Agenda item

11.1

The Executive Director, Place submitted a report in relation to the Bus Rapid Transit Northern Route. The report sought authority to commence to construction, subject to the Department for Transport (DfT) decision regarding funding and the Council’s approvals process, all of the highway infrastructure works within Sheffield in accordance with the agreed Principal Contractor’s scheme of works.

11.2

RESOLVED: That Cabinet:-

(a)

acknowledges and supports the progression of the BRT North scheme to full construction and authorise the completion of formal contracts with Carillion and North Midland to construct the necessary highway infrastructure within Sheffield, inclusive of the Tinsley Link Road, on terms satisfactory to the Director of Commercial Services or an officer nominated by him for this purpose;

(b)

accepts the grants from the DfT for £15.888m and ERDF for £8.1m funding on terms satisfactory to the Director of Regeneration and Development Services  in consultation with the Director of Legal and Governance and the Director of Finance;

(c)

authorises the Director of Regeneration and Development Services, in consultation with the Director of Legal and Governance and the Director of Finance, to take such further steps and to enter into such further agreements or arrangements, and on such terms, as he may consider appropriate to enable the successful delivery of the project within the approved budget.

11.3

Reasons for Decision

11.3.1

Officers have now completed all the necessary conditions of the DfT funding and as a consequence when the report was published were awaiting the decision from DfT on the initial estimate £15.4m of capital funding. This was granted but for an amount of £15.888m. This enabled the project to draw-down £8.1m of ERDF grant – following approval from the Department for Communities and Local Government (DCLG) for ERDF funding for the BRT North scheme.

11.3.2

A ‘Key Stage Review’ of the BRT North project was undertaken by senior City Council officers in July 2013. The review identified that the project had robust risk and project management processes in place and there was evidence that these were well managed and were being followed by all project partners. As such there was confidence in the successful delivery of BRT North and thus the Review recommended that the project proceeded to the next stage.

11.3.3

The scheme represented a high benefit to cost ratio and supported the Standing Up For Sheffield corporate objective of a Strong and Competitive Economy.

11.3.4

Once Full Approval from the Department for Transport was received, this will enable the drawdown of ERDF Funding – as it was a condition of the scheme receiving essential ERDF monies from DCLG.

11.4

Alternatives Considered and Rejected

11.4.1

The original proposal was to provide a tram link between Meadowhall and Rotherham. Instead Central Government recommended the partners look at Bus Rapid Transit instead.

11.4.2

The scheme partners have considered different routes and levels of service for the BRT North scheme before finalising on the recommended one.  This decision was based on affordability and deliverability.

11.4.3

The ‘do nothing’ option was rejected as it would not enable achievement of the economic growth aspirations of the City (or wider Sheffield City Region) and would limit public transport accessibility in a key development corridor that currently experienced high level of congestion and poor air quality.

11.5

Any Interest Declared or Dispensation Granted

None

11.6

Reason for Exemption if Public/Press Excluded During Consideration

None

11.7

Respective Director Responsible for Implementation

Simon Green, Executive Director, Place

11.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

Economic and Environmental Wellbeing

11.1

The Executive Director, Place submitted a report in relation to the Bus Rapid Transit Northern Route. The report sought authority to commence to construction, subject to the Department for Transport (DfT) decision regarding funding and the Council’s approvals process, all of the highway infrastructure works within Sheffield in accordance with the agreed Principal Contractor’s scheme of works.

11.2

RESOLVED: That Cabinet:-

(a)

acknowledges and supports the progression of the BRT North scheme to full construction and authorise the completion of formal contracts with Carillion and North Midland to construct the necessary highway infrastructure within Sheffield, inclusive of the Tinsley Link Road, on terms satisfactory to the Director of Commercial Services or an officer nominated by him for this purpose;

(b)

accepts the grants from the DfT for £15.888m and ERDF for £8.1m funding on terms satisfactory to the Director of Regeneration and Development Services  in consultation with the Director of Legal and Governance and the Director of Finance;

(c)

authorises the Director of Regeneration and Development Services, in consultation with the Director of Legal and Governance and the Director of Finance, to take such further steps and to enter into such further agreements or arrangements, and on such terms, as he may consider appropriate to enable the successful delivery of the project within the approved budget.

11.3

Reasons for Decision

11.3.1

Officers have now completed all the necessary conditions of the DfT funding and as a consequence when the report was published were awaiting the decision from DfT on the initial estimate £15.4m of capital funding. This was granted but for an amount of £15.888m. This enabled the project to draw-down £8.1m of ERDF grant – following approval from the Department for Communities and Local Government (DCLG) for ERDF funding for the BRT North scheme.

11.3.2

A ‘Key Stage Review’ of the BRT North project was undertaken by senior City Council officers in July 2013. The review identified that the project had robust risk and project management processes in place and there was evidence that these were well managed and were being followed by all project partners. As such there was confidence in the successful delivery of BRT North and thus the Review recommended that the project proceeded to the next stage.

11.3.3

The scheme represented a high benefit to cost ratio and supported the Standing Up For Sheffield corporate objective of a Strong and Competitive Economy.

11.3.4

Once Full Approval from the Department for Transport was received, this will enable the drawdown of ERDF Funding – as it was a condition of the scheme receiving essential ERDF monies from DCLG.

11.4

Alternatives Considered and Rejected

11.4.1

The original proposal was to provide a tram link between Meadowhall and Rotherham. Instead Central Government recommended the partners look at Bus Rapid Transit instead.

11.4.2

The scheme partners have considered different routes and levels of service for the BRT North scheme before finalising on the recommended one.  This decision was based on affordability and deliverability.

11.4.3

The ‘do nothing’ option was rejected as it would not enable achievement of the economic growth aspirations of the City (or wider Sheffield City Region) and would limit public transport accessibility in a key development corridor that currently experienced high level of congestion and poor air quality.