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ITEM CA11

CABINET – 18 OCTOBER 2005

TRANSPORT CAPITAL PROGRAMME

Report by Head of Transport

Introduction

  1. This report gives an assessment of performance in implementing the Transport Capital Programme and forecasts that the likely outturn will closely match the intentions at the start of the year. Delivery of the programme is an important part of the Department for Transport’s assessment of the performance of the Transport service and is a factor in their decisions on future capital funding for Transport in Oxfordshire.
  2. The report concentrates almost exclusively on this year’s programme. This is because the programme for future years is being considered as part of the development of the second Local Transport Plan.
  3. The report does however look to the future in reporting on the work done to find a way of accelerating the work on Controlled Parking Zones in Oxford and concludes that earlier implementation of these is possible.
  4. The Cabinet should also be aware that the 2006/07 programme, which it approved on 7 June 2005 for inclusion in the Provisional Local Transport Plan, now needs amendment because of the likely reduction in funding expected as a result of new, formula based allocations. We shall report separately on this in the New Year, in the context of the Local Transport Plan approval process.
  5. Background

  6. The total value of the Environment & Economy capital programme is £41.759 million including two small non-Transport schemes. The Transport schemes total is £41.256 million. Annex 1 (download as .xls file) gives the breakdown of this into the various programme areas.
  7. The largest funding block for the programme is the Government’s Supported Capital Expenditure (Revenue) (SCE(R)) allocation for Transport of £30.878 million. This is time limited to 2005/06 (with one agreed exception for an A40 maintenance scheme). Other sources of funding are developer contributions, On-Street Parking Surplus, repayment of revenue funds for loans from Transport capital in earlier years, grants and (for a highway depot replacement scheme) capital receipts. Annex 2 (download as .xls file) gives a breakdown of the use of these funding sources across the programme areas. The imperative is to ensure that the SCE(R) is spent in the year and our monitoring systems are designed to track expenditure from each source to ensure that this is done.
  8. There are 273 schemes under the Integrated Transport Schemes heading being worked on this year of which 127 are planned to be built or started this year with the remainder in various stages of design. There are 94 individually listed maintenance schemes (including 26 drought damage repair schemes funded by a one-off amount of £3.691 million within the SCE(R) total for this purpose) as well as blocks of maintenance funding for surface dressing, footway and patching works.
  9. Performance Assessment

  10. Based on all the available current information, the forecast is that the programme will be delivered very much as intended and the SCE(R) spent. However, there are some risks around particular larger schemes. The performance data and the risks are discussed below.
  11. The forecast expenditure overall and for each programme area is given in Annex 1 (download as .xls file)which shows that the budget is expected to be spent. This forecast is built up from information for each individual scheme which is regularly reviewed and kept up to date by the project managers. The coincidence of overall budget and outturn expenditure in the summary data hides variations in individual scheme costs and reflects the role of project managers in keeping overall expenditure within budgets. Expenditure on 12 schemes is forecast to be below the budget by 10% or more and on 20 schemes to be above by 10% or more.
  12. Although this variability is not having an effect on the programme this year, the size of some variations is a concern. Improving the accuracy of estimating, particularly in the early stages of a project, is something which we are pursuing internally and with our consultants. This is a also a topic to be pursued as one of those in the Action Plan agreed as a joint response to the Cornmarket Scrutiny Review.
  13. Annex 3 (download as .xls file) looks at schemes which are planned to be built (or started) this year and forecasts that these are on programme except for concerns about the Abingdon and Henley town centre schemes. This monitoring uses the information available from the much improved and developed master programming system to compare the number of days of planned construction activity with those that have actually taken place and so form a view as to the likely outturn position.
  14. Performance on completed schemes is measured by a system of Key Performance Indicators which include design cost and time reliability and construction cost and time reliability. These are reported quarterly by Jacobs Babtie, our engineering consultant, and the latest report shows that the average of all returns is within the range of variation looked for. However, the sample of schemes measuring construction cost and time reliability is small.
  15. Taking all information into account, it looks at this point as though the targets in the Transport Service Plan to build 80% of the schemes in the programme and for 80% of those schemes to be within +/- 20% of the costs at works order stage, should be met.
  16. Risks on Specific Schemes

  17. There are 3 large schemes which have been completed but on which the final costs have yet to be agreed with the contractor. (These are Hennef Way, Skimmingdish Lane and Cornmarket). A total of £3.1 million has been included in the programme budgets to cover settlement of these accounts but it is by no means certain that this will be achieved within the year and we do not want to prejudice our negotiations by rushing to settle. This amount is financed from sources other than SCE(R) so the uncertainty does not put spending of SCE(R) at risk.
  18. Didcot - Milton Heights Stage 2 has a budget of £600,000 to cover land acquisition costs, landscaping works, and claims for loss of value on properties. The land and compensation costs are uncertain but the scheme is financed from developer contributions so does not pose a risk to SCE(R) spend.
  19. Within the Integrated Transport schemes, Annex 3 (download as .xls file) mentions concerns over land acquisition for the Abingdon Town Centre scheme but we believe these have now been overcome. Agreeing the consultation arrangements for the Henley Town Centre scheme caused some delay but the consultation exercise has now taken place.
  20. Thornhill Park & Ride interchange scheme has been delayed by looking for alternative designs to reduce the cost of proposed resurfacing of the car park area and keep the estimated cost within the original budget. A revised Project Approval will be submitted in December which omits any substantial work on the parking area. Some SCE(R) is allocated to this scheme and is likely to be spent but the delay does not put other financing at risk.
  21. One of the schemes in the bridge strengthening programme (Oxhey Lane Bridge, Cropredy - £400,000) has been agreed with Network Rail for implementation this year but this depends on Network Rail completing their design and making a start as agreed. (The amount specified is the County Council’s agreed contribution.)
  22. Larger Schemes that have Avoided Potential Risks

  23. In Oxford, both Cowley Road and Abingdon Road schemes are complex schemes to build, with a considerable potential for problems, but both are proceeding to a successful conclusion as programmed, thanks to excellent teamwork by those involved in the projects.
  24. The West End Link Road Stage 1 in Witney had some early problems with diversions of statutory undertakers mains and services but the project remains on programme and within the budget provision.
  25. Work on the design of Green Road roundabout remodelling with early contractor involvement is promising and looks as though the scheme estimate is still accurate. The scheme has been expanded to include the structural maintenance of the length of the A40 from the roundabout to the Thornhill Park & Ride entrance. The maintenance work is funded by part of a ringfenced SCE(R) allocation for A40 in the 2005/06 award with approval to take this over to 2006/07.
  26. Implementation of Controlled Parking Zones in Oxford

  27. The Cabinet asked for ways of speeding up implementation of these schemes to be investigated, particularly in North East Oxford. The conclusion of our investigation is that the schemes in Headington and Marston can be completed 2 years earlier than originally planned: by 2009 instead of 2011. The new programme would mean that for most of this period 7 schemes will be worked on simultaneously, and at one point 8 schemes. All these would of course be subject to the statutory process of consultation and consideration of any representations made.
  28. The earliest that any of the new schemes could be brought in is the last quarter of 2007. This would be The Lakes followed by Northway and Marston South by late Summer 2008. Wood Farm, Lye Valley and Marston North would be completed in the second half of 2009.
  29. To achieve this acceleration will require more consultant and council staff to be put on these schemes. It has been difficult to recruit and retain staff in the Transport Projects Implementation Parking Team and if this faster progress is to be achieved, it is likely that either staff will have to be taken off other work or further staff provided by the consultant will need to be seconded to the team to work with them.
  30. The accelerated programme will need to be built into the second Local Transport Plan and the funding arranged accordingly to support the new timetable. Developer funding is available to pay for a considerable proportion of the estimated costs but some SCE( R) support will be needed. If the Cabinet agree that they want the Controlled Parking Zones to follow the faster timetable then the use of SCE (R) in the Local Transport Plan will have to reflect this.
  31. RECOMMENDATION

  32. The Cabinet is RECOMMENDED:
          1. to note the progress and forecast on implementation of the 2005/06 Transport capital programme;
          2. to agree the accelerated programme for Controlled Parking Zones in Oxford and the necessary funding of these schemes as part of the future Local Transport Plan programme.

STEVE HOWELL
Head of Transport

Background papers: Nil

Contact officer: Richard Dix Tel: 01865 815663

October 2005

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