AGENDA ITEM 14
COUNCIL
12 MAY 2009
RE-PROFILING OF THE PRIMARY CAPITAL PROGRAMME INVESTMENT PLAN AND APPROVAL OF A BUDGET FOR THE LILLIPUT CE VC FIRST SCHOOL: REPORT OF THE PORTFOLIO HOLDERS FOR “BUILDING SCHOOLS FOR THE FUTURE” AND CHILDREN AND YOUNG PEOPLE
1.PURPOSE
To seek Council’s views on the re-profiling of the above and approval of a budget for the Lilliput CE VC First School of £2.1 million.
- DECISION REQUIRED
That Council be recommended to approved the re-profiling of the Primary Capital Programme Investment Plan and a budget for the Lilliput CE VC First School of £2.1 million.
- BACKGROUND/INFORMATION
3.1At its Meeting on 14th April 2009 the Cabinet considered this issue as part of the Council Budget Monitoring Statement. (Joint Report of the Strategic Director and Head of Children and Young People Services Strategy Quality and Improvement that was considered by Cabinet is enclosed for Members’ information).
3.2Cabinet was advised that the Primary Capital Programme Investment Plan for the expansion of Lilliput CE VC First School from 2 forms of entry to 3 forms of entry with effect from September 2009 onwards needed to be re-profiled as the costs were greater than the initial high level estimate but offered better value for money and a more beneficial long term solution from an education perspective.
3.3We refer to paragraph 5 of the appended Report where the options considered are detailed.
3.4The Officer failings in underestimating the costs and some high-level lessons learned from this were noted. It is apparent that the Service Units concerned did not have sufficient staff with the necessary experience, knowledge and skills to carry out this kind of task. Plans are now in place for the recruitment of appropriately qualified and experienced staff to take forward this and other similar projects.
3.5A review has been called for detailing what led up to this situation, an assessment of the lessons learned, including accountabilities, and recommendations for improvement. We would wish a report on these matters to be considered by the Children’s Services Overview and Scrutiny Committee in due course.
- FINANCIAL IMPLICATIONS
4.1As detailed at paragraph 4 of the attached Report. Members are asked to note that funding allocations for 2011/12 and 2012/13 will be confirmed when the modifications to the initial Primary Strategy for Change are approved by the DCSF. (Please note that the DCSF’s original intention to confirm these allocations by 30 April has not been fulfilled).
- LEGAL IMPLICATIONS
5.1There were no significant legal implications.
6.EQUALITIES IMPLICATIONS
6.1The best outcome for children at Lilliput CE VC First School from September 2009 is to fund the expansion of the 2 forms of entry (60 places) to 3 forms of entry (90 places) as a priority for the first 2 years of the Primary Strategy for Change and Investment Plan.
7.CONCLUSION
7.1We are seeking Council’s approval to re-profile the Primary Capital Investment Plan in order to increase the budget for Lilliput CE VC First School Project from £1.3 million to £2.1 million funded from the funding allocation for 2009/10 and 2010/11.
7.2The Department for Children’s Schools and Families (DCSF) has advised by email on 30 April 2009 that primary capital funding allocations for 2009/10 and 2010/11 (i.e. the second phase of the Primary Capital Funding) will be confirmed in due course and that whilst funding beyond this has yet to be allocated, the national baseline has been set at £500M a year. Based on this, it is reasonable to assume, at this stage, that sufficient future funding will be received to meet the current commitments for Lilliput and Hillbourne.
.
Councillor Mike White,
Portfolio Holder for “Building Schools for the Future”
Councillor Tony Woodcock
Portfolio Holder for Children and Young People
BOROUGH OF POOLE
CABINET
14 APRIL 2009
JOINT REPORT OF THE STRATEGIC DIRECTOR AND HEAD OF CHILDREN AND YOUNG PEOPLE’S SERVICES – STRATEGY, QUALITY AND IMPROVEMENT
PRIMARY CAPITAL PROGRAMME: FUNDING FOR LILLIPUT CE VC FIRST SCHOOL PROJECT
1.PURPOSE
1.1To update the Cabinet on the development of the capital project required to expand Lilliput CE VC First School from 2 forms of entry (60 places) to 3 forms of entry (90 places) with effect from September 2009 onwards.
2.DECISION REQUIRED
2.1Cabinet recommend to Council;
1)approval to re-profile the Primary Capital Programme Investment Plan and approve a budget for the Lilliput CE VC First School of £2.1m. This decision will be subject to confirmation by DCSF of future funding for the primary capital programme being confirmed at the end of April 2009. The impact of this will be that the Hillbourne scheme would need to be funded from allocations forecast to be received in 2011/12.
3.BACKGROUND
3.1 In June 2008 the Council approved the Primary Strategy for Change and Investment Plan. Expanding Lilliput CE VC First School from 2 forms of entry (60 places) to 3 forms of entry (90 places) with effect from September 2009 onwards was approved as a priority for the first two years of the Programme.
3.2The latest school pupil forecasts show that over the next five years at least the demand for Reception places will increase to the extent that an additional 5 forms of entry (150 places) in Reception will be needed by September 2011. The Council has a statutory duty to secure sufficient school places within its area.
3.3Parkstone, Penn Hill and Canford Cliffs are key areas of growth in 0-4 year olds. Courthill First School and Lilliput CE VC First School have been over-subscribed for the past three years and have experienced significant excess demand for school places for 2009.
3.4Accordingly, for the 2009/10 school year it has already been agreed that the Published Admission Number (PAN) of Lilliput CE VC First School will be increased by 1 form of entry (30 places) to provide additional places in Year R.
3.5In November 2008 the Cabinet approved a number of actions to increase the number of school places in the Primary phase. These actionsincluded for consultation to be undertaken on the proposal to expand the School from September 2009 onwards.
3.6The six-week consultation period commenced on 5th January and closed on 13th February 2009. The consultation process involved the circulation of a document to parents and carers of children at the school, school staff, headteachers and governors of all Poole schools, parents of children in early years settings, diocesan authorities and neighbouring local authorities. A public meeting was held at the school on Wednesday 4th February 2009.
3.7The outcome of the consultation was reported to the Capital Programme Board on 19th February 2009 and the Portfolio Holder for Supporting Children and Young People approved the recommendation to publish statutory notices.
3.8Statutory notices were published on 12th March 2009 and the closing date for responses is 8th April 2009. Cabinet will consider the proposal at its meeting on 14th April 2009 and will need to be satisfied that the capital required to implement the proposal is available.
4.DEVELOPMENT OF THE CAPITAL PROJECT
4.1 The initial broad budget allocation for the project in the Primary Capital Programme Investment Plan was based on a desktop feasibility study undertaken in Spring 2008 for the development of the Primary Strategy for Change. The feasibility study was based around the use of mobile classrooms to provide additional capacity while modifications were made to the main school building.
4.2 It was recognised at this stage that the projects prioritised for the first two years of the Programme would need to be worked up in more detail before the Primary Strategy for Change Investment Plan was submitted.
4.3In November 2008 the DCSF advised Poole that the Primary Strategy for Change had been approved, subject to modifications. This approval confirmed the funding allocations for the first two years of the Programme. The overall budget for the first two years of the Programme was approved by Council:
Confirmed Income:
Primary Capital Programme allocation 2009/103.0m
Primary Capital Programme allocation 2010/115.3m
LA formulaic 2009/10 and 2010/110.6m
School Devolved Capital funding0.2m
Total9.1m
Initial Funding Allocation:
Hillbourne School and Nursery7.8m
Lilliput CE VC First School1.3m
Total9.1m
4.4Funding allocations for 2011/12 and 2012/13 will be confirmed at the end of April 2009 when the modifications to the Primary Strategy for Change are approved by DCSF.
4.5A Project Team comprising officers from CYPS SQI and Property Services, the headteacher and a governor of the school has been established to work with the consultant architect to develop the desktop feasibility study into project proposals.
4.6This group has identified a workable and fit for purpose solution that addresses the existing problem with circulation and accommodation shortfalls such as the need for a studio and sufficient administrative and staff accommodation. The scheme will also meet the objectives of the Primary Capital Programme to create world-class facilities equipped for 21st Century learning.
4.7The cost is greater than the initial high level estimate but offers better value for money and a more beneficial long term solution from an educational perspective.
4.8It has been identified that it will be necessary to split the works into two phases:
Phase 1 (Spring/Summer 2009)
-Provision of the modular accommodation and associated enabling works
-Creating a Reception classroom from the existing ICT suite and move the ICT suite to an existing Year 3 classroom
-Clearing the existing Reception and Year 1 classrooms in readiness for the start of the Phase 2 works
-Upgrading the public footpath to allow the main parent/pupil entrance to the school to be moved to the side entrance
-Preparatory works for fire access improvements
Phase 2 (2009 – 2013)
-Remodelling and extending the school building to group classrooms in year groupings for 3 FE
-Addressing an accommodation shortfall need for a studio and improving circulation within the building
-Extending and improving staff and admin accommodation and creating a new main entrance
-Removal of the modular accommodation
-Completing the fire access improvements.
4.9Property Services have advised that the cost estimates for the scheme are as follows:
Phase 1£0.5m
Phase 2£1.2m
Contingencies at 25%£0.4m
Total£2.1m
5.OPTIONS CONSIDERED
5.1In order to manage the cost of the proposed scheme the Project Team has critically reviewed two options as alternatives.
Option 1 – revise the scheme
5.2Savings could be achieved if one or all of the following were cut from the scheme.
ICT suite – Ofsted identified ICT as a strength of the school. The school has no plans to remove its ICT suite at this stage.
Studio – according to DCSF design guidance the school is entitled to a second hall. For a 3 FE school not to have a studio would have an adverse impact on curriculum delivery and on the organisation and management of the school for dining and lunchtime activities.
Fewer temporary classrooms – four classrooms are proposed when five would ideally be needed. The temporary classrooms are required to accommodate the additional form of entry from September 2009 and also for decant while the works are being carried out to the main school building. It would be impractical to reduce the number of temporary classrooms over time because the costs of decommissioning and removal would be high. Second hand modules would also be considered through the tender process, which may achieve some savings. It has been established that the mobile units located at Whitecliff would not be suitable for use as Primary school classrooms.
Staff accommodation - the current staff room is undersized and could not accommodate the additional staff that will result from the expansion of the school. There is also no space for staff to undertake planning, preparation and assessment.
Admin accommodation – the area of admin accommodation proposed in the scheme are the minimum according DCSF design guidance.
5.3The Project Team concluded that any savings achieved by revising the scheme would compromise the objectives of the Primary Capital Programme.
Option 2 – provide temporary accommodation only
5.4This would provide only a short-term solution and it would not be possible to implement the expansion of the school in the long term. Some temporary accommodation would be required after 2013 when the school becomes an Infant school.
5.5It would be advisable for the Council to consult again on the proposal to expand the school as parents could claim that they had been misled in the recent consultation as they had been told that the school would be extended and adapted with permanent accommodation.
5.6 The Primary Capital Programme funding could not be used to fund temporary accommodation except as part of a capital scheme.
6.LESSONS LEARNED
6.1The fact that the costs of this project have been underestimated so significantly is very poor. Responsibility for this lies with officers of the Council. Councillors were advised that the estimate was reasonable as the basis for planning the project and bidding to government for funds to support its implementation.
6.2This experience shows two key lessons. First, that the Council's ambitions and obligations outstretched its capacity to deliver in terms of staff with the necessary experience, knowledge and skills. Second, consequent to this that a high level estimate based on a brief that has not been researched or consulted on presents a very high level of risk. Responsibility for defining and mitigating this risk lies with officers of the Council in CYPSQI and Property Services overseen by a Strategic Director.
6.3In future this kind of risk should be mitigated by these measures:
- Ensuring that staff with the necessary experience, knowledge and skills are in place to advise the Council appropriately and to implement its decisions
- Avoiding the use of "high level" briefs as the basis for "high level" estimates in the first place
- Instead it is preferable to research and develop a brief prior to seeking an initial estimate of costs. Any brief should be tested or challenged for its ability to provide an appropriate solution that all relevant parties will accept and for its fitness for purpose in providing a basis for an estimate of costs.
- In circumstances where using a high level brief for a high level estimate is unavoidable e.g. in responding to very short deadlines for bids for funds from the government, special measures must be put into place such as the use of extraordinary levels of contingency funds e.g. 200%, or guarantees from all relevant stakeholders that the design of a building will be adjusted to fit within the budget allocated to it.
6.4At present CYPSQI and Property Services do not have sufficient staff with the necessary experience, knowledge and skills to mitigate these risks effectively. Resources are in place in the Council's budget for 2009/2010 to enable appropriate staff to be recruited. Recruitment is being planned now.
7.CONCLUSION
7.1It is proposed that thePrimary Capital Programme Investment Plan should be re-profiled in order to increase the budget for the Lilliput CE VC First School project from £1.3m to £2.1m.
7.2The project to build the new Hillbourne Community School and Nursery will not be delivered within the first two years of the Primary Capital Programme and the expenditure will therefore slip into the second two years of the Programme. The additional funding for the Lilliput CE VC First School project would be funded from the slippage in the first two years.
7.3The priorities and spending profile for the second two years and future years of the Programme will need to be reconsidered and revised in the light of the urgent need to provide additional school places in the Primary phase. Reports on these issues will be presented to the Capital Programme Board over the coming months.
Andrew Flockhart
Strategic Director
Stuart Twiss
Head of Children and Young People’s Services – Strategy, Quality and Improvement
Contact officers:
Nicola Keynes
Senior Education Officer (Planning and Development)
01202 633691
Background reports:
Schools for the Future – Transforming Education in Poole – Primary Capital Programme (May 2008)
Future need for Primary school places (October 2008)
Lilliput CE VC First School – Outcome of Consultation (February 2009)
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