Archived decisions

Contact: Chris Williams, ext 6720 email: [email protected]

1. Summary

1.1 The following decisions are sought:

(i) That the Buildings, Land and Procurement Panel recommends approval of the attached Project Appraisal for improvements to Hythe Promenade as part of the Country Towns Initiative, at an estimated cost of £771,500.

(ii) That the Executive Member for Policy and Resources approves the attached Project Appraisal for improvements to Hythe Promenade as part of the Country Towns Initiative, at an estimated cost of £771,500.

2. Reason

2.1 This decision supports the following Aims of the Corporate Strategy:

(i) Aim 1 (Maximising Life Opportunities) and Aim 4 (Building Strong and Safe Communities) by creating opportunities for the local community to address local environmental and traffic issues through public involvement and partnership working and incorporating measures for public outdoor events and features to deter anti-social behaviour;

(ii) Aim 2 (Stewardship of the Environment) by improving an unattractive and rundown part of the waterside conservation area as a public amenity, reinforcing the pedestrian access strategy for the pier and public transport interchange, improving highways safety and creating opportunities for developing historic and wildlife interpretation facilities in relation to Southampton Water; and

(iii) Aim 3 (Achieving Economic Prosperity) by developing amenity potential of the Promenade and Pier for residents and visitors and helping achieve economic regeneration objectives identified by the local community.

2.2 The Country Towns Initiative (CTI) programme aims to improve the attractiveness of small towns by carrying out environmental enhancements, improving highways safety and making their centres more economically and socially active. Hythe Promenade was included in the approved programme for 2002/03-2004/05. The scheme demonstrates the benefits of regenerating a run-down area for future beneficial use as part of a wider highways strategy for the area and has been designed in accordance with the programme's criteria for selection, good design, appropriateness and quality. The scheme is a partnership venture with New Forest District Council and Hythe and Dibden Parish Council.

2.3 On 15 October 2003 a Project Appraisal was approved at an estimated scheme cost of £499,000, based on designs and cost estimates prepared by New Forest District Council.

2.4 The scheme was revised to include the resurfacing of the entire Promenade approach road and put out to tender by New Forest District Council. At the same time the funding package was improved to £573,000, to include an additional £50,000 from highways special maintenance to cover the cost of the additional highways works, and a further £24,000 from the Coastal budget. This recognised the improved access to the waterside and the scheme's inclusion of waterside interpretation facilities.

2.5 Tenders received by New Forest District Council have come in higher than anticipated. The cost for the full scheme, including fees, costs and 10% works contingencies sum, is an estimated £873,000. This unexpectedly high cost can be accounted for partly by the extension of the scheme to include the resurfacing of the Promenade approach road, but mainly it reflects an underestimation of the cost of the scheme, in particular the non-standard features; additional consultants fees; the perceived difficulties of working over and adjoining tidal water and the inflationary effect of a lively civil engineering market in this region.

2.6 The tender results were reported to the Executive Member for Environment on 12 October 2004. That report identified additional funding offers from New Forest District Council of £50,000 and Hythe and Dibden Parish Council of £10,000, amounting to £60,000. The former has been offered but has yet to be formally approved. The report also identified possible cost savings which would allow for the retention of the scheme's key elements whilst achieving better value for money. The report estimated that these savings, together with a revised funding package, would reduce the funding shortfall to between £62,000 and £82,000. It was therefore resolved that the scheme be reviewed to reduce costs along the lines proposed, that further sources of funding be investigated and, subject to the availability of finance, that a revised project appraisal be brought forward.

2.7 The scheme has therefore been redesigned along the lines set out in the report. The principal highways and parking elements, the boardwalk and the events amphitheatre have all been retained. The remaining features have been simplified and the surfacing of the car park and central area has been replaced in part with a grass amenity space and coloured macadam. These savings have been partly off-set by the need to include an allowance for inflation and additional design fees. The estimated overall cost of the scheme would be reduced to £771,500, representing a net estimated cost saving of £101,500.

2.8 In accordance with the decision of the last report further external funds have been secured over and above those referred to above. These include £10,000 from Hythe and Dibden Parish Council, £3,000 additional developers contributions and £500 from a local business. The level of external funding in the scheme since the initial project appraisal has therefore been improved considerably from £181,000 to £309,500, an increase of £128,500, representing 40% of the total scheme costs. Further contributions from the Heritage Lottery Fund and the Dibden Allotment Charity were investigated but were not successful.

2.9 In order to achieve the revised scheme it is proposed that £70,000 is included from the 2004/05 Local Transport Plan capital programme to reflect the important contribution of the scheme to the highways strategy for Hythe Pier and interchange.

2.10 To summarise, the finance for the scheme would total £771,500 comprising: CTI capital programme (£268,000); New Forest District Council (£277,500); Hythe and Dibden Parish Council (£28,500); Local Transport Plan capital programme (£70,000); coastal budget (£24,000); highways special maintenance (£100,000); additional developer contributions (£3,000); and Waitrose Limited (£500).

2.11 On 21 January 2005 the Executive Member for Spatial Strategy recommended approval of the attached Project Appraisal for improvements to Hythe Promenade as part of the Country Towns Initiative.

3. Other Options Considered and Rejected

3.1 Cost savings can be made by reducing or eliminating the boardwalk structure. However this would result in a unacceptable reduction in quality and the loss of the central feature of the scheme.

3.2 Alternative traffic regulation arrangements were considered but it is felt the proposed scheme represents the most effective and enforceable arrangement.

3.3 Other designs and finishes for street furniture and surfaces were considered, however these were not felt to provide the right balance between cost, robustness and local distinctiveness.

4. Conflicts of Interest Declared by the Decision Maker or Other Executive Member Consulted - None.

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 T K Thornber

9121BLAPPDecn/CW