Archived decisions

HAMPSHIRE COUNTY COUNCIL

Decision Report:

1. Executive Summary

1.1. This report provides a regular update on the major projects currently being progressed.

1.2. The report highlights key issues with the following schemes:

· Hampshire Workstyle

· Building Schools for the Future (BSF)

· Fire Precaution Works at six Older Person's Homes (OPH's)

· Queen Elizabeth II Court (formerly Ashburton Court)

2. Hampshire Workstyle, Havant Public Service Village

2.1 Background

The Hampshire Workstyle programme, which was reported to the Panel in July 2008, is now well underway. The Ashburton Court development has acted as a catalyst for office accommodation and other property consolidation programmes.

2.2 Havant Public Service Village

2.2.1 One particularly innovative approach, reported to Cabinet in outline on 23 February 2008, relates to the development of a new partnership with Havant Borough Council. The strategy involves :

· the creation of new flexible public space in Havant through the construction of a purpose-built atrium attached to the existing civic campus;

· the introduction of a workstyle approach to the management and use of space and resources (similar to that which is now in place in the new Elizabeth II Court complex); and

· improved customer access with service integration where beneficial to both organisations and stakeholders.

2.2.2 Fundamental to this would be the co-location of approximately 250 County Council staff who work in the Havant area alongside their Havant BC (HBC) counterparts in the Borough's offices. The offices would be remodelled to create a largely open plan modern space in HBC's offices. Hampshire's existing offices will be disposed and the value reinvested in the project.

2.2.3 The proposal involves the use of capital funding of £5.1m from the cross-government fund managed by the Department for Children, Schools and Families (DCSF), together with contributions from Havant Borough and the County Council. The DCSF have agreed their grant on the basis that the project will ensure improved outcomes from children, young people and families in the area.

2.2.4 The specific proposal is for the creation of a new `Public Service Village' concept at the Havant Borough offices. The new-build atrium space will not only deliver a range of public services and contact opportunities, but will also provide the opportunity to integrate access to a number of key third sector organisations.

2.2.5 Work is currently underway between the key managers of both organisations to scope the service and efficiency opportunities, and to identify the operational benefits that this project will facilitate. The proposal fits well with the Hampshire Senate's objective of strengthening co-operation at the two tier level in order to enhance public services.

2.3 Costs and Funding

2.3.1 As indicated above, the overall funding package is being supported by a major capital grant from the DCSF.

2.3.2 The funding proposal for the building and infrastructure project is as follows:

£m

DCSF Cross-government fund 5.1

Capital Contribution, HCC 2.5

Capital Contribution HBC 3.0

HBC Maintenance fund 1.26

Total identified 11.86

2.3.3 Subject to agreement by Cabinet, the County Council would provide it's capital contribution through the disposal of assets, and potentially prudential borrowing may be required in the first instance. It is proposed that the DCSF grant funding and the Policy and Resources capital contribution, together amounting to £7.6m should be managed through Policy and Resources capital programme. The procurement of the construction project will be from within the IESE procurement framework (managed by the County Council) and a project appraisal will be submitted to the Executive Member P&R in due course.

2.3.4 Discussions are now also underway to ensure that the necessary financial accounting, management and reporting structures are in place between the respective organisations.

2.4 Governance

2.4.1 As this is a joint project, appropriate governance is now in place and a new Joint Management Board is being convened. Among others, representation from the County Council will include Councillor Kirk (Executive Member for Children's Services) and Councillor McIntosh (a local member to the Havant Area) , Director of PBRS & IT, Deputy County Treasurer and Assistant Director for Children's Services.

2.4.2 From Havant Borough, attendees will include Councillor T. Briggs (Leader), Chief Executive, and two corporate directors.

2.4.3 In addition, a Joint management Steering group is now in place and working effectively, and a number of key workstreams are being formed.

2.5 Shared Services

2.5.1 Alongside this development, the County Council and Borough Council are jointly exploring opportunities to develop shared services.

2.6 Timescales

2.6.1 The DCSF requires the new atrium to be constructed by September 2011, and the refurbishment and occupation of the offices is likely to take a further 6 months to achieve, though this particular element of the programme is subject to further review.

2.7 Communications

2.7.1 A number of high level communications arrangements are in place with staff and managers, and consultations with local members will commence shortly.

3. Building Schools for the Future

3.1 This section gives details of progress of the government's Building Schools for the Future (BSF) programme for Hampshire and outlines the next steps towards implementation of the initial BSF wave in the Havant area.

3.2 Background

3.2.1 BSF is a national initiative intended to rebuild, remodel or refurbish all secondary schools, including secondary age special schools and education centres, in England over a 15 year period, beginning in 2005. This renewal programme must take place within the context of a locally developed agenda to transform secondary education to meet the demands of the present century.

3.2.2 The Department for Children, Schools and Families (DCSF) has set in place a detailed framework within which BSF operates. Delivery is managed through Partnerships for Schools (PfS), which has been set up by the DCSF to oversee the initiative nationally and to work with individual local authorities once they are included in the programme. In addition, from October 2009, PfS is to assume responsibility for the management and delivery of all school building and refurbishment programmes and day-to-day responsibility of schools capital programmes, including the Primary Capital Programme (PCP).

3.2.3 It is possible that Hampshire could attract investment through BSF totalling over £1bn, probably over a period of 8 - 10 years. The scale of this investment is unparalleled and the work required to ensure that this is successful is far-reaching, ranging across many disciplines and involving a large number of stakeholders. It is a one-off opportunity for the County Council to make a transformational impact on secondary education in Hampshire and to modernise provision for the next generation. Local authorities are expected to contribute financially to at least 10% of the overall programme costs through maximisation of investment opportunities, e.g. by reinvesting capital receipts.

3.2.4 When BSF was announced in 2003, the prioritisation of resources nationally was based on deprivation factors (GCSE performance and free school meal entitlement) rather than building need, as in the past. As a result, Hampshire was placed in Wave 7 and programmed to receive no funding until about 2011.

3.2.5 However, in March 2009, DCSF and PfS invited a number of authorities in waves 7-9 of BSF to submit a Readiness to Deliver statement to assist them in being able to assess those that were most likely to move their BSF projects forward swiftly and efficiently.

3.2.6 Following the submission of the Statement of Readiness on 8 May 2009 and a meeting between County Council Officers, DCSF and PfS on 2 July, Hampshire was notified on 15 July that it is to join the programme, along with five other new authorities. The first area to benefit from this investment will be Havant.

3.3 Planning and Delivery

3.3.1 Project governance - the project governance is now well established. The Chief Executive chairs the Project Board. Members of the Board include the County Treasurer, Director of Children's Services and other senior managers, with school governor, head teacher and post-16 college representatives.

3.3.2 An Implementation Group, chaired by the BSF Project Director, has been in place since May 2008 and commissions the work of ten sub-groups which are developing various aspects of the programme. Schools and Havant Borough Council are represented on the main and sub-groups.

3.3.3 A Steering Group, chaired by the Assistant Director Property Services has also been established to monitor resources, costs, programme and progress and advise the Project Board as necessary on these matters.

3.4 Funding and Costs

3.4.1 The planned delivery model for BSF established by central government envisages funding split more or less equally between capital grant (for refurbishment work) and Private Finance Initiative (PFI) credits (for most new builds). There is a presumption that authorities will set up Local Education Partnerships (LEPs) in partnership with the private sector to achieve effective procurement and project delivery.

3.4.2 BSF funds are allocated through a pupil number driven formula on the basis that 50% of the floor area within each local authority's BSF wave can be "new build", i.e. completely new facilities will be built. The remaining floor area is funded so that 35% can be remodelled and 15% undergo refurbishment. The floor area is calculated using the national space guidelines for secondary schools in DCSF Building Bulletin 98 for the current number of schools in that particular wave. Where the new build element on any one school site exceeds 70-75%,the programme assumption in accordance with HM Treasury value for money (VfM) guidance is that these projects will be delivered through PFI. Typically, it is accepted that schools with a lower new build percentage offer better VfM if procured under Design and Build arrangements.

3.4.3 Although two sites in the first project, Park Community School and Warblington School, will have a substantial amount of rebuilding, the current assumption for Havant is that no project will be delivered through PFI. In Hampshire as a whole, the current assessment is that fourteen sites out of a possible ninety-six eligible for BSF investment will be completely rebuilt (estimated to be between 75-100% new build) and the main focus will be on extensive remodelling and refurbishment

3.4.4 The first project comprises ten sites, with significant focus on the Leigh Park area. There are six secondary schools, three special schools and an education centre. Current assessments have established that there is a significant gap, of about 25%, between the Funding Allocation Model (FAM) used by PfS and the likely cost of the project. A mitigation strategy has been identified based on:

· enhancements through contributions from Children's Services and Policy & Resources Capital Programmes;

· schools' Devolved Formula Capital from the participating schools;

· efficiency savings through the proposed procurement route;

· capital receipts from already agreed land disposals; and

· by investigating further measures, such as agreeing that school balances for those schools in each wave are locked in and potential surplus place removal prudential borrowing against Schools Budget.

3.5 Design and procurement

3.5.1 As noted above, the default model for delivery of BSF is the establishment of a LEP and procurement of new build schools through a PFI contract with a private consortium to design, build, finance and operate that part of the estate.

3.5.2 However, it is possible that the scale of this interim wave would not prove particularly attractive to the private sector and, for this reason and in the context of Hampshire's experience of large-scale building projects and innovation in procurement, an alternative model has been put forward in the Statement of Readiness to Deliver and developed in discussion with PfS. This envisages an arrangement, in which the County Council and potentially other south-east authorities, rather than the private sector, would be the majority partner and would make use of existing contractor arrangements through the Improvement and Efficiency South East (IESE) framework to procure the work.

3.5.3 Agreement to this proposal is being negotiated with PfS and if approved will prompt a major procurement exercise that will be developed concurrently with the first BSF project.

3.5.4 The economies of scale and benefits to be gained from multi-authority collaboration are already being seen in the BSF One School Pathfinder programme, through which nine south-east and London authorities are procuring major secondary school capital projects using the IESE framework and under the direction and management of HCC and IESE officers.

3.6 Co-location fund and BSF

3.6.1 The County Council has recently been successful in securing grant from the DCSF Co-location fund for a number of projects. Two of these are located within the first area of BSF investment - the Havant Public Service Village (referred to earlier in this report) and a mixed-use community building at Park Community School. Both will be developed in advance of BSF investment.

3.6.2 The new model for public service provision created in the PSV will allow both the county and borough councils, in collaboration, to provide a range of services delivered in a more co-ordinated and complementary way from a new multi-purpose facility to support and sustain the broader ambitions of the BSF programme and Hampshire's Children and Young Persons Plan.

3.7 Education vision

3.7.1 BSF offers the opportunity to make broad-based changes to provision which take account of major national and local policy initiatives in the delivery of Children's Services. These have been set out in the County Council's Children and Young People's Plan 2009-12 and are consistent with central government policies set out in the recent White Paper "Your, child, your schools, our future: building a 21st century schools system", which in turn builds on the principles in the national Children's Plan. A summary of key points relevant to BSF is set out below:

· the principle of collective responsibility for all children

· the need to secure equality of opportunity, with focus on under-achieving groups

· the need for local collaborations among schools and other providers of children's services

· opportunities for wider community regeneration, in conjunction with local partners

· evolution of local governance arrangements in context of Hampshire Children's Trust and emerging local children's partnerships

· curriculum developments and personalisation, e.g. 14-19.

3.8 Next steps

3.8.1 The next steps will include development of the schools' and the County Council's Strategies for Change (SfC) and the Outline Business Case (OBC). This work will build on the principles set out in the Statement of Readiness to Deliver.

3.8.2 A delivery plan has been developed to enable completion of this next phase of work by the end of the calendar year. It is divided into four phases as follows:

· Preparation phase: June - September 2009

· Workstreams commissioned to develop the content and deliver seminars to take place in the Autumn Term 2009;

· Briefings for School Improvement Partners (SIPs), secondary strategy officers, 14 - 19 teams and leadership development teams;

· Consultation with further education providers over engagement in the development of the SfC; integration of development of the proposed academy to replace Staunton Community Sports College;

· Development of models for local children's partnerships, which will be the local collaborative bodies of partners delivering children's services within the Hampshire Children's Trust;

· Development of a revised strategy for achieving social inclusion.

· Development phase: September - October 2009

· Commissioning meeting with each school to involve head teachers, senior leadership team and governing bodies along with BSF team and local Children's Services officers.

· Seminar programme to explore options and develop strategies

· School support programme - 2 days per school over 8 weeks (tailored to need)

· Consultation and publication phase - November/December 2009

· Change Management workstream seminar (incorporating local headteachers) to agree final draft of SfC and to ensure alignment with SSfCs

· School focused stakeholder consultation

· Approval by BSF Project Board and Member(s)

3.9 Tasks and resources require

3.9.1 A number of tasks will need to be undertaken to complete the SfC and SSFC's and ensure the necessary engagement and involvement of partners

3.9.2 The central government investment that will be received for the first project is likely to be between £70- 5 million including fees, FFE and ICT. The final figure will depend on the outcome of negotiations between PfS, the County Council and the participating schools over the precise level and extent of works at each site.

3.9.3 Over the four-year period of the project, the anticipated resource cost, including professional fees, will be in the region of £9 million, of which 65% is likely to be able to be recovered from the capital investment.

3.10 Future national strategy for BSF

3.10.1 By virtue of its size, Hampshire will figure in all the remaining waves of BSF, with areas of the county being prioritised according to relative need, as required by the DCSF. The Local Children's Partnerships and 14-19 consortia areas, which reflect existing area-based collaborative frameworks, are well suited as the basis for BSF planning.

3.10.2 Planning for Hampshire's next project - the remainder of the Havant schools and those in Gosport is being developed, concurrently with the first wave and discussions have begun with the Rushmoor and Bordon schools, the third area.

4. Fire Precaution Works at Six Older Persons' Homes (OPHs)

4.1 The Panel considered in March 2009 a project appraisal for the major refurbishment of Copper Beeches OPH, plus some fire precaution works at Cherry Orchard OPH, both homes are located in Andover. The same report detailed the intention to carry out further fire precaution work at six other OPH's. A £1m overall budget was approved for this work with funding identified from Adult Services' 2009/10 Capital Programme (£500k) and Policy and Resources 2009/10 Fire Precautions budget (£500k). In order to keep the works within budget, some adjustments to local fire safety management arrangements have been agreed at some homes.

4.2 The work has been procured using the IESE\HCC Tier 3 contractor framework. An Expression of Interest enquiry was sent out during July 2009 to respective contractors on the Framework, then arranged in two packages broadly organised on an east/west geographic split across the county. The individual projects have differing levels of complexity and therefore cost, but the approximate value of each package will be approximately £0.5m. The package split follows:

Package 1 (East)

Thurlston House, Fleet

Bulmer House, Petersfield

Addenbrooke, Gosport

Package 2 (West)

Nightingale Lodge, Romsey

Cornerways, Kings Worthy, Winchester

Cranleigh Paddock, Lyndhurst

4.3 Two contractors have been appointed to deliver the programme;Ralls Building Group Limited to Package One and Messrs R V Dart & Son Limited to Package Two. The intention is to run the two packages in parallel, with the contractors working together to maximise benefits wherever possible.

4.4 An initial `planning for delivery' workshop was recently held with both contractors and further site visits and design development planned during August 2009. The projects are now in the detailed design stage and procurement is programmed to run through to the end of November 2009. It is anticipated that the individual project `start on site' dates will be phased through January 2010, but with some starting earlier if possible. Each project is expected to have between a 12 and14 week construction period.

5. Queen Elizabeth II Court (formerly Ashburton Court)

5.1 The final phase of completion works to the project consisting of refurbishing the Link to EII Court South, constructing a new goods lift and completing the lay-by and pavement works on Sussex Street, are programmed to complete around the beginning of December. As part of this, the current main entrance paving is required to be relaid to achieve appropriate surface water drainage. This work will necessitate the closing of the pedestrian access from Sussex Street so that work can be undertaken safely. The Link to EII Court South will act as the principal access during this work - estimated to take up to six weeks. Appropriate communications will be issued to staff and Members to explain arrangements in this final stage of the completion works.

Recommendation:

That the Panel notes the progress on each of the major projects.

CORPORATE OR LEGAL INFORMATION:

Links to the Corporate Strategy

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 in this report have no impact on the prevention of crime.

Climate Change:

All the projects referred to in this report are and will be sensitive to future changes in climate and are principally naturally ventilated and use construction technologies that minimise solar gain and energy consumption.