Treasury and Resources
Ministerial/Treasurer’s Decision Report
Allocation of fiscal stimulus funding for refurbishment project at the le pouquelaye school site
- Purpose of Report
The refurbishment works at the former school at Le Pouquelaye will bring the building up to a fit for purpose standard and allow its lease to a third party. This in turn will free up the old Jersey College for Girls site (the “Old JCG Site”) for future sale as well as generate cash for the States in terms of sale proceeds from the Old JCG Site. Tenders have now been returned and assessed by Jersey Property Holdings and the results 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.
- Background
The scheme has been in planning for some time, and was given an amber light approval from the Steering Group after the scheme demonstrated that it complied with fiscal stimulus criteria, and with appropriately specified plans, reflecting the useful life of the building which is not expected to exceed 10 years. The refurbishment will allow the building to provide both a childcare facility and an improved youth centre facility. This maintenance work is designed to address deficiencies in the standard of this States’ owned property and will prolong its life and use. Now that the work has been tendered and the results reviewed, the project has demonstrated that conditions for a green light and allocation of monies to the scheme have been satisfied.
The project will provide work for local business and labour, and is scheduled to be undertaken in 2010, significantly increasing public sector spending and investment in Jersey’s infrastructure.
This paper seeks green light approval for the project.
- Main Content / Subject matter
Tender Process and Results
The cost of the project is £476,673 including fees and contingencies. However, only the main contract has been competitively tendered at the date of this report. JPH has made a decision not to include the interior finishing/decoration works in the main contract as it is felt better value can be achieved by letting this contract separately after the main works have been completed and the necessary internal works are wholly clear, delivering overall a best value for money solution.
As a result an amount of £476,673 should be allocated to Jersey Property Holdings for the project, of which £408,673 will be transferred to the department budget as soon as possible. The remaining £68,000 will be retained at programme level for the internal refurbishment costs which will not be fully scoped until the main contract on the fabric of the building has been completed. When the main contract is completed and the internal works can commence, the Construction and Maintenance Project team will be required to re-approach the Fiscal Stimulus Steering Group with appropriate information on how the internal works will be procured to request release of the remaining project allocation. The allocation of £408,673 now, 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 tender 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.
- Recommendation
Recommendation from the Fiscal Stimulus Steering Group
The Steering Group recommends that the Minister for Treasury and Resources allocates funding of £476,673 to Jersey Property Holdings for the project, with £408,673 to be allocated now and £68,000 to be retained at programme level. The budget allocation to Jersey Property Holdings will be in the amount of £476,673, representing construction costs together with fees and appropriate contingency in order to proceed in accordance with the project’s critical path.
- Reason 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 £473,673 allocation to the project will enable the Construction and Maintenance 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.
No manpower resource implications.