Agenda item

Capital Programme (Monitoring Report)

B Report of the Director of Finance and Support

Decision:

.1 Cabinet approved the following schemes to be added to the capital programme for 2009-10

Scheme Reference, Description & Directorate	Narrative	2009-10 £	Future Years £	Funding Source
2009-10/GF060 Places of Change Housing GF	The overall Places of Change scheme is to provide a new flagship facility for homeless people in the borough. This project is being completed in partnership with Midland Heart Housing Association. NBC’s responsibility is to provide project management support and ensure vacant possession of the Maple Buildings site.	873,155	696,816	£1.42m CLG Grant, £149,971 Section 106
2009-10 GF063B CMP Lighting Upgrade Environment & Culture	Carbon management project to update the lighting at St John’s multi storey car park and Lings Forum Leisure Centre. This project does not require any additional funding as the external funding and match funding was approved in 2008-09.	48,334	-	50% Salix, 50% Prudential Borrowing
2009-10 GF064 Playbuilder – Kingsthorpe Recreation Ground Assistant Chief Executive	To provide a new adventure play area, aimed at 8-13 year olds, on Kingsthorpe Recreation Ground.	49,000	-	DCFS Grant
2009-10 GF066B CMP Boiler Room Pipework, Valve & Flange Insulation Environment & Culture	Carbon management project to insulate pipework at Mounts Baths, Danes Camp Leisure Centre and the Guildhall. This project does not require any additional funding as the external funding and match funding was approved in 2008-09.	17,479	-	50% Salix, 50% Prudential Borrowing
2009-10 HRA016 Woodside Way (NBC Council Dwelling New Build Scheme) Housing HRA	The construction of 8 family homes on a garage site within the Kings Heath area of Northampton. The demolition of existing garages will be required to enable the construction of the new homes. 62% of this project will be funded by NBC resources and 38% will be bid for from the Challenge Fund Pot, Homes & Community Agency (HCA)	225,957	958,036	£600,080 Prudential Borrowing, £132,000 Section 106, £451,913 HCA Grant
2009-10 HRA017 Fire Safety Works to Communal Areas Housing HRA	The Council is required to complete fire assessments to the communal areas of its flats and maisonettes. A number of improvements are expected to meet its duty under the Regulatory Reform Act & Orders. Improvements could include replacement of fire doors, emergency lighting, smoke alarms, fire stops and other significant works. This will be funded by a reduction in the decent homes budget.	100,000	-	Major Repairs Reserve

Further details of these appraisals can be seen at Annex A to this report.

2.2 That Cabinet approve the following variations to schemes in the capital programme for 2009-10.

Scheme Reference, Description & Directorate	Narrative	2009-10 £	Future Years £	Funding Source
Carbon Management Programme
2008-09 GF036B V03 CMP PowerPerfector Voltage Optimisation Environment & Culture	This project formed part of the carbon management programme that was approved in 2008-09. Due to high frequency lighting being used in the locations identified, the original savings cannot be achieved. The external funding and ring-fenced match funding will have to be used on other carbon management projects to meet the terms and conditions of the funding.	(124,886)	-	50% Salix, 50% Prudential Borrowing
2008-09 GF036B V04 CMP St John’s Lighting Environment & Culture	The final cost of this project was less than originally estimated. The underspend will have to be used on other carbon management projects to ensure the terms and conditions of the external funding are met.	(2,555)	-	50% Salix, 50% Prudential Borrowing
2008-09 GF036B V05 CMP Loft & Cavity Wall Insulation Environment & Culture	Loft insulation at Weston Favell offices was included as part of this project, however as these offices are now closed this will not be going ahead. The money released from this project will have to be re-directed to other carbon management projects to ensure the terms and conditions of the external funding are met.	(1,386)	-	50% Salix, 50% Prudential Borrowing
2008-09 GF045B V02 CMP Steam Control Valve Environment & Culture	The cost of this work was more than originally estimated. The overspend will be covered by underspends on other carbon management projects, therefore there is no additional financing requirement.	3,595	-	50% Salix, 50% Prudential Borrowing
2008-09 GF045B V03 CMP Variable Speed Drive Environment & Culture	The final cost of this project was less than originally estimated. The underspend will have to be used on other carbon management projects to ensure the terms and conditions of the external funding are met.	(401)	-	50% Salix, 50% Prudential Borrowing
2008-09 GF045B V04 CMP Building Energy Management System Environment & Culture	The final cost of this project was less than originally estimated. The underspend will have to be used on other carbon management projects to ensure the terms and conditions of the external funding are met.	(644)	-	50% Salix, 50% Prudential Borrowing
2009-10 GF007B V01 Carbon Management Programme Environment & Culture	The following carbon management projects are to be removed from the 2009-10 capital programme as the revenue savings are not achievable: Voltage Optimisation at St Johns’s MSCP (£11,757), Vending Machine Timer Controls (£1,653), Air Conditioning Unit Controls at Westbridge (£5,512), Hot Water Storage Time Switches (£8,765), Lighting Upgrade – Guildhall & Westbridge (£31,751), Guildhall Spot Lights (£827), PIR Lighting Controls at Guildhall Car Park (£4,134). These projects were to be funded by a revenue contribution from the savings on the Salix funded projects. To meet the terms and conditions of the funding the savings have to be re-invested in other carbon management projects, therefore the revenue contribution will be ring-fenced for future projects.	(64,399)	-	Revenue Financing (GF)

Housing Revenue Account
2009-10 HRA004 V02 Decent Homes & Poor Condition Housing HRA	Phase 2 of decent homes will not be on site this financial year, however work can be completed on the complete roofs project which will contribute towards decent home spend. £600k is to be removed from this project to the complete roofs project. Also, £100k is required to fund the Fire Safety Works to Communal Areas project.	(700,000)	-	Major Repairs Reserve
2008-09 HRA007 V02 Complete Roofs Housing HRA	The main decent homes phase 2 will not be started this financial year. However, roofs have been identified which can be completed in advance of the second stage and contribute towards the decent homes spend this financial year. An increase in budget of £600k is required for this work, to be funded by a reduction to the decent homes and poor condition budget.	600,000	-	Major Repairs Reserve
Private Sector Housing – GOEM funded schemes
2006-07 Slippage V16 GOEM Roofing & Electrics Housing GF	There are currently three different capital codes for decent homes works funded by GOEM. It is proposed to move all of the budget and expenditure to one capital code as often the properties require more than one type of work, which makes reconciliation between the private sector housing and finance system difficult. Also, there is no requirement by GOEM to split the grants by type of work.	(113,176)	-	GOEM
2007-08 PR005B V02 GOEM Solid Wall Insulation Housing GF	There are currently three different capital codes for decent homes works funded by GOEM. It is proposed to move all of the budget and expenditure to one capital code as often the properties require more than one type of work, which makes reconciliation between the private sector housing and finance system difficult. Also, there is no requirement by GOEM to split the grants by type of work.	(200,732)	-	GOEM
2009-10 GF026 V01 GOEM Projects – Decent Homes Housing GF	It is proposed to move the budget from the above two projects to this project. This code is currently used for general decent homes works and having the budget all on one cost centre would make the coding and reconciliation of the grants simpler.	313,908	-	GOEM
Movement between years
2009-10 GF065 V01 Improvement Works at Grosvenor Centre Car Park Planning & Regeneration	Commissioning will take place in 2009-10 with the beginning of the works in late winter/early spring, therefore the bulk of the spend will be in early 2010-11.	(1,700,000)	1,700,000	Prudential Borrowing

Further details of these variations can be seen at Annex B of this report.

2.3 That Cabinet noted:

a) The following scheme, which was approved by Cabinet on the 5 August 2009 as part of a separate report:

Scheme Reference, Description

Directorate

Narrative

2009-10

Future

Years

Funding Source

2009-10 GF065 Improvement Works at Grosvenor Centre Car Park

Finance & Assets

Major improvement works at the car park to assist the final negotiations of the proposed Conditional Development Agreement relating to the Grosvenor Greyfriars complex.

1,750,000

Prudential Borrowing

Further details of this appraisal can be seen at Annex A to this report.

b) The capital programme monitoring position as at end of June 2009, including forecast outturns and slippage into 2010-11, as set out at Annex C and D.

c) The funding arrangements for the 2009-10 capital programme as set out at Annex E.

2.4 Cabinet approved the usage of section 106 funds as outlined in paragraph 2.1 additions to the capital programme.

· GF060 Places of Change

· HRA016 Woodside Way

Minutes:

Councillor Perkins submitted a report that set out the situation in respect of the Council’s Capital Programme for 2009/10 and noted that the programme was fully funded. He also commented that many of the schemes related to carbon management and the Council’s intention to reduce its carbon footprint.

RESOLVED: (1):

Scheme Reference, Description & Directorate	Narrative	2009-10 £	Future Years £	Funding Source
2009-10/GF060 Places of Change Housing GF	The overall Places of Change scheme is to provide a new flagship facility for homeless people in the borough. This project is being completed in partnership with Midland Heart Housing Association. NBC’s responsibility is to provide project management support and ensure vacant possession of the Maple Buildings site.	873,155	696,816	£1.42m CLG Grant, £149,971 Section 106
2009-10 GF063B CMP Lighting Upgrade Environment & Culture	Carbon management project to update the lighting at St John’s multi storey car park and Lings Forum Leisure Centre. This project does not require any additional funding as the external funding and match funding was approved in 2008-09.	48,334	-	50% Salix, 50% Prudential Borrowing
2009-10 GF064 Playbuilder – Kingsthorpe Recreation Ground Assistant Chief Executive	To provide a new adventure play area, aimed at 8-13 year olds, on Kingsthorpe Recreation Ground.	49,000	-	DCFS Grant
2009-10 GF066B CMP Boiler Room Pipework, Valve & Flange Insulation Environment & Culture	Carbon management project to insulate pipework at Mounts Baths, Danes Camp Leisure Centre and the Guildhall. This project does not require any additional funding as the external funding and match funding was approved in 2008-09.	17,479	-	50% Salix, 50% Prudential Borrowing
2009-10 HRA016 Woodside Way (NBC Council Dwelling New Build Scheme) Housing HRA	The construction of 8 family homes on a garage site within the Kings Heath area of Northampton. The demolition of existing garages will be required to enable the construction of the new homes. 62% of this project will be funded by NBC resources and 38% will be bid for from the Challenge Fund Pot, Homes & Community Agency (HCA)	225,957	958,036	£600,080 Prudential Borrowing, £132,000 Section 106, £451,913 HCA Grant
2009-10 HRA017 Fire Safety Works to Communal Areas Housing HRA	The Council is required to complete fire assessments to the communal areas of its flats and maisonettes. A number of improvements are expected to meet its duty under the Regulatory Reform Act & Orders. Improvements could include replacement of fire doors, emergency lighting, smoke alarms, fire stops and other significant works. This will be funded by a reduction in the decent homes budget.	100,000	-	Major Repairs Reserve

(2) That the following variations to schemes in the Capital Programme for 2009-10 be approved.

Scheme Reference, Description & Directorate	Narrative	2009-10 £	Future Years £	Funding Source
Carbon Management Programme
2008-09 GF036B V03 CMP PowerPerfector Voltage Optimisation Environment & Culture	This project formed part of the carbon management programme that was approved in 2008-09. Due to high frequency lighting being used in the locations identified, the original savings cannot be achieved. The external funding and ring-fenced match funding will have to be used on other carbon management projects to meet the terms and conditions of the funding.	(124,886)	-	50% Salix, 50% Prudential Borrowing
2008-09 GF036B V04 CMP St John’s Lighting Environment & Culture	The final cost of this project was less than originally estimated. The underspend will have to be used on other carbon management projects to ensure the terms and conditions of the external funding are met.	(2,555)	-	50% Salix, 50% Prudential Borrowing
2008-09 GF036B V05 CMP Loft & Cavity Wall Insulation Environment & Culture	Loft insulation at Weston Favell offices was included as part of this project, however as these offices are now closed this will not be going ahead. The money released from this project will have to be re-directed to other carbon management projects to ensure the terms and conditions of the external funding are met.	(1,386)	-	50% Salix, 50% Prudential Borrowing
2008-09 GF045B V02 CMP Steam Control Valve Environment & Culture	The cost of this work was more than originally estimated. The overspend will be covered by underspends on other carbon management projects, therefore there is no additional financing requirement.	3,595	-	50% Salix, 50% Prudential Borrowing
2008-09 GF045B V03 CMP Variable Speed Drive Environment & Culture	The final cost of this project was less than originally estimated. The underspend will have to be used on other carbon management projects to ensure the terms and conditions of the external funding are met.	(401)	-	50% Salix, 50% Prudential Borrowing
2008-09 GF045B V04 CMP Building Energy Management System Environment & Culture	The final cost of this project was less than originally estimated. The underspend will have to be used on other carbon management projects to ensure the terms and conditions of the external funding are met.	(644)	-	50% Salix, 50% Prudential Borrowing
2009-10 GF007B V01 Carbon Management Programme Environment & Culture	The following carbon management projects are to be removed from the 2009-10 capital programme as the revenue savings are not achievable: Voltage Optimisation at St Johns’s MSCP (£11,757), Vending Machine Timer Controls (£1,653), Air Conditioning Unit Controls at Westbridge (£5,512), Hot Water Storage Time Switches (£8,765), Lighting Upgrade – Guildhall & Westbridge (£31,751), Guildhall Spot Lights (£827), PIR Lighting Controls at Guildhall Car Park (£4,134). These projects were to be funded by a revenue contribution from the savings on the Salix funded projects. To meet the terms and conditions of the funding the savings have to be re-invested in other carbon management projects, therefore the revenue contribution will be ring-fenced for future projects.	(64,399)	-	Revenue Financing (GF)

Housing Revenue Account
2009-10 HRA004 V02 Decent Homes & Poor Condition Housing HRA	Phase 2 of decent homes will not be on site this financial year, however work can be completed on the complete roofs project which will contribute towards decent home spend. £600k is to be removed from this project to the complete roofs project. Also, £100k is required to fund the Fire Safety Works to Communal Areas project.	(700,000)	-	Major Repairs Reserve
2008-09 HRA007 V02 Complete Roofs Housing HRA	The main decent homes phase 2 will not be started this financial year. However, roofs have been identified which can be completed in advance of the second stage and contribute towards the decent homes spend this financial year. An increase in budget of £600k is required for this work, to be funded by a reduction to the decent homes and poor condition budget.	600,000	-	Major Repairs Reserve
Private Sector Housing – GOEM funded schemes
2006-07 Slippage V16 GOEM Roofing & Electrics Housing GF	There are currently three different capital codes for decent homes works funded by GOEM. It is proposed to move all of the budget and expenditure to one capital code as often the properties require more than one type of work, which makes reconciliation between the private sector housing and finance system difficult. Also, there is no requirement by GOEM to split the grants by type of work.	(113,176)	-	GOEM
2007-08 PR005B V02 GOEM Solid Wall Insulation Housing GF	There are currently three different capital codes for decent homes works funded by GOEM. It is proposed to move all of the budget and expenditure to one capital code as often the properties require more than one type of work, which makes reconciliation between the private sector housing and finance system difficult. Also, there is no requirement by GOEM to split the grants by type of work.	(200,732)	-	GOEM
2009-10 GF026 V01 GOEM Projects – Decent Homes Housing GF	It is proposed to move the budget from the above two projects to this project. This code is currently used for general decent homes works and having the budget all on one cost centre would make the coding and reconciliation of the grants simpler.	313,908	-	GOEM
Movement between years
2009-10 GF065 V01 Improvement Works at Grosvenor Centre Car Park Planning & Regeneration	Commissioning will take place in 2009-10 with the beginning of the works in late winter/early spring, therefore the bulk of the spend will be in early 2010-11.	(1,700,000)	1,700,000	Prudential Borrowing

(3) That the following be noted:

a) The scheme below which was approved by Cabinet on the 5 August 2009 as part of a separate report: