Hampshire County Council Environment Policy Review Committee 21 January 2004 Executive Member-Environment 23 January 2004 Proposed Capital Programme 2004/05 to 2007/08 and Revised Transport Capital Programme 2003/04 Report of the County Treasurer and Director of Environment

Item 8 Item 2

Contact: Ejner Knudsen, ext 7403 email: [email protected]

1. Summary

1.1 This report updates progress on and proposes further amendments to the 2003/04 integrated transport programme (Appendices 1, 2 and 3 ) and sets out the proposed capital programme for 2004/05 to 2007/08 (Appendix 4).

2. Introduction

2.1 On 15 December 2003 Cabinet asked Executive Members to prepare proposals for:

(i) a locally-resourced capital programme for the four-year period from 2004/05 to 2007/08 within the guidelines of the current capital programme adjusted for inflation;

(ii) capital schemes supported by Government approvals in the form of grants or Government supported borrowing in 2004/05 and those expected to be supported in 2005/06, 2006/07 and 2007/08; and

(iii) possible capital projects which might be suitable for the private finance initiative (PFI) revenue support from the Government for 2004/05 to 2006/07, subject to further reports on the outline business case for each scheme and the Government support being available.

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

	£'000
2004/05	16,521
2005/06	12,905
2006/07	12,905
2007/08	12,905

2.3 The guidelines include an addition of 2.5% for inflation, in line with the non-pay inflation assumption for the revenue budget.

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 Executive Members may propose supplementing their capital guidelines under the `prudential framework' agreed by Cabinet on 24 November 2003, thereby integrating more closely decisions on revenue and capital spending in support of Corporate Aims. These additions may include:

(i) virement from the Executive Member's revenue budget; and

(ii) temporary unsupported borrowing, to provide bridging finance in advance of capital receipts or other contributions, with the cost of servicing the unsupported borrowing in the interim being met from the Executive Member's revenue budget.

2.6 In addition, Executive Members may propose additional schemes funded from:

(i) use of Executive Member's share of capital receipts obtained in 2002/03 as allocated by Cabinet in July 2003 (if not already used for the 2003/04 programme); and

(ii) anticipating their share of capital receipts obtained in 2003/04 provided the receipt has actually been received.

2.7 The level of Government support for transport capital works for 2004/05 is £31,179,000, which is an increase of 13% over the equivalent figure for 2003/04. In addition, the Government has made available £7,500,000 in 2004/05 for the A3 Bus Priority Corridor project, which was accepted as a major scheme on 28 October 2003.

3. Transport Capital Programme 2003/04 - Progress and Proposed Amendments

Transport Capital Programme Background

Proposed Revised 2003/04 Programme

3.1 The programme for 2003/04 is proposed to be amended to accommodate schemes slipping into 2004/05, reduced costs on completed 2003/04 schemes, projected increased costs on committed projects and additional developer and District Council funded schemes introduced from

September 2003. Detailed programmes in support of the previously approved £750,000 extension to the casualty reduction programme are outlined in paragraph 3.8 with other major changes detailed in paragraphs 3.9 to 3.13. The proposed revised 2003/04 programme is outlined in Appendix 1, and a complete list of changes is attached as Appendix 2.

Spending Plan for 2003/04 - Programmes excluding A3 Bus Priority Corridor

3.2 Resources for integrated transport in 2003/04 were set at £14.4 million from the LTP settlement of which £3.3 million was identified to be spent on the A3 Bus Priority Corridor and the balance of £11.1 million assigned for spending against other schemes making up the capital programme.

3.3 With the Department for Transport announcement on 28 October 2003 confirming that the A3 Bus Priority Corridor had been accepted for £25 million funding as a major scheme, it is now possible to fully reallocate the 2003/04 A3 commitment of £3.3 million to advance other schemes already within the approved programme. Accordingly the spending will be contained within the original LTP settlement of £14.4 million.

3.4 There is currently a total committed expenditure of £6.1 million for delivery of schemes in the pre 2003/04 programmes. It is proposed that the balance of £8.3 million will be spent on schemes within the revised 2003/04 programme and scheme preparation for future years' programmes. Expenditure will be monitored and carefully controlled to ensure the overall resource is not exceeded.

Spending Plan for 2003/04 - A3 Bus Priority Corridor

3.5 The A3 Bus Priority Corridor has received a £4.4 million Supplementary Credit Approval (SCA) funding allocation for 2003/04. This will fund all the costs of all the sections of the project under design or construction this year. The estimated costs and expenditure to date on the project are summarised below:

Section of the A3 Corridor	Status	Expenditure to Nov 03 £'000	Estimated final 2003/04 cost £'000
1. Widley to Purbrook	Maintenance	27	328
2a. Purbrook Village	Works start Jan 04	71	319
2b. Purbrook to Waterlooville	Under construction	1,731	3,034
3. Waterlooville	Detailed design	141	446
4. W'ville to Cowplain	Prelim design	25	61
5. Cowplain to Horndean	Prelim design	0	27
Total		1,995	4,215

The estimated costs and actual expenditure will be managed to stay within the SCA allocation for 2003/04.

Changes to the 2003/04 Transport Capital Programme

A3 Bus Priority Corridor

3.6 A bid for major scheme funding for the remainder of the A3 was submitted to the Department for Transport (DfT) in July 2002, with the outcome expected in December 2002. However the DfT requested additional information to it to make a decision, which was eventually received in October 2003. The DfT has approved the full bid for £25.1 million for the remaining project costs from 2003/04 to 2006/07.

3.7 The initial funding is for the current year. The original bid for 2003/04 speculated that approval would be granted in December 2002. The bid proposed expenditure of £8 million in 2003/04. However, as funding could only be accommodated from within the 2003/04 block allocation for integrated transport, it was essential to restrict expenditure. The DfT appreciates the difficulty this has caused and the yearly allocations are being agreed to reflect the predicted spend rather than the original bids, which at present are:

2003/04 £4.4 million

2004/05 £7.5 million

2005/06 £6.6 million

2006/07 £6.6 million

Total £25.1 million

The final allocations for future years will be agreed with the DfT, giving scope to further manage the annual budgets to meet the demands for the project programme and resources.

Casualty Reduction Programme

3.8 As a result of major scheme funding being awarded to the A3 bus priority corridor, the Executive Member for Environment approved at his 11 November 2003 meeting an amendment to the 2003/04 programme that added £750,000 to the casualty reduction programme subject to the consideration of further details. The extended programme will include funding for the Casualty Reduction Challenge treatment of sites with high `killed or seriously injured' (KSI) occurrences. Site treatments will include signing, lining, retexturing, resurfacing and patching for additional safety related surface dressing to be undertaken early in 2004/05. The proposed extension to the casualty reduction works programme is outlined in Appendix 3. It is expected that the additional funding will reduce the number of KSI occurrences by 48 per annum.

Jacobs Gutter Lane

3.9 Jacobs Gutter Lane strengthening and widening was reported in September 2003 as having an estimated cost of £1,150,000. Funding allocated to the scheme was £350,000 capital and £800,000 from developers' contributions. After receiving a highly competitive tender, Phase 1 of the works was completed with substantial savings on the estimate. The forecast for completion of the project is now reduced to £1,062,700 and with additional developers' contributions there is a capital saving of £198,000 to the overall programme for 2003/04.

Winchester Park-and-Ride

3.10 The original project appraisal was approved by the former Environment Committee on 25 June 2001 for a planned start in the 2001/02 Capital Programme. Due to a series of legal challenges in the High Court by objectors to the scheme the start was delayed. On 14 May 2003 the Court of Appeal overturned a previous High Court Judgement ruling, in favour of the County Council. This judgement cleared the way for the scheme to proceed and the works commenced on 23 June 2003.

3.11 Since the works have started additional costs have become apparent, including substantial security costs. Funding for the scheme, including the increased costs, will be met from the on-street parking reserve and developers' contributions. Full details of the additional costs and related funding are the subject of a report to the Executive Member for Environment on 13 January 2004.

Weyhill Traffic Management

3.12 Weyhill Road Traffic Management scheme was reported in September 2003 as having an estimated cost of £1,051,000, which included a main works estimate of £561,000. Funding allocated to the scheme was £686,000 capital and £365,000 from developers' contributions. After

receiving a highly competitive tender the project is now estimated to cost a total of £868,000 and with additional developers' contributions there is a saving of £458,000 to the overall programme for 2003/04.

LTP Monitoring and Initiatives Programme

3.13 A programme was not progressed during the early part of the financial year because of funding concerns with the lack of a Government decision about supporting the A3 bus priority project. As the A3 scheme now has Government support, it is possible to progress a programme within the financial year as follows:

Additional monitoring for the next LTP £120,000

Cycle carrying facilities on buses (New Forest) £10,000

Promotional Material for behavioural change £20,000

Total Investment - £150,000 against original allocation of £200,000.

Regeneration of Older Urban Areas 2003-2005 Programme

3.14 Established in 1984, the Regeneration of Older Urban Areas (ROUA) programme is an ongoing Hampshire County Council led initiative that responds directly to the regeneration needs and priorities identified by County Council Members. The programme is managed to implement landmark projects to raise the quality of life of all who live, work and visit urban areas. All projects are designed to demonstrate the benefits of making the best use of land and property; high quality design; long life solutions and materials; and appropriateness to the local sense of place. The ROUA programme responds directly to the urban renaissance agenda and is a continuing objective for the County Council.

3.15 The ROUA 2003-2005 programme was approved by the Executive Member for Environment on 23 July 2003. The programme includes future phases of major regeneration projects initiated under previous ROUA programmes and new schemes brought forward in partnership with local authorities where there is agreement about the objectives and details of the scheme. The projects are:

(i) The Square, Hamble;

(ii) Town Quay, Fareham;

(iii) Waterfront, Warsash;

(iv) Town Centre, Yateley;

(v) Town Centre, Havant; and

(vi) `Old Totton'.

3.16 Scheme development, planning or design work has started on all the projects in the programme. Match-funding is being negotiated for all the projects and has already been secured from the relevant districts for planned work at Hamble and Fareham.

3.17 Consultants have been appointed to support the development of scheme details for Warsash and `Old Totton'. The ROUA budget allocation for 'Old Totton' from the 2001/03 and 2003/05 programmes will be utilised with LTP funding to support a £1.1 million scheme in Rumbridge Street commencing in late 2004.

3.18 A Project Appraisal for The Square, Hamble, committing £20,000 from the ROUA budget allocation for a scheme estimated to cost in the region of £55,000, was approved on 11 November. This first phase of work, in partnership with Eastleigh Borough Council, is due to commence early in the new year.

3.19 Public consultation on a proposed first phase at Yateley, utilising LTP, district and town council funding, took place in November 2003 and it is hoped to begin implementation in late 2004.

3.20 Work at Warsash is programmed to start on-site in autumn 2004. The Fareham Town Quay project is programmed to commence on-site in 2005 following completion of the Warsash scheme.

3.21 The ROUA programme includes a budget allocation for technical studies in Havant town centre. Negotiations are taking place with the Borough Council to guide current investment decisions, to develop its vision for the town centre and to prepare long term planning and design guidance

Country Towns Initiative Programme 2003-2006

3.22 The Country Towns Initiative (CTI) programme was set up in 1990 to respond to the conservation and regeneration needs of the rural towns. Sixteen major town centre schemes of environmental enhancement have been implemented in 14 rural centres with seven further schemes proposed.

3.23 The programme reflects Government and County Council corporate strategies towards conservation, economic regeneration and reinforcing sustainable, small and rural centres. It acts as a catalyst to inspire further investment in the locality by emphasising quality, responding to local needs and helping to create a climate of future confidence. Works include street scene enhancements, improving safety and making the town centres more attractive places in which to live, work and shop. The popularity of the Initiative has been well acknowledged, and a number of local and national design awards have been received. It works closely with the County Council's programmes for highways improvements and promotion of market town economies.

3.24 The CTI programme for 2003/06 has a current allocation of £768,000 which was approved by the Executive Member for Environment on 24 June 2003 and 15 October 2003. The programme will attract external funding and link to and influence other council and local authority budgets

for schemes valued at approximately £2.7 million. The following programme includes further funding for major schemes initiated under the previous programme, together with new schemes promoted in partnership with local authorities:

(i) Hythe Promenade;

(ii) Romsey, Church Place;

(iii) Alton town centre;

(iv) Fordingbridge, Market Place;

(v) Andover, High Street;

(vi) Odiham town centre; and

(vii) Swanmore centre.

3.25 Preparatory work for Hythe Promenade and Romsey, Church Place is well advanced and works to the value of approximately £900,000 are expected to start in summer 2004.

3.26 Footbridge and associated works at Alton town centre are completed, whilst public artwork as part of the wider Fordingbridge, Market Place highways scheme is currently in progress.

3.27 Works to the setting of Andover Guildhall, linked to Test Valley Borough Council's £1.14 million improvements to Andover High Street, are expected to start in spring 2004.

3.28 Proposals for improvements to Odiham and Swanmore centres are at a very early stage of formulation in consultation with local interests and are expected to be implemented later in the programme period.

4. Capital Programme 2004/05 to 2007/08 - Locally Resourced Schemes

4.1 The guidelines for locally resourced programmes include allocations for Structural Maintenance of Non-Principal Roads, Environmental Improvements, ROUA, Landfill Sites Remedial Works and Household Waste Recycling Centres (HWRCs). The allocations for 2004/05 are:

(i) £14,742,000 for Structural Maintenance of Non-Principal Roads;

(ii) £396,000 for Environmental Improvements;

(iii) £979,000 for ROUA;

(iv) £60,000 for Landfill Sites Remedial Works; and

(v) £316,000 for HWRCs.

The allocation for Structural Maintenance includes £3,588,000 for 2004/05 only and reduces to £11,154,000 for 2005/06 to 2007/08. The other allocations are the same for each of the four years.

4.2 In addition it is proposed that the share of capital receipts obtained in 2002/03 totalling £28,000, as allocated by Cabinet in July 2003, be used as contributions to private street works.

4.3 It is not proposed to add any schemes under the `prudential framework' or the private finance initiative.

4.4 A number of proposals for re-deployment of resources are contained in the report dealing with the preparation of the revenue budget 2004/05, elsewhere on this agenda. These include transfers to meet the need for additional provision for routine highways maintenance and for additional transport policy related expenditure on marketing to support behavioural change, technical studies and sub-regional strategies modelling. The overall effect of these proposals would be to reduce the locally resourced capital programme provision for structural maintenance of non-principal roads by £1,813,000. However, it is proposed to offset this by an increased allocation of £1,850,000 for structural maintenance and bridges within the LTP programme as detailed in paragraph 5.8 below.

4.5 The additional spending proposed under the headings of structural maintenance and contributions to private street works will contribute primarily to Corporate Aim 4 : Building strong and safe communities by improving road conditions, whilst adjustments under the other headings will contribute to Corporate Aim 2 : Stewardship of the environment by promoting sustainable lifestyles.

5. Capital Programme 2004/05 to 2007/08 - Schemes Supported by Government Approvals

Local Transport Settlement 2004/05

5.1 On 19 December 2003 the Government Office for the South East wrote with its assessment of Hampshire's LTP Annual Progress Report (APR) submitted in July 2003 and its allocation of resources.

5.2 The total block allocation is £31.179 million, comprising £15.783 million for integrated transport and £15.396 million for maintenance. This compares with indicative allocations of £13.120 million and £7.893 million respectively, notified in the December 2000 LTP settlement. The integrated transport total includes £900,000 for schemes in the A27 corridor, and reward funding of £1.763 million for the County Council's continued strong performance. The maintenance figure includes £175,000 for work on the A339 following detrunking. Funding provided in the block allocation must be used within the 2004/05 financial year, although there is flexibility in terms of how it is used (eg sums identified for integrated transport may be spent on highways maintenance and bridges and vice-versa).

5.3 The County Council has also been allocated funding of £7.5 million for 2004/05 for the A3 Bus Priority Corridor which was accepted as a major scheme by the Government on 28 October 2003. The funding is ring-fenced to the A3 project.

5.4 No decision was made concerning continued funding for South Hampshire Rapid Transit (SHRT). The Government has asked the County Council to discuss with the bidders whether an alternative risk sharing model might help to reduce overall costs before a decision can be made on funding.

Transport Resources 2004/05 to 2007/08

5.5 The County Council's 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 approval in the Local Transport Settlement (for schemes costing less than £5 million).

5.6 The proposals for the 2004/05 revenue budget included elsewhere on this agenda include additional expenditure of £650,000 per annum on transport policy proposals for a marketing initiative to help support behavioural change and modal shift, technical studies for future development and sub-regional strategies modelling. Although the expenditure relates to the development of future integrated transport policies and programme, this type of spending is revenue in nature and cannot be met from the local transport capital allocations provided by the Government. Paragraph 4.4 includes proposals to accommodate this expenditure in the revenue budget by reallocating equivalent funding from the locally resourced capital programme provision for structural maintenance.

5.7 Bridges - An additional annual allocation of £1.2 million is required to meet heightened safety concerns and risks following recent nationally identified recognition of road and rail deficiencies.

5.8 However, to ensure that the overall provision for highways maintenance is not reduced, it is proposed to allocate an additional sum of £1,850,000 to highways maintenance and bridges from within the overall sum of Government support provided in the local transport capital settlement.

5.9 The new programme has been produced on the basis that, from the £31.2 million available for 2004/05 through the LTP process, £17.3 million will be spent on highway maintenance and bridges and £13.9 million on integrated transport.

5.10 In 2005/06 the forecast resource totals are £17 million for highways maintenance and bridges and £14 million for integrated transport. The 2005/06 figures anticipate that the allocations received for that year will continue to be well in excess of the previously published indicative allocations for those years (as in 2004/05). The years 2006/07 and 2007/08 will be the first two years of the next five year LTP. For planning purposes it has been assumed that the allocation will be the same as 2005/06.

5.11 For integrated transport the 2004/05 resources will need to cover expenditure required to complete the 2003/04 and earlier programmes and development costs of post 2004/05 projects, including major schemes as well as the cost of implementing the 2004/05 programme. A 2004/05 starts programme of £17.4 million is proposed, which will be managed to deliver the required spending in the year.

Major Transport Schemes

5.12 The A3 Bus Priority Corridor project was accepted as a major scheme by the Government on 28 October 2003 and was subsequently added to the 2003/04 starts programme. The scheme will continue through 2004/05 to be funded from Government resources of £7.5 million made available specifically for the project in the year and carry on into 2005/06 and 2006/07 at a total cost of £25 million.

5.13 No decision has yet been made by the Government on funding in 2004/05 for the SHRT project. Subject to a positive decision the project is anticipated to start in 2004/05.

5.14 The programmes proposed in this report have been prepared on the basis that there is no requirement in 2004/05 for the LTP block allocation to provide funding for the SHRT project. Should this prove not to be the case, then amendments to the programme may be necessary.

Other Major Scheme Provisional Programme

5.15 It is proposed that the Chickenhall Lane Link Road remains the County Council's top priority because of the employment opportunities it will provide, together with potential associated improvements in Eastleigh. However, it will not be possible to produce a scheme in time for a submission in July 2004. The earliest possible submission is July 2005.

5.16 It may be possible to bring forward a bid in July 2004 for Totton Town Centre, as plans for the proposals are more advanced and considerable local consultation has been carried out. The scheme is supported by New Forest District Council and Totton and Eling Town Council and will transform the pedestrian environment and help promote regeneration in the town. It is believed that making an early bid for Totton at £20 million will not adversely affect the chances of achieving success for Chickenhall Lane in 2005. It is therefore proposed that a bid be made in 2004 for this scheme, subject to further detailed work.

5.17 It is proposed that Stubbington bypass and Botley bypass remain in the programme for bids in 2006 and 2007 respectively.

5.18 The programme is provisional only at this stage and will be reviewed through the Solent Area Transport Panel.

5.19 Should it not prove feasible to make the Totton bid in 2004, or the bid be unsuccessful, this scheme would not take precedence over the other schemes set out for future years in paragraph 5.20.

5.20 Summary of proposed provisional Major Scheme Programme (subject to Government financial support):

2004/05 SHRT Fareham-Gosport-Portsmouth

2005/06 Totton Town Centre

2006/07 Chickenhall Lane Link Road

2007/08 Stubbington Bypass

2008/09 Botley Bypass.

Highways Maintenance and Bridges

5.21 The proposed LTP funded programme for 2004/05 is for £17.3 million, comprising £13.3 million for highways maintenance and £4 million for bridges, (including a £1.2 million increase for bridges). Details of the programmes will be presented to the Executive Member in March.

5.22 It is proposed that, for planning purposes, programmes of £17 million for 2005/06, 2006/07 and 2007/08 be included for the structural maintenance of highways and bridges, funded from Government borrowing approvals.

Street Lighting

5.23 The highway maintenance settlement theoretically includes provision for street lighting column replacement. Revenue funding may also be used for this purpose and the Council is free to allocate other capital funds as it sees fit. The current allocation from the revenue highway maintenance programme totals £1.2 million per annum. Under conventional procurement, an additional annual allocation of £5 million for ten years and £2.5 million for a further fifteen years is required to bring the stock up to an ideal standard. A report to Cabinet in July 2003 considered the opportunity for a PFI bid but concluded that it was inappropriate at this time given the degree of disrepair and the limited funding available. It is not intended to develop a significantly enhanced replacement programme from within the £17 million settlement, but the risk assessment of the stock will need to be reviewed before finalising the programme. The opportunity for a PFI bid will be reviewed during the year.

Integrated Transport

5.24 The proposed new programme is very much based on the draft programmes presented to the Area Transport Panels in the autumn. Each of the schemes was assessed against criteria based on the Hampshire County Council Local Transport Plan (LTP) objectives, its Corporate Objectives and the Government's ten year transport objectives of Economy, Environment, Accessibility, Safety and Integration. The Area Strategy Panels supported the programmes as submitted.

5.25 There are amendments proposed for the following reasons:

(i) Additional schemes have been added or brought forward where they are specifically related to the County Council's Public Service Agreements with regard to promoting bus patronage and reducing road accident casualties. These schemes promote the LTP objectives of safety and promoting travel choice. They also support the County Council corporate objectives relating to maximising life opportunities through improved accessibility, stewardship of the environment by promoting alternatives to the car, economic prosperity by assisting access to employment and the promotion of safe and secure communities as well as directly enhancing services eg for public transport users.

(ii) Additional funding has been added to the Safer Routes to School programme which was identified as a priority by the Environment Policy Review Committee. This programme promotes safety, alternatives to the car, and has health and personal security benefits.

(iii) In some cases LTP funding has been introduced to supplement schemes which are largely funded from developers' contributions but there is a shortfall.

(iv) Some schemes have been delayed, either from 2003/04 into 2004/05 or from 2004/05 into 2005/06, because of programme slippage either on that particular scheme or on a related project (eg A30 Winchester Road roundabout, Basingstoke is delayed because of slippage on the developer funded adjacent Brighton Hill scheme).

5.26 The proposed programme for 2004/05 has schemes to the value of £4 million in support of buses and £2.5 million directed at casualty reduction, while there is £1.25 million for safer routes to school.

5.27 The proposed programme for 2005/06 must be considered as a draft to be reviewed by the respective Area Transport Panels at their meetings during 2004. It is very much based on the draft programmes presented to the Area Transport Panels last autumn. No detailed programmes have been drawn up for 2006/07 and 2007/08. The new LTP, to be produced in July 2005, will set out the County Council's proposed transport programme for the period 2006 to 2010. The new Area Transport Panels and other key stakeholders, including Local Strategic Partnerships will assist in the preparation of the new LTP programme to meet revised objectives and targets.

Waste Management

5.28 A notional £100,000 for each year has been included for environmental control schemes at landfill sites funded from SCAs.

Coast Protection Act

5.29 A notional £100,000 for each year has also been included for contributions to coast protection schemes promoted by District Councils which likewise will be funded from SCAs.

Corporate Aims

5.30 The proposed programme for 2004/05 to 2007/08 supported by Government approvals contribute primarily to Corporate Aim 2: Stewardship of the environment and to Corporate Aim 4: Building strong and safe communities, as well as to Aim 3: Achieving Economic Prosperity and Aim 1: Maximising Life Opportunities, particularly in the social accessibility area. Much of the programme is directly related to improved services (Aim 5) especially in the public transport field.

6. Developer Funded Programme

6.1 Schemes wholly or partly funded by developers' or other contributions are included in the programme, with details in Appendix 4. The programme totals £8.1 million for 2004/05 and £6.1 million for 2005/06. The programmes for 2006/07 and 2007/08 are anticipated to be in the region of £6 million per annum. Schemes have only been included where there is reasonable confidence on funding security and programme dates.

7. Waste Management Programme

7.1 Over the last few years, the main pressure within waste management in Hampshire has been to increase processing capacity for household waste, particularly for recycling (dry recyclables and composting). Those demands are in the process of being satisfied with the construction of the new Materials Recovery Facility (MRF) at Alton and the extension to the composting facility at Little Bushy Warren Copse near Basingstoke. Both facilities are expected to be fully operational by the autumn.

7.2 The need now is to increase the collection of recyclables within the County to help meet Government recycling targets and to utilise the processing capacity which will shortly be available. District Councils within Project Integra are currently rolling out a number of schemes to increase kerbside collections of recyclables, but the County needs to improve its Household Waste Recycling Centre (HWRC) service as a matter of urgency.

7.3 Experience within Project Integra suggests that increased recycling at the kerbside can actually stimulate higher recycling levels generally, often increasing demand for the HWRC service. If the County Council is to meet its statutory targets for recycling in 2005/06, the throughput at HWRCs will need to increase by about 20% overall. The service also faces increased demand as a result of new legislation, for instance to increase

collection of tyres, wood, waste electrical goods and hazardous waste. In addition to these pressures, six of the sites have the benefit of only a temporary planning permission.

7.4 Customers already experience delays at many of the sites, particularly at peak times and the above pressure will only make the situation worse. It is estimated that five sites need to be enlarged or relocated to cope with expected future demand and a further four need to be provided in parts of the county where provision is inadequate.

7.5 In the short to medium term, the existing sites at Winchester, Casbrook (Romsey), Hayling Island, Hartley Wintney, Eastleigh, Hedge End, Havant and Waterlooville need enlarging or relocating, and new sites need to be provided in Basingstoke Town, North West Basingstoke, Fleet and Fawley. In the longer term, existing sites at Somerley, Efford and Netley may also need to be relocated. It is estimated that this programme will cost up to £15 million to implement, including land costs. There is likely to be some income from the sale of existing sites and Project Integra has been awarded a total grant of £5 million from the Government under its National Waste Minimisation and Recycling Fund. The grant has been awarded under the partnership category of the fund and £3.25 million is awarded to support Waste Collection Authority schemes for improving kerbside recycling and £0.5 million is awarded to support Project Integra's communication strategy and its work on waste minimisation. The balance of £1.25 million will be used to fund the most pressing HWRC improvements. However, there is clearly a sizeable net funding shortfall to meet the aspirations identified above and options will need to be considered through the locally resourced capital programme, prudential borrowing and any private finance opportunities (although this may be too small for a private finance initiative bid on its own). Cabinet is asked to consider whether further funding of £1 million could be made through the locally resourced capital programme to provide a new Household Waste Recycling Centre at one of Fawley, or Fleet, or North West Basingstoke. The HWRC replacement programme of some £300,000 per annum for 2003/04, 2004/05 and 2005/06 has been set aside to fund the Bar End development.

8. Capital Programme Summary

8.1 On the basis of the position outlined above, the total value of the capital programmes submitted for consideration for the four years to 2007/08 are:

		Schemes within guidelines	Additional schemes funded within the prudential framework	Schemes supported by Government approvals	Total
		£'000	£'000	£'000	£'000
	2004/05	14,708	0	155,755	170,463
	2005/06	11,092	0	52,890	63,982
	2006/07	11,092	0	61,200	72,292
	2007/08	11,092	0	56,200	67,292
	Note:	the above figures are net of developers' contributions and exclude the costs of land for programme schemes which are dealt with outside the guidelines.

9. Revenue Implications

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

		Full Year Cost
		Current Expenditure	Capital Charges
		£'000	£'000
	Schemes within the guidelines:
	2004/05	0	965
	2005/06	0	704
	2006/07	0	704
	2007/08	0	704
	Additional schemes under prudential framework
	2004/05	0	0
	2005/06	0	0
	2006/07	0	0
	2007/08	0	0
	Schemes supported by Government approvals:
	2004/05	204	12,171
	2005/06	334	4,905
	2006/07	352	4,870
	2007/08	312	4,530
		----------------	----------------
	Total	1,202	29,553
		----------------	----------------

9.2 The total revenue implications for the four years of the starts programme, including capital charges, represent a real term increase of 29 % over the 2003/04 original budget of this service.

Recommendation

That the Environment Policy Review Committee consider the proposed capital programme 2004/05 to 2007/08, and revised programme for 2003/04, that has been prepared in consultation with the Executive Member for Environment, prior to the formal approval of the capital programme by the Executive Member for Environment for submission to the Cabinet.

Section 100 D - Local Government Act 1972 - background papers
The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.
NB the list excludes:
1.	Published works.
2.	Documents which disclose exempt or confidential information as defined in the Act.

TITLE	LOCATION
None.

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