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Community Infrastructure Fund Cif 2 Postwick Hub Full Community Infrastructure Funding CIF 2 Postwick Hub Full Business Case COMMUNITY INFRASTRUCTURE FUND CIF 2 POSTWICK HUB FULL BUSINESS CASE NORFOLK COUNTY COUNCIL OCTOBER 2008 CONTENTS Project Summary Information 1 Overview 1 Project Plan 2 Promoter Information 3 NATA Appraisal Summary Table 5 1 Scheme Description 1-1 1.1 Background 1-2 1.2 Postwick Hub - Preferred Scheme 1-3 2 Strategic Case 2-1 2.1 Background information 2-1 2.2 Scheme objectives 2-8 2.3 Scheme history and development 2-9 2.4 Strategic Fit 2-12 3 Value for Money Case 3-1 3.1 Introduction 3-1 3.2 Capital Costs 3-1 3.3 Operating Costs 3-3 3.4 Cost Benefit Analysis 3-4 3.5 New Approach to Appraisal Assessment 3-1 3.6 NATA Supporting Analyses 3-30 4 Delivery Case 4-34 4.1 Strategic Project Governance 4-34 4.2 Project Delivery and Staffing 4-37 4.3 Project Programme 4-39 4.4 Park & Ride 4-40 4.5 Risk Management 4-41 4.6 Stakeholder and Community Engagement 4-41 5 Commercial Case 5-1 5.1 Preferred procurement route 5-1 5.2 Risk share 5-5 5.3 Contract monitoring 5-6 i 5.4 Council’s experience 5-6 6 Financial Case 6-1 6.1 Detailed cost breakdowns 6-1 6.2 Independent verification of costs 6-4 6.3 Inflation 6-4 6.4 Quantified Risk Assessment 6-5 6.5 Optimism Bias 6-5 6.6 Funding 6-5 6.7 Summary of Funding Package 6-6 6.8 Revenue Funding 6-6 LIST OF APPENDICES Appendix 1A Figure 1.1 Appendix 2A Figure 2.1 Appendix 3A Modelling Appendix 3B Environment Worksheets Appendix 3C Safety Worksheets Appendix 3D Economy Worksheets Appendix 3E Accessibility Worksheets Appendix 3F Integration Worksheets Appendix 3G Appraisal Summary Table Appendix 3H Distribution and Equity Appendix 4A Summary of Senior Responsible Officer's Experience Appendix 4B Programme for Scheme Delivery Appendix 4C Risk Registers Appendix 4D Letters of support Appendix 4E Timetable of communication with statutory bodies Appendix 6A Growth Point Funding Announcement ii Community Infrastructure Funding CIF 2 Postwick Hub Full Business Case Project Summary Information Overview Project Title Postwick Hub Major Scheme Location Map The project location is just to the north of the A47 dual carriageway on the east perimeter of Norwich. Summary Description The proposed Postwick Hub Scheme comprises an improvement to the A47/A1042 trunk road junction together with a 500 space extension to the Postwick Park & Ride site. It is located in the district of Broadland to the east of Norwich. S1 Project Summary Information Community Infrastructure Funding CIF 2 Postwick Hub Full Business Case Scheme Objectives • Improve the operation of this overcapacity trunk road junction • Remove a Highways Agency “Article 14 Direction of Refusal” for allocated employment development at Broadland Business Park • Release land to the north of Dussindale Park for 600 new houses • To provide additional jobs at Broadland Business Park and support the continued success of the Norwich economy • To co-locate housing and jobs to encourage sustainable commuting • Remove substantial numbers of car trips into Norwich city centre by providing 500 extra spaces at the Postwick Park & Ride Total Bid for CIF Funding The total bid for CIF funding including allowance for risk and inflation up to implementation, but excluding optimism bias, is £21million. Quarterly payments are anticipated in line with the expenditure profile below. Project Plan Programme The planning and design phase of the project commenced in May 2008. Design work will continue following the submission of the Full Business Case to ensure that the scheme can be delivered as planned in the event that the bid is successful. The construction phase of the project is programmed to commence in October 2009 and for completion in March 2011. Please see section 4 of this document for details. Project governance The project is governed by a Project Board including senior representatives of Norfolk County Council. Section 4 of this document provides full details of project governance arrangements. Planning process The successful delivery of this project is reliant on receiving planning approval in May 2009. Key milestones Payments are anticipated on a quarterly basis commencing at the end of the first quarter after construction. S2 Project Summary Information Community Infrastructure Funding CIF 2 Postwick Hub Full Business Case Expenditure Profile Quarterly Spend Profile Postwick Junction Cost element Preliminaries Site clearance Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 PRELIMINARIES £446,534.14 £446,534.14 £446,534.14 £446,534.14 £446,534.14 £446,534.14 SITE CLEARANCE £38,430.38 FENCING £23,726.25 £23,726.25 SAFETY FENCING £12,817.53 £12,817.53 DRAINAGE £270,697.04 £270,697.04 £270,697.04 EARTHWORKS £54,618.94 £54,618.94 £54,618.94 £54,618.94 PAVEMENTS £768,680.25 £768,680.25 KERBS AND FOOTWAYS £35,582.05 £35,582.05 TRAFFIC SIGNS AND ROAD MARKINGS £255,499.75 £255,499.75 LIGHTING £100,770.00 £100,770.00 STRUCTURES £1,884,000.00 £1,884,000.00 £1,884,000.00 LANDSCAPING £5,137.12 £5,137.12 £5,137.12 ACCOMMODATION WORKS £146,975.95 £146,975.95 £146,975.95 STATUTORY SERVICES * £606,229.48 £606,229.48 QRA £652,362.25 £652,362.25 £652,362.25 £652,362.25 ECI FEE £204,178.22 £204,178.22 £204,178.22 £204,178.22 £204,178.22 £204,178.22 LAND £440,000.00 £2,651,487.93 £3,219,287.02 £4,118,620.07 £2,989,183.90 £2,899,234.29 £1,859,857.00 £2,770,804.88 £3,364,154.94 £4,497,636.08 £3,264,263.55 £3,166,036.33 £2,031,010.34 Park and ride site £1,000,000.00 £1,000,000.00 Total CIF Bid £3,770,804.88 £4,364,154.94 £4,497,636.08 £3,264,263.55 £3,166,036.33 £2,031,010.34 Rounded Quarterly submission figures £3,750,000.00 £4,350,000.00 £4,500,000.00 £3,200,000.00 £3,200,000.00 £2,000,000.00 Promoter Information Legal structure for delivery The scheme is promoted by Norfolk County Council. The Park and Ride element of the scheme will be delivered by Norfolk County Council’s Planning and Transportation Strategic Partnership with Mott MacDonald and May Gurney under the existing contractual arrangements. The junction improvements will be delivered by the contractor appointed to construct the Northern Distributor Road, the tenders for which are currently under review. S3 Project Summary Information Community Infrastructure Funding CIF 2 Postwick Hub Full Business Case Partners’ involvement Partner Role and Relationship with Responsibilities other partners Norfolk County Council Local transport authority. Local Strategic Senior responsible Partnership Contractual owner for project. relationships with Mott MacDonald and May Gurney. Mott MacDonald Professional services Contractual partnership strategic partner. Input relationship with Norfolk to scheme appraisal, County Council design and contract administration. May Gurney Works strategic partner. Contractual partnership Input to design through relationship with Norfolk ECI. Cost estimation, County Council construction planning, construction of scheme. Breakdown of total funding Funding source Postwick Park & Ride TOTAL Junction CIF £19,000,000 £2,000,000 £21,000,000 Norwich Growth Point £3,489,672 £3,489,672 NCC £623,724 £623,724 TOTAL £19,623724 £5,489,672 £25,113,396 Interests in major assets to be acquired or enhanced under the project Completion of the proposed scheme will further enhance the existing Park & Ride site S4 Project Summary Information Community Infrastructure Funding CIF 2 Postwick Hub Full Business Case Risks The County Council recognises the importance of the project and the fact that some of the risks have potential to impact Norfolk County Council at a corporate level. Norfolk County Council procedures are followed to recognise projects that have such potential and monitor risks at Corporate and Departmental level. The risks managed at Departmental level are monitored on a monthly basis and scored as either: R - poor progress needs escalation, B - some progress needs some review, or G - good progress/ on schedule. If a risk is 'scored' as R then it needs to be escalated to the Corporate level. The allocation of risk, is based on the principle that risk is placed with the party best placed to manage or mitigate that risk should it transpire. NCC has drawn up a detailed risk register for both components for the CIF project, which can be found in Appendix 4C. In the case of the Park & Ride scheme, our strategic partners, who will be responsible for design and delivery, have been fully involved in the preparation of the risk register, with responsibilities designated accordingly. For Postwick Junction, NCC has developed its own quantified risk register, but following appointment, the preferred contractor will become part of the team and work with NCC to update and maintain the quantified risk register. Decisions will then be made on the risk share mechanism between the contractor and NCC to ensure that the proposed allocation provides value for money to the Council. Stakeholder Analysis The County Council recognises the necessity for successful interaction with the wide range of stakeholders and the involvement of the surrounding community throughout the before and throughout project implementation. Section 4.6 of this document identifies various stakeholder interests, highlights consultation already undertaken and future engagement plans. NATA Appraisal Summary Table The NATA Appraisal Summary Table can be viewed in Appendix 3G.
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