Budget Transfer: Fort Regent Swimming Pool and Cable Car Station: Demolition

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A decision made 5 December 2017:

Decision Reference: MD-T-2017-0101
Decision Summary Title :	Fort Regent Swimming Pool and Cable Car Demolitions		Date of Decision Summary:	29 November 2017
Decision Summary Author:	Finance Manager		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Fort Regent Swimming Pool and Cable Car Demolitions		Date of Written Report:	29 November 2017
Written Report Author:	Finance Manager		Written Report : Public or Exempt?	Public
Subject: In relation to the demolition of the Fort Regent Swimming Pool Building and Cable Car Station: The acceptance of up to £3 million from Central Contingencies by the end of 2019; this is provisionally split £1.5 million in 2018 and £1.5 million in 2019 but the timing of the calls on contingency will depend on the progress of the project. The transfer of £800,000 from the Department for Infrastructure (DfI) revenue head of expenditure to Central Contingencies in relation to monies carried forward from 2016 for the demolition of the Fort Regent Cable Car Station. The transfer of £750,000 from the Demolition of Fort Regent Pool capital head of expenditure (FA0MF14040) to Central Contingencies. The total amount within Central Contingencies in relation to the demolition works at Fort Regent will total £4.55 million. The ability to draw down from Central Contingencies to the DfI Revenue Head of Expenditure on a quarterly basis of up to £3.05 million by the end of 2018, and a further up to £1.5 million in 2019 in relation to costs associated with the demolition works at Fort Regent. The mechanism for the drawdown will be an email from the Finance Director or Finance Manager in DfI to the Treasury Financial Performance Team, this email will confirm the spend in the quarter and a budget transfer will be enacted to match that spend.
Decision(s): In relation to the demolition of the Fort Regent Swimming Pool Building and Cable Car Station, the Minister for Infrastructure agreed to: Accept up to £3 million from the Central Contingencies by the end of 2019; this is provisionally split £1.5 million in 2018 and £1.5 million in 2019 but the timing of the calls on contingency will depend on the progress of the project. Transfer £800,000 from the DfI revenue head of expenditure to Central Contingencies in relation to monies carried forward from 2016 for the demolition of the Fort Regent Cable Car Station. Transfer £750,000 from the Demolition of Fort Regent Pool capital head of expenditure (FA0MF14040) to Central Contingencies. To request that the Minister for Treasury and Resources approves the ability to draw down from Central Contingencies to the DfI Revenue Head of Expenditure on a quarterly basis of up to £3.05 million by the end of 2018, and a further up to £1.5 million in 2019 in relation to costs associated with the demolition works at Fort Regent. The mechanism for the drawdown will be an email from the Finance Manager in DfI to the Treasury Financial Performance Team, this email will confirm the spend in the quarter and a budget transfer will be enacted to match that spend.
Reason(s) for Decision: Article 18(1A) of the Public Finances (Jersey) Law 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources, be transferred from the head of expenditure to contingency expenditure, within or after the end of the relevant financial year. Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorised to approve the transfer from contingency expenditure of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year. The current Contingency Allocation Policy (published as R.110/2017) sets the requirement for all allocations from Contingency over £100,000 to be considered by the Council of Ministers prior to submission to the Minister for approval. The 2014 Budget approved £750,000 as part of the capital programme to enable planning works to commence on the demolition of the Fort Regent Pool. This amount was approved in the capital programme of the Budget as it was the intention that this funding be used as part of the redevelopment of Fort Regent. On 22nd May 2017 the Minister for Treasury and Resources signed a Ministerial Decision allowing the carry-forward of budget from 2016 into 2017. Part of this approval included carrying forward £800,000 of unspent 2016 budget to be used for the demolition of the old Cable Car Station at Fort Regent, this budget was transferred to the DfI revenue head of expenditure as the works will be carried out by Jersey Property Holdings. On 6th September 2017 the Council of Ministers agreed to use up to £3 million from Central Contingencies to fund the demolition of the Fort Regent Swimming Pool as the building has now fallen into a significant state of disrepair.
Resource Implications: A total of £3 million to be ring-fenced within contingencies for the demolition of the Fort Regent Swimming Pool, split £1.5 million in 2018 and £1.5 million in 2019. The Demolition of Fort Regent Pool capital head of expenditure (FA0MF14040) budget to decrease by £750,000 and the central contingencies budget to increase by £750,000 and to be ring-fenced for the demolition of Fort Regent Pool The Department for Infrastructure revenue head of expenditure to decrease by £800,000 and the central contingencies budget to increase by £800,000 and to be ring-fenced for the demolition of Fort Regent Cable Car Station.
Action required: Finance Manager – DfI to inform Decision Support team in Treasury & Resources that the Decision has been signed.
Signature:		Position: Minister for Infrastructure
Date Signed:		Date of Decision (If different from Date Signed):

Budget Transfer: Fort Regent Swimming Pool and Cable Car Station: Demolition

DEPARTMENT FOR INFRASTRUCTURE

fort regent swimming pool and cable car demolitions

Purpose of Report

In relation to the demolition of the Fort Regent Swimming Pool Building and the Cable Car Station, to allow the Minister for Infrastructure to:

Accept up to £3 million from Central Contingencies by the end of 2019, this is provisionally split £1.5 million in 2018 and £1.5 million in 2019 but the timing of the calls on contingency will depend on the progress of the project.

Transfer £800,000 from the Department of Infrastructure (DfI) revenue head of expenditure to Central Contingencies in relation to monies carried forward from 2016 for the demolition of the Fort Regent Cable Car Station.

Transfer £750,000 from the Demolition of Fort Regent Pool capital head of expenditure (FA0MF14014) to Central Contingencies.

Request that the Minister for Treasury and Resources approves the ability to draw down from Central Contingencies to the DfI Revenue Head of Expenditure on a quarterly basis of up to £3.05 million by the end of 2018, and a further up to £1.5 million in 2019 in relation to costs associated with the demolition works at Fort Regent. The mechanism for the drawdown will be an email from the Finance Director or Finance Manager in DfI to the Treasury Financial Performance Team, this email will confirm the spend in the quarter and a budget transfer will be enacted to match that spend.

Background

Both the Cable Car Station and the Swimming Pool Building at Fort Regent are no longer operational and have fallen into a state of disrepair. In their current state they represent a significant danger to the public, in addition they are becoming increasingly expensive to maintain.

The 2014 Budget approved £750,000 as part of the capital programme to enable planning works to commence on the demolition of the Fort Regent Pool. This amount was approved in the capital programme of the Budget as it was the intention that this funding be used as part of the redevelopment of Fort Regent.

On 22nd May 2017 the Minister for Treasury and Resources signed a Ministerial Decision allowing the carry-forward of budget from 2016 into 2017. Part of this approval included carrying forward £800,000 of unspent 2016 budget to be used for the demolition of the old Cable Car Station at Fort Regent. This budget was transferred to the DfI revenue head of expenditure as the works will be carried out by Jersey Property Holdings.

On 6th September 2017 the Council of Ministers agreed to use up to £3 million from Central Contingencies to fund the demolition of the Fort Regent Swimming Pool as the building has now fallen into a significant state of disrepair.

For further information please see the Business Case for the demolition of the Swimming Pool (Appendix 1) and the carryforward report which details the reasoning for the funding for the Cable Car demolition (Appendix 2).

Recommendation

In relation to the demolition of the Fort Regent Swimming Pool Building and Cable Car Station, the Minister for Infrastructure is recommended to:

Accept up to £3 million from the Central Contingencies by the end of 2019; this is provisionally split £1.5 million in 2018 and £1.5 million in 2019 but the timing of the calls on contingency will depend on the progress of the project.
Transfer £800,000 from the DfI revenue head of expenditure to Central Contingencies in relation to monies carried forward from 2016 for the demolition of the Fort Regent Cable Car Station.
Transfer £750,000 from the Demolition of Fort Regent Pool capital head of expenditure (FA0MF14040) to Central Contingencies.
Request that the Minister for Treasury and Resources approves the ability to draw down from Central Contingencies to the DfI Revenue Head of Expenditure on a quarterly basis of up to £3.05 million by the end of 2018, and a further up to £1.5 million in 2019 in relation to costs associated with the demolition works at Fort Regent. The mechanism for the drawdown will be an email from the Finance Manager in DfI to the Treasury Financial Performance Team, this email will confirm the spend in the quarter and a budget transfer will be enacted to match that spend.

Reason for Decision

Article 18(1A) of the Public Finances (Jersey) Law 2005 states that all or any part of the amount appropriated by a head of expenditure may, with the approval of the Minister for Treasury and Resources be transferred from the head of expenditure to contingency expenditure, within or after the end of the relevant financial year.

Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorised to approve the transfer from contingency expenditure of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year.

The current Contingency Allocation Policy (published as R.110/2017) sets the requirement for all allocations from Contingency over £100,000 to be considered by the Council of Ministers prior to submission to the Minister for approval.

On 22nd May 2017 the Minister for Treasury and Resources signed a Ministerial Decision allowing the carry-forward of budget from 2016 into 2017. Part of this approval included carrying forward £800,000 of unspent 2016 budget to be used for the demolition of the old Cable Car Station at Fort Regent, this budget was transferred to the DfI revenue head of expenditure as the works will be carried out by Jersey Property Holdings.

Resource Implications

A total of £3 million to be ring-fenced within contingencies for the demolition of the Fort Regent Swimming Pool, split £1.5 million in 2018 and £1.5 million in 2019.

The Demolition of Fort Regent Pool capital head of expenditure (FA0MF14040) budget to decrease by £750,000 and the central contingencies budget to increase by £750,000 and to be ring-fenced for the demolition of Fort Regent Pool.

The Department for Infrastructure revenue head of expenditure to decrease by £800,000 and the central contingencies budget to increase by £800,000 and to be ring-fenced for the demolition of Fort Regent Cable Car Station.

6. Action Required

Finance Manager – DfI to inform Decision Support team in Treasury & Resources that the Decision has been signed

Written by:	Finance Manager
Approved by:	Director Finance