Agenda item

The Panel will scrutinise the Capital Strategy.                                  (Attached)

• The draft Capital Strategy for 2007-10 was approved for consultation on 2^nd April 2007 by Cabinet.
• The Capital Strategy should be closely linked with the asset management plan, the procurement strategy and the treasury management strategy.
• The Capital Strategy would provide a framework for the monitoring of the capital programme, taking into account revenue implications. It would inform bidding for additional capital resources and contribute to the Council’s approach to PFI/PPP.
• The strategy should state the Council’s processes for option appraisal of capital projects, prioritisation of capital projects, monitoring and evaluating approved schemes and the corporate review of existing priorities.
• An options appraisal of all assets was to be carried out. The value of assets was based on the valuation of the District Valuer. Difficulties over the compatibility of software which kept records of all assets had not been resolved.
• An element of flexibility was needed in the capital strategy. While the document was primarily strategic, adjustments to ensure project delivery could be needed.
• Corporate heads and service managers were responsible for the delivery of capital projects. Regular reports were provided by the Capital Asset Management Group (CAMG). No DSP had scrutinised any decision made by the CAMG.
• The backlog of maintenance and major repairs included work on the Deepings Leisure Centre. In the draft Capital Strategy, work considered essential by a DSP working group in conjunction with the Healthy Environment Portfolio Holder, was subject to the resolution of lease arrangements.
• The County Council had capped the contribution they made for the use of the Deepings Leisure Centre. Discussions had been at officer level. There were indications that the County Council would not be prepared to enter a shared usage agreement.
• The scoring matrix by which capital schemes were assessed was attached to the draft strategy. Project scoring was done by officers and scrutinised by the CAMG. Some concern was raised over the lack of Member involvement, however, it was the responsibility of the CAMG to deliver the council’s capital programme within the parameters set by the Council.

CONCLUSION:

1.                To amend the draft Capital Strategy to incorporate:

·         The appropriate scrutiny body should receive quarterly reports from the Capital Asset Management Group to ensure that scoring processes are robust.

·         That in the “Major repairs and maintenance position” on page 13 of the draft capital strategy, the words “subject to resolution of lease arrangements” should be removed from the Deepings Leisure Centre item.

·         That the Audit Committee should consider whether the scoring matrix for capital projects is fit for purpose.

2.                The appropriate scrutiny body following the elections in May 2007 should ensure that different pieces of software containing details of the Council’s assets are compatible with one another.

3.                That there should be Member involvement at county and district levels on the possibility of a shared usage agreement for the Deepings leisure centre and funding for the county council’s use of the facility.

4.                That the district council should consider reducing the county council’s access to the facility if a satisfactory agreement is not reached on the chance to share agreement or funding from the county council.