Agenda item

To receive a report outlining the progress for Tranche 3 projects and activity of the Town Deal Local Boards. Agenda Pack includes the approved minutes from the December Rowley Regis Local Board meeting for Superboard’s reference.

 

Jude Thompson introduced Jenna Langford, Interim Towns Fund Programme Manager, to present an overview of the programme.

 

Currently all projects, aside from the Blackheath Bus Interchange and Public Realm Project (discussed within agenda item 13), are RAG rated green, and are on track for submission to DLUHC in line with the 24th March submission date.

 

Positive news was shared with Members regarding the Digital Den project (West Bromwich portfolio). The project Summary Document was submitted to DLUHC in October 2021 and the Programme Management Office has recently received confirmation of approval by DLUHC. In addition, funding is expected late February 2022. This project is moving into delivery phase which represents the first Towns Fund spend within the programme.

 

Members were informed a planning application for the Sandwell Civil and Mechanical Engineering Centre, West Bromwich project led by Sandwell College was submitted this week, which is another key milestone for this project previously agreed by Superboard.

 

 

West Bromwich

 

All three remaining West Bromwich Full Business Cases were scheduled for Superboard consideration and review as part of today’s agenda. Subject to Superboard agreement, Full Business Cases would proceed to Assurance Panel. There were therefore no assurance panel recommendations to report on these projects.

 

 

Smethwick

 

Two Smethwick projects were scheduled for Superboard consideration, review and agreement as part of today’s agenda.

 

Following Superboard agreement on 17 January 2022, The Ron Davis Centre Expansion Project was presented to Assurance Panel on 24 January and 8 February 2022, however Assurance Panel Members requested further work to address recommendations prior to Assurance Panel approval.

 

Jenna provided Superboard with an overview of the recommendations made by the assurance panel on the remaining Smethwick projects, previously agreed by Superboard:

 

Rolfe St Regeneration

 

·       That prior to entering into a funding agreement with the DLUHC, Strategic Finance review the terms and conditions of funding to assess the level of risk to the council.

·       A Project Change Request to be submitted to DLUHC to capture revised number of  residential units (115 from 125).

·       The Full Business Case is updated to reflect the most viable delivery option to deliver the 115 residential units will be undertaken (i.e. joint venture or through development agreement)

 

Smethwick Connected

        

·       That prior to entering into a funding agreement with the DLUHC, Strategic Finance review the terms and conditions of funding to assess the level of risk to the council.

·       That more detailed costings and supporting information is provided for phases 2 to 5.

 

 

Rowley Regis

 

The Britannia Park Community Hub project was scheduled to be presented to Superboard today for consideration, review and agreement.

 

The Blackheath Bus Interchange and Public Realm project was scheduled on today’s agenda, but board members were advised that, given the documented difficulties in developing the Full Business Case for this project, it will be reviewed by an exceptional meeting of the assurance panel on the 10th March 22. Further discussion regarding this project continued within item 13 of the agenda.

 

Jenna provided Superboard with an overview of the recommendations made by the assurance panel on the remaining Rowley Regis projects:

 

The Rowley Regis Satellite Education Hub

 

·       That the Partnership Agreement between Sandwell MBC and Sandwell College formally transfers the full financial risk of delivery and operation of the project to Sandwell College

·       That external VAT advice is sought to confirm that VAT costs will be considered eligible spend

·       That prior to entering into a funding agreement with the DLUHC, Strategic Finance review the terms and conditions of funding to assess the level of risk to the council.

·       That the agreement between Sandwell Council and Sandwell College includes a provision for payments to Sandwell College to be made in arrears, following evidence of defrayed expenditure to reduce the financial risk to Sandwell MBC.

·       That the terms of the lease agreement are reviewed and confirmed as adequate prior to the commencement of the project.

·       Project Change Request to be submitted to DLUHC to capture revised number of learners assisted and value of project Towns Fund Ask.

 

The Canal Network Connectivity Project

 

·       That prior to entering into a funding agreement with the DLUHC, Strategic Finance review the terms and conditions of funding to assess the level of risk to the council;

·       That the Partnership Agreement between Sandwell MBC and CRT formally transfers the full financial risk of delivery and operation of the project to CRT;

·       That the Partnership Agreement includes a provision for payments to CRT in arrears, following evidence of defrayed expenditure to reduce the financial risk to Sandwell MBC;

·       That the Financial Case includes a full breakdown of the capital costs and a narrative confirming that soft market testing has been undertaken to demonstrate robustness in the cost estimates;

·       That the Commercial Case captures the Design, Consent, Construction, Financing and Operational (revenue) Risk allocation between CRT and the contractor.

 

The Chair invited Members to raise questions. No queries/ comments were forthcoming.

 

Jude invited each of the Local Board Chairs to present a short summary of recent Local Board meetings.

 

Chris Hinson - West Bromwich Local Board

 

Chris advised Superboard on the recent meeting, where Local Board Members were given presentations on the three outstanding Full Business Cases.

 

Throughout this process Local Board have provided constant challenge and question to project leads. Recently these have focussed on the need to ensure ongoing maintenance to ensure the future longevity of projects. This has resulted in a number of recommendations to project leads as projects move into delivery stage.

 

West Bromwich Local Board wholeheartedly endorse the Full Business Cases presented to Superboard today.

 

 

Chris Hinson, on behalf of Adrian Eggington - Rowley Regis Local Board

 

Chris read a pre-prepared statement from Adrian Eggington. Adrian outlined his - and Local Board - support for all projects presented to Superboard today and noted the Local Board’s pleasure in hearing that previous projects presented to Superboard had been successfully passed on to submission to DLUHC.

 

 

Alan Taylor - Smethwick Local Board

 

Alan provided Members with an overview of discussions from recent Local Board.

 

There had been concerns raised with regards to the walking and cycling project and certain members remain to be convinced about their future success, although the majority of Local Board are optimistic in this respect.

 

Discussions also revolved around local procurement and ensuring spend is retained in the local area. Local Board are strongly advocating this approach to project leads and work is underway to ensure this.