Agenda item

The Board considered a report of the Strategic Director – Environment and Economy which gave Members details of the proposed Agreement with Merseyside Integrated Transport Authority that would, in general, establish obligations for the Council when procuring and operating the Mersey Gateway project to consider the impact of tolling and road user charging policy on the Mersey Tunnels. 

The Board was advised that a proposed Agreement between the Council and MITA that would establish arrangements for consultation where the MITA would be invited to comment on particular aspects of the Mersey Gateway proposals as they were developed through procurement, construction and into operation. It was reported that the Council was also required to establish a liaison group to facilitate this consultation process. The proposed Agreement was attached to the report at Annex 1.

The Board was further advised that the need for the consultation arose out of the fears to MITA that there was a potential for Mersey Gateway tolling and road user charging policy and operations to have an adverse impact on Mersey Tunnels. The Agreement, did not bind the Council to accept the expressed views of the MITA that were made in response to specific consultation materials.   However, the Agreement did require the Council to take the consultation response into account in decisions that were taken, which were related to the consultation response.   In taking the response of MITA into account the outcome determined by the Council may not comply with the wishes of MITA and this failure to agree could prompt the matter to be resolved using the Disputes Procedure in the Agreement.    

              It was reported that in general terms the Council was required to consult the MITA during procurement on the draft tender documentation and the tender evaluation criteria, and the subsequent application of such criteria to the tender results. All information which was covered by a duty of confidence to the tenderers (the bidders) was excluded from this obligation.

It was also reported that towards the end of procurement the Council would be required to consult the MITA before exercising the following functions:-

(a)                           setting of the tolls within the initial toll range (under paragraph 1 of Schedule 11 of the Order);

(b)               the revision of toll ranges (under paragraph 7 of Schedule 11 of the Order);

(c)               variations to the classification of vehicles or classes of vehicles in respect of which tolls may be charged (under paragraph 7 of Schedule 11 of the Order);

(d)               the granting of exemptions from tolling, discounts or any other waiving or suspending of tolls or charges (or any part of such tolls or charges) under  article 41 of the Order or otherwise;

(e)               the entry into a concession agreement (under article 43 of the Order and the terms of any such agreement); and

(f)                 any function the exercise of which is likely to impact on the potential for interoperability between the Mersey Tunnels and the charging of tolls or charges for the passage of vehicles over the new crossing.

In conclusion, it was reported that most, if not all the information relevant to the obligation to consult the MITA was likely to be in the public domain.  It was reported that In order to support an effective operation of the Agreement the Council had requested that these consultation arrangements be protected by a separate Confidentiality Undertaking between the Council and the MITA.  The Mersey Gateway project team had proposed a draft Confidentiality Undertaking Agreement to officers at the MITA and had been advised that subject to the MGEB approving recommendation 1) above MITA would consider the Confidentiality Undertaking at their meeting in April 2011.   

RESOLVED: That

(1)          The Operational Director for Legal and Democratic Services, subject to reaching Agreement on a Confidentiality Undertaking (set out in recommendation 2 below), be authorised to enter into the Agreement with the MITA, as attached to the report at Annex 1;

(2)          The Chief Executive be authorised to agree and execute a Confidentiality Undertaking between the Council and the MITA to support the operation the above Agreement: and

(3)          The executed Agreement be reported to the Liverpool City Region Cabinet at the next available opportunity.