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Sandwell Metropolitan Borough Council Agenda Item 10 Report to Cabinet 28 June 2017 Subject: Schools Capital Programme 2017/18-19/20 (Key Decision Ref. No. SMBC1698) Presenting Cabinet Leader of the Council Member: 1. Summary Statement 1.1 This report seeks approval to the next phase of the Schools Capital Programme, 2017/18-19/20 to fund new school places, and expenditure of part of the first phase of the Government’s recently announced Special Educational Needs and Disabilities (SEND) capital funding allocation. 1.2 The proposed projects within the Schools Capital Programme reflect the funding levels and the council’s priority to provide new school places. As reported to Cabinet on 11 January 2017, focus for the Schools Capital Programme now turns to the provision of a sufficient supply of secondary school places across the Borough, as those children born in 2007/08 start to enter year 7. 1.3 In April 2017, the Department for Education / Education and Skills Funding Agency (DfE/ESFA) announced that the Authority’s Basic Need capital allowance for 2019/20 is £13,478,717. 1.4 It is currently projected that an additional 3,845 places will be required in secondary schools by September 2025. To support this next phase of the programme the council’s in-house Architectural team have completed a number of feasibility studies on the majority of remaining secondary schools to determine options for expansion to meet the projected demand for new places from September 2019 onwards. 1.5 Funding to deliver 840 new school places at: Q3 Academy Langley, Years 7 and 8, 390 places: Ormiston Sandwell Community Academy, 1 form of entry, 150 places: RSA Academy, 2 forms of entry, 300 places, have already been approved by Cabinet to meet the initial demand for new places. [IL0: UNCLASSIFIED] 1.6 The following projects have been identified to ensure the continued supply of sufficient secondary school places: George Salter Academy (250 places) Shireland Collegiate Academy (275 places) Kelvin Way, West Bromwich (750 places) Wood Green Academy (220 places) RSA Academy (minor refurbishment works) The above schemes will ensure the council can continue to meet the demand for secondary school places across the six towns. 1.7 As reported to Cabinet on 11 January 2017, whilst the unprecedented growth in the birth rate experienced over recent years has started to ease, the Borough continues to receive a high demand for school places, primarily due to increased migration and retention rates. In particular, Smethwick remains the area where this demand remains high. A number of primary schools in Smethwick have already been expanded to meet demand and pressure for places in the secondary sector is similarly being experienced. In response there is a need to provide additional places in the Oldbury, Smethwick and West Bromwich areas. 1.8 The programme also includes a project for Yew Tree Primary School. Following a bid in Summer 2014 the School has now been successful for inclusion within the ESFA’s national Priority Schools Building Programme (PSBP). The programme is to fund the comprehensive refurbishment or rebuild of the worst condition school buildings. 1.9 The Authority’s decision to expand the school to 3 forms of entry to provide sufficient school places was made on the basis that the ESFA had agreed to include the school in the PSBP. The ESFA’s decision has now confirmed that a total contribution of £1.04m is required to fund the additional half form of entry. Cabinet approval to the allocation of an additional £0.58m Basic Need funding is sought to meet the total cost of the contribution. 1.10 The Schools Capital Programme aligns to service needs so that the council is able to meet its statutory responsibility of ensuring every child in Sandwell has access to a good school place by seeking to build on its commitment to expand successful and popular schools. 1.11 In addition, the Secretary of State for Vulnerable Children and Families has announced national funding to create new school places and improve existing facilities for children and young people with special educational needs and disabilities. The Authority is to be granted a [IL0: UNCLASSIFIED] total of £1,564,386 over the period 2018/19-2020/21 (£521,462 per annum). Project ‘Evolve’, a comprehensive review of SEND provision across the Borough is well advanced, and the capital allocation can be used to support the project through the provision of new school places. In line with the expansion being experienced through the mainstream sectors, Special Schools are experiencing a proportionate increase in the demand for school places. Cabinet approval is sought to utilise £150,000 from the 2018/19 allocation towards urgent works to provide a new classroom block at Shenstone Lodge School (Residential). New places will support the Authority’s pupil place planning strategy for Key Stages 2 and 3. 1.12 It is proposed to meet the estimated capital cost of £13,868,000 from the total available resources of £24,715,816. Cabinet are requested to approve allocation of the capital funding to enable the proposed expansions and projects to be included within the Schools Capital Programme 2017/18-2019/20. 1.13 A full appraisal has been undertaken by Strategic Finance. A copy of the report can be found at Appendix 1. Some risks have been identified as a result of the appraisal and action points recommended to mitigate these risks. 1.14 With respect to the proposed new school at Kelvin Way, West Bromwich, any new school has to be considered under the Department for Education (“DfE”) “presumption” process, that the council will seek proposals to establish an academy or free school. Only if this process is unsuccessful can the council, with the agreement of the Secretary of State, consider establishing a maintained school through a competition. Before deciding whether or not to enter into a funding agreement with any proposer, the Secretary of State will need to be satisfied about their suitability to set up and run an academy / free school. 1.15 An Equality Impact Assessment (EIA) initial screening has been undertaken. The screening identified that there will no adverse impact on people or groups with protected characteristics as a result of the proposals contained within the report. A full EIA is not therefore required. However, it has revealed that as the council has a statutory duty to provide a sufficient number of school places for all children in Sandwell, all groups are potentially affected by the policy of expansion. This proposal demonstrates that this is uniformly applied in response to where pupil demand is expected although size and type of expansion is restrictive as it is dependent on the availability of government capital funding. Further details are attached for your information. [IL0: UNCLASSIFIED] 2. Recommendations 2.1 That, funding for the following proposed projects be approved as part of the Schools Capital Programme 2017/18-2019/20:- George Salter Academy, Davey Road, West Bromwich, B70 9UW; Shireland Collegiate Academy, Waterloo Road, Smethwick B66 4ND; Kelvin Way, West Bromwich (secondary); Wood Green Academy, Wood Green Road, Wednesbury, WS10 9QU; RSA Academy, Bilston Road, Gospel Oak, Tipton, DY4 0BZ; Yew Tree Primary School, Birchfield Way, Yew Tree Estate, Walsall, WS5 4DX. 2.2 That, subject to 2.1 above, the remaining £10,847,816 funding be retained until feasibility has been undertaken on proposed schemes for 2018-2021, which will be subject to a further report submitted to Cabinet. 2.3 That, subject to 2.1, 2.2 and 2.5, the Director – Education, Skills and Employment be authorised to award a contract, either:- (i) through the New Project Development procedure as established under the Strategic Partnering Agreement with Sandwell Futures Limited; or (ii) following a compliant procurement exercise, in conjunction with the the Section 151 Officer, and in consultation with the Cabinet Member for Children’s Services, subject to meeting the criteria as set out in paragraph 3.1.3 of the report. 2.4 That, subject to 2.1, 2.2, 2.3 and 2.5, the Director – Monitoring Officer enter into any legal agreements on terms agreed by the Director – Education, Skills and Employment, as required, to allow building works to be completed on all proposed sites. 2.5 That, in connection with 2.1 and 2.3 above, the following action points identified within the appraisal report be implemented to reduce any risk to the council:- • Produce project programmes for each scheme within the Schools Capital Programme to ensure that effective project monitoring can be undertaken to aid the timely delivery of each project; • Review Risk Registers for each project to ensure all risks are identified and can be mitigated adequately; [IL0: UNCLASSIFIED] • Ensure that a financial appraisal of the proposal for a new school in West Bromwich is undertaken by Strategic Finance and reported to Cabinet for approval; • Regular financial monitoring updates on individual projects should be provided to the Leader of the Council, highlighting variations of spend against original estimated costs. Remaining funds should be returned to the unallocated Schools Capital Programme; • That the Council enters into such form of legal agreements as required to allow extension works on all proposed sites; and • Post project evaluation should include specific outcomes, along with benchmarking of final costs to ensure value for money is achieved. 2.6 That, subject to 2.5 above, approval be given to allocate £150,000 from the Special Educational Needs and Disabilities 2018/19 capital funding to provide a new classroom block at Shenstone Lodge School (Residential), Birmingham Road, Shenstone, Lichfield WS14 0LB. 2.7 That, subject to 2.1 above, approval be given to proceed with the “academy / free school presumption” process to establish secondary provision on land at Kelvin Way, West Bromwich.
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