Appendix 1: Environmental Operations Change Programme Overview

18/11/2013

Appendix 1: Environmental Operations Change Programme Overview
1. Programme Activities
An Environmental Operations Change Programme Manager has been
appointed in addition to Project Managers for each of the main strands
together with Senior Responsible Owners. This should help manage
interdependencies of activities and risks at both a project and programme
level. Information and mitigation activities arising from this will also be fed into
the Corporate Risk Register as appropriate.
Resource plans are now in place to support Programme delivery and detailed
papers were submitted for endorsement by TEG and EMB in September 2013
as per the recommendation of the June cabinet report. Significant feasibility,
project planning and risk analysis work has also taken place for each of the 5
main project strands.

2. Programme Financial Implications
2.1 Targeted efficiency savings of £2.5M at programme level by 2015/16 are on
track. Detailed plans are in place for savings to be delivered in 2014/15
however further work is planned for those savings which are to be delivered in
2015/16. It is anticipated that the four main project strands will each
contribute significantly to the overall savings target.
2.2 The table below gives an overview of the funding required to deliver the
programme which amounts to approximately £12.4M over a three year period.
The Table Represents Revenue and Capital
Requirements. 1 2 3
Programme Funding Overview 2013-14 2014-15 2015-16 Total
£ £ £ £
Approved Revenue COI Funding 340,000 200,000 - 540,000
Forecast Spend against original funding
which includes Procurement Project 149,500 425,000 250,000 824,500
Further COI required:
Waste & Fleet WOC 332,700 - - 332,700
Waste Strategy 44,500 - - 44,500
Depot Infrastructure - - - -
Programme Level 40,370 60,000 60,000 160,370
Total Revenue COI required (including 567,070 485,000 1,362,070
Page 209
existing budget): 310,000
Variance to Approved Revenue Budget (Bid) 227,070 285,000 310,000 822,070
Capital Spend (currently unfunded) Bid 2013-14 2014-15 2015-16 Total
Depot Infrastructure: North Depot & WTS 50,000 3,500,000 3,450,000 7,000,000
Depot Infrastructure: South Depot & WTS 1,000,000 1,400,000 0 2,400,000
Supplementary Capital Estimate for the
replacement of 20 vehicles 2014/15 2013-14 2014-15 2015-16 Total
Efficiency Project: Fleet 3,000,000 0 3,000,000
Total Capital Required 2,450,000 6,500,000 3,450,000 12,400,000

3. Programme Legal Implications
There are significant legal risks across the project in relation to the Wholly
Owned Company model, the Procurement Strategy and the Depot Infrastructure
Project in particular. These risks are being carefully managed with significant
input from the Corporate Enabler team, particularly Legal Services. Currently
although the risks remain high, these are considered manageable. The main
legal implications remain unchanged from the June 2013 cabinet paper including
the part 2 paper.

4. Programme Risks
Given the sheer scale of change that is proposed in the Environmental
Operations Change Programme, the transformation team will need to balance
business continuity needs with project demands. Business Continuity, Capacity,
Ambitious Timescales, Long Term Viability, Reputation Management, Legal
Challenge, Inability to deliver required cost savings are all risks to be managed
at project and programme level. Careful consideration will be made at
Programme Board level of interdependencies between risks and projects at a
project, programme and corporate level and risks will then be deal with
accordingly.
Page 210