Agenda item

To consider an update report (which includes two confidential appendices) by Councillor Barry Mellor, Lead Member for Environment and Transport regarding two potential coastal defence schemes for Central Rhyl and Central Prestatyn and seeking Cabinet approval to present the project to Council with a recommendation to fund the construction phase of both schemes.

RESOLVED that Cabinet –

(a)       confirms that it has considered the content of the Well-being Impact Assessments for each scheme (attached at Appendix 3a and 3b to the report);

(b)       supports the proposal to progress the Central Rhyl Coastal Defence scheme to the construction phase, using the grant aid funding model set out by the Welsh Government, and agrees to the proposal being presented to Council for a decision;

(c)        supports the proposal to progress the Central Prestatyn Coastal Defence scheme to the construction phase, using the grant aid funding model set out by the Welsh Government, and agrees to the proposal being presented to Council for a decision, and

(d)       delegates authority to the Coastal Defence Project Board to deliver the schemes.

Councillor Barry Mellor presented the report updating members on the development of the two potential coastal defence schemes for Central Rhyl and Central Prestatyn and sought Cabinet approval to present the project to Council with a recommendation to fund the construction phase of both schemes.

Cabinet had considered a similar report at their last meeting and had supported proposals to progress the two schemes and for their submission to Council for a decision.  The Corporate Director: Economy and Environment explained that when finalising the full business case, it was discovered that incorrect project costs for the Rhyl Central Coastal Defence Scheme had been included in the Cabinet report, with a figure of £58m used instead of £66m, and he apologised for the error.  It was noted that Cabinet had not made a funding decision at their last meeting but it was appropriate that the correct financial position be reported back to Cabinet given the increased level of financial commitment as set out.  Cabinet’s attention was drawn to the fact that the two schemes were still worthy of council support in order to protect the towns of Rhyl and Prestatyn from flood risk.  85% of the total cost of the schemes would still be funded by the Welsh Government, and whilst work was ongoing to evaluate options for reducing the costs, the current assumption had been based on the maximum combined cost of both schemes of £92m.

Cabinet had considered the merits of both schemes at their last meeting and the importance of protecting the towns of Rhyl and Prestatyn from flood risk and subsequent devastation caused by flood events.  It was noted that both schemes had been fully costed and the error related to an incorrect figure being included in the Cabinet report which had been identified during subsequent checks and balances.  Having taken into account the update and corrected project cost for the Central Rhyl Coastal Defence Scheme, Cabinet remained of the view that both schemes were crucial to the security and sustainability of those towns for residents, businesses and tourism and that it was imperative that those towns be protected.

Councillor Gareth Sandilands was supportive of the projects but sought assurances regarding financial stability for the schemes going forward.  The Lead Member and officers highlighted the success of the East Rhyl Coastal Defence Scheme which had been completed well within budget and ahead of schedule.  A similar approach would be taken to the Central Rhyl and Prestatyn schemes with all aspects of costs being continually monitored by the contractors and the council.  All risks had been costed and included in the budget but it was assumed that not all risks would come to fruition and inflationary costs had also been built into the budget which may not be required.  Consequently, there was confidence in the budget provision for both schemes and assurance could be taken regarding their deliverability.

RESOLVED that Cabinet –

(a)       confirms that it has considered the content of the Well-being Impact Assessments for each scheme (attached at Appendix 3a and 3b to the report);

(b)       supports the proposal to progress the Central Rhyl Coastal Defence scheme to the construction phase, using the grant aid funding model set out by the Welsh Government, and agrees to the proposal being presented to Council for a decision;

(c)        supports the proposal to progress the Central Prestatyn Coastal Defence scheme to the construction phase, using the grant aid funding model set out by the Welsh Government, and agrees to the proposal being presented to Council for a decision, and

(d)       delegates authority to the Coastal Defence Project Board to deliver the schemes.