Executive	11 February 2021
Report of the Chief Finance Officer Portfolio of the Executive Member for Finance and Performance

Capital Programme – Monitor 3 2020/21

Summary

1 The purpose of this report is to set out the projected outturn position for 2020/21 including any under/over spends and adjustments, along with requests to re-profile budgets to/from current and future years.

2 The 2020/21 capital programme approved by Council on 27 February 2020 and updated for amendments reported to Executive in the 2019/20 outturn report resulted in an approved capital budget of £144.683m.

3 Whilst capital investment has been disrupted due to the pandemic, progress has still been made in a number of areas including

· Continued delivery of Shared Ownership homes with the portfolio now totalling 48 properties with a further 17 in the process of being purchased

· Continued conversion of bus fleets up to the emissions standard required for the city centre Clean Air Zone, with all conversion works due to be completed by 31 March 2021.

· Completion of major expansion at Archbishop Holgate Academy delivering a new three storey classroom block, together with the conversion of some existing classrooms into specialist teaching facilities for Science, ICT and Graphics

· Further rollout of ICT and support to enable continued remote working

· The completion and opening of facilities the Community Stadium as set out at paragraphs 60 - 73.

Recommendations

4 Executive is asked to:

· Recommend to Full Council the adjustments resulting in a decrease in the 2020/21 budget of £24.824m as detailed in the report and contained in Annex A.

· Note the 2020/21 revised budget of £119.859m as set out in paragraph 6 and Table 1.

· Note the restated capital programme for 2020/21 – 2024/25 as set Reason: to enable the effective management and monitoring of the Council’s capital programme.

· Approve the schemes listed in the table at paragraph 18 to be funded from the existing Maintenance programme for 2021/22

Consultation

5 The capital programme was developed under the capital budget process and agreed by Council on 27 February 2020. Whilst the capital programme as a whole is not consulted on, the individual scheme proposals and associated capital receipt sales do follow a consultation process with local Councillors and residents in the locality of the individual schemes.

Summary of Key Issues

6 A decrease of £24.824m is detailed in this monitor resulting in a revised capital programme for 2020/21 of £119.859m. There is an increase of £2.769m in 2020/21 and a re-profiling of budgets to future years totalling £27.593m.  The majority of this re-profiling is due to revisions in assumed spend profile in schemes such as York Outer Ring Road dualling, Fleet acquisition and Waste Vehicle replacement,

7 Table 1 outlines the variances reported against each portfolio area and a summary of the key exceptions and implications on the capital programme are highlighted in the paragraphs that follow.

Department	Current Approved Budget £m	Projected Outturn £m	Increase (decrease) £m	Reprofile £m	Total Variance £m	Paragraph Ref
Children, Education & Communities	15.667	13.231	0.221	(2.657)	(2.436)	8 - 19
Health, Housing & Adult Social Care  – Adult Social Care	3.366	3.867	0.473	0.028	0.501	20 – 22
Health, Housing & Adult Social Care – Housing & Community Safety	44.095	45.050	1.254	(0.299)	0.955	23 – 31
Economy & Place – Transport, Highways & Environment	56.545	33.342	0.527	(23.730)	(23.203)	32 – 54
Economy & Place – Regeneration & Asset Management	18.150	17.675	-	(0.475)	(0.475)	55 – 58
Community Stadium	1.865	2.219	0.354	-	0.354	60 – 73
Customer & Corporate services	2.358	2.108	(0.060)	(0.190)	(0.250)	-
IT Development Plan	2.637	2.367	-	(0.270)	(0.270)	74
Total	144.683	119.859	2.769	(27.593)	(24.824)

Table 1 Capital Programme Forecast Outturn 2020/21

Analysis

Children, Education & Communities

8 Amendments to this area of the capital programme have resulted in a reduction of £2.436m in 2020/21. Further details on various schemes can be found below.

Scheme	Amendment	Amount 20/21 £m	Amount 21/22 £m	Further Details – Paragraph ref
Explore Central library urgent roof repairs	Adjustment	0.221	-	9
DfE Maintenance	Re-profile	(0.500)	0.500	14
Basic Need	Re-profile	(0.636)	0.636	10
Family Drug & Alcohol Assess/ recovery facility	Re-profile	(0.100)	0.100	-
Expansion & improvement of facilities for pupils with SEND	Re-profile	(0.500)	0.500	16
Schools Essential Building work	Re-profile	(0.300)	0.300	12 – 13
Schools Essential Mechanical & Electrical work	Re-profile	(0.300)	0.300	12 - 13
Adaptions to Foster Carer homes	Re-profile	(0.100)	0.100

9 The Explore central library urgent roof repair scheme is to fund the roof replacement work to one wing of the Explore central library building which was urgently required and procured via the Local Authority. Future works will be contracted by Explore directly.  This scheme is fully funded by a contribution from the Library Service Maintenance reserve (an earmarked reserve).

10 Within the Basic Need Scheme at this later stage in the year it is now clear that the original level of spend will not now be achieved therefore it is now proposed to re-profile a further £636k into 2021/22 leaving an uncommitted amount of £600k which will be available for any additional works which may be approved before the end of the financial year.

11 The major expansion at Archbishop Holgate Academy which has been funded by the local authority and managed by Pathfinder Multi-Academy Trust is now almost complete.  This scheme has delivered a new three storey classroom block, together with the conversion of some existing classrooms into specialist teaching facilities for Science, ICT and Graphics

12 Only a small number of critical schemes within the School Maintenance programme were prioritised during this financial year due to the issues created by the impact of the Coronavirus lockdown at the point in the year when schemes would normally be tendered, with work normally planned over the summer holidays.

13 The two urgent large schemes which were carried out were at Dringhouses and Westfield Primaries.  At Dringhouses Primary alterations were carried out to allow the Out of School Club to be accommodated within the schools.  At Westfield Primary the KS1 playground was completely resurfaced and some emergency pipework was carried out.  A number of minor urgent repairs have also been carried out at a small number of schools.

14 It is now proposed that a further £1.1m is re-profiled into 2021/22 (made up of £500k of Condition and Maintenance funding) and £600k of CRAM funding).  This funding has been added to the budgets already included in the current programme for 2021/22 to create a funding envelope for a programme of work consisting of schemes postponed from 2020/21 plus some new schemes.

15 The new schemes proposed for 2021/22 are listed in the table below.  These schemes, together with a further 19 schemes originally approved for 2019/20 at an estimated cost of £4.51m, represent a significant programme of work for 2021/22, totalling approximately £6.3m

School	Description of Works	Estimated Budget Required £000
Applefields School	Roof works	90
Huntington School	Kitchen refurbishment	700
Ralph Butterfield Primary	Drainage	40
St Paul's Nursery	Renew sash windows and external doors	110
Headlands Primary	Roof and guttering renovations	40
Wigginton Primary	Roof Works Phase 3 (including hall roof repair)	230
Yearsley Grove Primary	Outside paving slabs repair/ replacement work	60
Westfield Primary	Pipework and rewire (East Wing) - 5 year plan, year 1	220
Copmanthorpe Primary	Fit new cylinders	70
Wigginton Primary	Pipework	220
	Total	1,780

16 The main project being carried out within the Expansion & Improvement of facilities for pupils with SEND scheme in 2020/21 is the provision of a modular building to host a satellite provision for Applefields School at a budgeted cost of £410k.  This work is now almost complete.

17 A small number of additional schemes may begin before the end of this financial year, however the remaining budget in 2020/21 will not be required therefore £500k has been re-profiled into 2021/22.

18 Work is currently underway at All Saints School to improve accessibility.

19 The main building work at the Centre of Excellence for Disabled Children is almost complete, and the project should reach full completion in September 2020.  Final payments are not due until 2021/22 therefore the remaining budget of £50k has been re-profiled in expectation of this.

Adult Social Care

20 Amendments made as part of this report have resulted in a net increase in the capital programme of £501k in 2020/21.

21 Additional budget of £150k has been set aside for the purchase of the ambulance station should it become available within two years of the transfer of Haxby Hall, as agreed by Executive in January 2020.

22 Within the Ashfield Estate Sports Pitches scheme, mechanical and electrical services on the pavilion are much more expensive than originally forecast and the pavilion substructure has changed following the redesign of the pitch drainage.   It is also expected that there will be an overspend on the access road to the site.  £190k of additional funding has been identified to date, but this is not sufficient to cover the entire cost increase and the team is working to identify further funding to cover the remaining £113k overspend.

Housing & Community Safety

23 Amendments to this area of the capital programme have resulted in an increase of £955k in 2020/21. Further details on variance schemes can be found below.

Scheme	Amendment	Amount 20/21 £m	Amount 21/22 £m	Further Details – Paragraph ref
Major Repairs & Modernisation of Local Authority Homes	Re-profile	(0.299)	0.299	24
Local Authority Homes Phase 2	Adjustment	-	(0.193)	29
Local Authority Homes – Project team	Adjustment	-	(0.150)	30
Willow House Housing Development	Adjustment	-	0.150	30
Disabled Facilities Grant	Adjustment	0.174	-	31
Shared Ownership Scheme	Adjustment	1.080	0.193	28

24 Key projects within the Major Repairs & Modernisation of Local Authority Homes scheme include the Tenants Choice Programme. This programme of work includes replacement bathrooms, kitchens, rewires and loft insulation.  Following the lockdown in quarter 1, work started around August/September time with the contractors working in a new Covid safe way.  Surveys in the Bell Farm area highlighted significant damp issues in a number of the properties, as such further properties have been given to the contractors to ensure a consistent flow of work.  The two contractors are on target to complete around 200 properties by the end of the financial year.

25 The Standing Water Programme also falls within this capital scheme. This programme of works has been slower than expected due to tenants being reluctant to move out of their properties during the pandemic. Twenty-one properties have been completed to date with a further twenty-six expected to be completed by the year end against a target of fifty.  Any underspend at year end will be slipped in to future years to support this rolling programme.

26 The contract has been awarded for the window replacement at Bell Farm & Chapelfields and the contractor is due to start on site early 2021 on this 2 year programme of works. £229k of budget has been re-profiled to 21/22 to reflect this future work.

27 The main roofing contract has now been completed with 8 blocks of flats and 52 individual properties receiving new roofs.

28 Within the Shared Ownership Scheme, the budget has been revised upwards by £1.080m in quarter 3 2020/21 to reflect the equity sales of 9 properties. The budget for this scheme is modelled on 50% of each home being funded by the HRA and resources from Homes England funding. The matched funding is received as a capital receipt when the purchaser buys an equity share of the property, as such the receipts from the sale of the 9 shared ownership homes are required to be reinvested back in to the programme. The portfolio now totals 48 properties with a further 17 in the process of being purchased.  The Homes England shared ownership schemes to purchase 65 properties is on track to be completed by March 2021

29 The Local Authority Homes Phase 2 scheme budget is for future housing delivery schemes not included in the first phase of 8 sites, it has also been used to make purchases of one off properties for social rent to increase the housing stock and maximise the 1-4-1 right to buy receipts which are time limited.  A shared ownership property for £193k has been moved to general needs stock, as such budget of this value is to be moved between one off house purchase and shared ownership schemes in 2021/22 to reflect the spend profile.

30 The LA Homes Project Team budget covers the capital costs of the team and associated project costs.  Executive on 26th November 2020 agreed to allocate £150k from this budget to fund a review of the Willow House site, budget to be allocated in 2021/22 in line with profiled spend

31 Since the easing of lockdown, work with Public Health within the Disabled Facilities Grant scheme has ensured that the adaptations service is delivered safely and measures have been put in place to reduce contact where possible including reducing the number of visits to people’s homes.  The number of referrals in quarter 2 and 3 have been greater than last year but it is not clear the reason for this unprecedented demand.  MHCLG have awarded a further £174,210 DFG grant for this financial year, as such the budget is be increased to reflect this new funding. 

Transport, Highways & Environment

32 There have been a number of amendments to this area as part of this report resulting in a reduction to the capital programme in 20/21 of £23.20m. Key variances are summarised in the table below, referenced to further narrative.

Scheme	Amendment	Amount 20/21 £m	Amount 21/22 £m	Amount 22/23 £m	Amount 23/24 £m	Further Details – Paragraph ref
Highway Schemes	Re-profile	(0.580)	0.580	-	-	33
Highways – Tadcaster Road	Re-profile	(4.500)	4.500	-	-	33
Highways & Transport – Ward Committees	Re-profile	(0.877)	0.877	-	-	34
Special Bridge Maintenance	Re-profile	(0.496)	0.496	-	-	35
Built Environment Fund – Hostile Vehicle mitigation	Re-profile	(1.258)	1.258	-	-	36
Fleet Acquisition	Re-profile	(1.908)	1.908	-	-	37
Rowntree Park Lodge	Re-profile	(0.121)	0.121	-	-
Better Play Areas	Re-profile	(0.250)	0.250	-	-	38
Litter Bin Replacement Programme	Re-profile	(0.200)	0.200	-	-	39
Knavesmire Culverts	Re-profile	(0.227)	0.227	-	-	33
Better Bus Area Fund	Re-profile	(0.312)	0.312	-	-	40
Local Transport Plan	Re-profile	(0.746)	0.746	-	-	41
Local Transport Plan	Adjustment	0.527	-	-	-	41
Local Transport Plan	Adjustment	0.600	-	-	-	42
Highways – pothole and challenge fund	Adjustment	(1.185)	-	-	-	42
Highway and transport schemes	Adjustment	1.185	-	-	-	42
Highway and transport schemes	Adjustment	(0.600)	-	-	-	42
Hyper Hubs	Re-profile	(0.927)	0.927	-	-	43
York City Walls Restoration Programme	Re-profile	(0.120)	0.120	-	-
WYTF - YORR	Adjustment	(4.081)	(15.620)	(13.198)	(3.280)	44
York Outer Ring Road Dualling	Adjustment	4.081	15.620	13.198	3.280	44
York Outer Ring Road Dualling	Re-profile	(4.156)	4.156	-	-	44
Fordlands Road Flood Defences	Re-profile	(0.436)	0.436	-	-	45
National Cycle Network 65 targeted repairs	Re-profile	(0.300)	0.300	-	-	46
Non Illuminated Structural Asset renewal	Re-profile	(0.100)	0.100	-	-
Smarter Travel Evolution Programme	Re-profile	(0.535)	0.535	-	-	47
City Fibre Network	Re-profile	(0.360)	0.360	-	-	48
Fleet & Workshop Compliance	Re-profile	(0.100)	0.100	-	-	49
Stonegate Natural Stone renewal	Re-profile	(0.100)	0.100	-	-	50
Flood Scheme Contributions	Re-profile	(1.000)	1.00	-	-	51
Clean Air Zone	Re-profile	(0.100)	0.100	-	-	52
River Bank Repairs	Re-profile	(0.130)	0.130	-	-
Traffic control/ Reduction & public realm improvements in Bishophill/ Mickelgate area	Re-profile	(0.230)	0.230	-	-	53
Waste Vehicle Replacement	Re-profile	(3.300)	3.300	-	-	54
EV Charging Asset Replacement	Re-profile	(0.150)	0.150	-	-
Flood Sign Renewal & Rainfall Monitoring	Re-profile	(0.150)	0.150	-	-

33 Within the various Highways schemes, the details of the work at Tadcaster road are being finalised and the majority of works will occur in 2021/22 therefore funds have been re-profiled. The majority of this work is funded by DfT. The Knavesmire Culverts scheme has also been re-profiled into 21/22 as this work will be completed at the same time as the Tadcaster Road scheme.

34 Funds of £877k have been re-profiled into 2021/2 on the Highways Ward Committees schemes to carry forward the balance of funding that members have not yet allocated to a scheme. Due to the timescales required for a scheme to be delivered these funds will not be utilised in 2020/21.

35 Bridge Maintenance works have been completed at Blue Bridge and the balance of the bridge maintenance funding £496k will be used in 21/22 as the programme of future works is confirmed.

36 The City Centre Access scheme has been affected by the expansion of the city centre Footstreets area as part of the council’s COVID-19 measures to provide additional space for pedestrians to accommodate social distancing measures. Following the decision at the 26 November Executive to keep the expanded Footstreets area in place until September 2021, it is proposed to reduce the allocation for this scheme to £500k to allow the Racecourse security measures to be implemented in 2020/21, and slip the remaining funding to 2021/22 for the City Centre Access scheme to be implemented.

37 Due to build and delivery timescales the majority of vehicles ordered under the Fleet Acquisition scheme will arrive in 21/22 so the funding is being carried forward to match these timescales.

38 Expenditure on surfacing under play equipment is to be tendered in early 2021 so no expenditure will take place in 20/21. Decisions on the award of the community fund £100k will take place in March so this expenditure will occur in 21/22.

39 The replacement litter bin scheme agreed by members is in the final stages of completion. The £200k is a forecast underspend on the delivery of this scheme due to lower than forecast bin costs.

40 Within the Better Bus scheme the grant funding for the School Bus Exhaust Refits and Tour Bus Conversions schemes has been re-profiled to 2021/22, as the conversion works to reduce emissions from school buses could not be progressed due to the impact of COVID-19 and the lockdown measures. Due to technical issues with the tour buses that have already been converted to electric drive, the conversion of the final two buses has been put on hold, therefore the grant funding for this work has been re-profiled to 2021/22 pending a resolution of the issues

41 The recent award of tranche 2 of the active travel fund for the development and implementation of schemes to improve cycling and pedestrian facilities, including a new pedestrian/ cycle crossing on Tower Street and a new off-road cycle route linking Wheldrake and Heslington has been added to the Local Transport Plan programme. Progress on several transport schemes was delayed earlier in 2020/21, due to the impact of the lockdown measures introduced in March. Feasibility and design work on new schemes was delayed as staff resources were focussed on the COVID-19 measures and the Emergency Active Travel Fund programme, and implementation of schemes was delayed due to the requirements for lockdown and the need for social distancing. The slippage on the LTP scheme reflects this. It has been possible to progress and implement some schemes as planned, including upgrades to traffic signals at five locations; trial road closures in The Groves area to reduce traffic levels; installation of new pedestrian crossings at Haxby Road, Green Dykes Lane, and York Road Haxby; measures to improve safety at Lord Deramore’s school and improvements to the zebra crossing on Hull Road (near Owston Avenue). The COVID-19 measures delivered included creating more space for pedestrians at pinchpoints, extension of the Footstreets area, extension of Park & Cycle facilities at Park & Ride sites, improvements to cycle facilities between Park & Ride sites and the city centre, and additional cycle parking in the city centre. Following a review of the programme in autumn 2020, some of the temporary measures have been removed, while the Coppergate one-way closure and the extension of the Footstreets area have been extended and consultation will be carried out on proposals before making these measures permanent.

42 It is proposed to combine the DfT funded Pothole and Challenge Fund with the budget line Highway Schemes to consolidate the Highways Expenditure. From this combined budget it is proposed that £600k is reallocated to the Local Transport Fund as CYC match funding towards the Active Travel programme as reported to Executive Member for Transport on 18th January 2021. The annex reflects these changes

43 The HyperHubs project to provide next generation electric vehicle charging infrastructure at Monks Cross and Poppleton Bar Park & Ride is progressing well. The Monks Cross HyperHub is due to be completed by April 2021 and will include the first Ultra Rapid chargers to ever have been deployed in York, alongside Fast chargerpoints for Park and Ride users, onsite solar PV and battery energy storage. This landmark facility will be joined by the Poppleton HyperHub in June 2021. Despite the Poppleton Park and Ride site being used as a Covid 19 test centre, constructive dialogue between all parties has secured development access to enable the HyperHub to be built. Design work is continuing for a third City Centre HyperHub following the decision to move the site from York Hospital which had insurmountable access issues. The City Centre HyperHub is intended to be completed in the Autumn 2021. Funds of £1.765m have therefore been re-profiled into 2021/22 for the completion of the schemes

44 The Outer Ring Road junction improvements and dualling proposals are now being developed as a single scheme. Following public consultation in autumn 2020, work on the planning application for the scheme is ongoing, and will be followed by completion of the detailed design for the schemes, with construction planned to start in summer 2023. The allocation for the scheme in 20/21 has therefore been reduced to £1,700k, with the remaining funding re-profiled to 2021/22 for work on the scheme to continue.

45 Work is ongoing on the proposed contract for the Fordlands road flood defences works therefore the majority of funding is being re-profiled to 21/22 as works will not take place in 20/21.

46 As resources were deployed onto COVID 19 response schemes, work has not started on the National Cycle Network 65 targeted repairs and as a result this scheme will now be completed in 21/22.

47 Although work on the Smarter Travel Evolution Programme has continued throughout the year, some of the aspects of the programme will not be completed by 31 March 2021. It is proposed to reduce the allocation for this scheme to £1.660m, and re-profile the remaining funding to 2021/22 to allow work on the data platform and communications upgrades to be completed. 

48 The funding for additional improvements to footpaths to be progressed as part of the CityFibre utility works across the city has not been required in 2020/21, and it is proposed to re-profile this funding to 2021/22 for any further planned works.

49 Within the Fleet & Workshop Compliance scheme, the delivery and installation of some of the workshop equipment will not happen until 21/22 once requirements are finalised.

50 The funding for the Stonegate Natural Stone Renewal scheme will be required in 21/22 when the completion of the footways works will take place.

51 The Flood Scheme Contributions funding is likely to be required in late 21/22 as contributions to Environment Agency scheme.

52 Although there were some delays earlier in the year due to the lockdown measures, bus operators have been able to progress the conversion works required to bring their bus fleets up to the emissions standard required for the city centre Clean Air Zone, and the conversion works should be completed by 31 March 2021. Grant funding was also awarded to Reliance for the purchase of new buses, which are now in operation.

53 Funding was originally allocated for traffic control/ reduction and public realm improvements in Bishophill/ Micklegate. This was to include measures to improve the existing road closure at Victoria Bar. However, following requests to extend the scope of the scheme to review the wider area, and the need to consider the proposals for a car-free city centre as part of the scheme, the work was put on hold to allow these wider measures to be developed. It is proposed to re-profile the funding to 2021/22 to allow a scheme to be developed that could incorporate all of these proposals.

54 The remaining waste replacement vehicles to be purchased will be determined by the future methodology for recycling collections, a decision on which is due as part of the budget process. This funding will therefore be required in 21/22 once this decision is taken

Regeneration & Asset Management

55 A number of amendments have been made as part of this report resulting in a net decrease to the capital programme of £475k in 2020/21. Key variances are summarised in the table below, referenced to further narrative.

Scheme	Amendment	Amount 20/21 £m	Amount 21/22 £m	Further Details – Paragraph ref
LCR Revolving Investment Fund	Re-profile	(0.300)	0.300	56
Community Asset Transfer	Re-profile	(0.175)	0.175	57

56 There are no further loans expected to be completed by the Leeds City Region Revolving Investment Fund in the financial year and therefore no further capital spend is to be required. The budget will be reprofiled into 2021/22.

57 Officers continue to work with Community Groups over a number of potential Community Asset Transfers. There are no schemes ready to complete in 2020/21 therefore the budget will slip into 2021/22

58 There has been significant progress on the Castle Gateway project. Planning permission has been secured for both Castle Mills and the new St George’s Field multi-storey car park which are the first key sites in the delivery of the masterplan. Procurement is under way to appoint a contractor to undertake the detailed design of Castle Mills and provide a tender price for construction. At that point a report will be brought to the Executive in the autumn of 2021 to approve the project and allocate the total construction budget, and to decide whether to proceed with the procurement of a contractor for St George’s Field. This would provide the replacement car parking which would allow Castle Car Park to close to be replaced with new public realm. The design work for that public realm is underway, with a planning application due to be submitted in the summer, to create a shovel ready project to give the council the best opportunity of securing external or government funding.

59 In July 2020 Executive approved a further funding of £1.96m from CYC budgets to fund the project teams, consultancy support costs,   undertake further essential survey works, and to fund an early enabling infrastructure works contract to April / May 2021. CYC have awarded a contract to John Sisk for the enabling infrastructure works within that funding envelope. As Members will be aware Homes England / Network Rail have been directly provided with £77.1m MHCLG funding and they have requested their funding is utilised to extend the scope of the initial procurement in order to accelerate delivery at the site. This facilitating of Homes England budget spending for acceleration and its extent will be reported to Executive as part of ongoing monitoring and update reports

Community Stadium

60  Building works to the York Stadium Leisure Complex (YSLC) were completed in late 2020, with the facilities being handed over from builder to our site leisure operator Greenwich Leisure Ltd (GLL).

61 GLL opened the sites new leisure centre to the public on 21st December 2020, welcoming customers into the swimming pools, gym and to sport hall activities over the Christmas period.

62 The new leisure centre offers a fantastic leisure offer to residents including a 25m swimming pool, a teaching pool (with spectator provision), a leisure fun pool, a100 station gym, dance studio, group cycling studio, competition standard sports hall (with spectator provision), extreme Clip ‘n’ Climb play centre, and 3G astro-turf pitches (multi-use games area).

63 The YSLC will see home to the following tenant partners who are now all starting to move into their new home, completing their own internal final fit outs works before opening to their customers as COVID-19 guidelines will allow in the coming months:

Ø York City Football Club

Ø York City Knights RLFC

Ø York Teaching Hospital NHS Foundation Trust

Ø York Against Cancer

Ø Explore Library

Ø Little Gym

64 It should be reminded that the overall Project has been wider than only building a new sports stadium, by its conclusion the Project will have also helped deliver:

Ø Regional standard athletics facility at Heslington West Campus – Successfully opened summer 2015.

Ø Long term training arrangements for YCK at York St John’s University Haxby Road sports complex.

Ø New long term leisure contract – GLL now operating and maintaining Energise and Burnholme leisure centres, alongside Yearsley Swimming Pool.

Ø YSLC – Location of the new Stadium but with so many more other leisure and community facilities present, including new swimming pools, gym, sports hall, Community Hub, NHS outpatient services and many more.

Ø YSLC associated commercial offer – Regions first Cineworld IMAX Cinema, up to 5 restaurants, retail and further leisure offers

Financial Update

65 The latest budget for the Stadium totals £46,187k that is funded from combination of Council Borrowing / Venture Fund £15,784k, s106 contributions £16,713k, Commercial Land Receipt £7,300k, developer and NHS contribution to the build costs £4,283k, Football Club Foundation £2,000k and other contributions £107k.

66 The latest projection for the overall cost of the scheme is a total spend of £47,295k which is a gross overspend of £1,200k. This can directly be offset by savings arising from not paying GLL for the Stadium and New Leisure Facility which has totalled £487k. This has reduced the net overspend to £713k. In percentage terms that equates to 1.5% of the overall budget.

67 There are two key reasons for the overspend that need to be considered separately. Firstly the delay in the opening of the facility has added internal costs that were not originally budgeted. The facility was originally due to open in Summer 2019 so the council has needed to retain the project team. The delays in themselves and the covid outbreak has resulted in additional legal fees as this has introduced additional complex contractual issues. These costs have totalled £250k once the savings identified above have been accounted.

68 Secondly there have been some additional costs incurred in the build project. As with any major development through its build phase it is natural that some design changes may be required to ensure the end development is fit for users. The YSLC has been no different, with partner and CYC changes being instructed through the build phase, only where absolutely necessary. The overall additional costs which included provisional sums, additional signage, site boundary issues and cladding costs total £458k.

69 Alongside the capital budget the council is responsible for a number of revenue costs and income streams relating to the stadium project. This includes the revenue payments to GLL in operating the stadium and leisure centre as well as project revenues from the sports clubs, stadium sponsorship, leases for space at the stadium and commercial unit. The overall revenue position over the contract period has improved due to a) the delay in the stadium opening has reduced early year costs and b) the council has been able to lease additional space at the stadium.  

70 It is proposed that the capital overspend is funded from a revenue contribution from the Leisure budget of £487k representing the revenue saving that has occurred. It is recommended that the balance (£713k) is funded from additional prudential borrowing funded from the additional annual revenues anticipated from lettings at the stadium. This equates to annual cost of c £50k.

71 It is has been widely reported through the Construction Phase of the YSLC that the Building Contractor encountered delays to completion of their works on site. The Building Contractor commenced works on site in December 2017, with their works originally due to last 16 months, and be complete by Summer 2019.

72 Unfortunately, the Building Contractor’s works lasted in total 36 months. The Building Contractor delays are the subject of ongoing commercially sensitive contractual disputes. With this in mind, the Council are seeking financial damages to the Building Contractor delays through the DBOM Contract with GLL. All contractual disputes and financial claims will follow the prescribed process set out in the DBOM Contract.

73 At this time, the Council is still awaiting full claim details from GLL, and their Building Contractor, in order to make a full and thorough assessment.  The council will continue to undertake detailed assessment of any claims and will update Executive on any future implications at a future time as appropriate

Customer & Corporate Services - IT

74 Within ICT significant work has been carried out in response to Covid-19 that has seen personnel being rapidly redeployed away from other planned work into the enabling of flexible and homeworking, including:

· The quick roll out of Skype for Business to over 2400 users enabling video and audio communication and collaboration tools such as screen sharing etc.

· Purchased, configured, set up and deployed Zoom for use where Skype was not able to meet needs, for example large public facing council meetings.

· Made use of relationships with service areas and schools, sourced, built, tested and issued hundreds of extra laptops to increase home and remote working capacity at a time when usual supply routes were not available and we know other councils struggled.

· Millions of potentially harmful scam emails were blocked and dealt with over the last 9 months

· Worked with colleagues to provide the ICT services required for a number of different projects including but not limited to:

o connecting the hub sites within the City

o Commissioning Peppermill Court which provides Covid19 Patients a step down location between hospital and home to recuperate safely.

o Identifying and commissioning a waste booking system to enable the reopening of the waste recycling centres. This was provided via the website where we took the precaution to provide additional capacity to ensure the system was not overwhelmed by requests as we know has happened at other authorities.

o helping Age UK to identify grants and secure equipment to digitally support their customers.

o providing wireless connectivity coverage at the coronavirus testing facility at Poppleton Bar Park & Ride as part of the government’s UK-wide testing drive.

o provided devices and internet connectivity to residents within our assisted living communities enabling them to have contact with the outside world, from careworkers, doctors, friends & family to giving them the ability to order online food shopping and video calling. This supports our existing work in advancing digital inclusion.

o supported the commissioning of the Nightingale hospital in the Harrogate Convention Centre  

o continued to focus on projects that are priority such as Housing, the Total Mobile SaaS transition, CRM (Lagan switch off), Waste, Parking, 365, Telecare replacement (UMO), the DMS replacement, launched the new Health & Safety product and completed work with Elections.

Summary

75 As a result of the changes highlighted above the revised 5 year capital programme is summarised in Table 2.

Gross Capital Programme	2020/21 £m	2021/22 £m	2022/23 £m	2023/24 £m	2024/25 £m	Total £m
Children, Education & Communities	13.231	24.466	3.000	-	-	40.697
Health, Housing & Adult Social Care – Adult Social Care	3.867	1.129	0.638	0.660	0.682	6.976
Health, Housing & Adult Social Care – Housing & Community Safety	45.050	65.779	41.302	36.790	10.716	199.637
Economy & Place – Transport, Highways & Environment	33.342	66.256	46.342	27.385	9.536	182.631
Economy & Place – Regeneration & Asset Management	17.675	29.118	81.100	51.770	0.500	180.163
Community Stadium	2.219	-	-	-	-	2.219
Customer & Corporate Services	2.108	0.854	0.200	0.200	0.200	3.562
IT Development Plan	2.367	2.810	2.420	2.420	2.420	12.437
Revised Programme	119.859	190.412	175.002	119.225	24.054	628.552

Table 2 Revised 5 Year Capital Programme

Funding the 2020/21 – 2024/25 Capital Programme

76 The revised 2020/21 capital programme of £119.859m is funded from £28.277m of external funding and £91.582m of internal funding.  Table 3 shows the projected call on resources going forward.

	2020/21 £m	2021/22 £m	2022/23 £m	2023/24 £m	2024/25 £m	Total £m
Gross Capital Programme	119.859	190.412	175.002	119.225	24.054	628.552
Funded by:
External Funding	28.277	65.283	111.621	59.899	5.300	270.380
Council  Controlled  Resources	91.582	125.129	63.381	59.326	18.754	358.172
Total  Funding	119.859	190.412	175.002	119.225	24.054	628.552

Table 3 – 2020/21 –2024/25 Capital Programme Financing

77 The Council controlled figure is comprised of a number of resources that the Council has ultimate control over.  These include Right to Buy receipts, revenue contributions, supported (government awarded) borrowing, prudential (Council funded) borrowing, reserves (including Venture Fund) and capital receipts

78 During Executive meetings in October 2016 and July 2017, Members decided to ultimately finance the purchase of property at Hospital Fields Road and Swinegate from Capital receipts. Therefore it should be noted that all future capital receipts are assumed to be used for this purpose in the medium term.  This strategy will deliver significant revenue savings, and reduce the need for savings within the revenue budget.

Council Plan

79 The information contained in this report demonstrates progress in achieving the priorities set out in the Council Plan.

Implications

80 This report has the following implications:

· Financial -  are contained throughout the main body of the report

· Human Resources (HR) – There are no HR implications as a result of this report

· One Planet Council/ Equalities – The capital programme seeks to address key equalities issues that affect the Council and the public.  Schemes that address equalities include the Disabilities Support Grant, the Schools Access Initiative, the Community Equipment Loans Store (CELS) and the Disabilities Discrimination Act (DDA) Access Improvements. All individual schemes will be subject to Equalities Impact Assessments

· Legal Implications - Whilst this report itself does not have any legal implications, the schemes within the capital programme will themselves will be in receipt of legal advice where necessary

· Crime and Disorder - There are no crime and disorder implications as a result of this report.

·  Information Technology – The information technology implications are contained within the main body of the report,

·  Property - The property implications of this paper are included in the main body of the report which covers the funding of the capital programme from capital receipts.

· Other – There are no other implications

Risk Management

81 There are a number of risks inherent in the delivery of a large scale capital programme. To mitigate against these risks the capital programme is regularly monitored as part of the corporate monitoring process, and the project management framework. This is supplemented by internal and external audit reviews of major projects. In addition, the Capital Asset Board meet monthly to plan, monitor and review major capital schemes to ensure that all capital risks to the Council are monitored and where possible minimised

Authors:	Chief Officer Responsible for the report:
Emma Audrain Technical Accountant Corporate Finance 01904 551170 emma.audrain@york.gov.uk	Debbie Mitchell Chief Finance Officer 01904 554161
	Report Approved	x	Date
Wards Affected:  All
For further information please contact the author of the report
Specialist Implications:
Legal – Not Applicable
Property – Not Applicable
Information Technology – Not Applicable

Annexes

Annex A – Capital Programme 2020/21 to 2024/25