Report to the Chief Officer (Highways and Transportation)Date: 21 July 2015Subject: Kirkstall Forge Change to Essential Infrastructure Works ContractCapital Scheme Number:32336Are specific electoral Wards affected?Yes NoIf relevant, name(s) of Ward(s): Kirkstall, Horsforth, Barmley and StanningleyAre there implications for equality and diversity and cohesion and integration?Yes NoIs the decision eligible for Call-In? Yes NoDoes the report contain confidential or exempt information? Yes NoIf relevant, Access to Information Procedure Rule number:Appendix number:Summary of main issues 1 FollowingpreviousapprovaltovarytheexistingKirkstallForgeEssential InfrastructureWorksContract,inordertoincludeadditionalworkstothe proposedriversideretainingwall,thisreportseeksapprovaltoinject678,000 into the Councils capital programme which will be fully funded by the Developer. Recommendations2The Chief Officer (Highways and Transportation) is requested to:i) note the contents of this report; ii) note the cost of the additional works as 678,000 which are to be fully funded by the Developer from a separately held account.iii) authorise the injection of 678,000 into the Councils capital programme, fully funded by the Developer.iv) give authority to incur expenditure of 678,000 in delivering these additional works, fully funded by the Developer.Agenda Item:Report author:Paul RussellTel: 0113 24761711 Purpose of this report1.1 Thisreportseeksauthoritytoinject678,000intothecapitalprogrammeandto incurexpenditureof678,000inordertoundertakethepreviouslyapproved variationofthecurrentKirkstallForgeEssentialInfrastructureContracttoinclude some additional works requested by, and fully funded by the Developer.2 Background information2.1 Kirkstall Forge is a brownfield site located 3 miles Northwest of Leeds City Centre offoftheA65AbbeyRoad.Thesitehasaheavyindustrialhistorybutwitha riversidesettingithasplanningapprovaltoberedevelopedwithamasterplanto constructaround1,000newhomesamongstnumerouscommercial,retailand leisure developments over the wider course of the scheme.2.2 A key element on the masterplan is the introduction of a new railway station.This iscurrentlybeingconstructedbytheWestYorkshireCombinedAuthorityin conjunctionwiththeDeveloperandwithgrantassistancefromDfT. Thiswas subject to a separate planning approval.2.3 Aplanningconditionontherailwaystationisthattheessentialinfrastructure linking the station to the public highway, i.e. a road and footpath from the A65, be constructed for when the station is opened.2.4 Inordertofacilitatethenewrailwaystationopeningin2015,theCouncils ExecutiveBoardagreedtolendtheDeveloper9.993mtodelivertheessential infrastructureworks. Thetermsoftheloanarecoveredinalegalfunding agreement between the Developer and The Council.2.5 TheCouncilhassoughttendersfortheessentialinfrastructureworkanda ContractorwasappointedinAugust2014withworkscommencingonsitein October 2014. 2.6 Workstoboththenewrailwaystationandtheessentialinfrastructureworksare bothprogressingwellwiththeanticipatedopeningofthestationinDecember 2015.3 Main issues3.1 Aspartoftheessentialinfrastructureworks,newretainingwallsaretobe constructedalongsidetheRiverAire. Theseconsistofreinforcedearthslopes with reinforced earth block walls on top.Due to flood risk, the general topography of the site, the headroom (waterboard) requirement for the new bridge, the top of the proposed retaining walls is 10m above the river level in some areas.3.2 TheDeveloper,onreviewingtheproposalsforthewalls,commissionedhis landscapearchitecttodevelopideastobreakupthelargeexpanseofwall alongsidetheriverwhichwasconsideredtobeunsightlyinthisprestigious development.3.3 ThelandscapearchitectproducedanumberofoptionsandtheDeveloper decided on the viewing platforms which have been titled the Lounge and Ledge.Thesearecantileverstructureswhichsitapproximatelyhalfwayupthewall oversailing the river.3.4 Theseworksclearlysitoutsidetheworksinformationcontainedinthecurrent contractbutinordertoimplementtheproposals,themainsteelcantilever memberswillneedtobeinstalledduringtheconstructionofthereinforcedearth retaining walls.3.5 Theonlyfeasiblewayofdoingthisisforthesteelworktobeprocuredand installed as part of the essential infrastructure works contract.3.6 The Developer will fully fund the additional work and the funds will be lodged in an Escrow account from which the Council can draw down.3.7 A supplementary agreement, to the main essential infrastructure works agreement hasbeensignedbutinordertodrawdownontheEscrowaccount,aninjection into the Capital programme to the value of the approved variation is required.3.8 In a similar manner to the reinforced river walls and earthworks, the Lounge and Ledgestructureswillnotbeadoptedandfuturemaintenancewillbethe responsibility of the Developer.4 Corporate Considerations4.1 Consultation and Engagement 4.1.1 ConsultationhastakenplacewiththeCouncilsLegalServicesandFinancial Managementofficerswhoaresatisfiedwiththesupplementaryagreementand proposed funding arrangement whereby the Developer lodges the money up front in a holding account for the Council to draw down on.4.1.2 TheDeveloperhasalsoconsultedwiththePlanningDepartmentoverthe proposed Lounge and Ledge and planning approval has been granted.4.2 Equality and Diversity / Cohesion and Integration4.2.1 Asthisreportcoversthefinancialimplicationsofanearlierdecision,nofurther screening documentation has been undertaken4.3 Council policies and City Priorities4.3.1 Theproposalscontainedinthereporthavenoimplicationsforthecouncil constitution, policies or priorities.4.4 Resources and value for money 4.4.1 Costs for the scheme are as follows:Works 678,0004.4.2 ThefundingforthisschemewillbemetfromaseparateEscrowaccountwhere thefullamountoftheworks(plusa5%contingency)willbelodgedbythe DeveloperfromwhichtheCouncilcandrawdownthecosts. Provisionhasalso beenmadeinthesupplementaryagreementfortheDevelopertoaddadditional funds if required4.4.3 Capital Funding and Cashflow :Funding Approval :Capital Section Reference Number :-Previous total AuthorityTOTAL TO MARCHto Spend on this scheme2015 2015/16 2016/17 2017/18 2018/19 2019 on000's 000's 000's 000's 000's 000's 000'sLAND (1) 0.0CONSTRUCTION (3) 0.0FURN & EQPT (5) 0.0DESIGN FEES (6) 0.0OTHER COSTS (7) 0.0TOTALS 0.0 0.0 0.0 0.0 0.0 0.0 0.0Authority to SpendTOTAL TO MARCHrequired for this Approval 2015 2015/16 2016/17 2017/18 2018/19 2019 on000's 000's 000's 000's 000's 000's 000'sLAND (1) 0.0CONSTRUCTION (3) 678.0 678.0FURN & EQPT (5) 0.0DESIGN FEES (6) 0.0OTHER COSTS (7) 0.0TOTALS 678.0 0.0 678.0 0.0 0.0 0.0 0.0Total overall Funding TOTAL TO MARCH(As per latest Capital 2015 2015/16 2016/17 2017/18 2018/19 2019 onProgramme) 000's 000's 000's 000's 000's 000's 000'sLCC Supported Borrowing 0.0Revenue Contribution 0.0Capital Receipt 0.0Insurance Receipt 0.0Lottery 0.0Gif ts / Bequests / Trusts 0.0European Grant 0.0Health Authority 0.0School Fundraising 0.0Private Sector 678.0 678.0Section 106 / 2780.0Government Grant 0.0SCE ( C ) 0.0SCE ( R ) 0.0Departmental USB 0.0Corporate USB 0.0Any Other Income ( Specif y) 0.0Total Funding 678.0 0.0 678.0 0.0 0.0 0.0 0.0Balance / Shortfall = 0.0 0.0 0.0 0.0 0.0 0.0 0.0FORECASTFORECASTFORECAST4.5 Legal Implications, Access to Information and Call In4.5.1 The decision requested in this report is an administrative decision for varying the contract. TheCouncilsliabilityforcapitalexpenditureremainsthesameasthe additionalworkisfundeddirectlybytheDeveloperfromaseparatefunding account.4.6 Risk Management4.6.1 Themainriskisanypotentialdelaytothemaininfrastructurecontract. The Contractorisconfidentthattheadditionalworkscanbeincorporatedintothe current programme.4.6.2 TheContractorhasprovidedafixedcostquotationfortheadditionalworkand with this takes on any additional risk on cost and programme.4.6.3 The Developer is committed to the financial cost of the Lounge and Ledge through theseparateEscrowaccountandisboundbythetermsofthesupplementary agreement.Mechanisms for additional funding, if required, are in place 5 Conclusions5.1 ThereisanopportunitytosignificantlyenhancetheKirkstallForgeDevelopment byintroducingthehighqualitypublicspaceoverlookingtheRiverAire. The LoungeandLedgeplatformswouldbeiconicarchitecturalfeaturesandshould help to promote the redevelopment of the site.5.2 ThemainsteelworkrequiredfortheLoungeandLedgecanonlybeinstalled during the construction of the reinforced earth retaining walls and the only logical way is for this to be done is by varying the current contract.6 Recommendations6.1 The Chief Officer (Highways and Transportation) is requested to:i) note the contents of this report; ii) note the cost of the additional works as 678,000 which are to be fully funded by the Developer from a separately held account.iii) authorise the injection of 678,000 into the Councils capital programme to be fully funded by the Developer.iv) give authority to incur expenditure of 678,000 in delivering these additional works, fully funded by the Developer.7 Background documents1 7.1 None 1 The background documents listed in this section are available to download from the Councils website, unless they contain confidential or exempt information.The list of background documents does not include published works.U:HWT/Admin/Wordproc/Comm/2015/Kirkstall Forge Changes.docFig 1 Lounge and LedgeLounge SteelworkLedge Steelwork