Agenda Item No 5
The Vale of Glamorgan Council
Scrutiny Committee (Corporate Resources): 15th October 2013
Report of the Managing Director
Capital Monitoring Report for the period 1st April to 31st August 2013
Purpose of the Report
1. To advise Scrutiny of the progress on the 2013/14 Capital Programme for the period 1st April 2013 to 31st August 2013.
That Committee endorse the following recommendations for reference to Cabinet and Council for approval as indicated below.
1. Llanmaes Flood Management Scheme - reduce the budget to £100k and include any future Welsh Government grant allocations for this scheme in the Capital Programme (requires Cabinet approval).
2. Sustainable Waste Management - increase the Capital Programme by £82k - funded from WG grant (requires Cabinet approval).
3. Skate park at Paget Road, Penarth - reduce 2013/14 budget to £50k (carry forward £124k to 2014/15). Amend title of scheme to 'Paget Road Public Open Space Improvements'. Include a further sum of £100k for this scheme in the 2014/15 Capital Programme upon receipt of next tranche of s106 funding for Penarth Heights (requires Cabinet and Council approval).
Reason for the Recommendations
1 - 3 To allow schemes to proceed in the current or future financial years.
2. Council on the 6th March 2013, minute number C942, approved the proposed Capital Programme for 2013/14.
Relevant Issues and Options
3. Appendix 1 details financial progress on the Capital Programme as at 31st August 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.
5. 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.
Visible Services and Housing
6. Llanmaes Flood Management Scheme - the existing allocation in the capital programme of £1.114m was based upon a capital bid made in September 2012. The funding of the bid was £947k WG grant plus Council match funding of £167k and this covered the whole of the scheme. WG however are approving the grant at each phase of the process and, to date, an approval of £71k has been received for the design phase of the scheme. Due to complications with the scheme the forecast for the design phase is nearer £100k. Once this estimate is firmed up it is anticipated that a further request for funding will be made to WG for the additional funding for this phase (this will also require an additional 15% match funding from Council funds which will be funded from revenue). Even though it is estimated that the construction phase will commence before March 2014, the current capital budget needs to be reduced to a more realistic spend of £100k in 2013/14. It is also hereby requested that the WG grant approval for the construction phase be automatically included in the Capital Programme once it is received.
7. Gileston to Old Mill - in addition to the £115k grant already carried forward from 2012/13, WG have recently offered the Authority a further £30k in order for design work on highway improvement measures to be completed. This would bring the total grant approval for this scheme to £280k to date (this includes an allocation for 2012/13). Approval has previously been given to include any additional grants for this scheme in the Capital Programme (Managing Director's emergency powers exercised 23/01/13) so appendix A has been updated accordingly. A further bid for funding of the construction phase of this scheme has been submitted to WG in the value of £2.726m. The Authority is awaiting a decision on this bid.
8. Sustainable Waste Management - the Authority has recently accepted the offer of £82k capital funding under WG's Sustainable Waste Management Grant. Historically this grant has been purely offered for revenue schemes, indeed there is an offer of £2.57m revenue grant funding for this year, but there is an element of the latest offer that relates specifically to capital. At the time of writing no decision has been made regarding use of the capital funding but it is requested that the £82k funding be included in this year's Capital Programme in order that procurement can be progressed once specification is agreed.
9. Skate park at Paget Road, Penarth - some £174k s106 developer funding for Penarth Heights has been earmarked to fund the establishment of a play area and multi-use court area at Paget Road, as well as a new skate park facility. Further funding of £100k is to be made available for public open space works on occupation of the 100th dwelling at Penarth Heights which is expected to be around December 2013/January 2014. This money is to be used towards the skate park element of this project (whilst the initial £174k is to be used for ground investigations, scheme design costs, retaining wall refurbishment as well as the play area/multi use court). Although ground investigations have been completed, it is decided that it would be advantageous to let the contract for all elements of the work as one. Due to delays with confirmation of the next tranche of funding as well as the need for consultation and planning consent for the works to the retaining walls this scheme is more complicated than had initially been anticipated. As such, though officers are still hoping that a contract can be let and an element of works can commence before March 2014, the amount that can realistically be spent would be a maximum of £50k. As such it is requested that the sum of £124k be slipped into 2014/15. It is further requested that the next tranche of £100k be added to the 2014/15 budget, once received. In order to embrace content of the whole scheme it is also requested that Members confirm the amended scheme title to be 'Paget Road Public Open Space Improvements'.
Variance between Actual Spend to date and Profiled Spend
10. 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 meet this criteria:-
11. WHQS Works - as outlined in the previous capital monitoring report (Corporate Resources 10th September 2013) there is always likely to be a variance in the WHQS expenditure as the extent of works required in a property is not known until the works commence. During August works on central heating/boilers and roofing works were behind profile whilst asbestos management costs have exceeded the initial profile.
12. Disabled Facility Grants - grant expenditure is behind profile because of a higher than usual dropout rate from applicants, thereby reducing the level of approvals. Currently there is a predicted shortfall of £200k on the annual budget. An update on this position will be brought to Committee in the coming months.
Resource Implications (Financial and Employment)
13. There are no direct financial implications of this report.
Sustainability and Climate Change Implications
14. There are no Sustainability and Climate Change implication
Legal Implications (to Include Human Rights Implications)
15. There are no legal implications.
Crime and Disorder Implications
16. There are no crime and disorder implications.
Equal Opportunities Implications (to include Welsh Language issues)
17. There are no equal opportunity implications.
18. 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
19. 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)
20. 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, Development Services, Visible Services and Housing, and the Chief Learning and Skills Officer.
Sian Davies, Managing Director