Bath & North East Somerset Council
Cllr Malcolm Hanney, Deputy Leader and
On or after 25th August 2007
Corporate Capital Repairs and Maintenance Programme 2007/08
EXECUTIVE FORWARD PLAN REFERENCE:
AN OPEN PUBLIC ITEM
List of attachments to this report:
1 THE ISSUE
1.1 Report on proposed work programme for Corporate Capital Planned Maintenance for 2007/08
The Cabinet member is asked to agree that:
2.1 the planned repair and maintenance programme for corporate properties comprises items C07/01 to C07/30 (appendix B)
2.2 a contingency amount of £63,500 be provided for unforeseeable capital expenditure on corporate properties
2.3 any savings in the budgets of programmed schemes or of cancelled projects or of unused contingency, be used to carry out the highest priority schemes below the cut-off line, subject to the practicality of carry out the work
3 FINANCIAL IMPLICATIONS
3.1 The programme will be funded from the approved capital programme.
3.2 The available budget for Corporate properties in 2007/08 is:
Base budget proportion320,000
Additional approved budget500,000
Less fees (10% of gross) 82,000
Available budget for works£738,000
3.3 The debt financing cost of the work at 9.5% is £77,900. It is not possible to meet that cost within the revenue financial planning target for Repairs and Maintenance as the programme, at this level of funding, will not reduce the backlog of work required, and a significant reduction in responsive repairs is unlikely. The cost will therefore be met from corporate budgets, where it has been fully provided.
3.4 The work should be completed within the financial year, although some retention payments will slip into the following financial year. A cash flow of anticipated expenditure is included in appendix C.
4 THE REPORT
4.1 The existing backlog of outstanding maintenance work on the corporate estate currently stands at £7,406,550.00. This figure excludes items which are normally funded from the revenue budget. The extent of the backlog has reduced in recent years due to building closures, and replacements with new facilities, such as the Care Home programme.
4.2 The capital planned maintenance programme addresses the need to maintain the council's capital property assets (excluding the commercial estate and schools) in a reasonable state of repair, ensuring that buildings are safe and useable. Efficient planned capital investment will reduce revenue responsive repairs over time. The investment in maintaining the buildings from which we deliver services indirectly contributes to all of the councils improvement priorities, and specifically and directly contributes to:
(1) Improving the environment for service delivery
(2) Improving the life chances for disadvantaged teenagers
(3) Promoting the independence of older people
(4) Improving the environment for learning
(5) Improving the public realm (`liveability')
4.3 A prioritised list of repair and maintenance items is included in Appendix B. This list includes all the priority 1 items (highest grading) and the higher priority 2 items.
4.4 It is also proposed to retain a contingency of £60,000 for unforeseen capital expenditure. Experience has shown that some items of work not included within the programme will fail or deteriorate rapidly during the year, causing a re-evaluation of their priority criteria to DI. In addition to these some corporate properties have not been fully surveyed and the survey may disclose essential D1 items. The future of other properties is subject to review and dependant on the result of the review urgent work may become necessary.
4.5 The available budget for works once the contingency has been deducted is £678,000. The total estimated value of works in items C07/01 to C07/30 is £674,500. This leaves a further £3,500 which can be added to the contingency, making a contingency of £63,500.
4.6 It is suggested that any savings made through delayed or cancelled projects, or in the budgets of programmed schemes, be used to carry out the highest priority schemes below the cut-off line, subject to the practicality of carrying out the work.
5 RISK MANAGEMENT
5.1 The report author and Executive member have fully reviewed the risk assessment related to the issue and recommendations, in compliance with the Council's decision making risk management guidance.
6.1 In accordance with the Councils Asset Management plan properties are now surveyed regularly and work prioritised in a long term investment programme using ODPM criteria as defined in Appendix A. These criteria are used as the basis of the capital planned maintenance programme.
6.2 Investment in the planned maintenance of the Council's property ensures that health and safety risks are reduced, and service delivery maintained. Long term capital investment will lead to less demand on revenue responsive maintenance and reduce the likelihood of unforeseen closure of buildings.
7 OTHER OPTIONS CONSIDERED
7.1 Expenditure could be used on other works which do not present the highest priorities in accordance with the ODPM criteria.
8.1 The following people have been or will be consulted regarding the programme.
Executive Councillor; Trades Unions; Other B&NES Services; Service Users; Section 151 Finance Officer;
8.2 Consultation will be carried out through the P.I.D. process and through discussions and emails.
9 ISSUES TO CONSIDER IN REACHING THE DECISION
9.1 The following issues have been considered as part of this report. Social Inclusion; Customer Focus; Sustainability; Property; Young People; Equality (age, race, disability, religion/belief, gender, sexual orientation); Human Rights; Corporate; Health & Safety; Impact on Staff.
10 ADVICE SOUGHT
10.1 The Council's Monitoring Officer (Council Solicitor) and Section 151 Officer (Strategic Director - Support Services) will have the opportunity to input into this report and clear it for publication.
Stephen Sheppard - 01225 477160