FORM 2

SHEFFIELD CITY COUNCIL

Officer Decision Report (Non Key)

Report of: David Caulfield, Director of Regeneration and Development Services

Cabinet Portfolio: Environment, Recycling and Streetscene

Date: 10 April 2014

Subject: Proposed Flood and Water Management Capital Investment Programme 2015 to 2021 – Environment Agency Assessment Stage

Author of Report: James Fletcher, Regeneration and Development Services - 35847

Summary:

As Lead Local Flood Authority (LLFA), the City Council is responsible for managing the risk of local flooding within the city. To meet the challenges of this new role, Cabinet approved a Sheffield Flood Risk Management (FRM) Strategy in 2013. This strategy was developed in partnership with the Environment Agency (EA) who retain the regulatory role for the city’s principal rivers.

Recent flood studies predict that there will be in the region of 8,000 properties at significant risk of flooding in Sheffield by 2070 with potential economic damages of over £1 billion.

A key component of Sheffield’s FRM strategy is to maximise capital investment in the city’s flood and drainage infrastructure over the next 7 years. Investment is needed to: a. provide acceptable standards of flood protection both now and in the future; b. renew deteriorating drainage infrastructure; c. deliver Water Framework Directive benefits primarily related to improved water quality.

Government has now invited LLFAs to register schemes on a national capital programme for Flood Defence Grant in Aid (FDGiA) for the period 2015 to 2021 over the coming months. The EA’s National Board plan to finalise the programme in November 2014 following assessment over the Summer and endorsement by the Yorkshire Regional Flood and Coastal Committee (YRFCC) in October 2014. 1

Government has indicated that this proposed 6 year capital programme will have greater stability with increased certainty of funding. This assurance has been given to support capital flood investment planning over this period and to give greater confidence to potential investment partners.

The City Council has drawn up preliminary programme proposals with EA area officers that have now received initial support from the YRFCC. Those proposals will now be assessed by the EA’s national officers in May and June 2014.

The preliminary proposals for the Sheffield Flood and Water Management Capital Programme represent a total investment of £51.64 million with £39.187 million from Government sources and £12.453 million from other partner investors.

Reasons for Recommendations:

To seek to maximise capital investment in the city’s strategic flood and drainage infrastructure in order to provide acceptable standards of flood protection over the next 100 years.

Recommendations:

1. To approve preliminary proposals for the Sheffield Flood and Water Management Capital Programme of Schemes (2015-2021) outlined in section 4 and Appendix A of this report. 2. To approve the forwarding of those proposals for further assessment by the Environment Agency in May and June 2014 as part of a national prioritisation of schemes. 3. To authorise Council officers to identify and open discussions with potential partner investors in the proposed programme of schemes. 4. To place the capital programme on the Council’s Forward Plan for approval by Cabinet in October prior to national finalisation in November 2014.

Background Papers:

Category of Report: OPEN

If Closed add – ‘Not for publication because it contains exempt information under Paragraph of Schedule 12A of the Local Government Act 1972 (as amended).’

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Statutory and Council Policy Checklist

Financial Implications

YES Cleared by: Damian Watkinson, Assistant Finance Manager

Legal Implications

YES Cleared by; Nadine Wynter, Legal Services Manager

Equality of Opportunity Implications NO Cleared by : Ian Oldershaw, Place EIA Advisor

Tackling Health Inequalities Implications

NO

Human rights Implications

NO

Environmental and Sustainability implications

YES

Economic impact

YES

Community safety implications

YES

Human resources implicati ons

YES: Cleared by Lynsey Linton, HR Business Partner

Property implications

NO

Area(s) affected

All

Relevant Cabinet Portfolio Leader

Environment, Recycling and Streetscene

Relevant Scrutiny Committee if decision called in

Economic and Environmental Wellbeing

Is the item a matter which is reserved for approval by the City Council? NO

Press release

NO

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OFFCIER DECISION REPORT: Proposed Sheffield Flood and Water Management Capital Investment Programme 2015-2021

1.0 SUMMARY

1.1 As Lead Local Flood Authority (LLFA), the City Council is responsible for managing the risk of local flooding within the city. To meet the challenges of this new role, Cabinet approved a Sheffield Flood Risk Management (FRM) Strategy in 2013. This strategy was developed in partnership with the Environment Agency (EA) who retain the regulatory role for the city’s principal rivers.

1.2 Recent flood studies predict that there will be in the region of 8,000 properties at significant risk of flooding in Sheffield by 2070 with potential economic damages of over £1 billion.

1.3 A key component of Sheffield’s FRM strategy is to maximise capital investment in the city’s flood and drainage infrastructure over the next 7 years. Investment is needed to: a) provide acceptable standards of flood protection both now and in the future; b) renew deteriorating drainage infrastructure; c) deliver Water Framework Directive benefits primarily related to improved water quality.

1.4 Government has now invited LLFAs to register schemes on a national capital programme for Flood Defence Grant in Aid (FDGiA) for the period 2015 to 2021 over the coming months. The EA’s National Board plan to finalise the programme in November 2014 following assessment over the Summer and endorsement by the Yorkshire Regional Flood and Coastal Committee (YRFCC) in October 2014.

1.5 Government has indicated that this proposed 6 year capital programme will have greater stability with increased certainty of funding. This assurance has been given to support capital flood investment planning over this period and to give greater confidence to potential investment partners.

1.6 The City Council has drawn up preliminary programme proposals with EA area officers that have now received support from the YRFCC. Those proposals will now be assessed by EA’s national officers over Summer 2014.

The preliminary proposals for the Sheffield Flood and Water Management 1.7 Capital Programme represent a total investment of £51.64 million with £39.187 million from Government sources and £12.453 million from other partner investors.

2.0 WHAT DOES THIS MEAN FOR SHEFFIELD PEOPLE

2.1 It is 7 years since widespread floods caused considerable damage and loss of life in Sheffield. Since then the city has experienced a number of smaller floods and narrowly avoided main river flooding in the Summer of 2012. 4

2.2 Recent studies predict that the risk of flooding from Sheffield’s principal rivers and critical watercourses will increase over this century. This increase will be brought about by higher storm flows generated by climate change factors and by new development placing an increasing burden on the city’s drainage infrastructure.

2.3 Sheffield’s flood and water management capital investment programme will aim to provide a higher standard of flood protection of up to 1 in 200 years for 5,000 Sheffield households and 3,000 commercial properties representing an economic value of over £1 billion. Where possible, the investment programme will take the opportunity to manage the pressures on the city’s critical waterways to create more pleasurable and accessible landscapes.

3.0 OUTCOME AND SUSTAINABILITY

3.1 The capital programme is essential to delivering corporate outcomes across the ‘Competitive City’ and ‘A Great Place to Live’ programme boards. The Council’s approach to managing flood risk supports corporate benefits for the city to be environmentally responsible, resilient to climate change and in promoting economic growth and regeneration. Strategic objectives are also to manage storm water using natural sustainable processes thereby creating more desirable homes and sustainable communities that are more resilient to flooding.

3.2 Wider environmental objectives are linked to contributing to the requirements of the Water Framework Directive (2000) to improve water quality and river morphology.

3.3 A strategic environmental assessment (SEA) has been carried out as part of the FRM strategy in consultation with the Environment Agency and Natural England. The SEA concluded that the Council’s approach to managing flood risk is overwhelmingly positive with benefits to human health, biodiversity, water quality and the city’s heritage.

4.0 SHEFFIELD FLOOD AND WATER MANAGEMENT CAPITAL PROGRAMME 2015-2021

4.1 The capital programme consists of the following six capital schemes with preliminary cost values (£million) as shown:

1. Sheffield Lower Don Valley Flood Protection Scheme – £18.544m

2. Sheaf Catchment Flood Alleviation Scheme - £10.974m

3. Sheffield Upper Don Flood Alleviation Scheme - £10.677m

4. Upper Blackburn Brook Flood Alleviation Scheme - £1.810m

5. Sheffield Watercourses – Culvert Renewal Programme £7.313m

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6. Three Brooks Environmental Scheme, Manor, Sheffield - £2.322m

4.2 The Sheffield FRM strategy concludes that the main form of flood risk within the city is from overtopping of principal rivers during storm conditions known as fluvial flooding. Fluvial flood risk zones covering the city’s principal rivers have been developed using the latest hydraulic modelling techniques. The capital investment programme will aim to reduce this risk by providing acceptable standards of protection over the next 100 years taking into account the combined impacts of climate change and further development.

4.3 Sheffield Lower Don Valley Flood Protection Scheme The scheme is well advanced in design and has been approved by Cabinet and the EA’s National Board. Construction is programmed to commence in 2014. The scheme’s benefit area covers the Don Valley from the City Centre to Meadowhall.

4.4 Sheaf Catchment Flood Alleviation Scheme Scheme feasibility studies started in 2014 and are programmed to continue in 2014/2015. The scheme’s benefit area covers: a. the significant flood risk zones from Millhouses Park downstream to the Sheaf/Don confluence at Castlegate. b. The significant flood risk zones from Endcliffe Park downstream to the Sheaf/Porter confluence near the Midland Railway Station.

4.5 Sheffield Upper Don Flood Alleviation Scheme Scheme feasibility studies started in 2013 and are programmed to continue in 2014/2015. The scheme’s benefit area covers the Upper Don Valley catchment in Sheffield including the Rivers Loxley, Rivelin and Little Don.

4.6 Upper Blackburn Brook Flood Alleviation Scheme Scheme feasibility studies are programmed to commence in 2015. The scheme will benefit ‘at risk’ communities in the Chapeltown and districts of the city.

4.7 Sheffield watercourses – culvert renewal programme The capital programme will aim to address the significant risk of flooding from the city’s critical ordinary watercourse culverts built over the last 150 years as the city has developed. The Council has identified 50 critical culvert assets citywide that present a significant risk to 2,000 households and commercial property valued at £60 million. Using evidence obtained from recent surveys and studies, it is believed that parts of this critical drainage infrastructure is structurally defective and is hydraulically under capacity. The likelihood of flooding from these deteriorating assets will increase over the coming years due to structural failure and an increasing hydraulic burden from new development and climate change.

4.8 Three Brooks Environmental Scheme, Manor, Sheffield The scheme will be programmed over the next 6 years to link with the phased redevelopment of social housing in the Manor and Arbourthorne 6

districts of the city. Proposals are to manage surface water from planned development by natural and sustainable methods delivering flood risk and wider environmental benefits.

4.9 Appendix A of this report outlines preliminary levels of Government FDGiA and partnership investment funding for each capital scheme. At this early assessment stage, proposals indicate the total amounts of partnership funding required for each scheme but do not provide a breakdown nor identify the potential sources of those funds.

5.0 LEGAL IMPLICATIONS

5.1 The Council has lead responsibility to manage the risk of local flooding in the city and a legal duty to apply the approved Sheffield FRM strategy. The strategy calls for close partnership working with the Environment Agency to address the risk of flooding. The registration of the capital investment programme with Government will demonstrate the Council’s commitment to work closely with the EA to meet its statutory FRM duties.

5.2 There are no direct legal implications arising from the decision to register the capital programme for future investment as part of Government’s 2015-2021 flood defence investment period. Legal implications arising from specific capital schemes will be dealt with through the Council’s capital approval and reporting process.

6.0 FINANCIAL IMPLICATIONS

6.1 The necessary approvals will be sought in accordance with Financial Regulations in respect of accepting any funds from a third party or assuming the responsibilities of an Accountable Body. Individual capital schemes will be progressed through the capital approval process in line with Finance Regulations.

6.2 The programme will be managed by a proposed Flood and Water Management Group to be located within the Highway Maintenance Division of Regeneration and Development Services (RDS) (refer item 7.1). The Group will be supported by the Capital Delivery Service who will project manage schemes. At present, the Council receives a grant of £221,000 per year to finance its role as LLFA. Contributions from this grant will fund initial programme management and administration costs until fee charging funding streams become available.

6.3 Procurement strategies will be developed in due course in accordance with Council standing orders as each scheme is progressed.

7.0 HUMAN RESOURCE IMPLICATIONS

7.1 As mentioned, the capital programme will be client managed by a proposed expanded Flood and Water Management Group to be located within the Highway Maintenance Division of RDS. In January 2014, Place Leadership Team approved an Achieving Change (AC)/MER proposal to establish the planned Group structure within the Highway Maintenance Service of RDS. 7

The Group will manage the Council’s increasing statutory responsibilities in the flood and water management service area including acting as the client/sponsor for the capital programme. As part of the AC/MER process to establish the Group, officers consulted and reached agreement with representatives from the main trade unions to the proposed structure. The AC/MER is programmed to be implemented following the enactment of Schedule 3 of the Flood and Water Management Act (2010) planned for 2014

8.0 ALTERNATIVE OPTIONS CONSIDERED

8.1 There are no alternative options to the recommendations to approve the further assessment of preliminary proposals.

9.0 EQUALITY OF OPPORTUNITY IMPLICATIONS

9.1 An Equality Impact Assessment has been approved as part of the approvals process for the Sheffield Flood Risk Management Strategy in November 2013.

9.2 In general, the management of flood risk will have a positive effect on all members of the community regardless of age, sex, race, belief, disability and sexual orientation.

10 .0 REASONS FOR RECOMMENDATIONS

10.1 To seek to maximise capital investment in the city’s strategic flood and drainage infrastructure in order to provide acceptable standards of flood protection over the next 100 years.

11 .0 RECOMMENDATIONS

11.1 1. To approve preliminary proposals for the Sheffield Flood and Water Management Capital Programme of Schemes (2015-2021) outlined in section 4 and Appendix A of this report. 2. To approve the forwarding of those proposals for further assessment by the Environment Agency in May and June 2014 as part of a national prioritisation of schemes. 3. To authorise Council officers to identify and open discussions with potential partner investors in the proposed programme of schemes. 4. To place the capital programme on the Council’s Forward Plan for approval by Cabinet in October prior to national finalisation in November 2014.

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Appendix A – Proposed Sheffield Flood and Water Management Capital Programme of Schemes (2015 -2021)

Scheme Preliminary Proposed Funding Allocations £000 Capital (Present Value) Cost £000 (Present Defra Defra YRFCC Partnership Value) FDGiA Growth Levy Funding (see notes below)

1 Sheffield Lower Don Valley Flood Protection Scheme 18,544 12,446 5,500 98 500

2 Sheaf Catchment Flood Alleviation Scheme 10,974 6,942 0 195 3,837

3 Sheffield Upper Don Flood Alleviation Scheme 10,677 6,428 0 242 4,007

4 Upper Blackburn Brook Flood Alleviation Scheme 1,810 1,064 0 48 698

5 Sheffield Watercourses – Culvert Renewal Programme 7,313 5,289 0 0 2,024

6 Three Brooks Environmental Scheme, Manor, Sheffield 2,322 817 0 118 1,387

Totals 51,640 32,986 5,500 701 12,453 1. Potential sources of partnership funding identified include Business Improvement Districts (Sheaf and Upper Don valleys), Flexible Development Fund, Local Growth Fund, SCC Corporate Resource Pool, EU Funds, SCRIF, CIL, Developer funds, LTP, LLFA Grant, WFD funds, Yorkshire Water. 2. At this stage, programme assessment forms indicate the total amounts of partnership funds required but do not provide details nor identify potential sources of those funds.

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