Economic Stimulus Plan: Budget Allocation for Refurbishment of Rosewood House

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made on 28 July 2010 regarding a budget allocation from the Economic Stimulus Plan for the refurbishment of Rosewood House

Decision Reference: MD-TR-2010-0111

Decision Summary Title:

Fiscal Stimulus Budget Allocation Jersey Property Holdings - Rosewood House

Date of Decision Summary:

12th July 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:

Fiscal stimulus funding for refurbishment of Rosewood House

Date of Written Report:

12th July 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 refurbishment of Rosewood House.

Decision(s):

The Minister :

1. Approved the allocation of £2,054,165 to the project for the Rosewood House refurbishment project and approved the transfer of £1,891,202 to a new capital head of expenditure within Jersey Property Holdings. The total sum of £2,045,165 is to be allocated as set out in the following table, with £140,570 being retained at programme level as provision for professional fees which the Property Holdings department can request to drawdown and have transferred to budget subject to providing the Fiscal Stimulus Steering Group with full justification of the amount and the nature of costs it is intended to fund:

	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

2. 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 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.

Resource Implications:

No financial resource or manpower resource implications other than those explained above and in the accompanying report.

Action required:

Treasury to be informed of decision to release necessary funds to Jersey Property Holdings and the Health and Social Services Department budgets.

Signature:

Position: Senator P F C Ozouf, Minister for Treasury and Resources

Date Signed:

Date of Decision:

Economic Stimulus Plan: Budget Allocation for Refurbishment of Rosewood House

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

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.