Agenda and minutes

Liverpool City Region Combined Authority
Friday, 27th July, 2018 1.00 pm

Venue: Authority Chamber - No.1 Mann Island, Liverpool, L3 1BP

Contact: Trudy Bedford  0151 330 1330

Items
No. Item

35.

Apologies for Absence

Minutes:

          Apologies for absence were received on behalf of Mayor J Anderson OBE, Councillor D Long, Councillor G Morgan, Councillor R Polhill, Mr A Hamid MBE, Rt Hon J Kennedy (Portfolio Holder – Criminal Justice), Councillor I Moran, Councillor P Hardy (Deputy Portfolio Holder – Housing & Spatial Planning), Councillor L Robertson-Collins (Deputy Portfolio Holder – Education, Employment, Apprenticeships and Skills), Councillor E Spurrell (Deputy Portfolio Holder – Criminal Justice), Professor Dame J Beer (Mayoral Advisor – Higher Education), Luciana Berger MP (Mayoral Advisor – Mental Health), Gideon Ben-Tovim OBE (Mayoral Advisor – Natural Environment), Sara Wilde-McKeown (Mayoral Advisor – Visitor Economy) and Reverend Canon Dr E Loudon (Mayoral Advisor – Community & Voluntary Sector).

36.

Declarations of Interest

Minutes:

It was reported that no declarations of interest had been received.

37.

Minutes of the LCR Combined Authority meeting held on 29 June 2018 pdf icon PDF 469 KB

Minutes:

          RESOLVED – That the minutes of the meeting of the LCR Combined Authority held on 29 June 2018 be approved as a correct record and signed by the Metro Mayor.

38.

Liverpool City Region Metro Mayor Announcements and Updates

Minutes:

          Metro Mayor S Rotheram provided the LCR Combined Authority with a summary of some of the key activities he had undertaken in recent weeks.

 

          The Metro Mayor referred to his recent announcement regarding the introduction of half price bus travel for apprenticeships aged 19-24 years of age. He reported that this was one of his manifesto commitments and explained how the commitment of the half price bus travel would remove one of the many barriers facing young people entering into vocational training.

 

          The Metro Mayor also reported on how he continued to lobby central government to devolve greater responsibility and resource for skills to the North, alongside the Northern Powerhouse Partnership. He emphasised how with additional powers and resources the North of England could be a global leader for higher and degree level apprenticeships. The Metro Mayor also informed the LCR Combined Authority of his recent visit to Ena Shaw’s in St Helens which served as an example of an organisation successfully using the Apprenticeship Levy.

 

          The Metro Mayor referred to his recent announcement regarding the formation of a new Town Centre Commission which was designed to produce long-term investment plans to enable the town centres across the City Region to thrive over the coming 20 years.

 

          In conclusion, the Metro Mayor highlighted two key events which would be taking place across the City Region on Saturday 28 July and Sunday 29 July 2018. These included the final stage of the Clipper Round the World Yacht Race 2018 which would be concluding at the Royal Albert Dock. Along with the PRIDE celebrations, which the LCR Combined Authority had sponsored and would be taking place in the City Centre on Saturday 28 July 2018.

39.

Liverpool City Region Single Investment Fund (*Key Decision) pdf icon PDF 134 KB

To consider the report of the Interim Head of Paid Service and the Portfolio Holder: Inclusive Growth, Economic Development, Digital and Innovation.

Additional documents:

Minutes:

The LCR Combined Authority considered a report of the Interim Head of Paid Service and Portfolio Holder: Inclusive Growth, Economic Development, Digital and Innovation which sought approval on two Full Business Cases submitted for funding from the Single Investment Fund for the Digital Innovation Factory (£5,000,000) and for the Atlantic Park (£767,368).

 

            Mark Bousfield, Director of Commercial Development and Investment, reported that the Digital Innovation Factory project involved the delivery of a new build facility on the University of Liverpool’s campus. The Factory would serve as a Centre of Excellence in simulation and virtual reality. The Atlantic Park – Project Olympus was the development of a vacant 1.94 hectare brownfield site within the Atlantic Park Business Park in Sefton. The project comprised of the construction of a new speculative distribution and logistics facility.

 

            Councillor P Davies, Portfolio Holder: Inclusive Growth, Economic Development, Digital and Innovation welcomed the two Full Business Cases, in particular noting the economic benefits both submissions would bring to the City Region.

 

            RESOLVED – That:-

 

(i)            the Full Business Case for the Digital Innovation Factory be awarded a Single Investment Fund capital grant in the sum of up to £5,000,000;

 

(ii)          the Full Business Case for Atlantic Park be awarded a Single Investment Fund capital grant in the sum of up to £767,368; and

 

(iii)         authority be granted to the Interim Head of Paid Service to negotiate detailed terms and conditions of the ensuing grant funding agreements in consultation with the Combined Authority Monitoring Officer and Treasurer. Any material variations to the project(s) as detailed in this report are to be referred back to the Combined Authority for consideration.

 

40.

Liverpool City Region Strategic Investment Fund Strategy pdf icon PDF 201 KB

To consider the report of the Interim Head of Paid Service and the Portfolio Holder – Inclusive Growth, Economic Development, Digital and Innovation.

Additional documents:

Minutes:

          The LCR Combined Authority considered a report of the Interim Head of Paid Service and the Portfolio Holder: Inclusive Growth, Economic Development, Digital and Innovation which sought approval for the Liverpool City Region Strategic Investment Fund Strategy, which was attached at Appendix A to the report now submitted.

 

          Mark Bousfield, Director of Commercial Development and Investment, informed the LCR Combined Authority that the Liverpool City Region Strategic Investment Fund Strategy had been drafted to guide the Combined Authority’s investment activities for the coming 18 months. It was reported that the Strategy had been shared with representatives from the constituent Local Authorities, LCR Local Enterprise Partnership and other key stakeholders for comment. The priorities contained within the Strategy where based on the LCR Local Enterprise Partnership priorities and also contained a new investment process by which all new applications to the Strategic Investment Fund would have to comply with.

 

          Councillor P Davies, Portfolio Holder: Inclusive Growth, Economic Development, Digital and Innovation welcomed the Strategy in particular highlighting the Strategies robust approach to future funding applications. Councillor P Davies also reported that he had shared the draft Strategy with the Combined Authorities Fairness and Social Justice Board (FASJAB) who welcomed the emphasis of inclusive growth contained within the Strategy.

 

          RESOLVED – That the Liverpool City Region Strategic Investment Fund Strategy attached at Appendix A to the report now submitted be approved.

 

           

41.

Sustainable Transport Enhancements Package (STEP) (*Key Decision) pdf icon PDF 498 KB

To consider the report of the Lead Officer: Transport and the Portfolio Holder: Transport and Air Quality.

Additional documents:

Minutes:

The LCR Combined Authority considered the report of the Lead Officer: Transport and the Portfolio Holder: Transport and Air Quality which sought approval to undertake revisions to the methodology used for the allocation of previously unallocated funding within the Sustainable Transport Enhancement Package (STEP).

 

            Councillor L Robinson, Portfolio Holder: Transport and Air Quality reported that the STEP programme budget had a current identified underspend of £825,413. The LCR Combined Authority was informed that as a consequence of the identified underspend, a review of the schemes which formed part of a reserve list was undertaken. On completion of this review it was deemed that no reserve list scheme was in a position to commence work on site.

 

Consequently, to ensure the identified underspend could be allocated appropriately it was highlighted that an alternative mechanism for the allocation of the underspend would be through an ‘Added Value’ approach to the existing schemes within the STEP Programme. Members attention was drawn to Table 2 of the report now submitted, which subject to approval, outlined how the underspend would be reallocated.

 

            RESOLVED – That:-

 

(i)            the rationale for revising the approved methodology for reallocation of underspend, and adopting the new added value methodology to reallocate unallocated STEP funding be noted;

 

(ii)          it be noted that the schemes proposed are adding further outputs to existing projects within the approved STEP business case and, in short, are further works to augment approved schemes;

 

(iii)         the Transport Advisory Group evaluation process/methodology undertaken in order to assess submission in an efficient and effective manner, to seeking to achieve additional programme outputs be approved;

 

(iv)         the reallocation of funding to the existing STEP schemes as detailed in table 2 of the report now submitted be approved;

 

(v)          the above process to allow any future unallocated funding to be re-profiled across the STEP programme using the methodology contained within this report be approved; and

 

(vi)         approval be granted for project sponsors to retrospectively claim expenditure for any works already undertaken on the schemes listed in Table 2 of the report now submitted.

 

42.

Transforming Cities Funding Award - Proposed Commissioning approach and next steps pdf icon PDF 444 KB

To consider the report of the Director of Policy and Strategic Commissioning and the Portfolio Holder: Transport and Air Quality.

Minutes:

          The LCR Combined Authority considered the report of the Director of Policy and Strategic Commissioning and the Portfolio Holder: Transport and Air Quality which set out the proposed commissioning approach for the Transforming Cities Fund.

 

          Councillor L Robinson, Portfolio Holder: Transport and Air Quality informed the LCR Combined Authority that the City Region had received £134million Transforming Cities Funding. He reported that the Fund would support local transport investment over a four-year period, with 2018-19 the first year of the Funds operation. It was noted that if the funding remained unallocated at the end of 2018-19 then it could not be carried over into the following financial year.

 

As a consequence of the fixed in-year allocation and the urgent need to progress schemes which could deliver, it was proposed that the following three projects be invited to progress to Strategic Outline Business Case: -

 

(1)    Funding for the launch of a smart ticketing portal and new ticketing media as a successor to ‘Walrus’;

 

(2)     Support for a new, low carbon and low emission vessel(s) to replace the ageing Mersey Ferries; and

 

(3)    Match funding in respect of the priority European Regional Development Fund Sustainable Urban Development (SUD) programme of green travel routes for cyclists.

 

In conclusion, Councillor L Robinson reported that the Commissioning process based on the three themes as detailed in paragraph 4 of the report now submitted would be rolled out and schemes would be invited to progress through the Single Investment Fund business case process.

 

RESOLVED – That:-

 

(i)              the principles and priorities that form the basis of the Transforming Cities Fund commissioning approach as summarised in section 4 of the report and set out in Appendix One to the report now submitted be endorsed;

 

(ii)             the following three schemes be invited to progress to Strategic Outline Case stage, in order to seek to commit funding that is available this current financial year and achieve delivery, namely:-

 

a.     Funding for the launch of a smart ticketing portal and new ticketing media as a successor to ‘Walrus’;

 

b.     Support for a new, low carbon and low emission vessel(s) to replace the ageing Mersey Ferries; and

 

c.     Match funding in respect of the priority ERDF Sustainable Urban Development (SUD) programme of green travel for cyclists;

 

(iii)           £500,000 of development funding be made available this financial year, to be accessed through the original Single Investment Fund feasibility route, subject to this being eligible capital expenditure;

 

(iv)           a deadline of 1 November 2018 for the submission of eligible schemes and development funding bids set out in (i) and (ii) be agreed;

 

(v)             the remaining years funding (2019/20 – 2021/22) be commissioned in further tranches, and as part of the wider Single Investment Fund Investment Strategy that is expected to be launched in September 2018 be agreed; and

 

(vi)           note that the funding decisions on individual Transforming Cities Fund schemes will rest with the Combined Authority, in line with the principals governing the Single Investment Fund as set out in  ...  view the full minutes text for item 42.

43.

Mersey Tidal Power Update pdf icon PDF 132 KB

To consider the report of the Lead Officer: Energy and Renewables and the Portfolio Holder: Energy and Renewables.

Additional documents:

Minutes:

          The LCR Combined Authority considered the report of the Lead Officer: Energy and Renewables and Portfolio Holder: Energy and Renewables which provided an update on the work being undertaken to develop a sustainable business case to develop a tidal energy project in the Mersey or Liverpool Bay.

 

          Mark Knowles, Lead Officer: Energy and Renewables, LCR Local Enterprise Partnership, informed Members that in November 2017 the LCR Combined Authority gave approval to commence the process to produce a skeleton outline business case to assess the technical and commercial viability of a tidal project in the Mersey or Liverpool Bay. This work was concluded in July 2018. Subject to approval, a full business case would be completed and prepared by November 2019.

 

          RESOLVED – That:-

 

(i)              the progress achieved to date in the development of the skeleton outline business case for the development of a tidal power project for the Liverpool City Region be noted;

 

(ii)             approval be granted to progress to the next stage of business case development for the project; and

 

(iii)           the allocation of £650,000 to fund the development of the business case be approved.

44.

Liverpool City Region Combined Authority Final Accounts 2017-18 pdf icon PDF 112 KB

To consider the report of the Treasurer.

Additional documents:

Minutes:

          The LCR Combined Authority considered a report the Treasurer which set out the annual statement of accounts for the LCR Combined Authority’s accounts for 2018-19. Members were informed that KPMG, the external Auditor, had circulated their audit of the LCR Combined Authority annual statement of accounts for 2017-18 under separate cover.

 

          Tim Cutler, KPMG, provided an overview of the audit of the annual statement of accounts for the LCR Combined Authority, which was detailed in the ISA 260 report. He reported that an unqualified audit opinion would be issued on the Authority’s financial statements, however the following significant risks where highlighted:-

 

·     Valuation of PPE (LCR Combined Authority and Merseytravel);

·     Pensions Liabilities (Merseytravel);

·     Faster Close (LCR Combined Authority and Merseytravel);

·     New Core Financial System (LCR Combined Authority and Merseytravel); and

·     Pensions Deficit Contributions (Merseytravel).

 

In conclusion, Tim Cutler also reported that a significant Value for Money audit risk had been identified which related to the quoracy issues experienced during 2017/18 for both the Overview and Scrutiny Committee and the Audit Committee. However, he noted that a number of changes were to be implemented to address the inquorate meetings of the Overview and Scrutiny Committee and the Audit Committee.  

 

John Fogarty, Treasurer, welcomed the learning from the audit process and placed on record his thanks to Tim Cutler and his team from KPMG for the robust audit which they had undertaken.

 

RESOLVED – That:-

 

(i)              the external auditors ISA 260 on the Annual Statement of Accounts 2017/18 of the LCR Combined Authority be noted; and

 

(ii)             the Annual Statement of Accounts 2017/18 of the LCR Combined Authority be approved.

         

45.

Combined Authority Appointments pdf icon PDF 13 KB

To consider the report of the Interim Head of Paid Service.

Minutes:

          The LCR Combined Authority considered the report of the Interim Head of Paid Service which recommended a number of appointments to external organisations and the Overview and Scrutiny Committee.

 

          RESOLVED – That:-

 

(i)              Metro Mayor S Rotheram, Councillor G Morgan and Councillor D Long be appointed to the North West Regional Leaders Board; 

 

(ii)             Councillor G Morgan be appointed the North West Employers Organisation; and

 

(iii)           the appointment of Members to the Overview and Scrutiny Committee by Constituent Councils as set out in the table below be agreed:-

 

Nominating Body

Members

Halton BC

Councillor Louise Whitley (Labour)

Sefton MBC

Councillor June Burns (Labour)

Liverpool City Council

Councillor Mary Rasmussen (Labour)

LCR Conservative Group

Councillor Sir Ron Watson CBE (Sefton)

 

46.

Public Question Time

Members of the public will be given an opportunity to ask questions which have been submitted in accordance with Meetings Standing Orders No.11. A period of 30 minutes will be allocated for this item and valid questions will be circulated at the meeting.

 

Members of the public who wish to submit questions are asked to contact Democratic Services either by:

 

Email: democratic.services@merseytravel.gov.uk

Telephone: 0151 330 1330

In writing: Democratic Services, Merseytravel, No.1 Mann Island, PO Box 1976, Liverpool, L3 1BP.

 

A pro-forma will be supplied which for this meeting must be returned by 5.00pm on Monday 23 July 2018.

Minutes:

          The Metro Mayor reported that no public questions had been received.

47.

Petitions and Statements

Members of the public who wish to submit a single petition or statement in accordance with Meetings Standing Orders No.11 are asked to contact Democratic Services either by:

 

Email: democratic.services@merseytravel.gov.uk

Telephone: 0151 330 1330

In writing: Democratic Services, Merseytravel, No.1 Mann Island, PO Box 1976, Liverpool, L3 1BP.

 

A pro-forma will be supplied which for this meeting must be returned by 5.00pm on Monday 23 July 2018.

 

Minutes:

          The Metro Mayor reported that no petitions or statements had been received.