Agenda item

Recommendation

It is recommended that Members approve the delegation of authority to the Corporate Director – Environment, in consultation with the Corporate Director – Resources, the Assistant Chief Executive Legal and Democratic Services, the Executive Member for Highways and Transportation and the Executive Member for Finance to:

       i.         accept full grants from WYCA and YNYCA subject to funding body Approval to Proceed and acceptable terms and conditions of grant being received.

Subject to i:

     ii.         agree the final terms of and enter into the construction contract to deliver the Harrogate TCF project with NYH

    iii.         delegate authority to enact project scope adjustments, if necessary, post-contract entry to maintain costs within budget or to seek additional funding.

    iv.         delegate authority to procure and appoint NEC 4 Project Manager and Supervisor and professional services necessary for contract management and delivery of the Harrogate TCF project.

Considered – A report of the Corporate Director Environment in which approval was sought to enter into a construction contract with North Yorkshire Highways and funding agreements with West Yorkshire Combined Authority and the York and North Yorkshire Combined Authority to deliver the Harrogate Transforming Cities Fund (TCF) project.  The TCF programme was funded by the Department for Transport and in Harrogate the aim was to support a shift towards more sustainable travel such as walking, cycling and using public transport in the vicinity of Harrogate Rail Station, whilst enhancing the street scene at a key gateway to the town centre.

The Executive Member for Highways and Transportation, Councillor Malcolm Taylor, introduced the item which would provide investment into the public realm in Harrogate.  The Corporate Director Environment, Karl Battersby, reported that three public consultation exercises had been undertaken, and the scheme amended following comments received.  The scheme represented one of the most significant investments in Harrogate in recent times and the proposal to use North Yorkshire Highways would ensure it was affordable.  It was confirmed that Traffic Regulation Orders being in place was not a pre-requisite of funding from the Combined Authority.

The Head of Legal Property, Planning and Environment, Catriona Gatrell, referred to a legal challenge brought against the Traffic Regulation Orders made in relation to the project.  Whilst the legal challenge had been dismissed, a recent ruling had granted the right of appeal to the Court of Appeal against the original decision, on the basis that there was a real prospect of success.  It was confirmed that in making a decision today the Council could rely on the high court decision which had been made in its favour.

Councillor Michael Harrison explained that the scheme would also include improvements to signalling on the A61 from the Royal Hall which would improve traffic flow through the town centre and the scheme had received cross-party support within the town.

Resolved (unanimously)

That approval be given to the delegation of authority to the Corporate Director Environment, in consultation with the Corporate Director Resources, the Assistant Chief Executive Legal and Democratic Services, the Executive Member for Highways and Transportation and the Executive Member for Finance to:

i.                accept full grants from WYCA and YNYCA subject to funding body Approval to Proceed and acceptable terms and conditions of grant being received.

Subject to i:

ii.              agree the final terms of and enter into the construction contract to deliver the Harrogate TCF project with NYH

iii.             delegate authority to enact project scope adjustments, if necessary, post-contract entry to maintain costs within budget or to seek additional funding.

iv.             delegate authority to procure and appoint NEC 4 Project Manager and Supervisor and professional services necessary for contract management and delivery of the Harrogate TCF project.

Reasons for recommendations

It is necessary for the Council to formally accept funding to comply with the Council’s governance procedures.

As the funding is above £500,000 this decision would normally be made by Executive. However, due to the need to co-ordinate timing of the acceptance of grant funding and the signing of construction contracts, the Executive is asked to delegate approval to Corporate Director - Environment, in consultation with the Corporate Director - Resources, Assistant Chief Executive Legal and Democratic Services, Executive Member for Highways and Transportation and the Executive Member - Finance (in line with paragraph 13 of the Executive Members Delegation Scheme under the Constitution). This is on the basis that it is not practicable to refer it to the Executive for determination due to the tight timescales involved.

Alternative options considered

The following options were considered in drafting this report and the subsequent recommendations:

Do not accept the funding and do not proceed with works - This would remove any financial risk of delivering the scheme from the Council entirely as well as limit any future legal challenges in relation to the project but would result in the Council’s regeneration and active/public travel ambitions not being realised in Harrogate. The Council would have expended significant abortive costs on developing the project and the benefits of the scheme would not be realised leading to reputational damage to the Council from supporters of the scheme and funding partners. Furthermore, the DfT and WYCA have stated that the potential to use TCF funds for the delivery of other elements of the programme would be limited to elements of the Selby Project that have been sufficiently appraised at full business case stage. It is likely the majority of funding would have to be returned to the DfT for re-allocation elsewhere. Similarly, the funding from YNYCA would likely also have to be returned and / or allocated elsewhere in North Yorkshire.   

The above option would likely result in reputational damage to the Council, not only with the funding bodies but with stakeholders and supporters of the scheme, putting at jeopardy future opportunities to secure external development funding for Harrogate and potentially the wider North Yorkshire area.