Hampshire County Council

Executive Member, Policy & Resources Item 5

11 April 2002

Strategy for the Built Estate - Annual Plan

Report by the Director of Property, Business and Regulatory Services

1.

Introduction

1.1

The purpose of this report is to review the Strategy for the Built Estate and its related objectives. This strategy has for more than a decade been the principal means by which the County Council manages its priorities with regard to its assets and maintenance liabilities. The strategy has provided the means by which strategic objectives are established and reviewed, together with the allocation of resources.

2.

Strategy for the Built Estate - Key Objectives

2.1

The annual process by which objectives are established and reviewed sets the framework for the subsequent allocation of resources. The key objectives are to:

· direct resources to the highest and most significant liabilities in the permanent built estate

· to maximise the opportunities for planned maintenance regimes as opposed to reactive `patch and mend'

· to ensure that the buildings are accessible and safe to occupy and a robust corporate Health and Safety Strategy exists

· to maximise the value of particular levels of investment through effective procurement regimes

· to establish effective management partnership arrangements with schools and to maximise the opportunity for government funding

2.2

Many of the other County Council capital investment programmes which exist locally, or are funded centrally, will make little sense if the maintenance strategies are ineffective. Much of last year's resource was therefore focused on planned programmes. Within a broadly fixed budget, considerable increases in staff time and resources have been diverted towards Health and Safety programmes. A report on recent procurement initiatives is elsewhere on the agenda, as is a report on partnership arrangements with schools. It is recommended that the above objectives be endorsed as the basis for the Strategy over the next 12 months. The budget reports elsewhere on the agenda set out the distribution of resources with the above key objectives in mind. The above objectives will also act to guide the deployment of property management staff throughout the year. In addition, and recognising the County Council's support of sustainable development the department will, as resources and staff allow, contribute in particular to water and energy conservation measures and the wider sustainability agenda.

3.

Building Liabilities - The Context

3.1

The stock of the County Council's buildings - over 5000 in number - represent the principle means from which the County Council provides its public services. In 1999 the estimated liability for schools over a five year period was some £250 million. The quite significant additional resources brought about by New Deal for Schools Condition monies represents no more than 15% of that liability. In practice, the additional resource is most welcome but set against the liabilities inherent in the stock the long term challenge of the Strategy is to meet and reduce these increasing liabilities over the coming years. Regrettably, it is already known that maintenance liabilities will grow throughout this decade. While attention has been focused on schools where the largest liability exists, other segments of the estate such as Social Services Children's Homes and office accommodation, require review and attention.

4.

Temporary Buildings

4.1

For the first time in several years the reduction in temporary buildings is not included as a strategic objective. In a decade, over 1000 temporary buildings have been removed using revenue and capital maintenance resources, locally resourced capital programmes and education capital. The demands of the estate and the resources required for Health and Safety suggest that a planned programme of removals could no longer be resourced from Policy and Resources. It is recommended that opportunities to remove those in the `poor' or `very poor' condition are taken as resources permit. Those in the above categories would continue to be monitored and where Policy and Resources capital resources are available removal considered.

4.2

It is anticipated that the New Deal for Schools Modernisation capital resources available to the Executive Member for Education would permit a small programme of targeted removal which has much to commend it. Where appropriate and resources permit, funding this work jointly has been a successful strategy in the past.

5.

Planned Programmes

5.1

On this basis, and by directing resources at the highest liabilities significant programmes of work are elsewhere on the agenda for approval.

5.2

External Redecoration

The external redecoration programme will be the largest annual programme ever committed covering up to 77 schools. (Value: £4.2m)

5.3

SCOLA Recladding and Roof Replacement

5.3.1

Building on the programme and timetable started two years ago a major recladding programme for SCOLA schools is included together with a programme for major flat roof replacement. (Value: £6.3m)

5.3.2

Until now the SCOLA re-cladding systems have been mainly contracted through Wessex Window Systems, a local company who through their innovation developed a product line to match the appearance of the existing SCOLA system. Changes in the Building Regulations that come into effect from April 2002 will make it necessary to reconsider the design of the SCOLA replacement cladding systems, in order to meet more stringent requirements for energy efficient designs. It also makes sense to consider getting more capacity from the industry now that the proposed re-cladding programmes are set to increase significantly in size. Research has been taking place with Sapa Building Systems, a major manufacturer and supplier of base components to the window and cladding industry. Sapa is willing to develop and manufacture the special components for a SCOLA replacement system that will meet the requirements of the new Building Regulations.

5.3.3

It is also proposed that the new system is tried and tested at one school before being used on a wider scale. For this it is proposed to negotiate with an experienced contractor, Wessex Window Systems to install and test the new system in conjunction with Sapa before getting other contractors to compete for the main programme of work. The intention would be to ultimately select up to three preferred contractors to tackle this main programme of work.

5.4

Ballard Heating

The programme for the replacement of warm air factory heating systems in SCOLA primary schools is, after 15 years, being brought to a conclusion by the programme recommended for Ballard Heater replacement. (Value: £2m)

5.5

Fire Safety, Electrical Repairs, Lighting Replacement

The New Deal for Schools Condition resources makes possible a major programme for replacement of lighting, fire protection and progress on engineering test and inspection reports for which a considerable backlog exists.

(Value: £1.5m)

5.6

These are a few of the headline issues that demonstrate the scale and impact that this year's programme will have.

6.

Management Partnerships and Delegated Resources

6.1

The delegation of revenue maintenance resources to schools, irrespective of liabilities, had the capacity to seriously undermine the corporate strategy. The agreement for all schools to enter a new 5 year SLA with Property Services, protects this position and makes possible the opportunity to maximise the County Council's spending power on maintenance issues and to continue to develop planned programmes to maximise the largest liabilities, irrespective of the ability to pay.

6.2

In addition, the extensive delegated capital resources to schools for asset management related issues provides a further opportunity to supplement revenue and capital maintenance resources with delegated capital towards the highest liabilities. The mechanism for this is to develop for each school a programme of works, related to its asset management plan over several years. The Management Partnership appointment system is the principle means by which the dialogue is developed. It is hoped to further recruit property management staff to provide coverage for this opportunity.

6.3

While the scale of the liability will (probably) always exceed the available resources, it remains important to develop and maintain a programme which targets the highest liabilities (and complements capital expenditure for improvements). It is also important to recognise the diversity of the issues, hence while more resources could be targeted to the highest liabilities, recommendations are made later in the budget reports to provide resources for fire precautions, accessibility and Health and Safety, sufficient to see practical progress and incremental improvement in those areas.

Recommendations

It is recommended that:

1.

the key objectives for the Strategy for the Built Estate be endorsed

2.

the Director of Property, Business and Regulatory Services review and report on the condition of the non education estate by the end of the year.