Agenda item

With reference to article 15 of the minute of its previous meeting, the Committee had before it a report by the City Chamberlain which provided an update on the progress being made across all Services on projects within the Non Housing Capital Programme as at 31 January, 2010.

Appendix 1 to the report contained a financial statement which outlined the current position as at 31 January, 2010, and advised that the projects deemed to be of a “rolling” nature had been excluded from the prior year’s spend.

The report advised that the revised programme was now £92.772 million, prior to an allowance for the project variations and slippage which had been estimated to reduce the programme by £27.832 million; therefore, the total funded programme was currently £64.940 million, which indicated no change from when this was last reported.

The report continued that the total payments made as at 31 January, 2010 were approximately £36.811 million or 57% against the funded programme of £64.940 million which was broadly in line with the pattern of spend in previous years with the trend for payment to be principally in the later periods         of the year.  The report noted that whilst this figure was relatively low, it did not reflect other commitments (for example, those made through accepted tenders).

The report explained that factors outwith the control of the Council could result in project delays (for example delays in contractors beginning work on site which would contribute towards slippage and spending profiles).  It was currently projected that the actual outturn would be £66.334 million, but to ensure that the overall programme remained within the funded level, a further £1.394 million of slippage required to be identified.  Based on information from previous years and the low level of spend to date, it was anticipated that this level of slippage was achievable, but would require to be closely monitored by budget holders during the year, with details of projected spend being reported to both individual Service Committees and within the overall report to this Committee.

The report advised that a request had been received to alter the spend profile for Project 715, MTS – Berryden Road Improvements, from that approved at the Budget meeting of Council of 11 February, 2010 (budget line 715 within the minute refers).  By way of background, the report continued that the former Resources Management Committee had requested that officers negotiate the purchase of a property affected by this road scheme, however, no agreement had been reached with the owner at that time (article 18 of the minute of meeting of 3 June, 2008 refers).  The Enterprise, Planning and Infrastructure Committee of 26 November, 2009 agreed that officers progress the preferred option for the scheme to the detailed design stage (article 18 of the minute refers), and following this decision, the property owner had approached the Council with a request that the Council consider buying the property.  As it had not been anticipated that land negotiations would be entered into at this stage, no allowance had been made in the Non Housing Capital Programme until 2011/12, it was therefore requested that funding of £200,000 be brought forward from 2011/12 to 2010/11 to allow negotiations with the owner to commence and the options for the purchase to be investigated.  Whilst the intention would be to conclude the purchase during 2010/11, it was noted that various factors could influence the outcome, and that further updates would be provided to Committee as necessary.

Appended to the report at appendix 2 was the financial statement which detailed projects funded from the capital fund which indicated an unused balance of £0.827 million from the previous agreed £15 million of capital receipt held within the capital fund.

Appendix 3 to the report provided information on budget movements and revisions for the Non Housing Capital Budget since initially approved by Committee in May and June, 2009.

The report recommended:-

that the Committee -

(a)       note the current position on the Non Housing Capital Programme for 2009/2010 and future years;

(b)       approve the alteration of the spend profile for the Berryden Road          Improvements Project (within Enterprise, Planning and Infrastructure)     so as to bring forward funding to allow negotiations to commence for the             purchase of property required to accommodate the scheme;

(c)        instruct the City Chamberlain to continue to update the Committee, in consultation with the Directors, on the overall position and projected outturn of the Non Housing Capital Programme; and

(d)       instruct the City Chamberlain to continue to update each Service Committee, in conjunction with the Director, on the Services’ specific capital projects.

The Convener, seconded by Councillor McCaig moved:-

            that the Committee approve the recommendations.

Councillor Allan, seconded by Councillor Laing, moved by an amendment:-

            that the Committee approve recommendations (a), (c) and (d); and do not approve recommendation (b) as detailed within the report.

On a division, there voted:-  for the motion (11) – the Convener; and Councillors Cormack, Corall, Dunbar, Farquharson, Kiddie, Leslie, McCaig, Robertson, Wendy Stuart and John West; for the amendment (4) – Councillors Allan, Cassie, Cooney and Laing.

The Committee resolved:-

to adopt the successful motion.