Agenda item

Reference was made to article 32 of the minute of meeting of the former Resources Management Committee of 16 June, 2009, at which time there was under consideration a report by the Corporate Director for Resources Management, being the latest in a series of reports concerned with the implementation of a Corporate Property Asset Management Plan in recognition of the strategic importance to the Council of utilising its property efficiently in the delivery of services.  The resolution of the Committee at that time was to approve the Plan as prepared and to instruct the Corporate Asset Group to implement and develop the various aspects with reports on progress being submitted to Committee on a regular basis, in particular that a report be made on progress in completing the Capital Prioritisation Process and Procedures.  The Committee now had before it a report by the Director for Enterprise, Planning and Infrastructure which had annexed the draft of a Guidance Manual which set out an approach to improve capital planning which would ensure that the system of approving the Capital Programme is robust and fair and is seen to be such across all Council Services.

The report before members referred to the approval by Council of a Property Asset Management Plan (PAMP) and also made reference to the weaknesses identified within the PAMP with regard to how the Council manages Capital Planning, in particular:-  (1) the absence of a formal capital prioritisation process;  (2) the need to fully adopt the principles of whole life costing as a matter of routine;  (3) the current lack of a formally adopted process of option appraisal for projects;  and (4) the need for training and processes to be introduced to ensure that inhouse project management is effective and the likelihood of programme slippage and cost over run is reduced.  As regards the proposed Capital Prioritisation Process and Procedures Manual attached to the report as appendix 1, the report author confirmed that the intention was to regularise all future bids for capital funding, to include improvements in the monitoring of capital projects and in the post evaluation of completed projects.  The report highlighted in particular the future responsibilities proposed for the Corporate Asset Group in the new process and also the areas of work for which staff within the Enterprise, Planning and Infrastructure Service would take specific responsibility. 

Having identified one of the main changes to be introduced as a clear options appraisal process which will include whole life costing, the report confirmed that for larger projects the appraisal would be based on the Green Book which is HM Treasury’s Option Appraisal for all Capital Projects.  It was further indicated that whole life costing would ensure that the long term revenue costs were evaluated; and that a specific requirement of the process would be that the role of the Project Manager from a Service would be identified, as a result of which there would be clarity about how that individual interacts with personnel within Enterprise, Planning and Infrastructure who have responsibility for the overall management of the Capital Programme.  The report contained the detail of the suggested timetable under the new process, for all Capital Programme Projects.

The Committee resolved:-

to approve the amended Capital Prioritisation Process and instruct the Director of Enterprise, Planning and Infrastructure to commence its implementation for 2011/12, and to instruct that regular reports be submitted back to this Committee.