Issue - meetings

A recorded vote was requested in respect of the motion to approve the budget and funding strategy for the Ash Road Bridge project, which was supported by four other councillors in accordance with Council Procedure Rule 19 (d).

The Council considered an update report on progress with the Ash Road Bridge Scheme, which included a reappraisal of the budget and funding in respect of the project.  Councillors noted that the project comprised a long-term infrastructure solution to the current and future issues posed by the Ash level crossing, including increased usage associated with housing growth in the Ash and Tongham area and greater barrier downtime resulting from enhanced rail use of the North Downs Line.

The Scheme was being delivered in two Stages. Stage 1 was the delivery of the road bridge over the railway line (and closure of the level crossing to motorised vehicles), and Stage 2 the delivery of the footbridge in the vicinity of Ash level crossing, to enable Ash level crossing to be closed permanently to all users.

The Council had approved the Scheme in April 2021, with a budget of £33.8 million for Stage 1 (road bridge) and £5.02 million for Stage 2 (footbridge) and funding from Homes England of £23.9 million.  Due to challenging economic and market conditions the budget for Stage 1 (road bridge) had increased. Although, the Ash Road Bridge would bring substantial improvements to the local community and economy, the Executive was concerned about how the ongoing annual costs would be met. In noting the progress of this project since it was initially commissioned in 2015 and the benefits it would bring, the Executive had requested that further discussions be held with Surrey County Council as the transport and highways authority, Network Rail and Homes England on the ongoing impact of the costs of the bridge to local public services.

The report had set out, in the exempt appendices, the new budget and funding strategy for Stage 1 (road bridge) of the Scheme. The report noted that the final details of this could be subject to change following ongoing evaluation of the tenders received from the contractors in late January 2023 and their final offer in March 2023, including the impact on the Medium-Term Financial Plan.  The report had also set out the funding strategy for Stage 2 of the Scheme (the footbridge).

The Council was informed that the approved budget for the Scheme was £38.91 million, being £33.89 million for the road bridge (Stage 1) and £5.02 million for the footbridge (Stage 2) (excluding borrowing costs.) The road bridge budget was slightly higher than that which had been approved by the Council in April 2021 (£38.79million) as the budget had subsequently combined with a separate approved budget for land acquisition costs for the Ash Road Bridge Scheme equivalent to £0.12 million. The revised budget was £44.5 million, being £44.0 million for the road bridge and £0.5 million for the footbridge (excluding borrowing costs.) The increase to the budget  ...  view the full minutes text for item 143

Decision:

1.     To recommend that Full Council (at its extraordinary meeting on 16 March 2023) approves the budget and funding strategy as set out in Exempt Appendices 2 and 3 to the report, subject to the revisions to Appendix 3 as set out in the exempt Appendix 1 to the Supplementary Information Sheet circulated at this meeting.

2.     To approve the transfer of the sum referred to in Paragraph 1 (Recommendations (Budget)) of the Exempt Appendix 2 to the report.

3.     To delegate to the Strategic Director for Place, in consultation with the Lead Councillor for Regeneration, and Lead Councillor for Finance and Planning Policy, authority to enter into such other contracts and legal agreements connected with the Ash Road Bridge Scheme as may be necessary in compliance with Procurement Procedure Rules and within the approved budget.

Reason(s):

This is a unique opportunity to utilise £23.9 million of central government funding towards the Ash Road Bridge Scheme to deliver an alternative road crossing of the North Downs railway line in close proximity to the Ash level crossing.  The Ash Road Bridge Scheme forms a requirement of Policy A31 of the Council's Local Plan which allocates land for housing in Ash. Delivery of this scheme will also enable the closure of Ash level crossing to motor vehicles, which will improve safety for highway and rail users and significantly reduce traffic congestion on the A323 and the use of alternative local roads to avoid the Ash level crossing in Ash.

Other options considered and rejected by the Executive:

Option 2, to not proceed with the recommendations set out in the report.

Details of any conflict of interest declared by the Leader or lead councillors and any dispensation granted:

None.

The Leader of the Council explained that the report before the Executive contained a significant amount of material that had been designated as exempt. To give full consideration to the matter would necessitate discussion in private. It was proposed that the Lead Councillor for Regeneration introduce the report in general terms, without reference to the exempt content. A public speaker would then address the meeting. Thereafter the Leader would propose the meeting be closed to the public for the duration of the discussion of the exempt material.

The Ash Road Bridge (ARB) scheme comprised a long-term infrastructure solution to the current and future issues posed by the Ash level crossing, including increased usage associated with housing growth in the Ash and Tongham area and greater barrier downtime resulting from enhanced rail use of the North Downs Line.

The Scheme was being delivered in two Stages. Stage 1 was the delivery of the road bridge over the railway line (and closure of the level crossing to motorised vehicles). Stage 2 was the delivery of the footbridge in the vicinity of Ash level crossing enabling the Ash level crossing to be closed permanently to all users.

The approved budget for the Scheme was £38.91 million, being £33.89 million for the road bridge (Stage 1) and £5.02 million for the footbridge (Stage 2) (excluding borrowing costs.) The road bridge budget was slightly higher than that which was approved by the Council in April 2021 (£38.79million) as the budget was subsequently combined with a separate approved budget for land acquisition costs for the Ash Road Bridge Scheme equivalent to £0.12 million.

The revised budget was £44.5 million, being £44.0 million for the road bridge and £0.5 million for the footbridge (excluding borrowing costs.) The increase to the budget was therefore £5.59 million.

The scheme had secured £23.9 million from Homes England (HIF) funding and recently a further £5 million from Surrey County Council (SCC) as set out in the Supplementary Information Sheet. In addition, the scheme had incurred substantial funding from the Council itself in the form of reserves, funds and borrowing. As with the Weyside Urban Village (WUV) scheme, ARB was an inherited commitment from the previous administration and was an integral part of Policy A31 in the adopted Local Plan to mitigate against existing and planned development to include the delivery of 1,750 new homes. It was argued that the current administration might consider not proceeding with the scheme due to the economic situation and because it was solely infrastructure and not within the Council’s duty to provide with little financial return for taxpayers.

The Lead Councillor for Regeneration described both WUV and ARB as worthy schemes and because they were both already underway, needed to be completed. Although the financial commitment and liabilities were significant, the costs to the residents of the borough of not proceeding, it was argued, would also have a significant impact. The loss to the Council of pre-development costs already committed to ARB and not recoverable should  ...  view the full minutes text for item 100