Decision details
South Wye Transport Package (SWTP) and Hereford Transport Package (HTP) Budget Update
Decision Maker: Chief finance officer
Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
Purpose:
The Council’s decision of 2 February
2021 approved cancelling the SWTP and HTP schemes and outlined
costs associated with the de-capitalisation of the projects. This
decision report can be viewed using the following link:
http://councillors.herefordshire.gov.uk/documents/s50086609/Hereford%20Transport%20Strategy.pdf
Included in the de-capitalisation costs were estimates of remaining
project costs for both schemes based on knowledge at that time and
an approved the revenue budget for these costs. The estimates
comprised:
SWTP - £50k
• Gain share contractual payment associated with works
completed financial year 2018/19 £40k
• Outstanding compensation payments to landowners
£10k
HTP - £350k
• Gain share contractual payment associated with works
completed during 2018/19 and 2019/20 prior to decision to pause
scheme £200k
• Removal of boreholes £140k
• Final payment on Peer Assessment commission £10k
SWTP
The BBLP contractual payment and land compensation costs have come
in under the estimated budget, which leaves £43,206.17
available for reallocation within the project. This will fund final
contractual legal fees associated with land acquisition that were
not included within the February report. These costs have totaled
£44,060.13 which exceeds the remaining budget.
Updated final SWTP project costs comprise:
• BBLP contractual payment for final costs associated with
concluding contractual matters and final account
£6,151.83
• Compensation payments which relate to landowner legal fees
associated with the CPO £406.00
• Internal recharge for Property Services fees for managing
compensation payments associated with land acquisition (CPO &
SRO) £236.00
• Sharpe Pritchard legal fees for works associated with land
acquisition (CPO & SRO) £37,512.40
• Associated interest and court fees following legal action
instigated by Sharpe Pritchard in June 2021 £3,731.77
• Internal recharge of legal fees for support to concluding
the Sharpe Pritchard contract £2,815.96
The total value of these costs is £50,853.96 which exceeds
the estimated revenue budget set out in the February council
decision by £853.96.
HTP
The BBLP gainshare and the final peer assessment costs have come in
under the estimated budgets. This leaves £49k available for
reallocation which will fund a legal cost of £1k which was
not included within the February report and the £1k SWTP
overspend detailed above. The remaining underspend will be
allocated to the borehole removal and any associated compensation
budget element in the event that these costs exceed the
estimate.
Updated project costs comprise:
• BBLP gainshare contractual payment for works completed in
previous financial years and final account £155,512.59
• Removal of boreholes and compensation payments
£15,020.70
• Final payment of costs for works associated with the Peer
Assessment £2,079.88
• Legal invoice £1,000.00
These costs total £173,613.17 and have been paid from the
project revenue budget approved within the February Council
decision report.
Contact: Mairead Lane, Acting Assistant Director for Highways and Transport / Head of Infrastructure Delivery Email: mlane@herefordshire.gov.uk Tel: 01432 260944.
Publication date: 26/11/2021
Date of decision: 26/11/2021
Accompanying Documents: