Archived decisions

HAMPSHIRE COUNTY COUNCIL

Decision Report :

EXECUTIVE SUMMARY

1) Summary of Decision Area:

1.1. This report concerns the management of the Environment services' capital budget for 2008/09.

2) Issues Covered in Report:

2.1. This report present details of the second quarter's capital budget monitoring position for the 2008/09 financial year, in order to provide reassurance that programmes are being delivered within current approvals, in accordance with financial regulations.

2.2. Proposed new starts of £306,000 relating to developer funded minor schemes in Rushmoor, as set out in the Appendix, are proposed to be added to the programme.

3) Recommendation:

3.1. That the new schemes in the Appendix be added to the Capital Programme.

3.2. That the actions being taken to manage expenditure be approved.

MAIN REPORT

1) Purpose of the Report:

1.1. To present details of the second quarter's capital budget monitoring position for the 2008/09 financial year, in order to provide reassurance that programmes are being delivered within current approvals, in accordance with financial regulations.

2) Contextual Information:

2.1. The report presents an overview of the second quarter's monitoring for the 2008/09 financial year. It covers the Integrated Transport, Maintenance, Bridges, Waste and Quality of Place Programmes.

3) Key Issues:

3.1. In summary, the overall Capital Programme position is generally satisfactory for this stage in the financial year and the final outturn is expected to be in line with current approvals.

3.2. However, delivery programmes for some schemes within the Integrated Transport programme have slipped over the past quarter and current spend levels are lower than in previous years.

3.3. A revision of the Whitehill/Bordon Market Towns project (Forest Centre) has now been completed. Savings have been identified and some additional funding found. The estimated shortfall is now less than £20,000.

4) Integrated Transport Programme:

4.1. The Integrated Transport Programme is mostly funded through the Local Transport Plan (LTP) settlement in the form of supported borrowing and grants. In addition, there is substantial external funding (EF) through developers' contributions.

4.2. The current approvals total £50.5 million (comprising £19.2 million LTP, £30.7 million EF and £1.2 million local resources), of this £6.9 million LTP and £7.6 million EF is related to the 2008/09 current starts programme.

4.3. The target spend this year is £9.771 million LTP and £7 million EF (comprising expenditure from ongoing schemes, the current starts programme and development costs for future programmed schemes).

4.4. LTP spend against this targets has reached £2.9 million. While this is low, compared to previous years there is no cause for concern as it seems primarily related to late billing and some held-back payments which are due to be resolved within the next month. This should put the expenditure back up to normal levels.

4.5. The overall forecast for LTP does indicate, despite the above, that a full spend can be expected this year and there are no schemes, LTP or EF funded, proposed to be rescheduled at this time.

4.6. The Whitehill/Bordon Market Towns project (Forest Centre) was highlighted in the September monitoring report as undergoing a detailed review following calculation of pre-tender estimates. This review is now complete and has effected cost savings of some £68,000 by selectively replacing the enhanced surface materials with standard grade highway materials.

4.7. Additional funding has also been identified to ensure that estimated project costs can be met. This brings the total funding package to:

£143,000 LTP (increase of £20,000)

£220,000 CTI

£ 33,500 Quality of Place (increase of £6,500)

£190,000 SEEDA (increase of £10,000)

£ 1,000 Whitehill Town Council

£ 60,000 East Hampshire District Council (£20,000 increase)

£ 10,000 Developer Contributions (new)

£ 4,500 Capital Maintenance (new)

£662,000 Total

4.8. A number of minor improvements within Rushmoor are proposed to be added to the minor works programme. The list, attached as an appendix, has been developed by the Area team in conjunction with the Borough Council, in order to make best use of developer contributions and meet local needs. The list has recently received Hampshire Action Team support and preparations are being made to deliver the schemes prior to March 2009.

5) Maintenance Programme:

5.1. The Highways and Maintenance current approvals total £24.3 million (excluding Quality of Place and Bridges) and spend to date has reached £5.8 million. Work is progressing satisfactorily with £13.3 million committed and the total approvals are expected to be spent by the end of the financial year.

5.2. The major maintenance scheme on Southampton Road, Eastleigh started in June and is anticipated to be complete before the end of November at a cost of £1.3 million.

5.3. The surface dressing programme is substantially complete at an estimated cost of £2.3 million and the additional sum of £1 million allocated for repairing the potholes has been committed and work is now well underway.

6) Bridges Programme:

6.1. The bridge strengthening and maintenance current approvals total £4.1 million and spend to date has reached £1.55 million. Good progress has been made and the approvals are expected to be spent within the year.

6.2. Bridge replacement schemes at Aldern Bridge, Newtown and Boars Bridge, Bramley have been completed, as has the flood alleviation scheme at Bull Hill, Boldre. On site and approaching completion are the flood alleviation scheme at Foxcotte Road, Andover and a brick parapet replacement scheme at Breamore Mill in the New Forest.

7) Waste Programme:

7.1. The Waste Management current approvals total £4.4 million for household waste recycling centres (HWRC) and closed landfill site management.

7.2. The construction of the new Andover HWRC started in May and was largely completed in mid October, ahead of schedule. The facility needs to be fitted out with the new site office, waste container, signs and other site furniture, as well as having all the landscape planting installed for both inside and outside the site. The new facility will be ready to open to the public in early December, slightly ahead of schedule. Spend to date totals £621,000 against a forecast of £1 million in 2008/09, all of which is expected to be spent by the year end.

7.3. Due to a land contamination issue at the old Marchwood Incinerator site the Executive Member for Policy and Resources approved the use of £1.6 million from this capital programme budget to fund additional works needed to enable the new transfer station to be built. It is expected that this work will be carried out by Veolia's contractor during 2009/10.

8) Quality of Place Programme:

8.1. The Quality of Place Programme comprises the Environmental Improvements Programme and Quality of Place Programme (highways maintenance). These two areas of the capital programme have been amalgamated, for reporting purposes, in order to link the similar types of spend.

8.2. The current approvals total £8.512 million and spend to date in 2008/09 has reached £0.26 million.

8.3. Completed schemes at Church End Green, Yateley and The Square, Hamble have both seen implementation costs rise above their contract values.

a) Church End Green, Yateley - contract value increased by £100,000. A significant proportion of this increase was incurred remedying existing defects to surfacing and drainage, optimising the efficiencies of the main contract. These additional costs have been met within the scheme budget.

b) The Square, Hamble - contract value increased by £102,000. A substantial element of this increase was due to the reconstruction of part of the carriageway and drainage replacement, for which a contribution from the highways maintenance budget of £32,000 was received. These additional costs have been mostly met within the scheme budget, but an overall increase in the budget of £17,000 remains. This project was delivered in partnership with Eastleigh Borough Council and, in accordance with the terms of that agreement, the department's share of that overspend is £6,375 (38%) which has been accommodated within the overall programme allocation.

8.4. Forecasts for the environmental improvement programme are currently £1.9 million spend this year, and the QoP (maintenance) programme will spend approximately £200,000.

8.5. Both elements of this programme are contributing to the A3 contingency fund. £1 million is being held back (£700,000 from this programme and £300,000 from Waste) pending the Government's decision on whether to fund the identified shortfall for the Major Scheme. To date, no decision has been made, although a November decision has been indicated by the Department for Transport.

9) Conclusions:

9.1. A number of small adjustments to individual scheme approvals have been made. An increase to the EF approvals of some £306,000 for minor schemes in Rushmoor will enable 18 schemes to be delivered this year and ensure timely expenditure of contributions.

9.2. Expenditure levels are generally on track and a full spend is forecast.

9.3. The next monitoring report will be presented in January 2009.

10) Recommendations:

Please see the Executive Summary for the recommendations.

1837Rpt/396/HA

CORPORATE OR LEGAL INFORMATION:

IMPACT ASSESSMENTS:

Equalities Impact Assessment

The proposals in this report are derived from the departmental 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 departmental service plans and the financial management policy has been carried out and the proposals in this report are not considered to be discriminatory.

Impact on Crime and Disorder

This is a monitoring report and has no impact on Crime and Disorder.

APPENDIX