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Team Valley Flood Alleviation Project Strategic Outline Case

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Team Valley Flood Alleviation Project Strategic Outline Case Team Valley Flood Alleviation Project Strategic Outline Case Version No: 1 Date: 6 April 2017 Team Valley Flood Alleviation Scheme Page 1 of 40 FINANCIAL SCHEME OF DELEGATION (FSoD) APPROVALS 1. Project name Team Valley Flood Alleviation Scheme Project ref. Project Code ENVIMNE640128 Start date April 2015 Programme Capital GiA and Local Levy End date March 2021 Hub or Head Environment Agency For FSOD use only Office Area name Northumbria, Durham and Tees FSoD reference F/1718/0172 Function FCRM FSoD Date 2. % time allocated to Role Name Post Title project Project Sponsor Oliver Harmar Deputy Director 2% Project Executive Leila Huntington FCRM Area Manager 5% Project Manager Tina Robinson PSO Advisor 50% 3. Risk Potential Assessment (RPA) Category Low Medium High 4. Delegation FSoD schedule Description National – up to Area – up to A1 Projects (includes FCRM revenue) £5m £5m A2 FCRM capital project within approved strategy £100m WLC Defra £10m A3 FCRM capital project outside of approved strategy £100m WLC Defra £5m A5 Consultancy project £500k £500k T2 Corporate Property Projects /acquisitions £5m £5m 5. FSoD value £k Strategic Outline Case (SOC) FSoD reference £451 Full Business Case (FBC) FSoD reference £8,343 Whole Life Costs (WLC) of Project (if applicable) Financial benefits £288,921 Non-financial benefits Yes 6. N/A Low Medium High Required level of Environmental Impact Assessment (EIA) 7. NPAS/LPRG chair Post title Assurance confirmation Date Phil Foxley Lead Assurer RED AMBER X GREEN 8. FSoD approver(s) name Post title Emailed approval Date Oliver Harmer Area Director See below 5/7/17 9. Latest FSoD authorised cost Form G Form G value (£k) FSoD ref. (£k) 1 2 3 Team Valley Flood Alleviation Scheme Page 2 of 40 10. For FSoD Coordinator use only: From: Harmar, Oliver P Sent: 05 July 2017 08:33 To: Huntington, Leila <leila.huntington@environment‐agency.gov.uk> Cc: National Project Assurance Service <NPAS@environment‐agency.gov.uk> Subject: RE: Assurance complete Team Valley FAS SOC Hi Leila, Thanks for the response and I am happy for the project to proceed. I have copied in NPAS to mmake the aware. Oliver Team Valley Flood Alleviation Scheme Page 3 of 40 Contents EXECUTIVE SUMMARY ............................................................................................................................................. 6 2. THE ECONOMIC CASE ..................................................................................................................................... 16 2.1. INTRODUCTION ........................................................................................................................................... 17 2.2. CRITICAL SUCCESS FACTORS TABLE 2: CRITICAL SUCCESS FACTORS .................................................... 17 2.3. LONG LIST OPTIONS ................................................................................................................................... 18 2.4. SHORT LISTING OF OPTION ......................................................................................................................... 23 2.5. ECONOMIC APPRAISAL ............................................................................................................................... 24 2.6. NON FINANCIAL BENEFITS APPRAISAL ........................................................................................................ 26 2.7. PREFERRED OPTION ................................................................................................................................... 27 3. THE COMMERCIAL CASE ................................................................................................................................. 27 3.1. INTRODUCTION AND PROCUREMENT STRATEGY ........................................................................................ 27 3.2. KEY CONTRACTUAL TERMS & RISK ALLOCATION ........................................................................................ 27 3.3. PROCUREMENT ROUTE AND TIMESCALES................................................................................................... 28 3.4. EFFICIENCIES AND COMMERCIAL ISSUES .................................................................................................... 28 4. THE FINANCIAL CASE ...................................................................................................................................... 28 4.1. FINANCIAL SUMMARY .................................................................................................................................. 28 4.2. FUNDING SOURCES .................................................................................................................................... 29 4.3. IMPACT ON REVENUE AND BALANCE SHEET ................................................................................................ 30 4.4. OVERALL AFFORDABILITY ........................................................................................................................... 30 5. THE MANAGEMENT CASE ................................................................................................................................ 30 5.1. PROJECT MANAGEMENT ............................................................................................................................. 30 5.2. COMMUNICATIONS AND STAKEHOLDER ENGAGEMENT ............................................................................... 34 5.3. CHANGE MANAGEMENT .............................................................................................................................. 34 5.4. BENEFITS REALISATION .............................................................................................................................. 35 5.5. RISK MANAGEMENT .................................................................................................................................... 39 5.6. CONTRACT MANAGEMENT .......................................................................................................................... 39 5.7. ASSURANCE ............................................................................................................................................... 39 5.8. POST PROJECT EVALUATION ...................................................................................................................... 39 5.9. CONTINGENCY PLANS ................................................................................................................................ 39 Tables Table 1 – Main risks Table 2 – Critical success factors Table 3 – Long list of options Table 4 – Option ranking Table 5 – Non FDGiA benefits Table 6 – Preferred option Table 7 – Proposed expenditure Table 8 – FDGiA, partnership funding, Local Levy and ESIF/ERDF for Team Valley Table 9 – Project roles and responsibilities Table 10 – Extract from the Project Appraisal Plan Table 11 – Benefits realisation Table 12 – Key risks Figures Figure 1 – Construction of Team Valley including the culverting of Team Valley Figure 2 – HSBC flooded or the 2nd time in 2012 and Cromwell Tools Figure 3 – Trash screens at Eslington Culvert Figure 4 – Flood risk for Team Valley baseline 1% AEP Team Valley Flood Alleviation Scheme Page 4 of 40 Figure 5 – Team Valley Water Courses Appendices Appendix 1 - Team Valley Flood Alleviation Schemes (Map 1) Appendix 2 – Team Valley Flood Alleviation Schemes (Map 2) Appendix 3 – Team Valley Flood Alleviation Schemes (Map 3) Appendix 4 – Project efficiencies Appendix 5 – PF Calculator Appendix 6 – Communications and Stakeholder Engagement Plan Appendix 7 – Risk Register Appendix 8 – Project Assurance Plan Team Valley Flood Alleviation Scheme Page 5 of 40 Executive Summary The Team Valley Flood Alleviation project will provide protection for a regionally important employment centre and residential homes; 464 properties are risk from a 1%AEP event including 14 residential and 450 non-residential properties. There are over 700 businesses on Team Valley employing over 20,000 people. Gateshead Council as the Lead Local Flood Authority have identified that it is ‘strategically important to protect and enhance Team Valley Industrial Estate … as it continues to be a major economic driver’, Gateshead and Newcastle Core Strategy 3. This Strategic Outline Case has been written to set out the case for additional resources to be made available for further development of the Team Valley Flood Alleviation Project. The original Form A for £90k was authorised by the Area Flood & Coastal Risk Manager (AFCRM) for Northumbria, Durham and Tees on the 5 November 2014. Following this Capita were appointed to develop the economic case and the PAR for Team Valley. Their scope of work included: Identification and assessment of a shortlist of options to reduce flood risk to Team Valley; Review of previous feasibility reports avoiding a duplication of work where possible; Consideration of a flood warning system for Team Valley; Assessment of the opportunity to boost economic development and examine the negative impact of previous flood events; and Evaluation of options providing multiple benefits of options, assessing their contribution to WFD outcomes, the provision of green infrastructure and access to local nature reserves, tourism and heritage. Capita have successfully identified a series of schemes that could be implemented across the catchment. These projects provide multiple benefits from a flood alleviation and environmental perspective. However, the overall
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