Agenda Item No
The Vale of Glamorgan Council
Scrutiny Committee (Corporate Resources): 19th February 2013
Report of the Managing Director
Capital Monitoring Report for the period 1st April to 31st December 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 December 2012.
That Members note that Scrutiny Committees have been requested to forward recommendations 1 to 7 to Cabinet. That this Committee be requested to forward recommendations 8 and 9 to Cabinet and furthermore, that recommendations 7, 8 and 9 be forwarded to Council.
1. Extra Care / Elderly Mental Infirm (EMI) Feasibility - reduce the budget to nil.
2. Coastal Access Improvement - increase the 2012/13 budget to £92.8k (funded from a Countryside Commission for Wales grant of £11.5k and a revenue contribution of £1.25k from existing Development Services budgets).
3. Gibbonsdown Children's Centre - increase the budget by £10k (funded from a transfer from the Community Centre Asset Renewal capital budget)
4. Dyffryn Gardens Phase 1 - include a budget of £16k in the 2012/13 Capital Programme (funded from a transfer from the Alexandra Gardens Community Centre re-build capital budget)
5. Leisure Centre Refurbishment - increase the existing budget to £3.290m (additional £147k funded from a repayable Salix loan)
6. Five Mile Lane - reduce the budget to £1.123m.
7. Castleland Renewal Area - reduce the current budget to £1.26m (carry forward £445k to 2013/14). This will require Council approval.
8. Carbon Management Fund - reduce the budget to £168k (carry forward £75k into 2013/14). This will require Council approval.
9. Council Chamber Access Improvements - reduce the budget to nil (carry forward £250k into 2013/14). This will require Council approval.
Reasons for the Recommendations
1 - 9 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 31st December 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 Social Services
5. Extra Care / Elderly Mental Infirm (EMI) Feasibility - studies into a suitable site for the provision of a new EMI facility are on hold whilst an Older People's Accommodation Strategy is drafted which will inform the future development requirements. As a result the current year allocation of £50k will no longer be required. It is proposed that some of the under spend on the EMI budget be used to fund the works at Rondel House, in place of a proposed revenue contribution from Social Services.
Director of Visible Services and Housing
6. Coldbrook Flooding - as has been previously reported, this flood management scheme has been delayed due to re-design and problems with obtaining consent from the Environment Agency to undertake works on Main River. Evidently there will be now further delays in this complicated scheme as a re-tendering exercise is to be carried out. As the issues with this part Welsh Government (WG), part Welsh European Funding Office (WEFO) grant funded scheme are so varied, the Director of Visible Services and Housing has been asked to prepare a separate report on this issue in order to inform Members of the progress to date and the way forward with this project.
7. Gilestone to Old Mill - the Welsh Government have recently offered the Authority the sum of £250k in order to progress studies into the proposed highway improvement works between Gileston and Old Mill. As the money has to be fully spent by the end of March 2013 it was vital to mobilise the scheme as soon as possible and it was necessary to request Managing Director Emergency Powers in order to approve the automatic inclusion of the offer in the current year's Capital Programme. This is reflected in Appendix 1.
8. Housing Improvement Programme - as works are proceeding on the Welsh Housing Quality Standard it has become evident that the existing budgets need to be updated in order to reflect what is achievable on each budget by year-end. There is no issue with under spending on the total budget but each individual allocation needs to be reviewed. This will take place in the next month and will be undertaken via delegated authority to officers. Members will be advised of any changes in the next Capital Monitoring Report.
Director of Development Services
9. Coastal Access Improvement Programme - this scheme, partly funded by the Countryside Commission for Wales (CCW), involves improvements to various coastal pathways around the Vale. As a result of a mid-year request for additional funding to extend this year's works programme, we have accepted additional grant funding of £11,550 from CCW. As they require Council match funding on their grant offer, the Council is obliged to commit an additional £1,250 funding. It has been agreed that this be funded from a revenue contribution from within the existing Development Services budget. It is therefore requested that Cabinet approve an increase in this budget to £92,800.
10. Gibbonsdown Children's Centre - within the capital allocation for Community Centres Asset Renewal (£50k), the sum of £10k has been earmarked for works on kitchens/ toilets at this centre. In light of the major refurbishment works currently taking place at the centre, it is proposed that this £10k budget be transferred to the Gibbonsdown Children's Centre approval in order to reflect the full costs of the scheme. For Members' information, it was agreed to increase the current budget of this major refurbishment project by £17,205, as agreed by delegated authority on November 9th, 2012. This was approved in order to fully fund the full anticipated costs of the scheme, some £371k. This funding has been transferred from the existing Barry Regeneration Partnership Project Development Fund capital budget and is reflected in Appendix 1.
11. Dyffryn Gardens Phase 1 - there have been some final payments made to complete this Heritage Lottery Fund (HLF) grant funded scheme during this financial year. However, full and final grant funding from HLF was claimed last year, leaving a commitment of some £16k this year which is currently unfunded. The Director of Development Services has proposed that the funding for this £16k, which includes the final element of retention held on the glasshouse contract (completed in 2011/12), can be covered from a projected under spend within the Alexandra Gardens Community Centre re-build budget. The re-designed specification for this centre resulted in contract tender sums being well within the existing budget so the £16k to cover Dyffryn Gardens can easily be accommodated. It is therefore requested that Cabinet approve the inclusion of a £16k budget within the current Capital Programme for Dyffryn Phase 1, and reduce the Alexandra Gardens Community Centre re-build budget accordingly.
12. Leisure Centre Refurbishment - although a revised expenditure profile has still not been received from Parkwood Leisure works are proceeding within the various leisure buildings. Works are split between £1m improvement works and £2.143m maintenance works. The majority of the improvement works are now completed and the maintenance works are now being investigated. As at mid January the value of works completed was £804k. An additional sum of £147k has been accepted from Salix Finance in order to replace the central heating plant at Penarth Leisure Centre, in order to improve efficiency and reduce carbon emissions. Some enabling works for this installation will need to be funded from the existing refurbishment budget. The loan is repayable to Salix Finance, from revenue, over a 6 year period. In order to reflect the additional Salix funding it is requested that this budget be increased by £147k.
Director of Resources
13. Council Chamber Access Improvements - approval has recently been given to proceed with proposed changes to improve access to the Council Chamber for disabled users / visitors. As the works involved are disruptive it will be necessary to close the Chamber whilst works are underway. As such, it is proposed, in order to reduce disruption to Members and the Council process, to carry out the works during the 2013 Summer recess. As such, it is therefore requested that Cabinet and Council be requested to reduce the budget to nil and carry forward £250k into 2013/14 so works can proceed during the summer.
14. Carbon Management Fund - though several agreements for energy efficiency improvement measures have been made during the year, such as the Dock Office loft insulation, it has not been possible to fully commit this budget this year. Part of the funding for these works comes from Salix Finance, an external partner whose aim is to help Government to deliver cost effective energy savings. As the Council is committed to this scheme via an agreement with Salix the unspent funds will still be needed for future projects so it is requested that the current year budget be reduced to £168k and the remaining £75k be slipped into 2013/14). This will require Council approval.
Variance between Actual Spend to date and Profiled Spend
15. 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:-
16. Five Mile Lane Safety Improvements - expenditure on this scheme continues to be behind profile due to amendments in the agreed design for the proposed works to improve safety conditions at Sycamore Cross. The projected outturn costs on this scheme are now projected to be £1.123m and WG have been informed of this under spend. It is therefore necessary to request Cabinet to approve a reduction in this budget of £288k.
17. Castleland Renewal Area - as was stated in the previous Capital Monitoring Report (Corporate Resources, 30th January 2013), payments have been behind profile on this property face lifting scheme, due, in part, to low take-up of insulation works by householders who have already had these works undertaken by other means as well as delays on site due to bad weather. As a result it is requested that Cabinet (and Council) be asked to approve slippage of the projected under spend of £445k into 2013/14 in order to fund the next phases of the renewal area works.
18. Data centre - a separate Cabinet report is currently being prepared on this project, planned to rationalise the various computer server rooms situated within the Civic Offices. The establishment of one combined server room will reduce energy costs and carbon emissions but the project was approved on the basis that a successful business case support the proposal. This business case will form part of the Cabinet report. Delays in preparing this report have now meant that it will no longer be possible to carry out the works this financial year, though it could still potentially commence before March 2013. Appendix 1 of this report still projects a full spend on this project but this will not be achievable now. An update is awaited from the project Sponsor and a revised spend profile will be established in the upcoming Cabinet report.
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. This is particularly relevant for the Data Centre and Carbon Management Fund projects referred to in this report.
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. 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)
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, Director of Resources.