Contact: John Buckett, ext. 6599

1. Summary

1.1 The attached report sets out the proposed Environment Services capital programme 2002/03 to 2005/06 and revised programme for 2001/02. The Executive Member is being recommended to approve for submission to the Cabinet:

(i) the proposed revised 2001/02 transport capital programme;

(ii) the proposed new capital programme for the Environment Services for 2002/03 to 2005/06; and

(iii) that consideration by given to the setting aside of part of the unallocated locally resourced capital sum available from 2003/04 to help deliver council priorities, for Household Waste Recycling Centre developments.

and the Executive Member requests a report which proposes the allocation of the discretionary element of the single capital pot in March.

2. Reason

2.1 In order to clarify the organisation of the transport programme up to 2005/06 it is necessary to redefine the 2001/02 programme. This involves rescheduling a number of elements, some cost changes and the introduction of a new scheme at Emsworth, as well as bringing forward a contribution towards Doncaster Drove cycle route, Eastleigh from the 2002/03 programme. The proposed revised programme is set out in Appendix 1 in the attached report.

2.2 The starts programme for 2002/03 to 2005/06 has been derived from the funding available through local resources and through the Local Transport Settlement and resources carried forward from previous years. The proposed programme is set out in detail in Appendix 2 in the attached report.

2.3 There is a discretionary element to the single capital pot award to the County Council of £2.168 million credit approval in 2002/03. It is clear from the Local Transport Settlement letter (discussed in the attached report) and other correspondence from the Government that Hampshire's 'well above average' performance in transport was largely responsible for the County Council receiving the full discretionary sum.

2.4 It is anticipated that at least the pro-rata share of the £2.168 million discretionary sum will be allocated by the Cabinet at its February meeting and the Executive Member will determine its use at this stage. A report will be submitted to the March meeting.

3. Other Options Considered and Rejected

3.1 These are discussed in the attached report. Further options with respect to the single capital pot may be considered at the March meeting.

3.2 It is proposed to continue to fund the integrated transport and highways maintenance and bridges programmes on the same basis as the original Local Transport Plan allocation for the five-year period.

4. Conflicts of Interest Declared by the Decision Maker or a Member of Officer Consulted - Not applicable.

5. Dispensation granted by the Standards Committee - Not applicable.

6. Reason(s) for the Matter Being Dealt with if Urgent - Not applicable.

Approved by: Date:

Councillor K B Estlin

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Contact: John Buckett, ext 6599

1. Summary

1.1 This report proposes the capital programme for 2002/03 to 2005/06 (shown as Appendix 1). It also updates progress on and proposes amendments to the 2001/02 capital programme.

1.2 Prior to the Executive Member considering the capital programme, this report is being presented to the Environment Policy Review Committee to provide the Committee with the opportunity to comment to the Executive Member on the proposals.

2. Introduction

2.1 The Cabinet at its meeting on 17 December 2001 asked Executive Members to prepare proposals for:

(i) a locally-resourced capital programme for the four-year period from 2002/03 to 2005/06 within the guidelines of the current capital programme uplifted for inflation, and

(ii) capital schemes supported by scheme or programme specific Government grants and borrowing approvals for 2002/03 and those expected to be supported in 2003/04, 2004/05 and 2005/06.

2.2 For this service, the guidelines for the locally resourced programme are:

£'000

2002/03 12,279

2003/04 12,279

2004/05 12,279

2005/06 12,279

2.3 The guidelines include an addition of 2.5% for inflation, in line with the non-pay inflation assumption for the revenue budget, plus an additional provision of £200,000 to cover the impact on capital costs of the aggregates levy to be introduced by the Government from April 2002.

2.4 Executive Members may vary these guidelines between years provided their total four-year guideline is not exceeded and bunching of payments in any one year or front-loading are avoided.

2.5 In addition, Executive Members may supplement their guidelines with their services' own resources either by virement from their revenue budgets or by using their share of capital receipts obtained in 2000/01 as allocated by Policy and Resources Committee in July 2001. Executive Members may also anticipate in these proposals their share of those capital receipts that have actually been obtained so far in 2001/02.

2.6 The level of Government support for transport capital works for 2002/03 is £23,728,000 which is an increase of 1.5% over the equivalent figure for 2001/02. The indicative figures for 2003/04, 2004/05 and 2005/06 are unchanged from those previously provided, namely £20,636,000 for 2003/04, £21,013,000 for 2004/05, and £21,385,000 for 2005/06. In addition, the Government has provided a scheme specific borrowing approval in 2002/03 of £750,000 for preparation costs of the South Hampshire Rapid Transit (SHRT) scheme.

3. Transport Capital Programme 2001/02 - Progress and Proposed Amendments

3.1 In order to propose a programme for 2002/03 to 2005/06 in line with Government borrowing approvals, it is necessary to review the progress of the current year's programme. It has become apparent that the value of schemes which will start in 2001/02 will not exceed the original programme plus the additional provision specifically for flood damage. It is proposed therefore to amend the programme accordingly as set out in Appendix 1.

3.2 The proposed revised 2001/02 programme includes three additional allocations for funding, which can be met from within cash limits.

(i) Emsworth Rail Station Waiting Facilities

There are currently no waiting facilities on Emsworth Station and there is an opportunity to introduce a new shelter quickly at a cost of £15,000. It is proposed to have a new countywide programme for rail stations from 2002/03 (replacing the programmes in two strategy areas). It is proposed that an order be placed straight away so that the shelter can be introduced before the spring.

(ii) Doncaster Drove Cycle Scheme, Eastleigh

It is proposed to supplement this externally funded scheme with £41,000 from the 2001/02 capital programme to allow early implementation. This is effectively bringing forward part of the 2002/03 allocation for Eastleigh cycle schemes.

(iii) A30 Corridor South West of Basingstoke

It is proposed to increase the 2001/02 SCA allocation to £510,000 to cover the increased costs of the work currently being undertaken by Basingstoke and Deane Borough Council. In order to accommodate this increase, it is proposed that there be no allocation for this corridor in 2002/03.

3.3 The proposed revised 2001/02 programme is:

	£'000
Integrated Transport Hythe Pier Maintenance Structural Maintenance/Bridges Flooding Damage Total	15,686 400 12,970 5,051 34,107

3.4 Spending from Government approvals in 2001/02 is expected to be about £20 million, including expenditure on schemes started in 2000/01 being £12 million on structural maintenance and bridges and £8 million on integrated transport, Approximately £7 million of spending is expected to be carried forward into 2002/03 on structural maintenance (£1 million) and integrated transport (£6 million). It is estimated that £5 million of transport SCA resource will be carried forward into 2002/03.

4. Local Transport Settlement 2002/03

4.1 The Government has set up a new capital funding system for 2002/03 onwards. Previously, ring-fenced SCA was awarded to transport and other services (education and social services).

4.2 The new system, known as the single capital pot, awards credit approvals for each service and an additional 'bonus' sum based on performance. There is no longer any ring-fencing on awards, the authority has complete discretion on how it uses the funding as long as it is for capital works.

4.3 The Government Office for the South East (GOSE) wrote on 13 December 2001 with its assessment of Hampshire's LTP Annual Progress Report (APR) (submitted in August 2001) and its allocation of resources.

4.4 The letter congratulated the County Council on producing a good quality and well presented APR. GOSE confirmed that the capital allocations for Hampshire announced last year from the LTP were confirmed and that there were additional allocations for 2002/03 as follows:

£240,000 for the CIVITAS project;

£300,000 extra for integrated transport; and

£750,000 for fees on the LRT Fareham-Gosport-Portsmouth.

4.5 The letter and subsequent letter on the single capital pot revealed that progress on transport had been assessed as 'well above average' (the highest assessment grade) and that this assessment was largely responsible for the County receiving £2.168 million in extra discretionary funding. Although this is welcome recognition, it should also be noted that this is more illusory than real as the amount returned is lower than the 5% deducted to set up the discretionary fund in the first place.

5. Transport Resources 2002/03 to 2005/06

5.1 County Council transport schemes are funded by government either through specific grant and credit approvals (for schemes costing over £5 million) or through the general allocation of credit approvals in the Local Transport Settlement (for schemes costing less than £5 million).

5.2 The County Council had £110 million awarded under the LTP (with a further £2 million funding carried forward) to cover the period 2001/02 to 2005/06. £68 million was allocated for integrated transport and £44 million for highways maintenance and bridges.

5.3 Spending in 2001/02 is expected to be about £20 million (£12 million for highways maintenance and bridges and £8 million for integrated transport).

5.4 The new programme has been produced on the basis that there is now £32 million available for highway maintenance and bridges and £60 million for integrated transport for the four years 2002/03 to 2005/06.

5.5 Allowing for commitments already made in the 2001/02 programme and earlier, and the need to accommodate major scheme fees the credit approval funded proposed starts programme is as follows:

	£'000	£'000	£'000	£'000	£'000
	02/03	03/04	04/05	05/06	Total
Highways Structural Maintenance and Bridges	9,000	7,520	7,520	7,520	31,560
Integrated Transport	13,300	10,875	13,415	12,410	50,000
A3 Bus Priority Project	5,200	-	-	-	5,200
Total	27,500	18,395	20,935	19,930	86,760

This programme equates with the LTP resources for the four years of £92 million and takes account of spending within the four year period arising from schemes in progress at the end of 2001/02. No allowance has been made at this time for additional funding through the single capital pot discretionary sum. It is anticipated that at least the pro-rata share of the £2.168 million discretionary sum will be allocated by the Cabinet at its February meeting to the Environment Services and that the Executive Member will determine its use at this stage.

6. Major Transport Schemes

6.1 It is also proposed to introduce a number of major transport schemes in the four year period.

6.2 The SHRT Light Rapid Transit scheme (Fareham-Gosport-Portsmouth) has received government approval for funding support. Other major schemes for Chickenhall Lane Link Eastleigh, Botley Bypass, further stages of the A3 corridor and Strategic park and ride for the Southampton Area will be constructed in the four year period, if Government funding support is awarded. As well as these schemes, Stubbington Bypass will also be progressed for a start in 2006/07. The following table summarises the provision to be included in the capital programme.

	£'000	£'000
	Gross	Net
2003/04
SHRT Fareham-Gosport-Portsmouth	190,000	160,000
Chickenhall Lane Link	16,000	16,000
A3 Bus Priority Stage 3	6,860	6,860
A3 Corridor Bus Purchase	5,000	5,000
	217,860	187,860
2004/05
Strategic Park & Ride (Southampton Area)	6,000	6,000
A3 Bus Priority Stage 4	6,050	6,050
	12,050	12,050
2005/06
Botley Bypass	18,000	18,000
A3 Bus Priority Stage 5	6,420	6,420
	24,420	24,420

Note: SHRT scheme has been accepted for government funding support. Figures reflect overall local authority costs including expenditure to be met by Portsmouth City Council.

All other major schemes are subject to Government approval.

6.3 Funding for the above schemes for design and other preparatory work will need to be found from within the overall transport allocation until the schemes are accepted for government grant support.

7. Highways Maintenance and Bridges

7.1 The highways maintenance and bridges start allocation was boosted in 2001/02 to £13 million to help both with overall spending performance and to bring forward much needed maintenance and bridge repair work. A separate two year SCA allocation of £5.051 million was awarded for flooding damage repair works.

7.2 In order to keep within the approved limits for the five year period, highways maintenance and bridges is now programmed at £9 million in 2002/03 and £7.52 million per year thereafter.

7.3 There are concerns that this level of expenditure will not meet all emerging issues, in particular related to the bridge repair programme, where consequences of failure can be serious. Opportunities of co-ordinating maintenance schemes e.g. A334 at Botley and Curdridge will also not be possible.

7.4 As things stand, it will not be possible to increase the maintenance and bridge programmes without seriously affecting the integrated transport programme unless more funding is released.

8. Integrated Transport

8.1 The proposed programme is for £50 million for integrated transport in the next four years, together with £5.2 million for the Purbrook to Waterlooville stages of the A3 bus priority project.

8.2 It is not possible to fund further stages of the A3 scheme from within this allocation. It is intended to seek government support to enable the Waterlooville centre and Waterlooville to Horndean elements to be funded as major schemes, as set out above.

8.3 The remainder of the integrated transport programme is comprised of the ten area strategy programmes (based on programmes approved by the Area Strategy Panels) and countywide programmes and priority projects. Three new countywide programmes are proposed:

· HomeZones - following a national initiative;

· Railway Station Improvements; and

· Air Quality and Noise Monitoring;

Initiatives relating to the last two of the above were previously found within some of the area strategy programmes, but are best managed on a countywide basis.

8.4 Two priority projects are identified:

(i) Test Valley Decriminalised Parking Enforcement (£47,000)

This scheme covers at least part of four different area strategies so is best considered outside of the area strategies.

(ii) CIVITAS (£240,000)

This project has been accepted by the European Union as part of its research programme. This funding will supplement EU grant support for the project which covers innovative traffic management in Winchester.

Area Strategies, Safety and Minor Works

8.5 The transport capital programme, funded from Government approvals is set out in Appendix 2 and summarised below for the four years. The programme is designed to produce spending levels consistent with the approvals and with the policies contained within the Hampshire Local Transport Plan 2001-2006 upon which the Government approvals were based.

8.6 The proposed programme from Government approvals is as follows:

2002/03 2003/04 2004/05 2005/06 £'000 £'000 £'000 £'000

Area Strategies

North East Hampshire (NEHTS) 645 1,400 730 1,345

Basingstoke (BEST) 1,741 1,190 1,150 1,650

Central Hampshire (CHARTS) 430 450 435 660

Andover (ATS) 550 550 100 350

Winchester (WMAP) 1,100 870 2,500 850

South East Hampshire (SEHTS) 1,745 740 3,730 1,030

Southampton Area (SATS) 1,550 1,950 1,190 2,165

New Forest (NFTS) 1,400 100 360 100

Coastal Towns (CTTS) 257 310 160 250

Western Hampshire (WHTS) 50 50 50 50

A3 Bus Priority 5,200 - - -

Other Priority Projects 287 - - -

Total 14,955 7,610 10,405 8,450

2002/03 2003/04 2004/05 2005/06 £'000 £'000 £'000 £'000

Other Programmes

Casualty Reduction 1,600 1,600 1,400 1,600

Central Intelligent Transport

Systems 225 50 50 260

Passenger Transport Information 125 25 - -

Rural Partnership Schemes 100 120 100 100

Community Safety (Lighting) 60 60 60 60

Pedestrian Crossings 100 100 80 120

Community Transport 225 50 50 200

Minor Schemes 300 300 250 300

Safer Routes to School 500 700 800 1,000

Traffic Monitoring 30 - - 60

Air Quality and Noise 100 100 100 100

Rail Stations / Interchanges 100 80 60 80

Home Zones 80 80 60 80

Total 3,545 3,265 3,010 3,960

Total Programme 18,500 10,875 13,415 12,410

All the above programmes beyond 2002/03 are likely to change as projects develop and, in particular 2005/06 should be regarded as indicative at this time.

8.7 Programmes for the Area Strategies are based on the programmes approved by the respective Joint Area Panels.

8.8 Details of the county-wide programmes, including casualty reduction schemes, pedestrian crossings etc will be submitted to the Executive Member in due course.

9. Capital Programme 2002/03 to 2005/06 - Schemes Within the Guideline for the Locally Resourced Capital Programme

9.1 The guidelines for locally resourced programmes include allocations for Structural Maintenance of Non Principal Roads, Environmental Improvements, Regeneration of Older Urban Areas, and Landfill Sites Remedial Works. The allocations are £11,112,000 for Structural Maintenance of Non Principal Roads, £177,000 for Environmental Improvements, £932,000 for Regeneration of Older Urban Areas, and £58,000 for Landfill Sites Remedial Works for each of the four years. It is proposed to supplement the guideline for the locally resourced capital programme by £100,000 in each year from the revenue budget. This is to be added to the allocation for Environmental Improvements to provide extra resources for the Hampshire Country Towns Initiative, making this budget £150,000 in total. Further details of the proposed programmes will be submitted to the Executive Member at a later date.

9.2 In addition, the share of capital receipts obtained in 2000/01 as allocated by Policy and Resources Committee in July 2001 totalling £298,000 are still uncommitted. The proposals for the use of these resources, which has been included in the 2002/03 starts programme, will also be submitted to the Executive Member in due course.

9.3 Within the local resources that are available to the Executive Member it has not been possible to accommodate further Household Waste Recycling Centre (HWRC) developments and in particular the proposed relocation of the Winchester HWRC from Garnier Road to Bar End. The existing temporary planning permission for the HWRC at Winchester expires at the end of 2002.

9.4 Remaining funds within the current HWRC replacement programme of between £100,000 and £200,000 will clearly be inadequate to fund the required Winchester relocation, the cost of which, will be directly related to the final Bar End scheme specification. Furthermore, increasingly urgent issues at Hayling Island and Casbrook will need to be addressed in the short term and opportunities to improve sites at Hart and Eastleigh will also need to be considered sooner rather than later.

9.5 Costs of recent HWRC relocations have exceeded earlier financial estimates and the difficulty in updating the network e.g. availability of suitable sites etc. has meant that progress in implementing the original HWRC replacement programme has been slower than was anticipated. It is recommended therefore that the Cabinet give consideration to the setting aside of part of the unallocated locally resourced capital sum of £700,000, that is generally available from 2003/04 to help deliver Council priorities, for HWRC developments.

9.6 Improving the HWRC network will contribute significantly to Project Integra's recycling aspirations, to the achievement of BVPI's and to the main aims of the County Council's Corporate Strategy.

10. Developer Funded Programme

10.1 Schemes wholly or partly funded by developers' contributions are included in the programme with details in Appendix 2. The programme totals £10.5 million for 2002/03 and £8.5 million in 2003/04. Schemes have only been included where there is reasonable confidence on programme dates. It is expected that the programmes for 2004/05 and 2005/06 will be of the same order as 2002/03 and 2003/04, but details cannot be provided yet.

11. Waste Management Programme (SCA Supported)

11.1 A programme of environmental control schemes at landfill sites including Buriton, Westwood, Newnham, Casbrook and Chark Farm has been prepared for next year totalling some £270,000. It is anticipated that the works, which largely revolve around pollution control and site monitoring, will be funded from successful SCA applications. SCA proposals for 2003/04 and beyond are less certain at this stage. In view of this, a notional £100,000 has been included for the final three years of the programme.

11.2 There has been no formal response from DEFRA to the £1.8 million Efford SCA bid which was submitted in July 2001. Informally we have been told that the site licensing arrangements remain a complicating factor. Estimates for the 18 month work programme, commencing April 2002, point to a capital cost approaching £2m. If the work programme is delivered as expected then costs in 2002/03 of some £1.2 million are likely.

12. Capital Programme Summary

12.1 On the basis of the position outlined above, the total value of the capital programmes submitted for consideration for the four years to 2005/06 are:

12.2 Should the County Council allocate additional funding to transport from the discretionary £2.168 million described above then highways maintenance and bridge repair would be a priority for increased investment, together with Safer Routes to Schools, Pedestrian Crossings and Minor Works programmes, as well as advantageous purchase of the existing leased travel and traffic information centre accommodation (to avoid future capital and revenue expenditure) and infrastructure associated with the LRT project.

12.3 During 2002/03, plans will need to be finalised regarding the proposed sustainable development of the site at Bar End, Winchester to, at a minimum, relocate the HWRC currently situated in Garnier Road and replace the inadequate accommodation used by the County Highways Laboratory. The plan would be to start work in 2003/04.

13. Revenue Implications

13.1 The revenue implications of the proposed capital programme are as follows:

13.2 The total revenue implications for the four years of the starts programme, including capital charges, represent a real term increase of 62% over the 2001/02 original budget of this service.

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Appendix 1