Agenda item

RESOLVED:

1. That subject to the signing of a flow down agreement with Runnymede Borough Council as detailed in recommendation 2, it be approved that Surrey County Council (SCC) confirms acceptance of the funding award of £41.8 million for the A320 North of Woking Housing Infrastructure Fund (HIF) Forward Funding scheme allocated by the Ministry of Housing, Communities & Local Government (MHCLG), by agreeing to proceed to sign the relevant Homes England Grant Determination Agreement (GDA);

2. That either prior to or concurrently with signing the GDA agreement, it be approved that SCC enters into a side agreement / Flow Down contract with Runnymede Borough Council (RBC) regarding any GDA conditions which relate not to the delivery of the infrastructure but instead to those elements particularly associated with housing, alongside a cost sharing arrangement. The signing of the GDA be delegated to the Executive Director Environment, Transport and Infrastructure and the Executive Director of Resources in consultation with the relevant Cabinet Member and the Leader.

3. That the scheme be moved from capital pipeline to capital budget immediately post-GDA signature but prior to the targeted receipt date for the HIF allocation of October 2020 in order to allow for the project to progress in line with the target timescale for completion be approved.

4.    That provision for a contingency of £2m from the Council’s capital programme to support any project cost overruns should they arise be approved.

5. That delegated authority be given to the Executive Director Environment, Transport and Infrastructure and the Executive Director of Resources in consultation with the relevant Cabinet Member to approve any further decisions relating to the forward funding conditions.

6. That the necessary authority and permission be given to officers to proceed to facilitate land purchase through Compulsory Purchase be approved in the event that any initial attempts through direct negotiation prove to be unsuccessful, subject to the signing of the GDA by SCC.

Reason for Decision:

• SCC’s acceptance of the grant funding will facilitate the delivery of the road infrastructure to support the additional housing identified in RBC’s Local Plan. 

• The proposed flow-down/side agreement will ensure that SCC and RBC are held to account for those elements of the project and related outcomes for which they are responsible. 

• Moving the scheme funding from pipeline to capital budget will release funds for further scheme development and thereby enable SCC to commence work on the scheme as early as possible considering the limited time now available within which to deliver the full improvements. The cost of expenditure incurred pre-signature will be fully rechargeable to the Scheme once funding is released.

• The additional contingency provided by SCC will ensure that should any cost overruns are able to be met, and that these are met in a way that is shared with RBC in accordance with the methodology set out in this report.

• Delegation on decisions relating to the forward funding conditions is sought to enable timely decisions to be taken on the operational aspects of delivering the scheme.

• Beyond Cabinet’s previous resolution that authority be given to officers to commence early discussions with landowners with respect to acquisition by negotiation, Cabinet is also now asked to provide authority to commence land acquisition with through compulsory purchase where such negotiations are clearly failing. The provision of such authority will allow the CPO process to progress in a timely manner should the need arise particularly where the designed future alignment requires land that cannot be acquired by negotiation.

[The decisions on this item can be called in by the Communities, Environment and Highways Select Committee]

The Cabinet Member for Highways introduced the report explaining that the Housing Infrastructure Fund Forward Funding is a £5.5 billion government capital grant

programme launched in summer 2017 to help to deliver up to 300,000 new homes in England. Surrey had been successful in three bids in Guildford, Woking and Runnymede. The council is proposing that there is a flow down the side agreement that will ensure both Surrey and Runnymede are in partnership on all elements of the project. It was explained that there were a few risks with the scheme namely that Runnymede Borough Council would be responsible for delivering housing and hence the proposal of a side agreement so the risk sat with Runnymede. Improvements would be put into Junction 11 to fit around the Smart Motorway works that highways England are proposing from Junction 10-16 which starts next year. 

The following  changes were proposed  by the Cabinet Member for Highways to Recommendations 1 and 2 in the report which were agreed by Cabinet:

1. Subject to the signing of a flow down agreement with Runnymede Borough Council as detailed in recommendation 2,Surrey County Council (SCC) confirms acceptance of the funding award of £41.8 million for the A320 North of Woking Housing Infrastructure Fund (HIF) Forward Funding scheme allocated by the Ministry of Housing, Communities & Local Government (MHCLG), by agreeing to proceed to sign the relevant Homes England Grant Determination Agreement (GDA);

2. Either prior to or concurrently with signing the GDA agreement, SCC enters into a side agreement / Flow Down contract with Runnymede Borough Council (RBC) regarding any GDA conditions which relate not to the delivery of the infrastructure but instead to those elements particularly associated with housing, alongside a cost sharing arrangement. The signing of the GDA be delegated to the Executive Director Environment, Transport and Infrastructure and the Executive Director of Resources in consultation with the relevant Cabinet Member and the Leader;

The Deputy Cabinet Member to the Leader welcomed the improvements to the changes to the road network and the need to supply housing in the area. The Cabinet Member for Finance welcomed the changes to Recommendations 1 and 2 in the report stating that Ottershaw residents were concerned around the loss of the Murray car park which supports the village hall and activity taking place there. The Cabinet Member asked that going forward any schemes take account of the proximity of the Murray car park to the village hall. It was confirmed that the original design submitted as part of the bid would be adapted to meet the needs of residents.

RESOLVED:

1. That subject to the signing of a flow down agreement with Runnymede Borough Council as detailed in recommendation 2, it be approved that Surrey County Council (SCC) confirms acceptance of the funding award of £41.8 million for the A320 North of Woking Housing Infrastructure Fund (HIF) Forward Funding scheme allocated by the Ministry of Housing, Communities & Local Government (MHCLG), by agreeing to proceed to sign the relevant Homes England Grant Determination Agreement (GDA);

2. That either prior to or concurrently with signing the GDA agreement, it be approved that SCC enters into a side agreement / Flow Down contract with Runnymede Borough Council (RBC) regarding any GDA conditions which relate not to the delivery of the infrastructure but instead to those elements particularly associated with housing, alongside a cost sharing arrangement. The signing of the GDA be delegated to the Executive Director Environment, Transport and Infrastructure and the Executive Director of Resources in consultation with the relevant Cabinet Member and the Leader.

3. That the scheme be moved from capital pipeline to capital budget immediately post-GDA signature but prior to the targeted receipt date for the HIF allocation of October 2020 in order to allow for the project to progress in line with the target timescale for completion be approved.

4.    That provision for a contingency of £2m from the Council’s capital programme to support any project cost overruns should they arise be approved.

5. That delegated authority be given to the Executive Director Environment, Transport and Infrastructure and the Executive Director of Resources in consultation with the relevant Cabinet Member to approve any further decisions relating to the forward funding conditions.

6. That the necessary authority and permission be given to officers to proceed to facilitate land purchase through Compulsory Purchase be approved in the event that any initial attempts through direct negotiation prove to be unsuccessful, subject to the signing of the GDA by SCC.

Reason for Decision:

• SCC’s acceptance of the grant funding will facilitate the delivery of the road infrastructure to support the additional housing identified in RBC’s Local Plan. 

• The proposed flow-down/side agreement will ensure that SCC and RBC are held to account for those elements of the project and related outcomes for which they are responsible. 

• Moving the scheme funding from pipeline to capital budget will release funds for further scheme development and thereby enable SCC to commence work on the scheme as early as possible considering the limited time now available within which to deliver the full improvements. The cost of expenditure incurred pre-signature will be fully rechargeable to the Scheme once funding is released.

• The additional contingency provided by SCC will ensure that should any cost overruns are able to be met, and that these are met in a way that is shared with RBC in accordance with the methodology set out in this report.

• Delegation on decisions relating to the forward funding conditions is sought to enable timely decisions to be taken on the operational aspects of delivering the scheme.

• Beyond Cabinet’s previous resolution that authority be given to officers to commence early discussions with landowners with respect to acquisition by negotiation, Cabinet is also now asked to provide authority to commence land acquisition with through compulsory purchase where such negotiations are clearly failing. The provision of such authority will allow the CPO process to progress in a timely manner should the need arise particularly where the designed future alignment requires land that cannot be acquired by negotiation.

[The decisions on this item can be called in by the Communities, Environment and Highways Select Committee]