Agenda item

Consider report by Chief Financial Officer.  (Copy attached.)

12.1  With reference to paragraph 8 of the Minute of 11 February 2016, there had been circulated copies of a report by the Chief Financial Officer providing Members with the findings and recommendations of the 6 month review of the 2016/17 to 2025/26 Capital Plan. The 2016/17 to 2025/26 Capital plan was approved by Full Council on 11 February 2016.  As part of the approval it was agreed a review of the Plan should be undertaken after 6 months due to uncertainties regarding the delivery of some projects and the ongoing development and refinement of various strategies including the sports pitch replacement programme, the waste strategy, the school estate review and the requirements of IT strategy.  This review had now been undertaken, in conjunction with the Service Director Assets and Infrastructure, of all projects within the Capital Plan to ensure they met the required criteria.  In total £2.941m of proposed revisions to the capital programme had been identified with revised proposals relating to Kelso High School, Langlee and Broomlands primary schools, the cemetery acquisition block and the 3G pitch replacement programme.  The report further recommended additional resources be applied to allow the upgrade and demolition of assets with the balance £2.441m being allocated to the emergency and unplanned schemes pending further recommendations regarding the use of this funding being submitted to Elected Members.  The contingencies held within Kelso High School and Langlee and Broomlands Primary School were no longer required and could be returned to the Emergency/Unplanned Schemes.  The Cemetery Land Acquisition and development block and the Peebles 3G Synthetic Pitch, had for a number of reasons been unable to be progressed and overall deliverability of these projects was highly uncertain.  Rather than leaving this funding unapplied within the programme for an indeterminate period, it was recommended these projects be removed from the current capital plan and the funds returned to Emergency/Unplanned Schemes.  When deliverable proposals requiring funding were brought to members for consideration this funding would be reviewed.  The Transformation Programme identified savings for property would require the Council to adopt a more flexible, more efficient property portfolio with a reduced footprint.  This would require an element of capital funding which was currently not identified in the Plan.  If the capital funds were not identified revenue savings would not be achieved.

12.2  Councillor Parker commented on the additional money which was now available and proposed that some of these additional funds be allocated for road repairs.  He moved, seconded by Councillor Mitchell, the following Motion to replace recommendation (h) in the report:-

          “Council agrees to allocate £2.4 million to the following projects listed below:

          From this allocation £422k would be used to bridge the capital gap between the money bid for through SCOTS from the Scottish Government for flood damage at Bowanhill Bridge, Selkirk Flood Scheme, and Newmill Bridge near Jedburgh.

          The balance of the capital funding of £1.978 million would be allocated as follows:

          Patching in Towns/Villages      -      £400k       

          Patching on Rural A & B Roads              

          Short Overlays             -                  £200k                 

          Drainage                       -                  £  50k                 

          Resurfacing                  -                  £1,328k              

                                                                  £1,978k              

          Identified Sites for Resurfacing - £1,328k

          The £400k for patching would be used across The Borders to support next year’s Surface Dressing programme which is currently under development.

          The £200k for short overlays would also be distributed across The Borders to sites identified as being most in need of this type of repair.

          The £50k of drainage money would likewise be used across the road network and targeted at sites with known drainage issues and sites earmarked for 2017/18 surface dressing.

          Assuming an early positive decision on the funding being available, the roads teams have indicated that the bulk of the work (85% to 90%) could be completed in the 2016/17 financial year. The balance of the funding and schemes would be completed in the first quarter of the 2017/18 financial year. Work could start on some of these schemes in October through SBc Contracts as they are scheduled to complete the last of the Bellwin related bridge works by the end of September.

          This scheduling is based on the assumption that we have an average winter. Were we to have an exceptionally bad spell of weather that required roads resource to be diverted towards winter and emergency response that could impact on the percentage of scheme works delivered in 2016/17.”

12.3   In light of the situation regarding the provision of a 3G pitch in Peebles and the problem of pitch flooding at the Gytes, Councillor Bhatia, seconded by Councillor Bell, moved the addition of a further recommendation as follows:-

          “That the Service Director for Assets & Infrastructure liaises with Peebles Rovers and Peebles FC to scope the works required to make improvements to the grass pitches at Violet Bank, Peebles, and report back to Council by December 2016 on the costs and timescales to deliver this project.”

12.4  Members discussed the proposals for the Capital Plan and unanimously approved the amendments detailed above.

         DECISION

         AGREED:-

          (a)     to the reallocation of £0.833m from the Kelso High School budget;

          (b)     to note the position regarding Langlee and Broomlands Schools projects;

          (c)     to the removal of Peebles 3G Pitch £1.288m from the current capital plan due to ongoing uncertainty re deliverability;

          (d)     to the removal of £0.82m from the Cemetery Land Acquisition and Development budget from the current capital plan;

          (e)     to allocate £0.25m to the Office Accommodation Transformation Program to enable the upgrade of existing office accommodation in Paton Street initially to accommodate CGI’s new service centre;

          (f)      to allocate £0.25m to the Demolition and Site Preparation Block;

          (g)     to note the shortfall in grant for flood damage awarded by Transport Scotland of £422,000;

          (h)     to approve the allocation of £2.4 million to fund roads projects as detailed in paragraph 12.2 above; and

          (i)      that the Service Director for Assets & Infrastructure liaise with Peebles Rovers and Peebles FC to scope the works required to make improvements to the grass pitches at Violet Bank, Peebles, and report back to Council by December 2016 on the costs and timescales to deliver this project

         MEMBER

         Councillor Archibald joined the meeting during consideration of the above item.