CAPITAL PROGRAMME & PROPERTY UPDATE. Paper prepared by: Assistant Director of Planning Capital & Estates

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1 CAPITAL PROGRAMME & PROPERTY UPDATE Report of: Executive Director of Planning AGENDA ITEM 4.4 Paper prepared by: Assistant Director of Planning Capital & Estates Executive Summary This report provides an overview of the current status of the UHB s Major and Discretionary Capital Programmes including progress, project issues and financial position. The report includes the current Capital Resource Limit (CRL) as agreed with Welsh Government (WG) together with details of any income generated through the disposal of property. The UHB has a CRL of m for the 2012/13 financial year, comprising of approved funding of m, m of potential funding indentified for projects but yet to receive approval and 6.598m of other potential schemes. Although the 6.598m for other potential schemes remains included on the latest UHB CRL Statement, on going discussions with WG indicate these funds will not be available during The approved funding includes 8.097m Discretionary Capital and m for approved Major Capital projects. It should be noted that WG have reduced the original discretionary capital funding allocation from 8.757m by 0.660m resulting in the revised WG funding allocation of 8.097m. The current discretionary capital funding allocated to deliver the programme is 9.507m. The additional funds relate to sales from land and property, 0.130m from WG for LIMS system and 0.130m funds transferred from Velindre NHS Trust to undertake refurbishment works at Capital Programme and Property Update Page 1 of 10 Strategic Planning and Performance Committee

2 laboratories at UHL. The Committee is requested to: Note: the project status updates Note: adjustments made to the Discretionary Capital Programme during the reporting period The report has financial consequences: Yes / No. The financial implications are generally supported from within the existing capital programme. Where major capital schemes have identified funding issues these are subject to ongoing discussions with the Welsh Government. Board Assurance Framework: The Report provides assurances against Healthcare Standard 12 (Environment). Capital Programme and Property Update Page 2 of 10 Strategic Planning and Performance Committee

3 CAPITAL PROGRAMME & PROPERTY UPDATE 1.0 INTRODUCTION. The purpose of this report is to enable the committee to provide the assurance to the UHB Board that the Capital Programmes are being managed and monitored appropriately and that due consideration is given to any potential Property acquisition or disposals. This report provides the current status of the UHB Capital Programme in respect of progress and financial position. The report highlights any significant project issues that have arisen during the reporting period together with the recommendations or options for consideration to mitigate same. The UHB has a capital funding allocation of m. This can be analysed between: m Strategic Projects with approved funding Discretionary Capital Forecast capital projects without approved funding Potential other schemes TOTAL A copy of the latest UHB CRL (as at 31 August 2012) is provided in Appendix DISCRETIONARY CAPITAL PROGRAMME 2012/13. The initial UHB Discretionary Capital allocation provided by WG was 8.757m. Following an All Wales capital shortfall, WG removed 0.660m from the UHB funding on the basis that, the 0.660m will be the first call on any additional WG funding which may become available later in the financial year. It was previously reported that Velindre NHS Trust have transferred 0.130m to the UHB to undertake work to refurbish laboratory areas at UHL, subsequently, a further 0.140m is being transferred as revenue funds to cover the anticipated outturn cost. Finally WG have transferred 0.130m relating to a new Renal IT system. Capital Programme and Property Update Page 3 of 10 Strategic Planning and Performance Committee

4 Together with property disposals effected in year to date, the net effect of the above adjustments is that the UHB Discretionary capital programme funding has increased to 9.507m. As can be seen from Table 1 below a number of adjustments have been made to some of the schemes within the programme, which have resulted from the receipt of tenders and the firming up of budget costs as the scheme design develops. The current level of over-commitment identified is 1.220m, net of the WG reduction. The committee previously approved the disposal of 3 residential properties and Pen Yr Ynys clinic the proceeds from which should realise circa 0.9m. Following the sale of these properties the balance of the over-commitment would then reduce to a level which can be easily managed through the overall Discretionary Capital Programme. Capital Programme and Property Update Page 4 of 10 Strategic Planning and Performance Committee

5 Table 1 Revised Discretionary Capital Programme Cost Centre Description Orig Adj Latest O'Turn k k k FUNDING: Original Allocation 8,757 8,757 WG Land at Canton Sale Sale of Residential Properties x UHL Labs Sale of Splott Clinic LIMS System DISCRETIONARY CAPITAL ALLOCATION 8, ,507 COMMITMENTS: CED9 Whitchurch Lymphodemia Services CEB1 UHW Laparoscopic Theatre CEB7 UHW Theatre Endoscopy CED2 Barry Hospital Reception CDE2 UHW Dental Rolling Eqt Prog CEB2 UHW Urology Suite 18 Phases 2& CED5 UHW Legionellae Works CEC8 UHW SCT Haematology database CEA4 UHW Bathrooms/Toilets upgrade C5,C6,C CED6 Grangetown HC Works CD86 UHB Electrical Infrastructure Works CEDA UHW Breastcare Services Phase II CEDE UHW Modernisation of Health Records CD09 UHB Misc / Feasibility Fees CD67 UHB Misc Minor Capital Schemes 9 9 CEDK UHW Suite 2 IVF CEDG UHW NICU conversion works CEDJ UHW A3 refurbishment works CD11 UHB Estates Site Upgrade Works * CEDM UHW Labs - newborn blood spotting CDJ7 UHW DDA (Heathfields Entrance Lift) CED4 Rockwood Enabling Works - inc ALAS CDA2 UHB Fire Precautions CD50 UHB Energy Sources CDH9 UHB Accommodation Strategy * CDP7 UHB Statutory Compliance Asbestos/Legionella CEDT Whitchurch west 3 ward upgrade works CEDU Whitchurch Development Triage Assessment ward CEDP UHW Main Theatres upgrade works CEDW UHW Installation Air Conditioning Paediatrics South CEDO UHW Cellular Pathology CEDR Glan Ely Ward Adaptations CEDX UHW Refurb Heathfields Restaurant & entrance 7 7 CEDQ UHB R22 Gas replacement CDZ4 UHL Ward Upgrading CEC9 UHW Theatres Upgrading CEC7 UHW Remodelling Emergency Unit N/A 2 Stanwell Road N/A PSA Building CEDL UHL Labs CEDV LIMS System CD93 UHB Capitalisation of Salaries N/A UHB Strategic capital payback 2,300 2,300 CEDB UHB Director of Planning Staff CDN8 UHB Revenue to Capital DISCRETIONARY CAPITAL COMMITMENTS 9,283 1,444 10,727 Over / Under commitment ,220 Capital Programme and Property Update Page 5 of 10 Strategic Planning and Performance Committee

6 3.0 ALL WALES CAPITAL PROGRAMME 2012/13. UHL Mental Health Unit for Older Persons Formal handover of the building has now taken place with a number of outstanding external elements of work to complete, including: I. The Section 278 works, being the highway alterations on the junction of Penlan Road and the main hospital entrance. These works include the installation of traffic signals and the widening of the entrance to improve visibility. II. The completion of template 1 courtyard III. The removal and reinstatement of the area of the site accommodation The majority of the wards/departments have successfully relocated to the new unit. Early indications from patients, staff and visitors alike are extremely positive. Both the Minister for Finance and the Minister for Health and Social Services visited the unit on Monday 1 st October 2012 and were extremely impressed with the facility and in particular the attention to detail within the development which was only achieved by the involvement of the clinical teams, careers and service users with the technical team from an early stage. UHL Integrated Stroke Unit Ward East 4 has been re-occupied following the completion of the works, with the exception of the solarium. Ward East 6 has now relocated to West 4 to enable the removal of asbestos, attend to statutory works in the area and install roof lights in the cubicles to be progressed. Demolition works in East 5 including the solarium are also continuing. Capital Programme and Property Update Page 6 of 10 Strategic Planning and Performance Committee

7 A partial possession of the Stroke Unit to include East 3 and the Ground floor of the infill blocks will be possible in December This could facilitate the relocation of the patients from West Wing. Discussions are on going with the Directorate to agree a way forward. As previously reported the scheme is projected to be considerably over budget and discussions continue with WG to find a solution to funding the shortfall. UHW Remodelling of the Emergency Unit Detailed design works continue to progress in conjunction with the Directorate team, with the intention to commence the phased programme of works on Monday 3 rd December The phasing programme is subject to confirmation with detailed discussions taking place with the department leads, Welsh Ambulance Trust and the Contractors, in order to minimise as far as practicable the disruption to the service. CRI Conservation works - The extent of the conservation works is now being curtailed whilst the need for additional funding is discussed with WG. Correspondence has been received from the Local Authority Planning Officer expressing concern at the progress being made as it is evident through his regular site visits that activity in this area of the scheme has slowed considerably. The LA has indicated that this scheme remains their most significant restoration project in the city at this present time. CRI Business Justification Cases Work continues in all areas at present however, progress has been affected whilst the investigation into the dry/wet rot continues and the associated remedial works are identified. A detailed report on all technical issues identified including costs and programme effects is being prepared for consideration by the UHB Board. Capital Programme and Property Update Page 7 of 10 Strategic Planning and Performance Committee

8 UHW Children s Hospital for Wales - The construction of the facility is progressing extremely well, with erection of the steel frame having progressed. Currently, the SCP is reporting that they are two weeks ahead of programme. Following approval in principal of the proposal to provide family accommodation in the existing Directorate offices, discussions with the Trust for Sick Children are progressing. It has been confirmed that the Ronald McDonald House Charity does not use the Golden Arches and that the unit is to be named, Ronald McDonald House Ty Croeso, thereby maintaining the original links with the Trust for Sick Children in Wales. UHW Neurosciences The drawings have now been signed off and the detailed design work is progressing so as to allow the scheme to be tendered. It is anticipated that the construction works will commence in the New Year and completed by the end of March UHL Adult Mental Health Unit Development of the FBC is nearing completion and following the market testing exercise undertaken by the SCP a not to exceed cost has been identified. This figure has resulted in the cost plan indicating a project cost of 87,992,080 against an approved OBC allowance of 88,278,893 (a variance of - 286,813). This figure will be used for the financial model to be included in the FBC. The enabling works contract has commenced on site with the temporary entrance and access road being the priority. Works are also progressing to install the hoarding around the site of the proposed multi deck car park. The planning application for the main scheme is yet to be determined. However, it is understood that it is to be considered at Capital Programme and Property Update Page 8 of 10 Strategic Planning and Performance Committee

9 the Vale Local Authority Planning Committee meeting on 22 nd October Making a Difference Rookwood Relocation Approval of the Strategic Outline Case (SOC) has still not been received. With regards to the OBC, the UHB took the decision to progress the scheme without including the possible receipt form the disposal of the existing Rookwood site due to the legal complexities affecting this proposal. A separate paper has been prepared for consideration by the SPPC seeking approval of the OBC. CONCLUSION The UHB continues to progress and manage a large Capital programme in terms of Discretionary and Major capital developments. Emphasis in this report is given to the Progress of the Major Capital schemes whilst there are some interesting minor developments progressing, eg. the refurbishment of Ward A3S South at UHW, amongst others, all of which are providing an improved environment for our patients and staff RECOMMENDATION The Committee is asked to: Note: the project status updates Note: adjustments made to the Discretionary Capital Programme during the reporting period Capital Programme and Property Update Page 9 of 10 Strategic Planning and Performance Committee

10 Appendix 1 Cardiff & Vale 2012/13 - Capital Resource Limit (CRL) - Date Last Updated 31 August ) DISCRETIONARY CAPITAL FUNDING [A] 2012/13 m Capital Resource Limit (CRL) 2) CAPITAL PROJECTS WITH APPROVED FUNDING [B] Llandough EMI Children's Hospital Final Phase Neurosciences Spend to Save Scheme - UHW Remodel Emergency CRI GMS, Integrated Sexual Health and CHAPS Adult Acute Mental Health Unit Adult Acute Mental Health Unit (Enabling Works) Microbiology Labs Renal IT TOTAL CRL [C = A+B] (Approved Funding) ) FORECAST CAPITAL PROJECTS WITHOUT APPROVED FUNDING Adult Acute Mental Health Unit CRI enabling works CRI further works Integrated Stoke Unit Rookwood Specialist Rehab - OBC Fees Discretionary Adjustment ) Sub Total Forecast Capital Projects Without Approved Funding [D] 4)Total Potential CRL if all Funding Approved [E=C+D] Capital Resource Limit 5) Potential other new schemes Potential other schemes funding value ) Sub Total Potential Schemes [F] )Total Potential CRL if all Funding Approved including potential other new schemes [G=E+F] Capital Programme and Property Update Page 10 of 10 Strategic Planning and Performance Committee