Agenda item

The report was noted.

Jonathan Burnes gave members an overview of the January to March and highlighted some of the key portfolio level summaries and the project and programme updates.

On the dashboard, members were advised that there is no overall change to the status, but there have been a few movements within staffing and resources for digital infrastructure. For Yr Egin delivery has moved from green to amber status.

On the risk register members were advised that there are currently 25 portfolio level risks, five  are red risks. There is no change from quarter three. Members were advised that the five red risks are around construction costs, TAN 15 which is the flood risk management maps, in year spend, slippage and delivery of benefits. Officers that they all have mitigations associated with them.

Members were advised that there were 4 amber risks which were closed since the quarter three reporting and these relate to the time frame of the end of current EU funding programmes which is completed. The unallocated £5.3 million of CDL funding which is now allocated through Neath Port Talbot Council for the skill centre operations of the PMO. That moved from the risks to the issues because Ian Williams has departed and the Co-opted members not attending programme and joint programme boards and joint committee, and they are attending, and officers continue to monitor those.

Officers advised that there are no red issues and the only red issue which was previously on there was Campus funding agreement that now has been signed and resolved, and that can come off the issues register.

In terms of the quarterly reports, there was an increase in jobs created from 567 from quarter three to 597 and investment has increased from £272 million to £289 million.

In terms of the construction impact assessment, members were advised that business cases have been written and they are now going into procurement to look at what the funding gap is from what officers thought it would cost to what it actually does cost.

Members were advised that the headline gap is £43 million but through the mitigations that are detailed in the report, it has now reduced to £12 million, and officers are still working on the mitigations on that residual impact.

Members were advised that the key mitigations are to secure additional funding, revisit the construction brief and opening dialogue with the contractors.

Officers explained that the projects identified as experiencing slippage are the waterfront, Yr Egin, digital infrastructure, campuses and support innovation low carbon growth. All of those are subject to the change management process and reporting them through the government arrangements accordingly.

Members asked about the benefits summary and noted that compared to the last report Pentre Awel was created 23 jobs, but the innovation matrix was not included before, and this is the first time it was in this benefits summary.

Officers explained that the Innovation Matrix is nearing its completion, and they have construction jobs created. Officers had thought they had reported some before, but the six that has been identified in this quarter are likely to increase again in future quarters. Officers explained that they can only report once the contractor and the subcontractors have reported their numbers of jobs created, particularly through construction and once it's into operation. Then it is about the organisations that reside within it and how they grow. Officers advised that these may have to be evaluated separately.

Members were informed that the innovation matrix is completed, and it is being fitted out internally for tenants to reside within it led by University of Wales, Prince St David.

Officers were asked if these jobs will be included in the benefit summary of the report or are they going to move somewhere else?

Officers confirmed that in terms of jobs created, they will just be accumulated in the report and more jobs will come through the pipeline for each of the projects as they as they get reported.

Members were advised that the 597 jobs include the ones from innovation matrix campuses and Pentre Awel from that quarter, quarter four.

Members noted that a line had been introduced in the report that hasn't been in previous reports in relation to the benefit summary on page 135. Which shows six additional jobs in the innovation matrix. Officers advised that it shouldn't be in the report because the innovation matrix is part of Swansea Waterfront business case, and it should be part of that project instead.

Officers believed that the officer that dealt with it was just highlighting that that was the addition. It is not part of Swansea Council's lead element. It is part of Trinity Saint David’s lead element. It should be the nine headline projects and programmes and officers will correct that.

Members asked what the mitigations officers are looking at for the 12 million pounds shortfall

Officers explained that the £12 million is an indicative figure and it hasn't moved on. Officers advised that in the last report they had still identified a £12.75 million gap and in terms of the key mitigations there are three. The first is securing additional funding which could be through the lead deliverer or through governments or through private sector. The second mitigation option is revisiting the construction brief and the third is delaying some projects and opening dialogue with contractors.

Officers advised that they are experiencing a lot more dialogue with the primary contractors and also with the supply chains because the subcontractors also have a lot more dialogue with the primary contractors because they don't make a lot basically and they want to make sure that they deliver in quality.

Members noted that in the benefits report there were no jobs targeted but jobs had been created in skills and talent and digital infrastructure and asked why this was.

Members asked if there was a way that they can have an updated figure, even if it's emailed to them about the jobs total, because 6.15% is quite low and noted that they were 3 months behind in reporting.

Officers explained that when the business cases were written, particularly for digital infrastructure and skills and talent, they were fully regional projects and cover all of South West Wales. Members were advised that these were enablers, and they didn't directly create jobs. Officers advised that the jobs are created through the other projects and programmes but because of a lot of work being done particularly for digital infrastructure and skills and talent, jobs are being created directly and indirectly through the projects and programmes.

Members were told that this is why jobs created will show up in the report but there is no requirement in those business cases to evidence that and they will be captured throughout the process.

Officers advised that in terms of the targets and the timing of reports, as soon as they go through joint committee, they are publicly available through Democratic services officers and Jon Burnes will make sure that they are the relevant projects as members will likely just want key, key summaries.

Members were also advised that for the reporting of some jobs must go through an evaluation to qualify what officers are saying. And this will make things harder to get exact figures and explained that even though it's at 6% officers know that number is higher, but it just hasn’t gone through the evaluations to qualify them.

Officers explained that if you are going to verify the claims made by people before you, particularly the indirect ones then the direct ones are claimable because there is an auditable trail.

For more indirect jobs created as a consequence of building, they have to go through an evaluation with the evidence to make sure that it's verified externally (Ideally), but it could be verified internally as well.

Members noted that they see this as 6% of jobs achieved. But the pubic may read it as 94% not achieved and asked if this could be seen as a negative for the project.

Members also asked does this reflect similarly to the issues with the Gross Value Added (GVA) in that it's quite hard to quantify?

Members used Yr Egin as an example of a building that has been up and running for a while and it's got 117 out of the 400 jobs. Members asked if Yr Egin phase 2 was really going to achieve the other 300 jobs when that's done?

Members asked if this a case of the numbers from the initial business are hard to achieve or if any of them realistically achievable because of all of the changes that have happened.

Officers advised that this is currently year eight and there was a false start with City Deal at the beginning and getting all of the business cases through the approval process, but it is now on track for delivery, officers believe they are realistically achievable.

In relation to evaluations, Officers have advised that they have done an evaluation, and it is the first evaluation of a city deal and it hasn’t been reported through any governance board.

Later this financial year members will see and be able to scrutinise the first evaluation, which is Yr Egin looking at the economic impact of Yr Egin phase one that will include jobs and various other things as well. they couldn't have evaluated during the kind of COVID lockdown, and they needed a clean operational year and therefore evaluated 22/23 as the operational year.

Members were also given as an example, Swansea arena which will need to have a year or two of operation before they can evaluate it. Officers explained that they are going to evaluate the arena to look at the wider economic impact, including jobs, jobs as part of that.

Officers hope that the evaluation framework will hopefully put to rest some of the concerns around the numbers because it will come through as buildings come into operation and the wider impact of those.

Members noted that the projects are making a massive impact in terms of regeneration and positivity for the region, across the region.

Members stated that they look forward to the evaluation on Swansea Arena because there are 25 full time jobs and note that there are lots of part time jobs other jobs that are around it in the Green Cafe.

Members felt that it will be critical for them to understand how that process is carried out because that is the whole basis of what the city deal is about and stated that it is incredibly important that that process is transparent and is also publicly available as well.

Officers advised that at a portfolio level, that they had held sone ‘Meet the City Deal’ events within the last quarter and noted that in Neath Port Talbot was the Margam Orangery event which had over 100 people in attendance. Part of the annual report will talk about the four Meet the City Deal events in Pembrokeshire, Carmarthenshire, Swansea and Neath Port Talbot.

Officers felt that they were extremely beneficial and successful.

Members were advised that the slipway and the pontoons in Pembroke Dock Marine are now starting to be used and a lot of the other projects within the Pembroke Dock Zone are now securing and leveraging funds through other mechanisms and officers were happy to see that pipeline of activity behind the infrastructure happening.

In terms of campuses, the funding agreement has now been signed and a re-profile is under way and since the report was published, there has been progression on the procurement process for Singleton phase one.

Members were advised that in terms of support and innovation, low carbon growth, the key areas are Bay Technology Centre is now just over 50% of occupancy and there's a pipeline of inquiries around the office space and lab space that they have available.

Officers advised that with the air quality monitoring project, there's a company called Ricardo who has done a review report, and they are presenting that to board and looking at what the next steps are.

Members were informed that Pentre Awel is progressing and there is over 2000 training weeks in the construction phase to date. They have 31 apprenticeships undertaken within the build and 44 new entrants. Pentre Awel are currently working on updating their business case, this will help them reprofile the economic, commercial and financial cases of their business case for zone one and future zones (2,3 & 4).

In relation to digital infrastructure, they have been awarded their first 5G investment fund which is linked with the campuses project, and this is considered by officers as an example of good cross fertilisation across the portfolio and it is on track for completion.

Officers advised that the dark fibre phase one procurement exercise is complete, and the preferred supplier has been appointed.

Members were informed that for the waterfront that the hotel developments were going to cabinet last week for decision to appoint a preferred collaborator around what is the Arena hotel.

Officers advised that there is lots of work happening with the 171 Kingsway around respective tenants.

Members were advised that the innovation matrix is progressing well and according to plan and they're doing the fit out now for the tenants to move in as soon as possible within the next month or so.

In relation to Yr Egin, members were advised that it is going on to phase two and are looking at what change notification change request is required for that and the solution. Officers are yet to receive anything formally from Trinity Saint David on that.

Members were also informed that for skills, they are now up to 19 pilot projects, which officers considered to be great especially because of the spread of it across all the different sectors with all the different training providers and private sector companies is phenomenal from an officer’s perspective.

The report was noted.