Agenda item

(appendix exempt under para 3 - Information relating to the financial or business affairs of any particular person (including the authority holding that information))

Report of Councillor Bridger (attached)

Councillor Bridger presented the report, updating members on the latest progress with particular reference to Phase 1B of the project to re-open the Portishead rail line, and seeking authorisations to move ahead with the next stage.  He thanked the project team for their work on this, together with the Place Policy and Scrutiny Panel, and drew members’ attention to recommendation 6 of the report proposing disposal of some historic railway assets to Avon Valley Railway for re-use for their heritage railway line extension into Bath.

Members welcomed the report and noted the project was now reaching a critical stage in relation to project costs and key financial risks.  Reference was made to the importance of close budget monitoring and sufficient member engagement and scrutiny of the project to avoid project cost escalation beyond the risks identified.  It was noted that in addition to high level officer discussions the Place Panel was involved in scrutinising the project but that it may be appropriate to involve the Partnerships, Corporate Organisation and Overview Management Panel to scrutinise the financial aspects of the project.

Motion: Moved by Councillor Bridger, seconded by Councillor Davies and

Resolved:

(1) (a) that authority be delegated to the Director of Place, in consultation with the Executive Member for Assets and Capital Delivery, the Assistant Director Legal & Governance & the Director of Corporate Services, to enter into (jointly with the West of England Combined Authority(WECA)) an Implementation Agreement with Network Rail, Part 1 – Detail Design GRIP5 and subsequent addendums to the agreement as outlined in section 5 of the report, as per the values in confidential appendix 2 of the report, leading up to Full Business Case approval, subject to:

(b) North Somerset Council (NSC) and WECA firstly entering into a Side Agreement to extend the 50:50 cost sharing to include all project costs (except revenue costs associated with the operation of the train service), through to the completion of the project, including risks and liabilities arising from NSC entering into Protective Obligations and Protective Provision Agreements with statutory undertakers, as set out in section 4 of the report;

(2) that Council notes that following completion of Detailed Design GRIP5 and the approval of the Full Business Case, a separate report will be brought to Council in summer 2022 seeking authorisation to proceed with Part 2 of the Implementation Agreement and award construction contracts including GRIP 6-8, via Network Rail and authorisation for all other contract awards required to implement the project and re-open the branch line for scheduled passenger train services;

(3) that Council authorise the Client Owned Scope Procurement Plan, attached at appendix 1 of the report and outlined in section 6 of the report, entailing the procurement of the (NSC & WECA) scope of works via the route to market identified for each package at an estimated cost of between £0.800M and £1.100M leading up to Full Business Case approval;

(4) that the Director of Place be authorised to agree terms for the acquisition of land by agreement or any interests in land and to complete acquisition transactions (including the entering into of options for the acquisition and/or use of land and agreements as to compensation and/or accommodation works) as may be required for the proposed railway and associated works, up to a further £500,000, leading up to  the decision on the Development Consent Order by the Secretary of State for Transport (anticipated Autumn 2021) as outlined in section 7 of the report;

(5) that Council authorise an indicative budget of up to £14.4M for the 2022-23 financial year up to the award of Part 2 of the Implementation Agreement and award construction contracts including GRIP 6-8, to be met from the allocated Economic Development Funding, within the approved £116.4M total project cost and to add this to the Council’s Capital Programme, as set out in section 10 of the report; and

(6)  that Council authorise the disposal of some historic railway assets within the Portishead area of the dis-used railway to Avon Valley Railway for re-use for their heritage railway line extension into Bath, as set out in section 8 of the report.  The historic railway assets are not needed by MetroWest Phase 1 and have to be removed to make way for new railway assets and only have a nominal scrap value.  The arrangements for the disposal of these assets will be managed via Network Rail and any additional costs incurred will be passed onto Avon Valley Railway, subject to further discussion between the parties.  The assets will not be removed before the decision by the Secretary of State on the Development Consent Order.  It is anticipated the assets will be removed in mid to late 2022.