Archived decisions

Contact: John Buckett, ext 6599 email: [email protected]

Ejner Knudsen, ext 7403 email: [email protected]

1. Summary

1.1 This report proposes amendments to the 2005/06 Integrated Transport Capital Programme (Appendix 1), a revised 2005/06 Integrated Transport Programme (Appendix 2) and an Environment Capital Programme for 2006/07 to 2009/10 (Appendix 3).

2. Introduction

2.1 The Environment Capital Programme is funded from a number of sources. The transport programme is mostly funded through the Local Transport Plan (LTP) in the form of credit approvals and grants. The Local Transport Plan funding covers integrated transport schemes (tackling safety, congestion, access and environmental problems) and structural maintenance of roads and bridges. In addition there is substantial transport funding through developers' contributions.

2.2 Most of the rest of the Environment Department Capital Programme is funded from local resources within limits set by Cabinet. These programmes include a further allocation for highway maintenance as well as environmental improvements, regeneration schemes, landfill sites remedial works and waste management (household waste recycling centres and facilities management). There is often additional funding from external sources usually district council, parish council, developer contributions or grants from SEEDA or other bodies.

2.3 This report covers an update of the 2005/06 integrated transport programme followed by the proposed programme for 2006/07 to 2009/10 for the LTP and locally funded programmes as far as they are known.

3. Integrated Transport Programme 2005/06 - Proposed Amendments

3.1 A number of schemes in the 2005/06 Capital Programme are now reported not to be starting on site within the financial year. The list of changes is set out in Appendix 1.

3.2 It is proposed to add further allocations for Alton Town Centre Accessibility (£50,000), for the casualty reduction programme (£300,000), and for the interchanges programme (£15,000) in 2005/06 with adjustments made to the 2006/07 programme. This is principally to allow works to progress earlier (the Alton project appraisal is on this agenda) which will help ensure that spending targets are met within 2005/06. There are also minor changes in the programme reported in Appendix 1.

3.3 All of the deferred schemes are proposed to be started in 2006/07 except two which are deferred until 2007/08. These are the Fareham Western Wards Distributor Road extension which is delayed by the need to treat Japanese knotweed, and the Cupernham Lane/Winchester Road junction improvements in Romsey where further design options may be required.

3.4 The revised 2005/06 Integrated Transport Programme is set out in Appendix 2.

3.5 Details of a revised externally funded minor works programme for 2005/06 are set out in Appendix 2a, which includes some schemes formerly listed in the main programme.

4. Local Transport Plan Programme 2006/07 to 2009/10

Resources

4.1 A discussion of the settlement received from the Government Office for the South East with respect to funding being made available through the Local Transport Plan process is set out in the report on the Local Transport Plan being considered by the Environment Policy Review Committee and Cabinet in January.

4.2 On 14 December 2005 the Government Office for the South East advised the County Council of its assessment of Hampshire's Local Transport Plan Annual Progress Report (APR), submitted in July 2005, together with its allocation of resources. Relative to other local transport authorities, the County Council's performance in 2004/05 was assessed as `good'.

4.3 The total block allocation of resources for 2006/07 is £27.907 million, comprising £13.306 million for integrated transport and £14.601 million for maintenance. The maintenance allocation is the same as that indicated in the previous settlement letter. The settlement letter also gave planning guideline figures for integrated transport for future years. These are £12.001 million in 2007/08, £12.244 million in 2008/09, £12.480 million in 2009/10 and £12.710 million in 2010/11.

4.4 The County Council has been allocated funding of £6.261 million in 2006/07 to continue work on the A3 Bus Priority Corridor which was accepted as a major scheme by the Government on 28 October 2003. The funding is split, 50% Section 56 grant which is ring-fenced to the A3 project and 50% supported capital expenditure.

4.5 Integrated transport allocations for the five years of the LTP period (2006/07 to 2010/11 total £62.7 million (but could be increased by reward funding). For maintenance, the previously announced provisional funding levels range between £15.9 million and £18.2 million for 2007/8 to 2010/11, but these are likely to alter as the formula employed to produce the allocations is to change. For planning purposes it has been assumed that the allocations for future years will be £15 million for maintenance, those for integrated transport will be in line with the guidelines indicated in the settlement letter.

Programme Levels

Highways Maintenance and Bridges

4.6 The LTP highways maintenance programme levels are proposed to be set in line with the settlement allocation for 2006/07 and at a provisional level of £15 million per annum thereafter. It is proposed to enhance this with transfers from the LTP integrated transport allocation, these transfers will be £400,000 in 2006/07 and 2007/08 and reducing in later years. At the same time the locally resourced maintenance programme will be reduced accordingly to fund integrated transport studies within the revenue budget, which is a reduction of £250,000 compared to the allowance in the 2005/06 budget.

4.7 There is an additional transfer of funding of £800,000 each year from the integrated transport LTP allocation to enhance the street lighting column replacement programme. There is a possibility of a Private Finance Initiative (PFI) bid with respect to street lighting column replacement. If a bid is made and proves successful then this allocation could change.

4.8 The proposed LTP funded maintenance and bridges programme for 2006/07 is for £15.0 million, comprising £11.5 million for highways maintenance and £3.5 million for bridges. Details of the programmes will be presented to the Executive Member for Environment: South Hampshire and Resource Management in March.

Integrated Transport

4.9 The integrated transport 2006/07 programme is affected by both the LTP settlement and the amount of committed expenditure carried forward from the 2005/06 and earlier programmes.

4.10 For 2006/07, a lower than anticipated settlement and the transfers to maintenance mean that the new starts programme will need to be limited to contain spending within the allocation.

2006/07 and Second LTP Integrated Transport Programme

4.11 The proposed new programme is set out in Appendix 3a. It is based on the draft programmes presented to the Area Transport Strategy Panels in the autumn but amended to reflect the LTP settlement and the commitments carried forward from the 2005/06 programme.

4.12 Appendix 3 of this report extends the information provided in the LTP report presented to the Environment Policy Review Committee on 18 January 2006. It identifies the whole of the proposed 2006/07 to 2009/10 programme, including, where known, specific proposals for years up to 2009/10 as well as generic headings where specific schemes have yet to be identified.

4.13 The four-year starts programme has been designed to meet the base level LTP spending allocations announced in the LTP settlement letter. The programmes can be increased should reward funding be received. The integrated transport programmes from 2006/07 to 2010/11 are set out in Appendices 3a-3e.

Prioritisation - including Asset Management and Whole Life Costing

4.14 The prioritisation of the five-year LTP programme is described in detail in the LTP document (reported to Environment Policy Review Committee on 18 January 2006).

4.15 The prioritisation is at two levels. Firstly there is a policy prioritisation which identifies the breakdown required to make progress towards Government LTP and County Council targets and objectives (such as safety, accessibility and air quality). At the second level schemes are prioritised within policy areas based on their value for money in terms of meeting policy objectives, asset management considerations, commitments and (particularly for the early years) deliverability.

4.16 Each scheme has been assessed against criteria based on Hampshire County Council's LTP objectives, its Corporate Objectives and the Government's transport objectives of Economy, Environment, Accessibility, Safety and Integration. Draft programmes were presented to the Area Transport Strategy Panels in autumn 2005.

Asset Management

4.17 The Capital Programme has been prepared taking into account the principles embodied in the emerging Transport Asset Management Plan. Part of the integrated transport programme is dedicated to projects which reduce future maintenance requirement (particularly the casualty reduction programme) as well as the whole of the Maintenance and Bridges programme.

4.18 Revised programme management systems to be introduced in 2006/07 include consideration of whole life costings and maintenance implications; where possible these costs will be accounted for at each stage of project development (including project appraisals) and through setting aside funding to cover future costs.

4.19 Priority has been given to asset management as demonstrated by the transfer to street lighting column replacement as well as commitments and the four shared (Government/Local Government) priorities of safety, access, tackling congestion and air quality as well as commitments to corporate priorities, including the environment and economy.

Support for Market Towns Project and Environmental Schemes

4.20 The four-year capital programme as a whole includes funding for schemes in the County Council's `Market Towns Project', as appropriate from the maintenance, integrated transport and environmental improvements budgets to provide match funding to complement SEEDA grants, district council and local contributions. In the four-year integrated transport programme, support for schemes in New Milton, Bordon/Whitehill and Whitchurch has been identified.

Developer Funded Programme

4.21 Schemes wholly or partly funded by developers' or other contributions are included in the programme, as detailed in Appendices 3 and 3a-3e. The programme totals £5 million for 2006/07. The programmes for 2007/08, 2008/09 and 2009/10 are anticipated to be in the region of £6 million per annum. Schemes have been named only where there is reasonable confidence on funding security and programme dates and so these programmes are expected to grow.

Major Schemes

4.22 Major schemes bids can, under new Government rules, be submitted at any time and are no longer artificially constrained to the start of the five-year LTP programme. A number of schemes are being prepared for possible bids, including Chickenhall Lane Link Road and Winchester Park and Ride. The draft final LTP which sets out the County Council's long-term strategy and possible major schemes will be considered by the Council.

5. Locally Funded Programmes

5.1 Provisional capital guideline figures were set by the Cabinet at its meeting on 19 December 2005 for the locally resourced programme for the Environment service, although minor changes to the figures have subsequently been made. The adjusted guideline figures are:

£000

2006/07 11,445

2007/08 11,445

2008/09 11,445

2009/10 11,445

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

5.3 Executive Members have been requested to exemplify how 2.5% efficiency improvements are being achieved which is set out in the report on the revenue budget, elsewhere on this agenda. As with new revenue proposals, new capital schemes added to the programme should be accompanied by an outline business case demonstrating how performance will be improved and value for money achieved.

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

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

5.6 In addition, Executive Members may also propose schemes funded from:

(i) use of Executive Member's share of capital receipts obtained in 2004/05 as allocated by the Cabinet in June 2005 (if not already used for the 2005/06 programme); and

(ii) anticipating their share of capital receipts obtained in 2005/06 provided the receipt has actually been received.

6. Capital Programme 2006/07 to 2009/10 - Locally Resourced Schemes

6.1 The following programmes for 2006/07 to 2009/10, totalling £11.326 in 2006/07 and £11.411 million per annum thereafter, are proposed for the locally funded programmes. These take into account the proposals for transfers and adjustments between revenue and capital set out in this report as well as various proposals contained in the report on the 2006/07 and 2007/08 revenue budget elsewhere on this agenda, which result in an overall reduction in the capital guideline figure of £119,000 in 2006/07 falling to £34,000 from 2007/08 onwards. The allocations for 2006/07 are:

(i) £9,373,000 for Structural Maintenance of Non-Principal Roads;

(ii) £865,000 for Environmental Improvements;

(iii) £63,000 for Landfill Sites Remedial Works; and

(vi) £1,025,000 for Household Waste Recycling Centres.

6.2 Details of the proposed programmes will be submitted to the March meeting of the Executive Member.

6.3 In addition it is proposed that the share of capital receipts obtained in 2004/05 totalling £66,000, as allocated by Cabinet in June 2005, be retained as a reserve at this time in the 2006/07 programme, to cover any unforeseen cost increases.

6.4 It is not proposed to add any schemes under the `prudential framework'.

Waste Management-- proposed investment 2006/07 £1,088,000

Household Waste Recycling Centres £1,025,000

6.5 The HWRC capital programme will facilitate the achievement of higher recycling performances as well as providing much needed investment to improve the network. Many existing HWRCs are too small for the level of use they receive and are of an outdated design. Some sites have only temporary planning consent while in some parts of the county there are `Service Gap' areas where provision is limited or non-existent.

6.6 The proposed investment (over the three years from 2005/06) is predicted to raise the average recycling rate from 50% in 2004/05 towards 65% as set out in the Waste Management Business Plan.

6.7 Following feasibility studies and prioritisation work in 2005/06 new `split level' sites are proposed to be progressed in 2006/07 to serve residents of Romsey and Andover. The combined cost of these projects is £2.5 million and if successful they could be open by the end of 2007.

6.8 Other sites being assessed include the relocation of sites in Havant, Marchwood, Eastleigh, Waterlooville, Aldershot and Somerley.

6.9 The improvements to the network will complement the £1.74 million of Wrap award secured from Defra in December 2003.

6.10 This external funding is being used for Winchester (opened December 2004), expansion at Alton (completed January 2005) and expansion at Basingstoke (due for completion February 2006).

Facilities Management £63,000

6.11 The annual capital programme for facilities management is £63,000. It will be used to deliver pollution control works at closed unlicensed landfill sites and pollution control/remediation works at closed licensed sites managed under contract with Hampshire Waste Services.

6.12 The current allocation will allow only a minimum programme of short term solutions to be delivered. Efforts are continuing to develop a programme that will provide the necessary long term solutions to reduce risk and avoid increasing revenue costs.

7. Capital Programme Summary

7.1 On the basis of the position outlined above, the total value of the capital programmes submitted for consideration for the four years to 2009/10 are:

7.2 The following table summarises the proposed 2006/07 capital programme over the main categories of expenditure:

£'000

Structural maintenance of roads and bridges 24,374

Integrated transport schemes 9,253

Street lighting columns 800

Environmental improvements 865

Waste management 1,088

Other programmes (reserve sum) 66

Total 36,446

8. Revenue Implications

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

8.2 The total revenue implications for the four years of the starts programme, including capital charges, represent a real term increase of 12% over the 2005/06 original budget of this service.

9. Impact Assessments

9.1 The programme will promote County Council corporate and Local Transport Plan objectives, in particular reflecting priorities for asset management, safety, accessibility, stewardship of the environment and the economy.

Recommendations

1. That the proposed changes in the 2005/06 Integrated Transport Capital Programme, as set out in attached Appendix 1, be approved.

2. That the revised 2005/06 Integrated Transport Capital Programme, as set out in attached Appendix 2, be approved.

3. That the Environment Capital Programme for 2006/07 to 2009/10, as set out in Appendix 3, be approved for submission to Cabinet.

735Rpt/JWB