Hampshire County Council

Buildings Land and Procurement Panel Item

5 April 2005

Capital Repairs 2004/5 and 2005/06 and beyond

Report by the Director of Property, Business and Regulatory Services

How the conclusion in this report fits with the Corporate Strategy

Because the activities covered by this report affect the majority of the County Council's services, they contribute to the achievement of all the corporate aims, in particular:

Aim 1 - maximising life opportunities - by providing a good quality, safe and well maintained estate for the community to enjoy.

Aim 5 - improving services - by providing good quality buildings that enable improved service delivery.

1

Summary

1.1

The purpose of this report is to:

· present Panel members with information on the level of commitment against 2004/05 allocations

· outline the management issues and budget pressures in 2005/06

· seek approval to the proposed budget allocations for 2005/06

· seek approval for the addition of schemes to the programme of

capital repairs in 2005/06

1.2

The paper endorses the earlier decisions of the Panel to plan work in an integrated way over the longer term which requires the re-profiling of resources over a three year period in order to address future budget pressures. This approach also fits well with NDS funded work, which has to be implemented within 18 month cycles to meet DfES requirements, and other works being planned during holiday periods to avoid disruption at schools. For these reasons it has previously been recognised that a 3 year planning and implementation cycle becomes more evident and likely, and that the different contributions and mixes of funding have more impact when they are planned and brought together as opposed to implemented as separate and independent works. The proposals for 2005/6 and beyond are based on the above principles.

2

2004/05 Position

2.1

The Panel will be aware that during the year the basis for monitoring and reporting capital repairs was changed from a starts basis, under which the full value of a scheme was included in the year the formal commitment was made, to an expenditure basis where the actual value of work done in each year of any scheme or package is counted against that year's allocation.

2.2

The table in appendix 1 provides a breakdown of commitments against the major repairs budget at the middle of March. There have been a few minor variations although actual expenditure at the end of the financial year will be broadly in line with previously agreed allocations. The only outstanding balance relates to asbestos surveys where the actual charges are not apportioned until the end of the year.

2.3

The position against the traditional capital repair allocations is provided in appendix 2. With the exception of a small number of contributions to capital schemes, which require to be concluded before 31 March, the budget is fully committed and no carry-forward is expected. The commitment to date includes the following Policy and Resources contributions to Libraries and Discovery Centres, which were agreed at earlier meetings:

£

· Fleet Library - refurbishment 0 (£75,000 committed from 2003/4)

· Gosport Library - rendering 50,000

· * Tadley Library - re-roofing 70,000

· South Hampshire Library - refurbishment 28,000

· Farnborough Library - refurbishment 283,000

· Chandlers Ford Library - refurbishment 150,000

· Various accessibility projects 85,000

· Ringwood Library - refurbishment 47,000

713,000

* due to storm damage

In addition to the above £225,000 was committed on routine planned redecoration work during 2004/05.

2.4

Work to Romsey Library was delayed due to delays in obtaining planning and listed building consents and in obtaining planning consent for the disposal site, but it is now due to commence in the summer. This would leave the agreed Policy and Resources contribution of £225,000 to be found in 2005/06 and beyond from the capital repairs allocation.

3

2005/6 and beyond

3.1

The resources available in 2005-06 and the two years beyond are:

2005/6 2006/7 2007/8

£000 £000 £000

Capital Repairs 11,000 14,000 19,172

NDS Condition Fund 11,341 12,600 12,800

22,341 26,600 31,972

3.2

The Capital profile indicated in the table above proposes that expenditure is managed tightly during 2005/06 in order to build sufficient capacity in future years to accommodate the pressures identified below particularly those relating to Ashburton Court and other major liabilities. Some adjustment to this profile may need to be considered at the meeting in June when the full Corporate Risk Assessment progress report and future work plans are considered together with consideration of outstanding social care commitments including contributions to the Enhance Project. Following on from the fire alarm installation, it is proposed to install a fire suppression system in the computer suite in Elizabeth II Court at an estimated cost of £150,000, to be funded from Capital Repairs in 2005/06.

3.3

The Policy and Resources Capital programme makes annual provision for advantageous land purchases and by the end of March 2005 there will be a cumulative balance of £1.095M. Provision of £871,000 has also been made in the 2005/6 capital programme. Members will be aware of, throughout the agenda papers, a range of unusual and outstanding financial pressures particularly in relation to contributions to Education schemes. Exceptionally, it is proposed to use the £1.095m, representing the advantageous land cumulative balance, for financial contributions to projects in 2005/06, leaving a provision of £871,000 in 2005/06.

3.4

The allocations noted in 3.1 above will therefore be enhanced by £1.09m in 2005/06 by utilising the uncommitted balance in the Policy and Resources advantageous land budget enabling Policy and Resources Contributions to be made to major education and office accommodation projects at:

£,000

· South Baddesley Primary School 260

· Toynbee School, Chandlers Ford 200

· New service centre for HR Payroll
(Nuance Global House) 300

· *refurbishment of former Intech Building 300

1,060

* conditional upon giving up the lease on the Parkway in Fareham

3.5

The largest single outstanding contribution still to be funded would be to the East Hants Special School project estimated to be £700,000. At the Panel meeting on 30 November 2004 approval was given to the first phase of work at South Baddesley Primary school and funding from the 2004/05 Policy and Resources capital budgets, was given. Delays over securing the finalisation of the lease for school premises and the scope of works will mean that the project will be a first call on 2005/06 resources. The previous approval from Policy and Resources was for £225,000 which in light of the recent tender price has been uplifted to £260,000 as indicated in the table relating to the utilisation of the advantageous land balance above.

3.6

The capital repairs allocation in 2005/6 of £11m will be targeted at continuing to reduce maintenance liabilities particularly in areas such as major engineering replacements, re-cladding and external decoration and to address the priorities identified in the Corporate Risk Assessment.

3.7

The earlier report detailing the strategy for the coming year identifies a range of pressures which require to be addressed over the next three years, principally:

· Contribution towards the redevelopment or significant capital repairs to Ashburton Court


· Investment to maximise future capital repairs

· Uncertainty over NDS funding in the longer term

· Provision to support potential strategies associated with the expiry of long-term leases in 2006/7 and beyond

· Contributions to future capital projects and investment in infrastructure including outstanding commitments to Recreation and Heritage Projects and office accommodation projects

· Replacement of key property related systems, an update is provided in the Strategy report

· Priorities emerging from the CRA particularly relating to Fire Management and Legionella which will be reported to the next Panel meeting

· The need to commence a phased upgrade of Register offices

· Funding maintenance work associated with the Enhance project, this will be considered alongside other social care commitments at the next meeting.

3.8

Register Offices

A recent review of Register Office accommodation has identified a need to improve the decoration and internal environment, including accessibility, within this group of buildings. Five offices at Havant, Petersfield, Fareham, Alton and Romsey have been identified as the highest priorities to benefit from improvements in terms of their high average use and current condition. Work is therefore proposed to commence in the current year and phased over the next two years at an estimated cost of £450,000, with at least half being funded from income generated by the Registration Service and the balance from the Policy and Resources Office Accommodation budget in 2005/06 and 2006/07 as indicated in the table below:

Office Registration

Accommodation Service

£'000 £'000

2005/06 125,000 100,000

2006/07 100,000 125,000

225,000 225,000

The above breakdowns are subject to confirmation when the scope and phasing of work is identified.

Recommendation(s)

That the Panel advises the Executive Member for Policy and Resources that approval be given to:

1

The level of budgetary commitment in 2004/5.

2

The proposed allocation of the 2005/06 capital repairs budget.

3

The uncommitted balance of £1.095m from the 2004/5 Advantageous land Budget be transferred to Policy and Resources Capital Repairs allocation in 2005/06 and allocated to the projects noted in paragraph 3.4.

4

The proposed additions to the programme of the Fire Suppression work at Elizabeth II Court and the work to Register Offices at Havant, Petersfield, Fareham, Alton and Romsey.

5

The Director of Property, Business and Regulatory Services to prepare for a future meeting a report on how future liabilities and pressures can be met over the next three years.

Work Type

Budget

Commitment

Percentage

(£'000)

(£'000)

Asbestos Removal

700

371

53.0%

Planned Maintenance

3,400

3,547

104.3%

Redecorations and major repairs associated with capital projects

1,750

1,728

98.7%

Planned Electrical Repairs

250

231

92.4%

Planned Mechanical Repairs

1,300

1,317

101.3%

Strategic Maintenance

800

1,022

127.8%

Fire Precautions

350

346

98.9%

External Works & Landscaping

550

555

100.9%

Demolition

200

151

75.5%

Vandalism Prevention

320

315

98.4%

Landlord's Contributions

300

300

100.0%

County Farms

300

314

104.7%

Non Functional Buildings

0

-6

0.0%

Contingency

4

0

0.0%

CRA Contingency

-

-

0.0%

Total

10,224

10,191

99.7%

Budget

Budget

£'000

Commitment

£'000

Percentage

Replacement Systems & Components (inc.Ballards)

Electrical Safety

Joint-funded Schemes and Landlord's Minor Works

Access for Disabled People

Contingency

CRA Contingency

3,200

250

2,700

350

0

-

3,134

278

2,200

352

25

-

97.9%

111.2%

81.5%

100.6%

0.0%

0.0%

Total

6,500

5,989

92.1%

Proposed Allocation

2005/06

£000

1. Traditional Capital Repairs

Replacement Systems and components

1,800

Electrical Safety

660

Joint funded landlord's minor works and infrastructure contributions

750

3,210

2. Major Repairs

Asbestos Removal

400

Planned Maintenance

2,100

Redecorations and major repairs

associated with capital projects

1,000

Planned Electrical Repairs

Planned Mechanical Repairs

665

4,165

3. Landlord's Programmes

Strategic Maintenance

500

Fire Precautions

370

External Works and Landscaping

350

Demolition

150

Vandalism Prevention Measures

125

Landlord's contributions

350

1,845

4. Other Allocations

Access Initiatives

150

County Farms

350

Land Management

120

Non functional buildings

150

Contingency

1,010

1,780

Total

11,000

Inclusive of fees