Fiscal Stimulus Plan: Allocation of funds for work at Overdale Hospital

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A decision made on 13 May 2010 to allocate funds from the Fiscal Stimulus Plan to Jersey Property Holdings for work at Overdale Hospital

Decision Reference: MD-TR-2010-0074
Decision Summary Title:	Fiscal Stimulus Budget Allocation – Jersey Property Holdings		Date of Decision Summary:	7th May 2010
Decision Summary Author:	Interim Treasurer of the States		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Allocation of fiscal stimulus funding for works at McKinstry Ward (Overdale Hospital site)		Date of Written Report:	7th May 2010
Written Report Author:	Acting Fiscal Stimulus Programme Manager		Written Report : Public or Exempt?	Public
Subject: Economic Stimulus Plan: budget allocation to Jersey Property Holdings for the delivery of works at McKinstry Ward (Overdale Hospital Site).
Decision(s): The Minister approved the allocation of £235,020 for the McKinstry Ward project, which is the enabling phase of the project to refurbish Rosewood House, to the Property Holdings department, of which £221,195 is to be transferred to its budget as soon as possible. The remaining £13,825 will be retained at programme level as a contingency against which the Property Holdings department can request drawdown if required. The allocation of £221,195 now will enable the contract to be let to the contractor which submitted the preferred tender. The Minister further instructed the Construction and Maintenance project group to report on spend of all stimulus monies, and project progress/performance, on a monthly basis in accordance with guidelines set by the Treasury, and return any unspent monies on completion of the project.
Reason(s) for Decision: A discretionary fiscal stimulus allocation from the Stabilisation Fund of £44m has already been approved. The projects meet the key criteria for fiscal stimulus being timely, targeted and temporary and will benefit local business and individuals. The £235,020 allocation to the project will enable the Construction and Maintenance project group to progress the Rosewood House refurbishment scheme by providing alternative accommodation for the residents in readiness for the date at which Rosewood House needs to be vacated.
Resource Implications: No financial resource implications other than those explained above and in the accompanying report. No manpower resource implications.
Action required: Treasury to be informed of decision to release necessary funds to the Jersey Property Holdings’ budget.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Fiscal Stimulus Plan: Allocation of funds for work at Overdale Hospital

Treasury and Resources

Ministerial Decision Report

Allocation of fiscal stimulus funding for works at mckinstry ward (overdale hospital site)

1. Purpose of Report

Tenders for a project to adapt McKinstry Ward at the Overdale Hopsital site as suitable temporary accommodation for patients of Rosewood House have now been received and evaluated by Jersey Property Holdings. The tender returns have been subject to review by the Fiscal Stimulus Steering Group (the “Steering Group”) to ensure that the Fiscal Stimulus criteria continue to be met. This paper summarises the resulting recommendation.

2. Background

A major refurbishment at Rosewood House is included in the Treasury and Resources Minister’s “amber light” programme of fiscal stimulus projects. The project is designed to modernise the building, with infection control and health and safety upgrades forming a major part of the scheme specification. In order to enable the work to be undertaken at Rosewood alternative accommodation is required for the residents on a temporary basis, and McKinstry Ward has been identified as a suitable location requiring some alteration to configure it appropriately and ensure it is fit for purpose.

The Rosewood House scheme has been identified as necessary for some years, however a source of funding had not been secured. Without the opportunity of funding from the Discretionary Fiscal Stimulus, it would have deferred until funding was identified.

The scheme will provide work for local business and labour, and is programmed to be undertaken in 2010, significantly increasing public sector spending and investment in Jersey’s infrastructure.

This paper seeks green light approval for the McKinstry Ward enabling works forming part of the overall scheme for which tenders have been returned and evaluated by Jersey Property Holdings.

3. Tender Process and Results

The cost of the project is £235,020 including fees and contingencies. £13,825 will be retained at programme level as a contingency against which the Property Holdings department can request drawdown if required. The allocation of £221,195 now will enable the contract to be let to the contractor which submitted the preferred tender.

Jersey Property Holdings has followed a pre-determined process in conducting the tenders which they confirm to be compliant with Financial Directions and Procurement Principles for the Fiscal Stimulus Programme. The process and outcomes have been subject to review by the Steering Group, which has resulted in the recommendation below.

4. Recommendation from the Fiscal Stimulus Steering Group

The Steering Group recommends that the Minister for Treasury and Resources allocates funding of £235,020 to Jersey Property Holdings for delivery of the project. The budget allocation to Jersey Property Holdings will be in the amount of £221,195, representing construction costs and fees to enable it to proceed in accordance with the critical path of the project. The remaining £13,825 will be retained at programme level as a contingency to be drawn against if necessary.

5. Reason for Decision

A discretionary fiscal stimulus allocation from the Stabilisation Fund of £44m has already been approved. The projects meet the key criteria for fiscal stimulus being timely, targeted and temporary and will benefit local business and individuals. The £235,020 allocation to the project will enable the Construction and Maintenance project group to let the contract and deliver the scheme in accordance with the programme.

6. Resource Implications

No financial resource implications other than those explained above.

No manpower resource implications.