Report to the Cabinet Member for Highways and Transport
Report submitted by: Director of Programmes and Project Management
Date: 9 April 2015
Part I
Electoral Division affected:
Fylde West
Development of Lancashire Highway Services Depot - Singleton
Contact for further information:
Sue Procter, 07795 222841, Director of Programmes and Project Management
sue.procter@lancashire.gov.uk
Executive Summary
Highway operation services for Area North are currently delivered through four
operational depots; Singleton, Caton, Kirkham and Green Lane. These depots are
used to deliver all highways works, grounds maintenance and winter services.
The salt storage facilities at Singleton and Green Lane Depots are inadequate and
investment is required to ensure salt stocks are properly stored and managed.
Efficiency proposals have been developed to improve this facility and allow the
amalgamation of highway services currently delivered through Kirkham, Singleton
and Green Lane to be delivered entirely from Singleton Depot. This will require the
acquisition of land to extend the site, construction of four secure garages and a
purpose built salt dome. This development will allow Highway Operations to move
out of the Kirkham facility (Freehold and shared with TravelCare), and vacate Green
Lane Depot, Garstang.
Planning approval was granted for the extension of the site, the erection of four
garages and a salt dome on 10th December 2014.
The cost of this development will be £679,000 and an initial capital allocation of
£424,000 had been made for this development through the capital programme. It is
proposed that the remaining funding requirement for the project will be met from a
revenue contribution (RCCO) from environment directorate revenue budget
underspends in 2014/15.
It has been established that the most appropriate, functional and economical
structure for the storage of salt at Singleton is a Salt Dome. This is the same design
as has been constructed at Cuerden Depot (Bamber Bridge), and Burnley Depot.
Recommendation
The Cabinet Member for Highways and Transport is asked to:
(i) Approve the development of Singleton Depot to take place as described in
this report ahead of the 2015/16 winter season,
(ii) Approve the increase in the capital allocation for this project to £679,000,
funded as outlined in the report.
Background and Advice
The salt storage facilities at Singleton and Green Lane (Garstang) depots are
inadequate and investment is required to ensure that salt stocks can be properly
stored and managed. The development of a Salt Dome storage facility at Singleton
Depot creates the opportunity to combine all winter services and highway operations
from a single depot serving the Fylde coast.
This development would include the extension of the site, the construction of four
garages and a salt dome at a total estimated cost of £ £679,000. The original scope
of works and the indicative estimate prepared in 2014 (£596,000) have now been
revised to include an additional garage, roller shutter doors and all fees and charges.
This will enable the release of the Green Lane depot site for disposal. The grounds
maintenance service will also be moved from premises it currently shares with
TravelCare at Kirkham. These actions, together with a range of operational
efficiencies made possible by the combination of services and salt stores, will realise
an annual revenue saving of at least £137,000.
The current salt storage arrangements at Green Lane depot need to be improved to
avoid contamination. The estimated cost of the work which predominantly involves
construction of a wall is £30,000. This capital cost would not be required if Green
Lane were vacated.
Planning permission was granted on 3rd September 2014 for the retention of the
temporary office unit and external ramps currently in use at Singleton Depot. This
extension is for a period of five years. Two further planning applications were
approved on 10th December 2014. The first of these is for the construction of a salt
dome and four additional garage buildings, the second one relates to the extension
of the site into the adjoining agricultural land. The planning permissions include
requirements for screening planting to be included within the final scheme; these
costs have been included in the revised estimate of £679,000.
Terms for the acquisition of the land for the extension of the site have been agreed,
pending completion of the sale as soon as possible after the 5 th April 2015. The
estimate for the project has been amended to take account of the negotiated price;
however there remains an element of risk associated with this price until the sale is
completed.
If approval is given for this project to proceed, development will take place over three
phases:



Phase1: Salt Dome: procurement process would begin as soon as the land
acquisition agreement is in place. On site construction would begin at the end
of the 2014/15 winter season.
Phase 2: Site Extension: this would create the space and flexibility on site to
allow the garage construction to take place.
Phase 3: Construction of four garages.
Additional benefits
In addition to the revenue savings and avoided costs that can be achieved through
this project, there are a number of non-cashable benefits that will also be delivered:








Increased safety in the operational depot at Singleton – currently at full capacity.
Increased safety and improved working conditions from the provision of covered
salt storage.
Provision of a salt dome provides salt storage on a smaller footprint than a
sheeted pile and therefore increases depot space for other activity.
No likelihood of wind blown salt damage to adjacent farmland if a dome is
constructed. Claims for loss of crops have been a regular occurrence and a
substantial area of woodland and farmland has been damaged.
Full compliance with salt storage guidance and regulations.
Fully integrated operational delivery for this geographical area, combining
Structures and Grounds Maintenance teams with the existing highway teams
resulting in more efficient working.
Winter Service route optimisations for area enhanced as all routes will run from
Singleton.
Vacation of the Green Lane operational depot will avoid any further issues with
residential neighbours.
All of these benefits will improve the efficiency and effectiveness of service delivery
and continue to ensure the safety of the workforce and those visiting and using the
depot.
Salt Dome Procurement
Following extensive discussions and consultations with Highway Operations and
Development Control officers, it was agreed that the optimum salt storage solution
for the Singleton site was a domed storage structure. Planning permission was
granted on this basis.
Domes have been successfully employed at County Council highways depots in
Cuerden and Burnley since 2008, and this is the preferred and most efficient method
of salt storage and distribution. It is a tried and tested solution that offers improved
storage and operational efficiency with greater sustainability and reduced carbon
footprint over a traditional barn.
There is currently a single provider of salt domes operating within the UK and it is
proposed that a request would be made to waive Standing Orders and approve the
negotiation of a single tender with the provider. A report has been prepared for the
County Council's Deputy Leader making this recommendation.
Consultations
N/A.
Implications:
This item has the following implications, as indicated:
Risk management
The current salt storage arrangements at Singleton and Green Lane are inadequate
and lead to a number of operational issues, including the loss and contamination of
salt stocks. Guidance contained within Appendix 'H' of Well Maintained Highways –
Code of Practice emphasises the importance of storing salt in conditions that
maintain its quality, especially in relation to moisture content. Provision of a salt
dome will ensure compliance with the Code of Practice.
There are a number of 'good neighbour' issues associated with the location of Green
Lane Depot within a predominantly residential area. These would be resolved by the
re-location of operational services to Singleton.
The operational delivery of winter service will be severely compromised if
development works were to take place within the winter season, it is therefore
essential that all works are completed before October 2015.
The integration of services at Singleton will facilitate the move of the Grounds
Maintenance teams out of their current location at Kirkham. This will achieve
operational efficiencies for Highway Operations. However, it should be noted that
TravelCare will remain at the Kirkham site which will prevent the release of the site
and property running costs will remain constant.
Both the acquisition of the land and the potential disposal of the Green Lane site are
potential risks for the authority. In particular the timescales for the acquisition may
slip if the tenant does not vacate the land as required, there is also no certainty
relating to the timescale or actual capital receipt for the Green Lane site.
Financial
The cost of the project is estimated at £679,000. An initial capital allocation of
£424,000 has been made available for the delivery of this project within the
Environment Directorate's approved capital programme, the original indicative
estimate for the project was £596,000. Further work has now been done to develop
an accurate estimate taking account of a number of refinements to the plan including
the provision of an additional garage, roller shutter doors for security, screening
(planning requirement) and the preliminaries, professional fees, contingencies and
charges. This estimate also takes account of the recently agreed terms for the
acquisition of the land required for the extension. There is a risk associated with this
until the sale has been completed and the price confirmed.
To bridge the shortfall of £255,000 the Cabinet Member is requested to approve a
revenue contribution (RCCO) from the underspend in the environment directorate's
2014/15 revenue budget.
It should be noted that the County Council's recently approved budget strategy and
service offers do not currently assume any revenue savings arising from this
proposal. The revenue savings arising from this scheme will therefore be available
to contribute towards the further savings required in the county council's financial
strategy.
Property Asset Management
The development of Singleton Depot will facilitate the disposal of Green Lane Depot.
Grounds maintenance services will be moved from the Kirkham location in to
Singleton, but Travel Care will remain within the Kirkham site.
List of Background Papers
Paper
Date
Contact/Directorate/Tel
Planning Permission
LCC/2014/0099
3.9.2014
Published
Planning Permission
LCC/2014/0126
10.12.2014
Published
Planning Permission
LCC/2014/0104
10.12.2014
Published
Reason for inclusion in Part II, if appropriate
N/A