Agenda item

(CSP: 2, 4 & 5)

Purpose: To seek an exception to the Contract Rules of Procedure (11.11) and to enter into an agreement with the developer for the construction of the Kings Road Link Road.

Resolved that:

(a)               An exception to the Contract Rules of Procedure (CRoP), paragraph 11.11 of the Constitution be granted to allow the negotiations to proceed with the developer of the Sterling Cables Site without a tender process under the CRoP.

(b)       the Head of Highways and Transport be delegated authority (in consultation with the Head of Legal, Head of Finance and the Portfolio Member) to enter into an agreement or agreements with the developer of the said site, relating to the construction of the Kings Road Link Road.

This decision is eligible to be ‘called-in’.  However, if the decision has not been ‘called-in’ by 5.00pm on 6^th December 2013, then it will be implemented.

(Sarah Clarke declared a personal and prejudicial interest in Agenda item 7 by virtue of the fact that she lived close to the site in question. As her interest was personal and prejudicial and a disclosable pecuniary interest she left the meeting and therefore did not provide any legal advice on the matter).

The Executive considered a report (Agenda Item 7) which sought an exception to the Contract Rules of Procedure (11.11) and which sought approval to enter into an agreement with the developer for the construction of the Kings Road Link Road.

Councillor Pamela Bale in introducing the report noted that the Kings Road Link improvement line (linking Hectors Way to the Boundary Road/Hambridge Road junction) had been incorporated in the Local Plan in 1992. It was also included in the Local Development Framework and dissected the Stirling Cables Site. If approved this scheme would provide a bypass for Kings Road and Mill Lane thereby improving journey times in this busy part of Newbury and providing significant environmental improvements.

Councillor Bale noted that the Stirling Cables Site was heavily contaminated and would require an unacceptably high density of housing on the site to meet the costs of decontaminating the site. Officers had therefore been in discussions with the developer to explore options for delivering the link road whilst safeguarding the redevelopment and decontamination of the brown field site.

The Berkshire Local Transport Body had received £14m of funding from the Department for Transport. The six Berkshire unitary authorities had been invited to submit bids for this funding in May 2013. This scheme was currently ranked first for drawing down the funding. Two options had been considered for the delivery of the scheme. The first option would involve the Council paying for the delivery of the road through the developer of the Stirling Cables Site. The second option involved the Council procuring and constructing the link road independently of the development.

Officers were recommending that the first option be followed as it would achieve a number of benefits including the fact that risk of costs would be transferred to the developer and the developer could achieve savings on site set up and accommodation. The savings could be shared with the Council through a legal agreement.

However, the Council’s Contract Rules of Procedure required all contracts to be subject to a competitive process. Adoption of option one would mean that there would have to be a deviation from the Council’s Rules of Procedure although it was noted that the cost of the scheme would not exceed the European Union threshold of £4.3m which would require the scheme to be advertised in the Official Journal of the European Union.

In the absence of the Monitoring Officer the Chief Executive reminded Members that this report sought agreement to procure the road and that the merits or otherwise of the application would be discussed at the appropriate planning committee.

In response to a query from Councillor David Allen it was noted that that the developer would pay for the road right through to Scats. Councillor Bale also responded that the developer would fund the de-contamination of the whole site.

RESOLVED that:

(a)       The Executive would grant an exception to the Contract Rules of Procedure (CRoP), paragraph 11.11 of the Constitution, to allow the negotiations to proceed with the developer of the Stirling Cables Site without a tender process under the CRoP.

(b)       The Executive would delegate to the Head of Highways and Transport authority (in consultation with the Head of Legal, Head of Finance and the Portfolio Member) to enter into an agreement or agreements with the developer of the said site, relating to the construction of the Kings Road Link Road.

Reason for the decision: This will allow the Council to contract with the developer of the Stirling Cables site to deliver the link road.

Other options considered: The Council procures and constructs the Kings Road Link independently of the Stirling Cables development.