Agenda item

(CSP: BEC, SLE, HQL and SLE2)

Purpose:  To outline the progress made by the Superfast Berkshire project and to make a recommendation for a new phase of the project (Intervention Phase 3).  This report is based upon recommendations previously endorsed by the Superfast Berkshire Project Board, Berkshire Chief Executives Group, Berkshire Leaders, Thames Valley Berkshire LEP Forum and the LEP Executive.

Resolved that:

·         the circa £2.5m of underspend and gainshare funding from intervention phase 1 of the Superfast Berkshire project and the unspent phase 2 funds from Reading and Wokingham (including LEP contribution) be invested into a procurement for a Superfast Berkshire Phase 3. The objective of this new phase is to get all Berkshire unitary districts to as close to 100% superfast broadband coverage as possible by the end of 2018.  At the very least we should assist all districts in getting to 97% superfast broadband coverage.

·         West Berkshire Council continues to act as the lead authority, for this successful project, both for this new procurement and for overseeing delivery of the existing and new phases of the project.

·         the governance arrangements, which were set up for phase 1 of the project, continue to be used. (Subject to the proposed updates to the Collaboration Agreement being completed).

·         project resource costs be divided equally across all 7 project participants.

This decision is eligible to be ‘called-in’.  However, if the decision has not been ‘called-in’ by 5.00pm on 4 August 2016, then it will be implemented.

The Executive considered a report (Agenda Item 7) which outlined the progress made by the Superfast Berkshire project and which made a recommendation for a new phase of the project (Intervention Phase 3).

Councillor Roger Croft explained that this pan-Berkshire project, which commenced in 2011, was designed to fill the gaps in superfast broadband coverage across Berkshire. At the start of the project superfast coverage in West Berkshire was 65%. However, the Superfast Berkshire Project, under West Berkshire Council’s stewardship, would achieve 95.6% of superfast broadband coverage across Berkshire by 2017 and close to 100% in West Berkshire (Phase 2).

Investment funds available for Phase 3 improvements amounted to £2.5m. This comprised Gainshare funding of £816k, project underspend of £1m and unused basic broadband funding of £623k. It was proposed that West Berkshire Council would continue to oversee Phase 3 of the project and this expenditure.

Councillor Croft concluded his introduction by remarking that this project was a good example of the Berkshire unitary authorities and the Thames Valley Berkshire Local Enterprise Partnership (LEP) working together to the benefit of residents across Berkshire.

Councillor Alan Macro noted that the LEP had offered to provide this project with an interest free loan of up to £1.8m which would allow the project to be funded in advance of British Telecom (BT) repaying the Gainshare and project underspend. He queried whether this was necessary if the tender for Phase 3 was awarded to BT. Councillor Croft responded that the view had been taken by the Superfast Berkshire Project Board that it would be preferable to engage in a competitive tender process with a view to achieving the best outcome for Berkshire residents.

Councillor Macro commended the work of the Council’s Officers on this project and suggested that the Council’s expertise/service could be sold to other local authorities. Councillor Croft added his praise for the efforts of Officers and explained that while the delivery of Phase 2 and the proposed Phase 3 were the first priority, the potential to sell the Council’s capability in this area/its service could then be considered. This was a valuable skill set held by West Berkshire Council.

RESOLVED that:

(1) The circa £2.5m of underspend and gainshare funding from intervention phase 1 of the Superfast Berkshire project and the unspent phase 2 funds from Reading and Wokingham (including LEP contribution) be invested into a procurement for a Superfast Berkshire Phase 3.

The objective of this new phase is to get all Berkshire unitary districts to as close to 100% superfast broadband coverage as possible by the end of 2018. At the very least we should assist all districts in getting to 97% superfast broadband coverage.

(2) West Berkshire Council continues to act as the lead authority for this successful project, both for this new procurement and for overseeing delivery of the existing and new phases of the project.

(3) The governance arrangements, which were set up for phase 1 of the project, continue to be used. (Subject to the proposed updates to the Collaboration Agreement being completed).

(4) Project resource costs be divided equally across all 7 project participants.

Reason for the decision: To outline the progress made by the Superfast Berkshire project and to make a recommendation for a new phase of the project (Intervention Phase 3).

Other options considered: To accept an “Accelerated Gainshare” offer from BT whereby the £2.5m project underspend and gainshare is reinvested with BT under project change control. The Superfast Berkshire Project Board believes that procuring phase 3 in the open market will provide better technical solutions and better value-for-money than accepting BT’s offer (Of course BT is free to bid competitively for this work).

That West Berkshire Council hand over responsibility to another Berkshire authority after completion of phase 2 of the project since it does not benefit directly in terms of increased broadband coverage from phase 3. However this project is an excellent example of how the 6 Berkshire authorities can work together and it is considered that West Berkshire Council should continue to use the knowledge and expertise it has built up to lead this project to its conclusion. The collaborative working and the infrastructure improvements brought by this project will continue to bring benefit to all project participants.