Archived decisions

Contact: Helen Ackerman, tel 857806 email: [email protected]

1. Summary

1.1 This report sets out proposed changes to the approvals and briefly describes progress being made across the capital programme. It also highlights two potential cost pressures that are being assessed.

1.2 The wide variety of improvements and maintenance projects that make up the programme support the County Council's corporate priorities.

2. Recommendation

2.1 That changes to the 2007/08 capital programme approvals, arising from the removal of £1.094 million external funding which will now be spent directly by developers and will not come through the County Council's accounts, as set out in paragraph 3.3 of the report, be approved.

3. Overview

3.1 The Environmental capital programme is mostly funded through the Local Transport Plan (LTP) in the form of supported borrowing and grants. The LTP funding covers integrated transport schemes (tackling safety, congestion, access and environmental problems) and structural maintenance of roads and bridges. In addition, there is substantial external funding (EF) from developers' contributions.

3.2 The remaining Environment capital programme is funded from local resources within limits set by the Cabinet. These programmes include a further allocation for highway maintenance, as well as funding for environmental improvements, urban regeneration schemes and waste management (household waste recycling centres and facilities management). In some cases there is also additional funding from external sources, such as district councils, parish councils, developer contributions or grants from the South East England Development Agency or other bodies.

3.3 In January it was reported that the total approvals (for live schemes) was £117.142 million. This figure included £1.094 million approvals (EF) for Yew Tree Drive, Whitehill/Bordon and New Milton. In the case of Yew Tree Drive, EF spending will be dealt with directly by the developer and will not come through the County Council's accounts, hence this funding should not have been included in the original approvals. For both Whitehill/Bordon and New Milton, the EF funding included contributions from other parts of the capital programme (CTI, Maintenance) which again should not have been included. It is, therefore, recommended that these figures are excluded from the current approvals in future, reducing the previously reported figure of £117.142 million by £1.094 million.

3.4 The revised approvals (for live schemes) will be £116.048 million, of which £45.717 million has been spent in earlier years. A total of £56.603 million is currently forecast to be spent in 2007/08 A table showing all current approvals prior to the 2008/09 budget is attached as an appendix, which sets out the estimated spending profile for these approvals.

3.5 This table indicates that schemes could potentially underspend against their current approvals by £1.075 million, almost exclusively on externally funded transport projects in the LTP Programme. The A33/Popley Way and Fleet Town Centre schemes account for £509,000 of this `underspend' figure. The remaining £566,000 is composed of smaller differences across many projects. The A33/Popley and Fleet Town Centre schemes are both large improvement schemes that account for over £5.9 million of the EF approvals. Although both are substantially complete on the ground, neither is complete (financially) so it is not considered prudent, at this time, to reduce the approvals. This is also true for the majority of smaller differences where schemes are underway and an underspend is forecast; it is sensible to leave the approval unchanged until the scheme is complete, in case of further changes. Schemes complete (financially) are reported regularly and where an underspend has occurred the approvals will be reduced accordingly. Any unspent developer contributions at the end of a project will be redirected to other local priorities as they emerge through the normal process of scheme development.

3.6 The table also highlights a smaller potential `overspend' of £275,000 against integrated transport LTP. The figure represents a conservative estimate of the impact of the two cost increases discussed in paragraphs 4.4 and 4.5; both of which are being investigated..

4. 2007/08 Programme Update and Proposed Amendments

Integrated Transport Programme

4.1 Delivery of the Integrated Transport Programme is progressing satisfactorily and shows a slight improvement on last year. There are 19 projects expected to start on site during quarter four and nine of these not until March. These are at risk of slipping into 2008/09. The spending against these 19 projects has already been factored into the 2008/09 programme. Schemes slipping from January and February into next year put greater financial strain on the future programme than those slipping from March because their 2007/08 spend profiles are often higher.

4.2 LTP expenditure is expected to be on target at £10.5 million. The EF spending is currently £4 million, almost £2 million up on the same time last year. It is expected that the EF final spend will be in the region of £7 million.

4.3 Two significant risks have recently come to light that may affect the future programme but figures are, as yet, insufficiently certain to propose any amendments.

Witherbed Lane/Segensworth Roundabout

4.4 This major junction alteration is on site now and expected to complete in June 2008. Latest estimates are indicating the likelihood of a possible significant overspend against the current approvals of £2.650 million due to unanticipated works and delays. A detailed report will be submitted separately once the likely change in costs is known.

A3 Bus Priority Major Scheme

4.5 Construction of this £30+ million project has been ongoing since 2003/04 and is due to complete during 2008. Sections 4 and 5 were completed in 2007 and Section 6, the final phase into Waterlooville, has been commissioned. A number of high value claims have been submitted by the contractor, which are currently being examined.

Environmental Improvement Programme

4.6 This programme comprises the Regeneration of Older Urban Areas Initiatives (ROUA) the Country Towns Initiative (CTI) and the Hampshire Villages Initiative (HVI). These programmes are traditionally managed over a two-year implementation cycle in order to accommodate their extensive consultation requirements.

4.7 A significant proportion of the funding for these initiatives is drawn from external sources, particularly through partnerships with Parish and District Councils. Some projects also secure additional funding from the County Council's maintenance and LTP programmes.

4.8 Delivery of the current programmes 2006-08 has progressed satisfactorily over the year, with the first phase of many ROUA projects having been completed. Phase two of projects such as Brookvale Enhancements in Basingstoke, Glebe Gardens in Basingstoke and Rumbridge Street, Totton are all planned to start during 2008. ROUA schemes are progressing within the overall approvals, though some virements have been required between jobs.

4.9 Delivery of the CTI programme has progressed well this year. Schemes in Odiham, Titchfield and Swanmore have been successfully completed, and others in Whitchurch and Bordon are expected to start early in 2008.

Waste Management Programme

4.10 Waste management capital spend covers two areas:

(i) facilities management at landfill sites; and

(ii) household waste recycling centres.

4.11 The Household Waste Recycling Centre (HWRC) network continues to be a popular frontline public service. These sites receive 4.5 million visitors a year, depositing 250,000 tonnes of waste, but still achieve an average recycling rate above 60%.

4.12 Building work for the new split level facility in Andover is scheduled to start in May. This will provide a modern HWRC on the Walworth Industrial Estate for local residents allowing quicker and easier access than the current town centre location in Shepherds Spring Lane.

4.13 Tighter enforcement of trade waste controls at the HWRCs began on 14 February. As much as 17% of all waste deposited is thought to be trade orientated. To tackle this, restrictions are in place for commercial vehicles in the form of a permit scheme.

4.14 Smaller scale works at several landfill sites are progressing in accordance with the programme.

Roads and Structural Maintenance Programme

4.15 Delivery has progressed well during the year. All surface dressing schemes were completed before Christmas, and the programme of planned maintenance schemes is on track for completion prior to the changeover to the new term highways contractor.

Bridge Strengthening and Maintenance Programmes

4.16 Progress across the programme is generally going to plan. However strengthening of Boars Bridge, Bramley has suffered further delays owing to an overrun of utility works in the area. This scheme is now scheduled to start in April 2008.

5. Impact Assessments

5.1 The proposals in this report are derived from the department service plans and LTP objectives and are in accordance with the budget strategy and the County Council's financial management policy. An impact assessment of the department service plans and the financial management policy has been carried out and the proposals in this report are not considered to be discriminatory.

1587Rpt/HA