Agenda item

Capital Spend and Project Approvals

Minutes:

The Committee considered a report of the Director of Delivery on proposals for the progression of, and funding for, a number of West Yorkshire plus Transport Fund (WY+TF) and Growth Deal projects at Stages 1, 2 and 3 of WYCA’s Assurance Process.

 

Members considered the following schemes which were detailed in the submitted report:

 

A629 Phase 4 Halifax to Huddersfield Corridor Improvements

Decision Point 2 (Case Paper)

Access Innovation Programme

Decision Point 2 (Case Paper)

Strategic Business Growth Programme

Decision Point 2 (Case Paper)

Beech Hill, Halifax

Decision Point 2 (Case Paper)

Castleford Rail Station Gateway

Decision Point 3 (Outline Business Case)

Energy Accelerator Programme

Decision Point 4 (Full Business Case)

Leeds District Heat Network

Decision Point 5 (Full Business Case with Finalised Costs)

New Bolton Woods

Decision Point 5 (Full Business Case with Finalised Costs)

 

The report also provided further details and outlined recommendations for the following schemes which have had exception reports assessed in line with WYCA’s Assurance Process:

 

Leeds New Station Street

Activity 5 (Full Business Case   plus Finalised Costs) Exception

Huddersfield Incubation & Innovation Centre

Activity 6 (Delivery) Exception

Tackling Fuel Poverty

Activity 6 (Delivery) Exception

 

The Committee was provided with details of decisions made through delegation to WYCA’s Managing Director since the last meeting.  It was noted that the decisions were made following recommendations from WYCA’s Programme Appraisal Team for the following schemes:

 

·         Hebden Bridge Rail Park and Ride Decision Point 5 (Full Business Case with Finalised Costs)

·         LEP Loan – Fresh Pastures (Full Business Case with Finalised Costs)

·         Strategic Inward Investment Fund Decision Point 5 (Full Business Case with Finalised Costs)

·         Business Growth Programme Decision Point 5 (Full Business with Finalised Costs)

 

Summaries of the schemes’ Business Cases were attached as Appendices 1-12 of the submitted report.

 

It was noted that due to the nature of the funding stream, the Pothole Action Fund had been considered by WYCA and a funding allocation of £2.231m had been approved.

 

Resolved:

 

(i)         In respect of A629 Phase 4 Halifax to Huddersfield Corridor Improvements

            (Decision Point 2), the Investment Committee recommends to WYCA that:

 

·         The A629 phase 4 project proceeds through Decision Point 2 and work commences on Activity 3 (Outline Business Case).

·         An indicative approval to the total project value of £30.000m is given from the West Yorkshire plus Transport Fund with Full Approval to spend being granted once the scheme has progressed through the Assurance Process to Decision Point 5 (Full Business Case with Finalised Costs).

·         Development costs of £0.570m are approved in order to progress the scheme to Decision Point 3 (Outline Business Case), taking the total project approval to £0.645m.

·         WYCA enter into a Funding Agreement with Calderdale Council for expenditure of up to £0.570m from the West Yorkshire plus Transport Fund.

·         Future approvals are made in accordance with the Approval Pathway and Approval Route outlined in the submitted report including at Decision Points 4 and 5 through a delegation to WYCA’s Managing Director following a recommendation by WYCA’s Programme Appraisal Team.  This will be subject to the scheme remaining within the tolerances outlined in the submitted report.

 

(ii)        In respect of the Access Innovation Programme (Decision Point 2), the

            Investment Committee recommends to WYCA that:

 

·         The Access Innovation Programme proceeds through Decision Point 2 and work commences on Activity 5 (Full Business Case with Finalised Costs).

·         An indicative approval to WYCA’s contribution of £4.750m (which will be funded through £0.485m from the Local Growth Fund Access to Capital Grants programme fund and £4.265m from the ERDF fund) is given with Full Approval to spend being granted once the scheme has progressed through the Assurance Process to Decision Point 5 (Full Business Case with Finalised Costs).

·         Future approvals are made in accordance with the Approval Pathway and Approval Route outlined in the submitted report including at Decision Point 5 through a delegation to WYCA’s Managing Director following a recommendation by WYCA’s Programme Appraisal Team.  This will be subject to the scheme remaining within the tolerances outlined in the submitted report.

 

(iii)       In respect of the Strategic Business Growth Programme (Activity 2 Case

            Paper), the Investment Committee recommends to WYCA that:

 

·         The Strategic Business Growth Programme proceeds through Decision Point 2 and work commences on Activity 5 (Full Business Case with Finalised Costs).

·         An indicative approval to WYCA’s contribution of £3.146m (which will be funded through £2.156m from the ESIF Grant and £0.990m from the WYCA Capital Grants fund) is given with Full Approval to spend being granted once the scheme has progressed through the Assurance Process to Decision Point 5 (Full Business Case with Finalised Costs).

·         Future approvals are made in accordance with the Approval Pathway and Approval Route outlined in the submitted report including at Decision Point 5 through a delegation to WYCA’s Managing Director following a recommendation by WYCA’s Programme Appraisal Team.  This will be subject to the scheme remaining within the tolerances outlined in the submitted report.

 

(iv)       In respect of Beech Hill, Halifax (Activity 2 Case Paper), the Investment

            Committee recommends to WYCA that:

 

·         The Beech Hill project proceeds through Decision Point 2 and work commences on Activity 4 (Full Business Case).

·         An indicative approval to WYCA’s contribution of £1.000m (which will be funded through Growth Deal 3) is given with Full Approval to spend being granted once the scheme has progressed through the Assurance Process to Decision Point 5 (Full Business Case with Finalised Costs).

·         Future approvals are made in accordance with the Approval Pathway and Approval Route outlined in the submitted report including at Decision Points 4 and 5 through a delegation to WYCA’s Managing Director following a recommendation by WYCA’s Programme Appraisal Team.  This will be subject to the scheme remaining within the tolerances outlined in the submitted report.

 

(v)        That in respect of Castleford Rail Station Gateway (Activity 3 Outline

            Business Case), the Investment Committee recommends to WYCA that:

 

·         The Castleford Rail Station Gateway project proceeds through Decision Point 3 and work commences on Activity 4 (Full Business Case).

·         An indicative approval to the total project value of £4.511m is given from the West Yorkshire plus Transport Fund with Full Approval to spend being granted once the scheme has progressed through the Assurance Process to Decision Point 5 (Full Business Case with Finalised Costs).

·         Development costs of £0.317m are approved in order to progress the scheme to Decision Point 5 (Full Business Case with Finalised Costs), taking the total project approval to £0.338m.

·         WYCA enter into a Section 56 grant agreement with Northern Rail for expenditure of up to £0.200m from the West Yorkshire plus Transport Fund.

·         Future approvals are made in accordance with the Approval Pathway and Approval Route outlined in this report including at Decision Points 4 and 5 through a delegation to WYCA’s Managing Director following a recommendation by WYCA’s Programme Appraisal Team.  This will be subject to the scheme remaining within the tolerances outlined in the submitted report.

 

(vi)       That in respect of Energy Accelerator (Activity 4 Full Business Case), the

            Investment Committee recommends to WYCA, subject to a successful

            European Local Energy Assistance (ELENA) application, that:

 

·         The Energy Accelerator programme proceeds through Decision Point 4 and work commences on Activity 5 (Full Business Case with Finalised Costs).

·         Approval to spend the £0.640m Local Growth Fund allocation as match to support the development of the Accelerator is confirmed.

·         An indicative Approval to the £2.997m ELENA funding (the exact amount dependent on Euro exchange rate at the date of approval – application pending) is given with Full Approval to spend being granted once the scheme has progressed through the Assurance Process to Decision Point 5 (Full Business Case with Finalised Costs).  This will bring the total project value to approximately £3.817m (£0.820m Local Growth Fund, £2.997m ELENA).

·         Development costs of up to £0.180m are approved in order to pay the incurred development costs and to progress the scheme to Decision Point 5 (Full Business Case with Finalised Costs) from the Local Growth Fund, taking the total project approval to £0.820m.

·         Future approvals are made in accordance with the Approved Pathway and Approval Route outlined in the submitted report including at Decision Point 5 through a delegation to WYCA’s Managing Director following a recommendation by WYCA’s Programme Appraisal Team.  This will be subject to the scheme remaining within the tolerances outlined in the submitted report.

·         WYCA’s Managing Director use his existing delegated authority to approve projects within any future phases of the Energy Accelerator Programme, providing that the value of each scheme is less than £1m.

 

(vii)      In respect of Leeds District Heat Network – Phase 1 (Activity 5 Full Business

            Case with Finalised Costs), the Investment Committee recommends to WYCA

conditional approval  of the following recommendations, with final approval

of these recommendations being subject to WYCA’s Managing Director

approval of the detailed grant conditions on a clawback mechanism:

           

·         The Leeds District Heat Network project proceeds through Decision Point 5 and work commences on Activity 6 (Delivery).

·         Approval to WYCA’s contribution of £4.000m (which will be funded from the Local Growth Fund) is given.

·         WYCA enter into a Funding Agreement with Leeds City Council for expenditure of up to £4.000m from the Local Growth Fund.

·         The Funding Agreement makes provision for up to £4.000m to be clawed back if the Leeds District Heat Network makes an operating profit over the 25 year asset lifetime.

·         Future approvals are made in accordance with the Approval Pathway and Approval Route outlined in the submitted report through a delegation to WYCA’s Managing Director following a recommendation by WYCA’s Programme Appraisal Team.  This will be subject to the scheme remaining within the tolerances outlined in the submitted report.

 

(viii)     In respect of New Bolton Woods (Activity 5 Full Business Case with Finalised

Costs), the Investment Committee recommends to WYCA’s Managing Director that:

 

·         The New Bolton Woods Phase 3 project proceeds through Decision Point 5 and work commences on Activity 6 Delivery.

·         Approval to WYCA’s contribution of £3.600m (which will be funded from the Local Growth Fund) be given.

·         WYCA enter into a Funding Agreement with Bradford Metropolitan District Council for expenditure of up to £3.600m from the Local Growth Fund.

·         Future approvals are made in accordance with the Approval Pathway and Approval Route outlined in the submitted report following a recommendation by WYCA’s Programme Appraisal Team.  This  will be subject to the scheme remaining within the tolerances outlined in the submitted report.

 

(ix)       In respect of Leeds New Station Street Activity 5 (Full Business Case with

Finalised Costs) Exception, the Investment Committee recommends to WYCA that:

 

·         The exception to extend the project timescale to completion on site by December 2018 be approved.

·         Future approvals are made in accordance with the Approval Pathway and Approval Route outlined in the submitted report including at Decision Point 5 through the delegation to WYCA’s Managing Director following a recommendation by WYCA’s Programme Appraisal Team.  This will be subject to the scheme remaining within the tolerances outlined in the submitted report.

 

(x)        In respect of Huddersfield Incubation & Innovation Centre Activity 6

            (Delivery) Exception, the Investment Committee recommends to WYCA’s

            Managing Director that:

 

·         The exceptions outlined in the submitted report be approved.

·         It is reconfirmed that the project will receive the WYCA grant fund allocation of £2.922m to be funded from the Local Growth Fund.

·         The Funding Agreement between WYCA and Huddersfield University is revisited in light of the above exception and any changes to the Funding Agreement and Overage Agreement be approved through the delegation to WYCA’s Managing Director.

·         Future approvals are made in accordance with the Approval Pathway and Approval Route outlined in the submitted report following a recommendation by WYCA’s Programme Appraisal Team.  This will be subject to the scheme remaining within the tolerances outlined in the submitted report.

 

(xi)       In respect of Tackling Fuel Poverty Activity 6 (Delivery) Exception, the

Investment Committee recommends to WYCA’s Managing Director that:

 

·         The exceptions outlined in the submitted report be approved.

·         Future approvals are made in accordance with the Approval Pathway and Approval Route outlined in the submitted report following a recommendation by WYCA’s Programme Appraisal Team.  This will be subject to the scheme remaining within the tolerances outlined in the submitted report.

Supporting documents: