A report from the Executive Director of Regeneration and Environment will be circulated as soon as possible. This should be read in consultation with Report No.42, agenda part one refers. (Key decision – reference number 4470)
(This document contains exempt information as defined in Paragraph 3 (information relating to the financial or business affairs of any particular person – including the authority holding that information) of Schedule 12A to the Local Government Act 1972, as amended)
(Report No.43)
TO FOLLOW
Minutes:
Councillor Taylor varied the order of the agenda to enable Members to consider this report immediately following their consideration of the part one report, Report No.42, Minute No.7 above refers. The minutes reflect the order of the published agenda. Councillor Georgiou had declared a disclosable pecuniary interest in this report and was not present for the consideration of this item, Minute No.2 above refers.
Councillor Dino Lemonides (Cabinet Member for Finance and Efficiency) introduced the report of the Executive Director of Regeneration and Environment (No.43).
NOTED
1. That Report No.42 also referred as detailed in Minute No.7 above.
2. That the new railway infrastructure was essential for the Meridian Water development. The report set out in detail the requirements of the Meridian Water station and how the cost was to be funded. The Council had worked closely with Network Rail to develop an enhanced station design. The key objectives were (1) the essential connectivity of a 24/7 publicly accessible stairs and lifts over the railway line, (2) clearly raising the design quality of the station to align it with the ambition of Meridian Water and (3) compliant with the requirements of a Crossrail 2 to ensure the development was ready for future rail ambition avoiding expensive changes to the station in the future.
3. Councillor Lemonides outlined in detail the cost of the proposals and the breakdown of the various funding sources, as set out in the report. The cost to be met by the Council was explained to Members.
4. The alternative options considered and key risks were highlighted for Members’ consideration. The potential of future cost recovery and land values were discussed. The information contained in the appendices to the report including opinions on Station Land Values and Assumptions were noted.
5. The potential future public realm maintenance obligations as set out in the report.
6. The significance of the station proposals for the overall Meridian Water development was noted.
7. Councillor Oykener welcomed the proposals and the positive effect that this would have on the ability of the housing development within the Meridian Water project to move forward. Councillor Oykener reiterated that this was a long-term project that would require many difficult decisions. It was noted that there would be a number of changing factors over a significant period of time and, that it would be important to ensure that effective scrutiny was put in place on the progress of the project and, to ensure that Members were kept fully up-to-date on all related issues.
8. Councillors Sitkin and Oykener assured Members that regular open and transparent discussions were proposed with Members, including Scrutiny and Opposition Members. It was noted that there was an aspiration for the Meridian Water Contract Close to come to Cabinet for decision in the near future. Extensive and comprehensive negotiations were continuing to take place.
9. Councillor Taylor requested that a standing part two item be included on all future Cabinet agendas for a Meridian Water Progress Update. This would ensure that Cabinet Members were kept fully appraised of any progress and development on the project as a whole.
10. Councillor Taylor proposed a change to the wording of recommendation 2.3 of the report and an additional recommendation 2.4, as reflected in decisions 3 and 4 below. This was to delegate authority to the Acting Chief Executive, with Councillor Dino Lemonides and Councillor Alan Sitkin, to agree any material changes to the Implementation Agreement, as set out in Appendix 1 of the report, subject to any such amendments first being notified to all of the Cabinet Members prior to the Agreement being finalised.
11. Councillor Taylor recommended (decision 4 below refers) that arrangements were put in place for an informal working group comprising Cabinet Members and officers to be set up to oversee, monitor and ensure compliance with the implementation of the Meridian Water Station contract. It was initially proposed that Councillor Daniel Anderson, Ayfer Orhan and Dino Lemonides join this group with appropriate officers. In moving forward, issues as appropriate would be referred back to Network Rail and the Cabinet as necessary.
12. Councillor Daniel Anderson questioned the text of paragraph 3.1.14 of the report. It was subsequently noted that there was a typographical error in the text which should refer back to recommendation 2.6 of the report, not 2.3 as stated.
13. Councillor Taylor reiterated that any significant changes to the final Implementation Agreement would be circulated to Cabinet Members in advance of the decision being taken.
14. Members noted the alternative options considered as set out in section 5 of the report and the effect on other major projects in the area. Councillor Anderson questioned any potential funding sources from the other projects.
15. The significance of this project was recognised as was the need for effective scrutiny of the progress of the project by both Cabinet and other Members. A discussion took place on the most effective way in which to scrutinise the project in moving forward. Further discussions would be required on the potential options. Councillor Levy stated that an initial meeting of the Overview and Scrutiny Committee was due to take place on 12 October 2017 on the Meridian Water project.
16. Councillor Taylor stated the importance and significance of seeking a final contract with Barratt London, the Master Developer. It was important for Cabinet Members to understand the detail of this very complex agreement and to recognise the risks and challenges that would arise in moving forward. The project was significant and would require on-going evaluation and scrutiny. Peter George (Assistant Director Regeneration and Environment) would provide detailed briefings to Cabinet Members on request.
Alternative Options Considered: NOTED, the detailed alternative options considered as set out in section 5 of the report.
DECISION: The Cabinet agreed to
1. Approve funding, as set out in recommendation 2.1 of the report, to be drawn down from the Neighbourhood Regeneration Capital Programme to deliver the new Rail Infrastructure for Meridian Water and to forward fund a further amount, as set out in recommendation 2.1 of the report, also to be drawn down from the Neighbourhood Regeneration Capital Programme. The second phase of approval reflects the scope increase above the Cabinet key decision number 4029 to deliver the enhanced station design.
2. Authorise entering into an Implementation Agreement (Phase 2) in the form set out in Appendix 1 of the report and authorise expenditure of up to a total, amount set out in recommendation 2.2 of the report, Enfield commitment. This reflected a total station cost of the sum set out in recommendation 2.2 of the report; including the GLA director funding of the amount set out in recommendation 2.2 of the report with Network Rail.
3. Delegate authority to the Acting Chief Executive with Councillor Dino Lemonides (Cabinet Member for Finance and Efficiency) and, Councillor Alan Sitkin (Cabinet Member for Economic Regeneration and Business Development) to agree any material changes to the Implementation Agreement as set out in Appendix 1 of the report, subject to such amendments being notified to all Cabinet Members in advance of the agreement being finalised.
4. Recommend that arrangements be put in place for an informal working group comprising Cabinet Members and officers to be set up to oversee, monitor and ensure compliance with the implementation of the Meridian Water Station contract. This would be comprised of Councillors Lemonides, Orhan and Anderson.
5. Note that any budgetary increase would be subject to further Cabinet authorisation.
6. Noted sections 3.2.8 – 3.2.12 of the report that set out the potential variance between a fixed cost and an emerging cost approach as well as explaining the mechanism being put in place to provide joint governance arrangements to manage any increase in estimated project cost.
7. Delegate authority to the Executive Director of Regeneration and Environment to enter in agreements relating to the maintenance and operation of the station including a financial commitment towards maintenance.
8. Authorise entering into a pre-contract arrangement with Barratt London to develop design and progress towards the submission of reserved matters for the Zone 1 planning application (Planning Services Agreement). The agreement would share or underwrite costs to be incurred with progressing development works (external Barratt costs only) up to a cap as detailed in recommendation 2.7 of the report.
Reason: As detailed in Report No.42, Minute No.7 above refers.
(Key decision – reference number 4470)
Supporting documents: