Revenue Maintenance Programme – Expenditure Outturn
Item: 3
Harbour Authority Sub-committee: 25 August 2026.
Miscellaneous Piers and Harbours.
Report by Head of Finance.
1. Overview
1.1
This report presents the expenditure outturn position as at 31 March 2026 in respect of the annual revenue maintenance programme for Miscellaneous Piers and Harbours for financial year 2025/26.
1.2
To demonstrate a focus on maintaining existing assets of the Council and ensuring that our buildings and infrastructure are maintained at levels expected by the Orkney public and that our IT, plant and vehicles achieve modern standards of security, safety and emissions, annual capital improvement and replacement programmes of work are agreed by the relevant service Committee or Sub-committee.
1.3
Delivery of these planned programmes of work are thereafter monitored throughout the financial year by the relevant service Committee or Sub-committee.
1.4
The annual revenue maintenance programme for Miscellaneous Piers and Harbours for financial year 2025/26 was approved by the Harbour Authority Sub-committee on 18 March 2025.
1.5
The table below provides an overview of the expenditure incurred in financial year 2025/26.
| Description | Actual Expenditure at 31 March 2026 | Approved Budget 2025/26 | Overspend/(Underspend) |
|---|---|---|---|
| £000 | £000 | £000 | |
| Major maintenance works at piers | 1,210.2 | 2,738.6 | (1,528.4) |
| Total | 1,210.2 | 2,738.6 | (1,528.4) |
IMAGE: The page is an Orkney Islands Council report headed “Item: 3”, “Harbour Authority Sub-committee: 25 August 2026”, “Miscellaneous Piers and Harbours”, “Revenue Maintenance Programme – Expenditure Outturn” and “Report by Head of Finance”. It includes the Orkney Islands Council crest and the expenditure summary table, showing major maintenance works at piers with actual expenditure of £1,210.2 thousand, an approved budget of £2,738.6 thousand and an underspend of £1,528.4 thousand.
1.6
Appendix 1 to this report provides a detailed breakdown of the approved programme of work for financial year 2025/26, including individual project updates.
2. Recommendations
2.1
It is recommended that members of the Sub-committee:
Note the summary position of expenditure incurred, as at 31 March 2026, against the approved Miscellaneous Piers and Harbours revenue maintenance programme for 2025/26, as detailed in section 1.5 of this report.
Note the detailed analysis of expenditure figures and programme updates in respect of the approved Miscellaneous Piers and Harbours revenue maintenance programme for 2025/26, attached as Appendix 1 to this report.
For Further Information please contact:
Pat Robinson, Service Manager (Accounting), extension 2621, Email: pat.robinson@orkney.gov.uk
Implications of Report
1. Financial
The Financial Regulations state that Directors can incur expenditure within approved revenue and capital budgets. Such expenditure must be in accordance with the Council’s policies and objectives and subject to compliance with the Financial Regulations.
2. Legal
Regular financial monitoring and reporting helps the Council meet its statutory obligation to secure best value.
3. Corporate Governance
In terms of the Scheme of Administration, monitoring, on a quarterly basis, the levels of expenditure incurred against the approved annual revenue maintenance programme for assets held on the Miscellaneous Piers and Harbours account, funded through the approved revenue budget, is referred to the Harbour Authority Sub-committee.
4. Human Resources
N/A.
5. Equalities
Equality Impact Assessment is not required for financial monitoring.
6. Island Communities Impact
Island Communities Impact Assessment is not required for financial monitoring.
7. Links to Council Plan
The proposals in this report support and contribute to improved outcomes for communities as outlined in the following Council Plan strategic priorities:
- ☐ Growing our economy.
- ☐ Strengthening our Communities.
- ☐ Developing our Infrastructure.
- ☐ Transforming our Council.
8. Links to Local Outcomes Improvement Plan
The proposals in this report support and contribute to improved outcomes for communities as outlined in the following Local Outcomes Improvement Plan priorities:
- ☐ Cost of Living.
- ☐ Sustainable Development.
- ☐ Local Equality.
- ☐ Improving Population Health.
9. Environmental and Climate Risk
Where resources allow, improvement works can include ‘greener’ solutions.
10. Risk
Improvement of existing assets can help reduce risks associated with these assets.
11. Procurement
Any contractual arrangements require to comply with the Financial Regulations and Contract Standing Orders.
12. Health and Safety
Well-maintained assets will assist the Council in complying with relevant Health and Safety requirements for both staff and the public.
13. Property and Assets
Included throughout the report and detailed in the Appendix.
14. Information Technology
Up to date IT systems should help reduce risk to the Council.
15. Cost of Living
N/A.
List of Background Papers
Harbour Authority Sub-committee, 18 March 2025, Miscellaneous Piers and Harbours Proposed Revenue Maintenance Programme for 2025/26.
Appendix
Appendix 1 – Miscellaneous Piers and Harbours Revenue Maintenance Programme 2025/26.
Appendix 1
Revenue Repairs and Maintenance Monitoring Report up to 31 March 2026
| Pier / location | Actual Expenditure at 31 March 2026 (£) | Approved Budget 2025/26 (£) | (Underspend)/Overspend (£) | Comments |
|---|---|---|---|---|
| 2024/25 - Retention Due from Previous Projects | ||||
| NI Fender Replacement - Eday and Stronsay | 5,708 | 3,000 | 2,708 | The retention payment has been completed. |
| Kettletoft Pier | 0 | 6,500 | (6,500) | Full costs were incurred in 2024.25. |
| Stromness South Pier Repairs | 0 | 2,800 | (2,800) | Full costs were incurred in 2024.25. |
| Pier Lighting Replacement - Stromness, Burray, Loth and Rapness | 0 | 7,500 | (7,500) | Full costs were incurred in 2024.25. |
| Stromness Walkway and Linkspan Painting | 10,912 | 10,000 | 912 | The retention payment has been completed. |
| Kirkwall Pier Break Tank | 0 | 6,000 | (6,000) | The final payment was made in April 2026 but costs were transferred to capital. |
| Scapa Pier Power Upgrade | 0 | 24,000 | (24,000) | Payment was made in March 2026 but costs transferred to capital. |
| Hydrographic Surveys - Year 4 | 0 | 25,000 | (25,000) | Survey completed at Eday, Rousay, Stronsay, Tingwall, Wyre. Total costs of £29,255 were coded to various piers and not transferred before year-end. |
| Hatston Linkspan Painting | 7,333 | 7,000 | 333 | The retention payment has been completed. |
| Misc Pier Ladders (Kirkwall, Sutherland, Moaness, Shapinsay, Hatston) | 58,170 | 6,000 | 52,170 | The project was extended into 2025, and the associated payments were made accordingly. The project has been completed. |
| Hatston Slip Repairs | 9,556 | 6,800 | 2,756 | The final payment was made in February 2026. Additional works were carried out to prepare it for the Island Games. |
| 2024/25 - Projects (carried over) | ||||
| Hatston Passenger Walkway Painting | 475,428 | 280,000 | 195,428 | Repair and painting works, as well as flooring replacement, have been completed. |
| Pole Star Pier concrete repairs and ladder replacement | 600 | 50,000 | (49,400) | Initial design and specification work has been completed. Further investigation is required, and the work is expected to be carried forward to the next year. |
| Eday Ferry Terminal wave screens, fenders, ladders and timber capsil | 102,667 | 450,000 | (347,333) | Initial design and specification work has started. Some parts are intertwined with the Ferry Replacement Programme and Master Plan Phase 2. It will be carried forward into 2026/27. |
| Stronsay East Pier Repairs | 0 | 75,000 | (75,000) | Combined with the initial inspection work for the Ferry Replacement Programme and Master Plan Phase 2, it was decided to use a third-party multibeam sonar for the investigation. The condition report received. Any further actions will be subject to the final report. It will be carried forward into 2026/27. |
| Rousay Pier surfacing and timber fenders | 1,194 | 100,000 | (98,806) | Some design works started. The construction phase will extend into 2026/27. |
| Longhope Pier Lighting | 8,915 | 75,000 | (66,085) | Design was completed. All materials are in hand and construction will extend into 2026/27. |
| Kirkwall Pier Lighting | 148,209 | 250,000 | (101,791) | Three light columns and 68 lights have been replaced. The project came in under budget. |
| Stronsay Ferry Terminal Lighting | 0 | 100,000 | (100,000) | The project has been incorporated into Stronsay East Pier repair and will be carried forward into 2026/27. |
| 2025/26 - Proposed Projects | ||||
| Holm Pier Repairs | 162 | 80,000 | (79,838) | Client brief has been provided. Designs and drawings have been completed. It will extend into the 2026/27 financial year. |
| Kirkwall North Pier Deck Slabs - quay side by tanker and north berths | 0 | 75,000 | (75,000) | Initial drawings and inspections have been completed by OIC Engineering. This is a two-year project. |
| Coplands Dock fender ladders | 0 | 130,000 | (130,000) | Inspections have been carried out. The works only require modification of the existing ladder, resulting in a lower cost solution. The works will extend into the 2026/27 financial year. |
| Stronsay West Pier Repairs - Investigation / design | 0 | 50,000 | (50,000) | To be carried out as part of the Ferry Replacement Programme. It is expected to commence following receipt of the final report in 2026. |
| Loth Pier deck slabs | 3,511 | 150,000 | (146,489) | Initial drawings and inspection completed by OIC Engineering. The construction phase will extend into 2026/27. |
| Rapness Pier deck slabs | 81 | 175,000 | (174,919) | Initial drawings and inspection completed by OIC Engineering. The construction phase will extend into 2026/27. |
| Scapa Pier, cracked cope beam, sheet piles split, galvanised steps poor. Fendering to corner | 41,853 | 160,000 | (118,147) | The tender for the design work has been carried out. During the initial investigation, a void was observed under the slab, indicating a potential over-budget situation. Diving investigation and concrete coring carried out as a further investigation. Construction phase will be carried out next year. |
| Hatston Weighbridge Control Upgrade as per Stromness 2023 system | 0 | 31,000 | (31,000) | The initial specification work has been completed. Quote received from the original manufacturer. Non Competitive Action (NCA) process has been completed. Installation will extend into 2026/27. |
| 2025/26 - Pier Lighting Upgrades (material supply) | ||||
| Shapinsay | 24,272 | 28,000 | (3,728) | Design has been completed and materials have been received. Work will be carried out in 26.27. |
| Eday | 17,899 | 30,000 | (12,101) | Design has been completed and materials have been ordered. Work will be carried out in 26.27. |
| Tingwall | 23,533 | 20,000 | 3,533 | Design has been completed and materials have been received. Work will be carried out in 26.27. |
| 2025/26 - Maintenance Dredging | ||||
| Stronsay channel dredge | 137,374 | 150,000 | (12,626) | Dredging licence received. Dredging completed. |
| Flotta dredge | 2,879 | 75,000 | (72,121) | Pre-dredge sampling has been completed, the Best Practice Environmental Option (BPEO) report is in hand, and the application has been sent to Marine Licensing Directorate. Tender process and construction phase will extend into 2026/27. The relevant dredging projects have been incorporated into the Minor Capital Improvement – Misc. Piers and Harbours 2026/27 programme. |
| Stromness harbour | 2,920 | 50,000 | (47,080) | Pre-dredge sampling has been completed, the BPEO report is in hand, and the application has been sent to Marine Licensing Directorate. Tender process and construction phase will extend into 2026/27. The relevant dredging projects have been incorporated into the Minor Capital Improvement – Misc. Piers and Harbours 2026/27 programme. |
| Preparation works for following year dredging | 8,071 | 50,000 | (41,930) | Pre dredge sampling carried out for Rousay, Egilsay, and Wyre. Applications were sent to Marine Licensing Directorate. The relevant dredging projects have been incorporated into the Minor Capital Improvement – Misc. Piers and Harbours 2026/27 programme. |
| 2025/26 - Additional Works | ||||
| Houton Marshalling area | 36,816 | 0 | 36,816 | Required construction surveys for the feasibility study of a new marshalling area. |
| Lyness storage area | 29,839 | 0 | 29,839 | Required works for the feasibility study on the best use of the existing building in Lyness. |
| Kirkwall water tank maintenance | 6,382 | 0 | 6,382 | Yearly inspection and maintenance works. |
| Papay pier lighting | 7,600 | 0 | 7,600 | The need for and urgency of the pier lighting improvements were identified during community engagement meetings held as part of the Ferry Replacement Programme and Master Plan Phase 2. |
| Kirkwall linkspan | 9,460 | 0 | 9,460 | Carry out required inspection and load calculation. |
| Shapinsay Pier steps repair | 28,860 | 0 | 28,860 | Carry out necessary repairs to Balfour Pier, |
| Total | 1,210,204 | 2,738,600 | (1,528,396) |
IMAGE: Appendix 1 presents the “Revenue Repairs and Maintenance Monitoring Report up to 31 March 2026” as a detailed table of pier and harbour projects, actual expenditure, approved budgets, underspend or overspend, and project comments. It includes sections for retention due from previous projects, carried-over projects, proposed projects, pier lighting upgrades, maintenance dredging and additional works.
IMAGE: The continuation of Appendix 1 lists the remaining projects, including Rapness Pier deck slabs, Scapa Pier repairs, Hatston weighbridge control upgrade, lighting upgrades at Shapinsay, Eday and Tingwall, maintenance dredging at Stronsay, Flotta and Stromness, preparation works for following-year dredging, and additional works at Houton, Lyness, Kirkwall, Papay and Shapinsay. The total shown is actual expenditure of £1,210,204, an approved budget of £2,738,600 and an underspend of £1,528,396.