Decision details

To consider the report of the Cabinet Member for Environment and Transport, in association with the Cabinet Member for Resources seeking to accept new funding from several new sources and add the funding to the capital and revenue programmes for transport with authority to spend.  The additions are programmed over the next three financial years starting this year.

The new sources of funding are Section 106 contributions, the majority of which are for transport relating to the Centenary Quay development and revenue and capital funding associated with recent successful funding bids to the Department for Transport Local Sustainable Transport Fund and Better Bus Area Fund.

This report will also go to the Council meeting on 14 November 2012.

Cabinet recommends Full Council to:

(i)  Accept grant funding from the Local Sustainable Transport Fund (LSTF) of £9.013M split between Capital £7.193M and Revenue £1.819M over the following three years 2012/13 to 2014/15.  Total awarded to Transport for South Hampshire (TfSH), £17.839M;

(ii)  Accept a further LSTF allocation of £330K to deliver Real Time Information (RTI) Phase 4 capital works in 2012/13;

(iii)  Accept grant funding of £50K from Better Bus Area Fund (BBAF) to fund Capital expenditure of £40K in 2012/13 and Revenue expenditure of £10K in 2012/13;

(iv)  Add to the Environment and Transport Capital Programme, Integrated Transport, £7.193M; phased £0.610M in 2012/13, £4.584M in 2013/14 and £1.999M in 2014/15, in order to deliver transport measures across the City funded by LSTF grant (see Appendix 1);

(v)  Add to the Environment and Transport Capital Programme, Integrated Transport, a further £330K of LSTF allocation to deliver Real Time Information Phase 4 capital works in 2012/13. (see Appendix 1);

(vi)  Add to the Environment and Transport Capital Programme, Integrated Transport, £40K of Better Bus Area Fund (BBAF) towards transport measures across the City in 2012/13 (see Appendix 1);

(vii)  Add to the Environment and Transport Capital Programme, Public Realm,  £1.392M of Public Realm Section 106 contributions phased £142K in 2012/13, £302K in 2013/14 and £948K in 2014/15 in order to deliver the Centenary Quay public realm (see Appendix 1);

(viii)  Add to the Environment and Transport Capital Programme for Integrated Transport, £910K of Strategic Transport Section 106 contributions phased £80K in 2012/13, £410K in 2013/14 and £420K in 2014/15 towards developing transport measures across the City (see Appendix 1);

(ix)  Approve to spend, in accordance with Financial Procedure Rules, schemes and projects totalling £9.865M to the Environment and Transport Capital Programme for Integrated Transport, phased £1.202M in 2012/13, £5.296M in 2013/14 and £3.367M in 2014/15 funded as detailed in Appendix 1 on schemes as detailed in Appendix 2 and Appendix 3;

(x)  Approve the additionof £428,000 to the 2012/13 revenue estimates of the Environment and Transport Portfolio funded by government grant (LSTF and BBAF) and to note that further additions of £894,000 to the 2013/14 and £507,000 to the 2014/15 revenue estimates will be formally made as part of the preparation of those financial years’ budget; and

(xi)  Note that Southampton will play a lead authority role for the delivery of a South Hampshire Smartcard for Public Transport, Legible Cities projects procured by SCC as lead authority for TfSH from LSTF Funding including developing a joint back office as agreed at TfSH Joint Council committee 25/09/2012, for which a scheme of £5M is included in the proposed capital programme, contained within the total addition to the capital programme of £9.865M.

Various new sources of funding have been secured for transport schemes.  These include Section 106 contributions, the majority of which are for transport relating to the Centenary Quay development and capital funding associated with a recent successful funding bids to the to the DfT Local Sustainable Transport Fund, Regional Growth Fund and Better Bus Area Fund.

1.  An alternative option is not to accept the funding for one or more of the elements seeking approval to add to the programme with authority to spend.

2.  In terms of the successful bid funding the risks associated with accepting the funding have been minimised by taking certain actions including:

• Use of fixed term staff contracts only to put in place delivery capacity
• Use of partnerships with others who will deliver elements of the project including SUSTRANS and the University of Southampton
• Match funding commitments have been made from the Local Transport Plan or Section 106 funding.  We have an indicative settlement letter from the DfT for future years LTP funding and Section 106 funding payment has already been received
• Some projects have been designed to be self funding in future years and others can operate at reduced funding level to maintain impact
• Delivery in partnership through Transport for South Hampshire

3.  The Housing and Communities Agency requested that the authority take early payment of Section 106 contributions relating to Centenary Quay Development.  Failure to authorise spending of this funding will mean that the transport impacts of the development will not be mitigated.  If approval to spend these monies were not approved, then the transport measures to support the Centenary Quay development and address its transport impacts of £1.392M, would not be delivered.