CITY REGION COMBINED AUTHORITY

To: The Chair and Members of the Combined Authority

Meeting: 8 December 2017

Authority/Authorities Affected: All

EXEMPT/CONFIDENTIAL ITEM: No

REPORT OF THE LEAD OFFICER: TRANSPORT

LOCAL GROWTH FUND: APPROVAL OF COMPLEX MAINTENANCE SCHEME FUNDING PROPOSAL

1. PURPOSE OF REPORT

The purpose of this report is to seek approval of the Transport Advisory Group recommendation to the Combined Authority for the approval to fund a revised programme of works for years four and five of the Silver Jubilee Bridge major maintenance scheme at a cost of £2.2m. The Transport Advisory Group recommend that this additional funding is sourced from unallocated Local Growth Fund 1 funding via the approved change control process for Local Growth Fund 1, in accordance with the Local Growth Fund 1 assurance framework.

2. RECOMMENDATIONS

It is recommended that the Combined Authority:-

(a) Approve the proposal for £2.2m of the remaining Local Growth Fund1 funding to be allocated to the Silver Jubilee Bridge maintenance scheme, in accordance with the Local Growth Fund 1 Assurance Framework; (b) Note that the scope of the works included in the original programme will change to accommodate the time limited opportunity to undertake major maintenance works to the arch superstructure while the bridge is closed; (c) Approve an acceleration of the works proposed in the Sustainable Transport Enhancements Programme business case for the Silver Jubilee Bridge Corridor to be accelerated into 2018/19, for delivery ahead of schedule while the bridge is closed. This package of Sustainable Transport Enhancements Programme investment totals around £0.550m; and (d) Note that the works included in the original business case for completion in years 4 & 5 will now be re-prioritised as part of the Liverpool City Region transport pipeline refresh. Accordingly, funding for these original works is not being sought from Local Growth Fund 1.

3. BACKGROUND

3.1 On the 18th December 2015, the Combined Authority considered a Major Scheme Business Case for the delivery of a programme of maintenance works on the Silver Jubilee Bridge in Halton over a five year period. Funding for the first three years of this programme was granted approval from the Combined Authority at a value of £3.96m, with an indication that should any funding from Local Growth Fund 1 remain in the future, then a further funding request could be submitted to the Combined Authority to seek to secure the £2.2m funding required to enable the delivery of years four and five of that programme of works.

3.2 The Local Growth Fund 1 has an unallocated pot of funding totalling £2.56m. This is due to slippage across the wider Local Growth Fund 1 programme. Major transport schemes funded from the Local Growth Fund 1 programme are governed by the Local Growth Fund1 Assurance Framework and are, therefore, not part of the current Single Investment Fund arrangements. As a consequence, Halton can proceed to submit a funding request to the Combined Authority for years four and five of the Silver Jubilee Bridge maintenance programme as previously agreed by the Combined Authority.

3.3 The original spend profile proposed in the business case was as follows:

Table 1: Silver Jubilee Bridge Original Spend Profile

2016/17 2017/18 2018/19 3 Year 2019/20* 2020/21* 5 Year* Total Total Local Growth £1,068,306 £1,149,035 £1,423,601 £3,640,942 £1,323,079 £884,794 £5,848,815 Fund funding requiLocraedl £95,914 £101,032 £122,754 £319,700 £109,777 £73,639 £503,116 contribution Annual £1,164,220 £1,250,067 £1,546,355 £3,960,642 £1,432,856 £958,433 £6,351,931 Totals

4. STRATEGIC RATIONALE

4.1 At present, Halton Council are two years into the original three year programme, and work is progressing well in terms of undertaking: the planned detailed inspections; testing of structures; and both steelwork and concrete repairs. However, within the first year of the programme, initial works identified the need to investigate further the condition of the protective coating of the steel arch superstructure. The subsequent investigation has since confirmed that a programme of repair works is now required to protect the steel arch superstructure of the bridge.

4.2 It must be noted that while this repair work was not defined within the scope of the original business case, a subsequent review of task prioritisation now indicates that this work is a priority over those originally planned. By undertaking this work on the steel superstructure now, we will secure the ongoing structural integrity of the Silver Jubilee Bridge which is a listed structure, and minimise the need for further maintenance painting of the arch for at least 20 years.

4.3 The Silver Jubilee Bridge closed on the 14 October 2017, on the opening of the new , for planned maintenance over a 12 to 15 month period. Some £4.88m of the investment needed has already been confirmed as a deferred payment from a previously approved Regional Funding Allocation for this Major Scheme and this will allow the maintenance programme for the painting of the steel arch superstructure to commence. However, there is provision within this contract for extending the scope of works planned, if necessary. Importantly, Halton Council has a contractor in place for the delivery of these works to the arch.

4.4 The Silver Jubilee Bridge is a listed Grade II structure which provides a vital crossing over the and is a key structure within the Mersey Gateway complex. This crossing provides a strategically important route into the Liverpool City Region and provides network resilience to the wider North West Strategic Road Network. The Silver Jubilee Bridge is part of Mersey Gateway growth corridor and enables access to many employment and training opportunities within the region (Sci-Tech Daresbury Enterprise Zone, 3MG, Jaguar Land Rover and Liverpool John Lennon Airport). The Silver Jubilee Bridge provides the only cycle and walking access across the Mersey ensuring accessibility to all, especially for those on low incomes. Another strategically important role the Silver Jubilee Bridge plays is to carry a number of regionally important utilities below the deck of the bridge.

4.5 A very timely and cost effective solution now presents itself to carry out the further necessary works to the full arch superstructure, as these can now be delivered under the current bridge closure. Undertaking this work now would realise considerable benefits in that it would prevent the need for further restrictions or closures outside of the current closure period. If work cannot be carried out during this current closure of the Silver Jubilee Bridge, the overall costs of undertaking the arch works at a later date would increase significantly as the necessary traffic management and scaffolding would no longer be in place and would have to be procured and installed for a second time. The travelling public would also be subject to a further period of traffic disruption and diversions. This would have adverse impacts, particularly on public transport users, cyclists and pedestrians as this will be the primary route across the Mersey at this point for sustainable modes of travel.

5. PROPOSALS

5.1 In order to avoid these significant cost increases and further disruption, Halton Council are seeking approval for an additional £2.2 million as identified as being required in the original business case submission. In order to secure these additional works, Halton Council is proposing an approved change control process to secure the necessary funding. Approval is also sought from the Combined Authority to redefine the activities planned for years 4 and 5 of the original business case, to enable a large element of the works for the renewal of the protective system to the superstructure to be completed in a timely fashion.

5.2 The Benefit Cost Ratio that was set out in the original business case was for the first three years. The Benefit Cost Ratio has recalculated for the protective coating of the steel arch superstructure works. The Benefit Cost Ratio calculation is for the total price of £10.178m.

5.3 The financial model has been re-run over a 60 year period to determine the Net Present Value of the arch repainting works, based on the revised Contractor’s price of £10.178m. Allowance has been made for the repainting works to be undertaken every 20 years (expected service life of protective paint systems) so works occur in 2017 (year 1), 2037 (year 21) and 2057 (year 41).

5.4 As advised by Halton’s Silver Jubilee Bridge Project Manager, included in the calculations is a £0.500m risk allowance for the 2017 works with 10% Optimism Bias (as Halton Council do not have certainty on the extent of repair works that may be required if corrosion is more extensive than expected, and inclement weather could significantly affect the programme). For the 2037 and 2057 works, included is the same £0.500m risk allowance and an applied 15% Optimism Bias, with inflation applied accordingly. This gives a Net Present Value of £25.238m.

5.5 The benefits of the works remain unchanged and so the Transport Economic Efficiency benefits value of £102.535m, as used in the previously submitted Challenge Fund application, is still valid.

5.6 This results in a Benefit Cost Ratio calculation as follows:-

= £102.535M/£25.238M: Benefit Cost Ratio = 4.06

5.7 The Benefit Cost Ratio increases not by the increased life of the Silver Jubilee Bridge but by savings in not having to close the Silver Jubilee Bridge again. This saves on the basis that the Silver Jubilee Bridge does not have to be closed in the future and the savings on scaffolding (currently £0.700m a month).

5.8 If funding was not secured or postponed to a later date, the Silver Jubilee Bridge Super structure would continue to deteriorate and undermine the investment in the wider works on the Silver Jubilee Bridge. If the Silver Jubilee Bridge was to be closed for a second time the economic cost to the area would become significant (as highlighted above) with journey times for residents and businesses in the area increasing.

6. RESOURCE IMPLICATIONS

6.1 Financial

6.1.1 The first round of Local Growth Fund schemes (Local Growth Fund 1) has an unallocated pot of funding totalling £2.56m. It is recommended that £2.2m of this funding should be allocated to the delivery of a revised programme of maintenance on the Silver Jubilee Bridge via a change control process. This would allocate £1.2m in 2017/18 and the remainder in 2018/19. A local contribution would be made to this amount of £183,416 (see table in 3.3 above) bringing Halton Council’s total contribution to £407,202.

6.1.2 This funding profile is set out below:

Table 2 – Silver Jubilee Bridge Revised Spend Profile

2017/18 2018/19 Total Existing Local Growth Fund 1 as approved £1,149,035 £1,423,601 £2,572,636 by the Combined Authority, December 2015 Proposed additional Local Growth Fund 1 £1,200,000 £1,000,000 £2,200,000 funding Local contribution £210,809 £196,393 £407,202 Annual Totals £2,559,844 £2,619,994 £5,179,838

6.1.3 The proposals and funding arrangements were considered and endorsed by all members of the Transport Advisory Group at its meeting on 31 October 2017. Transport Advisory Group is satisfied that due process is being followed as a change control and the availability of funds through residual funds in the Devolved Transport Majors Pot allows this variation to be supported.

6.2 Human Resources

No issues.

6.3 Physical Assets

No issues.

6.4 Information Technology

No issues.

7. RISKS AND MITIGATION

7.1 Closure of the Silver Jubilee Bridge for maintenance works could only take place once the new Mersey Gateway Bridge was opened. There is, therefore, interdependency between the two schemes which must be taken into account. A contingency has been included within the risk register that included for any delays in the opening of the new Mersey Gateway Bridge and for weather delays that may impact on the Silver Jubilee Bridge works. As all activities will be programme managed internally at Halton Council this risk can be mitigated.

7.2 There is a risk that without the approval of this proposal that the promoting authority will not be in a position to commence delivery on the additional works during the 12 to 15 month window of opportunity. If work cannot be carried out during the closure of the Silver Jubilee Bridge, then this would significantly increase the costs of undertaking the arch works at a later date as the necessary traffic management and scaffolding would no longer be in place. This will make the total costs for the work significantly higher at a later date.

7.3 If the full arch maintenance scheme is not undertaken, the Silver Jubilee Bridge steel arch would continue to deteriorate and undermine the wider maintenance investment that has already taken place in the structure. Furthermore, if the Silver Jubilee Bridge has to be closed for a second period to deliver the scheme outside of the planned closure, the overall works cost would increase considerably and the economic cost to the area would be significant with journey times for residents and businesses increasing.

8. EQUALITY AND DIVERSITY IMPLICATIONS

8.1 As part of developing a Major Scheme Business Case, scheme promoters must give due consideration to the equality and diversity implications of their scheme and what mitigation measures, if any, will be required to ensure that the implementation of the scheme does not have any negative implications on those who have protected characteristics. No negative implications for those with protected characteristics were identified as part of the Equality Impact Assessment undertaken.

8.2 A positive point to note is that the Silver Jubilee Bridge will be the only walking and cycling route over the River Mersey, and will continue to support local bus routes (some of which would become unviable without the Silver Jubilee Bridge). Investing in the future of the Silver Jubilee Bridge prolongs the lifespan of the bridge and its ability to be a crossing facility for sustainable travel modes.

9. COMMUNICATION ISSUES

9.1 This report has been discussed at the Transport Advisory Group; therefore, all directly involved Liverpool City Region partners will have been involved in agreeing the recommendations put forward in this report.

9.2 This report was further considered by the LEP Board on 30 November 2017. The outcomes of its considerations will be reported verbally at the Combined Authority meeting.

10. CONCLUSION

The Combined Authority is recommended to approve the proposal for £2.2m of Local Growth Fund 1 funding to be allocated to the Silver Jubilee Bridge via a change control to enable works to the steel superstructure for the reasons stated earlier. If agreed this work will be completed during the current and time limited closure of the Silver Jubilee Bridge. Furthermore, permission is sought to accelerate the Sustainable Transport Enhancements Programme for delivery in 2018/19.

FRANK ROGERS Lead Officer: Transport

Contact Officers: Mick Noone, Halton Council (0151 330 1081) Paul Buntin, Merseytravel (0151 330 1167) John Smith, Merseytravel (0151 330 1307)