Decision details

To obtain approval to allocate Corporate Investment Fund contributions up to a maximum of £3.75 million to the Upper Don Valley Flood Protection Scheme Phase One.  These funds will ensure that the scheme is within budget and enable the award of the construction operator contract. Once this is complete the scheme can progress to its detailed design and construction stage in February 2020. A decision to allocate these extra funds is needed to enable the scheme to proceed in line with a programmed timetable agreed with the Council’s partner investors. This will ensure that the Council retains secured external partner funds amounting to £5.435 million to support delivery of the scheme.

That the Leader of the Council:-

1. Approves the allocation of Corporate Investment Funds of up to a maximum of £3.75 million to the Upper Don Valley Flood Protection Scheme Phase 1 budget, to enable the scheme to proceed as outlined in the report; and

2. Notes that officers will work to secure additional direct Government funding, including further Flood Defence Grant In Aid (FDGiA), to reduce the allocation approved above.

An allocation of Corporate Investment Fund to the scheme in January 2020 combined with the start of the design and build contract in February 2020 will allow the scheme to proceed in line with the programmed timetable and ensure that the Council retains £5.46 million of external funding. This decision will ensure that the Council complies with its contract with Sheffield City Region (SCR) to deliver the scheme outputs by 31^st October 2021 and avoid penalties of:-

1.    The Council would have to find funds to repay £866,103 of SCR funding already expended; and

2.    The Council would lose £5.435 million of secured external scheme funding.

Do nothing and lose the funding secured/spent to date –

The Council does not have a legal duty to reduce the risk of main river flooding within the city through investment in capital infrastructure and can choose not to allocate funds to the scheme; however the Corporate Plan outlines a clear intention to prioritise investment in this area, and external partner investors, including Central Government, expect a suitable level of local financial commitment.

The project could be terminated at this stage. This would not deliver the proposed benefits to the homes and businesses in the area and the Council would incur financial penalties as follows:-

1. The Council would have to find funds to repay £866,103 of SCR funding already expended.

2. The Council would lose £5.435 million of secured external scheme funding.