Agenda item

Capital Programme Monitoring 2009-10 Period 7: Project Appraisals and Variations

B Report of the Director of Finance and Support

Decision:

1.            Approval is given for the following scheme to be added to the capital programme for 2009-10.

 

Scheme Reference, Description

&

Directorate

Narrative

2009-10

£

Future

Years

£

Funding Source

2009-10/HRA018 Capital Improvement Works

 

Housing HRA

Adhoc capital improvements to properties, that are not included in the schedule of work for other HRA projects, but where work is required within the financial year to meet the decent homes standard. Examples of work will include replacing windows, heating systems, roofs, kitchens and bathrooms.

300,000

-

MRA

 

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

 

2. Approval is given for the following variations to schemes in the capital programme for 2009-10.

 

Scheme Reference, Description

&

Directorate

Narrative

2009-10

£

Future

Years

£

Funding Source

Budget Increases

*2007-08 /CS0026 V04

IBS Housing Management System

 

Housing HRA

Following restructure of the housing service, the implementation of outstanding IBS modules was put on hold pending an independent review. The review, which has recently concluded, confirms that IBS is a fit for purpose industry standard solution, and made a key recommendation that all outstanding business critical modules should be rescheduled for implementation.

This represents an additional sum of £186K over and above the current budget.

 

61,135

125,250

HRA Earmarked Reserve

2008-09/GF074 V01 Playbuilder – Eastfield Park

 

Environment & Culture

NBC were awarded £50k from DSCF in 2008-09 for the Playbuilder in Eastfield Park scheme. The funding received was £50,500 and NCC have advised to spend the additional £500 and the underspend from 2008-09 on the scheme in 2009-10, as opposed to returning it.

500

-

DSCF

Budget Reductions

2006-07 Slip V17 Urban Enhancement

 

Planning & Regeneration

A revised proposal due to site conditions has reduced the expenditure required, as has the fact that County Council is now paying for the installation of the town signs. This reduction in budget therefore represents a saving.

(4,670)

-

Prudential Borrowing

2008-09/GF078 V01             DPPO Signage

 

Environment & Culture

NBC was awarded a grant from the Home Office in 2008-09 for DPPO signage. £10k of this was allocated to capital, however not all of this was required. The terms and conditions of the grant outline that the funding can be spent on either capital or revenue items, therefore it is proposed to move this remaining funding to the revenue cost centre for DPPO signage to enable it to be utilised.

(380)

-

Home Office

2007-08/CS029 V01

Abington Museum Upgrade

 

Environment & Culture

NBC resources are required to support an application to the Heritage Lottery Fund for funding to upgrade Abington museum.  The change in the museum's opening times has made it less likely that the application, for such a large amount, will be successful. Therefore a decision has been made to not proceed with the application and the project is to be withdrawn from the capital programme.

(987,575)

-

£900k Heritage Lottery Fund, £87,575 Prudential Borrowing

Neutral Budget Impact

2007-08/GI0010 V03

 One Stop Shop, CRM

 

Finance & Support

To purchase a corporate solution for authentication of secure on-line transactions that will initially support recovery and e-benefits but provide increased on line capability in terms of providing secure authentication for all other services such as Housing Repairs.

6,000

-

£4k Prudential Borrowing, £2k Revenue Financing

2008-09/GF043 V05

 E-Benefits Application

 

Finance & Support

Take up for E-Benefits application is now being linked to the 24 Claim Guarantee scheme and will be extended to all new E Benefits claims in the future. A smaller take up budget is thus required against this project in 2009-10. This saving is to be moved to assist in the funding of additional software within the One Stop Shop CRM capital project to enable customer self serve options to be expanded.

(4,000)

-

Prudential Borrowing

2008-09/GF080 V01

 EDT Workflow

 

Finance & Support

The funding reserve for additional consultancy has proved not to be required. These funds will be moved to support the wider agenda of the One Stop Shop CRM capital project, to introduce self-serve options for our customers. 

(2,000)

-

Revenue Financing

2008-09/GF081 V01

 Lings Forum Wetside Changing Rooms

 

Environment & Culture

Due to unforeseen work this project has overspent by £1,845. This will be funded by a reduction to the Fire Door Improvements project.

1,845

-

Prudential Borowing

2008-09/GF067B V02

Fire Door Improvements

 

Finance & Support

This budget will be reduced to accommodate the overspend on the Lings Wetside Changing Rooms project.

(1,845)

-

Prudential Borrowing

Movement Between Years

2008-09 /HRA007 V03 Complete Roofs

 

Housing HRA

There are several roofing projects running at the moment, most of which work will be complete this year. However each project has an annual retention based on the defects liability periods, which will not be payable until 2010-11. Therefore it is proposed to move the budget to 2010-11 to reflect this.

(145,000)

145,000

HRA Revenue Financing

2009-10 /HRA002 V01 Cooper Street Replacement – Phase 2

 

Housing HRA

There are two elements to this project: 1) installing thermostatic controls to flats 2) the potential replacement of the combined heat and power unit (CHP), which is an additional facility to the district boilers that generates additional heat and electricity. There are two budget adjustments to be made: the first is to slip the CHP element of £250k into 2010-11. The second is to reduce the budget by £300k to fund the project outlined in 2.1 above. This reduction is possible due to the phase 2 heating works being tendered at much lower costs than anticipated.

(550,000)

250,000

HRA Revenue Financing

 

2009-10 /HRA004 V03 Decent Homes & Poor Condition

 

Housing HRA

The first phase decent homes project is on site, however this was later than anticipated due to some local issues concerning contractor selection and tender evaluation, works will therefore extend beyond the end of the financial year. The funds committed to the contract must be slipped into the next financial year to cover these contractual obligations.

(1,739,651)

1,739,651

HRA Revenue Financing

2009-10 /HRA015 V02 Lifts Refurbishment

 

Housing HRA

Two of the three lift projects at Alliston Gardens and Eleonore House have been subject to the housing strategy review, which has delayed the project inception. Section 20 leasehold consultations are required on the work to two lifts at Cooper Street. The lead in time on lift projects is traditionally very long, with most of the build and technical work being completed off site, therefore the majority of the programme expenditure will not occur until 2010-11. The budget is to be moved to 2010-11 to reflect this.

(554,480)

554,480

HRA Revenue Financing

2009-10/GF060 V01

 Places of Change

 

Housing GF

The section 106 funding for this project is to contribute towards the build costs. Work is not expected to be on site now until April 2010, therefore the budget for this needs to be moved to 2010-11 (£150k). Additional CLG grant of £26k is now required in 2009-10 following updated costs from Midland Heart. There is no overall impact on the budget for this project; it is simply a re-alignment of expenditure and funding.

(123,709)

123,709

Section 106 & CLG

 

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

 

3. The following is noted:

 

a)     The capital programme monitoring position as at end of October 2009, including forecast outturns, revenue expenditure funded by capital and slippage into 2010-11, as set out at Annex C, D and E of the report.

 

b)     The funding arrangements for the 2009-10 capital programme as set out at Annex F of the report.

Minutes:

Councillor Mildren addressed Cabinet and referred to the removal of Abington Park Museum from the capital programme.  He suggested that the reduction in opening times would make it less likely that heritage funding would be forthcoming.  He then referred to other works in the report and asked how optimistic the Cabinet was to complete the £16 million programme with only five months left to go.

 

As Portfolio Holder for Finance, Councillor Perkins outlined the purpose of the report and commented on the need to step up work to complete it within the timescale.

 

RESOLVED

 

 

1.      That Cabinet approve the following scheme to be added to the capital programme for 2009-10.

 

Scheme Reference, Description

&

Directorate

Narrative

2009-10

£

Future

Years

£

Funding Source

2009-10/HRA018 Capital Improvement Works

 

Housing HRA

Adhoc capital improvements to properties, that are not included in the schedule of work for other HRA projects, but where work is required within the financial year to meet the decent homes standard. Examples of work will include replacing windows, heating systems, roofs, kitchens and bathrooms.

300,000

-

MRA

 

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

 

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

Budget Increases

*2007-08 /CS0026 V04

IBS Housing Management System

 

Housing HRA

Following restructure of the housing service, the implementation of outstanding IBS modules was put on hold pending an independent review. The review, which has recently concluded, confirms that IBS is a fit for purpose industry standard solution, and made a key recommendation that all outstanding business critical modules should be rescheduled for implementation.

This represents an additional sum of £186K over and above the current budget.

 

61,135

125,250

HRA Earmarked Reserve

2008-09/GF074 V01 Playbuilder – Eastfield Park

 

Environment & Culture

NBC were awarded £50k from DSCF in 2008-09 for the Playbuilder in Eastfield Park scheme. The funding received was £50,500 and NCC have advised to spend the additional £500 and the underspend from 2008-09 on the scheme in 2009-10, as opposed to returning it.

500

-

DSCF

Budget Reductions

2006-07 Slip V17 Urban Enhancement

 

Planning & Regeneration

A revised proposal due to site conditions has reduced the expenditure required, as has the fact that County Council is now paying for the installation of the town signs. This reduction in budget therefore represents a saving.

(4,670)

-

Prudential Borrowing

2008-09/GF078 V01             DPPO Signage

 

Environment & Culture

NBC was awarded a grant from the Home Office in 2008-09 for DPPO signage. £10k of this was allocated to capital, however not all of this was required. The terms and conditions of the grant outline that the funding can be spent on either capital or revenue items, therefore it is proposed to move this remaining funding to the revenue cost centre for DPPO signage to enable it to be utilised.

(380)

-

Home Office

2007-08/CS029 V01

Abington Museum Upgrade

 

Environment & Culture

NBC resources are required to support an application to the Heritage Lottery Fund for funding to upgrade Abington museum.  The change in the museum's opening times has made it less likely that the application, for such a large amount, will be successful. Therefore a decision has been made to not proceed with the application and the project is to be withdrawn from the capital programme.

(987,575)

-

£900k Heritage Lottery Fund, £87,575 Prudential Borrowing

Neutral Budget Impact

2007-08/GI0010 V03

 One Stop Shop, CRM

 

Finance & Support

To purchase a corporate solution for authentication of secure on-line transactions that will initially support recovery and e-benefits but provide increased on line capability in terms of providing secure authentication for all other services such as Housing Repairs.

6,000

-

£4k Prudential Borrowing, £2k Revenue Financing

2008-09/GF043 V05

 E-Benefits Application

 

Finance & Support

Take up for E-Benefits application is now being linked to the 24 Claim Guarantee scheme and will be extended to all new E Benefits claims in the future. A smaller take up budget is thus required against this project in 2009-10. This saving is to be moved to assist in the funding of additional software within the One Stop Shop CRM capital project to enable customer self serve options to be expanded.

(4,000)

-

Prudential Borrowing

2008-09/GF080 V01

 EDT Workflow

 

Finance & Support

The funding reserve for additional consultancy has proved not to be required. These funds will be moved to support the wider agenda of the One Stop Shop CRM capital project, to introduce self-serve options for our customers. 

(2,000)

-

Revenue Financing

2008-09/GF081 V01

 Lings Forum Wetside Changing Rooms

 

Environment & Culture

Due to unforeseen work this project has overspent by £1,845. This will be funded by a reduction to the Fire Door Improvements project.

1,845

-

Prudential Borowing

2008-09/GF067B V02

Fire Door Improvements

 

Finance & Support

This budget will be reduced to accommodate the overspend on the Lings Wetside Changing Rooms project.

(1,845)

-

Prudential Borrowing

Movement Between Years

2008-09 /HRA007 V03 Complete Roofs

 

Housing HRA

There are several roofing projects running at the moment, most of which work will be complete this year. However each project has an annual retention based on the defects liability periods, which will not be payable until 2010-11. Therefore it is proposed to move the budget to 2010-11 to reflect this.

(145,000)

145,000

HRA Revenue Financing

2009-10 /HRA002 V01 Cooper Street Replacement – Phase 2

 

Housing HRA

There are two elements to this project: 1) installing thermostatic controls to flats 2) the potential replacement of the combined heat and power unit (CHP), which is an additional facility to the district boilers that generates additional heat and electricity. There are two budget adjustments to be made: the first is to slip the CHP element of £250k into 2010-11. The second is to reduce the budget by £300k to fund the project outlined in 2.1 above. This reduction is possible due to the phase 2 heating works being tendered at much lower costs than anticipated.

(550,000)

250,000

HRA Revenue Financing

 

2009-10 /HRA004 V03 Decent Homes & Poor Condition

 

Housing HRA

The first phase decent homes project is on site, however this was later than anticipated due to some local issues concerning contractor selection and tender evaluation, works will therefore extend beyond the end of the financial year. The funds committed to the contract must be slipped into the next financial year to cover these contractual obligations.

(1,739,651)

1,739,651

HRA Revenue Financing

2009-10 /HRA015 V02 Lifts Refurbishment

 

Housing HRA

Two of the three lift projects at Alliston Gardens and Eleonore House have been subject to the housing strategy review, which has delayed the project inception. Section 20 leasehold consultations are required on the work to two lifts at Cooper Street. The lead in time on lift projects is traditionally very long, with most of the build and technical work being completed off site, therefore the majority of the programme expenditure will not occur until 2010-11. The budget is to be moved to 2010-11 to reflect this.

(554,480)

554,480

HRA Revenue Financing

2009-10/GF060 V01

 Places of Change

 

Housing GF

The section 106 funding for this project is to contribute towards the build costs. Work is not expected to be on site now until April 2010, therefore the budget for this needs to be moved to 2010-11 (£150k). Additional CLG grant of £26k is now required in 2009-10 following updated costs from Midland Heart. There is no overall impact on the budget for this project; it is simply a re-alignment of expenditure and funding.

(123,709)

123,709

Section 106 & CLG

 

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

 

3.   That Cabinet note:

 

a)     The capital programme monitoring position as at end of October 2009, including forecast outturns, revenue expenditure funded by capital and slippage into 2010-11, as set out at Annex C, D and E.

 

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

Supporting documents: