ARGYLL AND BUTE COUNCIL

COMMUNITY SERVICES: EDUCATION

THIS IS A FORMAL CONSULTATIVE DOCUMENT

This paper is concerned with future education provision for non-denominational pupils residing within the delineated area of the secondary school identified in this document.

THE PROPOSAL

The relocation of Grammar School to a new building on a new joint campus site with Dunoon Primary School, Kirn Primary School and St Mun’s Primary School

This document has been issued by the Community Services Department of and Bute Council for consultation in terms of the Education (Publication & Consultation etc.) () Regulations 1981 and Amendment Regulations 1987, 1988 and 1989.

1.0 INTRODUCTION

In September 2000, Council agreed to establish a Capital Funding Project charged with delivering a significant and sustainable improvement to the school estate through the development of a type of Public Private Partnership known as the Non Profit Distributing Organisation (NPDO) model (see appendix 1 for greater detail and explanation).

Following an indicative award of additional revenue funding from the Scottish Executive and their confirmed support, the Council agreed to pursue a PPP\NPDO project for 28 schools of which 2 were designated as rebuilds with the remaining 26 designated as refurbishments.

The Council advertised for private partners to bid for this contract and in their advert emphasised their wish for the private sector to bring forward innovative solutions where possible and appropriate.

Two compliant bids were received and after detailed and thorough evaluation by the Council team and their external advisers, the Council agreed in March 2004 that Precept should be appointed as the Provisional Preferred Bidder. The current status of Provisional Preferred Bidder reflects ongoing negotiations whereby, without reduction in the quality standard specification, the financial model can sustain the inclusion of all 28 schools (now 29 given the proposal to include Whitegates Learning Centre). Should an affordability gap remain, it is likely that the total number of schools will have to be reviewed. The reprioritisation would be based on continuing with the priorities below within a reduced budget .

Throughout the process reference was made to the following:

Scottish Ministerial Priorities which include:

• Deal with the worst problems first

• Secure value for money

• Support 21st century learning and teaching

• Meet wider community needs

• Maintain momentum and encourage innovation

The Council’s commitment to address issues arising from:

• The current quality of the school buildings in Argyll & Bute with a commitment to deal with the poorest buildings first

• A geographical approach to allow the bringing together of a number of schools to achieve, wherever possible, economies of scale 2

• Giving priority to secondary schools in order that key deficiencies could be addressed

Other key factors:

The continuing impact of current conditions on the learning environment and the quality of learning and teaching

The Council’s ongoing commitment to raising standards and maximising the potential of every pupil

• The consequences and cost implications for both revenue and capital arising from the continuing deterioration of those schools which represented the worst problems

Embracing all of the above, the solution proposed by Precept is highly innovative and is based on the premise that the best solution, where possible, is to rebuild rather than refurbish schools because it is less disruptive to pupils and more cost effective. In a number of instances, schools should be co-located in new buildings on the one educational campus whereby economies of scale can be realised and where schools can share enhanced facilities. In order to ensure that disruption to education is kept to a minimum Precept have proposed that 18 of these new schools should be built on new sites.

Subject to final confirmation of affordability and deliverability, the Council has indicated that it is minded to accept the proposals brought forward by Precept. The current status of Provisional Preferred Bidder reflects ongoing negotiations to seek ways whereby, without any reduction in the quality standards specification, the total financial model can sustain the inclusion of all 29 schools. However, should an affordability gap remain it is likely that the total number of schools included would have to be reduced. In such a situation the reprioritisation would be based on continuing with the highest number of schools possible within the restricted budget available.

The proposal to re-site schools means that the Council has a statutory duty to formally consult with parents, staff, pupils and community stakeholders and to ascertain their reaction to these proposals.

Accordingly this document is issued as a formal consultative document in terms of the Education (Publication & Consultation etc.) (Scotland) Regulations 1981 and Amendment Regulations 1987, 1988 & 1989 (Appendix 2 provides the complete list of 18 schools which are the subject of formal consultation).

Formal Consultation

Members of Council wish to ensure the fullest possible public consultation on the proposals and to that end have appointed an external and independent consultant to make the necessary arrangements and to oversee all of the consultative process. This will include:

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• The dissemination of all relevant information

• The co-ordination of the consultative process in its various formats

• The collation and analysis of all formal responses

A final report to Council will be considered and taken into account by elected members when the final decisions are made.

(Appendix 3 provides the full details of the consultative process and procedures which are to be adopted.)

The external consultant appointed is Mr Bob McKay. Mr McKay is the former Director of Education for Perth and Kinross (1995 – 2000) and previously has had extensive directorate experience in both Strathclyde and Tayside Regions (spanning 8 years). He is a former CoSLA adviser and President of the Association of Directors of Education in Scotland.

4 2.0 SPECIFIC PROPOSALS FOR DUNOON GRAMMAR SCHOOL SCHOOL

The proposal is that Dunoon Grammar School be relocated on a new site. The new site will be a joint campus comprising Dunoon Grammar School, St Mun’s R.C. Primary School, and the new school created by the amalgamation of Dunoon and Kirn Primary Schools.

The above will, as normal, be subject to the due planning process.

Background

Dunoon Grammar School is currently located in Ardenslate Road, Kirn, Dunoon and has a capacity of 1158. It is a secondary school for pupils aged 12 – 18 and the pupil roll as of September 2003 was 1009. The projected roll to 2010 is 859. The school is also designated to make provision for pupils with significant special educational needs in a learning centre.

Independent examination of the building has confirmed a substantial range of physical difficulties and further that the scale and extent of the difficulties are such that it would not make economic sense to pursue a comprehensive plan for extensive repairs, remediation and refurbishment. These conclusions have been confirmed by an independent report from a structural engineer.

The Provisional Preferred Bidder, as approved in March 2004, satisfies the following key requirements:

• The establishment of a plan which will provide clearly defined quality standards

• The creation of ‘fit for purpose’ school buildings meeting the educational needs of young people today and in the future

• The creation of schools appropriate for the development and use of new technology

5 The proposed agreement reached between the Council and the Provisional Preferred Bidder means that:

• The Council will be responsible for the final specification both in terms of buildings and related services

• The Provisional Preferred Bidder will be responsible for the final design, as approved and agreed with Council, and the completion of all new builds

• The Provisional Preferred Bidder will be responsible for the ongoing maintenance of quality and standards of the building for 30 years. In addition at the end of 30 years the Provisional Preferred Bidder will be responsible for passing the school to the ownership of the Council with a guarantee of the maintenance of quality and standards for a further five years.

• It is intended that the final financial close for the project will be October 2004. A programme of construction will then be prepared by the Provisionally Preferred Bidder with a completion date of June 2007.

Educational Considerations

The current school building is outmoded, uninspiring and at the end of its economic life. The educational implications are therefore self-evident. It does not provide the positive ethos and educational environment required for a modern secondary school. There are significant restrictions and constraints for a school seeking to take forward the modern curricular strategies and the overall state of the building is not conducive to effective learning and teaching. In addition the difficulties and constraints impose day to day management problems.

The New Joint Campus offers:

• A new modern building with high quality services

• A model which will encourage inclusivity and the continuation of education for all pupils and allow for enhanced joint working between Pre 5, Primary, SEN and Secondary

• An environment more conducive to effective learning and teaching

• A high quality of modern resources to be shared e.g. indoor and outdoor P.E. facilities and social areas.

Staffing Considerations

Subject to the terms of any final agreement, staff transferring to the employment of the Provisionally Preferred Bidder will have the guarantee of retention of their current terms and conditions as per the Scottish Executive/STUC protocol.

Teaching, technical and administrative staff will remain in the Council’s employment. 6

Financial Considerations

In light of the assessment of the school buildings throughout Argyll and Bute and in particular the 29 schools identified for this project the evidence is clear that current maintenance of the buildings is placing considerable revenue and capital work demands on an already limited budget. It is clear from the evaluation that the future burden on both revenue and capital budgets will increase and this solely for the purpose of maintaining these schools at their current standard.

The proposals for this school form part of the Council’s proposed PPP/NPDO project for schools. In pursuing this development the Council has secured additional revenue support from the Scottish Executive and this funding is ring-fenced for this project. The Council is required to ensure that within the terms of relevant legislation this project offers a best-value solution for the Council and that by the time of financial close the project in its final form is affordable. The view at this stage is that this route offers a more cost effective solution.

As stated earlier in this paper, should there be insufficient funding available to include all 29 schools, the reprioritisation by Council will be based on continuing with the priorities identified in the introduction of this paper.

Future Use

The future use of these buildings will require to be considered by Community Services, and by the Council as a whole.

Responses to the Formal Consultation

Appendix 4 is the formal basis for response to the consultation exercise. It can be returned by:

• Writing directly to Mr B McKay, External Consultant, Argyll House, 91 Alexandra Parade, Dunoon PA23 8AJ and enclosing the completed formal response

• By e-mail, which can be accessed through the Argyll and Bute website (www.argyll-bute.gov.uk).

In addition, copies of the Formal Response form will be provided at all consultation meetings for completion and return at that time.

The closing date for the consultation period is Friday, 11th June, 2004.

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3.0 SUMMARY

Independent evidence confirms that building a new school, as part of a joint campus, is the preferred option both in educational and financial terms. The implications for revenue and capital budgets of simply trying to maintain the current poor level of provision are substantial. The new school will be co-located on a joint campus offers a resolution which is both educationally and financially sustainable.

4.0 RECOMMENDATION

The Strategic Policy Committee (Education) approved the issue of this document on 23rd March 2004.

It is recommended that the external consultant be required to provide for Council a detailed summary of all issues arising from the formal consultation.

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Appendix 1

PUBLIC PRIVATE PARTNERSHIPS (PPP)

PPP is an umbrella term used to describe a variety of arrangements whereby the private sector design, build, finance and operate a building and provide services to the public sector. In return the public sector organisation will pay the PPP a fee called the Annual Unitary Charge for the services provided. Probably the best known example of a PPP is the Private Finance Initiative (PFI).

PFI schemes are being used to fund the rebuilding and refurbishment of schools throughout Scotland. The noted advantages of a PFI solution are:

• The local authority does not need to provide the initial capital investment

• Life-cycle maintenance and facilities’ management to an agreed specified standard form part of the contract with the private sector

• The payment of the annual fee to the private sector company is based on their performance. If they fail to deliver services to the agreed standard deductions are made – it is a single point of delivery and a single point of responsibility with the private sector

• Importantly, from an accounting point of view, the provision of a school built and operated under a PFI is regarded as off-balance sheet, that is it does not count against the authority’s capital spending programme

• Importantly also the Scottish Executive have provided significant additional funding to authorities to assist them develop PPP schemes

A number of authorities are pursuing the PFI model for the upgrade of their schools. However, despite the obvious benefits noted above, some concern has been expressed about PFI schemes. These concerns led Argyll and Bute Council to pioneer the development of a Non-Profit Distributing Organisation (NPDO) model. It is important to note that the NPDO is a type of PPP – it is a private sector entity and is operated on a commercial basis. In developing the NPDO model the council is seeking to capture all of the benefits of a traditional PFI – plus it is structured in such a way as to ensure that:

• Additional profit is recycled back to promote and provide additional educational facilities for the people of Argyll and Bute

• It is at least as cost-effective as a PFI

• The wider education community has the right to be represented on the board of directors of the Project Company

9 • It has the potential to offer greater value for money to the Council

The NPDO proposal has the unanimous support of the Council and is regarded as a pilot project by the Scottish Executive. A number of other Councils have already indicated that they intend following the Argyll and Bute model.

10 Appendix 2

Area Schools identified to share new Comments build, joint campus.

Bute Rothesay Primary School

Cowal Dunoon Grammar School Dunoon Primary and Kirn Primary Schools Dunoon Primary School to be amalgamated to form one new Kirn Primary School primary school. St Mun’s R.C Primary St Mun’s R.C. Primary School School to be co-located as a separate school sharing common facilities.

Helensburgh & Hermitage Primary School Lomond St Joseph’s R.C. School

Islay Islay High School Bowmore Primary School

Kintyre Grammar School Castlehill Primary School

Mid Argyll Additionally it is proposed that pupils and Lochgilphead Primary School staff of Whitegates Learning Centre will be Whitegates Learning Centre integrated within the new campus.

Oban St Columba’s R.C. Primary School Additionally it is proposed that pupils and Rockfield Primary School staff of Drummore Learning Centre will be Drummore Learning Centre integrated within the new campus.

11 Appendix 3

THE CONSULTATIVE PROCESS AND PROCEDURES

The following identify the key aspects of the consultative process and the formats for consultation.

The Criteria

Throughout the consultations the following criteria will underpin and inform all aspects of the process:

• The consultative process will be integral to the taking forward of the proposals

• The process will be monitored throughout

• The materials provided for information will be as concise and comprehensive as possible

• Every effort will be made to ensure that the materials provided are intelligible and written in plain English

• It is intended that the dissemination of relevant materials will ensure that everyone with an entitlement to be consulted is in receipt of the materials and know how to respond

• The Council has in-built to the timetable sufficient time for the consultant to collate and analyse all of the responses received and report accordingly

Formats for Consultation

In order to ensure the widest possible consultation the following formats will be employed:

1. The dissemination of the consultative paper, as approved by Council, to all interested parties

2. The establishment of a Council based website on which all information will be made available and with a provision for response

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3. A general information leaflet will be produced identifying the proposals and timescales together with identification of the more frequently asked questions with answers provided and a list of all of the consultative mechanisms together with the variety of means for response

4. Chat Room - It is intended that Councillor Dick Walsh, Mr Douglas Hendry, the Director of Community Services and a representative of the provisionally preferred bidder will take part in an on-line question and answer session, at a designated time and place, with the agenda exclusively committed to the various proposals

5. There will be formal consultative meetings convened in the areas where the proposals apply. For the 18 schools for which formal consultation is required consultative meetings will be convened for all stakeholders and the time and date will be circulated with the appropriate paper.

It is also intended at the conclusion of the consultative process that all those who respond will receive a questionnaire, which will seek to evaluate the effectiveness of the consultative process and procedures.

13 Appendix 4

NPDO CONSULTATION – RESPONSE FORM

ALL SECTIONS UP TO SECTION A MUST BE COMPLETED FOR VALID RESPONSE

NAME OF SCHOOL:

Name Address Postcode:

Tel No:

Yo ur Interest:

Pupil Parent Teacher Employee Resident

Community Other (Please Specify): Councillor Representative

Y our views: (please tick the appropriate box)

Against the proposal

For proposal Against proposal and have an alternative

(complete Section A) (complete Section A) (complete section A & B)

SECTION A: List reasons for your views either for or against the proposal

SECTION B: Please give details of your alternative proposal

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