The Corporate Director – Communities submitted a report, the purpose of which, was to develop a modern Highways Depot at Waterton on a reduced footprint to allow the Parc Afon Ewenni (PAE) regeneration site proposal to progress and future proof future depot requirements for the Council as part of the overall depot rationalisation process . The report further sought approval to present a report to Council proposing 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.

The report gave some background information which confirmed that Cabinet approval was given in November 2016, to as an interim measure, continue operating a reduced footprint Depot at Waterton for the next 4 or 5 years and the report outlined certain options that could be pursued to achieve this.

He referred Members to paragraph 3.5 of the report, where it mentioned that it was considered likely that any future configuration of local government re-organisation will still require a Highways Depot in Bridgend to serve the County Borough. The cost of providing a new Highways Depot at a new location was likely to cost considerably more than the £6.5m - £7.5m estimated back in 2016. It was now 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 and then constructing a new depot at a revised location looks increasingly unaffordable.

Paragraph 3.6 of the report, then gave information with regard to an investigation 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.

The Corporate Director – Communities then referred to the subsequent sections of the report on options suggested, including what the PAE Board had agreed, and that the total current capital budget for the scheme was £4.376m. However, 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.

Turning to the current situation, the Corporate Director – Communities confirmed that the scheme cost of what was now the preferred option, was estimated to be in the region of £8.144m, however, due to other added costs, 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. In order to progress this option, a further capital investment of the order 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.

The proposed depot layout provides for:

·         The smallest operationally acceptable footprint;

·          A permanent, modern depot, compliant with the appropriate standards

·          Maximum land available for disposal

The next part of the report advised that although the existing depot was compliant with the relevant health and safety legislation, etc, the existing depot was in a run-down condition.

The Corporate Director – Communities concluded his submission by outlining the report’s financial implications.

The Cabinet Member – Communities advised that the current proposal took into consideration the most effective use of the land for placing such a new facility at this location, and he was pleased to note that although the new depot would be smaller than the one originally proposed, it would cost 40% less on a reduced sized footprint.

The Leader advised that potential partners could also use such a facility which would reduce the costs associated with this, as well as adding that the proposal would be subject to a rigorous procurement process, ie with the works going out to tender in order to secure ‘best value’ (for the project).

The Corporate Director – Communities expanded upon this for the benefit of Members, adding that some of the work could be undertaken internally by the Corporate Landlord section.

RESOLVED:                   That Cabinet:

                      (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)        Gave authority to submit a report to Council recommending 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)      Gave authority to submit a report to Council seeking approval 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.