Archived decisions

Agenda Item 11

HAMPSHIRE COUNTY COUNCIL

Decision Report

EXECUTIVE SUMMARY

1) Summary of Decision Area

1.1 This report seeks approval to the proposed programme of works for the New Deal for Schools (NDS) and capital repairs budgets for 2009/10.

2) Issues Covered in Report

2.1. The programmes of work within the overall funding allocations proposed in the finance report for NDS and capital repairs budgets for 2009/10

2.2. The use of these programmes to support energy and carbon dioxide emission reductions.

3) Recommendations

That the Panel advises the Executive Member for Policy and Resources that:

a) The programmes of NDS and Landlord's capital repairs for 2009/10 as set out in Appendices 1 and 2, be approved.

b) The contribution the Landlord's repairs and maintenance programmes make towards reducing carbon dioxide emissions be noted.

MAIN REPORT

1) Overall resources available

1.2 The Department for Children, Schools and Families (DCSF) also asked local authorities for help in December 2008 to accelerate capital spending earmarked for 2010/11 and bring forward schemes to be committed in 2009/10. In consultation with the Director of Children's Services a proposal was put forward to the DCSF to accelerate up to £3.7m of NDS funding (of which £2.484m was attributable to Condition.)

1.3 Table 1 below summarises the key sources of funding.

Table 1: Total capital repairs resources

Notes:

(1) 2011/12 allocations have not yet been confirmed by the Government but have been included at 2010/11 levels in line with corporate budget assumptions.

(2) NDS totals shown before the impact of the proposed acceleration. Should this be approved the 2009/10 and 2010/11 NDS budgets would be £10.196m and £3.927m respectively and the overall funding totals £29.568m and £20.227m respectively.

2) Landlord's Capital Repairs Funding 2009/10 to 2011/12

2.1 This report focuses on the element of the Landlord's capital repairs funding that is used to address identified health and safety priorities connected with the Corporate Risk Assessment (CRA) for the built estate. For 2009/10 the proposed CRA expenditure amounts to £10.928 million (excluding fees).

3) Consideration of Landlord's and Capital Repairs NDS Condition Programme Priorities for 2009/10 and Project Selection

3.1 The Landlord's capital repairs programme is used to support a planned approach to capital investment in the built estate. The key objectives of this approach are to:

· Tackle the backlog of building and engineering repairs and maintenance

· Reduce risks and improve the health and safety performance of buildings

· Modernise buildings and make them fit for purpose

· Improve efficiency and reduce recurring/running costs

· Improve the quality of the built environment for communities and future generations

· Help reduce the impact of greenhouse gas emissions in the environment and supporting the Government's climate change agenda.

3.2 The Landlord's NDS and capital repairs programmes are both directed at managing the backlog of repairs and maintenance liabilities identified in the Asset Management Plan's (AMP's) for schools and the corporate estate. A separate report was shared with the Panel in July 2008 concerning the overall backlog position and this will be updated at a future meeting of the Panel.

3.3 NDS Programme: The NDS condition resources are used against a set of AMP priorities outlined below:

1. External walls and windows

2. Mechanical services

3. Roofs

4. Electrical services

5. External decorations

3.4 Significant progress has been made at improving the schools estate since the inception of the NDS funding in 2000. However, despite having invested nearly £120 million of NDS condition funding over the last eight to nine years, the backlog of repairs and maintenance in the schools sector is still significant. The next major opportunity beyond the NDS programmes should be the DCSF's Building Schools for the Future (BSF) investment strategy which aims to renew/modernise every secondary school in the country. Appendix 1 shows the proposed programme of NDS condition projects for approval in 2009/10. This proposed programme is broadly in proportion to the main areas of building and engineering liability for the schools estate.

3.5 Landlord's Capital Repairs Programme: Although the Landlord's capital repairs programme is directed at the backlog of repairs and maintenance, the primary driver for this element of expenditure is aimed at managing health and safety risks relating to the built estate. Assessment of the various risks is made each year through the County Council's CRA process. This process is audited annually and provides a robust mechanism for making investment decisions each year. A Landlord's programme of capital repairs investment for 2009/10 is set out in Appendix 2.

3.6 The School's Forum have agreed to commit £1 million of their `headroom' funding towards installing SMART Meters in schools. SMART metering will assist with the carbon trading position for schools as well as local energy management and support the various sustainability elements associated with the school curriculum.

3.7 A further element of the Landlord's capital repairs programme reflected in table 1 above is in respect of the Sure Start "early years" capital grant for repairs associated with the provision of Children's Centres.

4) Opportunity for Improved Energy Performance of Buildings and Reduced Carbon Dioxide Emissions.

4.1 Around 80% of the County Council's built estate was constructed before thermal performance standards became part of the Building Regulations. Appendix 3 helps to illustrate this position. Where possible, the investment of capital repairs resources should be used to help improve the thermal performance of the building stock. Table 2 below provides an indication of the potential opportunity for energy savings and reduced carbon dioxide emissions.

Table 2: Distribution of NDS Programme for 2009/10 showing Opportunity for Energy and Carbon Dioxide Emission Reductions

5) Outline Options

5.1 The NDS and capital repairs programme contained in this report are produced from interrogation of the AMP data and available funding directed at the areas of highest liability across the built estate.

6) Options Analysis/Comparisons

6.1 The Strategic Risk Assessment for the built estate gives the analysis of the spread of funding for investment. Refer to the Revenue and Capital Repairs budget report found elsewhere on the agenda.

7) Conclusions

7.1 The allocation of NDS Condition Funding for the next three years brings the total allocation of NDS Condition Funding to nearly £120 million since 2000.

7.2 The level of NDS modernisation funding is falling and the funding allocation for 2010/11 is some 32% lower than for 2007/08. This will not impact on the continuation of the strategic investment programme in schools. One of the next opportunities for further major investment in secondary schools will come from the DCSF's `Building Schools for the Future' programme.

7.3 The available capital funding falls short of the overall condition liability and backlog of repairs and maintenance, which means that risks associated with the building stock cannot be eliminated. Hence the importance of the CRA mechanism for making investment decisions in the built estate. The affordable funding levels have, however, allowed significant capital investment through the CRA process.

CORPORATE OR LEGAL INFORMATION:

COMPREHENSIVE RISK & IMPACT ASSESSMENT:

Race and Equality Impact assessment

Race and equality impact assessment has been considered in the development of this report and no adverse impact has been identified.

Crime prevention issues

The County Council has a legal obligation under Section 17 of the Crime and Disorder Act 1998 to consider the impact of all the decisions it makes on the prevention of crime. This strategy for the built estate will, establish revenue and capital investment programmes that positively support managing and reducing crime and disorder in the community. The principal mechanisms for achieving this is  through the County Council's vandalism/ arson reduction work as well as capital investment for improved fire precautions - upgrading existing buildings and fire detection systems. 

Climate Change

How does what is being proposed impact on our carbon footprint/energy consumption?

This report details a range of Landlord's capital repairs that will improve and upgrade the thermal performance of buildings and the energy efficiency of engineering services that will provide the opportunity for local managers to reduce energy consumption and carbon dioxide emissions. Table 4 in the report gives an approximate quantification of the energy and carbon dioxide emissions benefits. Significantly, the report identifies that the Schools Forum is to commit £1 million pounds of funding towards the installation of Smart meters to aide improved local management of energy.

How does what is being proposed consider the need to adapt to Climate Change and be resilient to its large term impacts?

Whilst the programmes  in this report focus principally on mitigation measures, other major work is taking place to adapt buildings for climate change e.g. work to Ashburton Court and in the future work to develop BSF programmes.