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Agenda Item No

 

The Vale of Glamorgan Council

 

Scrutiny Committee (Corporate Resources) Meeting: 17th March 2015

 

Report of the Managing Director

 

Capital Monitoring Report for the period 1st April 2014 to 31st January 2015

 

Purpose of the Report

1.         To advise Scrutiny Committee of the progress on the 2014/15 Capital Programme for the period 1st April 2014 to 31st January 2015.

Recommendations

That this Committee endorses the following recommendations:

1.         That Cabinet notes the following changes to the 2014/15 Capital Programme:

  • Additional Education Asset Renewal Schemes - It is requested that Cabinet notes that Emergency Powers have been approved for this scheme.
  • Llanfair Primary Roof Renewal - It is requested that Cabinet notes that Delegated Authority that has been exercised for this scheme and notes that the £11k shortfall has been funded from the Education Asset Renewal Contingency Budget.
  • Housing Improvement Programme - It is requested that Cabinet notes that Delegated Authority has been approved to vary the scheme.

2.         That Cabinet approves the following changes to the 2014/15 Capital Programme.

  • A4226 Five Mile Lane Improvements Ground Investigation - It is requested that the 2014/15 Capital Programme be increased by £48,485.04, funded by a reimbursement from Welsh Government.
  • Replacement Network Switches Alps Depot - It is requested to increase this budget by £5K to be funded from a virement of £3K from the IT Storage Augmentation scheme and a virement of £2K from the Resources Asset Renewal budget.

3.         That Cabinet recommends to Council the following changes to the 2014/15 Capital Programme:

  • Penarth Learning Community - It is requested to increase the Penarth Learning Community scheme budget by £235K to be funded by a contribution from the School Investment Strategy Reserve.
  • Llantwit Major Library - It is requested that £4K is carried forward into the 2015/16 Capital Programme.
  • Ewenny Road Bridge - It is requested that £975K is carried forward to the 2015/16 Capital Programme.
  • Gileston to Old Mill - It is requested that £195K is carried forward into the 2015/16 Capital Programme.
  • Visible Services Highway Improvements Resurfacing - It is requested that £120K is carried forward in to the 2015/16 Capital Programme.
  • Ashpath Footpath Improvements - It is requested to carry forward £8K of this budget into the 2015/16 Capital Programme.
  • Cogan Hall Farm - It is requested that £10K is carried forward into the 2015/16 Capital Programme.
  • Byrd Crescent Community Centre - It is requested to carry forward £10K into the 2015/16 Capital Programme.
  • Italian Shelter Penarth - It is requested to carry forward £25K into the 2015/16 Capital Programme.
  • St Pauls Church - It is requested that £245K is carried forward into the 2015/16 Capital Programme.
  • Demolition of block at Court Road Depot - It is requested that £279K of this budget is carried forward into the 2015/16 Capital Programme.   
  • Civic Offices Partial Roof Replacement - It is requested that £269K of this budget is carried forward to the 2015/16 Capital Programme.

Reasons for the Recommendations

1-3 To allow schemes to proceed in the current or future financial years.

 

Background

2.         Council on the 5th March 2014 (Minute No. 883) approved the Capital Programme for 2014/15 onwards.

Relevant Issues and Options

3.         Appendix 1 details financial progress on the Capital Programme as at 31st January 2015.

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.

Learning and Skills

6.         Additional Education Asset Renewal Schemes - At Cabinet on the 22nd September 2014 it was recommended "THAT the 2014/15 Capital Programme be increased by £600K to cover additional Education Asset Renewal Schemes and request that the scheme details be reported to a future Cabinet Meeting.'

7.         It has been approved by Emergency Powers that of this £600K, £75K is utilised to fund external consultancy services, £462K is utilised to increase the budget of the Overboarding Ceilings scheme, £20K is utilised to increase the budget of the Victoria Primary School Emergency Roofing scheme and £43K is used to fund emergency/urgent works should they be required.  It is requested that Cabinet notes the use of Emergency Powers and the changes reflected in Appendix 1.

8.         Llanfair Primary Roof Renewal - It was approved by Delegated Authority on the 15th January 2015 that £19K of the Education Asset Renewal Contingency Budget would be vired to this scheme increasing the budget to £59K.  The estimated total amount of this scheme is £70K and it was also requested that should the £11K shortfall not be met from an underspend against the additional capital funding allocated to the Llanfair Demountable Scheme, a request will be made to draw down the £11K from the Asset Renewal Contingency budget.  It is requested that Cabinet notes the use of Delegated Authority and that the £11K shortfall now needs to be drawn down from the Asset Renewal Contingency budget.  This has been reflected in Appendix 1.

9.         Penarth Learning Community - It is requested to increase the Penarth Learning Community scheme budget by £235K to be funded by a contribution from the School Investment Strategy Reserve. This funding will be used to fund a trampoline, sensory room and ICT facilities.

10.      Llantwit Major Library - It is requested that £4K of this budget is carried forward into the 2015/16 Capital Programme in order to pay for retention.

Visible Services

11.      A4226 Five Mile Lane Improvements Ground Investigation - It has been confirmed that Welsh Government will reimburse the Vale of Glamorgan Council the direct costs associated with the appointment of CC Ground Investigations Ltd, up to £48.485.04 excluding VAT, based on the corrected tender sum of £40,404.20 plus 20% for any additional works that may be required during the investigation works.  It is, therefore, requested that £48,485.04 be added to the 2014/15 Capital Programme for this scheme.

12.      Ewenny Road Bridge - Network Rail is project managing this scheme which will not be complete until June 2015 when the Council will be required to make a contribution.  It is, therefore, requested that £975K match funding is carried forward to the 2015/16 Capital Programme.

13.      Gileston to Old Mill - There is projected expenditure against this scheme in 2015/16 for landscaping, fees, fencing, provision for a road safety audit and retention.  It is, therefore, requested that £195K is carried forward into the 2015/16 Capital programme.

14.      Visible Services Highway Improvements Resurfacing - £120K relating to this scheme is to fund resurfacing part of the Miskin interchange. However, Welsh Government requires a 12 week lead into preparing legal notices to close the slip roads and it is, therefore, requested that £120K is carried forward in to the 2015/16 Capital Programme.

15.      Housing Improvement Programme - It has been approved by Delegated Authority to vire £132K from WHQS - Rewires to WHQS-Roof Renewals and to vire £150K to General Improvements from WHQS - Asbestos Management.  The reason for the virements is because there have been a number of failing roofs that need urgent replacement this year and also a number of schemes have been carried out this year as a result of damp, cavity wall failure and EWI schemes that have been progressed.  It is requested that Cabinet notes the use of Delegated Authority. This has been reflected in Appendix 1.

Development Services

16.      Ashpath Footpath Improvements - Highways are unable to complete this scheme this financial year due to the current work programme.  It is, therefore, requested to carry forward £8K of this budget into the 2015/16 Capital Programme.

17.      Cogan Hall Farm - Due to the current work programme feasibility design has not yet taken place, this is now anticipated to take place in early March.  It is, therefore, requested that £10K is carried forward into the 2015/16 Capital Programme.

18.      Byrd Crescent Community Centre - This community centre is being used as a polling station during the May elections; this has meant that works have been delayed. It is, therefore, requested to carry forward £10K into the 2015/16 Capital Programme.

19.      Italian Shelter Penarth - The Council is going out to tender on this scheme at the end of February and the scheme will be contractually committed by the end of this financial year.  It is, therefore, requested to carry forward £25K into the 2015/16 Capital Programme.

20.      St Pauls Church - Following a recent marketing exercise, the Council is currently considering a proposal by a community group to re-use this building. However, further work is required by this group to establish whether the proposal is viable and will be the subject of a separate report to Cabinet in due course.   Therefore, the future of this property is unable to be determined within this financial year.  It is requested that £245K is carried forward into the 2015/16 Capital Programme.

Resources

21.      Demolition of Block at Court Road Depot - Due to hibernating bats in Court Road Depot an ecology survey will have to take place.  This survey cannot take place until May and it has, therefore, delayed the demolition. However, the scheme will be contractually committed by the 31st March 2015 and it is requested that £279K is carried forward into the 2015/16 Capital Programme.   

22.      Civic Offices Partial Roof Replacement - The tenders for this scheme are due back on the 2nd March 2015 and contractors are expected to be on site in April.  It is, therefore, requested that £269K of this budget is carried forward to the 2015/16 Capital Programme.

23.      Replacement Network Switches Alps Depot - This total cost of this scheme has increased to £30K. It is, therefore, requested to vire £3K from the IT Storage Augmentation scheme as this is underspent and the £3K is no longer required.  It is also requested to vire £2K from the Resources Asset Renewal budget as this has not been allocated to a scheme.

Variance between Actual Spend to date and Profiled Spend

24.      Cabinet has 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:-

25.      Ysgol Gwaun Y Nant/Oakfield - Amendments to programming/sequencing of works has resulted in actual expenditure that is less than the initial spend profile.  This does not adversely affect the final cost of the project.

26.      WHQS Works - There is always likely to be a variance in the WHQS expenditure as the extent of the works required in a property is not known until the works commence. Less has been spent than was projected for Asbestos Management. 

Resource Implications (Financial and Employment)

27.      These are contained within the body of the report.

Sustainability and Climate Change Implications

28.      There are no sustainability and climate change implications.

Legal Implications (to Include Human Rights Implications)

29.      There are no legal implications.

Crime and Disorder Implications

30.      There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

31.      There are no equal opportunity implications.

Corporate/Service Objectives

32.      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

33.      This report is a matter for Executive decision by the Cabinet. Certain recommendations will require the approval of Council.

Consultation (including Ward Member Consultation)

34.      Each Scrutiny Committee will receive a monitoring report on their respective areas. This report does not require Ward Member consultation.

Relevant Scrutiny Committee

35.      All

Background Papers

None

 

Contact Officer

Victoria Williams- Capital Accountant

 

Officers Consulted

The Directors of Resources, Social Services, Development Services, Visible Services and Housing, and Learning and Skills

 

Responsible Officer:

Sian Davies

Managing Director

 

 

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