Page 1 Agenda Item 7

MUNICIPAL YEAR 2009/2010 REPORT NO. 158 Agenda – Part: 1 Item 7 MEETING TITLE AND DATE Cabinet – 16 December 2009 Subject: Outline Business Case – Oasis Hadley

REPORT OF: Wards: The Co Director of Education, Children’s Services and Leisure Cabinet Member consulted: Councillor Michael Rye

Contact officer: Jennifer Hill, Assistant Director of Education, Children’s Services and Leisure Tel: 020 8379 4910 E mail: [email protected]

1. EXECUTIVE SUMMARY

An Expression of Interest was submitted by the Council and Oasis Community Learning (OCL) to the Department for Children, Schools and Families (DCSF) in February 2008 for an Academy to replace Albany School. The DCSF subsequently released feasibility funding to develop the proposal further. OCL in partnership with the Council conducted consultation regarding the establishment of the proposed academy on the current Albany School site in Bell Lane, the closure of the existing and the proposal to eventually transfer to Ponders End. Subsequently the Council undertook statutory consultation with key stakeholders and notification of the closure of Albany School was reported in KD2794: Investment in Albany School: Consultation on Re-opening as an Academy and Formal Closure..

The Funding Agreement between OCL and the DCSF was signed in August 2009, and on the 1 st September, the Academy, known as Oasis Academy Hadley, opened in the buildings of the Albany school, which formally closed on August 31 st . The Council is responsible for the procurement of the site and new buildings for the Oasis Academy. Cabinet in September 2008 gave approval to purchase the new site in South Street Ponders End. This will enable the provision of purpose built accommodation for the Academy from September 2012,that will deliver better outcomes not just for the student body and staff but also the wider community in Ponders End. The Outline Business Case (OBC) is the key document which must be submitted to Partnerships for Schools (PfS) to gain formal approval for the Oasis Academy Hadley project to move into procurement. The business case details the project in terms of vision, site, programme, finance, consultation and deliverability.

It is proposed to submit the Outline Business Case for Approval in January 2010 and this report lays out the reasons for this submission and seeks approval to do so.

The OBC will be reviewed by PfS to ensure that the project being proposed reflects the vision set out in the Expression of Interest, is affordable, offers value for money and will attract market interest and that the local authority is sufficiently resourced to deliver the procurement.

School Albany/Academy/Reports May 2009 Oasis Academy Hadley OBC Cabinet Report 2786jhhb Updated 14.12.09

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Once approval of the OBC has been granted, the Council will be required to approach PfS’ National Framework of building contractors with the scheme brief, and enter a process of Local Competition, to select two contractors for a design contest, held in partnership with OCL and the Academy. This competition will select a construction partner to provide further detailed designs and submit a planning application: the appointment will be the subject of a separate member decision.

2. RECOMMENDATIONS

2.1. That the Council in partnership with Oasis Community Learning Trust submit the OBC to Partnerships for Schools to progress procurement of the Academy estate and draw down the related funding.

2.2. That delegated authority be given to the Co-Directors for Education, Children’s Services and Leisure in consultation with the Cabinet Member for Education and Children’s Service and Youth, to produce the final drafts of the OBC and submit these to Partnerships for Schools.

2.3. That the financial implications and its affordability be subject to the approval of the Director of Finance and Corporate Resources as the Council’s Finance Control Officer (Defined by Accounts and Audit Regulations 2003) as required by Section 151 of the Local Government Act 1972.

2.4 That the funding of improvements to the pedestrian and cycle routes is considered as part of the Council’s capital programme.

3. BACKGROUND

3.1 At its meeting on 17 January 2008 Cabinet received a report proposing that in order to meet the need for substantial capital investment at Albany School, to address building deficiencies and to promote pupil achievement, an Expression of Interest for an Academy to replace Albany School should be submitted by the Council and Oasis Community Learning Trust (OCL). Cabinet agreed that an Expression of Interest, including a variant to explore the potential options for and benefits of relocation, should be submitted to the Department for Children, Schools and Families.

3.2 The Expression of Interest developed by the Council, OCL and the school was submitted to the DCSF on 12 February 2008. On 26 February the DCSF agreed to release feasibility funding to enable the Council and OCL to develop the proposal further.

3.3 Albany School was sited in Enfield Highway ward, in Bell Lane, EN3 5PA, and was replaced by the proposed Oasis Academy Hadley in September 2009. During early discussions about the project it became clear that while the proposed Academy would open in the current School Albany/Academy/Reports May 2009 Oasis Academy Hadley OBC Cabinet Report 2786jhhb Updated 14.12.09

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buildings, there might be advantages in subsequently relocating the Academy to a new site in order to establish it at the heart of a local community and to provide all-age provision including primary places in line with the Council’s draft document, Enfield Schools for the Future: Draft Strategy for Change.

3.4 This view is held by the proposed sponsor (OCL) who considers that a new site would help to forge the identity of the new school. Relocation will be of potential benefit to the local community enabling the Academy to provide services in a neighbourhood that currently has less access to secondary school places and other community services: in turn the school will benefit from strong community links. It will also avoid the potential difficulty of delivering the school curriculum whilst a substantial building programme is on site.

3.5 Through the Cabinet approval in September 2008 the alternative National Grid site in South Street, Ponders End, was agreed as this new site meets the essential criteria for the situation of a large all-age Academy. National Grid has confirmed their willingness to negotiate a disposal to the Council on agreed terms and within a timescale broadly consistent with the development of the Academy. The acquisition of the site is currently progressing with the view of exchanging contracts in December 2009. The target date for the completion of building work for new buildings on the new South Street site is September 2012.

3.6 Ponders End is subject to a wider development strategy following the adoption of the Local Development Framework Core Strategy and North East Enfield Area Action Plan (NEEAAP). These strategies are lead by an innovative Place Shaping initiative which will integrate and coordinate environmental, economic and social improvement in Ponders End in future years. In October 2008 the Council appointed a multidisciplinary team to prepare an Urban Design Framework for Growth in Ponders End, which sets out an integrated design vision for the area, incorporating local needs and aspirations. This document has in turn led to further investigation of three particular sites in Ponders End, one of which is the ‘South Street Campus’, incorporating the National Grid site. A Draft Planning Brief for the area, including high level plans for the Academy and PRU location, has been submitted by Place Shaping for external and internal consultation, which will end in October. The Academy and Place Shaping project teams will work together to ensure that the aspirations of both parties and Oasis can be developed over the procurement programme.

3.7 The site adjoins the Ponders End Youth Centre and Welcome Point community hall and the proposals include incorporating a new build Pupil Referral Unit (PRU), funded as part of the Building Schools for the Future (BSF) scheme, which we are seeking approval to procure as part of the Academy scheme.

The proposals would also include reprovision of any Housing Revenue Account (HRA) property in a manner that would compliment the existing facilities and the wider estate. The development of the School Albany/Academy/Reports May 2009 Oasis Academy Hadley OBC Cabinet Report 2786jhhb Updated 14.12.09

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buildings in close proximity to Welcome Point, Community Centre will be managed in as considerate manner as possible to minimise the impact on users. If any opportunities arise for developing the accommodation available as a result of this project they will be discussed with the management committee.

3.8 The proposed PRU will provide a new build integrated centre on the new South Street Academy site, combined with a replacement Youth Centre, creating a purpose-built facility for the young people in the area and for those students requiring the additional educational support of a Behaviour Support Centre. The building would also be sympathetic to the need to link with other partners and organisations to provide a self- contained centre offering a wide range of services, which would be brought direct to the client group. Both services would benefit from a building that would not only provide appropriate spaces to educate and train, but also deliver a wide range of information imperative to help young people to make informed choices. The building will inspire, engage and focus the client group.

This part of the proposal will make the optimum use of all spaces where appropriate, which will provide the very best facilities for the students during the day and for the young people using the Youth Centre in the evenings, weekends and school holidays, and the re- provision of high quality youth and community facilities would be consistent with the Council’s Place Shaping priorities. The scheme aims to involve the young people who will use the school, PRU and Youth Centre to be involved in the design through the Design Quality Indicators process. There is a commitment to providing a youth centre on the site throughout the construction phase.

3.9 The proposal also includes the incorporation of two-form entry primary provision (funded through the LA capital programme agreed in February 2009) into the Academy. This will enable the Academy to be an all age school and addresses the most recent pupil number projections, which indicate a large shortfall of places in the Ponders End area. Much of the proposed additional residential development included in the North East Enfield Area Action Plan within the Local Development Framework is centered on the Ponders End area, and will put further pressure on school places over and above that indicated by the latest projections. The proposed primary element of the Academy will help to address the projected continued local demand for school places.

3.10 The second PfS National Framework currently comprises twelve large national building contractors, all of whom have in–depth experience in the Design and Build of large school, college and Academy estates. The Framework is a design and build procurement programme whereby a local selection and competition process is conducted to select a ‘Preferred Bidder’ who will work with the Council and OCL to deliver the estate. The Framework is based on set prices agreed between PfS and the bidders, and hence there is a heavily reduced risk that the cost of any project will move out of the set funding. School Albany/Academy/Reports May 2009 Oasis Academy Hadley OBC Cabinet Report 2786jhhb Updated 14.12.09

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3.11 Prior to approaching the Framework with details of the scheme, PfS require that an Outline Business Case (OBC) is drafted and submitted for review by themselves and the DCSF. The main aims of the OBC are to define all elements of the scheme, reduce risks to all parties, and fix the appropriate level of funding. Once agreed, the funding at the OBC stage is then fixed, and includes inflation to the predicted date of the start of construction.

3.12 The OBC is made up of the following sections:

• Overview and Council commitment (demonstrating the overall strategy behind the Academy proposal, and the way the Hadley Academy will sit in the wider Enfield estate) • Procurement Strategy (detailing the programme for the procurement) • Design and Construction (detailing the preferred control option for the site, and demonstrating all site conditions and considerations) • ICT (proposing the procurement and management of the ICT systems used in the estate) • Facilities Management (proposing the strategy for the management and maintenance of the estate) • Affordability (detailing the initial cost assessments made by the Council and how these relate to the funding available) • Readiness to Deliver (setting out the consultation and preparation that has been carried out to date) • Moving forward (proposing the start of the procurement)

The OBC (and its appendices) is made up of contributions from many stakeholders, and is also approved by the Academy Design Group. The document will be thoroughly interrogated by the bidders on the National Framework, and will be the basis of the solutions that are put forward for the development of the Academy estate.

4. ALTERNATIVE OPTIONS CONSIDERED

If the Local Authority withdrew from the proposed Academy scheme this would result in the LA being liable for all costs incurred to date in relation to the new build Academy including the purchase of the Ponders End site. The terms being agreed with National Grid include an overage clause if the site is not developed for educational purposes. The funding offered by Partnerships for Schools is linked to the Academy provision, and PfS would not allow any dispensation to the Council to use the funding outside of the PfS National Framework. Hence the Council is obliged to draft and submit the outline business case. Were the National Grid site acquisition to fail, the Academy could be developed at the site of Albany school, but this would still necessitate the submission of the OBC to PfS. If primary provision were not to be provided at the Academy it would be necessary to find

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an alternative site in the area in order to meet the Council’s statutory duty to provide school places.

5. REASONS FOR RECOMMENDATIONS

The OBC submission and consequent approvals will lock the funding for the Academy scheme and will give permission to proceed to procurement. This provides the opportunity for substantial capital investment in the school to address building deficiencies and to promote pupil achievement. This report explores the potential benefits of proceeding with OBC submission.

6. COMMENTS OF THE DIRECTOR OF FINANCE AND CORPORATE RESOURCES AND OTHER DEPARTMENTS

6.1 Financial Implications

6.1.1 The Partnerships for Schools Funding Allocation Model (FAM) allocates £24.484.m for the secondary element of the Academy (which includes £2.15m for ICT hardware and £0.587m for carbon reduction works). This is supplemented by £8m of capital resources from the Council for the primary element and £2.362m of resources from the BSF funding allocation for the PRU. which will be confirmed once joint procurement is approved by PfS. These prices are based on current predictions of cost at the start of construction.

6.1.2 This FAM was created in line with PfS guidelines and therefore based on the current Albany school site. The allocation of new build to refurbishment funding follows a condition assessment at Albany School, and is set at 75% new build and 25% refurbishment. The LA’s decision to build the school on newly remediated National Grid site in the appropriate location creates a requirement for 100% newly built facilities. Following the creation of a shadow FAM to show the 100% new build costs, it is estimated that there is a potential funding shortfall of £3.192m on this element.

6.1.3 The Council approached PfS and the DCSF to question whether the FAM could be adjusted to show 100% new build, in consideration of the large capital outlay being directed towards the primary element and acquisition of the National Grid site, which was encouraged by the DCSF. PfS replied that as the Albany estate may be being considered as an asset for the purposes of BSF, they would not adjust the funding allocation of £24.484m.

6.1.4 Part of the new buildings need to be located on land that is currently held for housing purposes in the Housing Revenue Account. Under local authority accounting rules the use of housing land for non-housing purposes must be recognised by transferring the borrowing costs on half the value of the land from the General Fund to the housing Revenue Account. The Director of Place Shaping and Enterprise has given a valuation of £350k for the land concerned, which means that the borrowing costs on £175k needs to be transferred. By the nature of School Albany/Academy/Reports May 2009 Oasis Academy Hadley OBC Cabinet Report 2786jhhb Updated 14.12.09

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the way in which this transaction must be accounted for, i.e. by the transfer of the revenue borrowing costs, the Council’s capital contribution to the scheme will be reduced by £175k from £8m to £7.825m. This will ensure that there is no additional cost falling on the General Fund compared to the amount currently approved

6.1.5 The funding summary is attached at Appendix A, which shows that the capital construction of the project is affordable. The current state of the construction marketplace shows that extremely good value is being gained from supply chains in all regions. The Section 151 letter which needs to be signed by the Director of Finance and Corporate Resources is attached at Appendix B

6.1.6 Section 6.7 below refers to the cost of improvements to pedestrian and cycle routes in the area, these proposal will give the Council the opportunity to provide additional spending of £1m for works plus the possible cost of some compulsory purchases. Funding for this will be considered as part of the Council’s capital programme.

6.1.7 Due to its intended use LBE will not opt to tax the site for VAT purposes and so the Council’s ability to recover any input VAT incurred in the construction of the Academy will not be affected. This is on condition that the academy does not make any contribution towards the costs of the works from their own resources, which could be deemed by Her Majesty’s Revenue and Customs as being a contribution towards the cost of occupying to site.

6.2 Risk Management Implications

6.2.1 The strategic risk for the proposals to replace the current Albany School buildings with purpose built new accommodation is that the capital and other investment accessed in this manner fails to promote pupil achievement. The joint Project Steering Group comprising the school, Council, OCL and DCSF is managing this risk. Actions include the appointment of education consultations to develop the curriculum and the current proposals to move to a new site.

6.2.2 In relation to the acquisition of the site in Ponders End the key risks appear to be the timescale for remediation which could delay the date for vacant possession of the site: there is also a possibility that the National Grid does not agree to the sale or delays its decision for some reason, although this is looking increasingly unlikely.

6.2.3 Failure to gain approval for the OBC and consequent release of capital funding to build the new school by the DCSF will result in a delay to the programme for the development of the Academy. As with any new building there are a series of uncertainties that could impact on the timeliness and cost of building the new school. Specific complexities stem from the aspiration to incorporate a primary school and to re- provide youth and community facilities as part of the development.

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6.2.4 There are three main financial areas of risk associated with the proposal. The first is to the project in general, in that if the above site complications were to occur and construction were to be delayed post OBC, the project would suffer any inflationary cost pressures subject to market risk. Secondly, there are various financial risks to the Council within the building contract. These will be reviewed in more detail when the Final Business Case for the development is reviewed by Cabinet.

6.2.5 In the event that it does not prove possible to finalise the OBC we would have to provide the new buildings on the current Albany site, and draft a new business case for this project submitted. All other risks will be identified and managed as part of the project structure being put in place by the Council, DCSF, Partnerships for Schools, and OCL. Regular reports will be made to Members.

6.2.6 In relation to sustainability, the criteria for the selection of the site included proximity to a residential area and good public transport links to reduce the environmental impact of travel. The new building will be constructed to satisfy the ‘very good’ or ‘excellent’ BREEAM criteria, and will represent a material improvement in energy use compared with the current Albany buildings, which will also present whole-life cost savings to the Academy.

6.2.7 The Councils Building Schools for the Future (BSF) proposals include the setting up of a Local Education Partnership (LEP). The LEP is a bespoke delivery vehicle for a local BSF programme within a defined geographical area, whereby a private sector consortium (including all the skills and services required to deliver the local authority's BSF vision) comes together in a formal partnership with the local authority and BSFI (a sister company to PfS), after Financial Close. Through the LEP, the Council is able to procure wider local services beyond secondary schools, including primary schools, healthcare and leisure facilities. With the removal of the funding for the Pupil Referral Unit being taken from the BSF and added to this Academy scheme it may make the LEP less attractive to potential partners. This risk has been identified and is being managed by the BSF Team as referenced in the Cabinet Report:" Building Schools for the Future (BSF), Local Education Partnership (LEP) and BSF Project Development Funding."

6.3 Legal Implications

The two agreements which must be signed as part of the process are a Confidentiality Agreement protecting the commercially sensitive cost information released by the bidders, and also a Memorandum of Understanding regarding adherence to the process. Both documents are standard forms from Partnerships for Schools, designed to ensure a fair process, and present minimal risk to the Council.

The Council is only legally tied to the procurement of the buildings (and hence contractual risk) on the signature of the Design and Build Contract for the scheme. However, the Council must agree as part of School Albany/Academy/Reports May 2009 Oasis Academy Hadley OBC Cabinet Report 2786jhhb Updated 14.12.09

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the process that it will utilise the PfS standard form of Development Agreement, Long Lease and Building Contract. These have already been reviewed by LBE appointed solicitors, and have been deemed largely acceptable. The elements which will need to be altered concern the existence of the community buildings and PRU on the estate. There may also be derogations around the handover of the site from National Grid to the selected building contractor. After the selection of this ‘preferred bidder’ the legal documentation for the scheme will be prepared and included as an annex to the Final Business Case.

6.4 Property Implications

All Property Implications are dealt with within the body of this report.

6.5 Performance Management Implications

The development of new accommodation for the Oasis Academy Hadley is intended to promote pupil achievement including improvements in GCSE and post-16 attainment levels for all pupils and improvements to ‘narrow the gap’ for students from low attaining groups. The key performance goals for the project are indicated in the Expression of Interest for the Academy, as submitted to the DCSF and also to provide secondary and additional primary places in the required area.

The PRU have continued to improve results year on year even though has commented that the deficiencies of the building severely hamper attainment and performance. The new buildings will allow the PRU to continue to improve GCSE results, and will provide facilities for those students seeking recognised vocational qualifications. This will also increase the number of students who can be re-integrated into mainstream and will reduce the number of students who fall under the NEET category on leaving the PRU.

As identified in the draft Youth Strategy 2009-2012, the provision of improved youth centre facilities in Ponders End has been identified as a key strategy. There are many benefits to locating the Youth Centre alongside the PRU as this will provide multiple opportunities to share resources and facilities. The development of the Youth Centre building and links with the PRU will enable the Youth Service to offer informal education opportunities, community involvement and to target particular youth groups, particularly the more vulnerable. Progress will be regularly monitored and assessed by the Children's Trust Strategic Commissioning Group.

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6.6 Community Implications

The purpose of the proposed development is to promote pupil achievement for all pupils and to ‘narrow the gap’ in attainment levels for students from low attaining groups. The proposed sponsor is committed to a fully inclusive approach which would be reflected in school policies including the admissions policy and staff recruitment policies. OCL is also committed to provide a hub for the community providing access to a wide range of services. The new building will include around 15,000m2 of accommodation, with a considerable proportion accessible to the community: catering, entertainment, sports and leisure facilities. Working in tandem with the Place Shaping initiatives mentioned at 3.6 above, the Academy proposal has the potential to be a major part of the significant and long-term change and investment programme to make Ponders End more attractive to its community.

The scheme also looks to provide new accommodation with needs-lead fixtures and equipment for the Ponders End Youth Centre for use by the local community.

The development close to Welcome Point will be managed to minimise the impact on users. Any opportunities that arise for joint working with any possibilities of developing the accommodation available to the community centre as a result of this project will be discussed and fully explored with the management committee.

6.7 Traffic, Transportation and Highway Implications

A comprehensive Transport Assessment (TA) of the Academy proposals has been undertaken by a specialist consultant. This TA examined the existing traffic conditions on the local road network, pedestrian/cycle facilities, access to public transport, and the road accident record. The TA has used projected traffic volumes in 2012.

The study then examined the number of trips likely to be generated by each of the components of the scheme, i.e. the primary aged pupils/staff, the secondary aged pupils/staff and the pupil referral unit (PRU). A supplementary technical note was provided in relation to the primary provision of alternative sites.

The report confirms that access to the site by bus is currently relatively poor; pedestrian/cycle routes to the site are limited; and that certain key junctions (in particular the two nearest signal controlled intersections) are currently over capacity and therefore suffer from significant levels of congestion during peak hours.

The traffic generated by the scheme is predicted to lead to additional congestion of the South Street/High Street/Lincoln Road junction and at the A1010/A110 junction (Nags Head Road/Southbury Road/Hertford Road). The traffic impact on the network of the scheme is mainly due School Albany/Academy/Reports May 2009 Oasis Academy Hadley OBC Cabinet Report 2786jhhb Updated 14.12.09

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to the primary aged pupils as unlike the secondary school movements which are already on the network these are wholly new. The traffic movements generated by the PRU will have minimal impact due to its hours of operation outside the main travel period. The supplementary note indicated that in comparison with an alternative option to provide the primary places on the current Oasis Academy Hadley site, the South Street site would have marginally less impact on the highway network as a whole. However, the impact on the junction of South Street and High Street will be greater but not to a discernible extent.

The TA has identified limited physical changes to the network which will mitigate the identified growth of traffic in terms of capacity improvements. There is however scope to reduce car use through the careful application of school travel plans for both pupils and teachers, with teachers arriving before and leaving after pupils and the application of a very tight primary school catchment area. There will also be a requirement to review the need to introduce time- limited parking controls in street immediately boarding the site.

Footway widening and better access/crossing facilities on approach routes will be required to meet expected standards and to aid the safety of children going to and from the area. Officers from Highway Services have reviewed the highway infrastructure around the proposed site and have identified the opportunity to introduce improvements to the highway network of approximately £1m for highway resurfacing, footway widening, landscape improvements and extensions of the local cycling network. To achieve this end there may be a need for the Council to CPO small pieces of land along South Street. The potential increase in demand for children to cross the High Street will require that a safe crossing facility be introduced.

The impact on the highway network will increase if additional sites in the area are brought forward for development. It will therefore be necessary to undertake a corridor review of the Hertford Road and Southbury Road.

In conclusion the TA found that there were negligible traffic implications on the highway network in relation to both the introduction of the PRU or the secondary aged school pupils on the site. The TA identifies the primary aged sector of the new site as being responsible for the additional traffic journeys. The South Street site had, however, a lesser impact on the overall highway network: the impact on the South Street /High Street junction would be greater but not to a discernable extent. Ultimately the scheme will be considered by the Planning Committee.

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7. PUTTING ENFIELD FIRST Aim 2: High Quality Education and Lifelong Learning

Background Papers KD2597 – To Determine the preferred option for the location of an Academy to replace Albany School.

KD2792 – Investment in Albany School: Consultation on the reopening as an academy & formal closure

Cabinet Report – School Organisation Proposals: Formal closure of Albany School (non Key)

Oasis Academy Ponders End Transport Assessment December 2009

School Albany/Academy/Reports May 2009 Oasis Academy Hadley OBC Cabinet Report 2786jhhb Updated 14.12.09

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Appendix A

Oasis Academy Hadley and South Street PRU - Overall Cost Summary

LA Category FAM Contribution LA Estimate Variance PRIMARY SCHOOL Construction Costs 0 3,262,694 External Works 0 391,523 Abnormals 0 163,135 Fees 0 477,169 Inflation to Start 0 -102,251 FFE 0 544,953 ICT Infrastructure 0 94,500 Group Element Total 0 7,825,000 4,831,724 -2,993,276

SECONDARY Construction Costs 15,473,443 17,826,155 External Works 1,780,157 2,039,139 Abnormals 850,328 891,308 Fees 2,319,046 2,607,075 Inflation to Start -486,261 -558,659 FFE 1,474,643 1,798,346 ICT Infrastructure 334,125 334,125 Group Element Total 21,745,481 0 24,937,488 3,192,007

PRU Construction Costs 2,866,959 3,305,469 External Works 306,184 396,656 Abnormals 181,199 165,273 Fees 446,971 483,425 Inflation to Start -148,489 -103,591 FFE 82,426 121,101 FFE - Youth Centre 0 25,000 ICT Infrastructure 22,500 134,560 Group Element Total 3,757,750 0 4,527,893 770,143

ADDITIONAL ELEMENTS Community multi use games area (MUGA) 0 192,000 Group Element Total 0 0 192,000 192,000 D&B Contract sub-total 25,503,230 7,825,000 34,489,105 1,160,874

PROJECT SUPPORT FUNDING 0 300,000 300,000 PSF Sub-total 0 0 300,000 300,000

CARBON REDUCTION Carbon Reduction - Primary 0 105,913 Carbon Reduction - Academy 586,781 578,669

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Carbon Reduction - PRU 94,369 94,369 Carbon reduction sub- total 681,150 0 778,951 97,801

ICT HARDWARE ICT Hardware Primary 0 609,000 ICT Hardware Academy 2,153,250 2,153,250 ICT Hardware PRU 145,000 339,860 ICT Hardware sub-total 2,298,250 0 3,102,110 803,860 ADDITIONAL BSF DRAWDOWN 2,362,535 TOTAL (inc. ICT Hardware and Carbon Reduction) 30,845,166 7,825,000 38,670,166 0

TOTAL BSF DRAWDOWN 6,265,285

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Appendix B Academies Unit Partnerships for Schools Fifth Floor 8-10 Great George Street SW1P 3AE

Dear Sirs,

Affordability statement concerning the proposed Oasis Hadley Academy, Enfield

As the nominated Section 151 Officer for Enfield Council (the ‘Council’), I confirm that I am satisfied that the proposed solution for the building of Oasis Hadley Academy, Enfield is affordable based on my understanding of the funding and expenditure at this stage as set out below.

The Council has agreed to procure the Academy using the Partnerships for Schools (PfS) National Framework, following approval of the Council’s Outline Business Case. A preferred bidder would then be chosen subject to the Council being satisfied that the cost of the project is within the funding cap.

Capital funding

The capital cost estimates are within the resources available by way of the PfS formulaic funding envelope calculated by the FAM. This includes the abnormals that are allowable through FAM funding and Council approved funding.

We have reserved a contingency of £554,658 within the osts estimates of the primary school for external works and abnormals, to cover construction risk, and unknown ground conditions. This will be constantly reviewed as the detailed work on the ITT process and demolition works progress.

The Council has agreed that it will manage the project within the funding cap of £37.891m (plus a potential additional £0.779m carbon reduction funding) agreed with PfS and the Department for Children, Schools and Families (DCSF) and funded by the DCSF and the London Borough of Enfield. This includes the Council’s contribution of £8m of funding for the primary and youth elements, although £175k of this will be in the form of revenue borrowing costs on the value of housing land that is being used for this scheme. Approval has been given by PfS to transfer FAM resources of £2.362m from the Council’s BSF project towards the capital funding of this development.

The Council has conducted options appraisals for the site to demonstrate that the scheme is manageable within this sum. Oasis Community Learning has been fully involved in the feasibility study and development of the OBC. The Council will draw down £300,000 from the above sum for project support funding and this was taken into consideration as part of the options appraisal.

There is not currently a funding gap on the estimated construction cost and this will be kept under constant review.

The Council will use the Design and Build Contract, Lump Sum Option (incorporating Batched Schools Option). The Design and Build Contract works on the basis of payment for achievement of predefined milestones. The milestones (activities and School Albany/Academy/Reports May 2009 Oasis Academy Hadley OBC Cabinet Report 2786jhhb Updated 14.12.09

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The Council will agree with PfS the payments to be made for each financial year over which construction takes place. Subject to the availability of funding from PfS, the Council confirms that it will meet its contractual commitment to the Contractor at each of these milestones.

Once the construction of the Academy has been completed, responsibility for future lifecycle maintenance, facilities management and ICT will pass to Oasis Community Learning Trust.

The Council will retain responsibility for the lifecycle, utilities and facilities management costs of the pupil referral unit. Facilities management costs have been estimated to be £105k pa, which is within the current budgets for running the existing PRUs. Future lifecycle maintenance costs will be met from devolved formula capital allocations.

The PRU will participate in the centrally managed ICT service that is being set up under the BSF project. The cost for this service can be met within the existing budgets. ICT refresh will be funded through retained Devolved Formula Capital Grant /Dedicated Schools Grant within the resources available at the time

Finally, the Council confirms that it will not seek further funding, save for matters pertaining to the contract beyond its control.

Conclusion

I can confirm that on the basis of information currently available, the costs of the proposed Oasis Hadley Academy, Enfield are affordable and factored into the Council’s medium term financial strategy. Should those cost estimates or the Council’s Medium Term Financial Strategy change, the project will be re-evaluated in the light of the financial circumstances prevailing at the time.

Yours faithfully,

James Rolfe Director of Finance and Corporate Resources London Borough of Enfield

School Albany/Academy/Reports May 2009 Oasis Academy Hadley OBC Cabinet Report 2786jhhb Updated 14.12.09