Archived decisions

Hampshire County Council

Cabinet

30 October 2006

Local Public Service Agreement -
Reward Grant Investment Proposals

Report of the Director of Environment

Item 9

Contact: Tom Niedrum, ext 6931 email: [email protected]

1. Summary

1.1 The proposals set out in this report are diverse and generally support making Hampshire safer and more secure for all and enhancing quality of place. These factors are set out more clearly within each business case.

2. Background

2.1 The Environment Department contributed significantly to the County Council receiving a reward grant from the first Local Public Service Agreement (LPSA). Three LPSA targets were successfully delivered by Waste Management, Road Safety and Highways.

2.2 Of the £3.1 million received for Environment, Cabinet has already invested £0.5 million to part-fund the Yellow Bus pilot, and a further £0.5 million to increase balances following the Adult Services outturn in 2005/06.

2.3 This leaves £2.1 million of LPSA reward grant which the Department is now proposing to invest in the following ways:

(i) increasing capacity to undertake feasibility and design work on capital schemes, to accelerate the release of developer contributions to support the capital programme during a period of potentially reduced supported borrowing during 2008/09 to 2010/11 (£0.5 million proposed as a rolling fund);

(ii) helping to contain future waste contract cost increases and to achieve LPSA2 stretch targets in Waste Management and Road Safety, which in turn, if successful, should result in a further reward grant (£1.2 million proposed); and

(iii) investing in highways initiatives and innovations which support "quality of place", sustainability and greater efficiency (£0.4 million proposed).

2.4 Some flexibility is requested so that should accelerated developer contributions and the new road safety grant not fully replace the withdrawn supported borrowing for integrated transport in 2007/08, the balance could be met from LPSA funds. Provided capital funding is confirmed, the residual funds would then be released.

3. Investment Proposals

3.1 Table 1 below provides a summary of the Environment Department's investment proposals. It is supported by a series of appendices which summarise the business cases in support of each proposal.

Table 1 - LPSA Reward Grant - Investment Proposals


Group	Investment Proposal	£'000	Appendix
1	Highways: Accelerate release of developer contributions To increase capacity to identify suitable schemes and undertake feasibility and design work, accelerating the release of developer contributions to deliver appropriate highways infrastructure schemes for the betterment of Hampshire. The fund would be partially replenished as schemes came to fruition by charging appropriate costs to each scheme. This would also enable the Department to mitigate the impact of a significant cut in supported borrowing for a period, should the Government not reinstate the link between supported borrowing and revenue grant from 2008/09.	500	1
2	Waste: Material flow planning To analyse and understand material resource flows, methods of management and planning across the municipal, commercial and industrial sectors, and to identify the optimum collection and transport systems and processing routes for waste and recyclables. To develop an implementation plan setting out the specification for optimised recycling collection systems, priorities for new domestic waste infrastructure, and priorities for private sector investment in business waste facilities. It is envisaged that this work, and any subsequent infrastructure investment, will help to contain future municipal waste cost increases in the longer term, which arise from landfill tax, legislative requirements and growth in waste volumes.	100	2
	Waste: Capacity optimisation at household waste recycling centres (HWRCs) To provide facilities to compact all waste types at HWRCs to reduce number of bins filled and resulting transport costs and increase recycling capacity at HWRCs. It is estimated that the implementation costs will be recouped over a short, three to four year period. The realisation of cost benefits will be subject to the outcome of detailed contractual negotiations with the long term disposal contractor which will cover this, and other operational issues.	350	3
	Waste: Sustainable transport flows To review the planned movement of materials between county facilities and ensure that the transport network is designed to operate with the optimal combination of efficiency and impacts in terms of congestion, local environmental impact and carbon loading. To put in place plans to help mitigate the future cost increases in transport charges.	50	4
	Waste: Infrastructure investigations To undertake investigative work to help direct future infrastructure investment to minimise costs and better contribute towards wider environmental concerns (eg carbon impacts). It is anticipated that any subsequent newly developed infrastructure would lead to reduced landfill exposure and possible additional Landfill Allowance Trading Scheme (LATS) income.	400	5
	Road Safety: Young driver safety ("Pass Plus" courses) To deliver a pilot subsidised driver training scheme for about 500 young drivers aimed at reducing the high casualty rate in the 17-24 years age group. If the killed and seriously injured indicator can be reduced by just one person, this represents a 5% improvement in this aspect of the indicator and would generate just under £1.5 million benefit to society.	100	6
	Road Safety: Reinstatement of casualty reduction engineering schemes To deliver an enhanced capital safety programme by refurbishing about 30 existing road safety schemes at higher risk locations. Each scheme would be expected to reduce one personal injury accident over a three year period. This would yield 10 fewer injuries per year across the 30 schemes, and an estimated annual benefit to society of some £0.6 million.	200	7
3	Highways initiatives and innovations To fund highways projects and pilot schemes aimed at enhancing quality of place, utilising new technology to help deliver the highways management service in more sustainable ways, or improving efficiency. Sample projects could include refurbishment of roadside heritage (eg milestones), protecting and maintaining road edges in the National Park area to enhance and protect the environment in the forest immediately adjacent to roads, efficiency improvements in how gully and other organic wastes are dealt with, through better use of transfer stations and soil production facilities, and schemes aimed at reducing energy consumption in highway management.	400	8
		2,100

Recommendation

That the release of the allocation of £2.1 million of Local Public Service Agreement reward grant to the Environment Department for the investment proposals summarised in Table 1 of the report be approved, and noting the need for flexibility set out in paragraph 2.4 of the report, to ensure the level of spending on the integrated transport capital programme is as proposed.


LINK(S) TO CORPORATE STRATEGY
	Yes	No
Hampshire safer and more secure for all	_

Maximising well-being		_

Enhancing our quality of place	_


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.

1114Rpt/TN

APPENDIX 1


Highways: Accelerate release of developer contributions - £500,000
How the money will be spent	To identify potential schemes and projects which would accelerate the release of existing developer contributions to deliver LTP infrastructure priorities. To undertake feasibility studies, identify engineering solutions and design appropriate schemes.
Corporate priorities supported	Where possible, schemes identified will try to take a holistic approach to enhance the environmental surroundings as well as deliver infrastructure. Some of the schemes will be road safety and traffic calming projects which will make the roads concerned safer.
Other priorities supported	N/A
LPSA2 targets supported	This proposal touches on LPSA Outcome 5 (safer roads and journeys) and reducing the number of killed and seriously injured on Hampshire's roads.
Other KPIs supported	Failure to maintain spend on infrastructure will have a likely downward impact on several KPIs, although this is not quantifiable. The effect would be more obvious if it built up over time. Specific KPIs affected include progress against LTP targets, pedestrian crossings with disabled facilities and number of journeys on buses.
Service outcomes	To maintain an infrastructure programme of somewhere between £10-12m per year, funded 50% from developer contributions.
Projected savings	£5.7m of supported borrowing in 2007/08 and more in future years if the Government does not reinstate the link between supported borrowing and revenue grant. Some of the work will be capitalisable and so the money will be recycled into a "rolling fund" to continue to release developer contributions beyond the initial time horizon.
Other deliverables	To use the existing contributions in the most effective way and to seek to identify potential schemes earlier, reducing the time taken for developers' contributions to be processed.
Key risks	Without accelerating the release of developer contributions to replace supported borrowing, the highways integrated transport programme would reduce significantly. There are a series of complications and constraints associated with funding LTP priorities from contributions, but these are deemed manageable, especially compared to cutting infrastructure spending by up to £5.7m per year.

APPENDIX 2


Waste: Material flow planning - £100,000
How the money will be spent	To analyse material resource flows, methods of management and planning, and to identify the optimum collection and transport systems and processing routes for waste and recyclables.
Corporate priorities supported	Enhancing the quality of place by reducing the level of journeys for transporting waste and recyclables.
Other priorities supported	Efficient and sustainable business supporting waste minimisation and recycling initiatives.
LPSA2 targets supported	Indirectly to LPSA outcome 11 (sustainable use of natural resources) and target 16 (increased tonnage of waste diverted from landfill).
Other KPIs supported	Project outcomes will help to reduce, or at least slow down service unit cost increases which is one of four (BVPIs) measured each year. Equally, service provision and customer satisfaction is likely to be enhanced and this is another area where the Audit Commission measure performance.
Service outcomes	· The planned output is an implementation plan setting out (i) the specification for optimised recycling collection systems; (ii) priorities for new domestic waste infrastructure; and (iii) priorities for private sector investment in business waste facilities. · Better understanding of future material resource (waste and recycling) volumes. · Development of more effective transport systems and processing routes in the longer term.
Projected savings	This work would lead to developing infrastructure to keep Hampshire within the strict thresholds set as part of the Landfill Allowance scheme. Failure to deliver this infrastructure could lead to increased costs of up to £3m in 2015/16, rising significantly to beyond £10m by 2020.
Other deliverables	Possible contribution to HCC controlled energy generation and realisable outcome of reducing HGV use on Hampshire roads.
Key risks	Minimal. Each of the projects will be controlled and managed in-house.

APPENDIX 3


Waste: Capacity optimisation at HWRCs - £350,000
How the money will be spent	To provide facilities to compact all waste types at HWRCs to reduce number of bins filled and resulting transport costs and increase recycling capacity at HWRCs.
Corporate priorities supported	Enhancing the quality of place by reducing the number of journeys for transporting recyclables, and by improvements to accessibility to HWRCs.
Other priorities supported	Efficient and sustainable business supporting waste minimisation and recycling initiatives.
LPSA2 targets supported	Indirectly to LPSA outcome 11 (sustainable use of natural resources) and target 16 (increased tonnage of waste diverted from landfill).
Other KPIs supported	Project outcomes will help to reduce, or at least slow down service unit cost increases which is one of four (BVPIs) measured each year. Equally, service provision and customer satisfaction is likely to be enhanced and this is another area where the audit commission measure performance.
Service outcomes	· Greater capacity at HWRCs. · Improved use of space at HWRCs. · Improved site safety. · Promotes sustainability.
Projected savings	Based on a 2004 study, use of compactors should result in 15-30% reduction in the numbers of bins filled. It is estimated that the implementation costs will be recouped over a short, three to four year period. The realisation of cost benefits will be subject to the outcome of detailed contractual negotiations with the long term disposal contractor which will cover this, and other operational issues.
Other deliverables	Possible contribution to HCC controlled energy generation and realisable outcome of reducing HGV use on Hampshire roads.
Key risks	Complex and protracted negotiations with the contractor on a range of operational issues mean that the realisation of financial savings to expected levels is not guaranteed.

APPENDIX 4


Waste: Sustainable transport flows - £50,000
How the money will be spent	To address the planned movement of materials between countywide facilities and ensure that the transport network is designed to operate at its optimum capacity whilst recognising the impact on the general public in terms of congestion, local environmental impact and climate change.
Corporate priorities supported	Enhancing the quality of place by reducing the level of journeys for transporting waste and recyclables.
Other priorities supported	Efficient and sustainable business supporting waste minimisation and recycling initiatives.
LPSA2 targets supported	Indirectly to LPSA outcome 11 (sustainable use of natural resources) and target 16 (increased tonnage of waste diverted from landfill).
Other KPIs supported	Project outcomes will help to reduce, or at least slow down service unit cost increases which is one of four (BVPIs) measured each year. Equally, service provision and customer satisfaction is likely to be enhanced and this is another area where the audit commission measure performance.
Service outcomes	To deliver a wide ranging report covering benchmarking, options and scenario planning to optimise operations, statistical and impact analysis, operational trials, performance monitoring framework, contingency planning and recommendations.
Projected savings	To inform about the efficiency of the current transport network and put in plans to mitigate the future cost increases in transport charges (averaging 6.8% over the last 15 years compared with RPI of 3.4%).
Other deliverables	Possible contribution to HCC controlled energy generation and realisable outcome of reducing HGV use on Hampshire roads.
Key risks	Minimal. Each of the projects will be controlled and managed in-house.

APPENDIX 5


Waste: Infrastructure investigations - £400,000
How the money will be spent	Investigative work will allow future infrastructure investment to be targeted/focussed, to better contribute towards wider environmental concerns e.g. carbon impacts and to possibly be cross subsidised by the private sector.
Corporate priorities supported	Enhancing the quality of place through better utilisation of material resources, reduced landfill exposure and reduced carbon emissions.
Other priorities supported	Contributes to the Environment Department aims of "linking spaces", "improving places" and "sustaining resources".
LPSA2 targets supported	Indirectly to LPSA outcome 11 (sustainable use of natural resources) and target 16 (increased tonnage of waste diverted from landfill).
Other KPIs supported	Project outcomes will help to reduce, or at least slow down service unit cost increases which is one of four (BVPIs) measured each year. Equally, service provision and customer satisfaction is likely to be enhanced and this is another area where the audit commission measure performance.
Service outcomes	Focussed decision making relative to new infrastructure.
Projected savings	Newly developed infrastructure will lead to reduced landfill exposure and possible LATS income.
Other deliverables	N/A
Key risks	Minimal. Each of the projects will be controlled and managed in-house.

APPENDIX 6


Road Safety: Young driver safety - £100,000
How the money will be spent	To deliver a pilot subsidised driver training scheme for young drivers to reduce the high casualty rate in 17-24 years age group.
Corporate priorities supported	Hampshire safer and more secure for all, by reducing the number and severity of road traffic casualties.
Other priorities supported	N/A
LPSA2 targets supported	LPSA2 Target 8 (safer roads and journeys) by further reducing the number of killed and seriously injured on Hampshire's roads.
Other KPIs supported	This is a high profile area affecting CPA, BVPIs, LTP2 and the LAA Health and Well Being objectives
Service outcomes	· To deliver training to 500 young people by the end of 2007/08. · A reduction of 5% in the number of young people killed and seriously injured. This equates to 1 death prevented (out of 20), and 10 serious injuries prevented (out of 200).
Projected savings	There would be no cash saving to the Council, but under Government valuations of the cost of road casualties to the UK community, this would deliver an estimated annual benefit to society of £1.47m, which we can count towards our Gershon efficiencies.
Other deliverables	Greater public awareness of the County Council's efforts to improve driver and passenger safety.
Key risks	None identified.

APPENDIX 7


Road Safety: Casualty reduction betterment and refurbishment schemes - £200,000
How the money will be spent	To deliver an enhanced capital safety programme to permit an increased number of previously installed road safety engineering measures at higher risk locations to be refurbished.
Corporate priorities supported	Hampshire safer and more secure for all, by reducing the number and severity of road traffic casualties.
Other priorities supported	N/A
LPSA2 targets supported	LPSA Target 8 (safer roads and journeys) by reducing the number of killed and seriously injured on Hampshire's roads.
Other KPIs supported	This is a high profile area affecting CPA, BVPIs, LTP2, and the LAA.
Service outcomes	· Improvements to about 30 existing road safety schemes in high risk areas (those with a worsening casualty record). · Each scheme would be expected to reduce personal injury accidents by 1 over a 3 year period. This would yield 10 fewer injuries per year across the 30 schemes. · Improved network condition.
Projected savings	There would be no cash saving to the Council, but under Government valuations of road traffic casualties, this would deliver an estimated annual benefit to society of £660,000.
Other deliverables	Improved Member and public satisfaction with engineering programmes to upgrade / maintain previously installed safety schemes.
Key risks	None identified.

APPENDIX 8


Highways: Initiatives and innovations - £400,000
How the money will be spent	To fund highways projects and pilot schemes aimed at enhancing our quality of place, utilising new technology to help deliver the highways management service in more sustainable ways, or improving efficiency.
Corporate priorities supported	Likely to mostly affect "enhancing our quality of place" depending on the nature of the specific projects.
Other priorities supported	Improving sustainability and business efficiency.
LPSA2 targets supported	N/A
Other KPIs supported	N/A
Service outcomes (project specific)	· Refurbishment of roadside heritage (e.g. milestones). · Protecting and maintaining road edges in the National Park area to enhance and protect the environment in the forest immediately adjacent to roads. · Efficiency improvements in how we deal with gully and other organic wastes through better use of transfer stations and soil production facilities. · Using less energy for highway management. · Demonstrating commitment to the environmental agenda.
Projected savings	Some of the proposals will deliver revenue savings. So far about £40,000 has been identified for two projects related to gully waste.
Other deliverables	Encourages managers to consider alternative approaches to service delivery.
Key risks	None identified.

This content is archived