The Corporate Director Communities reported on a proposal to develop a modern Highways Depot at Waterton on a reduced footprint to allow the Parc Afon Ewenni regeneration site proposal to progress and future proof future depot requirements for the Council as part of the overall depot rationalisation process.  He also sought approval for a revision to the Capital Programme for a further capital sum of £4,944,000 to be included in the Capital Programme to fully refurbish and develop the depot, to be funded from the sale of land at Waterton as part of theParc Afon Ewenni and partly from general capital funding.  

The Corporate Director Communities informed Council that Cabinet approval was given in November 2016 as an interim measure of operating a reduced footprint Depot at Waterton for the next 4/5 years in order to find a balance between operating a viable depot and maximising the land allocated for disposal.  In progressing the strategy for a reduced footprint operational depot at Waterton, two options were identified and assessed.  Option 1 to retain both the Highways Building & Biffa Building; demolish County Borough Supplies (CBS), Fleet building & wheelie bin store.  Option 2 to retain Biffa Building, demolish CBS, Fleet, Highways & Wheelie bin store).  The Parc Afon Ewenni Board decided to progress option 2 and the works were completed during 2017.      

He reported that any future configuration of local government re-organisation will still require a Highways Depot in Bridgend to serve the County Borough.  It was estimated that the cost of a new Depot in a new location would be in the region of £9m - £12m, as a result of (probable) changing and more onerous NRW requirements.  In recognition of this, the option of operating a largely unchanged depot for 4/5 years as an interim measure in line with the Cabinet approval and then constructing a new depot at a revised location looked increasingly unaffordable.

He reported that an investigation was undertaken to identify the differences between the continued operation of the reduced footprint for 4-5 years, with a new depot constructed at a new location thereafter and the alternative option of the development of a permanent operational depot on a reduced footprint at Waterton.  He stated that total current capital budget for the scheme was £4.376m, some of this budget has already been committed to works at Bryncethin Depot, as a result of moving some of the parks and built environment operations to this location, leaving a balance of £3.2m.

The Corporate Director Communities reported that the scheme cost of what was now the preferred option was estimated to be in the region of £8.144m; however, there was now a deficit between the overall cost of the maintenance/compliance works and the total estimated net land receipt and the existing capital budget.  He stated that in order to progress this option, a further capital investment of £4.944m was required in addition to the estimated remaining capital of £3.2m, which would come from the estimated total land receipt of £3.5m plus an additional £1.444m of general capital funding.  He outlined the proposed depot layout.  He stated that the principal drivers to achieve compliance are the Health & Safety at Work Act and to meet the requirements of Natural Resources Wales.  

He also informed Council that he was keen to share the facilities of the new depot with other organisations akin to the practice at the Bryncethin Depot.  He stated that the new depot will be a very efficient and well organised depot. 

The Cabinet Member Communities in commending the proposal thanked officers for exercising sound judgement and believed the proposal for a reduced footprint depot to be prudent.  The Leader in supporting the proposal hoped the new depot will strive to BREEAM excellence standards. 

A member of Council questioned whether it was prudent to develop a new depot at this point in time and whether it would be preferable to delay making a decision when services such as weed spraying are being reduced.  The Cabinet Member Communities commented that the new depot was necessary to serve the residents of the County Borough in that gritting and highway repair vehicles will be based at the depot and the Council could not afford to develop a larger site. 

RESOLVED:             That Council:

(1)    noted the proposed preferred option for development of the Highways Depot is now to provide a permanent modern, fit for purpose depot, on a reduced footprint at the Waterton site.  This will ensure compliance with all necessary current standards/legislation while maximising the amount of land available for sale to generate a capital receipt and allow housing development in line with the approved Local Development Plan;

(2)    authorised that the capital receipt from the sale of the Council’s land at Waterton is reinvested to support the development of the depot as without the progression of the new depot proposed above, it would not be possible to release all of the land for sale;

(3)    approved that a further capital sum of £4,944,000 be included in the Capital Programme to fully refurbish and redevelop the depot as proposed, including refurbishment of the appropriate buildings.