Decision details
Blackpool Integrated Traffic Management - Funding Approval Application
Decision Maker: LEP - Transport for Lancashire Committee
Decision status: Recommendations Approved
Is Key decision?: No
Decisions:
Leighton Cardwell and Peter Hibbert from Jacobs presented a report (circulated) on the independent assessment of the business case for the Blackpool Integrated Traffic Management scheme.
It was reported that the Blackpool ITM Scheme consists of installing the following infrastructure:
· 16 fully functional Variable Message Signs,
· 19 Parking Guidance Information signs with variable elements,
· Car park monitoring system,
· CCTV,
· 24 static parking signs.
In addition it was reported that the estimated capital cost of the project was £2.16m (2015 prices) with proposed funding arrangements consisting of £1.51m Local Growth Fund Contribution (70%) and £0.65m Local Contribution (30%).
Funding will be spent over two financial years (2015/16 and 2016/17) with revenue costs of £1.59m (2015 prices) over a 15 year period (circa £100k per annum) to be met entirely by Blackpool Council. In addition, a 20% risk allowance is currently included. It is anticipated that the scheme has the potential to generate an additional £8.1m of Gross Value Added (GVA) benefits.
It was reported that the Benefit Cost Ratio (BCR) (excluding GVA benefits) was 1.09 (low VfM) and that the BCR (including GVA benefits) was 2.38 (high VfM).
It was noted by the Committee that a procurement exercise has not yet been undertaken (scheduled to start in November 2015) and that as a result optimism bias has subsequently been applied at 200% to the IT related costs and 66% to other costs. It is anticipated that the BCR would rise significantly if the tender costs come back in line with the scheme cost estimates.
The Committee raised a concern regarding the potential for the BCR of the scheme to fall below the Lancashire Enterprise Partnership (LEP) Assurance Framework Value for Money (VfM) Ratio threshold of 2.0 and requested that the procurement exercise be undertaken as soon as possible to provide an accurate BCR rating. On this basis, the Committee agreed to advise the LEP Board to grant approval but subject to the scheme sill demonstrating a value for money (VfM) rating of at least the Assurance Framework minimum of 2.0 following procurement.
Resolved: The Transport for Lancashire Committee endorsed the Blackpool Integrated Traffic Management – Funding Approval Application, subject to scheme returning a VfM ratio of at least 2.0 following procurement and recommended that it be submitted to LEP Board for formal approval at its meeting to be held on 6th October 2015.
Date of decision: 01/10/2015
Decided at meeting: 01/10/2015 - LEP - Transport for Lancashire Committee
Accompanying Documents:
- Blackpool Traffic Management Report PDF 57 KB View as DOCX (1) 34 KB
- Blackpool Traffic Management - Memo PDF 131 KB View as DOC (2) 239 KB
- Blackpool Traffic Management - Memo Appendix A PDF 227 KB
- Blackpool Traffic Management - Memo Appendix B PDF 91 KB
- Blackpool Traffic Management - Business Case PDF 727 KB
- Blackpool Traffic Management - Appendix A PDF 6 MB
- Blackpool Traffic Management - Appendix B PDF 93 KB
- Blackpool Traffic Management - Appendix C PDF 406 KB
- Blackpool Traffic Management - Appendix D PDF 18 MB
- Blackpool Traffic Management - Appendix E PDF 506 KB
- Blackpool Traffic Management - Appendix F1 PDF 349 KB
- Blackpool Traffic Management - Appendix F2 PDF 46 KB
- Blackpool Traffic Management - Appendix F3 PDF 497 KB
- Blackpool Traffic Management - Appendix G PDF 233 KB
- Blackpool Traffic Management - Appendix H PDF 47 KB
- Blackpool Traffic Management - Appendix I PDF 88 KB
- Blackpool Traffic Management - Appendix J PDF 254 KB
- Blackpool Traffic Management - Appendix K PDF 340 KB
- Blackpool Traffic Management - Appendix L PDF 557 KB