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Full Council on 28 February 2020

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Full Council on 28 February 2020 DATA LABEL: PUBLIC Meeting Date - 25 February 2021 Item No.5 WEST LOTHIAN COUNCIL ASSET MANAGEMENT STRATEGY AND GENERAL SERVICES CAPITAL PROGRAMME 2021/22 TO 2027/28 REPORT BY HEAD OF FINANCE AND PROPERTY SERVICES A. PURPOSE OF REPORT The purpose of this report is to enable the council to agree an updated General Services Capital programme for 2021/22 to 2027/28. B. RECOMMENDATIONS It is recommended that the Council: 1. Notes the progress in delivery of the ten-year capital programme; 2. Approves the updated General Services Capital programme for 2021/22 to 2027/28, as set out in Appendix 1; 3. Approves the updated capital funding for 2021/22 to 2027/28, as set out in section D.4 of the report; 4. Notes the Integrated Relevance Assessment as set out in Appendix 2; 5. Agrees that officers shall carry out a full review of potential capital resources and future expenditure requirements as part of the process for preparing the next ten-year capital programme for 2023/24 to 2032/33; 6. Notes that agreed reporting and monitoring will continue, including quarterly monitoring reports to Council Executive. C. SUMMARY OF IMPLICATIONS I. Council Values Focusing on customers’ needs, being honest, open and accountable, making best use of our resources, working in partnership. II. Policy and Legal (including The council’s General Services Capital programme Strategic Environmental is managed within the stringent requirements set out Assessment, Equality Issues, in the updated Prudential Code. Health or Risk Assessment) The integrated approach to asset management and capital planning complies with the provisions of the Prudential Code, the Best Value requirements in the 2003 Local Government (Scotland) Act and with Sections 78, 79 and 236 of the Local Government (Scotland) Act 1973. Risks in relation to the capital programme will be identified and managed in accordance with the council’s corporate approach to risk. The equality impact of the budget has been assessed in compliance with public sector duty requirements, as set out in the Equality Act 2010, the Equality Act 2010 (Specific Duties) (Scotland) Regulations 2012 and Fairer Scotland Duty, Part 1 of the Equality Act 2010. An Integrated Relevance Assessment has been 1 Meeting Date - 25 February 2021 Item No.5 undertaken and is provided in Appendix 2. Strategic Environmental Assessments will be carried out for individual projects as required. III. Implications for Scheme of None. Delegations to Officers IV. Impact on performance and Effective capital implementation and asset performance indicators management is vital to supporting corporate and service performance. V. Relevance to Single Outcome Effective prioritisation of resources will be essential Agreement to achieve key outcomes over the next seven years. VI. Resources (Financial, Staffing and An assessment of potential resources indicates that Property) a prudent, affordable and sustainable capital investment programme for 2021/22 to 2027/28 is estimated to be £289.973 million. VII. Consideration at PDSP Asset Lead Officers provide annual asset performance reports to relevant Policy Development and Scrutiny Panels (PDSPs). VIII. Other consultations Preparation of the 2021/22 to 2027/28 capital investment programme has involved consultation with Depute Chief Executives, Heads of Service, asset lead officers and capital project managers. D. TERMS OF REPORT D.1 Background The Council, on 28 February 2020 approved the Corporate Asset Management Strategy and General Services Capital investment programme for the eight year period 2020/21 to 2027/28. The General Services Capital Programme was then subsequently updated in June 2020 to take account of the 2019/20 capital outturn. This report details the progress achieved in the third year of the ten year capital programme and outlines the proposed budgets for 2021/22 to 2027/28. D.2 2020/21 General Services Capital Programme The period 9 monitoring exercise indicates that the projected outturn for the 2020/21 General Services Capital Programme is £50.658 million, assuming there is slippage of £4 million between now and the year end. This represents accelerated spend of £3.269 million compared to budget. Any slippage or acceleration on projects in the 2020/21 programme, including the toilets at Springfield Primary School, roof works at Inveralmond Community High School, St Kentigern’s Academy and St Ninian’s and Toronto Primary Schools, will be rolled forward into the revised two year programme, in line with the established accounting practice. An updated programme, incorporating all slippage including the specific projects identified above, will be presented to Council Executive for approval in June 2021. A summary of the committed and projected asset expenditure at month 9 is shown in table 1. 2 Meeting Date - 25 February 2021 Item No.5 Table 1: Period 9 Committed & Projected Asset Expenditure 2020/21 Committed 2020/21 2020/21 Approved Expenditure Projected Projected Budget at Month 9 Outturn Variance Asset Category £’000 £’000 £’000 £’000 Property 34,509 32,354 39,427 4,918 Roads 8,822 5,271 7,895 (927) Open Space 2,791 1,097 2,414 (377) ICT 5,267 3,473 4,922 (345) 51,389 42,195 54,658 3,269 Remaining Overprogramming (4,000) N/A (4,000) 0 TOTAL 47,389 42,195 50,658 3,269 A summary of the key works that have been undertaken this year within each asset category is as follows: Property Despite the pandemic, significant progress has been made in relation to the planned improvements scheduled within the 2020/21 programme. This included electricals upgrades, pipework upgrades and various internal and external maintenance works. The majority of these works have been successfully delivered with minimal delay and with expenditure forecasting on budget. Works at Linlithgow Academy in reference to the science lab upgrades are making substantial progress with accelerated spend of £275,000. The summer planned improvement works that were impacted as a result of Covid-19 have been reprogrammed for 2021/22 There is accelerated spend of £6.212 million estimated under various property projects. There is continual progress being made with the early learning and childcare nurseries with many of the projects forecasting on budget. Works at Ogilvie ASN School are continuing and going well and it is expected that the works will be complete this financial year. Financial close has been achieved for the new Sinclair Academy, the new Winchburgh Academy together with a new Holy Family Primary School, which will be delivered on a co- located site at Winchburgh Core Development Area. This is a significant achievement for the council as this will be the largest single investment delivered, at approximately £62 million. There has been good progress made on these projects, with all schools due for completion and open for pupils attending by August 2023. Works have commenced and are progressing well on the new Calderwood Primary, which will see the delivery of a new two stream school which is due for completion by October 2021. Both the Covid-19 pandemic and the UK exit from the EU have led to some uncertainty within the construction sector and, in particular, in relation to materials and labour. As a consequence, a number of projects, planned improvements and compliance programmes have faced challenges, including cost pressures and greater commercial risks. The main issues have been on projects which have commenced, or are due to commence in the near future. Those impacted to varying degrees have included Whitburn Partnership Centre, the new Cedarbank ASN School, Pinewood ASN redevelopment, Livingston North Partnership Centre, Blackridge Nursery and Access, St Mary’s Nursery, Bathgate and larger planned improvements programmed for 2021/22. The risks associated have been managed through a range of measures, including reprogramming, value engineering, commercial negotiations with contractors, financial close at the most appropriate time, project delivery adjustments and additional pre-commencement risk appraisals. 3 Meeting Date - 25 February 2021 Item No.5 Roads The 2020/21 programme for A Class Roads is fully complete. In spite of the challenges faced regarding Covid-19, there has been significant progress made in relation to works on B, C and U Class Roads, with a number of these either complete or underway. There have also been various savings achieved in the process, with final submitted valuations from contractors being less than initially predicted. The Cycling, Walking and Safer Streets projects are making steady progress. Construction of the Armadale to Whitburn Cycleway is progressing well and is programmed to be completed this year. Designs are also progressing on a number of projects throughout West Lothian that will improve the cycle path network and provide key links connecting communities and encouraging active travel. As a result of this, phase two is currently underway and design has commenced on a further four footpath projects which include A779 Starlaw Road Bathgate, B7015 Mid Calder, Balmuir Road, Bathgate and Whitburn Road, Bathgate. There is accelerated spend of £176,000 estimated at month 9. Works have been successfully completed at Bathgate Branch Railway Bridge and Skollieburn bridge giving rise to a net saving of £119,000. The initial scope of works required on these projects was less than anticipated which, in turn, resulted in reduced expenditure. Following the announcement of the additional Town Centre funding and approval of projects by Council Executive in October 2020, the allocation process with Local Area Committees was established. Officers are confident that all expenditure will be incurred or legally committed within the given timescales. Similar to the first round of funding provided, applicants either receive the funding directly, or the council retains the budgets if delivering the project on behalf of the applicants. Officers are actively managing the programme to ensure that the projects are successfully delivered. Open Space Open Space projects are progressing very well with 14 planned improvement projects and 11 play park projects either completed or scheduled for completion in the current financial year.
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