Economic Stimulus Plan: Budget allocation to Housing relating to building maintenance

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A decision made 14 June 2010 regarding: Economic Stimulus Plan: Budget allocation to Housing relating to building maintenance.

Decision Reference: MD-TR-2010-0087
Decision Summary Title:	Fiscal Stimulus Budget Allocation – Housing Department		Date of Decision Summary:	7th June 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:	Allocation of fiscal stimulus funding for various backlog maintenance projects at social housing estates		Date of Written Report:	7th June 2010
Written Report Author:	Acting Fiscal Stimulus Programme Manager		Written Report : Public or Exempt?	Public
Subject: Economic Stimulus Plan: budget allocation to the Housing department for the delivery of building maintenance works at social housing estates.
Decision(s): The Minister approved the allocation of £637,000 for the projects set out in the attached report, to be transferred to its budget as soon as possible. This will enable the contracts to be let to the contractors who submitted the preferred tenders. The Minister 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 projects.
Reason(s) for Decision: A discretionary fiscal stimulus allocation from the Stabilisation Fund of £44m has already been approved. The projects meet the key criteria for fiscal stimulus being timely, targeted and temporary and will benefit local business and individuals. The £637,000 allocation to the projects will enable the Construction and Maintenance project group to continue the backlog maintenance programme in accordance with its 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 Housing department’s budget.
Signature:		Position: Senator P F C Ozouf, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Economic Stimulus Plan: Budget allocation to Housing relating to building maintenance

Treasury and Resources

Ministerial Decision Report

Allocation of fiscal stimulus funding for various Backlog Maintenance projects at social housing estates

1. Purpose of Report

Tenders for various maintenance projects to be undertaken at social housing estates have now been received and evaluated by the Housing department. The tender returns have been subject to review by the Fiscal Stimulus Steering Group (the “Steering Group”) to ensure that the Fiscal Stimulus criteria continue to be met. This paper summarises the resulting recommendation.

2. Background

A programme of backlog maintenance projects to be undertaken by the Housing department is included in the Treasury and Resources Minister’s “amber light” programme of fiscal stimulus projects. The backlog maintenance projects are designed to address deficiencies in standards across the social housing portfolio and bring the properties up to standard. The work was already planned but without the Discretionary Fiscal Stimulus, it would have had to be delivered over a longer time period in order to meet funding constraints.

All these projects will provide work for local business and labour, and are programmed to be undertaken substantially in 2010, significantly increasing public sector spending and investment in social housing stock.

This paper seeks green light approval for the projects set out in Section 3 for which tenders have been returned and evaluated by the Housing department. The work being undertaken at each of the sites is roof replacement, upgrading of windows and/or doors, or a combination of the three work types.

3. Tender Process and Results

Estate	Project	Green light amount £
Great Union Road	Window and door replacement	18,200
Pre de Talbot	Roof replacement	233,750
St Georges	Roof replacement	199,800
Town Mills	Roof replacement	185,250
TOTAL		637,000

The cost of the projects, including clerk of works fees and appropriate contingency is £637,000. Any unspent monies in relation to the scheme, including contingencies, are required to be returned to the fiscal stimulus programme on completion of the respective projects.

The Housing department has followed a pre-determined process in conducting the tenders which they confirm to be compliant with Financial Directions and Procurement Principles for the Fiscal Stimulus Programme. The process and outcomes have been subject to review by the Steering Group, which has resulted in the recommendation below.

4. Recommendation from the Fiscal Stimulus Steering Group

The Steering Group recommends that the Minister for Treasury and Resources allocates funding of £637,000 to the Housing department for delivery of the projects. The budget allocation to the Housing department will be in the amount of £637,000, representing construction costs and appropriate contingency in order to proceed in accordance with the critical path of the projects.

5. Reason for Decision

A discretionary fiscal stimulus allocation from the Stabilisation Fund of £44m has already been approved. The projects meet the key criteria for fiscal stimulus being timely, targeted and temporary and will benefit local business and individuals. The £637,000 allocation to the projects will enable the Construction and Maintenance project group to let the contracts and deliver the scheme in accordance with the programme.

6. Resource Implications

No financial resource implications other than those explained above.

No manpower resource implications.

Report author : Acting Fiscal Stimulus Programme Manager	Document date : 7th June 2010
Quality Assurance / Review : Business Manager	File name and path: l:\treasury\sections\corporate finance\ministerial decisions\dss, wrs and sds\2010-0087 - fiscal stimulus allocation housing maintenance projects - hmg\wr - fiscal stimulus funding to housing maintenance project - slj.doc
MD sponsor : Interim Treasurer of the States

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