Hampshire County Council

Buildings Land and Procurement Panel

23 January 2007

New Deal for Schools Modernisation (Condition) Programmes and
Funding for 2006/07 and 2007/08

Report by the Director of Property, Business and Regulatory Services

1

Summary

1.1

The Department for Education and Skills (DfES) has advised the County Council of an additional tranche of New Deal for Schools (NDS) Modernisation funding for 2007/08. In addition to the two year NDS funding allocation that was reported to the Panel in April 2006. This additional funding will enable further work to reduce the backlog of repairs and maintenance for schools.

1.2

The purpose of this report is to :

· Update Members on the allocation of NDS Condition funding for the 2006/07 and 2007/08 financial years

· Propose the priorities for the allocation of 2007/08 NDS Condition funding

· Propose an enhanced level of NDS capital repairs programmes for schools for 2007/08.

This report also confirms the progress to date on the delivery of the 2006/07 NDS Condition programme.

1.3

The use of NDS Condition Fund monies will improve the quality of school buildings in Hampshire maximising the well being of the users of the buildings and enhancing the quality of place.

2.0

Allocation and Split of NDS Modernisation (Condition and Suitability) Funding 2007/08

2.1

Members will recall from the report in April 2006 that the DfES confirmed the current two years of NDS Modernisation funding in the sum of £23.33 million pounds for 2006/07 and £23.67 million for 2007/08. The DfES has recently announced a further additional tranche of NDS Modernisation funding for Hampshire in 2007/08 of £11.834 million, bringing the total of Modernisation funding for 2007/08 to £35.504 million.

2.2

As in previous years the Modernisation funding is allocated to local authorities according to the DfES's assessment of need and, as far as the original allocation of NDS funding is concerned, comes with a specific direction as to how the allocations are to be proportioned across primary and secondary schools. With regard to the additional allocation of NDS funding for 2007/08, the County Council can decide how to invest this in line with its schools' asset management plans. The DfES has, however, asked that authorities give special consideration to the use of this additional funding in two specific areas:

1. Energy and water saving measures and other sustainability initiatives for schools as a priority, and

2. School kitchens where there are building needs in relation to the delivery of healthy meals.

2.3

The Executive Members for Education and Policy and Resources agreed in July 2003 that the Modernisation funding should be further split between suitability (improvements) and building condition work in the ratio of 46% and 54% respectively. On this basis, table 1 below summarises the amount of Modernisation funding allocated to condition over the next two years and the breakdown between primary and secondary schools.

2.4

It can be seen from the table that whilst the total allocation of NDS Condition funding for 2007/08 is £19.175m the Council is in a position of only being able to take up £16.622m. This is as a result of a change in the way the Government provides support for this programme from full grant funding to borrowing approvals. Due to the County Council's position as a "floor" authority the Government's mechanism for funding the associated borrowing costs brings no additional resources in the grant settlement to the County Council. A decision was therefore taken by the Cabinet at the meeting on 24 July 2006 not to take up the full borrowing allocations for 2007/08 for all programmes affected by this change. The additional allocation of £6.392m has been provided as 100% grant and as such is unaffected by this decision.

Table 1 : NDS Condition Allocations 2006/07 and 2007/08

Year

Primary

£M

Secondary

£M

Total Allocation

£M

Allocation take up

Date to be spent by

%

£M

Original allocation 2006/07

6.572

6.028

12.6

100

12.6

Aug 07

Total for 2006/07

£12.6M

£12.6M

Original allocation 2007/08

6.572

6.211

12.783

80

10.23

Aug 08

Additional allocation 2007/08

6.392

6.392

100

6.392

Aug 08

Total for 2007/08

£19.175M

£16.622M

2.5

It is worth noting that the additional allocation of NDS funding for Hampshire in 2007/08 is once again the highest single award in the country. It is, however, being given as an advance of investment and that future allocations of funding for the period 2008/09 to 2010/11 will be reduced accordingly. The allowable take up of NDS condition funding for 2007/08 equates to around 5.5% of the total backlog of repairs and maintenance at schools. To put this in perspective, the current 5 year backlog of repairs and maintenance for Hampshire schools stands at just over £300 million. Overall, since the introduction of the Schools Asset Management Plan (AMP) in 2000 the County Council has received a total of over £95 Million of NDS funding for addressing the backlog of repairs and maintenance at its schools.

3.0

Consideration of Schools AMP Condition Priorities And Sustainability/Climate Change Issues

3.1

A comprehensive assessment of the condition liabilities for Hampshire schools was submitted to the DfES in 2000 in the form of a Schools AMP. The AMP is updated annually to reflect work undertaken, inflation and changes in condition resulting from resurveying 20% of the schools' estate each year.

3.2

An elemental breakdown of the overall liability is shown in Appendix 1 from which it can be seen that the top 5 areas of AMP concern and, therefore, priorities are:

1

external walls and windows;

2

mechanical services;

3

roofs;

4

electrical services; and

5

external redecoration.

3.3

The above priorities have been agreed with the Schools AMP Forum so there is widespread acceptance by schools that these are the principal areas for investment in terms of the condition of buildings. These areas of priority have, therefore, been used to formulate the proposed Landlord's NDS Condition programme for 2007/08.

3.4

It is necessary to give special consideration to the DfES' request for investment in school meals kitchens and energy and water saving measures. The request for investment in kitchens is principally directed at authorities that have building needs in respect of delivering healthy meals, which as far as Hampshire schools are concerned is currently being assessed in conjunction with HC3S. Investment in sustainability matters is given further consideration below.

3.5

The DfES has recently published a consultation paper setting out, amongst other things, its aspiration for all schools to be models of energy efficiency and renewable energy, showcasing wind, solar and bio-fuel sources in their communities and maximising their use of rainwater and wastewater resources by 2020. The difficulty with investing the current round of NDS funding in new technologies such as wind and solar power is that it would do little to address the backlog of repairs and maintenance for the schools estate. The Panel will be aware from the Strategy for the Built Estate 2006 report in April of the "maintenance time bomb" effect on the Council's school buildings and the significant challenges in managing the backlog of repairs and maintenance. For this reason it is proposed to invest the whole of the NDS condition funding in tackling the backlog of repairs, but to do so in such a way that makes a positive contribution to the DfES desire for investment to be directed at energy saving measures. Such a strategy will also contribute to the Cabinet's reduction targets for energy and carbon dioxide (CO₂) emissions and, in turn, support the Government's national and global agenda on climate change and the reduction of greenhouse gases.

3.6

An example of the impact that the NDS programme is having on the climate change agenda can be illustrated by the SCOLA 1A re-cladding programme. To date around 66,000 square meters of SCOLA cladding has been replaced and upgraded with a more thermally efficient window walling system. In theory this is creating the opportunity for energy savings of over 18 m KWh a year and CO₂ reductions of around 3,600 tonnes per annum. The 2007/08 condition programme is estimated to generate opportunity for a further annual savings of around 6 million KWh of energy and over 1,700 tonnes of CO₂ emissions from the Council's buildings. The realisation of these opportunities for energy and CO₂ reductions are of course inextricably linked to the ways in which buildings are used and managed locally. A general trend seems to be pointing towards an increased demand in energy use and therefore CO2 emissions. For example the Annual Sustainability report to the Cabinet in September 2006 showed a 1% increase in CO2 emissions over the previous year. Any energy saving measures therefore need to be balanced against increasing demands for more extensive use of IT facilities and electrical equipment, greater community use of buildings, fluctuations in the size of the estate and the rate of the dilapidation of existing buildings.

4.0

Project Selection And NDS Capital Programme For 2007/08

4.1

Over the last 6 years the Panel has supported a strategic use of NDS funding in a bid to move away from patch and mend repairs towards a more planned approach for capital investment in the built estate. The proposed programme of work outlined in this report is based on this approach, the benefits of which include:

·

reduced risks and improved health and safety performance of buildings;

·

long term reduction in the backlog of repairs. (The strategy report to the Panel in April 2006 refers.);

·

improved efficiency and running costs, ie energy performance of buildings and fewer breakdowns;

·

reducing the impact of greenhouse gases on the environment and supporting the Government's climate change agenda by creating opportunities for reduced energy consumption and carbon dioxide emissions (supporting the Cabinet's sustainability targets);

·

over time, a reduction in recurring maintenance needs, ie reduced demand for external redecoration and improved servicing of engineering plant;

·

improving the quality of the built environment for generations to come and enhancing the public standing of the County Council in the Community.

4.2

Table 2 below summarises that scope of the NDS 2007/08 programme as well as providing an indicative estimate of energy and CO₂ savings for each of the main priority areas of investment.

Table 2: Summary Of Proposed NDS Condition Expenditure And Indicative Energy Saving And CO₂ Emission Reductions For 2007/08

Priority Category of Work

Proposed Expenditure £,000

% Value of Programme

Number of Schools benefiting from the Programme

Sustainability

Indicative Energy Saving KWh

Indicative CO₂ Reduction Tonnes

1.External Walls and Windows (SCOLA re-cladding and window replacements)

3,549

25.12

10

3.3 M

545

2.Mechanical Services (Boiler systems, heating and systems and underground mains)

2,577

17.80

29

2.4 M

1,104

3.Roofs

2,040

14.10

9

0.16 M

33

4.Electrical Services (Light, power, fire alarms and mains distribution)

1,302

9.00

46

0.1 M

41

5.External Decorations

1,495

10.30

30

6.Other Internal and External Works (Fire precautions and ceilings)* and paving

1,480

10.20

43

7.Contributions to Capital Scheme

300

2.10

tba

8.Miscellaneous (Kitchens, swimming pool strategy contingency and carry forward from NDS 2006/07)

1,746

12

Totals

14.489

100

5.96 M

1,723

* linked with electrical lighting renewals

The individual schemes of NDS work for 2007/08 are scheduled in Appendix 2.

4.3

Hook Infant and Junior Schools

4.3.1

Within the NDS programme this year is a major scheme of roofing work planned at Hook Junior and Infant Schools. Following recent survey work of the roof structure it has been found that major elements of the structure are at the end of their design life requiring early replacement and repairs of some of the principle structural components including patent glazing, vertical glazing and the composite roof panels. Replacement of the roofing elements will require full compliance with the New Part L (Conservation of Fuel and Power) of the Building Regulations, which will add to the cost of the work.

4.3.2

The scope of the works at Hook will include replacement of the existing patent glazing, replacement of the sheet roofing with low pitch roof cladding system, Brise Soleil translucent sheeting to be replaced and flat roof covering replaced.

4.3.3

It is proposed to allocate £1.4m from the NDS Condition budgets for 2006/07 and 2007/08 for the proposed replacement and repairs to the roof structures of the infant and junior schools.

Due to the nature of the works a planning application will not be required. Subject to the necessary approvals it is anticipated that the phased period of works will be as follows:

·

Christmas period 2006:

Initial survey

·

Easter holidays 2007:

Trial section of patent glazing

·

June 2007:

Erection of scaffolding/site preparation

·

July 2007:

Commencement of building works

·

September 2007:

Completion of building works

·

October 2007:

Scaffolding removal/site clearance

4.3.4

It is proposed that Mansells be appointed as the framework contractor for the works and the cost of the work be developed as a negotiated tender. Mansells have had early involvement with the feasibility and completed detailed investigation work during the summer of 2006.

4.4

External Decorations and Repairs

4.4.1

It is proposed to undertake the NDS funded element of this programme in line with previous years, by negotiating 9 packages of work with preferred contractors. This will allow a prompt start in April to maximise the optimum weather conditions for this type of work.

4.4.2

The performance of all the contractors who were awarded packages last year has been reviewed. Based on the outcome of this review it is proposed to negotiate the NDS packages of work for 2007/8 with the contractors listed in Appendix 3. As the packages are developed some variance in the list of schemes and values may occur.

4.4.3

A programme of additional redecoration schemes to be funded from Landlord's Capital Repairs funds will be developed over the coming months and reported to a future panel meeting. This additional programme will include competitively tendered as well as negotiated packages to provide benchmark costs for the negotiated works.

5.0

Progress with NDS Condition Programme for 2006/07

5.1

The Executive Member for Policy and Resources approved the NDS Condition Programme for 2006/07 in April 2006. The programme has to be fully completed and bills paid by August 2007. The programme is 33% completed and on track to be fully complete in time to meet the DfES's August deadline.

5.2.

Since reporting to the Panel in April 2006 a further urgent scheme has been developed to replace the boiler plant at Oak Meadow School. It is proposed to fund this scheme from the contingency element of the original NDS 2006/07 programme reported to the Panel in April 2006.

6.0

Conclusion

6.1

Once again the County Council has received one of the highest NDS Modernisation awards in the Country.

6.2

The combined effect of the original funding reported to the Panel in April 2006 and the additional allocation of NDS funding for 2007/08 will allow the Panel to recommend to the Executive Member for Policy and Resources an enhance programme of capital repairs for schools.

6.3

The DfES have indicated that it intends to claw back the additional funding from future years and overall the funding needs to be seen in the context of the total condition liability for the education estate, which is currently running at over £300m. The total 2007/08 annual NDS Condition allocation represents around 5% of the total liability for the schools estate and is about 4 times short of what it needs to be if the liability is to be eliminated.

6.4

The 2007/08 proposed programme will continue with the SCOLA Mark 1 re-cladding programme and bring the re-cladding programme to a position of being about 75% complete.

6.5

This year the programme will see over 29 boilers and heating systems being replaced or worked on and the start of a significant investment in replacing obsolete lighting systems and suspended ceilings. Opportunity will be taken to upgrade fire barriers within ceiling voids as part of this initiative.

6.6

Major replacement of structural roof components will commence at Hook Junior and Infant Schools as well as a further 8 major capital roofing schemes at other schools.

6.7

Overall the NDS programme for 2007/08 will generate a major opportunity for further reduction in energy use and CO₂ emissions - supporting the Cabinet's targets for sustainability as well as the Government's national and global climate change agenda. The programme is expected to generate opportunity for 6 million KWh of energy savings and a reduction of over 1,700 tonnes of CO₂ emissions per annum. Although the realisation of these savings is very much dependent on the way buildings are used and managed locally.

7.0

Recommendations

7.1

That the Buildings, Land and Procurement Panel advises the Executive Member of Policy and Resources that approval be given to:

1. The enhanced programme of NDS Capital repairs for 2007/08 following the confirmation of additional funding from the DfES.

2. The allocation of NDS Condition fund projects as detailed in Appendix 2.

3. Completing the major roofing work at Hook Junior and Infant School and to procure the work as a negotiated tender with the framework contractor, Mansells.

4. Including the boiler replacement work at Oak Meadow School in the NDS Programme for 2006/07.

LINK(S) TO CORPORATE STRATEGY

Yes

No

Hampshire safer and more secure for all

_

Maximising well-being

_

Enhancing our quality of place

_

This proposal does not link to the Corporate Strategy but, nevertheless, requires a decision because: N/A

Appendix 2

NDS Condition Programme 2007/08

Schemes Up to £50,000

Building

Stoke Park Infant

Roof Glazing

Engineering

North Waltham Primary

Replace boiler plant

Saxonwood Special

Replace fire alarm

St James Primary

HWS Improvement

Burghclere Primary

Replace hall heating

Sunhill Junior

Replace hall heating

Freegrounds Infant

HWS replacement

Eggars

Rationalise/replace CWS tanks

Staunton Park Secondary

Rationalise/replace CWS tanks

Wavell

Rationalise/replace CWS tanks

Hayling

Upgrade sub-mains

Swanmore Home Economics

Ballard replacement

Staunton Park Secondary

Replace HWS generators

Henry Beaufort

Rewiring

External Decorations

Marchwood Infant

Lakeside Special

Oakfield Primary

Upham Primary

St Swithuns Wells Primary

Milford on Sea Primary

Crookhorn CE (A) Infant

St Thomas More RC (A) Primary

Bidbury Junior

North Baddesley Junior

Baycroft Special

Newtown Soberton Primary

St Lawrence Primary

St Annes (A) Primary

St Marks CE Primary

Southwood Infant

St Bedes RC (A) Primary - Basingstoke

Grange Junior - Farnborough

West Tytherley Primary

Mill Hill Early Years

Knightwood Primary

Micheldever Primary

Hampshire Microtech and Early Years Centre

Various Primary Schools

Window renewals

Schemes Over £50,000 And Up To £100,000

Building

Contributions to capital projects

North Farnborough Infant

Roofing

Courtmoor Secondary

Redgra pitch

Brookfield Secondary

Sports hall re-clad

Toynbee Secondary

Redgra pitch

Contributions to capital projects (SC)

Noadswood Secondary

Re-roofing

Mountbatten Secondary

Drainage

Brookfield Secondary

Roofing

Engineering

Wildground Junior

Re-pipe heating system

Castle Primary

Replace boilers/cylinder and gas conversion

Titchfield Primary

Replace boilers/cylinder and gas conversion

Woodcott Primary

Replace boilers/cylinder and gas conversion

Hamble Primary

Replace boilers

Fair Oak Infant

Replace boilers

Winnal Primary

Rewiring (asbestos present)

Riders Infant

Replace boilers

Padnell Infant

Replace boilers

Padnell Junior

Replace boilers

Horndean Junior

Replace boiler

Baycroft Special

Replace boilers

Weeke Primary

Replace boilers

Perins Secondary

Replace boilers and watermains

Yateley Secondary

Replace u/g pipework and tanks

Fernhill Secondary

Replace boilers and underground mains

External Decorations

St Francis Special

Schemes Over £100,00 And Up To £250,000

Various Primary Schools

Fire precautions works

Bridge Centre

SCOLA 1 re-clad and roofing

Oakridge Infant

Phase 4 re-cladding

Various Primary Schools

Replace sewerage treatment plant

Elson Junior

Brickwork and roofing repairs

Marnell Junior

Underpinning

Various Primary Schools

Unplanned major engineering works

Building

Various Secondary Schools

Drainage and paving

Purbrook Park

Roofing

Engineering

Bedenham Primary

Replace boilers/cylinder/hw/cw/gas conversion

Haven Early Years Centre

Replace boiler and H&C pipework

T&I remedials

Cranbourne Secondary

Boiler room and asbestos removal

Thornden Secondary

Replacement boiler plant and controls

Alderman Quilley Secondary

Replace boilers and HWS boilers

Kings Secondary (deferred from 06/07)

Boilers

Various Secondary Schools

Upgrade electric supplies

Various Secondary Schools

Unplanned major engineering works

External Decorations

Crofton (F) Secondary

Hayling Secondary

Brookfield Secondary

Test Valley Secondary (F)

Neville Lovett Secondary

Schemes Over £250,000 and up to £500,000

Building

Queens Inclosure

Roofing and other repairs

Horndean Infant

SCOLA re-clad

Wildground Infant

SCOLA re-clad

Various Primary Schools

Lighting, ceilings and other electrical works

Icknield Special

Frogmore Junior

Cove Infant

Oakridge Infant

Oakridge Junior

Southview Infant

Rownhams Primary

Oakley Junior

Chineham Park Primary

Potley Hill Primary

Testbourne

Contribution to capital scheme - SCOLA and assc electrical

Various Schools

Ceilings, lighting and other electrical works

Hurst

Replace light fittings

Aldworth College

Portsmouth building

Brighton Hill

Science, history, drama and tech

Thornden Secondary

Switch gear and lighting

Schemes Over £500,000

Hook Infant and Junior

Re-roofing

Various Primary Schools

Roofing works

Yateley

Re-clad

Applemore

SCOLA re-clad

Cranbourne

SCOLA re-clad

Various Schools

Fire precautions works ceilings, fire barriers, doors and associated electrical works

Appendix 3

External Redecorations And Repairs

Contractor

Properties

Atkins

Marchwood Infant

Lakeside Special

Ferris

Oakfield Primary

Upham CE Primary

St Swithun Wells RC Primary

Milford on Sea CE Primary

Haylock & Pitman

Crookham CE Infant

St Thomas More's RC Primary

Bidbury Junior

North Baddesley Junior

Mitie

Crofton Secondary

Baycroft Special

Newtown Soberton Primary

St Lawrence Primary

St Francis Special

Pools

St Anne's RC Primary

St Mark's CE Primary

Southwood Infant

St Bede's RC Primary

Grange Junior (Farnborough)

West Tytherley Primary

Purkiss

The Hayling College

Mill Hill Early Years Centre

Richardson's

Brookfield Community

Tew Brothers

Test Valley Secondary

Knightwood Primary

Micheldever Primary

RG Warwick

Neville Lovett Community Hampshire Microtech and Early Years Centre