Hampshire County Council

Buildings, Land and Contracts Panel

26 March 2003

Executive Member for Policy & Resources

10 April 2003

Strategy for the Built Estate - Annual Plan

Report by the Director of Property, Business and Regulatory Services

1

Summary

1.1

The following decisions are sought:

That subject to the views of the Buildings, Land and Contracts Panel

1. The six key objectives of the Strategy for the Built Estate be approved for 2003/04.

2. The budget allocations for 2003/04 (identified in items 8 and 9 on the BL&CP agenda) be based upon the strategy and its objectives.

3. That the Buildings, Lands and Contracts Panel considers at a future meeting an update on temporary buildings.

2

Reason(s)

2.1

To provide a framework and strategy against which revenue maintenance and capital repairs budgets should be allocated.

3

Other options considered and rejected

3.1

None.

4

Conflicts of interest declared by the decision-maker or a member or officer consulted

4.1

Not applicable

5

Dispensation granted by the Standards Committee

5.1

Not applicable

6

Reason(s) for the matter being dealt with if urgent

6.1

Not applicable

Approved by:

..........................

Date of decision:

.........................

Councillor T K Thornber

Hampshire County Council

Buildings, Land and Contracts Panel

26 March 2003

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 performance against the key objectives in the Strategy for the Built Estate, consider the relevant objectives for 2003/04 and provide a framework against which the revenue maintenance and capital repairs budgets should be allocated. The strategy is the principal means by which the County Council manages its priorities with regard to asset and maintenance liabilities. The management framework for property services is set out in the appendix. The strategy is a key part of that framework.

2

Strategy for the Built Estate - Key Objectives and Performance

2.1

The key objectives in the last 12 months were:

· 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; and

· to ensure that sustainability is at the heart of property management policies;

The next section of the report considers progress against the above objectives and recommends that the strategies and objectives remain valid for the next 12 months.

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2.1.1

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

Distribution and implementation of NDS Condition (some £20 million so far) is aimed, exclusively, at permanent school buildings with the largest liabilities. Given the maintenance liability at schools (over £250 million over the next 5 years) the spending priorities established last year remain relevant and will once again be used as the base for allocating NDS and landlord's funding in 2003/04. The priority activity is illustrated below for 2002/3.

NDS - Condition Allocations 2002/03

PRIORITY ACTIVITY

Revised

Allocation(including fees)

£000

Actual

Programme

£000

Number of properties in programme

SCOLA recladding

5,000

4,884

12

Structural repairs timber frame buildings

1,000

800

2

Re-roofing, window replacement

2,000

2,068

33

Boiler replacement

1,000

811

17

Ballard Heater replacement

1,000

913

5

Electrical safety

1,500

1,300

23

External works/drainage

500

328

18

Fees

included in above

896

-

12,000

12,000

110

In addition to the 110 or so properties above there are a further 140 properties in the landlord's capital repairs programme this year relating to re-roofing, SCOLA recladding and redecorations.

Conclusion

It can be seen from the above that significant resources are being targeted at the greatest liabilities. It will remain a key feature of maintenance management for the remainder of this decade to sustain this approach. The benefits from the resources made available for New Deal for Schools Condition allocations are therefore likely to be at their greatest when utilised in this manner.

2.1.2

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

Revenue Expenditure

Some 61% is committed to planned engineering servicing and maintenance on an annual basis. About 27% is committed to reactive maintenance e.g. vandalism, asbestos removal, roof leaks with 12% committed against planned asbestos testing and internal decorations.

Capital Expenditure

Virtually all capital expenditure by its nature is planned, which would significantly increase the figure of 61% quoted above. With the new engineering term contracts it is difficult to see how much more this balance between planned (including servicing) and reactive work could be improved.

Conclusion

Recognising the scale and diversity of the estate it is difficult to see where further planned work could emerge. Maintaining a commitment to at least 60% of the revenue programme being managed in a planned manner will produce the greatest long term benefit in terms of reducing the liabilities of the estate.

2.1.3

To ensure that the buildings are accessible and safe to occupy and a robust corporate health and safety strategy exists

Best Value Performance Indicator results on the number of public buildings accessible to disabled people is in the top quartile for all County Councils (Hampshire is second). This year 20 public buildings have been improved with a range of initiatives including improved signage, sensory access e.g. induction loops, vehicle circulation (platform lifts) ramps, increase in accessible parking areas, redecoration of internal spaces to incorporate colour contrast.

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Conclusion

The Panel will receive a detailed report at its meeting in May of progress on accessibility and a further update of the Corporate Risk Assessment for the Built Estate. Early indications suggest that a review of fire policy within the County Council will be required. The papers later on the agenda for revenue and capital repairs also suggest that the opportunity exists to extend and review existing health and safety programmes complemented by local management action. The increased allocations for next year will therefore allow further progress.

2.1.4

To maximise the value of particular levels of investment through effective procurement regimes

Conclusion

The report elsewhere on the agenda on Procurement Initiatives, suggests that even at a time when the construction industry is

overheated and basic skill shortages are prevalent, the bulk of the County Council's programme is being delivered. The extent to which framework contracts and the like can be extended requires to be further evaluated. The term contracting for engineering services, suggests that our purchasing power has secured very competitive costs and effective delivery for schools in particular.

2.1.5

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

In addition to the NDS Condition funding that the Landlord has received from the DfES, schools have also received to date over £21m of directly delegated capital funding to use on addressing their individual school AMP priorities. This year schools are destined to received a further £14.3m of delegated funding, bringing the total since 2000/01 to over £35m.

The Department has, for a number of years, met with individual schools through its Management Partnership arrangements in order to discuss property related issues and strategies. Management Partnership meetings have become an increasingly important mechanism for capturing school funded work, particularly the school work that now flows from the Government's latest delegated funding arrangements. Of the £21m of delegated funding within the system to date, schools have spent just over £6m. To date the Department has been able to track that it has developed and procured school funded schemes that match the above spending pattern.

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2.1.6

To ensure that sustainability is at the heart of property management policies

The Executive Member for Policy and Resources on 6 November 2002 approved an annual allocation of capital repairs funding towards a number of initiatives to reduce energy and water consumption including:

· the installation of modern heating controls

· the conversion of oil fired plant to gas

· replacement of leaking mains water supplies

· installation of new taps and urinal-controls

A rolling programme to address the above issues will begin in 2003/4.

Specific project work has also been identified to meet sustainable requirements. The Alton Day Services project has been nominated as a `sustainable development pilot' project. The design of a sustainable school at John Hunt of Everest will be a key criteria in the appointment of the partner contractor for the project. The nursing care project is also reviewing the opportunities to build as much as possible off-site.

Energy consumption has been included as a Best Value Performance Indicator for the first time this year. Specific PIs have also been included as a measure in the department's Performance Management plan (see report elsewhere on the agenda).

The procurement of electricity is also subject to a range of options including the supply of green electricity. Two contracts have been awarded in the last 6 months. One provides electricity exempt from the Climate Change Levy (CCL) and in light of the significant savings involved the second contract was let to the lowest cost option (brown electricity). A further contract is due to be let later this year and a wide variety of bids, which include the supply of `green' electricity will be sought.

3.

Key Objectives and Performance - Conclusion

3.1

Overall, there is clear evidence that the objectives established for the Strategy are being adhered to and delivering significant benefits. While, arguably it would be more interesting to say something original about the Strategy, its greatest impact and benefits remain that it is a sustainable

vehicle for providing comprehensive and cohesive programmes of work

aimed at reducing liabilities, maintaining the estate in a safe manner, and providing a means by which the competing demands of the estate can be reconciled.

3.2

The report elsewhere on the agenda relating to performance management provides another perspective from users and occupiers of the buildings.

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4.

Strategy and Objectives for 2003/04

4.1

The objectives mentioned above in paragraph 2.1 remain valid for the next 12 months. These should be endorsed by the Panel and recommended to the Executive Member for Policy and Resources for approval.

4.2

Maintaining the Built Estate is analogous to `ski-ing uphill' - you are moving but slowly. The reduction in the number of temporary buildings and the elimination of Ballard warm air heaters from schools during the last decade (which removed considerable liabilities) illustrates this concept in practice. The allocations in the budgets from revenue and capital repairs elsewhere on the agenda have been developed from this framework and the above mentioned objectives.

5.

Key Activities for 2003/4

5.1

The major programmes of work are set out for agreement in the reports on the budgets elsewhere on the agenda. There are, in any one year, a range of key activities that need to be considered and planned. It does however need to be recognised that as local allocations have increased for schools, the County Council has considerable assets that are dependent upon local funding and spending decisions.

5.2

Social Services

5.2.1

The original strategy for investment of £7.1 million in elderly persons' homes is nearing a conclusion with £458,000 remaining for works associated with the Corporate Risk Assessment. The programme for the provision of 500 new nursing care beds includes further provision of about £10 million for refurbishment of elderly persons' homes. Discussions are beginning with the Director of Social Services with regards to other packages of work that should be included in the Strategy. The repair and refurbishment of Children's Homes would be a priority.

5.3

Recreation and Heritage

5.3.1

The programme for the provision of Discovery Centres has already been widely discussed. This would act as a helpful trigger to review maintenance liabilities at libraries and other buildings used for recreation purpose. This provides a useful opportunity to seek improvement to the Estate, complemented by suitable repair strategies. A programme will be developed over the next two years or so.

5.4

Education Services

5.4.1

The buy-back arrangements with schools secured a long term partnership between the County Council and its schools with regard to building

maintenance. These arrangements have been further consolidated through health and safety audits and the recent agreement for secondary school headteachers to contribute greater resources towards specialist services.

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5.4.2

Looking ahead, several complementary activities will be the focus for developing these arrangements:

· consolidation of the new `Primary Schools' team within Property Services

· implementation of schools funded, and schools delegated capital work

· ensuring the aggregation of local funding with landlord's budgets

· further enhancing customer services and support to schools with regard to property activities

The levels of investment in schools and the number of staff employed in these activities is higher than at any other time. The managerial emphasis will for several years be on planning and delivering, and ensuring that best value is received from current levels of investment.

Recommendation(s)

That the Panel recommends to the Executive Member for Policy and Resources:

(i)

that the key objectives of the strategy be endorsed for 2003/4

(ii)

that the budget allocations for 2003/04 (identified in items 8 and 9 on the agenda) be based upon the strategy and its objectives.