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A decision made 3 February 2010 regarding: Fiscal stimulus - budget allocation to Transport and Technical Services for Queens Road to Midvale Road surface water separation project.

Decision Reference: MD-TR-2010-0021
Decision Summary Title:	Fiscal Stimulus Budget Allocation – Transport & Technical Services Department		Date of Decision Summary:	26th January 2010
Decision Summary Author:	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 to the Queens Road/Midvale Road surface water separation project		Date of Written Report:	26th January 2010
Written Report Author:	Acting Fiscal Stimulus Programme Manager		Written Report : Public or Exempt?	Public
Subject: Economic Stimulus Plan: budget allocation to the Transport and Technical Services department for the delivery of the Queens Road to Midvale Road surface water separation project.
Decision(s): The Minister approved the allocation of £346,792 to the Queens Road to Midvale Road surface water separation project, which will be transferred to the department budget as soon as possible. This will enable the contract to be let to the contractor which submitted the preferred tender. He further instructed the civil infrastructure 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 project meets the key criteria for fiscal stimulus being timely, targeted and temporary and will benefit local business and individuals. The £346,792 allocation to the project will enable the civil infrastructure project group to let the contract and deliver the scheme in accordance with the critical path.
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 Transport and Technical Services budget.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Fiscal stimulus - budget allocation to Transport and Technical Services for Queens Road to Midvale Road surface water separation project

Allocation of fiscal stimulus funding to the Queens Road/Midvale Road surface water separation project

26 th January 2010

Background

The section of Rouge Bouillon between the Queens Road roundabout and Midvale Road is currently served by a single combined brick sewer taking both foul and surface water from adjoining properties as well as surface water from the road gullies. This places considerable strain (in certain weather conditions) on the drainage systems, increasing the risk of pollution incidents involving foul water, and also results in rainwater being transported to the Bellozanne sewage works for unnecessary treatment. Separating the foul and surface water drainage will reduce the loading on the sewage treatment works and reduce the incidences of spills of dilute sewage to sea during storm conditions.

Furthermore, the Draft Island Plan recently been published has identified that allowing future residential development in the town of St Helier will make a significant contribution towards provision of future Housing needs for the Island. The continuation of the programme of surface water separation in St Helier, of which this scheme is part, will release significant capacity in the foul network to enable such development to take place without the need for upgrading of the foul network.

Purpose of this paper

The Tenders have now been received and evaluated and the tender evaluation undertaken by TTS has been subject to review by the Fiscal Stimulus Steering Group (the “Steering Group”) to ensure that the Fiscal Stimulus criteria are met. This paper summarises the resulting recommendation.

Tender Process and Results

TTS has followed a pre-agreed process in conducting the tender and the process and outcomes have been subject to review by the Steering Group, which has resulted in the recommendation below.

The reduction in scope of the work which was identified during the planning phase has resulted in the total scheme cost coming in at c. £92,000 lower than was provisionally allocated to this project in the provisional fiscal stimulus programme. Adjustments to the pre-tender estimate to take account of the scope change support that the preferred tender is within an acceptable variance of the pre-tender estimate.

Recommendation from the Fiscal Stimulus Steering Group

The Steering Group recommends that the Minister for Treasury and Resources allocates further funding of £346,792 to the Queens Road/Midvale Road surface water separation project and approves the transfer of that amount to a new capital head of expenditure.