Agenda Item No
The Vale of Glamorgan Council
Cabinet Meeting: 18th January 2012
Report of the Leader
Capital Monitoring Report for the period 1st April to 30th November 2011
Purpose of the Report
1. To advise Cabinet of the progress on the 2011/12 Capital Programme for the period 1st April 2011 to 30th November 2011 and, where necessary, to request changes to the programme.
That Cabinet (and Council where indicated) approve the following changes to the Capital Programme.
1. Welsh Medium School, Llantwit Major - increase the budget to £851,000 (funded from the School Investment Strategy reserve).
2. Pendoylan Primary School - reduce budget to £255,000 (carry forward £33,000 into 2012/13). This will require Council approval.
3. Castleland Renewal Area Office Refurbishment - reduce the 2011/12 budget to £100,000 to reflect the full spend on the project.
4. Coldbrook Flood Risk Management - reduce this year's budget to £200,000 to reflect the amount of expenditure that can be achieved. The 2012/13 budget is included in the Final Capital Programme Proposals report. This will require Council approval.
5. Llanmaes Flood Management - reduce the budget to nil (Welsh Government (WG) grant funding not available). This will require Council approval.
6. Rural Local Regeneration Programme, Business Plan II - reduce the 2011/12 budget to £20,000 (transfer £60,000 into 2012/13 and £120,000 into 2013/14). This will require Council approval.
7. Leisure Centre Refurbishment - reduce the budget to £25,000 (carry forward £1,975,000 into 2012/13). This will require Council approval.
Reasons for the Recommendations
1-7 To allow schemes to proceed this financial year.
2. Council on the 28th February 2011, minute number 956, approved the proposed capital programme for 2011/12.
Relevant Issues and Options
3. Appendix 1 details financial progress on the Capital Programme as at 30th November 2011.
4. For all schemes where it is evident that the full year's budget will not be spent during the year, the relevant officers will be required to provide an explanation for the shortfall and this shall be taken to the earliest available Cabinet.
Director of Learning and Development
5. Welsh Medium School, Llantwit Major - this scheme is projected to exceed its budget by some £58,000. This is due to several factors, such as additional groundworks and furniture, fittings and equipment costs. It is proposed that this sum will be funded from the School Investment Strategy reserve. A separate report will be brought to Cabinet to outline progress on this and the Barry Welsh Medium School project.
6. Pendoylan Church in Wales Primary School - the Authority has agreed a total contribution of £388,000 to the school's remodelling works. The sum of £288,000 has been approved for 2011/12 whilst a further £100,000 has been programmed for 2012/13. Delays on site at the school however have meant that the profiled expenditure for this financial year will fall slightly short of the £288,000. As such it is requested that the sum of £33,000 be slipped into 2012/13 in order to complete the contribution. This will require Council approval.
Director of Legal, Public Protection and Housing Services
7. Castleland Renewal Area Office Refurbishment - the costs on this budget have come in some £52,000 lower than originally estimated, and it is requested that the 2011/12 budget be reduced to £100,000 which reflects the full expenditure on the scheme.
Director of Environmental and Economic Regeneration
8. Coldbrook Flood Risk Management - this scheme has had to be re-assessed following a reduction in support from WG. The profiled expenditure for this project has been re-worked and, in agreement with WG, it is requested that the budget be reduced to £200,000 which is the maximum achievable for this financial year. Further funding has been included in the2012/13 budget, as detailed in the Final Capital Programme Proposals report.
9. Llanmaes Flood Management - it has become necessary to withdraw this capital budget as prospective grant funding from WG has not been forthcoming, due to a reduction in funding levels at WG. The Director for Environmental and Economic Regeneration will be bringing a separate report on flood management schemes to Cabinet shortly.
10. Rural Local Regeneration Programme, Business Plan II - this budget, for £200,000, represents the cost to the Council over the full 3 year life of this rural regeneration grants regime and as such should be allocated in the Capital Programme over the 3 years. Officers at the Cowbridge Old Hall, that administer the scheme, have estimated the requirement for this council match-funding as £20,000 for this year (efforts are still employed in completing Business Plan 1 this year), a further £60,000 for 2012/13 and £120,000 for 2013/14. As such it is requested that Cabinet and Council approve the re-profiling of the budget over this period.
11. Barry Island Footbridge - approval has now been received from the Department for Transport of £500,000 towards the construction of a new footbridge. A condition of the grant is that the money be spent before the 31st March 2013 so the bulk of the works can be undertaken in 2012/13, funded from this WG grant. As it is still intended to commence the scheme this financial year, the Council's approved funding of £171,000 will be spent first. It is intended that the WG grant be included in the 2012/13 Capital Programme to proceed with construction of the bridge. A separate report will be brought to Cabinet on this scheme by the Director of Environmental and Economic Regeneration.
12. Leisure Centre Refurbishment - this £2 million allocation for major refurbishment works at our leisure centre buildings has been on hold, pending the appointment of the new Leisure Management Partner, in order that they can be party to the discussions on planned works. As the appointment has not yet been made, there is now insufficient time for this budget to be spent by year-end, though works are still required next year. It is therefore requested that Cabinet, and Council, approve the slippage of £1,975,000 from this year's budget into 2012/13.
Variance between Actual Spend to date and Profiled Spend
13. Cabinet have previously agreed that further information would be provided where schemes have a value of over £500,000 and show a variance of 20% or more between actual spend and the profile. The following schemes meet this criteria:-
14. Housing Improvement Programme (Window and Door Replacements) - work is proceeding well on site although expenditure has fallen behind the initial profiled budget due to longer than anticipated periods to manufacture the window units before they could be fitted. A full spend is still achievable on this budget by year-end.
15. Housing Improvement Programme (Roof Renewals) works have not progressed as anticipated as environmental, aerial and asbestos surveys were needed. Methods of working have now been agreed with tenants before starting on site. Only one area was on site before christmas whilst two others will proceed following christmas. At this stage it is still anticipated that a full spend will still be achievable by year-end, weather permitting.
16. Castleland Renewal Area - as Cabinet have previously been informed, there have been delays in obtaining homeowners' written agreement to the facelift scheme due to the large number of let properties in the Castleland ward. Despite works proceeding well on site now, there is some doubt that a full spend can still be achieved on this budget. As these works can be adversely affected by bad weather in winter months, it is suggested that Cabinet be kept informed if there is a need for slippage of this budget.
17. Vehicle Replacement Programme - as previously explained to Cabinet there had been delays in procuring vehicles through the All Wales Public Sector Framework Agreement which has resulted in delayed vehicle procurement. Vehicles to the value of £1 million have been ordered to date, though there is still a possibility that long build times for some of the vehicles mean that all may not necessarily be delivered by 31st March.
18. Appendix 2 provides non-financial information on capital schemes with a budget of over £100,000. Where a budget shown in Appendix 1 is more than £100,000 but is made up of several schemes that individually are less than £100,000, the scheme is not included in Appendix 2.
Resource Implications (Financial and Employment and Climate Change, if appropriate)
19. The financial implications are discussed against each scheme above.
Legal Implications (to Include Human Rights Implications)
20. There are no legal implications.
Crime and Disorder Implications
21. There are no crime and disorder implications.
Equal Opportunities Implications (to include Welsh Language issues)
22. There are no equal opportunity implications.
23. Effective monitoring assists in the provision of accurate and timely information to officers and Members and in particular allows services to better manage their resources.
Policy Framework and Budget
24. Part of this report should be referred to Council because it is contrary to and not wholly in accordance with the budget.
Consultation (including Ward Member Consultation)
25. Each Scrutiny Committee will receive a monitoring report on their respective areas. This report does not require Ward Member consultation.
Relevant Scrutiny Committee
Laura Davis, Senior Accountant, Tel. no. 01446 709249
The Directors of Learning and Development, Social Services, Environmental and Economic Regeneration and Legal, Public Protection and Housing Services.
Director of Finance, ICT and Property