Agenda item

Capital Spending and Project Approvals

Minutes:

The Committee considered a report on proposals for the progression of, and funding for, a number of West Yorkshire Combined Authority supported projects, including West Yorkshire plus Transport Fund and Growth Deal at stages 1, 2 and 3 of the Combined Authority’s assurance process.

 

Members discussed the proposals for the progress of the following five schemes which were detailed in the submitted report:

 

·         Land Release Fund

·         Leeds Integrated Station Masterplan

·         Northgate House, Halifax

·         Real Time Bus Information

·         Ultra Low Emissions Vehicles (ULEV) taxi scheme

 

The real time bus information project was welcomed and the Committee would be keen to see a similar scheme rolled out across West Yorkshire if funding could be secured.

 

In respect of Northgate House, the risk identified around the refurbishment scheme and the mitigations that would need to be addressed as the business case is developed was acknowledged.

 

The report also provided further details and outlined proposed recommendations for the following schemes which have had change request reports assessed in line with the Combined Authority’s assurance process:

 

·         Leeds Station Gateway – New Station Street improvements

·         Harrogate Road New Line – junction improvement Bradford/Leeds corridor

·         A65-A658 airport link road project

 

It was reported that the change request for the A65-A658 airport link road project was for additional development costs to progress the scheme to decision point 3 (outline business case) and that this would not increase the total indicative scheme cost at this stage and will result in funds being drawn down early to complete works on the outline business case. Members were advised that discussions would be entered into with the airport to seek a contribution for the scheme.

 

The Committee was also provided with details of a decision made through delegation to the Combined Authority’s Managing Director since the last meeting in respect of:

 

·         Apprenticeship Grants for Employers (AGE) Extension, West Yorkshire

 

It was noted that the Combined Authority’s Corporate Technology Strategy had been approved by the Combined Authority on 10 May 2018 as part of the corporate priorities report.

 

Summaries of the schemes’ business cases were attached as Appendices 2-7 of the submitted report.

 

Resolved:

 

(i)         In respect of Land Release Fund (LRF), the Investment Committee recommends to the Combined Authority that:

 

            (a)       The LRF project proceeds through decision point 2 and work

commences on activity 6 – delivery.

(b)        An approval to the total project value of £662,125 is given from the One Public Estate (OPE) Capital Grant fund with full approval to spend granted.

(c)        Delivery costs of £662,000 are approved in order to progress the scheme to activity 6 – delivery, taking the total project approval to £662,125.

(d)        The Combined Authority enter into a funding agreement with Craven, Wakefield, Leeds and Selby Councils for expenditure of up to £493,750, £18,750, £130,875 and £18,750 respectively from the OPE Capital Grant Fund.

(ii)       In respect of the Leeds Integrated Station Masterplan (LISM) the Investment Committee recommends to the Combined Authority that:

(a)        The Leeds Integrated Station Masterplan project proceeds through decision point 2 and work commences on activity 3 (outline business case).

(b)        An indicative approval to the total project value of £6.32 million of which £5 million will be funded by the Combined Authority (to be funded from the Leeds Public Transport Investment Programme (LPTIP), £320,000 from the LCR HS2 Growth Strategy and West Yorkshire Plus Transport Fund and £1 million match funding from Network Rail, 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).

(c)        Development costs of up to £1 million are approved in order to progress the scheme to decision point 3 (outline business case).

(d)        Future approvals are made in accordance with the approval pathway and approval route outlined in the submitted report including at decision point 3 and 5 through a delegation to the Combined Authority’s Managing Director following a recommendation by the Combined Authority’s Programme Appraisal Team. This will be subject to the scheme remaining within the tolerances outlined in the submitted report.

(iii)      In respect of Northgate House, the Investment Committee recommends to the Combined Authority that:

(a)       The Northgate House project proceeds through decision point 2 and work commences on activity 4 (full business case). 

(b)       An indicative approval from the Combined Authority of £3 million from the Local Growth Fund (previously a £1.3 million loan) 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). The total project value is £11.87 million.

            (Note - £300,000 of this £3 million has already been paid to  Calderdale Council as a loan).

(c)       Approval to amend the terms of the funding agreement from an interest free loan to grant funding.

(d)       Future approvals are made in accordance with the approval pathway and approval route outlined in the submitted report which includes a Combined Authority approval at decision point 4 and at decision point 5 through a delegation to Combined Authority’s Managing Director following a recommendation by Combined Authority's Programme Appraisal Team. This will be subject to the scheme remaining within the tolerances outlined in the submitted report.

(iv)      In respect of Real Time Bus Information, the Investment Committee recommends to the Combined Authority that:

(a)        The Real Time project proceeds through decision point 3 (outline business case) and work start on activity 5 (full business case with finalised costs).

(b)        Approval to the total indicative project value of £7.2 million from the LPTIP 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).           

(c)        Approval for development costs of £1.74 million for the purchase and installation of the first 490 units and bus shelters with existing power supply along the core network (£1.64 million) and for funding a project manager (£100,000).

(d)        Future approvals are made in accordance with the approval pathway and approval route outlined in the submitted report including at decision point 5 (full business case with finalised costs) through a delegation to the Combined Authority’s Managing Director following a recommendation by the Combined Authority’s Programme Appraisal Team. This will be subject to the scheme remaining within the tolerances outlined in the submitted report.

(v)       In respect of the Ultra Low Emissions Vehicles (ULEV) taxi scheme, the Investment Committee recommends to the Combined Authority that:

(a)        The ULEV Taxi Scheme project proceeds through decision point 4 and work commences on activity 5 (full business case with finalised costs).

(b)        An indicative approval to the Combined Authority’s contribution of £3.18 million which will be funded through £1.2 million from the LTP fund and £1.98 million from the OLEV grant 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).

(c)        Approval to the additional £200,000 development costs to allow advance site preparation tasks to commence, taking the total development costs for the project to £380,000.

(d)        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 the Combined Authority’s Managing Director following a recommendation by the Combined Authority’s Programme Appraisal Team. This will be subject to the scheme remaining within the tolerances outlined in the submitted report.

(vi)      In respect of the Leeds Station Gateway - New Station Street improvements, the Investment Committee recommends to the Combined Authority’s Managing Director that:

(a)        The change request to Leeds Station Gateway – New Station Street Improvements, to extend the completion date from December 2018 to June 2019 is approved.

(b)        The scheme progresses through to full business case with costs and that subject to the scheme remaining within the tolerances for cost and time, approval be given by the Managing Director at decision point 5.

(c)        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 the Combined Authority’s Managing Director following a recommendation by the Combined Authority’s Programme Appraisal Team. This will be subject to the scheme remaining within the tolerances outlined in the submitted report.

(vii)     In respect of Harrogate Road - New Line – junction improvement, the Investment Committee recommends to the Combined Authority that:

(a)        The change request to the Harrogate Road New Line Junction Improvement project to increase the indicative approval to the Combined Authority’s contribution to £6.765 million, which will be funded from the West Yorkshire plus Transport Fund and 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). The total project value is £8.691 million (£6.765 million plus £1.926 million Bradford Council section 106 monies) is approved.

(b)        The change request to the Harrogate Road New Line – Junction Improvement project to additional development costs of £585,000 in order to progress the scheme to decision point 5 (full business case with finalised costs) is approved.

(c)        The Combined Authority enters into an addendum of £585,000 to the existing funding agreement with the City of Bradford for expenditure of up to £1.885 million from the West Yorkshire plus Transport Fund.

(d)        Future approvals are made in accordance with the approval pathway and approval route outlined in the submitted report including at decision point 5 (full business case with finalised costs) through a delegation to the Combined Authority’s Managing Director following a recommendation by the Combined Authority’s Programme Appraisal Team. This will be subject to the scheme remaining within the tolerances outlined in the submitted report.

(viii)    In respect of the A65-A658 airport link road project, the Investment Committee recommends to the Combined Authority that:

(a)        The Change Request to A65-A658 airport link road project for additional development costs of £975,000 are approved in order to progress the scheme to decision point 3 (outline business case), taking the total project approval to £1.785 million. This will be funded from the West Yorkshire plus Transport Fund.

(b)        The Combined Authority enter into an addendum for £975,000 to the existing funding agreement with Leeds City Council for total expenditure of up to £1.785 million.

(c)        Future approvals are made in accordance with the approval pathway and approval route outlined in the submitted report. This will be subject to the scheme remaining within the tolerances outlined in the submitted report.

Supporting documents: