Agenda Item No 11
The Vale of Glamorgan Council
Scrutiny Committee (Corporate Resources): 19th March 2013
Report of the Managing Director
Capital Monitoring Report for the period 1st April to 31st January 2013
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 January 2013.
That Members note that Scrutiny Committees have been requested to forward recommendations 1 to 6 to Cabinet. That this Committee be requested to forward recommendation 7 to Cabinet. Furthermore, that recommendation no. 3 be forwarded to Council.
1. Penarth Learning Community - increase the budget by £80k (funded from a revenue contribution from schools).
2. s106 Penarth Heights Highways works - reduce the budget to £1K (carry £61K forward to 2013/14).
3. Coldbrook Flood Management Scheme - reduce the budget to £150K (carry forward £692K WG/WEFO/Council funding to 2013/14, to be spent only once WG/WEFO approval is received). This will also require Council approval.
4. Vehicle Replacement Programme - reduce the budget to £1.982M (carry forward £394K into 2013/14).
5. Barry Comprehensive School Cycleway - reduce the budget to £258K.
6. Pencoedtre Park Improvements - reduce the budget to £272K.
7. Datacentre - reduce the budget to nil (carry forward £450K into 2013/14).
Reasons for the Recommendations
1-7 That the Capital Programme for 2012/13 and 2013/14 be updated.
2. Council on the 7th March 2012, minute number C950, approved the original Capital Programme for 2012/13.
Relevant Issues and Options
3. Appendix 1 details financial progress on the Capital Programme as at 31st January 2013.
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.
Directorate of Learning and Skills
5. Penarth Learning Community - an offer of additional revenue funding for this project has been made by Ysgol Maes Dyfan and Ashgrove School in order to fund the provision of specialist equipment and resources for the new school. In order to procure these items it is necessary to increase the capital budget accordingly. As such, Cabinet will be requested to increase the existing budget by £80k.
6. Llancarfan and Gwenfo demountables - whilst the Gwenfo works are complete, due to tenders for the Llancarfan element of the scheme being higher than available funding, options are being reconsidered. It is likely that slippage will be requested in order to progress the scheme in the next financial year.
Directorate of Visible Services and Housing
7. Housing Improvement Programme - in order to achieve maximum expenditure by the end of the financial year a review of the Housing Improvement Programme budgets has been completed and agreed under officers' delegated authority. The amended budgets are now reflected in Appendix 1.
8. S106 Penarth Heights Highways works - the work required at Windsor Road and Terra Nova Way will require a full consideration of options and subsequently a detailed design. Whilst initial feasibility has been undertaken, changes to the sequencing of the traffic controlled junction at Barons Court are set to take place in February/March 2013. These trials will assist in informing the options for the Windsor Road/Terra Nova Way junction. It is important that these trials take place first, prior to money being spent on initial design work that may prove fruitless. Therefore it is requested that Cabinet approve slippage of £61K into 2013/14. In-line with other s106 agreements the scheme will be included within the Development Services Directorate in 2013/14.
9. Coldbrook Flood Management Scheme - 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, which has still not been granted. Evidently there will be now be further delays in this complicated scheme as a re-tendering exercise will need 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 shall bring a separate report on this issue to the next available Scrutiny Committee in order to inform Members of the progress to date and the way forward with this project. It is requested that Cabinet approve the reduction of the existing budget to £150k in order to reflect what can now realistically be achieved on this scheme this financial year. It is further requested to slip the remaining budget of £692K into 2013/14. Approval to spend this sum will be subject to WG and WEFO agreement, which is currently being sought.
10. Vehicle Replacement Programme - the procurement of vehicles has been behind profile for much of the year and it is now acknowledged that there is no chance of achieving a full spend on the budget. Although more vehicles have been ordered and are expected to be received by the end of March there will be an under spend on this budget as several Building and Highways vehicles are out to tender now and will not be received by the end of March. The Fleet Manager has estimated that a spend of approximately £1.982M can be achieved so it is necessary to request that the sum of £394K be slipped into 2013/14 to cover expenditure.
11. Pencoedtre Park Improvements - works on this part Welsh Government grant and part s106 funded scheme has been completed below budget and it is requested that Cabinet approve the reduction in the budget to £272K to reflect the outturn position on the project. The completed scheme included the establishment of a new 'Splashpad' water activity facility and refurbished play area with new lighting installations and a new toilet/changing room facility on site. The under spend results from savings achieved in procurement of the equipment for the facility.
Directorate of Development Services
12. Barry Comprehensive School Cycleway - this 100% WG grant funded scheme has been used to extend the current cycleway provision through the Butts area of Barry. All planned approved works have been completed below the £308K budget allocated from WG, due to cost savings, and they have been advised of the under spend on the scheme. It is requested that the budget be reduced to £258K to reflect the estimated out-turn.
13. National Cycle Network Route 88 (NCN88) and Measures to Assist Cyclists near Llanmaes - the South East Wales Transportation Alliance (SEWTA) have recently approved additional grant funding of £48.5K for the existing NCN88 scheme to extend the off road cycle route around the Rhoose airport roundabout to Penmark. In addition they have allocated £93K towards 'Measures to Assist Cyclists near Llanmaes' which will be used to upgrade the Llanmaes/Llantwit road junction to incorporate a toucan crossing. Works are commencing on site in early March and are anticipated to be fully spent by the end of March. The grant offers have been accepted and approval given to include them in the capital programme under Managing Director emergency powers, dated 20th February 2013. Each of these allocations have been included in Appendix 1.
Directorate of Resources
14. Data Centre at the Civic Offices - there have been delays in taking a report to Cabinet for this scheme which proposes the rationalisation of various server rooms within the Civic Offices in order to improve energy efficiency and reduce carbon emissions of the Council. These delays have now meant that no physical progress can be made on the scheme this financial year. Notwithstanding what is contained within that report it is requested that Cabinet approve the slippage of this budget into 2013/14 in order that the scheme be progressed.
15. 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)
16. The financial implications are discussed against each scheme above.
Sustainability and Climate Change Implications
17. 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 referred to in this report.
Legal Implications (to Include Human Rights Implications)
18. There are no legal implications.
Crime and Disorder Implications
19. There are no crime and disorder implications.
Equal Opportunities Implications (to include Welsh Language issues)
20. There are no equal opportunity implications.
21. 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
22. 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)
23. 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 Chief Learning and Skills Officer.
Sian Davies, Director of Resources.