Planning & Transportation Committee 16 April 2013

Transcription

1 Committee(s): Date(s): Planning & Transportation Committee 16 April 2013 Subject: Crossrail Liverpool Street Utilities Corridor Public Report of: Director of the Built Environment Comptroller & City Solicitor For Decision Summary This report informs Members about a series of proposals relating to utilities in Liverpool Street as a consequence of the Crossrail construction project at that station. The new station structure below the street will leave insufficient space for utilities to remain below the road surface in the normal way, and so these utilities will have to be permanently relocated. It is proposed that this displaced apparatus should be relocated into a new Liverpool Street Utilities Corridor (LSUC), i.e. a pipe subway to be constructed beneath the south footway of Liverpool Street. Crossrail have agreed to construct the LSUC as the City s agent and at their cost with the City subsequently being responsible for its future maintenance and operation as the pipe subway authority. Crossrail have also agreed to pay a commuted sum intended to cover the City s on-going operational and maintenance liability for the LSUC. In order to achieve this outcome, under the City of London (Various Powers) Act 1900 the City needs to seek approval for the pipe subway from the Department for Business, Innovation and Skills. The City also needs to appoint Crossrail to construct and initially manage the pipe subway on its behalf, and agree for Crossrail to enter into agreements with utilities to place their apparatus in the pipe subway, subject to a commuted sum being agreed and paid by Crossrail to the City for future maintenance costs, and Crossrail meeting the City s reasonable technical construction and maintenance liability requirements. Recommendation(s) It is recommended that: An application to the Department for Business, Innovation and Skills seeking approval for the pipe subway in accordance with the City of London (Various Powers) Act 1900 be approved, and that all other statutory processes such as notice and consultation as required by that

2 Act are undertaken; Crossrail be appointed to construct and manage the LSUC, subject to all construction and administration costs being paid by Crossrail, and subject to Crossrail meeting the City s reasonable technical construction and maintenance liability requirements; The Comptroller and City Solicitor be authorised to enter into such other agreements with Crossrail and / or utility companies as he may consider necessary and appropriate to facilitate the above arrangements, subject to there being no adverse financial implications for the City Corporation, and ensuring that any such agreements are consistent with the statutory pipe subway arrangements for the rest of the network. Background Main Report 1. The Policy and Resources Committee considered a report in July 2011 on the increasing impact of utility congestion beneath the highway in the City. The report noted that this congestion could prejudice the future delivery of utility services to properties in the City and was not sustainable in the long term. 2. This report also examined the case for pipe subways, which are underground tunnels already used to hold utility apparatus under a number of City streets. The construction of further pipe subways was considered a possible solution to the problem of utility congestion because they assist with creating long term capacity, as well as helping to minimise traffic disruption because utilities can access their apparatus via the pipe subway itself rather than having to excavate the street. 3. In order for pipe subways to fall within the City s ownership and control, they have to be constructed under statutory powers vested to the City by the Secretary of State. Thereafter, these powers allow the City to: a. insist that utility companies use the pipe subway rather than install apparatus directly beneath the highway; and b. to charge the utility companies for use of the pipe subway in order to cover the City s operational and maintenance costs. Current Position 4. As part of their ongoing project liaison, Crossrail Limited advised the City Corporation that they need to permanently relocate almost all the utility apparatus from under the western end of Liverpool Street in order to proceed with construction of the station in that location. This was because the station s new underground structure would leave insufficient space for utilities to remain buried under the road surface in the normal way. 5. The volume of affected equipment was extensive (in the region of 22 telecommunication ducts, 18 power cables and two water mains), and simple service diversions using other streets were not possible due to the shallow depth of the London Underground tunnels in Blomfield Street and Old Broad

3 Street. These structures restrict the room available for underground plant, and placing this volume of utility plant on top of the tunnels would require raising the road surface level by more than half a metre, affecting traffic, pedestrians and adjacent premises to an unacceptable degree. 6. Several options were considered by Crossrail in trying to solve this problem, but the option of relocating the displaced apparatus into a new utility corridor beneath the south footway in Liverpool Street was found to be the only feasible design solution. However, since Crossrail Limited is expected to dissolve as an entity once Crossrail construction is completed, another body would have to take responsibility for what the City Corporation would classify as a pipe subway. 7. Given that the City Corporation already operates 6km of pipe subways in the Square Mile under the provisions of the City of London (Various Powers) Act 1900 (and, in respect of former GLC pipe subways, under the London Government Reorganisation (Pipe Subways) Order 1989), the most apparent solution would be for the City to take on this responsibility. However, this would have to be subject to Crossrail constructing, operating and maintaining the pipe subway as the City s agent for the duration of the overall Crossrail construction project, and at no cost to the City. Options 8. There appear to be no other feasible construction solutions to the diversion of this volume of utility plant other than to relocate it to under the south footway of Liverpool Street. Alternative service diversion routes such as along Blomfield Street are rendered implausible due to the existance of other underground structures and the volume of equipment involved. 9. With the construction of a pipe subway in Liverpool Street to contain this equipment, the City has the long term benefit of the functionality of a pipe subway, constructed and maintained at nil cost to itself, with additional future utility spare capacity built into the design, which can be accessed without disrupting traffic through excavating the road. 10. Historically, utilities have found the City to be efficient and effective in operating the existing pipe subway network, and this option offers a mechanism for ensuring that the interests of the utilities are secured by the extension of that network, governed as it will be by a tried and trusted statutory framework. Proposals 11. Although completion of the Crossrail project itself is not expected until 2018, the utility corridor will be completed later this year, and Crossrail will want to relocate utility equipment into it as soon as possible thereafter. From that point onwards, it is intended that Crossrail will manage the utility corridor on the City s behalf until such time as the overall construction project is complete. After then, the City will undertake direct management in the same manner as the rest of the pipe subway network. Nevertheless, it is proposed that in order to ensure that any construction defects are remedied at no cost to the City, an

4 acceptable collateral warranty is sought from the contractor in the City s favour. 12. At least one utility has identified additional costs to it arising from this course of action, namely the City s ongoing fees in connection with maintaining and operating the pipe subway. Therefore, in order not to prejudice the current co-operation being provided by the utilities to Crossrail in connection with the relocation of their apparatus, and in order not to create a future financial liability for the City, Crossrail has agreed to underwrite this cost by way of a commutted sum. The value of this commuted sum is still to be finalised pending an agreed final construction design, but it is intended to cover an amount equivalent to the costs of operating and maintaining the pipe subway over its 120 year design lifespan. The negotiation of commuted sum will also take into consideration whether or not Crossrail is able to secure an acceptable collateral warranty from the contractor in the City s favour. 13. In order to exercise its pipe subway authority powers as proposed under the City of London (Various Powers) Act 1900, the City is required to obtain the approval of the Secretary of State at the Department for Business, Innovation and Skills. In addition, it needs to appoint Crossrail to construct and initially manage the pipe subway on its behalf, and agree to enter into agreements with Crossrail and / or utilities to facilitate the arrangements. 14. It is therefore proposed to adopt the arrangements set out above, and it is recommended that Members agree to: a. Seek approval of the Department for Business, Innovation and Skills in respect of the pipe subway in accordance with the City of London (Various Powers) Act 1900; b. Appoint Crossrail to construct and manage the Liverpool Street Utilities Corridor, subject to all construction and administration costs being paid by Crossrail, and subject to Crossrail meeting the City s reasonable technical construction and maintenance liability requirements; c. Authorise the City to enter into such other related agreements with Crossrail and / or the relevant statutory undertakers as may be required to implement the arrangements, subject to there being no adverse financial implications for the City Corporation, and ensuring that any such agreements are consistent with the statutory pipe subway arrangements for the rest of the network. Corporate & Strategic Implications 15. By facilitating the construction of the Liverpool Street station project by Crossrail, the City Corporation is contributing to the delivery of a key transport project of significant regional, London-wide and City of London importance. In addition, by meeting the longer term aspiration to extend the pipe subway network at no cost to the City, this proposal can be regarded as delivering a significant benefit to the City and in the public interest.

5 Legal & Financial Implications 16. These are included in the body of the report, albeit the exact value of the commuted sum is still subject to agreement between the City and Crossrail. The amount is dependent on the final design of the pipe subway which is still currently subject to change, but the necessary agreements with Crossrail will not be entered into without this amount being agreed first by both sides. Conclusion 17. The recommendation would achieve the public interest in securing additional pipe subway capacity at no cost to the City, as well as facilitating the effective diversion of essential utility equipment around such a key transport infrastructure project. Appendices Appendix 1: Proposed Liverpool Street Utilities Corridor Background Papers: Crossrail Act 2008 Ian Hughes Assistant Director (Highways) T: E: ian.hughes@cityoflondon.gov.uk