4. Tramway Extension to North Station

Executive Report

Report to: EXECUTIVE Decision number: Earliest date for 28TH APRIL 2014 decision:

4. TRAMWAY EXTENSION TO NORTH STATION

1.0 Matter for consideration:

1.1 The proposed extension of the Blackpool - Fleetwood Tramway from North Pier / Talbot Square to Blackpool North Railway Station.

2.0 Recommendation(s):

2.1 To approve that the scheme, to extend the Blackpool - Fleetwood Tramway from North Pier / Talbot Square to Blackpool North Railway Station, be pursued as prioritised by the Transport for Lancashire Committee.

2.2 To develop the major scheme business case, adhering to the key principles of the Department for Transport’s (Department for Transport’s) Transport Business Case guidance (2012) and being fully compliant with the approach to appraisal and analysis set out in WebTAG, the Department for Transport’s web-based guidance on the conduct of transport studies. (Please see Transport for Lancashire Draft Assurance Framework)

3.0 Council Priority :

The relevant Council Priority is:

‘Attract sustainable investment and create quality jobs.’

4.0 Information

4.1 Outline of the scheme

Building on the Blackpool - Fleetwood Tramway’s recent refurbishment, the system will be extended to the Blackpool North Railway Station. There it will be integrated with the Talbot Gateway Central Business District retail and office development, improving public transport connectivity dramatically. Seamless interchange between heavy and light rail will be achieved, providing rail-borne access between the railway station with its newly electrified trains and the Fylde Coast’s attractions, settlements and hotels.

4.2 The existing system has been future-proofed for later expansion, stub points for the delta-junctions necessary being fitted at Talbot Square. The Council’s involvement in the European-funded SINTROPHER project has enabled a system design and business plan to be developed. The project’s reference group has selected the extension to North Station as its first delivery option. The scheme would provide tram-rail connectivity in Blackpool and on the Fylde Coast, increasing the refurbished tramway’s economic contribution dramatically.

4.3 The proposal is directly compatible with Network Rail’s North Fylde Line electrification programme, which will bring additional capacity, reduced journey times and superior ride quality to Blackpool North from 2016. Significant modal shift to public transport is likely to assist Blackpool Council, as local highway authority, in managing congestion more effectively and enable rail service promotion to bring fresh visitors to both tourism and conferencing markets. Communities in Blackpool and on the Fylde Coast will benefit from ensuing economic growth, via job creation and improved access to job opportunities.

4.4 Proposed devolved local major scheme funding

In September 2012, the Department for Transport (DfT) committed to devolve funding for local major transport schemes to Local Transport Bodies from 2015/16. The Department for Transport needs to ensure that the devolved system provides appropriate safeguards for the use of public funds and delivers value for money, and has issued guidance to that effect. The Local Transport Body’s Draft Assurance Framework (appended) sets out the processes by which Transport for Lancashire, the area's agreed Local Transport Body, will meet the Department for Transport’s requirements.

4.5 The Transport for Lancashire Committee (the Local Transport Body) approved the prioritised list of schemes (appended) on 1st July 2013. The Tramway Extension to North Station is in the top quartile and therefore in the investment programme from 2015/16. This Blackpool Council scheme is considered a priority for funding in the Lancashire area and was third in the prioritised list of schemes submitted to the DfT at the end of July 2013. It is also included in the Lancashire Strategic Economic Plan ‘A Growth Deal for the Arc of Prosperity’ March 2014.

4.6 Transport for Lancashire will adopt a four stage approval process based on current practice: • Programme Entry • Provisional Approval • Conditional Approval • Full Approval

4.7 Once Transport for Lancashire has granted the scheme Provisional Approval, a formal contract between Transport for Lancashire and Blackpool Council, the scheme promoter, will be signed. This will set out the respective responsibilities for each organisation; their commitment, timescales for delivery, reporting and monitoring requirements. Further information can be found in the Transport for Lancashire Draft Assurance Framework.

4.8 Does the information submitted include any exempt information? NO

5.0 Legal considerations:

5.1 Both an order under the Transport and Works Act 1992 and an application for deemed planning consent under section 90(2A) of the Town and Country Planning Act 1990 will be required. There could be claims made under Part 1 of the Land Compensation Act and the possibility of business disturbance claims under the same act.

6.0 Human Resources and Equalities considerations:

6.1 Staff time will be needed to develop the Transport Business Case, which can be found internally and through necessary specialist consultancy support.

7.0 Financial considerations:

7.1 The bulk of the funding for this Local Major Scheme will come from the Department for Transport, devolved to Transport for Lancashire (the Local Transport Body) – £16.4m. Blackpool Council will have to make a minimum 10% contribution to the capital cost of the scheme – £1.8m out of a total £18.2m. The council will also have to fund the scheme’s development and preparation costs (including design costs – up to £1.3m).

7.2 Local Major Scheme Funding (through Transport for Lancashire) will only contribute towards the scheme’s capital cost. This includes construction, land acquisition (if applicable), movement or protection of services (electricity, gas, water supply/waste, traffic control, telecommunications, etc.) as necessary, fees and Part 1 Claims under the Land Compensation Act 1973 (subject to the receipt of valid claims).

7.3 Transport for Lancashire will not fund scheme development and preparation costs, design, and any post scheme monitoring and evaluation. 7.4 Expenditure for development and preparation costs, including the Transport and Works Act Order, estimated to be £1.6m, would be spread across three financial years commencing in the current year 2014/15. In the first instance, an initial budget of £200,000 to fund appraisal, modelling and consultation work will be required. This can be provided from the Local Transport Plan (LTP) programme as follows:

Financial year LTP contribution 2013/14 £35k 2014/15 £165k

7.5 This will fund the following work packages, preparatory to a full application for the Transport and Works Act Order that is necessary; • Facilitated scheme review workshop • Option derivation and appraisal • Modelling • Adjust options and recommend preferred option • Review operations and proposals • Re-model preferred option • Re-assess Benefit to Cost Ratio • Finalise Business Case • Assist Executive Report preparation • Prepare consultation plan

7.6 The £1.4m balance would be required in 2014/2015 and into the subsequent two financial years. This will contribute to the following: • Stakeholder and public consultation • Prepare and submit Transport and Works Act Order submission • Obtain Full Approval, including possible public inquiry.

7.7 The scheme’s working budget is estimated at £18.2m – comprising cost of works £12.8m, contingency £2.1m and allowance for inflation and risk £3.3m. A minimum 10% local contribution of £1.8m would be required between 2016/17 and 2018/19. The working budget will be subject to review as a final scheme is determined. This will be presented to the Executive with a full cost breakdown when it becomes available.

7.8 Blackpool Council’s contribution, estimated to be up to £4.7m, will be funded from savings in the Built Environment Capital Programme and Local Transport Plan contributions. There is the possibility of additional Growth Deal Funding for an improved transport interchange at North Station / Talbot Gateway, which will be negotiated in the near future. 8.0 Performance management considerations:

8.1 Using the Prince 2 template, a robust project governance system will be set up. A Project Board would oversee the development of a programme, which would include the following steps (and indicative dates): • Prepare full Business Case – six months • Preliminary consultation – four months • Consultation and statutory approval, including Transport and Works Act Order – up to two years, 2015/16 - 2016/17 • Six months construction, starting 2017 • Open by 2018

9.0 Risk management considerations:

9.1 A 20% uplift to reflect risk has been added to the estimated scheme costs.

10.0 Relevant Officer:

10.1 Peter Cross, Head of Transportation

11.0 Relevant Cabinet Member

11.1 Councillor J. Jones, Cabinet Member for Highways, Transport and Equality and Diversity

12.0 Consultation undertaken:

12.1 Consultation has taken place with main stakeholders through the SINTROPHER Reference Group which includes: representatives from Blackpool, Fylde, Wyre and Lancashire councils; Blackpool Transport; Network Rail; Northern Rail; and independent industry experts. The tram extension to Blackpool North was adopted by the reference group as its preferred option and recommended for urgent and immediate development.

12.2 Consultation on the economic effect of the scheme was undertaken between January and March 2012 and involved 23 telephone interviews with local businesses and stakeholders.

12.3 Households in Blackpool received information on the proposed scheme in Your Blackpool (March 2012) and were invited to fill in an online questionnaire or write/email their views to Blackpool Council. It was stressed that the proposals were intended to be integrated within the redevelopment of the town centre and could include some or all of the following: • Improved information and signing • Integrated tram and rail ticketing • Extension of the tramway to Blackpool North on Talbot Road • Direct interchange between tram and rail services

12.4 The consultation drew 49 responses to the online survey and a number of emails/letters giving more detailed views. Respondents were generally in favour of connecting tram services to Blackpool North Station. However, concerns were raised about the disruption during the construction phase and possible increased town centre congestion.

12.5 Further rounds of stakeholder and public consultation during the schemes detailed development will be required.

13.0 Background papers:

13.1 Transport for Lancashire Draft Assurance Framework Transport for Lancashire Prioritised List of Schemes

14.0 Key decision information:

14.1 Is this a key decision? YES

14.2 If so, Forward Plan reference number: 13/2013

14.3 If a key decision, is the decision required in less than five days? NO

15.4 If yes, please describe the reason for urgency:

15.0 Reasons for recommendation(s):

15.1 To progress the proposed extension of the Blackpool - Fleetwood Tramway from North Pier / Talbot Square to Blackpool North Railway Station.

15.2a Is the recommendation contrary to a plan or strategy adopted or NO approved by the Council?

15.2b Is the recommendation in accordance with the Council’s YES approved budget?

15.3 Other alternative options to be considered:

Not to proceed with the scheme. 16.0 Call-in information:

16.1 Are there any grounds for urgency, which would cause this NO decision to be exempt from the call-in process?

16.2 If yes, please give reason:

TO BE COMPLETED BY THE PROPER OFFICER

17.0 Scrutiny Committee Chairman (where appropriate):

Date informed: 16th April 2014 Date approved: N/A

18.0 Declarations of interest (if applicable):

19.0 Executive decision:

20.2 Date:

20.3 Reason(s) for decision:

21.0 Date of publication:

22.0 Call-in:

23.0 Notes: