Agenda item

To consider a report by the Head of Finance and Assets (copy attached) to provide full Council with an update regarding the Capital Plan including major projects and the Corporate Plan.

 

The Lead Member for Finance & Assets, Councillor Julian Thompson-Hill, introduced the Capital Plan 2013/14 – 2016/17 and recommendations of the Strategic Investment Group (previously circulated).

 

Monthly updates of the Plan were presented to Cabinet and the estimated Capital Plan was currently £36.468 million.  The Plan had been updated slightly since being reported to Cabinet in March 2014.

 

The Strategic Investment Group had reviewed capital bids and had made recommendations for inclusion in the Capital Plan from 2014/15 onwards.

 

Projects had been reviewed to ensure they satisfied the Council’s Corporate objectives.

 

Each new project would require a Business Case form completed and any specific implications would be discussed at that stage.

 

No capital project was without risk, however, all schemes would be reviewed by the Strategic Investment Group and would also be subject to on-going monthly monitoring and reporting.

 

In response to questions posed by members, Councillor Julian Thompson-Hill confirmed that:

 

·        Funding for the repair of Rhuddlan bridge had been requested.  As the bridge was a listed structure, a feasibility study would be carried out and funding would be sought from the Welsh Government and CADW.

·        It would be necessary to ensure new capital projects were future proof and able to adapt to climate change.  The Head of Internal Audit had been preparing a statement as Denbighshire County Council did not have an Environmental Policy in place.  Larger schemes which were Welsh Government funded were to include environmental elements.

·        Work on a Procurement Strategy was taking place.  A three county model was being investigated between Denbighshire, Flintshire and Gwynedd.  A lot of work had been carried out with procurement over the previous 12 months.  Work to develop a joint team with Flintshire, to make Denbighshire more resilient, had been taking place.  Within the forthcoming 2 months, a new procurement system would be in place.  Thereafter, all contracts would go through one process.

·        Phase 3 of the coastal sea defence element in Rhyl was almost ready to begin.  It had been requested that extra funding be sourced to enable the sea defence to be more aesthetically pleasing e.g. to include lighting and seating areas.  It was supported by Members that coastal defences be a priority.

·        Various schemes costing less than £30,000 were not detailed within the report.  Members requested details of all the schemes to be circulated to them.

·        Cefndy Enterprises had received investment to replace out of date machinery.  The subsidy which Denbighshire paid to Cefndy Enterprises would be phased out at the request of Cefndy.  From 2015/2016, there would no longer be a subsidy paid. 

 

The Lead Member for Finance and Assets moved on to the summary of Strategic Investment Group Recommendations (Capital Plan 2014/15) set out in Appendices 5, 6 and 7.

 

The Welsh Government’s capital settlement for 2014/15 was £22,000 lower than for 2013/14.  With the lack of capital investment from the Welsh Government, the Council had no choice but to rely on its own resources to invest in key projects. 

 

It had been agreed by the Strategic Investment Group to invite bids in line with previously agreed block allocations from departments. 

 

In-depth discussion took place and in response to further questions posed by members, Councillor Julian Thompson-Hill confirmed that

 

·        The council had three years to deliver receipts within the Corporate Plan.  The Head of Finance and Assets confirmed that where resources were being targeted, the Council were on track for delivery of what was required to be delivered.

·        Money had been allocated for the A525 Rhuddlan to St. Asaph crash barrier between the carriageway on the recommendation of a Coroner’s Report into a fatal crash on the road 10 years previous.  A bid had been submitted but the general feeling had been that it would not be the appropriate approach.  The scheme did not proceed and the resolution had been that the funding be re-allocated for a road safety bid.

·        Councillor Alice Jones proposed an amendment of an additional £80,000 be added to the amount allocated to Agricultural Estates.  Clarification was submitted to members that if an increased amount was to be allocated to a scheme then the equivalent amount would have to be deducted from other schemes to balance out the figures.  Councillor Alice Jones recommended £80,000 be deducted from the capital contingency.  The proposal was seconded by Councillor Arwel Roberts.  A vote took place, 14 members voted in favour of the proposal and 29 against the proposal.  Therefore, the amendment was lost.

 

It was therefore,

 

RESOLVED  that Members:

 

·        Note the latest position on the 2013/14 element of the Capital Plan and the update on major projects

·        Support the recommendation of the Strategic Investment Group as detailed in Appendix 5 and summarised in Appendix 6.