The Assistant Director Infrastructure and Programmes

Part 1 / ITEM NO.

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REPORT OF

THE ASSISTANT DIRECTOR INFRASTRUCTURE AND PROGRAMMES

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TO CITY MAYOR ON 14 JANUARY 2013

TO THE ASSISTANT MAYOR FOR FINANCE AND SUPPORT SERVICES ON 15 JANUARY 2013

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TITLE:Transport for Greater Manchester Bus Priority Proposals

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RECOMMENDATIONS:

The City Mayor is recommended to:

1. Approve the City Council entering into the Bus Priority Scheme Delivery Agreement with full terms of the Agreement to be negotiated.

1. Provide delegated authority to the Strategic Director Environment and Community Safety, following terms of the Bus Priority Scheme Delivery Agreement being negotiated and agreed, to sign and affix the Common Seal of the City Council to the Bus Priority Scheme Delivery Agreement.

1. Approvethe appointment by the City Council of Birse Civils Limited as Principal Contractor for Phase One of the Bus Priority Scheme in Salford between Frederick Road and Old Clough Lane. Also approve the City Council entering into a construction contract with Birse Civils Limited, with full terms of the contract to be negotiated, to deliver the Works under Phase One of the Bus Priority Scheme, in accordance with the OJEU procurement process carried out by Urban Vision Partnership Limited (Urban Vision) on behalf of the City Council.

1. Provide delegated authority to the Strategic Director Environment and Community Safety, following terms of the contract being negotiated and agreed, to sign the contract between the City Council and Birse Civils Limited.

1. Approve the City Council placing the necessary Purchase Orders to Statutory Undertakers to divert utility apparatus affected by the Bus Priority Scheme.

1. Approve the City Council commencing a formal OJEU procurement process to select a contractor to deliver the works for Phase Two of the Bus Priority Scheme - Old Clough Laneto Newearth Road - and for Urban Vision to carry out and manage the OJEU procurement process.

1. Approve the City Council appointing Urban Vision to provide contract management, project management and site supervision for the Phase One works package of the Bus Priority Scheme. And full design, procurement management, contract management, project managementand site supervision for the Phase Two works package of the Bus Priority Scheme.

1. Ask the Assistant Mayor for Finance and Support Services to note the financial implications of this report.

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EXECUTIVE SUMMARY:

The Greater Manchester Bus Priority Scheme includes improvements to a number of key arterial routes within Greater Manchester, including the A580 in Salford. The A580 scheme includes the introduction of a range of bus priority, pedestrian, cyclist and general traffic management improvements along the A580 in Salfordbetween Newearth Road and Frederick Road which are all proposed to be delivered during 2013 and 2014. The Salfordelement of the Bus Priority Scheme will be constructed in two phases:

• Phase 1 – Frederick Road to Old Clough Lane
• Phase 2 – Old Clough Lane to Newearth Road

This report provides details of, and seeks approval to enter into, the proposed Bus Priority Scheme Delivery Agreement between the Greater Manchester Combined Authority (GMCA), Transport for Greater Manchester (TfGM) and the City Council, regarding the financial and funding arrangements for the implementation of the Bus Priority Scheme through Salford.

The report also seeks approval for the City Council to appoint Birse Civils Limited as Principal Contractor for Phase One of the Bus Priority Scheme in Salford between Frederick Road and Old Clough Lanein accordance with the OJEU procurement process carried out by Urban Vision on behalf of the City Council.

The report further seeks approval to issue all required City Council Purchase Orders to allow the diversion of all Statutory Undertakers plant affected by the Bus Priority Scheme.

Approval is also sought for the City Council to commence a formal OJEU procurement process to select a contractor for Phase Two of the Bus Priority Scheme - Old Clough Lane to Newearth Road and for Urban Vision to carry out and manage this OJEU procurement process.

Finally the report seeks approval to appoint Urban Vision to provide contract management, project management and site supervision for Phase One of the Bus Priority Scheme, the Frederick Road to Old Clough Lane works package. And full design, procurement management, contract management, project managementand site supervision for Phase Two of the Bus Priority Scheme, the Old Clough Lane to Newearth Road works package.

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BACKGROUND DOCUMENTS:

(Available for public inspection)

Note – The draft Bus Priority Scheme Delivery Agreement is currently a Part 2 confidential document, as GMCA and TfGM have yet to formally agree it.

Information and documents produced by Transport for Greater Manchester, available

at:

- “Greater Manchester Bus Priority Package – putting you in the picture, July 2012;

______- “Improving Bus Connections between Leigh, Salford and Manchester”, December 2011;

- Plans of A580 proposals.

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KEY DECISION:YES

DETAILS:

The Bus Priority Scheme will provide a dedicated 24 hour bus lane on the A580 East Lancashire Road between Ellenbrook Junction and Frederick Road. The proposals were identified within the AGMA Greater Manchester Major Transport Scheme Prioritisation and Funding Strategy 2009. Full scheme approvals were provided by the Department for Transport (DfT) on 27 March 2012 as a priority transport project within DfT’s £1.5 billion investment programme.

The Bus Priority Scheme will enhance the existing Greater Manchester bus corridors and provide improved bus services and infrastructure to enable bus services to run through the Regional Centre linking areas of deprivation and conurbations, improve employment, social and educational opportunities, access to leisure, shopping and key facilities. The proposals will also reduce bus journey times, improve punctuality and reliability, and help to reduce the carbon impact of future traffic growth

The City Mayor will be aware that the City Council and Urban Vision are working with TfGM to deliver two elements of the proposals through Salford which will provide routes from Leigh into Manchester City Centre, and on through the Oxford Road corridor, and extend routes out to Middleton and Parrs Wood.

The two elements of the Bus Priority Scheme in Salford are:

• Phase One which extends from the Old Clough Lane junction along the A580 and A6 to Frederick Road.

• Phase Two which extends from and includes the Newearth Road traffic signal junction and ties into the Phase One works west of the Old Clough Lane junction.

The Phase One package has been designed by Urban Vision and tendered by the City Council and construction could start early in 2013.

The Phase Two package will be designed by Urban Vision and will be subject to a formal OJEU procurement process by the City Council managed by Urban Vision.

During the course of the development of this Bus Priority Scheme during the past few years there has been in depth and detailed engagement with local ward Councillors. The ward Councillors from Worsley & Boothstown have consistently expressed reservations about the proposed new traffic signalled arrangement at the A580 junction with Newearth Road and Ellenbrook Road; their preferred solution being an “All Red” facility which stops all vehicle movements through the junction before allowing pedestrians to cross.

The solution which will be implemented is an option known as “Walk on Green” which balances the needs of all road users by allowing pedestrians to cross in stages with traffic held on a red signal, whilst permitting other unopposed traffic movements through the junction. This arrangement allows pedestrians to cross safely in stages whilst reducing vehicular queue lengths. The findings of several modelling exercises reveal the ‘Walk on Green’ set up to be the best technical solution and evidence from Transport Research Laboratory analysis suggests that there is no safety benefit for pedestrians crossing under ‘All Red’ as opposed to ‘Walk on Green’ control.

Furthermore, there are separate but related proposals to reduce the existing 50mph speed limit on the A580 to 40mph and once implemented this would further improve road safety along the East Lancashire Road.

Bus Priority Scheme Delivery Agreement

In order to deliver the Bus Priority Scheme on Salford’s highways, a formal Bus Priority Scheme Delivery Agreement is required between GMCA, TfGM and the City Council. Under the Bus Priority Scheme Delivery Agreement, TfGM will act as delivery agents for both GMCA and the City Council. Urban Vision will be appointed to deliver the Bus Priority Scheme as consultant lead, in accordance with both the City Council’s current contract with Urban Vision - the Development Services Partnering Agreement (DSPA), and the Special Requirements schedule forming part of the Bus Priority Scheme Delivery Agreement. The Special Requirements will require a separate side agreement between Urban Vision and TfGM since they are not currently covered by the existing DSPA alone.

The roles of the various partners are summarised as:

Role Within the Delivery Agreement
Greater Manchester Combined Authority / Scheme promoter and funder. Also, the procurer for the purposes of all traffic signals works, as GMCA is the Highway Authority for all GM traffic signal installations.
Salford City Council / Procurer of scheme as Highway Authority(excluding traffic signals works) with funding from GMCA. Client to Urban Vision and Contractors.
Transport for Greater Manchester / Delivery Agent, on behalf of both the GMCA and the City Council.
Urban Vision / The consultant lead, as per the Urban Vision DSPA and Special Requirements schedule.
Birse Civils Limited / Phase Onecontractor to be appointed to carry out the works. Phase Two contractor to be confirmed after OJEU procurement process has been carried out.

Under the terms of the Bus Priority Scheme Delivery Agreement, GMCA will pay the costs of the Bus Priority Scheme up to a maximum commitment; GMCA will in turn be funded via a grant awarded by the DfT. Under the Bus Priority Scheme Delivery Agreement, there will be no financial risk to the City Council arising from the Bus Priority Scheme delivery, we will however be responsible for paying the cost of any project variations that we specifically instruct into the project.

The City Council will provide a cost contribution to Phase One of the Bus Priority Scheme in the sum £219,727; this reflects already scheduled highway maintenance works to resurface Lancaster Road, LED lighting upgrade and additional carriageway surfacing works at traffic signalised junctions which can be delivered more cost effectively and with less disruption as part of the Phase One works package.

It is recommended that the City Mayor gives approval to the City Council to enter into the Bus Priority Scheme Delivery Agreement and delegates authority to the Strategic Director Environment and Community Safety, following terms of the Bus Priority Scheme Delivery Agreement being negotiated and agreed, to sign the Bus Priority Scheme Delivery Agreement between the City Council, GMCA and TfGM.

Bus Priority Scheme Phase One Tender Acceptance

On behalf of the City Council, Urban Vision carried out an OJEU procurement process for Phase One of the Bus Priority Scheme in December 2009 and Birse Civils Limited were subsequently identified as the preferred contractor for the works. The proposals were then put on hold due to Central Government funding cuts, and consequently the City Council was unable to formally appoint Birse Civils Limited.

Funding approval has since been granted by Central Government in March 2012 and Urban Vision has undertaken a detailed design and tender revalidation exercise on behalf of the City Council and TfGM and a revised tender price has been agreed with Birse Civils Limited in the sum of £5,293,269.

The City Council’s Corporate Procurement Team carried out an audit of the original procurement process in July 2012 and found that there were a number of flaws in relation to the procurement process, details of which are set out in the Procurement Implications section of this report. Legal Services subsequently carried out a risk assessment of the audit and details of their findings are set out in the Legal Implications section of the report. In summary, although the execution of the procurement procedure was not ideal, when the risks associated with commencing a new procurement exercise were considered, against the risks associated with continuing with the original procurement process the decision was made that the City Council should continue with the original tender submitted by Birse Civils Limited.

Approval to formally appoint Birse Civils Limited as Principal Contractor and to enter into a contract to construct the Phase One works is now required.

It is recommended that the City Mayor approves the appointment by the City Council of Birse Civils Limited as Principal Contractor to construct the Phase One works in the above amount and delegates authority to the Strategic Director Environment and Community Safety, following terms of the contract being negotiated and agreed, to sign the contract between the City Council and Birse Civils Limited.

Statutory Undertakers Purchase Orders

The Bus Priority Scheme requires British Telecom apparatus to be diverted to facilitate the widening of the A580 East Lancs Road eastbound between the M60 on-slip and M61 off-slip. The current approximate value of this work is £643,241.

It is recommended that the City Mayor approves the issue of the necessary City Council Purchase Orders, for this and any other Statutory Undertakers diversion that may be required during the works.

Bus Priority Scheme Phase Two OJEU Procurement Process

It is proposed that Urban Vision be commissioned by the City Council to design and procure Phase Two of the Bus Priority Scheme. Budget estimates for the proposals demonstrate that tendered prices are likely to exceed the current OJEU project threshold levels and that a full OJEU procurement process is required to be undertaken to ensure compliance with European Public Contracts Directives.

Approval to this formal OJEU procurement process will allow the City Council to post an OJEU Contract Notice, undertake a Pre-Qualification Questionnaire contractor selection process and formally select successful applicants to provide a tender for the construction of the works proposals. It is proposed that Urban Vision will carry out this work on behalf of the City Council.

The City Mayor is asked to approve that the City Council commence a formal OJEU procurement process to select a contractor for Phase Two of the Bus Priority Scheme - Old Clough Lane to Newearth Road and for Urban Vision to carry out and manage the OJEU procurement process.

Appointment of Urban Vision

This report seeks approval to appoint Urban Vision to provide contract management, project management and site supervision for Phase One of the Bus Priority Scheme, the Frederick Road to Old Clough Lane works package. And full design, procurement management, contract management, project managementand site supervision for Phase Two of the Bus Priority Scheme, the Old Clough Lane to Newearth Road works package.

The terms of Urban Vision’s appointment will be as set out in the Bus Priority Scheme Delivery Agreement section on page 4 of this report.

KEY COUNCIL POLICIES:

• Salford Sustainable Transport Strategy.
• Greater Manchester Local Transport Plan.
• Salford Unitary Development Plan.

EQUALITY IMPACT ASSESSMENT AND IMPLICATIONS:-

This Bus Priority Scheme will have positive equality impact; it will greatly improve access and journey reliability by bus between Leigh, Salford and Manchester, and as a result linkages to other key transport modes through interchange in both Salford and Manchester. It will provide a viable alternative to use of the car for both commuters and Salford residents. Bus stops and buses will provide raised kerbs and kneeling buses, in order to improve convenience for people with walking difficulties, or with wheelchairs or children’s buggies.

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ASSESSMENT OF RISK:

Medium – The Bus Priority Scheme Delivery Agreement has been drafted to minimise financial risk to the City Council. Contractual costs and risks will be managed by TfGM and Urban Vision to ensure that the project costs remain within the available funding. The key risk to the City Council would be if we require additional works to be added for which we would need to provide funding.

Moderate to Low – The procurement process undertaken to select Birse Civils Limited. Please see Procurement Implications section below for a full narrative on procurement. In summary, although the execution of the procedure was not ideal, when the risks associated with commencing a new procurement exercise were considered, against the risks associated with continuing with the original procurement process the decision was made that the City Council should continue with the original tender submitted by Birse Civils Limited.