To approve in year adjustments to the capital programme agreed by Council in January 2018.

Council considered an update to the Capital Programme. The report was introduced by the Cabinet Member Finance and Corporate Services who moved the recommendation with an alteration to recommendation f in the report to refer to paragraphs 37 and 38. The Cabinet Member explained that the capital programme update was required following additional grants awarded by central government and the allocation of section 106 monies to capital projects.

The recommendations in the report were seconded by Councillor BA Durkin.

The Cabinet Member Economy and Communications introduced detail of the capital projects concerning the cyber security centre and the Shell Store business incubation facility. The cyber security centre was a project being undertaken in partnership with the University of Wolverhampton and would provide a facility for research and development. The Shell Store would provide space for up to 30 local business start-ups and would be the only business incubation facility in the Marches LEP area. The Cabinet Member Children and Young People presented detail of the capital projects concerning the Children’s Wellbeing and the Cabinet Member Health and Wellbeing outlined detail of the investment in the redevelopment of the Hillside Rehabilitation Centre.

Councillor Greenow left the meeting at 11.16 a.m.      

Members made the comments below in the discussion that followed:

·         It was queried when the Cyber Security Centre would be completed and how many jobs would be created. The Cabinet Member Economy and Communications explained that it was anticipated that building would start in Q3 of the current year and a 12 month build was likely. It was not the purpose of the Cyber Security Centre to create jobs; the facility enabled businesses to test cyber security products.

·         The lack of grant funding for the Ross Enterprise Park was queried. The Cabinet Member for Finance and Corporate Services explained that the project had been assessed by the Local Enterprise Partnership and there had been some positive feedback. Unfortunately there was a lack of funding to dedicate to the scheme; an application for funding could be made under a future round of LEP funding but there was uncertainty when this would occur.

·         It was noted that the projected cost of the Shell Store project had increased which had also been experienced in other projects. Better initial estimates of capital projects were urged in future. The Cabinet Member Economy and Communications explained that it was a complex project and the increase in cost was frustrating. The Cabinet Member Finance and Corporate Services explained that an element of the increase in costs was attributable to inflation in construction costs.

·         Assurance was sought that after the refurbishment of the Hillside Centre the asset would be retained and not sold. The Cabinet Member Health and Wellbeing explained that the need for care facilities and provision would double in the future therefore there were no plans to sell the facility once constructed. 

·         It was noted that opportunities for business incubator facilities also existed in market towns including Bromyard and Leominster.

·         It was requested that the risk register  ...  view the full minutes text for item 17

To recommend to Council proposed in year adjustments to the capital programme including proposed investment additions for 2018/19, 2019/20 and 2020/21. These items are in addition to the £92.418m for 2018/19, £48.078m 2019/20 and  £8,484 2020/21 capital funding approved by Council in January 2018.

The capital programme update report was introduced. 

The group leader for the Green Party commented that there was a missing “m” after the figure £8,484 in the first paragraph under purpose and summary. 

The group leader for Herefordshire independents commented that the proposal for the Cyber Security Centre was welcomed.

It was noted that the Hillside project would be looking at innovative ways of utilising the building.   Consideration was being given to extend the facility from 22 to 28 beds and potentially to just beyond 30.   Depending on the financial case, the spend would be up to £1.5m. 

It was further noted the projects would be subject to further reports to gain approval to commit the spend. 

RESOLVED