Transfer of Funding for Rock Fall at Snow Hill

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A decision made (20.10.2008) to approve the transfer of funds to enable a permanent solution to the rock fall at Snow Hill to be implemented.

Decision Reference: MD-TR-2008-0108
Decision Summary Title:	Funding for Rock Fall at Snow Hill		Date of Decision Summary:	14th October 2008
Decision Summary Author:	Loretta Outhwaite: Finance Director		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	n/a
Written Report Title:	Funding for Rock Fall at Snow Hill		Date of Written Report:	14th October 2008
Written Report Author:	Ray Foster		Written Report : Public or Exempt?	Public
Subject: Transfer funding from the Insurance Deductible Fund to address Rock Fall at Snow Hill.
Decision(s): The Minister approved the transfer of funding of £300,000 from the Insurance Deductible Fund to Jersey Property Holding’s revenue budget in 2008 to enable a permanent solution to the rock fall to be implemented
Reason(s) for Decision: The Public is liable to stabilise the rock face and this must be undertaken without delay. No funding to undertake the works exists in any approved budget and the event is uninsured.
Resource Implications: Other than those detailed in the report there are no further financial or manpower Implications.
Action required: Treasury to action the budget transfer. Property Holdings to progress works to effect a permanent solution.
Signature:		Position: Senator T A Le Sueur, Minister for Treasury and Resources
Date Signed: 20th October 2008		Date of Decision: 20th October 2008

Transfer of Funding for Rock Fall at Snow Hill

FUNDING FOR ROCK FALL AT SNOW HILL

1. Purpose of Report

1.1. To request the transfer of £300,000 from the Insurance Deductible Fund (IDF) to meet the cost of addressing the unforeseen and uninsured rock fall at Snow Hill.

2. Background

2.1. On 14 February 2008 a serious rock fall occurred at the northern end of Fort Regent that abuts the Snow Hill area and 28 Hill Street. Debris from the rock fall landed in the rear of an adjacent third party property and on parking spaces in private ownership. The fall narrowly missed an electricity sub-station.

2.2. Jersey Property Holdings (JPH) instructed Frederick Sherrell Limited, on behalf of Geomarine Limited, to assess the situation and propose temporary remedial works to make the site safe. A report was produced on 20 February 2008, which proposed, inter alia, the removal of loose material and installation of rock fall netting to mitigate the impact of any further falls.

2.3. JPH sought advice from the Solicitor General’s office as to the extent of the States liability. The advice received on the common law position on 4 March 2008, and subsequent advice in respect of specific conveyancing issues in relation to the site on 17 April 2008, indicated that there is very little possibility of the States transferring successfully to a third party the obligation make safe the rock face.

2.4. Departmental responsibility for making good the rock face is also somewhat unclear, however, JPH established that neither the Education, Sport and Culture Department (which retains some external works budgets in respect to Fort Regent) nor the Transport and Technical Services Department (which has a wider remit for Island infrastructure) have any funds available to undertake the necessary works.

2.5. JPH also established that the rock fall is an uninsured event, not covered by the States external or in-house insurance arrangements. JPH has no contingency funding for such an event on this scale.

3. Comments

3.1. The temporary works identified by Frederick Sherrell Limited were undertaken in May 2008. A further minor fall took place in June 2008, triggered allegedly by “youths” accessing the area, which highlighted the need to undertaken full remedial works and bring back into use the land below the fall area.

3.2. A proposed permanent solution was prepared by Frederick Sherrell Limited in mid July and this has now been priced by Geomarine Limited.

3.3. Total costs incurred to date are £38,554, comprising surveys, temporary works and associated fees. The permanent solution is estimated to cost a further £245,847, comprising works, external fees and the services of a resident engineer. Allowing for modest contingency, the overall cost estimate totals £300,000.

3.4. This sum cannot be contained within JPH’s 2008 revenue budget without severe consequences, nor is there any capacity to divert funds from capital projects under JPH’s control.

3.5. There are insufficient unallocated funds within Property Holdings maintenance budget to both meet this cost in 2008 and provide a minimum level of coverage for reactive maintenance and unforeseen events. This is an unacceptable position and can not be recommended to the Minister.

3.6. The ‘do nothing’ position is not tenable as there exists a risk that is known to the Public and a means to prevent the risk has been established. The Solicitor General considers that a lack of fund does not remove the Public’s obligation to undertake the works.

3.7. The proposed solution is to action a one-off budget transfer of £300,000 from the IDF to JPH’s revenue budget.

3.8. Once the funding position is secured, JPH will proceed with the works to effect a permanent solution.

4. Recommendation

4.1. To transfer funding of £300,000 from the IDF to JPH’s revenue budget in 2008 to enable a permanent solution to the rock fall to be implemented.

5. Reason for Decision

5.1. The Public is liable to stabilise the rock face and this must be undertaken without delay. No funding to undertake the works exists in JPH, Education, Sport and Culture or Transport and Technical Services budgets and the event is uninsured.

Ray Foster

Assistant Director – Finance & Investment

Property Holdings

11 December, 2008