Agenda Item No
The Vale of Glamorgan Council
Scrutiny Committee (Corporate Resources): 20th March 2012
Report of the Director of Finance, ICT and Property
Capital Monitoring Report for the period 1st April to 31st January 2012
Purpose of the Report
1. To advise Scrutiny of the progress on the 2011/12 Capital Programme for the period 1st April 2011 to 31st January 2012.
1. That the position with regard to the Authority’s 2011/12 Capital Programme be noted.
Reason for the Recommendation
1. 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 31st January 2012.
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. Foundation Phase Grant 2011/12, St Brides Major Primary School - a WG grant of £133K is included in the current capital programme. This is to be spent as a contribution to a larger refurbishment scheme that the school is funding. Our grant monies are being spent on the Foundation phase (key stage 1) and will allow the school to extend the foundation classrooms and external areas to allow for the curriculum to be fully delivered. There have been delays in the delivery of the scheme as the school delayed agreeing and issuing tender documents for the works and this had a knock on effect to our element of the scheme. In addition, our chosen contractor contacted the Authority two days before work was due to start on site and pulled out of the scheme, this then meant that we had to contact the second lowest tender and negotiate a new contract with some value engineering to the tender documents in order that the project could be achieved. As a result, even though the contract has now been awarded and works are expected to commence by the end of February, it is possible that the contract will extend a couple of weeks into April. It is anticipated that up to £40K of the works could potentially slip into 2012/13 and discussions between our officers and WG regarding the effect of this on the grant funding are on-going at the time of writing this report.
6. Llangan Primary School new car park - there have been lengthy delays with this scheme, to create a new car park for the school in order to minimise the likelihood of accidents along the road outside the school, where parents currently drop off and collect their children. Access to the proposed car park is required via a lane adjacent to the school. As Cabinet are aware, it has not been possible to determine ownership of this lane. This has led to major delays in progressing this 2010/11 scheme. Cabinet, on 1st February 2012, approved the progress of works on the car park, despite not proving ownership of this access lane, so long as indemnity insurance is taken out by the Authority. This is now in place so our internal Highways Contracting Unit can now progress the scheme. Given the delays however, it is now no longer possible for the works to be completed and so it has been requested that £118K be slipped into 2012/13 in order to complete the scheme.
Director of Social Services
7. Day Care Reconfiguration - Gardenhurst - refurbishment works at Gardenhurst have been carried out recently, including the reconfiguration of disabled toilets and installation of new shower facilities. A bid for 2012/13 capital funding for further health & safety works required at the property, such as new fire alarm and safe egress for clients and staff alike, was successful and the sum of £100K was included in the Initial Capital Programme Proposals Cabinet report on 16th November 2011. In order to minimise the disruption to clients within the centre who have been moved out once for this year's works to proceed, it has been decided to bring the most invasive works scheduled for 2012/13 back into this year, to avoid transferring the clients out once again. Council on 7th March 2012 have been asked to approve the transfer of £50K from the 2012/13 budget into 2011/12 in order for these works to be funded. The sum of £50K remains in 2012/13 to cover works that do not require that clients be decanted in order to proceed. At the time of writing this report the outcome of that request is not known so Appendix 1 has not been amended to reflect this transfer as yet.
8. Day Care Reconfiguration, Hen Goleg - various refurbishment works have been on-going but additional works have been incurred due to the need to replace the contractor for the scheme before completion of the scheme and some changes in the agreed original specification for the scheme. The revised final cost anticipated for this scheme is £138K and Cabinet have been asked to approve that the capital budget be increased by the additional £31K (to be funded from existing resources).
Director of Legal, Public Protection and Housing Services
9. Housing Improvement Programme (HIP) - in order to pursue the achievement the Welsh Housing Quality Standard, Officer delegations have been exercised to approve the inclusion of three additional budgets within the current year's Housing Improvement Programme. The approvals relate to sewage treatment works at Marcross, Environmental Improvements to cover fencing works at Awbery House and Major Damp Alleviation works across the Council's housing stock. Further virements have been required due to a number of difficulties with the roofing contractors, works detailing and weather conditions, the number of roofs expected to be completed as part of this year's HIP plan is expected to be approximately half of what was originally programmed, resulting in a reduction in the anticipated spend of some £615K. After a number of meetings with contractors, a new programme has been agreed to counteract the under spend on the roofing works by switching budget and resources to windows, doors and door entry systems which have now been accelerated. It has been estimated that an additional £347K can be spent on replacement windows, doors and door entry systems this financial year by extending current contracts. There has been a budget reduction of £17K on sheltered scheme boilers as works have been completed below budget. There is a further £220K allocation on Council Housing Adaptations, where shower installations have been accelerated, as well as an additional £50K approved for central heating & boiler replacements. These budget virements have been approved by officer delegations. Appendix 1 has been updated to reflect these additional budgets, and reflect an overall reduction of £15K on the whole HIP budget.
Director of Environmental and Economic Regeneration
10. Road Safety Capital Grant 2011/12 - WG has approved the additional grant of £12K for line and signage works at Lower Green Farm along the A48. The Chief Executive has exercised his emergency powers to include this grant in the Capital Programme in order that we are able to spend the money before the 31st March deadline. Appendix 1 has been updated to reflect this budget in the current year's capital programme.
11. Safe Routes in Communities 2011/12 - extensive works are being undertaken along Colcot Road and Port Road, Barry, to establish a footpath/cycle route from Barry Comprehensive School eastwards along Port Road. This work is being carried out by our in-house Highways Contracting Unit and is 100% funded from the Welsh Government's Transport Grant. The scope of the works has recently been increased with additional grant allocations such that the works are now to be extended to the top of the Barry Docks Link Road. Works are now proceeding well and a full spend of the £708K grant allocation is expected to be achieved by the end of March. The additional funding offer has been accepted and Chief Executive emergency powers have been exercised in order to include the funding in the capital programme. Appendix 1 has been updated to reflect the full approval.
12. Barry Waterfront Park & Ride - a recent bid for further grant funding for this scheme has now been approved by WG. It became necessary for an additional £83K to be requested due to unforeseen rock excavation costs, new drainage runs due to poor ground conditions and extension of time and demobilisation/remobilisation costs due to Network Rail delays. The additional funding offer has been accepted and Chief Executive emergency powers have been exercised in order to include the funding in the capital programme. Appendix 1 has been updated to reflect the full approval.
13. IT Equipment 2011/12 - included in this budget is an allocation of £50K for a new WiMax network. It has been decided that this is no longer a cost effective solution for mobile workers. This service is now covered by the new mobile phone contract at a lower cost to the Authority. In order to maximise expenditure on this budget however it has been agreed to increase expenditure on the current Internet Protocol Telephony budget by £50K. This project seeks to upgrade our core network switches in order to improve network and telephony performance.
Variance between Actual Spend to date and Profiled Spend
14. 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 criterion this month.
15. Housing Improvement Programme, Roof Renewals - as has been described earlier in this report, there have been delays encountered on all of our roof renewal contracts for various reasons. There is now no possibility of a full spend being achieved on this budget and so funding is to be transferred to the windows and doors Housing Improvement Programme budget instead.
16. Vehicle Replacement Programme - as has been reported previously, orders have now been placed for replacement fleet vehicles but the Fleet Manager is still awaiting delivery before payments can be made. Lengthy build-times on some vehicles have caused delays in delivery. He is still reporting that the majority of this budget should be spent though an element may need to be slipped into 2012/13 if vehicles are not received by year-end.
17. 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)
18. The financial implications are discussed against each scheme above
Legal Implications (to Include Human Rights Implications)
19. There are no legal implications
Crime and Disorder Implications
20. There are no crime and disorder implications
Equal Opportunities Implications (to include Welsh Language issues)
21. There are no equal opportunity implications
22. 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
23. 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)
24. 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
Sian Davies, Director of Finance, ICT and Property