Agenda Item No
The Vale of Glamorgan Council
Scrutiny Committee (Corporate Resources): 16th October 2012
Report of the Managing Director
Capital Monitoring Report for the Period 1st April to 31st August 2012
Purpose of the Report
1. To advise Scrutiny of the progress on the 2012/13 Capital Programme for the period 1st April 2012 to 31st August 2012.
1. That Members note that Scrutiny Committees have been requested to forward the following recommendations to Cabinet:
Day Care Re-Configuration, Rondel House - increase the budget by £50k (funded from a transfer of £25k from the Rhoose Road capital budget and a £25k contribution from revenue).
Pont y Werin and NCN88 - transfer £17k from NCN88 to Pont y Werin and increase the Pont y Werin by a further £6k (funded from SEWTA grant).
2. That Members refer the following request to Cabinet - IT Equipment - increase the budget by £4k (funded from the IT Fund).
Reason for the Recommendations
1-2 That Members are aware of the progress on the Capital Programme and of proposed changes to the Programme that Cabinet will be requested to approve.
2. Council on the 7th March 2012, minute number C950, approved the proposed Capital Programme for 2012/13.
Relevant Issues and Options
3. Appendix 1 details financial progress on the Capital Programme as at 31st August 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 are required to provide an explanation for the shortfall and this shall be taken to the earliest available Cabinet.
Director of Learning and Skills
5. Llancarfan and Gwenfo Demountables - the latest position in respect of this scheme is that one double demountable at Gwenfo Primary has now been replaced with a new double unit. At Llancarfan, one previously hired demountable unit has now been purchased, a second has been surveyed and deemed in good condition but needing some minor works. The third unit is to be purchased at the end of this financial year as works need to be undertaken outside term time. Half Term and Christmas holiday are not sufficient to complete the works before pupils return. As such, the works programme for this element of the scheme anticipates contractor appointment during December, ground works during February and delivery of the new unit in March, to be completed during the Easter school holidays. This is a very tight timescale and slippage may be requested as necessary.
Director of Social Services
6. Day Care Re-Configuration, Rondel House - works are needed to transfer the servicing of the kitchens at Rondel House to a new electricity supply. Works are anticipated to cost £50k on top of the existing budget (which was slipped from last year's budget to cover final costs on refurbishment works). It is proposed to fund £25k of the costs from a contribution from revenue budgets whilst it is proposed that the balance be transferred from the approved capital budget for the upgrade of Rhoose Road Respite Home, where it has been determined that it is not feasible to carry out the planned extension work within the budget available due to complications with drainage.
Director of Visible and Housing Services
7. Structural Repairs of Eastern Shelter Public Convenience Block - Cabinet (29th February 2012) approved the inclusion of a successful capital bid for £55k in both 2012/13 and 2013/14 for structural repairs to the public convenience block behind Barry Island's Eastern Shelter. Officers have reported incidents of structural failure of the concrete structure of the Eastern Shelter, with sections of the concrete breaking up and falling onto public open space on the promenade. There is now a serious concern that the Eastern Shelter needs structural repairs and that unless works are undertaken soon it will be a risk to public safety. Areas underneath the shelter have been cordoned off in order to reduce the risk of injury. As the shelter is a listed building WG must give Listed Buildings Consent (LBC) before works proceed. There are certain exceptional circumstances whereby works can proceed ahead of LBC, such as 'in the interests of safety or health or for the preservation of the building' and it is intended that works would proceed on this basis. A request for LBC will nevertheless be made, albeit retrospectively, once a structural survey is completed. Emergency powers have been exercised to approve the reallocation of all £55k of the 2012/13 capital budget for an immediate structural survey, to be carried out by structural consultants (estimated at £30k), and the urgent works to the shelter. In addition, a further £30k will be needed from the 2013/14 allocation for these works and approval has also now been given for this sum be brought forward from the 2013/14 budget into the 2012/13 Capital Programme. This is reflected in Appendix 2. It is proposed that the public convenience block will be addressed as part of the regeneration of Barry Island and will be included in discussions with Regeneration Officers at the Welsh Government.
Director of Development Services
8. Pont y Werin and NCN88 - South East Wales Transportation Alliance (SEWTA) have approved the transfer of £17k grant from the National Cycle Network route 88 budget to the Pont y Werin cycleway budget as well as awarding an additional £6k grant for the Oystercatcher element of the Pont y Werin scheme in order to reflect the true expenditure anticipated on this project. Cabinet will be asked to amend the capital budgets on these two schemes to reflect these approved changes.
9. Rights of Way Improvement Plan (ROWIP) - Cabinet on 9th July 2012 (minute C1780) approved the inclusion of a Countryside Commission for Wales (CCW) capital grant towards various improvements to the rights of way network into the Council's Capital Programme. The actual allocation from CCW came in higher than anticipated, at £39k. This sum is now included in Appendix 1.
10. Gibbonsdown Community Centre - under delegated authority, officers have approved the transfer of some £13k from the Barry Regeneration Partnership capital budget towards developing design and tender papers for this project to refurbish the community centre building. The scheme is anticipated to be funded from two separate Welsh Government grants from the Barry Regeneration Area (BRA) and Flying Start capital grant. Neither grant offer has formally been received by the Council as yet, though the BRA grant has initially been approved for the Gibbonsdown Children's Centre who originally applied for the grant. WG have advised that they will be happy to transfer the offer from the Children's Centre to the Council though this has not taken place as yet. A Flying Start grant offer is not expected until October. Tenders are due back at the end of October, by which time available funding for the scheme will be known.
Director of Resources
11. Miscellaneous Buildings Asset Renewal - within this allocation of £116k there is a sum of £18k which slipped from last year's Capital Programme for a replacement boiler at Wick pavilion. While carrying out the survey it was noted that there was no DDA compliant fire alarm and emergency alarm to the toilet at the site. These works are expected to cost £8k and funding for these works will be met from the DDA capital budget.
12. IT Equipment - Wide Area Network (WAN) - the allocation for this project, to roll out a replacement area network between the Authority's numerous networked sites was approved in 2011/12, part of which slipped into this financial year in order to complete the installations. A link between Llantwit Major Youth Centre and St Illtyd's Primary School was not identified as part of the original WAN contract but works must now be undertaken as an additional item, at a cost of £4k. It is therefore necessary to increase the available budget to cover this work which will be funded from the Council's IT Fund. This request will be referred to Cabinet for approval.
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 £500k and show a variance of 20% or more between actual spend and the profile. The following schemes meets this criteria:-
14. Disabled Facility Grants (DFGs) - costs are behind profile but it is expected that this position will have been rectified by the end of the year. There have been some temporary staffing difficulties in the Occupational Therapy team which have been addressed through a restructure of the team and recruitment is underway. A temporary therapist has been employed by the Private Housing Section in order to attempt to improve the situation. Officers are reviewing the situation to determine whether a full spend of the budget will still be achieved. Members will be informed as soon as this is determined.
15. Castleland Renewal Area - expenditure on phases 2a and 2b are behind profile because of inclement weather and the fact that additional unforeseen works had to be undertaken.
16. Coldbrook Flood Risk Management - detailed design has now been completed on this major flooding scheme but contractor appointment has been delayed. Highway Officers advise that the programme has slowed due to problems with obtaining consent from the Environment Agency to undertake works on Main River. At this stage a full spend is anticipated though Members will be advised if it becomes evident that this is no longer viable.
17. Highway Resurfacing (Local Government Borrowing Initiative) - expenditure is behind budget as although works are progressing well on site, smaller sites have been completed earlier than planned which has reduced costs to date. Weather permitting, a full spend is still anticipated.
18. Vehicle Renewals - as with last year, the Council's Fleet Manager is reporting lengthy delays with delivery of newly procured vehicles which has meant that expenditure is not keeping in line with the planned profile. Build times on some of the vehicles is far greater than anticipated.
19. Appendix 2 provides non-financial information on capital construction schemes with a budget of over £100k. Where a budget shown in Appendix 1 is more than £100k but is made up of several schemes that individually are less than £100k, the scheme is not included in Appendix 2.
Resource Implications (Financial and Employment)
20. The financial implications are discussed against each scheme above.
Sustainability and Climate Change Implications
21. One of the purposes of the Sustainable Development Working Group is to review the sustainability of major capital schemes. Wherever possible, the Council strives to reduce carbon emissions and improve energy efficiency and positively encourages waste reduction initiatives.
Legal Implications (to Include Human Rights Implications)
22. There are no legal implications.
Crime and Disorder Implications
23. There are no crime and disorder implications.
Equal Opportunities Implications (to include Welsh Language issues)
24. There are no equal opportunity implications.
25. 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
26. This report is in accordance with the Policy Framework and budget, referred to Cabinet where necessary.
Consultation (including Ward Member Consultation)
27. 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
The Directors of Resources, Social Services, Visible Services and Housing, Development Services, and the Head of Strategic Planning & Performance (Learning and Development).
Sian Davies, Managing Director