The Head of Finance and Section 151 Officer presented a report to obtain approval from Council for a revised capital programme for 2016-17 to 2025-26. On 1^st March 2017 Council approved the Medium Term Financial Strategy (MTFS) for 2017-18 to 2020-21, which included a revised capital programme covering the period 2016-17 to 2026-27.

Since the Medium Term Financial Strategy was approved, Cabinet had received a number of reports which required that Council approved changes to the capital programme, either to add in a new scheme or to remove a scheme. There were also changes required to the highways schemes relating to two 21^st Century School schemes.

On 28th March 2017 a report was presented to Cabinet on ‘School Modernisation:  Outcome of the Evaluation Regarding the Proposed Relocation and Enlargement of Mynydd Cynffig Primary School to a Remodelled School Building and New Provision on the Current Cynffig Comprehensive School Site’. The report outlined the outcome of the re-evaluation of both current junior and comprehensive school sites for primary provision and it was considered that the proposal did not represent value for money. Consequently, a recommendation was made to Cabinet to abandon the scheme. Cabinet accepted this proposal and that Council approve the removal of the school scheme from the capital programme, along with the associated highways works.

The current capital programme, approved by Council on 1 March 2017, included the Mynydd Cynffig Primary School total scheme budget at £7.050 million, comprising funding from BCBC and Welsh Government. The removal of this scheme from the programme would release £3.238 million of Welsh Government funding and £3.812 million of BCBC funding, comprising capital receipts, general capital funding and earmarked reserves.

The capital programme also included a budget of £700,000 in respect of highways works. This was also proposed to be removed from the capital programme.

For Brynmenyn Primary School, the initial cost estimates for highways improvements associated with the new school were based on desktop feasibility work and transport assessments undertaken by Capita consultancy at the pre planning application stage . At the planning and development control stage, conditions imposed with the planning application included the additional creation of pedestrian and cycle route links to the new school in light of the new active travel legislation, it also subsequently became apparent that  more comprehensive works to two junctions leading to the school was required, including the movement of some utilities provision. 

More detailed estimates for this work had now been provided following pre tender design work, and this had resulted in a significant increase in the overall estimated cost, leading to a budget shortfall of £620,000. As stated, the increase in cost had occurred in two main areas - the introduction of Active Travel link costs and highway junction improvement cost estimate variance. At the time the initial school scheme was drawn up the Active Travel (Wales) Act 2013 was in its infancy. However, as a school specific transport assessment and travel plan was developed, as part of the planning process, the requirement for an active travel route was identified. This was subsequently included as a condition of the planning application to promote a sustainable means of travel to and from school. This accounted for over £200,000 of the £620,000 shortfall.

The balance of the shortfall related to a difference in early cost estimates initially indicated by Capita consultancy for the highway junction works improvements, and a second later in-depth detailed cost estimate provided by the Council’s internal engineering service following initial design work. This increased cost could be met from unallocated capital receipts.

Council agreed funding of £310,000 for the Pencoed Primary School Highways Works in October 2016. Since then the cost of the scheme had increased to £370,000 as a result of the inclusion of planning conditions necessitating improved schemes for traffic calming on Penprysg Road and additional street lighting at Cae Talcen to meet the requirements of creating a ‘ safe route ‘ to school. This increase in cost could be met from unallocated capital receipts.

There were also a number of other adjustments required to the capital programme approved in March to reflect further slippage into 2017-18 following the closure of the 2016-17 accounts (£7.670 million), new external funding approvals, reduced spend on externally funded projects and changes to expenditure profiles across financial years.

A Member raised serious concerns regarding Capita and what percentage of the original feasibility work the £200,000 equated to. If the Active Travel (Wales) Act 2013 had been enacted then it should have been taken into account when the original estimate was made. This accounted for £200,000 of the £620,000 shortfall and this was unacceptable because unallocated capital receipts could have been used for other things. The Corporate Director- Communities explained that he was not happy with this piece of work and that this would be pursued at the next Capita board meeting. He explained that there was always a balance to be struck between the amount of early feasibility work that was undertaken which might lead to more accurate estimates but at increased initial cost, against the risk of abortive costs if that scheme, for whatever reason, then did not go ahead. 

A Member asked why the decision had been taken to abandon the scheme to relocate Mynydd Cynffig to the Comprehensive site and if the funding for the scheme would be returned to the 21^st Century Schools programme. The Head of Finance and Section 151 Officer explained that there had been match funding and the balance would be returned to the “general funding pot” for future use. The Interim Corporate Director - Education and Family Support explained that negative feedback had been received from the community following a stakeholder consultation and revised budget estimates lead to the conclusion that the proposal did not represent value for money.

A Member asked why the proposal to relocate and enlarge Mynydd Cynffig Primary School had been considered in the first place. The Cabinet Member for Education and Regeneration explained that proposals had been developed to create a school for 3 to 19 year olds. This would also deal with   refurbishment and traffic concerns with the existing building and under occupancy at Kenfig. The consultation was unsuccessful and the issues would be reconsidered. Surveys would be reviewed to check if any urgent works were required.

A Member asked how much the scheme had cost prior to it being abandoned. The Interim Corporate Director - Education and Family Support reported that the total cost had been £327,802.

A Member raised a number of concerns in relation to when the shortfall was identified, the lack of adequate provision for dropping off young children and clarification of the future use of Brynmenyn Primary School. The Corporate Director- Communities explained that he would find the date the shortfall was identified  and make that information available to the local member. The future use of the current Brynmenyn School site had not been decided but if the property was surplus to requirements of the Council then it would be disposed of.  The Corporate Director- Communities agreed to brief the Member at a later date.

A Member asked if the item, “Unadopted Highways” related to a specific scheme. The Corporate Director- Communities explained that no future expenditure was planned for unadopted highways at this time as largely the responsibility for bringing highways up to an adoptable standard lay with the developer and not the Council. It was a matter for Council whether they wanted to prioritise this moving forward and make an allocation to do this work.

A Member asked why the inclusion of improved schemes for traffic calming and additional street lighting had not been included in the Pencoed Primary School highways works beyond those originally identified at the outline stage. The Corporate Director- Communities explained that it was a requirement of a planning condition and he was satisfied that it there would be no other additional requirements.

RESOLVED:             That Council approved the revised Capital Programme as set out in Appendix 2 of the report.