THIS REPORT RELATES STIRLING COUNCIL TO ITEM 15 ON THE AGENDA STIRLING COUNCIL ASSETS, PROPERTY & FACILITIES MANAGEMENT/ EDUCATION 2 DECEMBER 2010 NON EXEMPT THE REVIEW OF EDUCATION CAPITAL PROGRAMME PRIORITIES FOR FUTURE YEARS – SCHOOL ASSET MANAGEMENT PLAN FRAMEWORK 1 SUMMARY 1.1 This report provides details on the review that has been undertaken on the Education priority list for school investment and provides the framework of a school asset management plan for future years. 2 RECOMMENDATION(S) It is recommended that Council:- 2.1 Approve the reprioritisation as outlined in this report, including the new “priority list” (as outlined in paragraph 3.19) and the “priority projects list” (as outlined in Appendix 4); 2.2 Note that the Education Capital Programme for future years will be resource dependent; and 2.3 Note the assumption in regard to the rebuilding of East Plean Primary School. 3 CONSIDERATIONS Background 3.1 As part of the Diagnostic Review in 2009 the responsibility for Programme and Project Management of the Education Capital Programme for buildings has transferred to Assets, Property and Facilities Management on 1 April 2010, in consultation with the Head of Education. 3.2 The former Children’s Service had created a “priority” list of schools which specified those schools which had the greatest need for investment in terms of:- • capacity issues (not enough space for the number of pupils); • condition (greatest backlog of maintenance repair); • suitability (premises/areas that were not fit for purpose to address curriculum or health and safety needs); or • where there were other issues such as temporary teaching accommodation (revenue consequences). Over the years, Council has agreed updates to the priority list with the last update being in 2007. Appendix 1 shows the existing priority list and the significant progress that has been made to date. Approach to the Reappraisal of the Children’s Services Priority List 3.3 As there have been a significant number of projects undertaken since the priority list was first created, with relative priorities shifting as a result, it was considered prudent to have a full review to re-establish the Council’s priorities for investment within the Educational Estate going forward. To this end Strategic Asset Management and Education have reviewed all of the condition and suitability surveys for each property to establish the “worst condition schools”, the schools unsuitable for effective learning and teaching and those with the most significant capacity issues. A review of properties where there are temporary teaching units currently on hire has also been undertaken. The aim is to effectively identify the priorities that should now exist for school refurbishments using a 2010 baseline. 3.4 Children’s Services previously carried out partial improvements to the school estate, with the intention of bringing the whole portfolio up to a better standard. This has resulted in the overall condition of the estate improving – in 2006 the Council’s Core Facts Uplift to Scottish Government reported that 5 out of the 7 secondary schools were in condition C or D and 13 primaries were in condition ratings C or D. Following significant investment, all secondary schools are now condition rating A with only 1 primary school remaining in condition rating C. No primary schools are rated D. Although successfully improving the condition of a number of schools, this approach led to a situation where schools were having works carried out every 2-3 years. This disrupts the school environment and it is questionable whether it offers the best Value for Money from the construction contracts. As budgets are diminishing, and the estate is in a better overall condition, it is recommended that the Council accept a different approach of targeting whole school refurbishment or partial refurbishment over a lesser number of phases thereby increasing Value for Money and diminishing the disruption to schools. In this regard it is also recommended that the Council should only have a very small priority list, which agrees the “top 2” priorities for whole school refurbishment in any review period and allows the Council to more frequently review the priorities – which are changing at a much more rapid pace. 3.5 It is apparent from the previous information and ongoing survey works that there are “elements” within some schools that have a more pressing requirement for investment and cannot potentially wait to be addressed as part of a whole school or partial refurbishment eg replacement heating systems, window and roof repairs, etc. It is therefore recommended that in addition to having the priority whole school refurbishment list, as discussed above, that there is a requirement to have an elemental “priority projects list” that includes the worst elements that should be programmed for improvement as soon as resources permit. 3.6 The reappraisal also considered issues such as addressing the energy performance of buildings (as raised by Energy Performance Certificates) and any outstanding health and safety issues. Considered together these lists have allowed the production of a draft 5 year capital programme for the Education estate which is based on a critical success factors matrix which considers suitability, condition, sufficiency, potential for wider community use, sustainability, etc. 3.7 It is intended that this new approach will give greater transparency to the investment priorities and allow them to be reviewed and restated every two to three years, or more frequently, if required. Inherited Capital Investment Programme for 2010/11 and Continuing Commitments 3.8 The capital investment programme for 2010/11 is £5.747M and has in the main been inherited from the former Children’s Services, with some additional pressing priorities that have had to be included. Appendix 2 outlines the details of the major spend areas. 3.9 In summary, the commitments which will continue into 2011/12 are as follows:- • Cowie Primary School Refurbishment - completion • Doune Primary School Refurbishment and Extension • McLaren High School Pitch • Riverside Primary School Refurbishment (supported by Schools Fund) Additional School Fund Allocation/Riverside Primary School 3.10 Members may recall that the Council were asked to submit bids (at short notice) for consideration for extra Schools Fund Allocation from the Scottish Government in the autumn of last year (2009). The Council submitted bids for Riverside and Strathblane Primary Schools but received support for only one school refurbishment for Riverside. The Scottish Government, via the Scottish Futures Trust, confirmed that the Council would be allocated 50% (equal to an additional £1.8M) for the refurbishment, which was bid for investment in 2011/12 and 2012/13. Discussions are ongoing with the Scottish Futures Trust, who are programme managing the awards on behalf on the Scottish Government and the actual amount of allocation will be dependent on them agreeing the brief for refurbishment, including costings, and on the Council match funding the allocation. Works on producing the brief for Riverside Primary School are now commencing to allow discussions to commence early in the New Year when it is envisaged that design works will commence. An allowance for this work has also been made in the programmes for 2010/11 and in future years. Education Capital Programme Allocation 2011/12 Onwards 3.11 Following the review of the General Services Capital Programme and the reprioritisation process reported to Council in October 2010 it is clear that the Education allocation will reduce significantly as provisional budgets diminish in line with the Government’s Spending Review. An envisaged allocation profile, based on the October paper, but subject to review at Council in December, is shown below and has been utilised as a basis for planning the educational programme for future years. Potential Capital Resources for Education Related Spend from Oct 2010 Paper Allocation 2011/ 2012/ 2013/ 2014/ 2015/ Comment Heading 2012 2013 2014 2015 2016 Continuing £1.898M £1.3M £0.7M - - Includes Cowie, Commitments Doune, Riverside PS refurbishments/ extensions & McLaren Pitch Education Energy £0.05M £0.05M £0.05M £0.05M £0.05M & Water School Estate £0.5M £0.5M £0.5M £1.0M £1.0M New Secondary/ - - - £1.9 M £4.0M Would be Primary from LDP contributions only as insufficient to provide new schools Inclusion (Aids & £0.16M £0.16M £0.16M £0.16M £0.16M Includes Adaptation) Equipment Total £2.608M £2.01M £1.41M £3.11M £5.21M In the event that resources are greater than noted above, it will be possible to achieve more improvements to the school estate. If resources are less, then some of the items noted will require to be phased into future years. Outcome of the Review Process Condition 3.12 The review has highlighted that £6.9M is required to address the backlog of condition issues that are apparent in the school estate and have been quantified as in need of immediate, urgent, necessary or recommended action. The estate has been split between Primary and Nursery/Out of School Care provision and a ranking of “worst condition properties” has been created. The secondary estate has been discounted as it has now been fully refurbished and the bulk is maintained under Public Private Partnership/Private Finance Initiative contracts although it is envisaged that an adequate maintenance budget will be created for Bannockburn High from 2013/14 onwards to ensure it is adequately maintained and the significant recent investment is not allowed to deteriorate. 3.13 A ranking table has been created using a £ rate per square metre which shows the worst condition schools based on the funds required to carry out the immediate, urgent and necessary works – recommended works have had to be discounted at this stage due to insufficient resources. The ranking table shows that the top three “worst condition schools” are Inversnaid, Cowie St Margaret’s and St Ninian’s Primary Schools.