REPORT FOR INDIVIDUAL EXECUTIVE DECISION MAKING MEETING 19 JULY 2004 HOUSING STOCK TRANSFER – Adoption Issues EXECUTIVE MEMBER(S): COUNCILLOR R LOWES: EXECUTIVE MEMBER FOR HOUSING EXECUTIVE DIRECTOR(S): JOHN RICHARDSON: EXECUTIVE DIRECTOR FOR ENVIRONMENT AND NEIGHBOURHOOD SERVICES PAUL SLOCOMBE: DIRECTOR OF RESOURCES PURPOSE OF THE REPORT 1. To highlight issues relating to adoption of carriageways / footpaths that have arisen during the Housing Stock Transfer process and make recommendations to resolve the problem. BACKGROUND AND EXTERNAL CONSULTATION 2. As part of the Housing Stock Transfer process boundaries have to be agreed for the land and property assets that will transfer to Erimus. In parallel with this, consultation has been undertaken with Transport & Design Services (Engineers) to identify the extent of adopted carriageways, footpaths or verges within the proposed sale boundaries. 3. Adopted highway is maintained by the Council from the General Fund and will not impact financially on the Erimus business plan. Where carriageway, footpaths, verges within transferring land is not adopted then the maintenance costs will fall on Erimus. 4. Certain areas have been noted where usual criteria suggest these should be adopted. Inspections have taken place and budget estimates provided to Housing where work is required to bring them up to standard. Environment (Engineers) would expect Housing to fund this work. 5. The schedule below lists costs identified to date which are the main areas of concern. There may be additional areas identified by the end of the mapping exercise and a contingency has been included in the total estimate. 6. Location 3 C’s Estates, Cargo Fleet Brambles Farm Hemlington Grove Hill (Easson Street / The Close) Netherfields & Park End Grove Hill 3 C’s Estates, Cargo Fleet Hemlington Description Carriageways & adjacent footpaths Carriageways & adjacent footpaths Carriageways & adjacent footpaths Carriageways & adjacent footpaths Cost Estimate £2,550 Carriageways & adjacent footpaths Sub Total £9,995 Stand alone footpaths Stand alone footpaths Stand alone footpaths £27,269 £7,664 £23,044 £57,977.00 Sub Total £6,633 £2,238 £1,969 £23,385.00 Contingency Future identification through land transfer process prior to transfer. £20,000.00 Engineers TOS to supervise work Estimate 10% £10,136 Total Estimate £111,498.00 7. Many of the carriageway / adjacent footpath require minor repair when considered on an individual basis, however, these total a sizeable sum. 8. The plan attached (3C’s estates) is illustrative of the problem. Council housing stock within the red verge will be sold to Erimus, properties in third party ownership hatched green are excluded from the sale. Also shown are existing adopted carriageways / footpaths (yellow / red) and verge (green). The situation exists where third party property is accessed via unadopted roads. 9. Certain unadopted areas are in an acceptable condition and formal adoption under the Highways Act 1980 is recommended. Authority to adoption will be sought through the Delegated Authority procedure on a periodic basis (Executive Director – (Environment & Neighbourhood Services). 10. In the case of the 3c’s example, Crinklewood and the footpath from Cinderwood can be adopted without work. The remaining streets require works totalling approximately £2,550 plus T.O.S. OPTION APPRAISAL /RISK ASSESSMENT 11. Options are: (A) Adopt prior to transfer subject to Housing (HRA) funding work This would provide a speedy solution and minimises any impact on the General Fund. (B) Adopt prior to transfer relaxing the view on requirement for work Unless additional provision is made, the costs identified by Engineers to undertake the work together with ongoing maintenance would fall on the existing highway maintenance budget or the capital programme both of which are under pressure. Any safety issues would have to be addressed. (C) Do nothing and pass responsibility to Erimus This would leave the maintenance and financial responsibility with Erimus. It is probably the least favourable of the options and not the best long term solution. (D) Seek agreement with Erimus to adopt subject to Erimus funding the costs post transfer This would avoid any financial impact on the General fund and achieve a solution in the longer term. Interim maintenance and financial responsibility would fall on Erimus but the period prior to adoption would depend on inclusion of funding within the business plan 12. Corporate Management team on 1 July 2004 considered the issue set out in this report and recommended that option (A) be pursued and funded from HRA reserves. FINANCIAL, LEGAL AND WARD IMPLICATIONS 13. If unadopted areas are within land sold to Erimus then liability would pass over, unless warranties agreed by the Council in the contract documentation prevent this. The main area of concern may arise from unadopted areas presently maintained from the HRA where ownership is not to transfer. 14. Certain private properties (most acquired under Right to Buy legislation) are accessed over unadopted areas. These owners, if aware of the position, may reasonbly expect that they would have access to their properties over highway maintained to a reasonable standard by the Local Authority. RECOMMENDATIONS 15. That necessary works are undertaken and the carriageways and footpaths be formally adopted. 16. That the costs be met from HRA reserves as present liability is that of Housing Services. REASONS 17. To bring the carriageways and footpaths up to acceptable standard and formally recognise their status as adopted highway. BACKGROUND PAPERS No background papers were used in the preparation of this report. AUTHOR: Andrew Arkle TEL NO: 729677 Dave Cousans 576960 Steve Binks 728156 ______________________________________________________ Address: Website: http://www.middlesbrough.gov.uk