Strategic Capital Panel
Minutes of the Meeting held on 9 February 2012
Time Commenced: 10.00am Time Terminated: 10.30am
Councillor K. Quinn
Councillors Baines, J. Fitzpatrick, Sweeton and Taylor.
Apologies for Absence:
Councillors Cooney and B. Holland.
Officers in attendance:
.Steven Pleasant (Chief Executive), Pam Williams (Executive Director – Finance), Andrew Hall (Senior Resource Manager), Robin Monk (Assistant Executive Director – Economic and Technical Services), Ian Saxon Assistant Executive Director (Environmental Services), Andrew Leah (Head of Housing and Planning), Elaine Todd (Assistant Executive Director – Asset and Investment Partnership Management).
The Minutes of the meeting of the Strategic Capital Group held on 17 November 2011 were signed by the Chair as a correct record.
26. Capital Monitoring Report
Consideration was given to a report of the Executive Director (Finance) which summarised the Council’s capital monitoring position at December 2011, and showed a projected spend under budget at outturn of £1.930m against the agreed capital scheme budgets. The capital programme included assumed slippage of £3.300m, which adjusted the outturn position to a projected spend over budget at outturn of £1.370m.
Reference was made to the details of the variation, totalling £1.930m which was shown by service area in Appendix 1 of the report. It was further reported that the expenditure to December 2011, totalling £31.341m reflected 66% of the 2011/12 approved capital project, compared with the actual spend at the same monitoring period in 2010/11 being £58.114m which equated to 58% of the approved budget.
Details were given of the current capital programme position for the following three years, together with the current forecast level of capital receipts to be generated. It was further reported that the Council had successfully delivered a number of important projects in the quarter to December 2011, including the completion of the remaining 4 schools, from the current 5 school PFI agreements which had been handed over on 3 January 2012. A new community centre had also been completed at Dukinfield Park on the site of a former bowling green pavilion.
Particular reference was made to the following:-
- Variations over the whole life of the schemes detailed at Appendix 2;
- In year scheme variations at December 2011;
- Changes to the approved 3 year capital programme detailed at Appendix 3;
- Capital receipts; and
- SCYP Private Finance Initiative; and
- Prudential Indicators detailed at Appendix 4.
Resolved that a recommendation be made to Executive Cabinet to approve that:
- the current capital budget monitoring position be noted.
- the changes to the capital programme be noted.
- the capital receipts position be noted.
- the current Prudential Indicator position be noted.
27. Replacement Of Refuse Collection Fleet – Phase 2
Consideration was given to a report of the Assistant Executive Director (Environmental Services) detailing the replacement of the refuse collection fleet and the current review of the Waste Services Section, which was due for completion in April 2012.
He reported that the Council operated a complex and varied fleet of refuse collection vehicles to enable it to collect domestic, commercial and recyclable waste from the citizens and businesses of the borough. It was further reported that the fleet was now provided by a mix of out right ownership and medium term hire arrangements. 3 of the vehicles operated by Waste Services had been previously funded through a capital grant from DEFRA and the need to replace these vehicles had been also referenced in a Key Decision which had been taken on 31 August 2011.
Details were given of the profile of the refuse collection fleet and this report covered 9 vehicles, 6 medium term hire vehicles and 3 owned vehicles. Further reference was made to the potential savings by outright purchase of 6 new refuse vehicles and finance over 7 years, together with the costs benefits of purchasing the 3 vehicles to replace the three council owned vehicles.
It was further reported that by terminating the medium term hire arrangement for the 6 freighters and replacing the 3 vehicles due to end 2012/13, by purchasing new vehicles financed over a 7 year borrowing period would accrue £507k over the 7 year period.
Particular reference was given to the following:-
- Procurement method;
- Financial summary;
- Residual values;
- Affordability/Financial impact; and
- Risk management.
Resolved that a recommendation be made to Executive Cabinet to approve:
- To purchase the vehicles as per the option above as the best value option for the future provision of the vehicles and equipment. (The actual number purchased may be less than the 9 vehicles identified in this report, subject to the ongoing Waste Service review).
- That the borrowing costs of £1,372,140 be met by Waste Services revenue budget over the 7 year period via vehicle rental issued through Transport Services.
- That the vehicles be procured, managed and maintained by the Council’s own Transport Services section.
28. Relocation Of Dukinfield Park Road War Memorial Situated In Dukinfield Cemetery
Consideration was given to a report of the Executive Member (Business and Community Development) and Assistant Executive Director (Asset and Investment Partnership Management) detailing a proposal to relocate the Dukinfield Park Road War Memorial situated in Dukinfield Cemetery.
It was reported that the War Memorial currently located on Park Road was erected in 1920 to commemorate the sacrifices made by men from the Tame Valley. In this location the war memorial was clearly visible from the vast monolith that was Park Road Mill and its small neighbour Old Mill, where most of the local population worked in textile production.
However, it was reported that, the decline of the textile industry and the demolition of Park Road Mill had weakened the tangible link between the memorial and its community and now stood in isolation from the local community, inaccessible and in danger of being forgotten, deteriorating due to age and vandalism and the access steps in their current position, with no handrails to assist access, presented a clear health and safety issue to users and had now been closed off from public use as a precautionary measure.
Due to its current state and the issues of access it had been therefore proposed to relocate the war memorial to and accessible location and the following options had been considered:-
- To retain the memorial in its current location and improve the accessibility of the memorial, through the creation of improved access from both Park Road and the cemetery;
- To move the war memorial so that it was located in an area of greater accessibility and visibility within the cemetery and repair the existing steps down to park Road. The relocation of the memorial to a higher aspect from its original position would make it more visible over a wider area and would restore its prominence from in wider view points;
Details were given of the assessment of the current location, the condition of the steps, planning approval/listed building consent, proposed works and contract management, risk management and equalities issues.
In conclusion, it was reported that the war memorial was in poor condition and would continue to deteriorate without restoration in its current location and would be accelerated due to water ingress in existing cracks, if the structural issues were not addressed. It was further reported that there had been some objection to the proposals on the grounds of loss of historical interest, however the Secretary of State had given approval for the proposed relocation. Funding had been set aside within the Children, Learning and Economic Services capital programme from the Access to Buildings budget for this work.
It was reported that a Key Decision had been taken at the Joint Meeting of Executive Cabinet and Overview (Audit) Panel on 8 February 2012 which approved that:
- The War Memorial currently located in Dukinfield Cemetery in compliance with the listed building consent requirements and the conditions attached to the planning permission be approved.
- An allocation of £76,295 from the Children, Learning and Economic Services, Capital Programme, Access to Buildings be approved.
- In accordance with the Council’s Procurement Standing Orders, the Tender submitted by Lloyd & Smith Ltd, for the restoration and relocation of the War Memorial with the contract being managed by the Tameside Investment Partnership, through the existing Facilities Management Services Agreement, be approved.
That the report be noted.
29. Developer Contributions Receipt And Section 106 Agreements
Consideration was given to a report of the Assistant Executive Director – Economic and Technical Services which updated Members on Developer Contributions and Section 106 Agreements.
Details were given of the summary position statement at December 2011 with regard to receipts for Section 106 Agreements and Developer Contributions. He stated that the total for Section 106 Agreements was £994,000 and £365,000 for Developer contributions.
With regard to Services for Children and Young People, of the £229k received from the Audenshaw Depot housing development, £173k had been informally allocated to a roof replacement scheme at Audenshaw Primary School and £35k received from the housing at Dukinfield Golf Club would be committed by the end of the financial year towards the start of the BSF project to remodel Astley Sports College and Cromwell School.
It was reported that with regard to District Assemblies the following allocations would be made:-
- Oak Park - £39,000;
- Egmont Street - £17,000;
- Mossley Park - £40,000
- Bus Lane Enforcement – Developer Contribution Funding - £42k for providing fixed or mobile CCTV enforcement of bus lanes;
- Manchester Road, Ashton-under-Lyne – Developer Contribution Funding - £85k for the provision of double right turn lane onto M60 J23 northbound entry slip road;
- Buckley Street, Droylsden – Improvements to footpath and canal towpath - £26.4k; and
- Buckley Street, Droylsden – Improvements to footpath and street lighting - £4k.
Details were given of risk management in respect of the Engineering Services schemes and it was reported that there were no new Section 106 agreements since the last meeting.
Further reference was made to Commuted Sums, Developer Contribution and Section 106 funding, in particular the current arrangements in respect of commuted sums for maintenance when land was transferred to the Council as part of a Section 106 agreement or where existing facilities were upgraded with an ongoing maintenance liability. Currently the annual cost was calculated by the District Assemblies Operations Team who made an informed judgement on the type of maintenance regime required to produce a schedule of costs based on known rates for labour, materials and vehicles and an inflationary allowance made for each year for the 10 years of the agreement.
It was reported that a review was currently being undertaken to check the primary legislation and planning guidance, case law and best practice to ascertain whether the formula could be changed to permit future agreements to require payments for longer than a 10 year period as other local authorities’ agreements ranged from 10 years to 41 years. Members suggested that a 25 year agreement be looked at for future commuted sums and it was -
Resolved that a recommendation be made to Executive Cabinet to approve:
- That a further report be submitted to Strategic Capital Panel in due course in respect of the outcome of the review on the calculation for commuted sums.
- The release of £15k of Developer Contribution funding to supplement the existing approved budget of £51k for bus lane enforcement.
- Release of £85k of Developer Contribution funding for the provision of a double right turn lane from Manchester Road, Ashton-under-Lyne onto M60 J23 Northbound entry slip road.
- It was also requested that should this particular scheme be approved, that authority be given to slip this funding into the 2012/13 financial year as the size and scope of the works would be undeliverable in the remainder of this current financial year.
- Release £26.4k of Section 106 funding for improvements to the footpaths and canal towpaths around the Buckley Street area of Droylsden.
- Release of £4k of Section 106 funding for improvements to the footpaths and street lighting around the Buckley Street area of Droylsden.
30. Urgent Items
There were no urgent items for consideration at this meeting.