Aberdeenshire Council Meeting Date: 13/12/2001 Meeting Time: 10:15:00 (Special Meeting)
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Meeting Title: Aberdeenshire Council Meeting Date: 13/12/2001 Meeting Time: 10:15:00 (Special Meeting) Arrangements: Council Chambers, Agenda Item Number: 1 Agenda Item Title: Aberdeenshire Schools Woodhill House, Public Private Aberdeen Partnership (PPP) - Outline Business Case - Submission to the Scottish Executive Item Description: Joint Report by Planning App Ref No(s): Directors of Education and Recreation, Law and Administration and Finance Agenda Item Import: REPORT TO ABERDEENSHIRE COUNCIL - 13 DECEMBER, 2001 ABERDEENSHIRE SCHOOLS PUBLIC PRIVATE PARTNERSHIP (PPP) OUTLINE BUSINESS CASE SUBMISSION TO THE SCOTTISH EXECUTIVE 1. PurposeofReport This report is to inform members of the contents of the Outline Business Case which is currently being finalised as the Council’s PPP submission to the Scottish Executive for approval of funding support. The Council is asked to confirm that the project should be progressed by its submission before the deadline of 14December, 2001. 2. Background 2.1 The Council’sEducation&RecreationCommittee on9December1999 approvedthe termsof areportwhichidentifiedbuildingworks necessary to address service needs in four separate categories: · Buildingsrequiredasaresultofincreasedschoolrollsduetonew housingdevelopmentsorwherecurrent provision clearly required · Schools that required the replacement of temporary accommodation with permanent structures. · Otherareasofbuildingdevelopmentconsideredhighlydesirable within Education. · Areas of development that could be considered within recreational establishments. That report acknowledges at 5.2that no consideration had been given to possible specific sources of funding. 2.2 These buildingworks were prioritised by the Council’s Capital Plan Programmingand MonitoringGroup and the outcome reported tothe Education & Recreation Committee on 23 March 2000. 2.3 Officers from all relevant services were engaged in further developing the highest priority projects thereby identified when SEED Circular 3/2000was issued on 15September2000, and the Council authorised on 29September2000the submission of abid forsupport forthe costs of developing Public Private Partnership Projects for school buildings in respect of those priority projects. 2.4 A biddated12October 2000wasaccordinglysubmittedbythe Council. The school projectsdetailedinthe bidasproposedforinclusion in a bundled PPP Project were: 1. Newmachar Primary extension/New Kingseat Primary. 2. Replacement Kintore Primary. 3. Portlethen Academy extension. 4. New Primary within Banchory Network. 5. Replacement Logie Durno Primary. 6. Rothienorman Primary extension/refurbishment. 7. Peterhead Academy extension. 8. EllonAcademyrationalisationononesite. 9. Tarves Primary extension. 10. Market Place School, Inverurie. 11. Mearns Academy, Laurencekirk extension. 12. Mackie Academy, Stonehaven extension. 13. Banchory Academy extension. 14. Alford Campus rationalisation. 15. Longside Primary rationalisation on one site. 16. Rationalisation of Primary Schools. 2.5 Followingapproval of the bidbySEEDon20February 2001,the Council’sPolicy&ResourcesCommittee atitsmeetingon14June 2001 approved the establishment of a Project Team to carry out further development work on these schools with a view to the submission of an Outline Business Case. 2.6 Followingan announcementfromthe Scottish MinisterforEducation, Europe and External Affairs on 18 September2001tothe effect that a deadline for the submission of Outline Business Cases to the Scottish Executive had been set at 14December 2001, the Council’s internal Project Team met with KPMG, the Council’s financial advisers, to discuss a way forward. 3. Project Selection 3.1 The ProjectTeamandKPMG agreedthatalthoughthe deadline of 14Decemberforsubmissionof the firstroundof bidswaschallenging, the alternative of delaying submission until the second round deadline of September 2002was also not attractive given that several of the projects under consideration for inclusion had obviously strong cases and would not benefit from the considerable delay. 3.2 Inordertoconsiderthe resource andplanningimplicationsof completinganOutline BusinessCase foraviable projectby 14December and at the same time identify key issues affecting any of the schools, the Project Team assessed the schools under consideration in the light of the specific criteria outlined in SEED Circular 8/2001. 3.3 The ProjectTeam’s recommendation is thatthe undernoted schools are appropriate forinclusion in the Outline Business Case. The numbering follows that in paragraph 2.4 above: 2. Replacement Kintore Primary. 3. Portlethen Academy extension. 4. New Hill of Banchory Primary incorporating closed and amalgamated Crathes and Strachan Primaries and re-zoning from existing Banchory Primary. 5. Replacement Logie Durno Primary incorporating closed and amalgamated Old Rayne and Rayne North Primaries. 6. Replacement Rothienorman Primary. 15. Longside Primary rationalisation on one site. 16. Replacement for closed and amalgamated Netherley, Maryculter and Banchory-Devenick Primaries. Whilst it was originally understood by Councils that they could submit bidsin both December 2001and September 2002 it has now been indicated by the Executive that a successful bidin December precludes any bid in September and that unsuccessful bids in December may be resubmitted in September. 4. SchoolsnotincludedinOBC 4.1 The prioritisation processes detailed in paragraphs 2.1 to 2.4 hereof do notreflectthe specificassessmentcriteriaforfundingsupportfor procurement via the PPP route outlined in SEED Circular 8/2001and it is felt that forthis reason the undernoted schools included in the bid document of 12October, 2000are not suitable for inclusion in a bundled PPP project at this time. The numbering follows that in paragraph 2.4 above: 1. Newmachar Primary extension/New Kingseat Primary. 7. Peterhead Academy extension. 8. EllonAcademyrationalisationononesite. 9. Tarves Primary extension. 10. Market Place School, Inverurie. 11. Mearns Academy, Laurencekirk extension. 12. Mackie Academy, Stonehaven extension. 13. Banchory Academy extension. 14. Alford Campus rationalisation. 4.2 Howeveritisacknowledgedthatpriority needsexistatthese schoolsanditistherefore recommendedthatofficersbe taskedwith exploring alternative sources of finance for addressing the needs of these schools by,in the firstinstance, undertaking the establishment of Asset Management Plans in respect of these schools to include the following pertinent information:- § therunningcostsofthebuildings § themaintenancecostsofthebuildings § the anticipated repair costs of the buildings § schoolrollforecasts § fitnessforpurposeforthedeliveryofeducation § educationandcommunityneedsandexistingorpossiblemulti-use § pertinent Local and Structure Plan information § reportonTitle § relationship with other schools on the Local Education Network § considerationandidentificationofpossiblenecessaryfunding streams § conclusionsandproposalsforfuturesustainableeducationdelivery 4.3 Resources The implementation of a formal schemein respect of the management of the Council's entire property portfoliois presently under consideration by officers. This suggested property management strategy follows the recommendations of the Accounts Commission which indicate that local authorities should adhere to certain principles relating to the management of property, and in particular that attention be paid to the establishment and regular review of Asset Management Plans in respect of each operational property. A detailed report in draft form has been approved by the Senior Management Team and the final report will contain recommendations on programming and resourcing. 5. ProjectDevelopmentPost–OBCSubmission 5.1 Project Timetable The indicative timetable below highlights the key milestones and the anticipated programme of events:- Activity Date Submission of Outline Business Case 14 December 2001 Decision by the Scottish Executive April 2002 Report to Council 25 April 2002 Issue of OJEC notice May 2002 Issue of Information Memorandum May 2002 Receipt and evaluation of IMresponses June 2002 Issue of Invitation To Negotiate August 2002 Receipt and evaluation of ITN responses January 2003 Issue of Best and Final Offer clarifications February 2003 Receipt and evaluation of BAFO submissions April 2003 Appointment and negotiation with preferred bidder May – October 2003 Financial close November 2003 Services Commencement August 2005 5.2 EndUserConsultation It is intended that further consultation will take place as soon as possible with the end users with a view to refining the accommodation requirements to the level of detail necessary for inclusionin the ITN. A robust check on these detailed specifications will be carried out prior to issue of the ITN. It is anticipated that the private sector bids should not contain such significant departures from the ITN specifications, given the level of detail expressed therein, that would require further input from the end users prior to approval of the finalised provision. It is therefore important that the end users contribute fully and seriously to the development of the ITN at the outset. 5.3 Statutory Consultation It is intended to seek the Council’s authority to carry out the necessary statutory consultations as soon as possible following the anticipated approval of the OBC from the Scottish Executive. 5.4 Consultative Groups It is the intention that Consultative Groups be established and operated on a local basis for each of the project schools by the Education Service. The proposed