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 presents details of the third 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. A number of amendments to the Integrated Transport Programme are discussed in section 4 of the main report.

3) Recommendations:

3.1. That the amended Integrated Transport Programme, set out in the appendix, be approved.

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

MAIN REPORT

1. Purpose of the Report:

1.1. To present details of the third 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 third 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 capital programme position is satisfactory for this stage in the financial year and the outturn is expected to be in line with current approvals.

3.2. A decision on the bid for additional funding towards the A3 major scheme is still awaited. There is currently no information on when an answer will be received. The scheme was officially opened in November and the final payments are currently being met from the contingency fund approved on 28 May 2008.

3.3. The Environment Department has four capital programme streams covering transport, maintenance, waste and environmental schemes. Total current approvals (for live schemes) stands at £115.7 million, of which £58.6 million were unused at the start of the financial year. The projected spend in 2008/09 is now forecast at £52.7 million, which is £2.0 million more than originally planned. Overall, only the transport programme is reporting a potential overspend, which is estimated at £1.7 million. This represents just 1.4% of the overall current approvals and mostly relates to the A3 major scheme. Appendix C provides a further summary.

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 £74.5 million, but excluding the A3 Major Scheme and Bus Rapid Transit they are £47.6 million (comprising £18.6 million LTP, £27.9 million EF and £1.1 million local resources), of this £5.825 million LTP and £5.487 million EF is related to the 2008/09 current starts programme. 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). Total spend this year is £9.8 million, of which £5.1 million relates to LTP, £3.2 million relates to EF and £1.5 million to the A3 Major Scheme.

4.3. The overall forecast outturn for LTP is currently on target, while the EF has reduced to around £6 million. There are a number of proposed rescheduled schemes that have resulted in this reduction.

4.4. The following schemes are proposed to be rescheduled. They will not now start within the current financial year.

(i) Lyndhurst Traffic Management. £300,000 LTP

This scheme has been on hold pending the results of additional Air Quality Modelling results and further consultation. It is proposed to be rescheduled to 2009/10 at a value of £244,000, which takes into account the bus priority scheme implemented during 2008, and the new 2009/10 Lyndhurst School Footpath proposal.

(ii) A337 Puffin Crossing, New Milton (West of Old Milton Green Road). £70,000 LTP

Latest detailed estimates indicate a total cost for this scheme in the region of £100,000. As there is no suitable EF in the area, it is proposed to use £30,000 re-badged LTP approvals from the withdrawal of Reading Road South crossings that will come forward with EF in due course. A project appraisal is planned to be submitted in January. Works are unlikely to start on site until April 2009 and it is therefore proposed that this scheme is rescheduled to 2009/10.

(iii) Whiteley to Swanwick Station Pedestrian and Cycle Improvements £260,000 EF.

Estimates for this scheme had risen beyond available funding, owing to the need to raise a bridge parapet along the route. A re-design is now underway that avoids this costly requirement. As a result, the delivery programme has slipped beyond 2008/09. A project appraisal is expected to be submitted to the Executive Member in February 2009, with works starting during the first quarter of 2009/10.

(iv) A30 Greywell Road, Old Basing (Street Lighting) £100,000 EF

The delivery programme of this scheme is awaiting the start of the Street Lighting PFI Contract to ensure that the new lighting is fully maintainable by the new contractor. A project appraisal is currently programmed for February.

(v) Old Basing Footway Improvements, £100,000 EF

Feasibility for footway improvements has been completed, but prioritising this long list with the District has resulted in their requesting other traffic management and accessibility improvements that they feel would be more beneficial. Mott Gifford are reviewing the options and a public consultation is currently planned for January 2009.

(vi) Reading Road South (Velmead) Pedestrian Crossing £40,000 LTP.

This proposed scheme is being developed as part of the Fleet Town Access Plan (FTAP), which is not due to be published until January 2009. Priority projects are yet to be determined. Given that the future LTP funding pressures are significant and that there are various developer contributions that could potentially be used to fund this scheme, it is proposed that the project be brought back into 2009/10 with EF funding, if it is deemed a priority following conclusion of the FTAP.

(vii) Overton Pedestrian Improvements £297,000 EF

It is proposed to split this scheme into two individual elements in order to deliver the smaller quick-win elements this year. The first, Overton Pedestrian Improvements, will remain in 2008/09 at £73,000 and will introduce three uncontrolled crossing points and a small length of new footway. The second phase, Overton Village Traffic and Environmental Improvements, proposed for inclusion in the 2009/10 programme will be £224,000 (the remainder of the external funding) and is likely to include a pedestrian phase at the existing signals and minor junction alterations. Details of this element are still being developed.

(viii) A343 Penwood Pedestrian Refuge, £45,000 EF

The feasibility study was extended following consultation with the Parish Council. Delivery programme has now been revised to show a start on site early in Quarter 2 2009/10. It is therefore proposed that this scheme is rescheduled to 2009/10.

(ix) Emerging Externally Funded Schemes £1.5 million EF

As at the last update in November 2008 this notional sum was in the programme at £1.5 million, to be allocated to specific projects as they emerged. As at January 2009, around £1.3 million has been identified towards specific projects and these sums have been added to the programme as new schemes, smaller increases to existing schemes, and larger allocations to minor works, Safe Routes to School and Casualty Reduction sub programmes. It is now unlikely that any further new EF schemes will be added to the 2008/09 programme at this stage, so this line entry can be removed.

4.5. The following new schemes are proposed to be entered into the programme.

(i) Gudge Heath Lane Toucan, Fareham £63,000 EF

This proposed new scheme was subject to a Gateway Review in July 2008 but was not brought forward into the programme until a more robust estimate was available. Detailed design is now nearing completion and a project appraisal is planned for January 2009. It is expected that the scheme will start on site during March 2009.

(ii) A35 Colbury Pedestrian Crossing, New Forest, £300,000 LTP

It is proposed that this scheme be brought forward into the 2008/09 programme from 2009/10 in order to correspond with the delivery dates set out in the Project Appraisal elsewhere on this agenda.

4.6. There are a number of minor amendments proposed for the rest of the programme. Of note is the Flexford Footbridge in Knightwood, £1.313 million total, of which an additional £113,000 EF is proposed to be added together with £200,000 LTP. These changes anticipate a Project Appraisal approval by the Leader in January 2009.

5. Maintenance Programme:

5.1. Highways and Maintenance current approvals are now £24 million - reduced from £24.3 million in November. This is because £250,000 of the additional £1.5 million that was added to the programme has now been transferred to the revenue budget as it is being spent on drainage clearance work which is a revenue spend item.

5.2. The major maintenance scheme on Southampton Road, Eastleigh started in June and was complete on schedule in November at a cost of £1.3 million

5.3. Assessments have indicated that we are may have around £1 million of Special Maintenance committed but not delivered by the contractor at the end of the year. This is due to a number of factors the main one being the weather, with reduced capacity as operatives are diverted to weather emergency work which has been exceptionally high this year. In addition there is some £0.3 million of Quality of Place funding which may be released if the Department for Transport (DfT) fund the A3 overspend and some £0.2 million in reserve which may not be spent. It is therefore possible that the capital programme will underspend by up to £1.5 million. If this does materialise, it will be carried forward into 2009/10.

6. Bridges Programme:

6.1. The bridge strengthening and maintenance current approvals total £4.1 million and spend to date has reached £2.48 million. Good progress has been made and the approvals are expected to be spent within the year

6.2. Many of the schemes in the programme have now been completed, including bridge replacements at Aldern Bridge, Newtown and Boars Bridge, Bramley and flood alleviation works at Bull Hill, Boldre and Foxcotte Road, Andover. Works to repair and upgrade the parapets on Redbridge Causeway are also complete as is 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. Of this £3.7 million remained unspent and available at the start of the financial year. Planned spend for 2008/09 was £1.6 million with actual spend to date amounting to £0.9 million.

7.2. The construction of the new Andover HWRC started in May and was largely completed in mid October, ahead of schedule. The facility was opened to the public on 3 December 2008, also ahead of schedule.

7.3. Spend to date totals £888,000 against a forecast of £1 million in 2008/09, all of which is expected to be spent by the year end.

7.4. The work at Marchwood Incinerator has been delayed because of the need to re-tender the project.  It is expected that the appointment of a new contractor will be made in March 2009 and that the work will be carried out during 2009/10.

7.5. Scheme are being prepared to redevelop the Casbrook and Gosport HWRCs to address operational Health and Safety issues and traffic management issues at these sites.  These schemes have been developed during 2008/09 however the capital element will be spent in 2009/10 if the schemes are given approval.

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. Current approvals total £8.4 million with £5 million unused and available at the start of the financial year. Planned spend in 2008/09 is £3.4 million although at this stage in the year only £0.4 million has actually been spent.

8.3. 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. There is no indication when a decision will be made.

9. Conclusions:

9.1. A number of schemes from the Integrated Transport Programme are proposed to be rescheduled to 2009/10. There is one proposed new entry, and a number of minor amendments as shown on the appendix.

9.2. Expenditure levels are generally in line with forecasts. If additional funding for the A3 is forthcoming this year, the £1 million spending held back as a contingency fund will need to be carried forward into 2009/10.

9.3. The next monitoring report will be presented in March 2009 and will focus on expected outturn and delivery.

10. Recommendations:

10.1 Please see the Executive Summary for the recommendations.

1864/Rpt/490/HA

CORPORATE OR LEGAL INFORMATION:

IMPACT ASSESSMENTS:

(i) 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.

Furthermore, all named schemes within the Integrated Transport Programme are subject to an independent peer review as part of the department's Gateway Process. This review requires evidence that customers and equalities have been considered and are being considered at all stages of the scheme's development.

(ii) Impact on Crime and Disorder

This is a monitoring report and has no impact on crime and disorder, however some of the schemes within the capital programme may contribute to a reduction in the fear of crime that may have been identified by local communities during consultation or development stages.

(iii) Climate Change

The Environment Department will be developing a methodology for measuring the impact of the capital programme on our carbon footprint during 2009.

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