Minutes:
Malcolm Holmes presented a report which provided the details of the Full Business Case (FBC) for University Station, Birmingham. He referred to a reduction in the contribution being made towards the project by the Greater Birmingham and Solihull Local Enterprise Partnership and the steps being taken and/or proposed to address the funding gap. He assured the Board that in the event that the re-prioritisation of WMCA resources required approval, a further report would be submitted to the WMCA Board. For the avoidance of doubt, he re-iterated that the main ‘Design and Build’ contract would be entered into until such time as the scheme was funded fully.
Councillor Mike Bird suggested that the University of Birmingham and University Hospital, Birmingham (UHB) be approached for further financial contributions as major beneficiaries of the project. Malcolm Holmes confirmed that consideration would be given to all options for identifying additional funding schemes, including both funders. It was unlikely, however, that UHB would be able to contribute further. Councillor Tristan Chatfield queried whether a 16% contingency allowance was in accordance with the Green Book and on the responsible authority for payment of any overspends on the approved sum. James Callingham reported that a 16% contingency allowance was standard for rail projects and that TfWM / WMCA as the scheme sponsor would be responsible for funding any overspends on the project. Malcolm Holmes assured the Board that the costings had been examined thoroughly and it was not anticipated that the budget requested would be exceeded but that it was dependent on the values of the tender returns.
Linda Horne outlined the three-pronged monitoring process via the Transport Delivery Committee, the WMCA Board and this Board. Councillor Karen Grinsell enquired whether, if necessary, more regular meetings of the various bodies would be held, if necessary. The Chair advised that the Officers would make such arrangements as necessary.
Resolved:
1. That the Full business Case (FBC) for the University rail Station be endorsed for onwards consideration by the WMCA Board in March 2020;
2. That the full budget (based on estimates post outline design) as detailed in the report be noted and subject to the WMCA agreeing funding with the relevant parties referred to in the report with delegated authority to be granted to the Director of Rail to authorise such funding agreements on the advice of the Head of Governance and Director of Finance;
3. That the Director of Rail be authorised to authorise the award of the ‘Design and Build’ contract on the advice of the Head of Governance and Director of Finance, this being subject to the entire funding package being secured and funding agreements being in place with the funding partners;
4. That the Head of Governance be authorise to approve the negotiation of the overall suite of agreements detailed in the report and between (variously) the WMCA, University of Birmingham, Network Rail and the Canal and River Trust including working with such stakeholders to facilitate the agreements between them to which the WMCA was not a party;
5. That the Head of Governance be authorised to approve the agreements where the WMCA was a party including an Overarching Agreement, a Development Agreement with the University of Birmingham, an Asset Protection Agreement with Network Rail, a works agreement with the Canal and River Trust, Station Change documentation and various access licences (with those and other parties) for investigations and works;
6. That work to determine the operating costs falling to the WMCA as a result of this investment which were being developed but not yet quantified fully be noted;
7. That the implications of the Greater Birmingham and Solihull Local Enterprise Partnership reducing its conditional offer to accommodate other wider financial pressures within its programmes be noted.