The Vale of Glamorgan Council

Cabinet : 3rd December 2008

Director of Learning and Development

Re-Development of Cowbridge Comprehensive School

Purpose of the Report

1.             To seek approval to commence the construction and re-development of Cowbridge Comprehensive School.

Recommendations

1.             That Cabinet approve commencement of the construction and re-development of Cowbridge Comprehensive School.  In accordance with the budgeted affordability discussed in Paras 4 to 16, the Council proceed with the £16.5 million phase of the development immediately and continue to identify the funding necessary to finalise the development by September 2010 or as soon as possible thereafter.

2.             That Cabinet approve that the Director of Legal, Public Protection & Housing in consultation with the Director of Finance, ICT & Property be authorised to prepare, complete and execute the appropriate contractual details with Carillion in relation to Phase 1 of the construction and redevelopment of Cowbridge Comprehensive School.

Reasons for the Recommendations

1.             To complete the re-development project at Cowbridge making the school fit for purpose whilst at the same time discharging the Council's statutory responsibilities in respect of school buildings.

2.             To ensure that appropriate contractual arrangements are in place.

Background

2.             Davis Langdon were appointed as the Council's Project Managers to lead the external design team in September 2007.  They completed the initial design stages of the school such that a full planning application was submitted in the Summer of 2008 and subsequently approved in November 2008.

3.             In July 2008, using the New Engineering Contract (NEC) Professional Services Contract, Carillion were appointed as the contractor to complete the design of Cowbridge Comprehensive School and then subsequently construct the new school using the NEC Engineering and Construction Contract.  The benefits of the New Engineering Contract in terms of value for money and cost control were reported to Cabinet in July 2008.   At present, beyond finalisation of the design stage and associated costing, the Council is not committed to the construction stage.

Relevant Issues and Options

4.             Davis Langdon and the design team have designed and planned the re-development of Cowbridge School.  The design allows for a single phase development within a maximum targeted budget of £21.5 million.  However, in order for the single phased development to be delivered, it is a requisite that the Council have secured the £21.5 million in full.

5.             A full breakdown of the £21.5 million costs are available on request.  The programme provides £205,800 for a temporary sports hall and a contribution of £300,000 towards fixtures, furnishings and equipment.  The temporary sports hall will be required until the summer of 2010.  Although temporary, the sports hall is nevertheless a robust structure with a life expectancy in excess of 25 years.  It is envisaged that the temporary sports hall would be re-located to another school once the re-development of Cowbridge was complete.  The school would be co-located on a single site via new build, with playing fields being provided adjacent to the school.  The canteen and administration block, together with the three existing newer teaching blocks would all be refurbished.  There would be a high degree of landscaping, with new car and bus parking arrangements, supported by new access roadways.

6.             With regard to Fixtures, Furnishings and Equipment, it is estimated that the maximum cost would be £600,000.  It has always been envisaged that part of this cost in relation to loose fixtures, furnishings and equipment (i.e. £300,000) would be funded from elsewhere within the education budget.  For instance, the £300,000 could be funded from reserves in the first instance and clawed back from the schools' split site allocation which will cease when the school operates from a single site.  Currently the split site allocation is equivalent to almost £90,000.

7.             In order to ensure affordability in respect of the availability and timing of resources, Davis Langdon and the design team also prepared a phased delivery.  Phase 1 of this approach is costed at a maximum of £16.5 million.  A full breakdown of these costs are available upon request.    The Phase 1 costings includes the temporary sports hall (£205,800) which can subsequently be used at another school together with a contribution of £125,000 towards Fixtures, Furnishings and Equipment.  The maximum requirement for Phase 1 Fixtures, Furnishings and Equipment would be £450,000.

8.             The £16.5 million phase of the development would include the same level of new build as the full £21.5 million scheme with the school buildings being co-located on a single site, as well as the same level of car parking, bus parking and access roads.  There would also be the provision of a new canteen within the existing administration block.  However, the £16.5 million phase does not include completion of the playing fields so that the school would need to continue to use the playing fields adjacent to the Townmill Road site.  This would mean that the school would retain a portion of their split site allocation.  Also there would be limited refurbishment of the existing blocks. There would also be a reduction in landscaping. 

9.             Excluding inflationary consequences, it is estimated that once the £16.5 million phase is completed, finalising the development could cost a further £6.48 million bringing the total cost to deliver the facilities required to £22.98 million.  Final costs would depend upon the time-scale for completing the development.

10.        In terms of prioritising work not included within the £16.5 million scheme, Davis Langdon and the design team have recommended the following:-

·        Refurbishment of existing buildings

·        Playing fields

·        Landscaping

11.        The cost of the above works will be dependent on when the works are carried out and will need to be contracted when funds are available.

12.        Both the £21.5 million and £16.5 million developments provide a high level of cost certainty.  With respect to the £21.5 project, 89.28% of the construction cost is fixed and will not change.  The 10.72% costs that are still variable will be capped at the current budget levels.  For the £16.5 million development, 92.58% of the construction cost is fixed and will not change.  The 7.42% of costs that are still variable will be capped at current budget levels.  The £21.5 million scheme provides for a client contingency of nearly £500,000 which is a prudent level for a construction contract of this type, whilst the £16.5 million scheme only provides for a contingency of around £120,000.  In term of the management of risk, risk registers for both options have been prepared.

Resource Implications (Financial and Employment)

13.        To date the Council has identified a total of £16.5 million secured funding.  This is summarised in the table below.

14.        As Members are aware, the Cowbridge Trust is in the process of obtaining appropriate advice to enable detailed discussions with the Charity Commission to take place with a view to requesting that the Commission consent to any sale proceeds generated from the possible sale of the Trust land at the Lower School Site be reinvested into the redevelopment and construction of the Upper School Site.  

15.        The Council has had very limited success with respect to the generation of capital receipts.  The only current possibility relates to the disposal of the sixth form building and adjacent land which will be vacant once the school is re-developed.  However, it is unlikely that this would realise more than £0.5 million and possibly significantly less in the current climate.

16.        The use of prudential borrowing to generate the shortfall of £5 million funding, would commit the Council to an annual revenue repayment of £0.5 million for a period of up to 25 years.  In light of the severe financial pressures facing the education and school budgets, and indeed the Council as a whole, prudential borrowing would represent a high risk strategy.

17.        The single phased option of £21.5 million provides for a contribution of £300,000 towards furniture and fittings and a contingency of nearly £0.5 million.  The first phased option of £16.5 million provides a contribution of £125,000 towards furniture and fittings and a contingency of just under £0.12 million.  It is estimated that Fixtures, Furniture and Equipment could be as high as £600,000 for the £21.5 million option and £450,000 for the £16.5 million option.  The differences of £300,000 and £325,000 respectively would need to be met from education reserves and cessation of split-site funding.

18.        Efforts are currently in hand to identify the additional funding to deliver the full development of the school for September 2010 or as soon as possible thereafter.  However, in order to secure the £9.0 million School Buildings Improvement Grant, and not lose it, the Council must decide to proceed with at least the £16.5 million scheme.

Legal Implications (to Include Human Rights Implications)

19.        Approval to proceed to the construction stage of the project would require a standard form legal contract between the Council and Carillion Building (NEC Contract).

Crime and Disorder Implications

20.        Improved School Buildings would have a positive effect on Crime and Disorder.

Equal Opportunities Implications (to include Welsh Language issues)

21.        Improved School Buildings will enhance equality of opportunity.

Corporate/Service Objectives

22.        The re-development of Cowbridge School is a corporate priority.

Policy Framework and Budget

23.        This is a matter for executive decision.

Consultation (including Ward Member Consultation)

24.        Relevant Ward Members have been consulted.  One Member is in full support of the project and hopes that the full amount needed to deliver the whole scheme can be identified.  Another Member is fully supportive of a single phased approach.

Relevant Scrutiny Committee

25.        Lifelong Learning.

Background Papers

Contact Officer

Martin Donovan

Head of Strategic Planning and Performance

01446 709161

Officers Consulted

Responsible Officer:

Bryan Jeffreys

Director of Learning and Development