Treasury and Resources
Ministerial Decision Report
Allocation of fiscal stimulus funding for refurbishment of rosewood house
1. Purpose of Report
Tenders for a refurbishment 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 “FSSG”) 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 House alternative accommodation is required for the residents on a temporary basis, and there is currently a project taking place at the McKinstry Ward on the Overdale site where the patients will be cared for whilst the Rosewood House wards are being refurbished.
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 been deferred until funding was identified.
The scheme will provide work for local business and labour, and is programmed to be undertaken in 2010 and 2011, significantly increasing public sector spending and investment in Jersey’s infrastructure.
This paper seeks green light approval for the project for which tenders have been returned and evaluated by Jersey Property Holdings.
3. Tender Process and Results
The total cost of the project is £2,054,165, which includes fees and contingencies as well as the cost of additional nursing staff arising from providing care across 2 sites whilst the project is being undertaken and project management resource to oversee the refurbishment. The allocation of £2,054,165 (being £1,891,202 to Jersey Property Holdings and £162,963 to the Health and Social Services department) 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 main tender which they confirm to be compliant with Financial Directions, with one approved variation as noted below, and Procurement principles for the Fiscal Stimulus Programme. The process and outcomes have been subject to review by the FSSG, which has resulted in the recommendation below.
4. Recommendation from the Fiscal Stimulus Steering Group
The FSSG recommends that the Minister for Treasury and Resources allocates funding of £2,054,165, being £1,891,202 to Jersey Property Holdings, and £162,963 to the Health and Social Services department, for delivery of the project. The budget allocations are recommended to be made as set out in the table below and represent construction costs, additional nursing and project management resource together with appropriate contingency to enable the scheme to proceed in accordance with its critical path.
| 2010 | 2011 | Held at programme level | Total |
| £ | £ | £ | £ |
Jersey Property Holdings | 1,750,632 | - | 140,570 | 1,891,202 |
Health and Social Services Department | 66,700 | 96,263 | - | 162,963 |
| 1,817,332 | 96,263 | 140,570 | 2,054,165 |
The £140,570 retained at programme level is provision for professional fees which the Property Holdings department can request to drawdown and have transferred to budget subject to providing the FSSG with full justification of the amount and the nature of costs it is intended to fund.
5. Reason for Decision
A discretionary fiscal stimulus allocation from the Stabilisation Fund of £44m has already been approved. The project meets the key criteria for fiscal stimulus being timely, targeted and temporary and will benefit local business and individuals. The £2,054,165 allocation to the project, of which £1,913,595 will be allocated to department budgets now, will enable the Construction and Maintenance project group to progress the Rosewood House refurbishment scheme and enable the contract to be let to the contractor which submitted the preferred tender.
6. Resource Implications
No financial resource implications other than those explained above.
The Health and Social Services department will also require the approval for further staff on a temporary basis, being 7 additional headcount and FTE with effect from the date of this decision to the end of July 2011.
The Minister is recommended to approve the Health and Social Services department’s request to increase their established “business as usual” manpower.