Item 09 - Glasgow City Region City Deal - Update
West Dunbartonshire Council · 29 March 2023
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer (Regeneration and Regulatory) Council: 29 March 2023 Subject: Glasgow City Region City Deal - Update 1. Purpose 1.1 To note the progress with the implementation of the Glasgow City Region City Deal. 2. Recommendations 2.1 It is recommended that Council notes the progress of the Glasgow City Region programme. 3. Background 3.1 The Glasgow City Region City Deal Infrastructure programme equates to £1.13bn of investment during period 2015-2035. Projects are progressing and have reached various stages from Strategic, Outline and Full Business Case stages of approval. 3.2 Previous reports, listed in background papers, have reported on progress of the Council’s City Deal project at the Exxon site. 4. Main Issues 4.1 The Council is progressing the Exxon Project, which includes working with Balfour Beatty via the Scape Framework as part of the pre-construction agreement to allow the detailed design elements of the project to commence and provide greater certainty by June 2023 regarding the budget position. A number of cost savings have already been identified in the early design process. In October 2022 Council approved expenditure of £5.74M on design and construction of the Western Underpass prior to approval of the Full Business Case, anticipated to be in June 2023. The contract with Network Rail for the design has now been concluded and regular progress meetings are taking place. The Stage 2 2023/24 funding application to Scottish Government for Vacant and Derelict Land Fund was unsuccessful, but officers intend to resubmit for 2024/25, taking on board any feedback received. Glasgow City Region City Deal Update 4.2 The Glasgow City Region Chief Executives Group (CEG) met on 2 February 2023. Agenda items included Electric Vehicle Charging Interim Report; an update on the Clyde Green Freeport bid; and a report on the proposed Anchor Network. Regarding the Electric Vehicle Charging Strategy, this Page 1 of 5 ITEM 9
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includes consideration of introducing tariffs, including potential overstay charges to encourage fair and sensible use of charge points. The Anchor Network is being established to share information across anchor organisations in an effort to progress community wealth building principles such as Living Wage, procurement and building the capacity of local businesses. 4.3 CEG noted that the second Strategic Transport Review was published in December which confirms that a Scottish Government strategic priority will be Glasgow Metro. The Investment Plan is due to be published early this year, and will set out funding, delivery mechanisms and timelines for phases of Metro. The Glasgow Airport Link will be subsumed into Metro proposals. The Metro team which include reps from Glasgow City Council, Transport Scotland and Strathclyde Partnership for Transport have been liaising with UK Infrastructure Bank on investment opportunities in Metro. 4.4 The Quarterly Performance Report was also presented to CEG Under Key Highlights, the agreement of a contract with Network Rail for the Western Underpass on Exxon was noted. The Report also notes some positivity around economic growth in the Region, albeit limited, in late 2022. There were details of Gateway Review 2 in that the Department of Levelling Up Housing and Communities have issued a new framework for evaluating impact of the City Deal projects since the first Gateway Review five years ago. Department of Levelling Up Housing and Communities have appointed consultants SQW to assist. The majority of this work will be done by the City Region programme management office, but completed projects will be assessed for their impact. This only affects projects that will be complete by October 2023. 4.5 Due to escalating construction costs having an impact on the ability to deliver all the projects across the Region, the City Region programme management office is working with Chief Executives on a project reprogramming exercise with the objective of prioritising projects with the most economic impact. The information will be analysed by the Programme Management Office and a report will be presented to April Cabinet. Green Freeport Bid 4.6 The Clyde Green Freeport Bid was unsuccessful, with Freeport status in Scotland being awarded to Inverness and Cromarty Firth Green Freeport and Forth Green Freeport by the Scottish and UK governments. Shared Prosperity Fund 4.7 A Local Investment Plan has been developed and approved by the UK Government as part of a wider Glasgow City Region Investment Plan through the UK Shared Prosperity Fund. The business support proposals within the Investment Plan will be available from April 2023 to support business recovery and include a Business Recovery & Growth fund, Early Stage Growth grants, Towards Net Zero Grant, Enhancing Tourism Events & Attractions Fund, Business Gateway Expert Help and Shopfront & Small Business Improvement Grants. Page 2 of 5
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Clyde Bridge 4.8 The Clyde Bridge Contractor maintains a website with regular updates on the project. A viewer at the top of the website home page shows a video of progress which is updated monthly. This can be accessed at: www.graham.co.uk/clyde-waterfront 4.9 Since the last report the Contractor has made visible progress with works on site and continued dialogue with key stakeholders and landowners. Previously agreed accommodation works and boundary fencing along Dock Street is now complete. Work on the diversion of the Yoker Burn culvert is progressing with excavation for the new route established and work on structures on-going. The Contractor is liaising with colleagues regarding the detailed road design along Dock Street, prior to construction commencing in this area. Work on the south Pier for the new bridge has commenced. Fabrication of the bridge structure has commenced off-site. 4.10 The Construction Contract for the Clyde Bridge project requires that subcontract and supplier opportunities over a value of £10,000 are advertised through the Public Contracts Scotland Tender portal. This requirement ensures that as the large-scale project is broken into smaller work parcels, local companies and SME’s have the opportunity to bid for packages of work. To date 19 works packages have been advertised, nine awarded, five of which to companies within the City Region. Additionally, a commitment of a minimum of 12 days will be spent by the Contractor undertaking supply chain development, to encourage and coach, local organisations and SME’s how to prepare to enable access to this and therefore other public sector work opportunities. Thus far five sessions of training have been held. Also during the period the Contractor undertook a training day with Working 4U Dunbartonshire Training Academy staff and clients. 4.11 Next stages of works include works on the North Pier and layby berth at Rothesay Dock. 4.12 Newsletters are accessible by those who register for further updates after the issue of the first newsletter to over 3,500 residents and businesses in the local area. Posters advising the project website address were also delivered to public buildings in the project area. A link to register for updates is contained within the project webpage noted above. 5 People Implications 5.1 There are a number of senior officers involved in the Glasgow City Region wider programme as identified at City Region Update paper at Council on 26 August 2021. Page 3 of 5
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6. Financial Implications 6.1 The approved budget to date for the City Deal Exxon project is £34.5M. The expenditure during 2021/22 was £0.44M, and as at February 2023 the current expenditure for 2022/23 stands at £0.614M. 7. Risk Analysis 7.1 There are a number of project risks associated with the development at the ExxonMobil project site and these are contained within the risk register of the refreshed Outline Business Case and updated by the project board on a regular basis. 8. Equalities Impact Assessment 8.1 An Equalities Impact Assessment is not necessary for this report as it an update on a previously reported project. 9. Consultation 9.1 Consultation with all key stakeholders is progressing as we continue to work as part of the Glasgow City Region. 9.2 Legal Services, Finance, Planning and Procurement are regularly consulted through their participation in the Exxon project board. 9.3 Wider communication is produced regarding progress of the Glasgow City Region at its website http://www.glasgowcityregion.co.uk/ 10 Strategic Assessment 10.1 At its meeting on 26 October 2022, the Council agreed that one of its main strategic priorities for the Strategic Plan 2022 - 2027 is: • A Strong local economy and improved employment opportunities 10.2 The proposals within this report are specifically designed to deliver on this priority. Alan Douglas Chief Officer: Regulation and Regeneration Date: 6 December 2022 Person to Contact: Gillian McNamara gillian.mcnamara@west-dunbarton.gov.uk Appendix: None Background Papers: UK Shared Prosperity Fund Report to Housing and Page 4 of 5
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Communities Committee 22 August 2022 GCR Interim Performance Report- 18 Nov 2021 , GCR Education Improvement Collaborative/West Partnership Improvement Plan 2021/22, Glasgow City Region City Deal – 29 Council updates since February 2016, March 2021 Elected Members briefing- Renfrew Bridge, July 2020 Members Bulletin. ExxonMobil Commercial Agreement 24 June 2020. Glasgow City Region City Deal - Exxon Site Outline Business Cases 22 Feb 2017 and 28 Nov 2018 (Refreshed). Clyde Valley City Deal - Update and Strategic Business Case- Council 24 June 2015. Clyde Valley City Deal Update- Council 25 Aug 2015 and 16 Dec 2015. Clyde Valley City Deal- Governance- Council 17 Dec 2014. Glasgow City Region City Deal- Council 13 August 2014. “City Deal Initiative” Clyde Valley Investment Fund- Council 30 April 2014 (Memorandum of Understanding). Clyde Valley Community Planning Partnership – City Deal Initiative – Council 28 August 2013. Equalities Impact Assessment November 2018. Environmental Impact Assessment -DC20/088 – Planning Application – Documents. Wards Affected: All Page 5 of 5