Nottingham City Council has approved spending of up to £160,000 on external legal support to complete outstanding land and rights matters linked to the second phase of the city’s tram network.
A delegated officer decision, published on June 17, confirms the council will continue using Freeths to help conclude the remaining Nottingham Express Transit Phase Two land and rights acquisition issues.
The work relates to historic land matters from NET Phase Two, the extension of Nottingham’s tram system to Clifton and Toton, which was approved more than a decade ago and opened to passengers in 2015.
Most of the land has now been acquired and compensation matters have been settled, but some remaining issues still need to be completed before the council can create a lease with Tramlink, the company operating and maintaining the tram network.
The legal work includes land transfers and registrations, negotiations with landowners and third-party legal representatives, communications with HM Land Registry, compensation payments, land registry searches, leases, land charges, settlement agreements, open space matters and land vesting matters.
The council says the work has taken longer and cost more than originally expected. The updated £160,000 figure exceeds the previously approved estimate of £99,999.
The increased cost is due to the quantity and scope of the work changing as more issues were identified, including matters arising from Land Registry sampling checks.
Some issues are described as more complicated than originally anticipated, requiring lengthy negotiations with different parties. The council also says the historic nature of the outstanding matters has made progress slower because some people originally involved have moved on or are no longer available, while other parties have been difficult to trace or slow to respond.
The council says the remaining work must be completed because, until the matters are resolved, liability for anything that happens on the land, as well as ongoing maintenance and health and safety responsibilities, remains with Nottingham City Council.
The decision notice also says the council will not be able to change the existing concession agreement to the required lease for the tram company to operate and maintain the tram line and system until the outstanding issues are dealt with.
The expenditure is classed as revenue spending and will be funded from the NET reserve. The council says the funding is available within existing NET project resources and does not create an additional pressure on the council’s General Fund.
Finance comments included in the decision notice state there are no additional recurring financial commitments arising from the decision and no adverse impact on the council’s Medium Term Financial Plan.
The council says appropriate financial controls remain in place to ensure spending stays within the revised approved limit, and that any further cost increases would require additional approval.
The original procurement process invited external law firms to quote for the work, and three bids were received. Procurement advice included in the notice says there are no procurement issues with continuing the contract.
Legal advice included in the decision says Nottingham City Council’s internal legal services do not have the capacity or resources to take on the work, and that because the appointed law firm is already engaged on the project it appears reasonable and sensible to continue using the current provider.
The council’s legal services recommended agreeing a revised cost with the current external law firm, preferably with a cap on cost if that can be agreed.
The decision was taken by Nicki Jenkins, Corporate Director for Growth and City Development, under delegated powers. The notice says operational decisions include procurement of services with a value of up to £299,999, and this decision falls within that limit.
The document also refers back to Nottingham City Council Executive Board decisions from July 2011, when approval was given for the NET Phase Two project and funding, and delegated authority was granted for the council to acquire, temporarily possess and use land needed to build, operate and maintain the NET Phase Two system.