Hampshire County Council

Buildings, Land & Contracts Panel Item

24 October 2003

Revenue and Capital Repairs 2003/04

Report by the Director of Property, Business and Regulatory Services

1

Introduction

1.1

The purpose of this report is to:

· provide an update on the budgetary position relating to revenue and capital repairs

· confirm that the spending requirements associated with the New Deal for Schools Condition Funding have been fulfilled

· highlight a number of issues for approval by the Executive Member for Policy and Resources including:

· amendments to the approved programme of New Deal for Schools projects

· funding of fire precautions improvement works at Courtbourn, Bishops Waltham House and Fleming House Older Persons Homes

· the virement of £500,000, in support of the corporate risk assessment, from Capital Repairs to:

· revenue repairs (£300,000)

· Property Services (£200,000)

2

Budget Position 2003-04

2.1

The extent of commitments to date is shown in Appendices 1and 2 (the budget figures for all but revenue include approved carry-forwards as well as the capital programme provision for 2003-04)

2.2

The commitment on the revenue budget is 44.4%, which is very much in line with the fact that 44% of the financial year has elapsed. However, this does show all funds delegated under LMS, and to Foundation Schools, as fully committed. If these were stripped out, the level of commitment would be lower at around 30%. Given levels of demand, and the fact that clearly none of the winter contingency has been committed, final expenditure is again expected to be close to budget.

2.3

Appendix 2 shows that the level of commitment on Major Repairs is 27.6%, which is slightly higher than at a similar stage in 2002-03.

Expenditure is relatively low, and reflects the high priority that has been given to the implementation of New Deal for Schools projects before implementing capital repair projects. It is for this same reason that the only commitments on traditional capital repairs relate to projects associated with access initiatives.

3

New Deal for Schools Condition Funding 2002-03

3.1

The County Council's allocation for 2002-03 was £12m, which equates to £10.43m for works and £1.57m for fees. It was a requirement of the full government funding that all payments were made to contractors by 31 August 2003. This was in fact achieved, enabling the fees to be charged in full. In total, more than 175 schemes were undertaken as a result of the 2002-03 NDS Condition Funding. The windfall gain for NDS funding has helped enormously to match increasing liabilities in the estate during this decade.

4

Amendments to the Approved Programmes of NDS Condition Fund Projects

4.1

In April, the Executive member for Policy and Resources approved the allocation of £45,000 of NDS resources for surfacing and fencing at various primary schools. Using the approved £45,000, and resources made available by lower tenders on other schemes, a programme totalling approximately £70,000 is proposed:

· Crondall Primary - playcourt surfacing £10,000

· Beaumont Junior - fencing £10,000

· North Farnborough Infant - playground surfacing £7,500

· Waite End Primary - resurface car park £8,000

· Baycroft Special - resurface playcourt £14,000

· Haselworth Primary - boundary wall structural repairs £10,000

· Marchwood Junior - boundary fencing £11,000

· Resourcing strategies are in place for all these schemes to ensure spent by 31/09/04

4.2

It is proposed to include unallocated NDS funds to carry out the re-roofing of Ash Block at Kempshott Junior School - estimated cost £28,000.

4.3

The approved programme also includes £100,000 to replace pipework at Fort Hill Secondary School. Detailed examinations have shown that more extensive works are required, costing some £230,000. It is therefore proposed that this enhanced project be undertaken, which can be achieved by rescheduling schemes in the 2003/04 programme.

4.4

£60,000 was originally approved for boiler replacement at Noadswood Secondary School. Following further investigations it is appropriate to include the replacement of the boiler for the Sports Hall together with associated oil to gas conversion works. This has increased the cost of the scheme to £151,000 which can be met by rescheduling NDS schemes in 2003/4.

4.5

The NDS programme also identified £260,000 for re-cladding at Hiltingbury Infant School. Following the introduction on new Building Regulations in April 2002 a number of new standards have to be met including specialist glazing and thicker insulation panels, which have contributed to an cost increase in recladding schemes. The scheme at Hiltingbury is now estimated to be £380,000 and the increase will be met by rescheduling other schemes in the programme.

4.6

The NDS programme includes a number of re-cladding schemes at SCOLA schools. A series of detailed structural inspections at a sample of SCOLA schools has indicated that remedial work is required to address inadequate wall tie fixing of the wall panels to the structural steelframe or the internal wall constructions. This affects masonry-clad SCOLA buildings, and it is recommended that all such buildings are strengthened. Initial estimates suggest that the cost of this would be in the region of £3.1m. To address this would require an allocation of some £600,000pa. For the five financial years from 2004/5 to 2008/9.

5

Virement re Corporate Risk Assessment

5.1

In May 2003, Buildings, Land and Contracts Panel considered, and the Executive Member for Policy and Resources then approved in June, the allocation of resources in support of the highest priority property management issues identified under the corporate risk assessment. The resources available for this purpose are in the capital repairs budget, whereas £500,000 is required for revenue purposes. Of this, £300,000 is for revenue repairs (mainly to enhance the strategic consultants allocation), and the balance of £200,000 for Property Services, as resources are required to inspect and assess the condition of buildings.

5.2

It is proposed that the virement should, at this stage, affect only 2003-04. This is partly because not all the resources identified to support the CRA will recur, and partly because the outcome of the CRA process will evolve over time, and the needs will therefore not necessarily be consistent from one year to another. The £300,000 for revenue repairs relates to residential and other non-educational properties, and as such will not be delegated to schools.

5.3

In May this year approval was given to commence fire precaution surveys for the Built Estate based on the outputs from pilot surveys of three Social services Older Persons Homes. It is proposed to plan for fire precaution improvement and upgrading works at Courtbourne (£255,000), Bishops Waltham House (£285,000)and Fleming House Older Persons Homes charged to the Landlords Programme, subject to an internal risk review. The work at Bishops Waltham House will also embrace work for the Social Services' Intermediate Care Bed Strategy. It is intended to install a sprinkler system at Fleming House as part of the Nursing Care Bed Strategy. Consideration is also being given to the incorporation of sprinkler systems at Courtbourne and Bishops Waltham House. Further work is required to evaluate technical and financial issues before any proposals are made.

6

Conclusion and Recommendations

6.1

The revenue repair and maintenance budget is likely to be close to the cash limit for the year. NDS Condition Fund requirements have been fulfilled; since this has been a high priority, it is likely to arise in a carry forward of capital repairs at the end of the financial year.

Recommendations

That the Buildings, Land and Contracts Panel advises the Executive Member for Policy and Resources that:

(i) the budgetary position, including the fulfilment of NDS conditions, be noted

(ii) the proposed amendments to the approved programme of NDS projects identified in section 4 be approved

(iii) the virement of £500,000 capital repairs to revenue repairs (£200,000) and Property Services (£300,000) in 2003-04 only, be approved.

(iv) the funding for fire precautions improvement works at Courtbourne and Bishops Waltham House be approved.

(iv) any underspending in capital repairs arising from the re programming of NDS priorities, be carried forward to next year.