Agenda and minutes

The Chair reported that because this meeting was being held virtually on MS Teams, under the terms of the WMCA’s Constitution the meeting was inquorate. The decisions subsequently taken would formally be recommended to the Chief Executive, who would then approve those recommendations using her delegated authority to do so under the provisions of the Constitution.  

Apologies for absence were received from Councillors Clark and Grinsell, Sue Summers and Gary Taylor.

Councillor Saleem was nominated as a substitute on behalf of Councillor Clark.

The minutes of the meeting held on 27 June 2022 were agreed as a true record.

The board considered a report of the Director of Investment and Commercial Activities on the status of the Investment Programme to help set the context of any investment decision being made by the board.

Ian Martin, Director of Investment and Commercial Activities provided and update on the Investment Programme and the Investment Programme Dashboard.

He reported that since the previous WMCA Investment Board meeting on 27th June 2022, WMCA Statutory Officers have been provided with a Change Request submission under delegated approval for the NEC Longabout project to amend the project completion date to 31 December 2022 and award a further £1.2m of grant funding from the WMCA Investment Programme moved from a related project. He advised that the existing WMCA Investment Programme grant funding awarded for the Roundabout Over-Trace project would be correspondingly reduced by £1.2m as a result of the same change request submission

It was noted that the WMC Investment funding actually drawn/incurred by projects against these funding commitments as at 31 May 2022 totals £463.3 million.

Resolved:

1.    Approval under delegated authority by WMCA Officers of the business case submission disclosed at Section 3 of the report be noted;

2.    The WMCA Investment Programme funding status and current affordable limit, as outlined at Section 4 of the report be noted;

3.    The status of the City Region Sustainable Transport Settlement (“CRSTS”), as outlined at Section 4 of the report be noted and

4.    The Regional Investment Programme delivery update detailed within this report and appendices (including the project-level summary within the WMCA Investment Programme dashboard at Appendix 4) be noted.

The board considered a report of the Collective Investment Fund dashboard (public iteration) as at 1 July 2022.

Resolved: That the report be noted.

The board considered a report of the Brownfield Land and Property Development Fund dashboard (public iteration) as at 1 July 2022.

The board considered a report of the Revolving Investment Fund Dashboard (public iteration) as at 1 July 2022.

[To pass the following resolution:

That in accordance with Section 100A4 of the

Local Government Act 1972, the press and

public be excluded from the meeting during the

consideration of the following items of business

as they involve the likely disclosure of exempt

information relating to the business affairs of any

particular person (Including the authority holding

that information)]

Resolved:

That in accordance with Section 100A4 of the Local Government Act 1972, the press and public be excluded from the meeting during consideration of the following items of business as they involve the likely disclosure of exempt information relating to the business affairs of any particular person (including the authority holding that information).

The board considered a report from West Midlands Development Capital that sought approval for loan funding from the Collective Investment Fund (CIF) for the sum specified in the report for the ‘Company’ for the development of 14 light industrial units on the former Meggitt Facility, Holbrook Lane, Coventry totalling 149,458sqft. The development would create 290 new jobs once all units are occupied.

It was noted that Phase 1 loan and Phase 2 loan in total would exceed the agreed total exposure limit, however, Phase 1 would be sold in its entirety, and this is scheduled for completion in October 2022 at which point Phase 2 loan would not have started drawing.

Ed Bradburn (WMDC) confirmed that loan funding could not be drawn over the set loan cap and the loan for Phase 1 would be repaid by the end of the year.

The Director of Investment and Commercial Activities, Ian Martin confirmed he was supportive of the loan application.

Resolved:

1.    That a loan for the ‘Company’ from the Collective Investment Fund (CIF) for the sum specified, under the key terms and conditions set out in the report be approved for the development at Holbrook Lane Phase 2 and

2.    That the overall loan cap will not be exceeded at any point be noted.

The board considered a report of the Executive Director Transport for the West Midlands that provided an update on progress on the Buy Before Boarding project and sought approval of an increase in the interim cash flow funding due to changes in scope and unforeseen circumstances.

The West Midlands Metro Project Director, Michael Anderson outlined the report highlighting the background and benefits of introducing the ‘Buy Before Boarding’ ticketing system including the improvement for passengers and the significant operational cost savings that would result from the installation of ticket vending machines at all tram stops.

It was noted the penalty fare for ticketless travel would be increased significantly and a change to the Metro Byelaws would follow in due course.

The Executive Director of Finance and Business Hub, Linda Horne reported that support for the project has been pre-approved by the WMCA Board and reassured Investment Board that the costs of the project were taken into  consideration as part of the wider costs of Metro affordability that were recently agreed by the WMCA Board at its meeting on 15 July 2022.

Resolved:

1.    The contents of the report highlighting the outcome of the procurement process and the feedback from the single assurance framework be noted;  

2.    The long-term aspirations for operational cost reductions through redeployment of revenue protection resources (when fully deployed the Buy Before You Board system is projected to deliver annual operational savings of £3m) be noted and

3.    That an increase in interim cash flow funding from £4.7m to £11.6m to enable the installation of one ticket vending machine all stops on the existing route, that will be able to handle cash and card transactions, and includes the provision of one ticket vending machine of the same specification, at all stops on the future extensions to Brierley Hill and Digbeth be approved and

4.    The provision of cash enabled ticket vending machines along with validators ensures the payment solution is fully inclusive and accessible be noted.

The board considered a report of the Executive Director Transport for the West Midlands that sought endorsement to the scope of work planned for the Cycling and Walking Programme and sought approval for the release of funds towards development and delivery of schemes funded by the Department for Transport, Active Travel Fund Capital 2021-22 (ATF3).

The Implementation Manager, Transport for the West Midlands, Hannah Dayan reported that the ten year Cycling and Walking Programme supports the WMCA’s vision for the West Midlands to build a better connected, more prosperous, fairer, greener and healthier West Midlands and outlined the aims and objectives of the Programme. This included increasing the number of cycling routes, expanding West Midlands cycle hire and increasing the number of cycling and walking trips to reach the Government’s Gear Change target of 50% of all journeys by active travel by 2030.

The Programme Business Case attached to the report, provides the overview of the programme, its concept, strategic aims and economic context. It was noted that individual business cases would be presented in respect of individual projects in due course, in accordance with the Single Commissioning Framework and scheme of delegation to enable the delivery and benefits of each scheme to be reviewed accordingly.

The Implementation Manager reported that the board is asked to approve up to 10% of the total amount secured for each scheme that would made available to the Sponsors of each individual business case for development and design of schemes. This includes 12 schemes totalling £1.7m of secured funding from the Active Travel Fund (ATF) round 3 and further funding expected over subsequent years.

In relation to an enquiry from Councillor Saleem seeking clarification regarding the revenue and future maintenance cost of schemes, Hannah Dayan reported that individual local authorities would fund these costs themselves which should be included in future budgets.

Resolved:

1.    The scope of work planned within the Cycling and Walking Capital Programme covering the next ten years be endorsed and

2.    The release of up to 10% of secured funds (£1.7m) for the development and delivery of each scheme funded by the Department for Transport’s Active Travel Fund, tranche 3 2021-22 Capital (ATF3) be approved.

The board considered a report of the Executive Director of Economic Delivery, Skills and Communities that informed the board of the  success of the pilot Made Smarter West Midlands Programme and to sought endorsement for this project to proceed and to access  £6.9m of Government funding with the aim of continuing the Made Smarter movement within the West Midlands.

It was noted that the Made Smart adoption programme (sponsored by BEIS) aims to help manufacturing SMEs in the West Midlands to increase productivity, competitiveness, resilience and efficiency through the take-up of digital technologies by building on the success of the Made Smarter West Midlands pilot in 2021/22.

The Innovation Lead, Jamie Elliot, reported that BEIS have allocated £24m over the next three years for the continuation of the programme in the UK and the West Midlands would receive up to £2.3m per annum to deliver phase 2 of the programme. It was noted that the processes and delivery partner utilised for Phase 1 of the programme would continue in order to build on the successes and learning provided by the pilot.

Councillor Jefferson commented that the programme would deliver a good deal if it succeeds in delivering the GVA forecast stated in the report and enquired whether the programme would apply across the 3 LEP areas of the WMCA.

Jamie Elliot confirmed that programme did apply across the 3 LEP area and that it covers 6 LEP areas.

Resolved:

1.    The continuation of the project be endorsed and

2.    The WMCA continue to be the accountable body for the Made Smarter West Midlands Programme be endorsed.

The board received a briefing note on the Coventry City Centre South project, a key regeneration project for Coventry City Council and the WMCA which has benefited from WMCA funding awarded in 2018.

The briefing note was submitted for information. The board also received a presentation from Adam Hunt (Coventry City Council) that included an update on progress and proposed changes to the scheme; a Change Request would be submitted to the board for approval in the Autumn.

The board were fully supportive of the changes outlined.

Resolved: The briefing note and presentation be noted.

The board considered a report setting out the dashboard for the Collective Investment Fund (private iteration) as at 1 July 2022.

Resolved: That the report be noted.

The board considered a report setting out the dashboard for the Brownfield Land and Property Development Fund (private iteration) as at 1 July 2022.

Resolved: That the report be noted.

The board considered a report setting out the dashboard for the Revolving Investment Fund (private iteration) as 1 July 2022.

Resolved: That the report be noted.

The board considered a report out the dashboard for the Black Country Land and Property Investment Fund as at 1 July 2022.

Resolved: That the report be noted.

The Executive Director for Housing, Property and Regeneration, Gareth Bradford, presented the Housing and Land Funds Dashboards  that provided and update on the three funds; Brownfield Housing Fund, National Competitive Fund and Land Fund.

Resolved: That the report be noted.