Issue - meetings

Lancaster Caton Road (Phase 3) Flood Risk Management Scheme

 

 

Meeting: 15/01/2019 - Cabinet (Item 79)

79 Lancaster Caton Road (Phase 3) Flood Risk Management Scheme pdf icon PDF 173 KB

(Cabinet Member with Special Responsibility Councillor Hanson)

 

Report of Assistant Chief Executive

Additional documents:

Minutes:

(Cabinet Member with Special Responsibility Councillor Hanson)

 

Cabinet received a report from the Assistant Chief Executive to update Members on the design phase of the proposed River Lune flood defence scheme and to consider the current scheme costs and status of all secured and potential match-funding contributions from external sources. The report considers the council's funding position on the basis that there are currently insufficient external resources available to fund the estimated construction cost. On the information presented on scheme costs and funding, Members are asked whether to fund the projected balance of scheme costs and whether to proceed towards a construction contract and project implementation. 

 

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

 

 

Option 1:

 

Members accept there is insufficient funding to enable the project to proceed.

 

Option 2:

 

Members agree: 

 

a)  a contribution of £847K towards the capital costs of the scheme;

b)  to accept an offer of ERDF funding and for officers to formally secure the anticipated business contributions;

c)  Officers complete the design/target cost package and agree a contract for Stage 2 capital works with VBA Joint Venture Limited (subject to the approval of enough funding to meet scheme costs).  

 

Option 3:

 

Members agree:

 

a)   A lower council contribution and ask officers to secure additional private contributions and/or cost savings to meet the balance of scheme costs.  

b)   Officers report to February Cabinet on the cost / funding position.

 

 

Advantages

No further direct capital cost / project delivery risk to the council.

 

Gives certainty on the council’s position.

 

Scheme design completed to take advantage of any future funding opportunities.

 

Provides a comprehensive

solution to fluvial / pluvial flood risk on the Caton Road industrial estates.

 

Provides a range of economic, investment and environmental benefits.  

 

Sets out a clear council

commitment to businesses/asset holders in the area and incentive for private contributions to eb secured.

 

Demonstrates delivery to

Government and EA boosting chances for future scheme funding.

 

Potential indirect future benefit to Council’s “bottom line” budget in increased rate retention.

Potential to deliver same advantages as Option 2.

 

Sets out a level of financial commitment the council is willing to make to businesses / asset holders in the area.

 

Ensures a focussed negotiation.

 

Lower additional growth to be absorbed by the council’s budget.

 

Disadvantages

Business, investment, economic and environmental benefits may not be realised for some time, if at all. 

 

Area continues to be vulnerable to severe flooding impacts with implications for commercial interests and the public.

 

Loss of current funding opportunities. 

 

Involves the council taking the delivery/funding risks on a major project.

 

Additional cost to the General Fund revenue budget of £17K per annum for 50 years.

 

Completion of construction contract details and funding package must be undertaken to meet ERDF and Government deadlines as well as meeting practical “tree felling” window. (refer to para 3.7)

 

Maintenance of the proposed flood defence will be with the council as Risk Management Authority (Refer  ...  view the full minutes text for item 79