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Thames Valley Park Park and Ride Full Business Case REPORT NO 1 THAMES VALLEY PARK PARK AND RIDE FULL BUSINESS CASE JULY 2017 THAMES VALLEY PARK PARK AND RIDE FULL BUSINESS CASE Wokingham Borough Council Transport Business Case Project no: 70012699 Date: July 2017 – WSP | Parsons Brinckerhoff Mountbatten House Basing View Basingstoke RG21 4HJ Tel: +44 (0) 1256 318 800 Fax: +44 (0) 1256 318 700 www.wspgroup.com www.pbworld.com QUALITY MANAGEMENT ISSUE/REVISION FIRST ISSUE REVISION 1 REVISION 2 REVISION 3 Remarks Issue Second Draft Third Draft Fourth Draft Date November 2016 January 2017 March 2017 July 2017 Prepared by Ben Amey Eve Shaw Eve Shaw Eve Shaw Signature Checked by Tom Beck Tom Beck Tom Beck Tom Beck Signature Authorised by Stephen Reed Stephen Reed Stephen Reed Stephen Reed Signature Project number 70012699 70012699 70012699 70012699 Report number 1 File reference ii PRODUCTION TEAM CLIENT Wokingham Borough Council Matthew Gould WSP GLOBAL INC. (WSP) Assistant Engineer Eve Shaw Associate Tom Beck Technical Director Stephen Reed Thames Valley Park Park and Ride WSP | Parsons Brinckerhoff Wokingham Borough Council Project No 70012699 July 2017 iii TABLE OF CONTENTS 1 PROJECT BACKGROUND ..........................................................1 1.1 INTRODUCTION ............................................................................................. 1 1.2 EXISTING SITUATION ON A4 LONDON ROAD CORRIDOR ......................... 1 1.3 SCHEME PROPOSALS .................................................................................. 2 1.4 KEY AIMS AND OBJECTIVES ....................................................................... 3 1.5 BACKGROUND TO BUSINESS CASE ........................................................... 3 1.6 BACKGROUND OF SUPPORT ...................................................................... 3 1.7 STRUCTURE OF REPORT ............................................................................. 5 2 STRATEGIC CASE ......................................................................6 2.1 AREA DESCRIPTION ..................................................................................... 6 2.2 SOCIO-ECONOMIC CHARACTERISTICS OF STUDY AREA ........................ 6 2.3 POLICY CONTEXT FOR SCHEME DELIVERY .............................................. 6 2.4 PROBLEMS IDENTIFIED AND OBJECTIVES ................................................ 9 2.5 THE IMPACT OF NOT CHANGING .............................................................. 11 2.6 MEASURES OF SUCCESS .......................................................................... 11 2.7 SCOPE ......................................................................................................... 11 2.8 CONSTRAINTS ............................................................................................ 12 2.9 INTER-DEPENDENCIES .............................................................................. 12 2.10 OPTIONS APPRAISAL ................................................................................. 13 3 ECONOMIC CASE .....................................................................14 3.1 INTRODUCTION ........................................................................................... 14 3.2 OPTIONS APPRAISED................................................................................. 14 3.3 COMMUNITY ENGAGEMENT ...................................................................... 17 3.4 ASSUMPTIONS ............................................................................................ 17 3.5 APPRAISAL SUMMARY TABLE .................................................................. 18 Thames Valley Park Park and Ride WSP | Parsons Brinckerhoff Wokingham Borough Council Project No 70012699 July 2017 iv 3.6 VALUE FOR MONEY STATEMENT ............................................................. 18 3.7 ASSESSMENT OF SOCIAL AND DISTRIBUTIONAL IMPACTS .................. 20 3.8 MONETISED COSTS AND BENEFITS ......................................................... 27 4 FINANCIAL CASE ......................................................................29 4.1 INTRODUCTION ........................................................................................... 29 4.2 COST ESTIMATES ....................................................................................... 29 4.3 ANTICIPATED SPEND PROFILE ................................................................. 30 4.4 FUNDING PACKAGE ................................................................................... 31 5 COMMERCIAL CASE ................................................................32 5.1 INTRODUCTION ........................................................................................... 32 5.2 OUTPUT BASED SPECIFICATION .............................................................. 32 5.3 PROCUREMENT STRATEGY ...................................................................... 33 5.4 SOURCING OPTIONS .................................................................................. 33 5.5 PAYMENT MECHANISMS, PRICING FRAMEWORK AND CHARGING MECHANISMS .............................................................................................. 33 5.6 RISK ALLOCATION AND TRANSFER ......................................................... 33 5.7 CONTRACT LENGTH AND CONTRACT MANAGEMENT ........................... 36 6 MANAGEMENT CASE ...............................................................37 6.1 INTRODUCTION ........................................................................................... 37 6.2 EVIDENCE OF SIMILAR PROJECTS ........................................................... 37 6.3 PROGRAMME AND PROJECT DEPENDENCIES ........................................ 38 6.4 GOVERNANCE, ORGANISATIONAL STRUCTURE AND ROLES ............... 39 6.5 ASSURANCE AND APPROVALS PLAN ...................................................... 39 6.6 COMMUNICATIONS AND STAKEHOLDER MANAGEMENT ....................... 39 6.7 PROGRAMME / PROJECT REPORTING ..................................................... 40 6.8 KEY ISSUES FOR IMPLEMENTATION ........................................................ 40 6.9 CONTRACT MANAGEMENT ........................................................................ 40 6.10 RISK MANAGEMENT STRATEGY ............................................................... 41 Thames Valley Park Park and Ride WSP | Parsons Brinckerhoff Wokingham Borough Council Project No 70012699 July 2017 v 6.11 BENEFITS REALISATION PLAN ................................................................. 42 6.12 MONITORING AND EVALUATION ............................................................... 42 6.13 CONTINGENCY PLAN ................................................................................. 43 7 CONCLUSIONS ..........................................................................44 Thames Valley Park Park and Ride WSP | Parsons Brinckerhoff Wokingham Borough Council Project No 70012699 July 2017 vi TABLES TABLE 1-1: FREQUENCY OF SERVICES ......................................................................... 2 TABLE 2-1: CHALLENGES FOR WOKINGHAM BOROUGH IDENTIFIED IN WOKINGHAM’S LTP3 ....................................................................... 9 TABLE 3-1: KEY APPRAISAL ASSUMPTIONS ................................................................ 17 TABLE 3-2: SUMMARY OF LINK ASSUMPTIONS ........................................................... 21 TABLE 4-1: BREAKDOWN OF COSTS ............................................................................ 29 TABLE 4-2: QUANTIFIED COST ESTIMATE (£M, OUTTURN) ........................................ 31 TABLE 4-3: FUNDING PACKAGE (£M)............................................................................ 31 TABLE 5-1: KEY PROJECT RISKS .................................................................................. 35 TABLE 6-1: TVP PARK AND RIDE INDICATIVE PROJECT PLAN ................................... 38 FIGURES FIGURE 2 -1: SITE LOCATION IN THE CONTEXT OF THE LOCAL HIGHWAY NETWORK...................................................................................... 10 FIGURE 2-2: TVP SHUTTLE BUS ROUTE ...................................................................... 13 FIGURE 3-1: LOGIT MODEL PARAMETERS .................................................................. 15 FIGURE 3-2: LOCATION PLAN OF POINTS ASSESSED FOR SEVERANCE APPRAISAL .................................................................................... 24 FIGURE 3-3: DISTRIBUTIONAL IMPACT ASSESSMENT AIR QUALITY AND NOISE ..... 26 APPENDICES APPENDIX A SCHEME LAYOUT APPENDIX B LOGIT MODEL AND MEC CALCULATIONS APPENDIX C APPRAISAL SUMMARY TABLE APPENDIX D WORKSHEETS APPENDIX E QUANTIFIED RISK ASSESSMENT Thames Valley Park Park and Ride WSP | Parsons Brinckerhoff Wokingham Borough Council Project No 70012699 July 2017 1 1 PROJECT BACKGROUND 1.1 INTRODUCTION WSP | Parsons Brinkerhoff has been appointed by Wokingham Borough Council (WBC) to provide transport consultancy services to support a planning application submission and the preparation of a transport business case for funding towards a new Park and Ride at Thames Valley Park (TVP). This business case has been produced to support WBC’s application for transport major scheme funding from the Thames Valley Berkshire Local Enterprise Partnership (TVB LEP). The TVB LEP believes in ‘collaborative momentum by bringing together business, unitary authorities, education and the community sector to drive the local economy to new levels of growth.’ The Park and Ride is therefore
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