CAPITAL PROJECT APPRAISAL

Transcription

1 In Year 1 2 Project Title Appraisal Reference Number CAPITAL PROJECT APPRAISAL Water leak Gt Linford site ArtworksMK 4/C/00389 For the HBS Transactional Capital Team's use only 3 Directorate Learning and Development 4 Service Block Environmental, Protective and Cultural Services 5 Outline description (including specific works) To provide funds to rectify leaking main water pipes at Artworks Gt Linford site by replacement of main. The existing main is discharging an estimated 90 litres of water per hour that may cause damage to the site and is incurring additional water consumption charges. Consequences of not undertaking the project and impact on the community or employees The work is essential for the reasons stated above. If not rectified more serious leaking may occurr in the long term and damage to site and building may result. The site will have water isolated whislt work is undertaken - but it is anticipated that this will be for a limited time. If the work is not undertaken the impact on the site and the business of the Artworks organisation and staff maybe more substantial. The council will continue to incur additional revenue costs to pay for the increased water charges as a result of the leak. Project budget Source of capital funding Capital costs Revenue consequences 2007/ / / / / SCE (R ) Single Capital Pot SCE (R ) Separate Programme Element Prudential Borrowing Major Repairs Reserve Other Total Total COR (Capital Outturn Return) Code Weighted Score Tariff Related CMK Joint Venture Whole Life Costing Completed Authorisations Signature Name Date Project Manager Budget Manager Directorate Finance Manager Richard Schmidt Corporate Director / Assistant Chief Executive Vanessa Gwynn Member with Portfolio Euan Henderson Section 151 Officer Sunil Modelay 1

2 6 Project Dates Planned Start Date 01-Oct-07 Planned End Date 01-Dec-07 7 Nature of expenditure Land - purchase, reclamation or enhancement Buildings and infrastructure - new construction (including extensions to existing buildings) Buildings and infrastructure - enhancement (including refurbishment) Please mark with an where applicable Is the land/building owned by MKC (or does MKC have an interest in it)? Yes/ If no, who is the owner of the asset? Information Technology assets - please specify whether hardware, software or licences, and whether it is to be internally developed, developed by consultants or purchased ne Other tangible and intangible fixed assets - please describe (eg. vehicles, furniture, non-it licences) ne Loan, grant or financial assistance to a third party towards capital expenditure - please describe ne 8 SAP Structure - Indicate with an where appropriate. Complete either section a or b a) Existing SAP structure Project structure to be copied (must be a Capital Project) b) New SAP structure x Number of levels required (a minimum of 2 and a maximum of 3) 2 Name of element Main Contract Fees level 3's required - Indicate with an Number and descriptions of level three elements 9 Responsible Officers i) Project Manager Budget Manager iv) Budget Book Page - (Please select from the Dropdown list provided) Learning, Leisure and Culture Head of Service John Cove v) Profit Centre - (Capital) Location - (Please select from the dropdown list) Ward Linford rth Parish Great Linford 2

3 11 a) Statutory duty or other legal commitments Indicate whether, if investment is not made, the Council will fail to deliver a statutory duty, now or in the future. Brief outline of statutory duty or legal commitment project will address The council has a responsibility to provide a safe environment for people to work and/or visit our premises for activities. The council also has a responsibility under the lease to undertake maintenance of the site b) i) Objectives, Consequences and Urgency Objective of project Describe the problem or issue the project will address, and how this was identified High levels of water comsuption (and bills) compared to average levels of useage for similar facilities have indicated a water leak on site. Amk have now confirmed that there are two water meters on site that continue to record water flow when all outlets are isolated. There is a continual discharge of water estimated by AMk to be in the region of 90 litres per hour. As these are metered supply this is incurring the council in very high water charges. Without urgent rectification of the leaks a) the current waste will continue (if not increase) and the high water charges will continue. Amk have investigated, and it is MKC responsibility rather than the water authority to rectify the leak. AMk have also advised that the quickest and easiest solution is to relay a mains to all of the buildings invovled from one meter. It has not been possible via site survery to identify the routing of the mains supply from the meters to the point of entry into buildings and it therefore possible that the continued leak could cause damage to buildings and other areas of the Gt Linford site (a heritage site with listed buildings) Consequences of not undertaking the project Give brief details of the consequences and the impact on the community or employees The work is essential for the reasons stated above. If not rectified more serious leaking may occurr in the long term and damage to site and building may result. The site will have water isolated whislt work is undertaken - but it is anticipated that this will be for a limited time. If the work is not undertaken the impact on the site and the business of the Artworks organisation and staff maybe more substantial. The council will continue to incur additional revenue costs to pay for the increased water charges as a result of the leak. Urgency of project Give brief details and justification of the time span The nature of leak, costs of water supply and potential damages result in this work is very urgent. The costs to MKC will only increase (water consumption and rectificaiton costs) the longer the work is delayed. Additonal costs maybe incurred if damage results to othere area and buildings within the Artworks site. 12 Consultation with stakeholders Specify any consultations undertaken with stakeholders and others The premsies involved in the bid are operated in conjunction with ArtworkMK. Discussions have taken place with staff and the board of management and they are fully aware and support the position and proposlas to rectify. 13 Extent to which project meets Council's Objectives and Priorities Indicate with an in the appropriate section(s) below which of the Council's Priorities will be met by the project, and for each priority that the project meets, please state which target(s) (from the Council Plan) the project will address Council Priorities Improve the quality of the environment in which we live Improve public transport Target(s) addressed by the project 1a) Ensure that the cleanliness and maintenance work is targeted to clear up grot spots in Milton Keynes.Develop physical infrastructure which encourages strong communities to develop Promote equality and social inclusion and improve health 3a) meeting set physical activity levels (30 minutes of moderate intensity sport and physical activity on at least 5 days a week, sustained over 1 year) in target group in 20 most deprived wards. Establish well-being programme - Measure to be developed (LAA Provide affordable housing for those in need Deliver high quality outcomes for children and families 5a) Developing and promoting a single portal of young people s information on Places to go and things to do. Continue to improve school standards Support people who need help to live independent lives 3c) We will work towards ensuring that our services are accessible to all our communities by: Reduce crime and the fear of crime Improve the experience of our customers 7) Increase independence, well-being and choice for vulnerable and older people through active participation in the community, including physical and cultural activity, enabling them to have a healthy and active lifestyle. Deliver an excellent housing service 3

4 14a i) Extent to which project contributes towards partnership working, medium term planning, delivery of service objectives, equalities issues & other corporate priorities (including delivery of statutory performance indicators and Best Value Improvement Plans) Partnership working Briefly describe the nature and duration of any partnership arrangements The Community Economy and Culture Team work in partnership with the organisation that operates from these premises. The overall delivery of the offer from the projects supports the Council's Cultural, Public Art and Community Development strategies. The partnership is formed by lease for the site and a service level agreements for grant aid support. The responsibility for repair & replacement is with MKC and it may create difficulties with the managment and workgin relationships, the monitorign of the performance of the organisation of the grant SLA if we were not to undertake this work. Performance Indicators Describe briefly any performance indicators supported by the project (including the name & reference), and any improvement in performance the project will deliver The project addresses and supports social, economic and cultural physical development by its plans and programmes. There are varied employment opportunities created by is specilist workshops and artists space. Increase work opportunities for people on incapacity benefit and lone parents on income support can be generateed by projects housed in buildings. The council's CPA score is measured in part on its delivery of cultural services. The council plan refers to providing "A high profile for culture (including sport, leisure and the arts)". Gershon Programme and Efficiencies Give brief details of the efficiencies that are included in the MTP and give details of any ways in which the project will support these efficiencies The project will reduce excess water charges incurred as a result of the leaking pipework which this project will repalce and will therefore contribute to service savings.. iv) Value for Money Explain how the delivery of this project in the proposed manner represents good value for money Costs in undertaking the work now, will be less than incurring higher costs at a later date. The costs of water consumption will be significantly reduced when the leaks are rectified. Further work to identify the exact location of the leak has not been proposed as this would incur additional costs and may not result in the leak being found or may find that the pipework should be repalced in the manner already proposed. v) Service Strategies and Service Plans Give brief details of any ways in which the project supports the delivery of service objectives outlined in the service strategy or plan The buildings support of the delivery of the council's Public Art, Cultural Strategy and Community Development Strategy. Artworks MK and the Heritage Action Plan of MKC. The project also supports the conservation plan of vi) State specifically the equalities issues that have been identified that this project will address The work will ensure that the proejct continues to address and support the social, economic and physical improvments to projects that work with all age groups and social backgrounds How will this project address the equalities issues that have been identified? The proposals support the repairs and maintenance of premises that are used by individuals and groups in the delivery of projects to a range of groups. It is these activities, and access to these activities that directly support the equailities agenda v Other corporate initiatives (including Best Value Improvement Plans/Value for Money Reviews/Systems Thinking) Give brief details of any ways in which the project supports any other corporate initiatives The work will enable Artworks to operate effectivley and focus on the delveiry of its programme. 14b Extent to which project contributes towards national priorities or targets Please state the national priorities or targets and briefly describe how the project will contribute towards these. ne 15 n- Financial Risk Outline what non-financial risks are posed by this project and how these risks are being addressed and state the name of the person who will be managing the risk register for the project. The non financial risks are associated with the impact on the Artworks organisation work programme and ability to impliment its agreed work programme, fulfil their obligaitons under the lease and manage the site. The Reponshble officer for Artworks is Tracy Clarke and for MKC 4

5 16 i) Environmental impacts - This will ensure that sustainability issues are identified and addressed (positive and negative) For each issue in each sub-section below, indicate the impact with an in the appropriate column Economy: Direction of impact/contribution Negative Nil Positive Consider the nature of the project, its service to the community, effect on already established businesses and in particular its contribution to: Employment Consumption Patterns Business development Increasing employment opportunities Increasing vocational training opportunities Increasing equal opportunities for employment Improving environmental awareness of local business Linking the extent to which wages earned locally are spent locally Encouraging sustainable consumption patterns, eg: recycling Encouraging development of new businesses Maintaining the integrity of existing businesses The Artworks project delivers against all of these catagories. If the leak is not repaired it could impact of the ability to deliver Infrastructure Consider the impact of the project and its operation on public services and infrastructure. Consider the impact in terms of: Education The adequacy of the education services Providing affordable housing/housing to rent Housing Improving the quality of existing housing Increasing the energy efficiency of housing Promoting the development/maintenance of pedestrian and cycle lanes Transport Promoting the use of public transport Reducing traffic congestion and delays improving/adding local facilities Waste & Recycling Reducing waste Encouraging recycling/reuse/repair Health Improving access to healthcare Encouraging healthy and safe working environments Emergency Services The adequacy of emergency services The rectification of the leak would reduce waste from the site as well as encouraging a healthy and safe working environment. Community Welfare Consider community issues associated with the project. How the project will perform in terms of: Safety / Security Cultural & Leisure Facilities Participation Public safety on roadways & public areas Minimising crime and fear of crime Providing adequate lighting/security Increasing access to/provision of cultural and recreational facilities Encouraging wide participation in recreational activities Improving the sense of community Involving the community in the development of the project Increasing facilities and opportunities for minority groups 5

6 16 iv) Environmental impacts - This will ensure that sustainability issues are identified and addressed (positive and negative) For each issue in each sub-section below, indicate the impact with an in the appropriate column Aesthetics Direction of impact/contribution Negative Nil Positive Consider the nature of the project and how it blends with its surroundings aesthetically and historically. Consider contribution in terms of: Environment The nature and beauty of the landscape Encouraging the use of open spaces for community benefit Heritage Encouraging nature/wildlife habitats Preserving local heritage including buildings, monuments or sites of historic significance Damage may be caused to the geneneral environment of the heritage site and park if the leak is not addressed. v) Natural Resources Consider the resources used by/supplied by the project during its construction and operation and its contribution to: Land Conservation & biodiversity The redevelopment of Brownfield sites in preference to Greenfield sites Promoting biodiversity and conservation values Pollution Reducing local pollution, eg: air, noise, vibration, water, land The is a leak of an estimated 90 litres of water per hour vi) Design of Buildings & Structures Consider the project design in terms of energy consumption, efficiency & use of renewable resources in construction Energy Maximising energy efficiency Increasing the use of renewable energy resources Increasing the use landscaping Materials Increasing the use of renewable construction materials Reusing/conserving buildings Enhancing the built environment Locality Providing a range of local amenities Improving access for the disabled The work will ensure that Artworks is able to contineu to provide services and contribute to this agenda. The repair work will stop any potential damage to the site and buildings & reduce wasted water 6

7 17.1 a/b Preferred option Description of preferred option, and contribution of the option to the project's objectives. To provide funds to rectify leaking main water pipes at Artworks Gt Linford site by replacement of main. The existing main is discharging an estimated 90 litres of water per hour that may cause damage to the site and is incurring additional water consumption charges. c Likely impacts that will result from pursuing an option (including impact on day-to-day activities during project implementation) d Financial evaluation i) Project budget - Figures should be expressed in 000 Acquisition of land & buildings New construction, conversion and renovation Vehicles Plant, Machinery and Equipment Grants Total project budget Project funding - Figures should be expressed in 000 SCE (R) - Single Capital Pot Element SCE (R) - Separate Programme Element Prudential Borrowing Major Repairs Reserve Grant* Third party contribution* Revenue contribution* Capital receipt* Unspecified* Total funding * Describe specific source of capital funding (Planning Application Reference required for S106 funding) 2007/ / / / /12 Total / / / / /12 Total iv) v) vi) v v ix) Is the scheme funded, or part funded by tariff or is it part of the CMK Joint Venture? - Indicate with an Tariff Related Revenue budget implications (if applicable) - Figures should be expressed in 000 Employees Running costs Income Net Cost/(Saving) To Directorate Source of revenue funding (if applicable) Increase/(decrease) Please confirm that both capital and revenue impacts have been included in the Medium Term Plan Which service? Financial Risk Overspend Unforeseen costs Planned Financing is not secured Other - Please specify Likelihood 1 (low) - 5 (high) 2007/ / / / / e.g. Revenue growth item, virement from existing (identified) budget, revenue grant funding Maintenance reserve for Community Economy and Culture team contribute to the work. The reserve is already covering the costs of initial investigation to identify the leak and produce action plan Staffing implications (if applicable) 2007/ / / / /12 F.T.E F.T.E F.T.E F.T.E F.T.E Severity 1 (low) - 5 (high) Capital Revenue Complete the risk assessment section below by identifying all financial risks that this project poses to the authority Financial Risk Expenditure falls outside planned timescales (issue for time limited grants) Part of the CMK Joint Venture What has been done to mitigate this risk? Assessmenet undertaken by Amk to idenfy the leak, site planning already underway in preparation for work to be undertaken site surveys and investigations not limited by additional financing What ongoing monitoring will be performed to reduce the likelihood of the risk materialising / its severity? Individual proejct monitoring Individual project monitoring Individual project monitoring Individual project monitoring x) Debt Financing Budget implications - MKC Strategic Finance will complete where applicable These figures represent an estimate of the full cost of borrowing of which 2007/ / / / /12 is largely funded through FSS tional impact due to borrowing 7