Agenda Item No
The Vale of Glamorgan Council
Scrutiny Committee (Corporate Resources): 8th February 2013
Report of the Managing Director
Capital Monitoring Report for the period 1st April to 30th November 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 30th November 2012.
That Members note that Scrutiny Committees have been requested to forward the following recommendations to Cabinet
1. Penarth Learning Community - increase the 2013/14 budget to £4.923m (funded from a transfer of £97k from the St Cyres Demountable budget plus an additional £60k revenue funding). Also, increase the 2015/16 budget by £3k (funded from revenue contribution). This will require Council approval.
2. Day Care Re-Configuration, Hen Goleg - include a budget of £37k (funded from a transfer £37k from the Disabled Access Improvements capital budget).
3. Alexandra Gardens Community Centre re-build - reduce the budget to £200k (carry forward £227k to 2013/14). This will need Council approval.
4. Replacement of mess room at Court Road - reduce the budget to £222k (carry forward £30k to 2013/14). This will need Council approval.
Reasons for the Recommendations
1-4 That Members are aware of the progress on the Capital Programme.
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 30th November 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 & Skills
5. Penarth Learning Community / St. Cyres Demountables - there are currently two separate budgets covering these projects but it is proposed that they be combined as one. The £97k was approved to enable pupils to be transferred in order to proceed with construction works. Additional works, at an estimated cost of £63k, relating to this element of the project include alterations to the swimming pool to convert into a hall. It is proposed that funding for these additional costs come from a revenue contribution. Therefore, it is proposed that the St. Cyres demountable budget of £97k be transferred into the Penarth Learning Community budget, along with an additional £63k funding from revenue (£3k of which will not be required until 2015/16 as it relates to a retention payment release), increasing the original Penarth Learning Community budget to £4.923m in 2013/14 and £4.683m in 2015/16.
Director of Social Services
6. Day Care Re-Configuration, Hen Goleg - refurbishment works began last year were not completed by the end of March 2012. As a significant proportion of the works are related to disabled access issues it is proposed to transfer £37k to this budget to cover the remaining works from the Disabled Adaptations (DDA) capital budget within the Resources Directorate.
Director of Development Services
7. Alexandra Gardens Community Centre Re-build - this part-Welsh Government (WG) grant scheme has been delayed due to problems with the initial design, meaning that a second tendering exercise had to be carried out. This process has now been completed and a preferred contractor has been appointed. Costs are projected well within the existing budget. The procurement delays however have pushed the planned construction period back several months. WG have been informed of this situation and are considering assenting to splitting their initial grant offer over two financial years, to match the profiled spend. In order to reflect the need to complete the scheme in May 2013 it will be requested that slippage of £227k into 2013/14 be approved by Council.
Director of Resources
8. Replacement of mess room at Court Road Depot - land contamination issues at the site have caused delays with progress on this scheme to demolish and replace the dilapidated mess room at the Council's Court Road Depot. A specialist report on the contamination was received and the issues raised therein have now been resolved. Whilst the demolition element of the scheme will be completed this year, and tenders have been issued for the re-build element of the scheme, there is now insufficient time to complete this work by the end of March. As such, it has been requested that the sum of £30k be slipped into 2013/14 in order to complete the works.
Variance between Actual Spend to date and Profiled Spend
9. 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 scheme meets this criteria:-
10. Penarth Learning Community - this new school project is currently running ahead of profile, as compared with the external Quantity Surveyors' initial projections. Now that Leadbitters have been appointed as the main contractor for this fixed price contract, it has been requested that an updated profile be submitted incorporating Leadbitter's own programme.
11. Coldbrook Flooding - due to issues with the tender process on this contract, it has been agreed that a re-tender exercise will be carried out. Clearly this will delay the progress of the scheme and WG have been approached to consent to a re-profile of the grant offer in order to allow the scheme to continue into 2013/14. Members will be advised of the outcome of these discussions as it is resolved.
12. Five Mile Lane Safety Improvements - expenditure on this scheme is slightly behind profile and this reflects the fact that the scheme to improve safety conditions at Sycamore Cross has been amended from a roundabout solution to a traffic signalling arrangement, thereby reducing costs. Because of this reason, there will be an underspend on this budget, to be quantified in January. WG will be informed of the outturn at that point.
13. Highway Resurfacing - Local Government Borrowing Initiative - this budget, to improve the condition of the Vale's highway network, is running ahead of the original planned profile as the contractor, Tarmac, is completing works faster than anticipated, with the good winter weather conditions to the end of November. A full spend is expected by the end of January 2013.
14. Vehicle Replacement Programme - as has been reported previously, delivery of vehicles on order are far later than anticipated. The majority of vehicles are however still anticipated by year-end.
15. Leisure Centre Refurbishment - the Council has approved a budget of £3.143m as a payment to Parkwood Leisure to manage various refurbishment works at the Vale's leisure centres as part of the new Leisure Management Partnership arrangement. The expenditure has fallen behind the profile and as such a new profile is being requested from Parkwood and Members will be advised should this require monies being slipped into 2013/14.
16. Castleland Renewal Area - expenditure is currently running behind profile as monies budgeted for loft insulation have not been required by householders who have mostly had these works done via utility companies seeking carbon emissions reductions. There is likely to be slippage on this budget in order to continue phased works next year. This will be quantified by the next monitoring report.
17. 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)
18. The financial implications are discussed against each scheme above.
Sustainability and Climate Change Implications
19. 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)
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
The Directors of Resources, Social Services, Visible Services and Housing, Development Services, and the Head of Strategic Planning & Performance (Learning and Development).
Sian Davies, Director of Resources.