MEETING TITLE AND DATE:

Housing Growth and Regeneration Panel

17th November 2011

REPORT OF:

Director of Technical and Property Services

Contact officer: Ron Pooley

Telephone number: 020 8375 8266 E-mail:

1.EXECUTIVE SUMMARY

1.1The purpose of this report is to update the Housing Growth and Regeneration Panel on the budget monitoring position as at the end of September of the Capital Budget for 2011/12. The Capital Budget is £33.069m against the Programme of £33.069m, with SAP Actuals of £5.564m and SAP Commitments (Excluding Actuals) of £15.385m.

1.2To secure full spend against the allocated capital resources by 31 March 2012 expenditure will have to occur at an average rate of £4.584m per month. Technical Services are confident that full spend will be achieved and Programme Management Section of this report provides details of progress on a number of projects yet to be reflected in the figures.

2.RECOMMENDATIONS

2.1That this report is noted.

3.CURRENT FINANCIAL POSITION

3.1The total allocated resources of £33.069 is based on the Council’s detailed assessment of the capital resources available, and their priority in terms of their application in financing capital expenditure, as shown below:

Capital Resource Statement / Priority / £’000
Decent Homes – Supported Borrowing / 1 / 14,000
MRA Brought forward from 2010/11 / 2 / 7,927
MRA 2011/12 / 3 / 10,309
Capital Grant – Barnet Sub-Regional fund / 1 / 130
Capital Grant – Technology Strategy Board / 1 / 139
Total Works To Stock / 32,505
Capital Receipts (Community Halls) / 4 / 564
Total Capital Resources Enfield Homes / 33,069 / 33,069

3.2The financial position as at the end ofSeptember is summarised below in

Table 1, with the May to August positions shown for comparison:

Table 1
Capital Programme 2011/12 Summary / Capital Budget (Resources Allocated by LBE) / Capital Programme (Planned Capital Activity for 2011/12) / SAP Commitment
(Excluding Actuals) September / SAP
Actual September
£,000 / £,000 / £’000 / £’000
Decent
Homes / 14,000 / 14,000 / 11,396 / 2,488
General
Works / 18,505 / 18,505 / 3,889 / 3,480
Community Halls / 564 / 564 / 100 / 12
Sept Gross / 33,069 / 33,069 / 15,385 / 5,980
Leaseholder MW Income / 0 / 0 / 0 / -416
SeptNet / 33,069 / 33,069 / 15,385 / 5,564
August Net / 33,069 / 33,069 / 7,828 / 4,631
July Net / 32,879 / 32,879 / 8,417 / 4,204
June Net / 32,879 / 32,879 / 9,432 / 1,307
May Net / 32,879 / 32,879 / 11,947 / -832

The difference between SAP actuals of £4.631m in August and £5,564 in October is £0.933m.

3.4 The joint mid-year review of the capital programme has been carried by Technical Services and Finance on the following basis:

  • Reconciliation of the current approved capital programme to expenditure and commitments in SAP;
  • Review and update the forecast full year outturn for all schemes included in the approved programme and adjust the budget allocation accordingly;

3.5Appendices 1 & 2 show the current agreed and revised Capital Programme for Decent Homes and General Works.

3.6There are unallocated resources of £1.663m for General Works. There may still be a requirement to provide additional resources for the concrete works at Jackson & Swinson (Landlord Obligations). The approved allocation of £710k has been increased by £450k to £1.160m in the revised budget, but additional costs are anticipated. Use of the unallocated resources will be the subject of a separate report.

3.7All the Decent Homes projects have now been commissioned, and are now nearly all committed in SAP. However, the General Works Programme still has new projects valued at £5.444m to get underway.

3.8Approval has been received for the staff structure to deliver the Decent Homes Capital Programme for 2011/12. The provision of £900k has been adjusted to the approved amount of £783k in the Decent Homes Programme and the balance of £117k has been reallocated within the programme. Revenue funding of £159k has also been approved for temporary positions that cannot be capitalised.

4.NON-FINANCIAL OUTPUTS & OUTCOMES

4.1The number of the properties projected to be made decent or prevented from falling into non-decency is shown in Table 3:

Table 3

Properties Achieving Decent Homes Status in 2011/12 / No / %
Properties expected to be made decent / 748 / 6.6
Properties expected to prevented from becoming non-decent / 1,191 / 10.5
Total number of properties expected to secure Decent Home status / 1,939 / 17.1
Total number of properties / 11,318 / 100.0

This data will be updated quarterly over the financial year

4.2The number of properties expected to be worked on in each of the Decent Homes elements is shown below in Table 4.Because many of the properties will be receiving work in two or more categories, the total for all the categories exceeds the actual number of properties being worked on.

Table 4

Decent Homes Elements 2011/12 / Number
Bathrooms / 993
Doors / 1,301
Electrics / 1,039
Heating / 481
Kitchen / 923
Roof / 326
Structural / 366
Windows / 703

4.3The following Decent Homes projects will reach practical completion during 2011/12, as shown by Table 5.

Table 5

Decent Homes Projects Reaching Practical Completion in 2011/12 / Date - August / Date - Sept
Jackson & Swinson – Windows Renewals & External Envelope Works / 09/11 / 09/11
South Street Kitchen & Bathrooms Renewals & Externals (Updated) / 11/11 / 11/11
Bounces Rd & Eldon Rd – Windows Renewals & External Envelope Works / 12/11 / 12/11
Cyntra Decent Homes Kitchen & Bathrooms Renewals & Externals / 03/12 / 03/12

5.FINANCIAL CONCLUSION

5.1Although the Capital Programme is six months into the financial year, significant levels of expenditure are not expected at this stage. The Programme Management Team is confident that the programme will be fully spent by 31st March 2012. The full-year forecast for Decent Homes, General Works and Community Halls is to fully spend their current allocations, subject to the risks identified in Sections 6.1.1, and 6.2 below.

6.PROGRAMME MANAGEMENT – SEPTEMBER REPORT

The 2011/12 Capital Programme is the 3rd year of Decent Homes and remains focused on kitchens and bathrooms, rewires and boiler replacements. The General Works programme is focussed on lifts and fire doors. The Community Halls programme is in the 3rd phase of refurbishment but spending a decision to retender this stage of works.

6.1Decent Homes Programme

6.1.1South Street: There is likely to be anunder-spend of £233k on the project with an anticipated final account at present of £1.800mcompared to the current allocation of £2.033m.This is reflected in the proposed revised budget. The reason for the reduction lies in a number of omissions and refusals.The underspend will be offset by additional properties to be included within the CYNTRA project to a similar value.

6.1.2The works are running 8 weeks behind schedule with an anticipated completion date of mid December. Works are behind programme due to issues with sub-contractor performance and workmanship. New sub-contractors have been brought in to continue the works and are being closely monitored. Resident satisfaction issues are also being addressed.

6.2General Capital Programme

6.2.1Garchy Systems:This scheme is not proceeding given that the business case for the work indicates it is more cost effective to maintain the lorry service for emptying the pits. A budget of £200k will be held for the vehicle purchase and refurbishment and also works to maintain the system, while the balance of £400k has been redistributed in the General Works Programme.

6.2.2Fire Precautions:It is possible that additional funding will be required for this year's programme of work given the need to carry out additional works and the scope and extent of these works is currently being assessed. At present the allocated budget remains unchanged.

6.2.3Estates Improvement Budget:The budget of £1.930m includes £200k for Integrated Reception Systems (IRS) to provide digital television reception, £200k for playgrounds and £500k for the Security Door Programme. The balance of £1.030m will be used on Estate Improvement works, managed by Technical Services but this will be subject to review once the team is in place and are in a position to progress the works. Once the team is established this will become a rolling programme subject to annual funding.

6.2.4Jackson & Swinson (Landlord’s Obligations):Additional concrete and brickwork repairs have been identified on closer inspection of the blocks.

The structural engineer’s report has also identified further problems with the concrete slab edge of both tower blocks. The Council’s own structural engineers have been commissioned to provide a second opinion in an endeavour to keep the repair works to a minimum.

6.2.5Works are progressing well with window and door installations increasing. Window installations to all Palmers Road blocks are now complete with electrical works, soffit and hanging tile reinstatements well underway. All external lighting has been upgraded on inspection and recommendation of the Electrical Engineer. Asbestos removals from ceilings in communal areas in the low rise blocks were effectively carried out with no resident disruption.

6.2.6Window installations on HighviewGardens are95% complete with electrical works, soffit, hanging tile reinstatements and communal decorations well underway. The windows installation to Swinson House are 95% complete and at Jackson House are 80% complete. .

6.2.7Lifts Programme Phase 2:Work on this project was delayed due to hold ups in the approval process to appoint a lift consultant to advise on the refurbishment contract. Frankhams have been appointed and have recommended that Enfield nominate a supplier for materials and pre-order materials with the supplier prior to the tender process to speed up the lead in times and ensure that significant spend, (estimated at £1m), is achieved in this financial year. This model has been used by Brighton Hove City Council recently.

6.2.8 AlmaTowers:In conjunction with residents and LBE, options for replacement of the riser and means of heating the towers is being reviewed. At present the likely works should still achieve planned spend.

6.2.9 Leighton Road: Scheme being progressed and discussions being held with LBE planning department. Works will be phased over two-years with £500k in 2011/12 and the remaining funding of £1.0m being included in the 2012/13General Works Capital Programme.

6.2.10Baker St / Lancaster Gate Estate Improvements: Scheme is ready to go to tender subject to final design with an expected start of February 2012. Scheme cost estimated at £450k, with projected spend for 2011/12 of around £100k.

6.3Community Halls

6.3.1Community Halls Refurbishment Phase 3: A decision was made at Client Liaison to look at carrying out the full scope of works. A revised report has been prepared for Client Liaison, to seek approval of the additional funding over and above the ring fenced allocation. This is to be funded from current un-allocated funds in the General Works Capital Programme.

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