2.1

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2.4

2.5

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3.1

POLICY AND RESOURCES COMMITTEE 13 DECEMBER 2007

CAPITALPROGRAMME2008-12 2J1 ITEMNo. I LReport by Director of Finance and Corporate Resources

PURPOSE OF REPORT To provide Members with details of the Outline Project Briefs for NewProjects to be included in the scoring process and with a summary ofthe Outline Project Briefs for Core and Statutory Projects.

1.1

COMPETENCE

The Comhairle's Capital Expenditure is governed by the Local Government (Scotland) Act 1975 andthe Local Government in Scotland Act 2003.

1.2 Local Authorities in Scotland are required to comply with the CIPFA Prudential Code for CapitalFinance under Part 7 of the Local Government in Scotland Act 2003.

SUMMARY

The development of the 2008-12 Capital Programme began in March 2007, after the Policy andResources Committee of 29 March 2007 approved a framework for the process.

The main determining factor in the size of the Capital Programme will continue to be the level ofSupported Borrowing provided by the Executive, and at the time of writing this is still unknown. In themeantime, work has continued on the development of the new Programme, on the basis of the currentlevel of resources. Once the level of Supported Borrowing is known, the Programme will be tailored tofit the available resources.

Outline Project Briefs (OPBs) have now been prepared for new projects. This includes an amended listof those approved by Committees in October 2007 as well as those that it is recommended be addedfollowing a review of the Core and Statutoryprojects. The final list is attached at Appendix A.

Appendices Band C set out the scoring guidance for the programme. It is recommended thatMembers score criteria 1, 2, 3, 5 and 7, and that Officers provide scores for the objective criteria 4, 6and 8. The Director of Finance and Corporate Resources has arranged a scoring workshop forMembers on 12 December 2007.

Appendix D details the OPBs for projects which are classed as Capital Grants. If approved by theComhairle for inclusion in the 2008-12 Programme, consent will then have to be sought from theScottish Government to classify these as capital expenditure.

OPBs have also been prepared for 45 Core and Statutory Projects. It is not proposed that Membersscore these. However, given that the total value of the OPBs is £46m some scaling is required toachieve an affordable programme. Appendix E shows one way that a programme of £27m could beachieved. No decision on this is required at this time and it is recommended that these OPBs beconsidered in the context of the results of the scoring exercise and the Settlement, at a Members'seminar in January 2008.

RECOMMENDATIONS

It is recommended that the Comhairle:

(a) agree the revised list of New Projects prepared for scoring at Appendix A;

(b) approve the scoring guidance and definitions attached at Appendices Band C and delegateto the Director of Finance and Corporate Resources to score criteria 4, 6 and 8 inconsultation with Management Team;

(c) note the projects which are capital grants detailed at Appendix D;

(d) note the Core and Statutory Projects attached at Appendix E; and

(e) agree that a seminar be held in January 2008 to consider the 2008-12 Capital Programme.

Contact Officer:

Appendix AAppendix B / CAppendix DAppendix E

Mairi Macmillan Tel. 01851-709381

Outline Project Briefs for New ProjectsScoring guidance and definitionsNew Projects which are capital grantsOutline Project Briefs for Core and Statutory Projects

CAPITAL PROGRAMME 2008-12NEW PROJECTS OUTLINE PROJECT BRIEF SUMMARY

OPBREF

Project Summary '1 ~1 i)')~

CapitalContribution

from Comhairle£k

Appendix A

35

36

37

38

39

40

41

42

43

44

Environment & Protective Services

1

2

3

4

5

6

7

EPS1

EPS2

EPS3

EPS4

EPS5

EPS6

EPS7

Homeless Hostel

Private Burial Grounds - Development Grant

Replacement of existing and Additional CCTV Cameras

Community Environmental Grant

Public Conveniences - RavenspointIntegrated Coastal Zone Management (ICZM) Activities & Local Actions.Comhairle Contribution to Coastal Protection Schemes

Education & Children's Services

8

9

10

11

12

13

14

15

ECS1

ECS2

ECS3

ECS4

ECS5

ECS6

ECS7

ECS8

Digitising of School Log Books

Primary Schools Remodeling

S1-S6 Improvements - Lionacleit and Castlebay

Active Schools Playground Development Programme

Pre-school Provision - Stornoway Area

High Support Needs Provision

Traffic Management at Schools

Childrenand YoungPeoplewithSpecialNeeds-Residential Respite Service

16

17

18

19

20

21

22

23

Transportation

TR1 Major Harbour Development

TR2 New Footways and Bus Shelters

TR3 Manor Roundabout Improvement

TR4 Spinal Route ImprovementsTR5 Roads to Communities

TR6 Community Accesses: Improvements to adoptable Standards

TR7 Pontoon Development Programme

TR8 Completion of existing programme for new streetlighting

24

25

26

27

28

29

30

31

32

33

34

Sustainable Development - Sport and HealthSD-SH1 Valtos Outdoor Centre

SD-SH2 Castlebay Fitness Suite

SD-SH3 Community Partnership Sport Projects

SD-SH4 Synthetic Pitches - Castlebay & Sir E Scott

SD-SH5 Synthetic Pitches - Bayble and Shawbost

SD-SH6 Regional Facility - Timing and Starting equipment

SD-SH7 Daliburgh Pool

SD-SH8 Community Gameshall and Changing at Stornoway PrimarySD-SH9 Paible Pool

SD-SH10 Liniclate Synthetic Pitch

SD-SH11 Running Track - Regional Facility

Sustainable Development - General

SD-G1 Parks and Open Spaces

SD-G2 Hebridean Hydrogen Strategy Implementation

SD-G3 Marine Renewable Energy Strategy

SD-G4 Sound of Harris Renewable Energy and Fixed Link

SD-G5 Alternative & Renewable Energy Research Support

SD-G6 Outer Hebrides Biomass Project

Sustainable Development - Development Services

SD-DS1 Stornoway Town Hall RedevelopmentSD-DS2 Core Path Infrastructure

SD-DS3 Loch Stiapabhat Development PlanSD-DS4 THI Initiative

2,500

2,200350

5,000

4,200

200

350

80

14,880

1,600200

150

1,25020

700

850

4,770

70

2,325

2,400

200

650

300

500

400

6,845

"'"

600

168

1,500500

600

30

1,400

1,500

1,400250

450

8,398

~

200

700

500

500

250

250

2,400

2,000300

30

302

2,632

CAPITAL PROGRAMME 2008-12NEW PROJECTS OUTLINE PROJECT BRIEF SUMMARY

OPBREF

Project Summary 0)1'>'vJCapital

Contributionfrom Comhairle

£k

Appendix A

45

46

47

48

49

50

51

52

53

54

Sustainable Development -Economic DevelopmentSD-EC1 Lochboisdale Harbour Development

SD-EC2 Community Marine Access Scheme (CoMAS)

SD-EC3 Stornoway Inner Harbour Regeneration ProjectSD-EC4 Lews Castle & Museum nan Eilean

SD-EC5 Crofting and Land Resources Development Programme

SD-EC6 Creative Industries and New Media Development Programme

SD-EC7 Community Renewable Support Fund

SD-EC8 Tourism Projects

SD-EC9 Isles FM - Proposed ExpansionSD-EC10 Relocation of Bulk Goods to West Harbour

55

56

57

Sustainable Development -Community SupportSD-CS1 Ravenspoint Centre Development

SD-CS2 Gravir Community Hall

SD-CS3 Community Regeneration Grant Scheme

~ Joint Services

58 JS1 Care Home -Ardseileach Replacement59 JS2 Harris Care Development

60 JS3 Bethesda Care Home Redevelopment

61 JS4 Stornoway Care Development

62 JS5 Lochs Day Care Service

63 JS6 Community Meals Service

64

65

66

67

68

69

70

71

Policy & Resources

PR1 Council Offices Tarbert - ReplacementPR2 Urgha Depot Improvements

PR3 Market Stance Depot Improvements

PR4 Marybank Depot ImprovementsPR5 Extension to Balivanich Office

PR6 New Public Information Variable Message signs

PR7 Council Offices Stornoway: Customer Services and Facilities ManagementPR8 CnES EU Match Fund (Capital) 2008-2012

/""' ICT, Procurement &Asset Mgt7'

PROJECT SCORING GUIDANCE APPENDIX B

What is in your bundle of papers? 2 j 4The bundle includes an Outline Project Brief for every project selected to go forward to be scored by Members.The Project Brief contains detailed information to enable the project to be evaluated. There are 8 criteria forevaluating each project and these are listed below. Please consider each of the evaluation criteria and award amark out of 5 for each.

Weighting the Marks AwardedStaffin the departmentof FinanceandCorporateResourceswill applythe followingweightingsto the marksoutof 5 in accordancewith thepolicyagreedat Policyand ResourcesCommittee.

. Corporate Strategy 5

. Core Business 5

. Service Plan 4

. Revenue Consequences 4

. Outputs Expected 3

. Partnership and Additionality 3

. Value for Money 2

. Completed design 2

""'"

1. Corporate Strategy

The Capital Programme is the means of providing the capital resources for implementingStrategy. Therefore any capital scheme must be clearly linked to the new Corporate Strategy.marks out of 5 based on the following:

the CorporatePlease award

2. Core BusinessThis section includes any legal reasons for having to do the project and the legal consequences for not doing it.Core business also includes projects which are required so that a statutory duty may be undertaken e.g. payroll

~

3. Service PlanThis section asks whether the business need stated, clearly identifies the benefits of carrying out the projectand will allow the Comhairle to continue to provide the service in the future. Do you think that the project helpsthe Comhairle deliver the Committee Service Plan.

0 Project does not contribute to Corporate Objectives.

1 Project will make a minor contribution to a Corporate Objective.

2 Project will make a major indirect contribution to a Corporate Objective.

3 Project indirectly contributes to one or more Corporate Objectives

4 Project directly contributes to one Corporate Objective

5 Project directly contributes to two or more Corporate Objectives

0 Project has no effect on core services

1 Project has a minor effect on core services

2 Project will assist in fulfilling core services

3 Project will contribute to delivering core services

4 Project ought to go ahead to deliver core services.

5 Project is essential to delivering core services

0 Project has no bearing on the delivery of the service plan

1 Project has a minor effect on the delivery of the service plan

2 Project will assist with the delivery of the service plan

3 Project will contribute to the delivery of the service plan

4 Project will significantly improve the delivery of the service plan

5 Project is essential to the delivery of the service plan

4. Revenue Consequences 2 ~)5

Have additional revenue costs and their source of funding been identified and are there any revenue savings.You are asked to award a score out of 5 on the basis of whether you think the project contributes to efficiencyby minimising future capital and revenue costs.

5. Outputs ExpectedThis section requiresa scoreout of 5 basedon your opinionon whetherthe projectwill help the Comhairledeliveran improvedserviceanda moremodernandeffectiveservice.

----

6. Partnership and AdditionalityThis section identifies the funding package for the project. Higher scores out of 5 should be given to projectsthat attract funding from sources other than the Comhairle.

r--.7. Value For MoneyDoes the project representa good return for the capital resourcesinvested.Do you think that the projectrepresentsvaluefor moneyin termsof bothcapitalandongoingrevenuecosts

8. Completed DesignHas the design work on the project been completed enabling an immediate or an early start to be made on theproject or is the project at an embryonic stage.

0 Revenue consequences can not be quantified

1 Revenue consequences have been quantified and are significant

2 Revenue consequences would have to be funded from growth.

3 Revenue consequences can be partially met from existing resources.

4 Revenue consequences can be met from existing resources.

5 There are no revenue consequences or they can be met by external organisations

0 Project will have no effect on the service

1 Project will have a minor impact on the service

2 Project will assist deliver an improved service

3 Project will contribute to the modernisation of the service

4 Project is necessary to deliver a modern & effective service

5 Project will deliver an improved, modern and effective service

0 Match funding is zero

1 Match funding is 10% of the project cost

2 Match funding is 20% of the project cost

3 Match funding is 30% of the project cost

4 Match funding is 40% of the project cost

5 Match funding is 50% or greater of the project cost

0 No

1

2

3

4

5 Yes

0 Idea only

1 Feasibility study completed

2 Sketch

3 Outline

4 Detailed design

CAPITAL PROGRAMME SCORING PROCESS

CORPORATE STRATEGY SCORING GUIDANCE

Citiil {>';l'JGrowing Prosperity in a Growing Economy

APPENDIX C

We will lead the delivery of the"Creating Communities of the Future"Regeneration Strategy.We will support or lobby for measuresthat support business growth andcompetitive advantage.

Increased Gross Regional Domestic The project relates to one of theProduct following drivers:

Increased average wage levels in the. Renewable Energyeconomy Innovation, especially theGrowth in the private sector development of a sub-sea

Growth in emerging sectors cable for exporting energygenerated from renewable

Increased land resources in sources.community ownership

Strong Communities, Strong Roots, Strong Culture

. Broadband Capacity for theIslands.

Promotion and Developmentof Culture and Heritage,particularly Gaelic

Enhanced Business Supportand Infrastructure.

University of the Highlandsand Islands MillenniumInstitute

Jobs Dispersal

.

.

.

.

Will the project support businessgrowth or competitive advantage?

Does the project contribute tocommunity land ownership?

We will direct investment to maintainand improve local infrastructure andthe built environment.

We will support communities to Increased range and usage of facilitiesdeliver an accessible, affordable and Increased attendance at events andsustainable range of community activitiesamenities.

We will support the strengthening ofGaelic as a language in the familyand community

We will lead support for culture andheritage

Does the project enhance thelook of a settlement?

Does the project support thcommunity to develop facilities?Does the project increase therange of facilities available ratherthan replicating what is alreadyavailable within reasonabletravelling time?

Will the project increase thenumber of people attendingevents or activities?

Will the project increase thenumber of Gaelic speakers or

Gaelic I learners?who

Increased number of Gaelic speakersin the Outer HebridesIncreased number of nonspeaking new employeesundertake classes

Increased number of events andactivities

Increased support for voluntaryorganisations involved in culture andheritage

Will the project enable moreevents and activities to takeplace?

Does the project support avoluntary organisation involved inculture or heritage?

yuallty t:aucatlon m \oluallty tSullamgs (,~ :J ,

We will deliver a sustainableeducation service throughout theOuter Hebrides.

We will lead and support the deliveryof lifelong learning opportunities forall ages and throughout the islands.

Green Council, Green Islands

Improved attainment and examinationresults

Improved accreditation rates in thecontext of school/college partnershipsImproved attainment in literacy andnumeracy in Gaelic and EnglishMaintained or improved levels ofattendance and inclusion

Improved annual condition andsuitability ratings for the school estate

Increased participation in lifelonglearning opportunities

Will the project enhanceattainment, examination results,literacy or numeracy?Will the project help to improveschool attendance or inclusionlevels?

Will the project improve thecondition of the school estate?

Will the project provide facilitiesor equipment to support lifelonglearning?

We will lead the development anddelivery of a strategy to ensure thatthe Outer Hebrides, and theComhairle, are carbon neutral.

A reduction in the Comhairle's carbonfootprintReduced consumptionbased resources

A reduction in the percentage of totalwaste that is landfilled

We will procure goods and servicesI

Increasing the number of localin the most sustainable way suppliers who win contracts awarded

through competitive tender.

/'

Will the project reduce resource orenergy use?

of carbon IWill the project reduce, reuse orrecycle waste products?

Strengthening Connections, Strengthening Communities

We will lead the delivery of a roadand transport network within andbetween the islands that allowsaffordable access to jobs, servicesand facilities.

We will lobby for the continueddevelopment of affordable andaccessible transport links to themainland.

r--

Increased length of the spinal routethat is double track

Improved annual condition andsuitability ratings of the road network

Maintained or increased affordabilityand availability of bus, air and ferryservices

Does the project increase thelength of double track roads?

Will the project improve the roadnetwork condition and suitabilityratings?

Will the project reduce the cost ofbus, air or ferry travel?

Will the project increase theavailability of bus, air or ferryservices?

Appendix DCAPITAL PROGRAMME 2008-12

CAPITAL GRANTS

"" c:\0LJO

CapitalContribution

fromComhairle

£kOPBREF

12

Environment & Protective ServicesEPS3 Private BurialGrounds Grant SchemeEPS5 CommunityEnvironmentalGrants

2001,250

3Sustainable Development- Sport and HealthSD-SH4 CommunityPartnership Sport Projects 1,500

456

Sustainable Development- Leisure and LearningSD-G1 ParksandOpenSpacesSD-G5 Alternative& Renewable Energy Research SupportSD-G6 Outer Hebrides Biomass Project

200250250

7Sustainable Development- Development ServicesSD-DS3 LochStiapabhatDevelopmentPlan 30

89

10111213

Sustainable Development -Economic DevelopmentSD-EC1 LochboisdaleHarbour DevelopmentSD-EC2 CommunityMarineAccess Scheme (CoMas)SD-EC5 Crofting&Land Resource Development ProgrammeSD-EC7 CommunityRenewable Support FundSD-EC9 Isles FM- Proposed ExpansionSD-EC10 Relocationof BulkGoodsto WestHarbour

1""""\

1,250150

1,0001,000

1502,500

1415

Sustainable Development- Community SupportSD-CS2 GravirCommunityHallSD-CS3 CommunityRegeneration Grant

400

2,200

16Joint ServicesJS3 Bethesda Care Home Redevelopment 250

17Policy and ResourcesPR8 CnESEUMatchFund(Capital)2008-2012 3,000

15,580

CAPITAL GRANT CONDITIONS /""""0.

Consent may be granted by Scottish Ministers to borrow under para 1(2) of schedule 3 of the Local Government (Scotland)Act 1975

if all the following conditions are met:

The Comhairle will identify the statutory function under which it has the power to incur expenditure and confirm that the borrowing for

this expenditure is not prohibited by or under any other legislation.

2 The Grant must be made to a properly constituted community group and not a Local Authority controlled company, trust or partnership,housing association or other public body.

3 The Grant must be for work which if carried out by the Comhairle would result in a Fixed Asset in the Comhairle's Balance Sheet

4 The Grant must not meet the full cost of the project but shall provide capital investment as leverage for additional funding fromother sources.

5 The Comhairle shall not be liable for ongoing or future maintenance of any facility or infrastructure produced with the aid of theGrant assistance.

6 Borrowing to provide Grant assistance will only be used when there is no revenue (CFCR) available.

7 The Comhairle will keep appropriate records of all borrowing incurred under this consent for audit purposes.

CAPITAL PROGRAMME2008-12 Appendix EOUTLINEPROJECTBRIEFSUMMARY.CORE& STATUTORY c-

') i:\ g OriginalMoved to Potential Amended / RevisedOPB

Project Title t.J V .. Capital Bid £k New Prudential Scaled BidsREFProjects Borrowing

Environment & Protective Services1 CS-EPS1 CCTV System 100 (100) (100) 02 CS-EPS2 Upgrade to Homeless Units: Disabled Access 40 403 CS-EPS3 Mandatory works associated with Waste Managementto maintain existing service 5,400 (2,400) 3,0004 CS-EPS4 Cyclical Vehicle Replacement: Cleansing Section 1,320 (1,320) (1,320) 05 CS-EPS5 Metal Baler, Maintenance of Civic Amenity Skips & Community RecyclingCentres 1,650 (200) 1,4506 CS-EPS6 Comhairle Cemeteries - Enhancing Capacity 415 (311) 1047 CS-EPS7 Coastal Defences Repair and ImprovementProgramme2008-2012 250 (188) 63

9,175 4,656Education & Children's Services

8 CS-ECS1 Upgrading of Schools ICT Network 1,000 (250) 7509 CS-ECS2 Core Capital Improvements 4,500 (1,125) 3,37510 CS-ECS3 Schools Energy Efficiency Programme 500 (125) 37511 CS-ECS4 Contribution to WISP 4,600 4,600

10,600 9,100Transportation

12 CS-TR1 Bridge Strengthening & Replacement Programme 1,400 (600) 80013 CS-TR2 Road Strengthening Programme 3,500 (2,333) 1,16714 CS-TR3 Road Safety and Minor Improvements 2,500 (1,667) 83315 CS-TR4 Streetlighting and Amenity Lighting Programme 1,000 (667) 333

,)Q CS-TR5 Traffic Management 400 (267) 133CS-TR6 Replacement of Emergency Vehicles 60 60

10 CS-TR7 Piers and Harbours Improvement Programme2008-2012 300 (200) 1009,160 3,426

Sustainable Development -Sport and Health19 CS-SD-SH1 DDA Access Work to Leisure and Learning Properties 1,000 (500) 50020 CS-SD-SH2 Pitch Development Programme 1,300 (975) 32521 CS-SD-SH3 Leisure and Learning Capital Repairs & Maintenance 400 (300) 10022 CS-SD-SH4 Liniclate Synthetic Pitch 250 (250) (250) 023 CS-SD-SH5 Running Track - Regional Facility 450 (450) (450) 0

Sustainable Development -General (Premises, Parks & Open Spaces)24 CS-SD-G1 Playareas 400 (300) 100

3,800 1,025Sustainable Development -Economic Development

25 CS-SD-EC1 Lews Castle (Essential Repairs) 400 (300) 10026 CS-SD-EC2 Investment in Existing ED Infrastructure re H&S, Building Regs& DDA 650 (325) 325

1,050 425Joint Services

27 CS-JS1 Ardseileach Residential Resource Upgrade 1,500 1,50028 CS-JS2 9 Care units conversion 800 (400) 40029 CS-JS3 Faire Community Careline Service 90 90

CS-JS4 Harris House Replacement 3,000 3,000CS-JS5 Statutory Compliance Work ( residential & Day Care facilities) 900 (450) 450

32 CS-JS6 Dun Berisay - Extension and Modernisation 1,000 (250) 750

- 7,290 6,190Policy & Resources

33 CS-PR1 Resurfacing Car Park, Council Offices, Stornoway 130 (98) 3334 CS-PR2 Replacement of 503 Windows and Screens, Council Offices 484 (363) 12135 CS-PR3 Electrical Upgrading Programme- Council Offices 120 (90) 3036 CS-PR4 Replacement of Existing Emergency Generator, Council Offices, Stornoway 61 6137 CS-PR5 Fire Precaution Works Programme- Council Offices 112 (56) 5638 CS-PR6 Roof Replacement, Council Offices Sandwick Road 950 95039 CS-PR7 Water Services Improvements Programme-Legionella statutory 650 (325) 32540 CS-PR8 Alteration Works Programme- Council Offices 140 (105) 3541 CS-PR9 Disabled Adaptation Works Programme- Council Offices 140 (105) 35

ICT, Procurement &Asset Mgt42 CS-ICT1 IT Infrastructure (FMS/CRM/Firewall/DisasterRecovery/email/videoconf/EDM/etc,) 1,430 (450) 98043 CS-ICT2 Voice over JP(VoIP) 400 (400) (400) 0

Commercial Operations Unit44 CS-COU1 Modernisation of Diagnostic and Air Extraction Equipment at COU Garages 130 (98) 3345 CS-COU2 Cyclical Vehicle Replacement: All Comhairle Operational Fleet (excl Sus Com) 120 (120) (120) 0

4,867 658

Total Bids Received 45,942 (1,200) (1,440) (18,461) 27,481