTECTIVELY MARKED] 5.4 This variance reflects additional expenditure requirements of 7.1 million offset by reduced expenditure of 5.1 million across projects within the HRA capital programme. 5.5 Approval is sought for the inclusion of new projects reflected in the 7.1 million increase in expenditure. 41,000 relates to an installation and upgrade of Carelink alarms project and 5.0 million for the Heath Town estate redevelopment. The Heath Town estate redevelopment budget is profiled as 2.0 million in 2014/15 and 3.0 million for 2015/ Approval to the increase in the replacement programme is also sought which totals 1.9 million. Of this 1.9 million, 1.6 million is financed by way of receipts and the balance from prudential borrowing, this is ensuring that receipts are not used for more than 30% of the total spend on any one project. From the unallocated budget line for the replacement programme it is proposed to allocate 4.0 million to the Tap works site development project. 5.7 Recent expenditure forecasts indicate a reduced budget requirement totalling 2.4 million for the Decent Homes programme reflecting programme re-profiling and the extension of year six projects in order to maximise the number of properties improved to the Decent Homes Standard. 5.8 A further reduction of 2.0 million is projected for the Other Stock Conditions programme, with the majority attributable to a reduction in planned expenditure of 1.4 million on the Energy Efficiency Works programme. 5.9 Approval is sought for a virement of 100,000 from the External Improvement programme budget to a new programme for Garage Demolitions, for which approval is also sought. 6.0 Key budget risks 6.1 Appendix D provides an analysis of the risks associated with the capital programme, along with the details of the risk control measures that are in place in order to manage and mitigate these risks as far as possible. The overall risk associated with the programme continues to be quantified as amber. 7.0 Financial implications 7.1 The financial implications are discussed in the body of this report. [SH/ /R] 8.0 Legal implications 8.1 Section 151 of the Local Government Act 1972 requires local authorities to make arrangements for the proper administration of their financial affairs. Page 40 APP P1.3 SCH Appendices Page 42 Report Pages Page 8 of 24

49 This report is PUBLIC [NOT PROTECTIVELY MARKED] 8.2 The Local Government Act 2003 brought in the current regime for capital finance for local authorities. It reduced the level of central control over local authority borrowing and capital expenditure. 8.3 The Council is required to comply with statutory codes of practice including the Prudential Code for Capital Finance in Local Authorities and Treasury Management in Public Services. 8.4 The legal framework therefore places a greater responsibility on Cabinet Members to ensure properly managed borrowing and capital expenditure without the need for government consent. 8.5 The main principles of the framework are prudence, sustainability and affordability. [RB/ /P] 9.0 Corporate landlord implications 9.1 Projects funded and delivered through the Council s capital programme typically have significant impact on the Council s property portfolio. Corporate landlord implications must be considered and included in relevant documents and reports when individual capital projects and programmes are being developed Equalities implications 10.1 Under the Equality Act 2010, the Council has a statutory duty to pay due regard to the impact of how it carries out its business on different groups of people. This is designed to help the Council identify the particular needs of different groups and reduce the likelihood of discrimination; the nine equality strands covered by the legislation are: Age Disability Gender reassignment Pregnancy and Maternity Religion or Belief Race Sex Sexual Orientation Marriage and Civil Partnership (this strand only applies to employment and not to service delivery). These strands include everyone Cabinet Members should also be aware that under the Equality Act 2010, they must have due regard to the Public Sector Equality Duty when making budget decisions. What this means in practice is that Cabinet Members must consciously think about the three aims Page 41 APP P1.3 SCH Appendices Page 43 Report Pages Page 9 of 24

50 This report is PUBLIC [NOT PROTECTIVELY MARKED] of the Public Sector Equality Duty as part of the decision making process, the three aims are to have due regard to the need to: Eliminate discrimination, harassment and victimisation. Advance equality of opportunity by removing or minimising disadvantages, meet differing needs and encourage participation. Foster good relations between people from different groups Consideration of equality issues must influence the decisions reached by public bodies including: How they act as employers. How they design, deliver and evaluate services. How they commission and procure from others The Brown Principles, established as a result of a legal case concerning Post Offices closures in 2008, provide an important checklist when making decisions: Decision makers must be made aware of their duty to have due regard to the identified goals. Due regard must be fulfilled before and at the time that a particular decision is being considered, not afterwards. The duty must be exercised in substance, with rigour and with an open mind. It is not a question of ticking boxes. The duty is not delegable; it must be fulfilled by the organisation in question rather than through the use of an external body to do it to the organisation. The duty is a continuing one. It is good practice to keep an adequate record showing that it has considered the identified needs There is a range of individual projects delivered through the Council s capital programme that have significant impacts on specific groups and equality implications should be considered when individual capital schemes are being developed This requirement would also apply if there were to be any redirection of capital funding in year so as to ensure that the impact of any changes is considered Environmental implications 11.1 A wide range of projects delivered through the capital programme have significant environmental implications and are geared to promote improvements to the physical environment. Page 42 APP P1.3 SCH Appendices Page 44 Report Pages Page 10 of 24

51 This report is PUBLIC [NOT PROTECTIVELY MARKED] 12.0 Schedule of background papers 12.1 Capital Budget Outturn 2013/14 including Quarter One Monitoring 2014/15 Report to Cabinet on 25 June 2014, Council on 16 July Housing Revenue Account (HRA) Business Plan Update Quarter One 2014/15 Report to Cabinet on 23 July 2014, Council on 17 September Schedule of Appendices App Title Page A Analysis of projected change in expenditure B Virements 15 C Ancillary schedule of works D Key Budget Risks Page 43 APP P1.3 SCH Appendices Page 45 Report Pages Page 11 of 24

52 This report is PUBLIC [NOT PROTECTIVELY MARKED] Analysis of projected change in expenditure Appendix A Community Upgrading of accessible facilities at Action for Independence - Albert Road Proposed scheme is funded by Community Capacity Grant transferred from Residue on Capital Investment in Community Capacity budget Community Capacity Grant Proposed transfer of grant to fund a new scheme 'Upgrading of accessible facilities at Action for Independence - Albert Road' Urban Parks refurbishment programme - Spring Road Industrial Estate (Taylor Road) Net reduction of budget to better reflect Section 106 contributions available. Bilston Leisure Centre Due to a restructure the scheme has been reallocated to the Delivery directorate with no impact to the overall capital budget. New / Existing project Approved budget 000 Proposed budget 000 Forecast change in expenditure 000 Internal resources 000 Financing External resources 000 New Existing 70 - (70) (70) Existing 1,228 1,203 (25) (25) Restructure 38 - (38) (38) - Subtotal 1,336 1,273 (63) (38) (25) Delivery Leisure Centre Enhancement Programme New / Existing project Approved budget 000 Proposed budget 000 Forecast change in expenditure 000 Internal resources 000 Financing External resources 000 Proposed scheme is for targeted investment for the development/upgrade of leisure facilities funded by council resources and Sport England grant. Disposals Programme Proposed scheme is for the various sites that have been scheduled for disposal as part of the Medium Term Financial Strategy. Bilston Leisure Centre Due to a restructure the scheme has been transferred from the Community directorate with no impact to the overall capital budget. Corporate Asset Management Due to a restructure the scheme has been transferred from the Education & Enterprise directorate with no impact to the overall capital budget. Private Sector Housing Empty Property Strategy Planned expenditure increase to reflect the rise in empty property receipts avaialble to fund the project. All Saints Phase 1 Proposed reduction in planned expenditure to reflect the resources available to fund the project. Grant and Loan Fund Withdrawal of the scheme from the capital programme. New New - 2,103 2,103 2,103 - Restructure Restructure - 2,823 2,823 2,823 - Subtotal - 5,669 5,669 5, New / Existing project Approved budget 000 Proposed budget 000 Forecast change in expenditure 000 Internal resources 000 Financing External resources 000 Existing Existing (77) (77) - Existing (300) (300) - Subtotal (217) (217) - Page 44 APP P1.3 SCH Appendices Page 46 Report Pages Page 12 of 24

53 This report is PUBLIC [NOT PROTECTIVELY MARKED] Analysis of projected change in expenditure Appendix A Education & Enterprise Universal Infant Free School Meals Scheme approved by Cabinet (Resources) Panel on 8th April 2014 not previously reported. Civic Halls Improvement Plan Scheme approved by Cabinet on 1st October 2014 is funded by 6.2M external grant via Black Country Local Enterprise Growth Deal and a transfer of 4.2M from the Reallocation of Resources for Regeneration Priorities which was identified following a review of the Council s capital programme reported to Cabinet on 25 June 2014 West Side On 26th March 2014 Cabinet approved the 'West Side Delivery Strategy' and allocation of resources from 'Reallocation of resources for Regeneration Priorities' following a review of City Centre funding and the wider capital programme. New / Existing project Approved budget 000 Proposed budget 000 Forecast change in expenditure 000 Internal resources 000 External resources 000 New New - 10,400 10,400 4,200 6,200 New - 1,450 1,450 1,450 - Expansion of Primary School Places On 17th September 2014 Council approved an Existing 14,986 30,221 15,235 14, additional council resources of 14,801M for Phase 3 Primary Expansion schemes over a period of four years from 2014/15 to 2017/18. Building Schools for the Future Increase of external resources relates to BSF 0.080K grant funding from DofE not previously included in programme and a reflected reduction of 0.058K contributions from Academy Schools. Increase of internal resources relates to an increase in school's contributions school's agreed variations Diploma Exemplar Learning Centre Existing 16,761 17, Proposed budget increase to accommodate a Existing retention payment. Planned maintenance Proposed allocation of uncommitted Capital Maintenance grant to the scheme for 2014/15. Existing Asbestos Removal Proposed allocation of uncommitted Capital Maintenance grant to the scheme for 2014/15. Boiler/Pipework Replacments Proposed allocation of uncommitted Capital Maintenance grant to the scheme for 2014/15. Roof/Window/Lighting Replacements Proposed allocation of uncommitted Capital Maintenance grant to the scheme for 2014/15. St Peter's/St Edmund's Access Road Proposed allocation of uncommitted Capital Maintenance grant to the scheme for 2014/15. Contingency Proposed allocation of uncommitted Capital Maintenance grant to the scheme for 2014/15. Toilet Refurbishment Proposed allocation of uncommitted Capital Maintenance grant to the scheme for 2014/15. Fire Prevention Proposed allocation of uncommitted Capital Maintenance grant to the scheme for 2014/15. Demountables Proposed allocation of uncommitted Capital Maintenance grant to the scheme for 2014/15. Existing Existing Existing Existing Existing Existing Existing Existing Page 45 APP P1.3 SCH Appendices Page 47 Report Pages Page 13 of 24

54 This report is PUBLIC [NOT PROTECTIVELY MARKED] Analysis of projected change in expenditure Appendix A Education & Enterprise Canalside Quarter Net increase in budget. Due to additional developers contributions of 200k allocation enabled to release 100k of borrowing. New / Existing project Approved budget 000 Proposed budget 000 Forecast change in expenditure 000 Internal resources 000 External resources 000 Existing 900 1, (100) 200 Local Sustainable Transport Fund Increase of Section 31 IT Grant Existing City Centre Transport & Movement Enhancements Proposed virement of 35k from Reallocation Existing 1,396 1, of Resources for Regeneration Priorities and new High Street Innovation Fund grant allocated to fund the expenditure. Integrated Transport Centro Quick Wins grant Existing 4,885 5, Reallocation of resources for Regeneration priorities Proposed transfer of resources to support schemes such as West Side, Civic Halls Improvement Plan and City Centre Transport & Movement Enhancements. Existing 6,556 1,366 (5,190) (5,190) - Wolverhampton City Centre Interchange Change reflects the revised funding available for the project Capital maintenance Proposed allocation of uncommitted Capital Maintenance grant to support various maintenance schemes. Southside On 23rd July 2014 Cabinet approved the release of unallocated funds from the Southside budget to the Reallocation of Resources for Regeneration Priorities budget. Corporate Asset Management Due to a restructure the scheme has been reallocated to the Delivery directorate with no impact to the overall capital budget. Existing 1,309 1,283 (26) - (26) Existing 11,484 8,512 (2,972) - (2,972) Existing 4,263 3,868 (395) (395) - Restructure 2,823 - (2,823) (2,823) - Subtotal 66,110 85,590 19,480 12,234 7,246 TOTAL 68,298 93,167 24,869 17,498 7,371 Page 46 APP P1.3 SCH Appendices Page 48 Report Pages Page 14 of 24

55 This report is PUBLIC [NOT PROTECTIVELY MARKED] Virements Virements requiring approval Education and Enterprise Virement required 000 Capital Maintenance (2,538) Planned maintenance 164 Boiler/Pipework Replacments 640 Roof/Window/Lighting Replacements 500 St Peter's/St Edmund's Access Road 50 Contingency 250 Toilet Reburshment 120 Fire Prevention 94 Demountables 720 Capital Maintenance (134) Expansion of Primary School Places 134 Comments Appendix B Proposed transfer of 2,538,000 between schemes within the Capital Maintenance programme. Proposed an additional transfer of identified surplus Capital Maintenanace Grant. Canalside Quarter (100) Reallocation of resources for Regeneration priorities 100 Reallocation of resources for Regeneration priorities (35) City Centre Transport & Movement Enhancements 35 Residue on Capital Investment in Community Capacity Grant Upgrading of accessible facilities at Action for Independence - Albert Road (70) 70 Proposed transfer of 70,000 to fund new capital scheme. Local Safety Schemes (50) Proposed reallocation of 50,000 to Walking, Cycling, Safer Routes to School and minor 50 accommodate expenditure plans on existing highway improvements schemes Total - Virements to note Education and Enterprise Virement required 000 Comments Capital Maintenance (300) Council's approval on 17th September 2014 Expansion of Primary School Places 300 Council's approval on 17th September 2014 Reallocation of resources for Regeneration priorities (4,200) Cabinet approval on 1st October 2014 Black Country Growth Deal - Cultural Programme 4,200 Cabinet approval on 1st October 2014 Reallocation of resources for Regeneration priorities (1,450) Cabinet approval on 26th March 2014 West Side 1,450 Cabinet approval on 26th March 2014 Southside (395) Cabinet approval on 23rd July 2014 Reallocation of resources for Regeneration priorities 395 Cabinet approval on 23rd July 2014 Total - Page 47 APP P1.3 SCH Appendices Page 49 Report Pages Page 15 of 24

56 This report is PUBLIC [NOT PROTECTIVELY MARKED] Community Appendix C1 Urban Parks Refurbishment 2014/ / / / /19 Total Main programme: East Park Spring Road Ind Estate (Taylor Rd) Grapes Pool / Moseley Park Hay Canal Basin Broad Street Cricket Provision (externally funded) Heath Town Park Bowling provision (externally funded) West Park Play All Saints Park Total Urban Parks Refurbishment 1, ,203 Sports Investment Strategy 2014/ / / / /19 Total Main programme: Barnhurst Lane pitches 1, ,818 Synthetic Pitch at Our Lady and St Chads School Aldersley Synthetic Pitch Payment of grant Projects in Development Total Sports Investment Strategy 2,537 1, ,805 Page 48 APP P1.3 SCH Appendices Page 50 Report Pages Page 16 of 24

57 This report is PUBLIC [NOT PROTECTIVELY MARKED] Delivery Appendix C2 ICT capital programme 2014/ / / / /19 Total Main programme: Future Developments 603 1,500 2, ,103 Emergency Projects Security Enhancement [1001] Enterprise Anti Virus Network Access Control Network Intruder Detection Refresh [1002] Microsoft Enterprise Agreement ,200 Storage Refresh [1003] Replace NEO4000 tape library Upgrades [1004] Replace / Upgrade Firewalls labelling for GCSx Web Filtering and Filtering Qlikview Enterprise SFTP Solution Corporate Data Network - contract renewal Infrastructure Upgrades [1005] IP Telephony Windows 7 Migration Replace smaller mainframe applications Network Hardware Refresh SSL / VPN Remote Access replacement / Replace public network infrastructure Expand production VM environment and DASS to SIP trunking SX2000 decommissioning SCCM SCOM Thin client solution ,120 Data Centres [1006] Cold aisle containment Uninterruptable Power Supply (UPS) Environmental monitoring Additional Data Cabinets Air conditioning Mainframe decommission and deep clean Main programme total 2,598 2,469 2, ,504 Desktop Refresh 1, ,733 Disaster Recovery Total ICT capital programme 4,568 2,694 2, ,924 Page 49 APP P1.3 SCH Appendices Page 51 Report Pages Page 17 of 24

58 This report is PUBLIC [NOT PROTECTIVELY MARKED] Delivery Appendix C3 Leisure Centre 2014/ / / / /19 Total Bilston Leisure Centre Central Baths Aldersley Leisure Village Bert Williams Centre Leisure Centre Equipment Leisure Centre Enhancement Programme Total Leisure Centre programme Disposals Programme 2014/ / / / /19 Total Outline Planning Consents Pennfields - Demolition Danesmore - Relocation of licencees Wednesfield High - Demolition Reprovision of playing field provision Future years demolitions Total Disposals Programme 435 1, ,103 Page 50 APP P1.3 SCH Appendices Page 52 Report Pages Page 18 of 24

59 This report is PUBLIC [NOT PROTECTIVELY MARKED] Education and Enterprise Appendix C4 BSF programme 2014/ / / / /19 Total Sample: The Kings/Tettenhall Wood Phase 1: Bilston Academy (Mineshaft Works) Coppice Performing Arts SWBA Wednesfield High Phase 2: St Edmunds / Compton Park Site Moreton Community / School Our Lady & St Chad Catholic Colton Hills Community Schools Phase 3: Midpoint Centre North East Academy 2, ,454 Smestow Westcroft Aldersley 1, ,322 Moseley Park 2, ,456 New Park Special St Peter Church of England School Wolverhampton Girls High Councils contribution to LEP/PFI Schem Deansfield Compensation Heath Park Compensation VAT Adjustments: St Edmunds St Peters Our Lady & St Chad Catholic VAT refund from HMRC (3,041) (3,041) BSF - ICTS Infrastructure Schemes: Contractual Costs Highfields Penn Fields Coppice Performing Arts SWBA Wednesfield High St Edmunds / Compton Park Site Moreton Community School Our Lady & St Chads Colton Hills North East Academy 1, ,130 Smestow 1, ,055 Westcroft Moseley Park 1, ,055 St Peters Cof E School Wolverhampton High School Green Park Midpoint / Orchard Centre Aldersley Tettenhall Wood Deansfield Heath Park ,216 Abnormals / SLG / ELS Total BSF capital programme 15,297 1, ,032 Page 51 APP P1.3 SCH Appendices Page 53 Report Pages Page 19 of 24

60 This report is PUBLIC [NOT PROTECTIVELY MARKED] Education and Enterprise Appendix C5 Capital Maintenance 2014/ / / / /19 Total Boiler upgrades/replacement pipework/heaters: St Alban's Church of England Primary - replacement Castlecroft Primary - boiler replacement D'Eyncourt Primary - boiler replacement Long Knowle Primary - boiler replacement Springdale Infant and Junior - replacement pipework Oxley Primary - replacement pipework Westacre Infant - replacement pipework St Thomas Church of England Primary - replacement pip Roof replacements and ceilings: Claregate Primary - first floor ceilings Dovecotes Primary - replacement roof covering Grove Primary - replacement roof covering to hall St Martin's Church of England Primary - replacement roof covering to hall, clasrooms Whitgreave Infant - replacement roof covering Whitgreave Junior - replacement roof covering Woodthorne Primary - replacement roof covering Junior block Window upgrade: Bushbury Nursery - replacement classroom windows Hill Avenue Primary - replacement classroom windows Woodfield Infant - replacement classroom windows Woodfield Junior - replacement classroom windows Toilet/cloakroom upgrade: Elston Hall Primary - toilet refurbishment Loxdale Primary - toilet refurbishment Merridale Primary - cloakroom floors Structural/demolition/external works/security St Andrew's Church of England Primary - demolition of horsa building, playground replacement Bantock Primary - reform playground Field View Primary - provision of playground Goldthorn Park Primary - replacement floor screeds Lanesfield Primary - demolition of chimney New Park School - boundary fence New Park School - internal doors/access system/lift Contribution to New Build schemes: Edward the Elder Primary Wood End Primary Asbestos removal: Dovecotes Primary Rewiring and electrical upgrades: Christ Church Church of England Primary Claregate Primary Dovecotes Primary Long Knowle Primary Palmers Cross Primary St Andrew's Church of England Primary Stow Heath Primary Westacre Infant Woodthorne Primary Contingency for emergency works Uncommitted Balance of Capital Maintenance (schemes to be confirmed) Total Capital Maintenance capital programme 2, ,739 Page 52 APP P1.3 SCH Appendices Page 54 Report Pages Page 20 of 24

61 This report is PUBLIC [NOT PROTECTIVELY MARKED] Education and Enterprise Appendix C6 Expansion of Primary School Places 2014/ / / / /19 Total Phase 3 Bilston Primary School Phase , ,134 Bushbury Hill Eastfield Primary Phase ,047 Loxdale Primary ,215 Manor Primary 227 1,650 1, ,664 St Martin's Primary ,841 Stowlawn Primary Westacre Infant School West Park Primary Schemes to be identified Phase ,401 Contingency ,000 Total Expansion of Primary School Places 1,200 8,120 4, ,801 Page 53 APP P1.3 SCH Appendices Page 55 Report Pages Page 21 of 24

62 Risk Number Probability of Risk (P) Score 1-5 Impact of Risk (I) Score 1-5 Score (PxI) Red (R) Amber (A) Green (G) This report is PUBLIC [NOT PROTECTIVELY MARKED] Key Budget Risks Appendix D Category Risk- cause/event Impact of Risk Risk Control Measures Owner Review Period 1 Financial and Budget Management Ineffective budget management. Overspend against budget requiring either savings on other projects or additional prudential borrowing having an adverse impact on the Revenue Budget A Monthly monitoring at Service Level and to capital programme working group. Quarterly monitoring to Cabinet Members. Capital Programme report. Assistant Director Finance Quarterly Page 54 2 Financial and Budget Management 3 Financial and Budget Management Loss of ICT facilities e.g. due to failure of systems, loss of key personnel and/or disaster recovery arrangements. Inability to recover all VAT associated with capital expenditure. Lack of robust financial information on which to set and monitor budgets, leading to increased projected expenditure requiring other project savings to be identified or the need for additional prudential borrowing having an adverse impact on the Revenue Budget. Overspend against budget requiring either savings on other projects or additional prudential borrowing having an adverse impact on the Revenue Budget A ICT disaster recovery project and arrangements. Independent project management systems hold information in some instances A Close scrutiny of new capital schemes to establish potential VAT implications in order that they can be effectively managed Assistant Director Finance Assistant Director Finance Quarterly Monthly 4 Income and Funding 5 Income and Funding 6 Income and Funding Inability to deliver disposal programme due to: affordability of Corporate Schemes preventing release of sites; local community and member opposition to site disposals. Decline in market for land and property resulting in failure to dispose of land or reduced level of receipt. Reduction in level of Government funding after announcements made and programme committed. Loss of funding requiring projects to be delayed / stopped, or additional prudential borrowing having an adverse impact on the Revenue Budget. Unable to meet financial commitments e.g. repayment of Regional Infrastructure Funding requiring additional prudential borrowing having an adverse impact on the Revenue Budget. Reduced level of receipts requiring either a reduction in other areas of the Capital Programme or additional prudential borrowing having an adverse impact on the Revenue Budget. Legal / political commitment to projects requiring either a reduction in other areas of the Capital Programme or additional prudential borrowing having an adverse impact on the Revenue Budget A Robust Project Management Systems. Members Property Group Reporting to Capital Programme Working Group A Pro-active management of disposals to maximise receipts, which could include conscious decision to defer sales etc A Close monitoring of central government policy decisions. Building in contingency plans within the capital programme. Assistant Directors Assistant Director Regeneration Assistant Director Finance Monthly Monthly Monthly APP P1.3 SCH Appendices Page 56 Report Pages Page 22 of 24

63 Risk Number Probability of Risk (P) Score 1-5 Impact of Risk (I) Score 1-5 Score (PxI) Red (R) Amber (A) Green (G) This report is PUBLIC [NOT PROTECTIVELY MARKED] Appendix D Category Risk- cause/event Impact of Risk Risk Control Measures Owner Review Period Page 55 7 Income and Funding 8 Income and Funding 9 Income and Funding Inability to deliver outcomes / outputs in accordance with grant / S106 conditions. Grant drawn down against ineligible project expenditure. Availability of borrowing e.g. Central Government capping. Clawback of grant by funding organisations requiring either other project savings or additional prudential borrowing having an adverse impact on the Revenue Budget. Clawback of grant by funding organisations requiring either other project savings or additional prudential borrowing having an adverse impact on the Revenue Budget. Lack of funding requiring projects to be delayed or stopped A Robust project management to monitor outputs / outcomes. Reality check of business cases to support bids A Careful, detailed monitoring of project expenditure to ensure robust grant claims R Close monitoring of central government policy decisions. Building in contingency plans within the Capital Programme. Assistant Director Finance Assistant Director Finance Assistant Director Finance Monthly Monthly Monthly 10 Income and Funding Affordability of borrowing. 11 Third Parties Contractors ceasing to trade. Lack of funding requiring projects to be delayed or stopped. Incomplete projects with a need to re-tender for another contractor leading to additional costs requiring either other project savings or additional prudential borrowing having an adverse impact on Revenue Budget A Building in contingency plans within the Capital Programme G Departments using external service suppliers work closely with them and are kept abreast of their service and business situation. At worst this gives the council notice of emerging problems Due diligence. Assistant Director Finance Assistant Directors Monthly Monthly 12 Third Parties Delegation of programmes to partners e.g. Wolverhampton Homes. Ineffective budget management A Regular monitoring meetings and clear stipulation regarding information requirements. Assistant Directors Monthly APP P1.3 SCH Appendices Page 57 Report Pages Page 23 of 24

64 Risk Number Probability of Risk (P) Score 1-5 Impact of Risk (I) Score 1-5 Score (PxI) Red (R) Amber (A) Green (G) This report is PUBLIC [NOT PROTECTIVELY MARKED] Appendix D Category Risk- cause/event Impact of Risk Risk Control Measures Owner Review Period Page Third Parties Contract delays. Increased project costs requiring other project savings or additional prudential borrowing having an adverse effect on the Revenue Budget. 14 Third Parties Lack of contractors bidding for work. 15 Government Policy Change in government policy requiring capital investment. Lack of competition, resulting in increased project costs and reduced VFM. Lack of funding requiring other projects to be delayed or stopped or additional prudential borrowing having an adverse impact on the Revenue Budget A Robust project management G Departments using external service suppliers work closely with them and are kept abreast of their service and business situation. This gives the City Council notice of emerging problems A Close monitoring of central government policy decisions. Building in contingency plans within the Capital Programme. Assistant Directors Assistant Directors Assistant Directors Monthly Monthly Monthly 16 Service Demands 17 Service Demands Change in configuration of services requiring capital investment. Demand for service increases due to demographic changes requiring capital investment. Lack of funding requiring other projects to be delayed or stopped or additional prudential borrowing having an adverse impact on the Revenue Budget. Lack of funding requiring other projects to be delayed or stopped or additional prudential borrowing having an adverse impact on the Revenue Budget A Building in contingency plans within the Capital Programme A Close monitoring of service demands to enable the forecasting of pressures. Building in contingency plans within the Capital Programme. Assistant Directors Assistant Directors Monthly Monthly APP P1.3 SCH Appendices Page 58 Report Pages Page 24 of 24

65 [NOT PROTECTIVELY MARKED] Cabinet Minutes - 11 March 2015 Attendance Members of the Cabinet Cllr Roger Lawrence (Chair) Cllr Peter Bilson (Vice-Chair) Cllr Steve Evans Cllr Val Gibson Cllr Andrew Johnson Cllr Elias Mattu Cllr Phil Page Cllr John Reynolds Cllr Paul Sweet Employees Dereck Francis Nick Edwards Adam Hadley Keith Ireland Keren Jones Kevin O'Keefe Linda Sanders Mark Taylor Democratic Support Officer Service Director - City Assets Group Manager Democracy Managing Director Service Director - City Economy Director of Governance Strategic Director - People Director of Finance Part 1 items open to the press and public Item No. Title 1 Apologies for absence Apologies for absence were submitted on behalf of Cllr Sandra Samuels. 2 Declaration of interests Cllrs Roger Lawrence and Phil Page declared a personal interest in Item 7 (City Council Statement of Pensions Policy - discretions), in so far as they are members of the West Midlands Local Government Pension Scheme. 3 Minutes of the previous meeting (25 February 2015) Resolved: That subject to the inclusion of Cllr Roger Lawrence in the list of councillors present, the minutes of the meeting held on 25 February 2015 be approved as a correct record and signed by the Chair. APP P1.3 SCH Appendices Page 59 Minutes Page 1 of 11

66 [NOT PROTECTIVELY MARKED] 4 Matters arising There were no matters arising from the minutes of the previous meeting. 5 Wolverhampton Homes Annual Delivery Plan 2015/16 Cllr Peter Bilson asked Cabinet to receive the Wolverhampton Homes Annual Delivery Plan 2015/16 and recommend it to Full Council for adoption. Resolved: That Full Council be recommended to approve the Wolverhampton Homes Annual Delivery Plan 2015/16. 6 In-House Services - Adult Social Care Cllr Steve Evans reported on the salient points of the proposals for the next phase of the reconfiguration of in-house provided adult services with regard to: Learning Disability - Duke Street residential bungalows Learning Disability - Community Outreach and Enablement Services Older People Residential and Domiciliary Reablement Older People - Assistive Technology (Telecare and Carelink) Older People Ekta The reduction in the Council s Government Grant that helped the Council provide services to residents and the duty placed on local authorities to promote independence under the Care Act 2014, meant that the way the Council delivered its in house adult services could not remain the same. In response to the challenge councillors and employees had been working hard to ensure the continued provision of quality and value for money services for the citizens of Wolverhampton. He also informed Cabinet that the Adults and Community Scrutiny Panel had carried our pre decision scrutiny on the proposals at its meeting on 10 March Overall, the Panel were supportive of the proposals and Cllr Evans summarised and acknowledged the comments the Panel had made. He concluded by stating that the proposals were not about cutting services, but were about the Council working hard to provide alternative excellent services. Resolved: 1. That the development of an options appraisal to determine the long term use of the Learning Disability Duke Street residential bungalows with a view to moving towards a supported housing model with personalised support be approved. 2. That the commissioning of an externalised Learning Disability - Outreach Service be approved. 3. That a joint social care and health review of Older People - short term reablement and rehabilitation resources with the creation of an integrated health and social care reablement strategy and new service model with a home based short term support focus be approved. APP P1.3 SCH Appendices Page 60 Minutes Page 2 of 11

67 [NOT PROTECTIVELY MARKED] 4. That the consultation process for the commissioning of an externalised specialist Older People - reablement home care service in partnership with health colleagues be approved. The scope of the service would be specified as part of the above review process. 5. That the development of proposals for an Older People s integrated telecare and care link offer that would be integral to a 'home first' integrated reablement approach and help to shift the balance of care to support at home be approved. 6. That a further engagement and consultation process with service users of the Ekta Day Centre and stakeholders based upon a personalised approach, including consideration of the future use of the building be approved. 7. That the outcome of the consultation process to date with regard to Learning Disability Services (Duke Street Residential Bungalows and Community Outreach and Enablement Services) be noted. 7 Wolverhampton City Council Statement of Pensions Policy - Discretions Cllr Paul Sweet presented a report seeking approval to a Council Statement of Policy about the exercise of discretionary functions under regulation 60 (1) of the Local Government Pension Scheme Regulations (LGPS) 2013 and Regulation 66 (1) of the LGPS (Administration) Regulations Resolved: That the Wolverhampton City Council Statement of Pensions Policy Discretions be approved and implemented from 1 April School Admission Arrangements 2016/17 Cllr Phil Page presented, for approval, schemes for co-ordinated school admission arrangements for secondary and primary schools and admission arrangements for community and voluntary controlled schools for 2016/17. Resolved: 1. That the co-ordinated admission schemes for secondary and primary school admissions at the normal year of entry for 2016/17 be approved and the Secretary of State be notified accordingly by 15 April That the proposed admission arrangements for community and voluntary controlled schools for 2016/17 be approved. 9 Scrutiny Review of Employability and Skills Cllr Phil Page thanked Cllr Ian Angus and his colleagues on the scrutiny review group and for bringing forward an excellent report into Employability and Skills. He commented that the report set out a way forward to ensure that local people have the skills to enable them to compete in a diverse jobs market. Cllr Ian Angus, Chair of the scrutiny review group was in attendance at the meeting for this item. He gave a brief introduction to the report containing the findings and recommendations from a scrutiny review into Employability and Skills. The headline findings from the review had been presented to the Wolverhampton Skills and APP P1.3 SCH Appendices Page 61 Minutes Page 3 of 11

68 [NOT PROTECTIVELY MARKED] Employment Commission and from their feedback they found the review group s findings helpful. He also reported that the challenge the city faced was high levels of unemployment alongside low skill levels in the population. The review group report contained strategic and practical recommendations in response to the challenge but there was no magic bullet. He was confident that the recommendations provided a robust platform to meet the employability and skills challenge the city faced. In concluding, Cllr Angus thanked the members of the review group and witnesses for their contributions and the employees who provided excellent supported during the review. Cllr Roger Lawrence also thanked Cllr Angus and the scrutiny review group for an excellent piece of work which would feed into the work of the Skills and Employment Commission who would shortly be issuing its Interim Report. Resolved: 1. That the report of the review group be received and the following recommendations be noted: R1 That the Council takes a stronger role as the champion and honest broker within and across partnership forums to ensure that employment and skills outcomes are effectively delivered. R2. That the Council utilises its role of champion and honest broker within partnership working to generate confidence and credibility in the capability of the City to deliver against the employability and skills agenda, linking strongly with the Council s Corporate Communications Team. R3. That the City develops a long term cross partnership strategy for employability and skills to achieve a step change in reducing the number of the working age population with no qualifications and not in employment. The strategy should: provide clarity of roles and responsibilities whilst also ensuring quality provision make provision for oversight and accountability, consideration should be given to establishing a bespoke forum to maintain oversight of this agenda take into account the extent of the issues facing the City and ensure interventions are scalable and closely aligned to the emerging work on the Combined Authority ensure consistency of approach for young people in the City R4. That schools be strongly encouraged to fully engage in the partnerships in the City that are dealing with employability and skills issues to meet the reasonable expectation that schools will support young people to develop soft skills, receive careers advice and gain work experience to get work ready. APP P1.3 SCH Appendices Page 62 Minutes Page 4 of 11

69 [NOT PROTECTIVELY MARKED] R5. That the Council has a key role as an influencer for example specific work needs to be undertaken with Department for Works and Pensions to consider more flexibility regarding Job Seeker Allowance and voluntary work experience arrangements. This influencing role needs to extend to issues of skills and employability that relate to the combined authority. R6. That Partnership working needs to ensure a far greater understanding of the support available across agencies in terms of the customer journey for our residents seeking work. R7. That the Council and its partners implement a series of initiatives, which include: a) A toolkit outlining the available support for aspirant individuals in the City to enable them to access employment and enterprise b) A mentoring programme for entrepreneurs c) Collaborating to deliver a joined up, high quality work experience programme d) A multi-agency volunteering strategy that includes employment pathways for volunteers e) A clear pathway of support for young people to get work ready, including consistency relating to work experience opportunities and the development of life skills. R8. That the City develops appropriate business support to enable the growth and development of small and mediums size enterprises (SMEs) and should offer targeted support to budding entrepreneurs and innovators. This should build on the work of the Black Country Growth Hub and the business led forums in the city. R9. That the Council works closely with businesses to ensure that they recognise the value, and return on investment, to their business from training their employees and supporting career progression. R10. That the Council develop and effectively utilise a robust intelligence base to better understand the trends in business growth and job opportunities, future skills needs, and resident profiles. This should include specific intelligence relating to age, geography and other equality characteristics R11. That the Council utilises its staffing teams to gather intelligence, broker partner relationships and work closely with businesses in the City. 2. That the executive response to the review recommendations be approved. 3. That the Cabinet response be referred to the Scrutiny Board for it to track and monitor the implementation of the agreed recommendations. APP P1.3 SCH Appendices Page 63 Minutes Page 5 of 11

70 [NOT PROTECTIVELY MARKED] 10 Adult Education Service Self-Assessment Report 2013/14 and Development Plan 2014/15 Cllr Phil Page presented the report that summarised the results of the Adult Education Service s recent self-assessment. It also set out the main areas for development, identified through the self-assessment process, in order to achieve continuous improvement. The Self-Assessment process had been conducted using Ofsted s (Office for Standards in Education, Children s Services and Skills) Common Inspection Framework. Overall the Adult Education Service had been judged as being outstanding. Cllr Phil Page paid tribute to the employees within the service. He also informed Cabinet of the receipt of a letter from Nick Boles, Minister for Skills and Equalities congratulating the service on its achievements. Resolved: 1. That the Adult Education Service Development Plan 2014/15 be approved. 2. That the Adult Education Service Self-Assessment Report 2013/14 be noted. 11 Heath Town Regeneration Cllr Peter Bilson presented an update report on the activity undertaken to develop a programme for the regeneration of the Heath Town estate since the last report on 11 March Approval was requested to specific proposals which would inform the development of the regeneration proposals. Resolved: 1. That proposals on the Heath Town Regeneration Project as listed below be approved: i. The revised phasing for the delivery of the project based on the revisions to the masterplan. ii. iii. Further revisions to the masterplan, subject to amendment of details considered in the report relating to the revised three broad phases of the programme and the current considerations including the inclusion of the additional General Fund sites at Alma Street, Wyrley Street and Qualcast Road. Delegated authority to the Cabinet Member for Economic Regeneration and Prosperity in consultation with the Strategic Director for Place to determine if the Grosvenor Street site should be included within the Heath Town regeneration scheme having considered the outcome of the discussion at Petitions Committee on 13 March iv. The utilisation of the revised masterplan to develop a procurement prospectus and to procure a developer through the Homes and Communities Agency Delivery Partner Panel 2. Appointment of the development partner would be subject to a further report to Cabinet to confirm the appointment. APP P1.3 SCH Appendices Page 64 Minutes Page 6 of 11

71 [NOT PROTECTIVELY MARKED] v. The progression of the actions set out in the report relating to the revised three broad phases of the programme and the current considerations subject to such further reports to Cabinet or Cabinet (Resources) Panel as required following the completion of feasibility and related negotiations with the parties concerned. vi. To re-house affected tenants from Chervil Rise, the block proposed for demolition, and award Band 1 priority together with the Home Loss and disturbance payments. vii. To ring-fence void properties which have received Decent Homes works on the Heath Town estate for transfers as an incentive for tenants to move. 2. That further reports be submitted to consider the enabling works required, including procurement of re-routed District Heating and utilities infrastructure, demolition works, and associated mechanical and electrical works. This work relates to the proposed demolition of identified Chervil Rise and Hobgate Road buildings and would not extend to the rest of the estate. 3. That progress made with the Heath Town Regeneration Project be noted. 4. That the on-going discussions with Black Country Make Community Investment Company around providing access to a small site on a leasehold basis for the development of community build homes on the Heath Town estate be noted. 5. That the requirement to fund and procure enabling works including utility separations in advance of the planned demolition be noted. 6. That the revised project plan timescale and the communications strategy be noted. 7. That Wolverhampton Homes planned development of wider investment plans for the retained housing stock within the Heath Town estate be noted. 12 Improving the City Housing Offer Cllr Peter Bilson presented a report which summarised the challenges facing the Council in improving delivery of a fit for purpose city housing offer across all tenures and, building on the progress to date, set out a framework for progressing this across the city. He reported that the Council wished to improve on the housing offer in general and increase the amount of housing development taking place in the city. The proposals in the report looked at this and put forward a framework for delivery. Cllr Roger Lawrence drew Cabinet s attention to the appendices containing a list of housing developments in the city and reported that Wolverhampton was well placed in terms of the housing development opportunities to supply housing for the next ten years. However, the Black Country Core Strategy indicated that Wolverhampton should be building to a much higher rate. The challenge was how the Council APP P1.3 SCH Appendices Page 65 Minutes Page 7 of 11

72 [NOT PROTECTIVELY MARKED] together with its housing partners could work together to increase the housing provision. Resolved: 1. That the proposed framework for the programme of activity to improve the city housing offer be approved. 2. That the revised governance arrangements to manage the delivery of activity to improve the city housing offer be approved. 3. That the proposals regarding the future management of the Housing Revenue Account (HRA) and review of the HRA Business Plan and Asset Management Plan be approved. 4. That it be agreed to pursue the investigation of other public sector housing delivery models. 5. That the intention to review existing employee delivery arrangements and go live with new structure from September 2015 be approved. 6. That the report be referred to the Vibrant, Safe and Sustainable Communities Scrutiny Panel on 19 March Transportation Capital Programme /16 and Future Years Cllr Peter Bilson sought approval to a programme of capital funded schemes to develop and maintain the transportation network for the financial years 2015/16, 2016/17 and 2017/18, subject to available resources and annual review. The programme represented an investment in a significant level of work over the years of 15 million. Resolved: 1. That the list of schemes for development and implementation for each part of the Transportation Capital Programme 205/16 and future years, be approved. 2. That the Transportation Manager be authorised to proceed with development work for each scheme on the list including surveying, site investigation, options appraisal, feasibility analysis, traffic modelling, detailed design, statutory advertising and public consultation, as appropriate. 3. That the 67 schemes marked A in the Approval column in Transportation Capital Programme 205/16 be approved for construction using the Council s own resources and/or the term framework contractors available to the Council, the selection of contractor to be based upon the criteria set out in the report. 4. That the Cabinet Member for Economic Regeneration and Prosperity in consultation with the Service Director, City Assets be authorised to approve construction of the 84 schemes on the list marked D in the Approval column in Transportation Capital Programme 2015/16, subject to the satisfactory outcome of public consultation, availability of funding and any other relevant considerations. APP P1.3 SCH Appendices Page 66 Minutes Page 8 of 11

73 [NOT PROTECTIVELY MARKED] 5. That the actions of the Strategic Director, Place and the Director of Finance in submitting bids for additional funding under the Local Highways Maintenance Challenge Fund be approved as well as the inclusion of these schemes in the capital programme subject to the successful outcome of the bids. 6. That Wolverhampton City Council acts as the accountable body for the Accessing Growth Fund. 7. That the Director of Governance and Solicitor to the Council be authorised to enter into legal agreements with Walsall, Sandwell and Dudley Councils in respect of the funding and delivery of schemes under the Accessing Growth Fund, and agree to the inclusion of the relevant schemes in the capital programme. 8. That the inclusion of the Managing Short Trips programme in the capital programme be approved and the Cabinet Member for Economic Regeneration and Prosperity in consultation with the Service Director, City Assets be authorised to agree the individual schemes to be included in the programme. 9. That approval from Full Council be sought to make grant payments to Walsall Metropolitan Borough Council (MBC), Sandwell MBC and the Canal and River Trust as follows: Accessing Growth -Walsall MBC - Bentley Lane -Sandwell MBC - North Smethwick Canalside Access Managing Short Trips Canals and River Trust -National Cycle Network 81 Route Enhancements 2015/ / / Total That the Director of Governance and Solicitor to the Council be authorised to serve all necessary notices in respect of the schemes listed in the Transportation Capital Programme 205/16 and, subject to there being no unresolved objections, make traffic regulation orders as required. 11.That the Council be authorised to enter into any agreements under Section 38 or section 278 of the Highways Act 1980 necessitated by the contents of the report. 12.That the expenditure and progress made in delivering the schemes in the Transportation Capital Programme during 2014/15 be noted. APP P1.3 SCH Appendices Page 67 Minutes Page 9 of 11

74 [NOT PROTECTIVELY MARKED] 13.That the Council s considerable success in bidding for additional funding and delivering new schemes through the Local Sustainable Travel Fund, the Pothole Fund, the Local Pinch Point Fund, the Accessing Growth Fund and the Managing Short Trips programme be noted. 14 Exclusion of press and public Resolved: That in accordance with Section 100A(4) of the Local Government Act 1972, the press and public be excluded from the meeting for the following item(s) of business as they involve the likely disclosure of exempt information falling within the paragraphs of Schedule 12A of the Act set out below: Item No. Title Applicable paragraph 15 Wolverhampton Interchange Progress Update and Delivery Strategy 3 16 Junction Two Programme 3 15 Wolverhampton Interchange Progress Update and Delivery Strategy Cllr Peter Bilson presented an update report on the Wolverhampton Interchange project and sought approval to specific proposals to further the delivery of the project. Resolved: 1. That the strategy to bring forward the delivery Wolverhampton Interchange Project and the influencing strategy to secure the wider project delivery be approved. 2. That it be agreed to Wolverhampton City Council (WCC) receiving grant funding of 4.5 million Local Growth Fund (LGF) monies and 9 million Local Transport Board (LTB) funding entering into a funding agreement with Walsall Council as accountable body for the Black Country Local Enterprise Partnership (LEP). 3. That it be agreed to include 17.5 million within the Council s capital programme for Interchange Phase Two funded as per the funding and expenditure profiler at table 1 in the report. 4. That the principle of WCC acting as accountable body for the Wolverhampton Interchange Project drawing down the external funding from LGF and LTB be approved and authority be delegated to the Cabinet Members for Economic Regeneration and Prosperity and Resources in consultation with the Strategic Director, Place and Director of Finance to enter into sub-agreements with Centro and Neptune. 5. That it be agreed in principle that WCC land at Interchange, as detailed on Appendix A to the report, can contribute to the project and authority be delegated to the Cabinet Members for Economic Regeneration and Prosperity and Resources in consultation with the Strategic Director, Place and Director of Finance for the execution of the appropriate land transactions. APP P1.3 SCH Appendices Page 68 Minutes Page 10 of 11

75 [NOT PROTECTIVELY MARKED] 6. That the principle of receiving Homes and Communities Agency investment into i10 be approved and authority be delegated to the Cabinet Members for Economic Regeneration and Prosperity and Resources in consultation with the Strategic Director, Place and Director of Finance to agree the principles of the investment and execute the necessary legal agreements. 7. That the continuing support of the project team in influencing partners, stakeholders, funders and decision makers to assist in the delivery of Wolverhampton Interchange be agreed. 8. That further progress reports be submitted to Cabinet as the delivery of this project progresses. 16 Junction Two Programme Cllr Peter Bilson presented the report that updated Cabinet on the current position of i54 as the physical works come to a close and the Junction Two Programme, a wider area which would include i54. Resolved: 1. That the future strategy for widening the i54 project to include the Western Extension and J2 East referred to as Junction 2 be approved. 2. That the next steps for progressing an extension to i54 be approved. 3. That the proposed arrangement for working in partnership with Staffordshire County Council and South Staffordshire Council be approved. 4. That authority be delegated to the Cabinet Member for Economic Regeneration and Prosperity in consultation with the Strategic Director- Place to agree the Heads of Terms for a revised joint venture arrangement for the partnership 5. That the progress made in delivering the i54 project be noted. 6. That the progress made with the western extension feasibility work be noted APP P1.3 SCH Appendices Page 69 Minutes Page 11 of 11

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