2
PART 1
ITEM NO.
(OPEN TO THE PUBLIC)
________________________________________________________________
REPORT OF DEPUTY DIRECTOR ENVIRONMENT
________________________________________________________________
TO THE LEAD MEMBER FOR CUSTOMER AND SUPPORT SERVICES
ON 17th November 2008
________________________________________________________________
TITLE:
S106 Agreements in Irlam and Cadishead
________________________________________________________________
RECOMMENDATIONS:
That authorisation to expend capital be approved
________________________________________________________________
EXECUTIVE SUMMARY:
________________________________________________________________
BACKGROUND DOCUMENTS: (available for public inspection)
Report of Director to Lead Member Environment
Record of Key Decision made by Lead Member Environment
________________________________________________________________
ASSESSMENT OF RISK:
Low
________________________________________________________________
THE SOURCE OF FUNDING IS:
Section 106
_______________________________________________________________
LEGAL ADVICE OBTAINED:
YES
________________________________________________________________
FINANCIAL ADVICE OBTAINED:
Yes Environment Directorates Group accountant
____________________________________________________________
CONTACT OFFICER:
Steve Jones
________________________________________________________________
WARD(S) TO WHICH REPORT RELATE(S)
Irlam and Cadishead
1
________________________________________________________________
KEY COUNCIL POLICIES: please delete those not appropriate
Budget Monitoring
Community Strategy
Cultural Strategy
Environmental Strategy
Equalities
Health
Planning Strategy
Procurement Policies
Regeneration
________________________________________________________________
DETAILS:
1.1 The Greenspace Strategy and the draft Irlam & Cadishead Community Action
Plan 2008/09 have been consulted and compared with the parameters of the
S106 agreements.
1. 2 The Neighbourhood Management Team have also been consulted and this
in association with 3.1 above forms the basis of the suggestions and
recommendations contained herewith.
1.3 The sum total of the four agreements is £549,546 divided between capital
(£393,296 approximately) and revenue (£156,250 approximately)
1.4 To date full payment to the value of £507,313 has been received from the
developers for agreements 1, 3 & 4 and part payment for agreement no 2.
1.5 It is unclear when the remaining sum of £42,233 (the outstanding contribution
from agreement no 2) will become available.
1.6 This Directorate contacted the City Treasurer to request that he underwrites
the shortfall of payments due from the developers. Due to the present
economic climate the City Treasurer was obliged to refuse this request. The
correspondence is detailed as appendix 1
1.7 Tables 1 & 2 set out in detail the current S106 agreements within Irlam &
Cadishead.
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Table 1
Agreement
number
Ref
number
Development
location
Capital
Revenue
Total
1
Ref: 113
Former Akzo Nobel
site, Dean Road,
Cadishead
90,259
34,250
124,509
Amount
paid to
date
124,509
2
138
Land at Irlam Locks,
Cadishead Way,
Irlam
£59,467
£25,000
£84,467
£42,234
Legal parameters
Status
For the purposes of
local environmental
improvements and
improvements to local
equipped play areas
within Irlam and
Cadishead”
For the purposes of
open space and
children's play space
Previous discussions
have been held
regarding the use of
the contribution within
Cadishead Park
Taking into account
population catchments
as identified in the
Greenspace strategy,
the following sites are
eligible for investment
1) Prince’s Park
3
163
Land to the rear of
the Ship Public
House, Liverpool
Road, Irlam
108,804
43,000
151,804
151,804
Open space provision
and recreational
provision
2) Ferry Road open
space
Taking into account
population catchments
as identified in the
Greenspace strategy,
the following sites are
eligible for investment
1)Prince’s Park
2) Caroline St play
area
3
Table 2
Agreement
number
Ref
number
Development
location
Capital
Revenue
Total
4
135
Land at former
Kwiksave site,
Fairhills Road, Irlam
134,766
£54,000
188,766
Amount
paid to
date
188,766
Legal parameters
Status
For the purposes of
open space, children’s
play space and
environmental
improvements
Taking into account
population catchments
as identified in the
Greenspace strategy,
the following sites are
eligible for investment
1) Prince’s Park
2) Ferry Rd open
space
4
2.0
Options
2.1 The following options which expand on the above tables are presented for consideration
2.2 Agreement 1
2.3 Option 1 - to be utilised for the development of the Cadishead Park Master
plan.
2.4 Option 2. A request has also been made to improve a section of footpath
from Allotment Road to the rear of no 58 Dean Road which it has to be
assumed the Highway has some responsibility.
The suggested improvements consist of cutting back vegetation from the
sides of the path and applying herbicide. In addition to this work, this
Directorate has been asked to look at the situation regarding the old fashioned
lighting column situated along this path with a view to reintroducing this
facility.
2.5 Recommendation
That Lead Member approves the cutting back of vegetation along the pathway
and the reintroduction of the lighting column with the remaining monies being
used for option no 1. All payments from the developers have been made.
2.6 Agreement 2
2.7 Provisional approval has been given for the total amount (£84,467) to be
used for the development of the master plan in Prince’s Park.
2.8 Recommendation
That subject to all payments being made, Lead Member approves agreement
no 2 being used towards the Prince’s Park master plan. At present £42,234
has been paid by the developers which can be used immediately.
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2.9 Agreement 3
2.10 Option 1 - to be utilised for the development of the Prince’s Park Master
plan.
2.11 Option 2 - Undertake the following works at Caroline Street play area
• Install a self closing gate at the two entrances to the play area
• Remove the concrete panel fencing to the boundary of the play area and
the Council Offices on Astley Road for which permission from the Property
Management section of Urban Vision will be required as this fence is their
responsibility.
2.12 Recommendation
That Lead member approves agreement no 3 being used for the works
contained in option 2 with the remaining funds being used to implement the
Prince’s Park master plan. All payments from the developer have been made.
2.13 Agreement 4
2.14 Provisional approval has been given for the total amount (£188,766) to be
used for the development of the master plan in Prince’s Park. All payments
have been made
2.15 Recommendation
That Lead Member approves agreement no 4 being used towards the
Prince’s Park Master plan.
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Appendix 1
Steve,
I am unable to give any commitment to underwrite the expected s106 income without further details, as
follows :-

what are the overall estimated capital costs for the Princes Park and Cadishead Park
improvements, when will they be spent and how is it proposed that they will be funded,
incorporating the use of capital allocation approved or expected and s106 money ?

what are the additional revenue costs, particularly in realtion to the proposed amphitheatre at
Princes Park ?

how have the costs of the other proposed facilities, ie at Ferry Rd, Caroline St, Lords St and
Henley Ave, been factored into the use of s106 money or capital allocation ?

how certain are the future s106 payments in the current economic climate ?
In the event that I may still be unable to recommend the underwriting that you seek, it may be necessary
to ask you that if we need to use unsupported borrowing to underwrite the costs whilst s106 income is
expected, would the Environment Directorate be able to meet the resulting capital financing costs from
its revenue budget ? As a rough guide each £10 of capital cost is equivalent to £1 of capital financing
costs on revenue, so there would be a revenue cost of £58,000 for a full financial year on the overall
shortfall of £582,428 that you mention in the table. It may be that the timing of s106 receipts is such that
the full extent of this funding is not required and am happy to illustrate how it might work out with a more
detailed understanding of the expected timing of the various cash flows.
You may wish to discuss this latter issue with Dave Tinker and Mark Reeves as to whether it is possible
to prioritise this level of funding within the Environment revenue budget allocation. I have therefore
copied them and Karen Masheder into this reply for information.
John
From: Jones, Steve
Sent: 20 May 2008 12:24
To: Spink, John
Subject: Section 106 agreements Irlam & Cadishead
John
I am preparing a report concerning Section 106 agreements (S106) within the Irlam and Cadishead
areas. I have attached a draft copy. As you will see from the report the eight agreements will generate in
the region of £910,975 which is split between capital and revenue and if the report is agreed by our
Lead Member (Keith Mann) will deliver quality facilities to Prince's Park and Cadishead Park and will
upgrade Cadishead Park to District status.
Currently £241,297 has been paid to the city council leaving a shortfall of £669,678 and as the report
mentions is unclear when this shortfall will become available. The situation is that we may have to wait
several years for all payments to be made which would have a significant delay in the long awaited
improvements.
Can I request that the following S106's are underwritten by yourself in order for this Directorate to
proceed with the long awaited projects. I have not included agreement numbers 1& 3 as full payment
has been received and agreement number 8 does not relate to either Prince's Park or Cadishead Park
therefore there is no urgency with this agreement.
Agreement
number
2
4
5
6
Ref number
Total
Amount requested
£84,467
188,766
257,650
74,339
Amount paid to
date
£42,234
0
0
0
138
135
143
147
7
Total
165
19,440
0
19,440
582,428
Regards
Steve
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£42,233
188,766
257,650
74,339
TENDER APPROVAL – PROFORMA
For use in seeking the approval of the Lead Member for Customer and Support services to proceed with a
capital proposal
REPORT TO LEAD MEMBER FOR CUSTOMER AND SUPPORT SERVICES
Title of Scheme : S106 Agreements in Irlam and Cadishead
Recommendations (please append report to Lead Member for Directorate only if preferred)
That Lead Member approves the options highlighted in section 2
Scheme Details (please append report to Lead Member for Directorate only if preferred)
Please see attached report
Tender Details (please append report to Lead Member for Directorate only if preferred)
Estimated - Start Date :
January 2008
Estimated - End Date : march 2010
FINANCIAL DETAILS
Breakdown of Scheme Cost :
06/07
£000‘s
07/08
£000‘s
08/09
£000‘s
09/10
£000‘s
Total
£000‘s
Contract (Urban Vision)
Fees
Other - contingency
5
100
20
216
53
316
78
Total Cost
5
120
269
394
2008/09 only - Phasing of Capital Expenditure (£000‘s)
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
Jan
Feb
Mar
2
3
Note : The monthly cash flow above should be consistent with the contract start and end dates
shown above and should allow for normal time lapses which will occur between work being
done, claimed for, certified and paid, as well as retentions. Please consult your Capital
Accountant if you need assistance with this or any other part of this proforma.
Is Scheme In The Current Approved Capital Programme ?
Funding Identified :
06/07
£000‘s
Yes / No
07/08
£000‘s
Supported Borrowing
Unsupported Borrowing (see note 1)
Grant (Specify)
Capital Receipts Section 106
Other (Specify) Approved Capital
Programme
Total
08/09
£000‘s
09/10
£000‘s
Total
£000‘s
5
130
259
394
5
130
259
394
Other Financial Implications
Decision Lead Member Customer and Support Services
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Approved/Not Approved
SALFORD CITY COUNCIL - RECORD OF DECISION
I Councillor Bill Hinds
Lead Member for Customer and Support Services
in exercise of the powers in Paragraph 20.1b of Section 7, Part 4 of Contractual Standing orders authorise an
exception to Contractual Standing orders in respect of the procurement of the works contained within the attached
report:
The reasons are
The Council has entered into a partnership agreement in accordance with the principles of Re-thinking Construction
as detailed in paragraph 20. 1b of Section 7, Part 4 of Contractual Standing Orders.
Options considered and rejected are: Not applicable
Assessment of Risk : Low
The source of funding is:
£445,764 capital
secured funding from Section 106 agreement
Legal advice obtained
Yes………………………………………………………………………
Financial advice obtained
Yes…………………………………………………………….
The following documents have been used to assist the decision process.
Exception to Standing Orders –
Contact Officer Steve Jones.
Tel. No. 925 1016.
*
This matter is also subject to consideration by the Lead Member for Environment
and, accordingly, has been referred to that Lead Member/Director for a decision
*
This decision is not subject to consideration by another Lead Member/Director
*
This document records a key decision, but the matter was not included in the
Council's
Forward Plan and it has been dealt with under the emergency procedure
*
This decision is urgent and is not subject to call-in, in accordance with paragraph 5
of the Decision Making Procedure Rules.

The appropriate Scrutiny Committee to call-in the decision is the
Environment Housing and Planning Scrutiny Committee.
Key
*
Tick boxes at end of these lines, as appropriate.
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
Signed …………………………………..
Lead Member/Director
Dated …………………
____________________________________________________________________________________
FOR COMMITTEE SERVICES USE ONLY.
*
This decision was published on ………………………………………………………..
*
This decision will come into force on # ……………………………………………….,
unless it is called-in in accordance with the Decision Making Process Rules
Key
#
Insert date five working days after decision notice is to be published.
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