Agenda item

The Board considered a report of the Chief Executive which outlined proposals for the operational governance arrangements relating to the Mersey Gateway Project.

 

The Board was advised that the approaching appointment of a preferred bidder for the Mersey Gateway Bridge Project (the Project) required the creation of a body to operationally manage the Project over its lifetime (upwards of 60 years).  The Mersey Gateway Crossings Board (MGCB) would be a special purpose vehicle created for this and would act as agent for Halton Borough Council (HBC).  Together with HBC, it would be a counterparty to both the Project Agreement (the contract for the construction and operation of the crossing) and the Demand Management Participation Agreement (the “DMPA “) (the contract relating to the tolling). 

 

In respect of the MGCB the Board noted the:-

 

·       aims and objectives of the MGCB;

·       reasons for its creation;

·       set up and the powers and delegations,

·       tolling and payment streams; 

·       shadow running and TUPE arrangements;

·       oversight arrangements;

·       composition of the Board of Directors; and

·       the stakeholders involved.

 

The Board also noted the Draft Governance Agreement set out in Appendix 1 to the report.

 

          It was noted that agreement on this matter would give effect to the acceptance of the Conditional Funding Offer, as approved by full Council on 19 October 2011. The offer letter accepted by Council had set out the basis of the agency arrangement.

 

Members discussed the arrangements for the tolling and payment streams and the arrangements for the setting of local discounts within agreed parameters by the MGCB, acting as HBC’s agent. The Board agreed that this provision, detailed in paragraph 3.6 of the report, should be deleted and that any decisions on a local discount scheme should be referred to Council to determine. This matter would therefore be included in Schedule 1: Restricted Matters as a ‘Red’ Matter Categorisation ( a copy of Schedule 1 was attached to the report).

 

          It was further noted that Councillor Ratcliffe indicated that she was satisfied with the content of the report.

 

Reasons for the Decision

 

The reasons were set out in paragraphs 3.1 and 3.2 of the report.

 

Alternative Options Considered and Rejected

 

Direct management by the Council was precluded by the Government’s consent letter which was the basis for the financial approval. The proposed format of the Crossings Board was as a company limited by shares. This was judged to be the most favourable arrangement from the Council’s perspective. Alternatives examined and not put forward included a company limited by guarantee and a limited liability partnership.

 

Implementation Date

 

The Company is planned to be incorporated mid-2013. Of necessity it would operate in an accountable shadow form before that.

 

RESOLVED: That

 

(1)        the governance arrangements as described in the report and more particularly detailed in the draft Governance Agreement at Appendix 1 be approved in principle;

 

(2)        provision for the determination of a local discount scheme should be referred to full Council and the Schedule 1: Restricted Matters document be amended accordingly; and

(3)        the finalisation of this Governance Agreement be delegated to the Chief Executive, in consultation with the Leader of the Council, the Operational Director, Legal and Democratic Services and the Operational Director, Finance.