Minutes:
Huw Rhys Lewis introduced his colleagues to the Board and presented a report which sought formal approval of the request from the Urban Growth Company / Solihull Metropolitan Borough Council for funding of £9.27 million in order to progress the design development of the project including the following key stages:
· Appointment of a consultant to progress the technical design leading to a planning application for the scheme;
· Preparation of documents to commence a two stage procurement process to appoint a Design and Build (D&B) contractor to undertake the delivery of the project once final funding had been secured against the contractor’s price point; and
· Securing the required level of funding to deliver the construction of the new station.
Huw Rhys Lewis and his colleagues responded to various questions raised by the Board. Gary Taylor enquired how the contribution being sought would be provided from the WMCA funds. Sean Pearce advised that it would be necessary to have regard to the impact of the proposal on other train stations in the region and also for alternative funding sources to be investigated also by the Urban Growth Company / Solihull Metropolitan Borough Council. He advised that whilst this particular request was within the delegated powers of the Board a separate report would be submitted to and considered by the WMCA Board. He reminded the Board that in agreeing to the recommendation the West Midlands Combined Authority Board would need to take into account the summary and recommendations that it received in January 2018 with the report, ‘Progress Update on the West Midlands Combined Authority Investment Programme’. That report had outlined that not all income streams which
supported the West Midlands Combined Authority Programme were secured and therefore the following points with regard to this scheme should be noted:
a) Existing funding rated as ‘Green’ or prudential borrowing that could be made and to be repaid by the region’s future forecast Devolution Grant were sufficient to support the requested funding for this scheme; however
b) Given that there was still substantial work to be concluded to confirm all West
Midlands Combined Authority Income Streams, then approval of this scheme might not allow all further schemes to be approved that were dependent on the West Midlands Combined Authority internally generated resources as contained within the Investment Programme;
c) The basis on which this could be signed off is due to the assumption that the 30 Year Devolution Grant would be received in Full from Central Government. The Total Annual Devolution Grant over 30 years after taking into account the funding of interest costs provides funding for the investment programme of £748 million. Should the Devolution Grant be reduced, the Annual Revenue Cost would need to be met through contributions from Constituent Authorities on the basis of the underwriting of all West Midlands Combined Authority commitments by each Constituent Authority.
Resolved:
1. That, subject to 2. and 3. below, the request from the Urban Growth Company / Solihull Metropolitan Borough Council for funding of £9.27 million to progress the design, development and procurement of the project be approved;
2. That the Urban Growth Company and Solihull Metropolitan Borough Council be requested to work with Transport for West Midlands and other local authorities to ensure that HS2 brings true additionality to the network and does not result in reduced quality or quantity of existing services to London and/or other key destinations;
3. That the Urban Growth Company and Solihull Metropolitan Borough Council be encouraged to seek a requirement for additionality of services across the whole network to be secured from Network Rail as part of any future work.