Demolition of bungalow to enable Sludge Treatment Facilities at Bellozanne

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A decision made 24 June 2011 regarding:

Decision Reference: MD-T-2011-0065 ~~MD-~~T~~TS - 2011~~
Decision Summary Title :	Request to Demolish TTS ‘D’ Bungalow under Standing Oorder 168		Date of Decision Summary:	16th June 2011
Decision Summary Author:	Senior Management Accountant – TTS Finance		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Request to Demolish TTS ‘D’ Bungalow under Standing Oorder 168		Date of Written Report:	16th June 2011
Written Report Author:	Senior Management Accountant – TTS Finance		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Request to Demolish TTS ‘D’ Bungalow under Standing Order 168.
Decision(s): The Minister approved the demolition of the bungalow known as TTS ‘D’ Bungalow to enable the Sludge Treatment Facilities ~~projects~~ Projects to advance to completion, subject to the confirmation of the Minister for Treasury and Resources under Standing Order 168.
Reason(s) for Decision: Standing Order 168 of the States of Jersey states that (1) (d) the approval of the plans for the construction or alterations of buildings where the work is to be funded wholly or partly by money voted by the sStates must seek approval from the Minister for Treasury and Resources.
Resource Implications: There would be a charge to the profit and loss account within the accounts for Jersey Property Holdings for the disposal of the demolition of bungalow known as TTS ‘D’ Bungalow of £240,000. The exact value of the charge will depend on the land valuation after the demolition.
Action required: The Director of Finance for Transport and Technical Services requests that the Minister for Treasury and Resources approve the demolition of the bungalow known as TTS ‘D’ Bungalow to enable the Sludge Treatment Facilities Pprojects to advance to completion under Standing Order 168.
Signature:		Position: Minister for Transport & Technical Services
Date Signed:		Date of Decision (If different from Date Signed):

Demolition of bungalow to enable Sludge Treatment Facilities at Bellozanne

TRANSPORT AND TECHNICAL SERVICES

REQUEST TO DEMOLISH TTS ‘D’ BUNGALOW UNDER STANDING ORDER 168

Purpose of the Report

For the Minister to approve the demolition of the bungalow known as TTS ‘D’ Bungalow to enable the Sludge Treatment Facilities projects to advance to completion and for the Minister of for Transport and Technical Services to request the Minister of for Treasury and Resources approval to the demolition of the Bungalow in order to comply with the States of Jersey Standing Order 168.

Background

The sewage treatment works (STW) at Bellozanne is located on the north-western outskirts of St. Helier within the relatively narrow Bellozanne Valley, approximately 4km from the centre of St. Helier. Its full postal address is Bellozanne Valley Road, St Helier, Jersey JE2 3JX. The STW forms part of an industrialised area dedicated to processing the island’s waste and by-products including a Clinical Waste Incinerator, a Waste Transfer Station and the recently decommissioned Energy from Waste facility.

The existing sludge treatment facilities, which form an integral part of the STW, were constructed in 1987 on both sides of Bellozanne Valley Road. Surveys of the sludge facilities, which were undertaken in 2008 and 2009, raised concerns about their condition and non-compliance with the current Health and Safety requirements. Following an options review, the preferred one is to develop a new centralised sludge treatment facility to replace the existing outdated one. The proposed site of the new facility is within the curtilage of the Bellozanne STW and includes part of the existing sludge treatment facilities.

Whilst the preferred location requires significant accommodation works, including the removal of some 70,000m3 of material from an adjacent hillside, it has a number of benefits. These are principally operational in that the preferred location fits in well with the current and anticipated future arrangements at the works.

The works comprises site clearance and earthworks in the area between the existing Bellozanne Sewage Treatment Works and the Waste Transfer Station. The area is required to accommodate a proposed upgrade to the sludge treatment facilities, which will form part of a separate contract. The principal elements of the work are: -

Excavate approximately 70,000 m3 of material, comprising principally rock
Remove excavated material off-site to the States of Jersey facility at La Collette
Permanent rock slope stabilisation works
Demolish a vacant residential property
Demolish and remove existing chambers, and associated pipelines
Remove existing access road in the area of the excavation

Discussion

The bungalow and the land on which it sits currently forms part of Jersey Property Holdings (‘JPH’) asset register. At present it is valued at £240,000, which would appear low compared with other similar units, but may well reflect that fact that the access to the bungalow is only available via the STW. The existing land on which the bungalow sits will need to be transferred from JPH’s asset register and added onto the asset at Bellozanne and valued on the same basis as the existing industrial land. As this is a small area relative to the whole it is proposed that the valuation could be undertaken by one of JPH’s qualified valuers. The building which is due to be demolished in accounting terms would be treated as a disposal for no consideration. The whole site would be revalued in 2012 as part of the States of Jersey valuation cycle. The States of Jersey do not budget for a profit/loss on disposal, however the write off will be reflected in the profit and loss account within JPH’s accounts.

A Planning Application was submitted on 11th April to the Environment Department requesting permission to develop the land. It is understood that the demolition of the building does not need to be specifically mentioned in the planning application. Transport and Technical Services has requested the application is determined at the Planning Application Panel meeting on 30th June as a result of a fast track planning application. It is anticipated that site activities would commence in July to enable excavation of the rock within a 26 week contract period.

Recommendation

The Minister approves the demolition of the bungalow known as TTS ‘D’ Bungalow to enable the Sludge Treatment Facilities projects to advance to completion, subject to the approval of the Minister for Treasury and Resources under Standing Order 168.

Reason(s) for Decision

Standing Order 168 of the States of Jersey states that (1)(d) the approval of the plans for the construction or alterations of buildings where the work is to be funded wholly or partly by money voted by the sStates must seek approval from the Minister for Treasury and Resources.

Resource Implications

There would be a charge to the profit and loss account within the accounts for Jersey Property Holdings for the disposal of the demolition of bungalow known as TTS ‘D’ Bungalow of £240,000. This figure is for the land and buildings. The exact charge will depend on the land revaluation post demolition.

Action Required

The Director of Finance for Transport and Technical Services request that the Minister for Treasury and Resources approve the demolition of the bungalow known as TTS ‘D’ Bungalow to enable the Sludge Treatment Facilities projects to advance to completion under Standing Order 168.

Written by:	Senior Management Accountant -– Finance
Approved by:	Director of Finance - Transport and Technical Services
Endorsed by:	Assistant Director - Jersey Property Holdings
~~Attachments~~	~~None~~

I:\Minister\2011\Ministerial Decisions\MD 00 Request To Demolish TTS D Bungalow\WR Request to Demolish TTS D Bungalow.doc~~I:\FINANCE\Transport and Technical\Ministeral Reports\TTS\2011\20110309 MR TTS 2011 Revenue Capital Budget Transfer £2,005,000.doc~~