Agenda item

To consider a report by the Flood Risk Engineer (copy attached) on the proposal for a coastal defence scheme in east Rhyl.

 

The Lead Member for Waste, Transport and the Environment introduced the East Rhyl Coastal Defence Scheme report (previously circulated) to inform members about a proposed coastal defence scheme in East Rhyl, which would provide an appropriate standard of flood protection for around 1,650 properties.

 

It was stated that the likelihood of severe flooding was more acute at East Rhyl than any other location in Denbighshire.  An investigation into the 2013 floods showed that properties could be flooded during a 1 in 20 year event. 

 

The East Rhyl Coastal Defence Scheme was the Council’s highest priority coastal defence scheme.  The cost of the project was estimated at £27.5million.

 

The scheme was to be funded utilising the Local Government Borrowing Initiative model.  The grant rate for coastal defence works was 75%, therefore, the project would be entirely funded by the Council, with 75% of the costs refunded by the Welsh Government (WG) over a 25 year period through the Revenue Support Grant.  Due to the size of the scheme, the Council would probably have to borrow the majority of the funding, although there was £2m of general funding currently earmarked for the scheme.

 

WG would not consider requests for an increase in the grant where costs had increased above the grant approved sum.  In order to achieve adequate cost certainty for the East Rhyl scheme, it was decided to procure the design and construction phases of the scheme using the Scape Public Sector Procurement Framework.  In August 2016, a delivery agreement was made with the Framework Partner, Balfour Beatty.  As a result of the early contractor involvement, there was confidence that the scheme could be carried through to completion within the current cost estimate. 

 

The Scape Framework supported the use of local supply chains.  This was controlled through a “Supply Chain Charter” and assessed against Key Performance Indicators (KPI’s).  For example, a minimum of 40% of the project expenditure should be within a 20 mile radius and 75% within a 40 mile radius.  Balfour Beatty had engaged extensively with local sub-contractors and suppliers, only looking further afield when resources were not locally available or could not provide value for money.

 

The scheme had previously been considered and supported by the Corporate Executive Team, Strategic Investment Group and Cabinet together with public drop in sessions which had been held in October and November 2018. 

 

The most significant risk associated with the project was that the terms of the WG loan would result in a long term revenue burden for the Council (25 years).

 

The proposed scheme involved the placement of 128,000 tonnes of rock armour in front of the existing sea defences as well as 600 metres of new sea defence wall and promenade.  Three improved beach access points would also be provided.   It was proposed that the construction would commence in April 2020 and be completed by December 2022.

 

In-depth discussions took place and the following points were raised:

·         Concerns were raised regarding the length of the loan and possible increase in interest rates.  It was confirmed that the interest rate on the borrowing would be fixed for the 25 year period.

·         The risk of the project running over budget was raised.  It was confirmed that a great deal of work had taken place with the contractor from the beginning of discussions of the project to attempt to alleviate an  overspend but they would never be able to eliminate the financial risk.  A Project Board was to be set up to oversee the scheme and to monitor the spending.  At this juncture, Councillor Joan Butterfield requested that Councillor Barry Mellor sit on the Project Board.

·         Members expressed concern regarding the displaced water and it was confirmed that the scheme would not increase the risk of flooding in other areas of the coast.

·         The question was raised as to whether sea defences were a statutory requirement.  The Flood Risk Engineer clarified that in terms of the Council’s statutory duty around coastal defence, Denbighshire County Council (DCC) were a Coast Protection Authority and had duties under the Coast Protection Act.  The statutory function was as a coast protection authority but did not necessarily involve protecting properties.  However, DCC took the opportunity to utilise the availability of funding for the defence scheme. 

·         Members queried whether work was to begin regarding other flood areas within Denbighshire.  It was confirmed that a number of at risk areas were currently being reviewed and would be brought to Members attention in the future.

·         Sand dunes as natural flood defences were raised.  It was confirmed that sand dredging had been looked into as an alternative process but that was not always as successful.   The Flood Risk Manager was a member of the Liverpool Bay Coastal Group and agreed to distribute minutes of the Group to all members.

·         TAN15 (Technical Advice Note – development and Flood Risk) – WG consultation was to commence at the end of September 2019 and the Flood Risk Manager would ensure Members were kept informed.

 

 

The Leader, Councillor Hugh Evans, stated this would be a priority for the Council.  He did express concern if the scheme were to go over budget as WG would not support the additional spend.  Therefore, he requested an additional recommendation that as a council, it would not accept the WG’s position that they would not provide extra financial support if the scheme were to go over budget. 

 

The Leader also stated that it should be made clear the council were  understanding the risk and commitment for 25 years.

 

The Leader moved that the following two recommendations be added to the report, seconded by Councillor Gwyneth Kensler:

 

(i)            Council confirms it understands the risks and the financial commitment involved in the project, and

(ii)          Council resolves to approach the Welsh Government for additional funding should costs overrun.

 

At this juncture, Councillor Joan Butterfield requested a recorded vote.

 

The Head of Legal, HR and Democratic Services stated that at least one sixth of the Members’ present would have to be in agreement with the recorded vote.  More than one sixth of those present stood in agreement to the recorded vote.

 

At this juncture (11.25 a.m.) there was a 25 minute break.

 

The meeting reconvened at 11.50 a.m.

 

The recorded vote took place as follows:

 

In favour of the recommendations – Councillors Mabon ap Gwynfor, Brian Blakeley, Joan Butterfield, Ellie Chard, Ann Davies, Gareth Davies, Meirick Lloyd Davies, Hugh Evans, Bobby Feeley, Tony Flynn, Rachel Flynn, Hugh Irving, Alan James, Brian Jones, Tina Jones, Gwyneth Kensler, Geraint Lloyd-Williams, Richard Mainon, Christine Marston, Melvyn Mile, Bob Murray, Paul Penlington, Arwel Roberts, Anton Sampson, Peter Scott, Glenn Swingler, Rhys Thomas, Julian Thompson-Hill, Graham Timms, David G. Williams, Eryl Williams, Huw Williams, and Mark Young.

 

Against the recommendations – None

 

Abstain – None

 

In favour – 33

Abstain – 0

Against – 0

 

Therefore, it was:

 

RESOLVED that:

 

(i)            Council confirms that it has considered the content of the Wellbeing Impact Assessment (attached at Appendix 1);

(ii)          Council supports the proposal to progress the scheme to the construction phase, using the grant aid funding model set out by the Welsh Government;

(iii)         Council delegates authority to a Coastal Defence Project Board to deliver the scheme, as long as the final costs does not exceed £27.5m.  The project should be brought back to Council should the final target cost exceed £27.5m;

(iv)         Council confirms it understands the risks and the financial commitment involved in the project; and

(v)          Council resolves to approach the Welsh Government for additional funding should costs overrun.