To present the report of the Head of Learning.
Minutes:
The report of the Head of Learning incorporating the combined Strategic Outline Case and Outline Business Case (SOC/OBC) to expand Ysgol y Graig by building a new Foundation Phase block and closing Ysgol Talwrn was presented for the Committee’s consideration and comment.
The Portfolio Member for Education, Libraries, Culture and Youth said that the SOC/OBC report is technical in nature and sets out the strategic, economic, commercial, financial and management grounds for expanding Ysgol y Graig by building a new Foundation Phase block and closing Ysgol Talwrn in line with the 21st Century Schools Business case process for capital funding for the project.
The Head of Learning said that the SOC/OBC sets out the case for the modernisation of the schools in the eastern part of Llangefni which is to be effected by building a new Foundation Phase block at Ysgol y Graig to accept the increasing number of pupils in the catchment area and to take pupils from Ysgol Talwrn which would then close. He referred to the key aspects of the proposal and the anticipated project costs along with the potential site for the new block, how the proposal is to be procured and the specification for the build. The financial case gives consideration to how the project will be funded and its overall affordability whilst the management case sets out the outline project plan and delivery schedule.
The Architectural Services Manager showed the Committee a plan of the potential site for the new Foundation Phase Block which was identified following a site evaluation exercise having particular regard to the need to site the new block as near as possible to the current Ysgol y Graig building. In explaining the plan, the Officer referred to the following considerations –
• The identified site for the new block is subject to confirmation.
• A detailed site survey has not been undertaken. However, as the site is very wet, it is likely that some extensive drainage engineering works will be required to resolve the land drainage issues on the site.
• The site is also likely to be subjected to intensive archaeological investigations to establish whether or not there are any potential archaeological features below ground.
• The works above as well as other possible works i.e. overhead powerline diversion could impact on the overall cost of the project.
• Other possible site options in the immediate area are being considered being mindful of the proximity factor.
• There are major traffic issues at the current Ysgol y Graig school site. The Highways Service has indicated that the traffic issues must be resolved for the complete campus as part of the project development which will mean a new car park to meet the minimum parking standards for schools that fulfils the requirements for both the existing school building and the new Foundation Phase block. The proposed scheme will see a new car park being sited between the existing Ysgol y Graig and the new Foundation Phase block which will serve both buildings.
The Committee considered the information presented and made the following points –
• The Committee noted that from the plan as presented it found it difficult to see how the two buildings – the current school building and the new Foundation Phase block will work effectively as one school entity in practice. The Committee noted that the two sites are not as close to each other as it would have liked thereby increasing the risk that the two buildings will be run as separate entities; this concerned the Committee.
• The Committee noted that the proposal involves locating a new car park in an area between the two buildings regarding which it had reservations from a safety perspective there being serious traffic issues in the area. The Committee questioned the suitability of locating the car park in this position.
The Interim Head of Highways, Waste and Property advised that when Ysgol y Graig was built originally it was designed in accordance with Welsh Government’s “green school” guidelines meaning it provided for the minimum parking requirement the intention being that pupils would walk to school there being a large housing estate close by. In practice, a large number of pupils are still brought to school by car with others from outside the catchment area also coming to Ysgol y Graig by car. Siting the proposed car park between the two buildings means that both are equally accessible from the car park whereas if the car park were to be located at the farther end, it would mean the pupils of the current school having to walk a greater distance.
• The Committee noted that providing its share of the costs of the project will in any case be challenging for the Authority. The Committee further noted that there are also project costs designated as “abnormal costs” due to site conditions. The Committee sought clarification of the risk of one or more of these costs escalating, thereby potentially affecting the whole project. The Committee noted in addition that if the costs of the project rise as a result of abnormal items it may have a wider impact on the overall funding for projects in other areas of the Island.
The Architectural Services Manager said depending on the final confirmed location of the new Foundation Phase block, some of the abnormal costs linked to site conditions may not materialise or may be mitigated. “Abnormal items” are included as a matter of course in the outline business case to be submitted to Welsh Government because if the projected costs exceed the Welsh Government’s design cost standards (cost per square metre) it will be due to these abnormal items. Notwithstanding, the Officer confirmed that there are risks attached to unforeseen site conditions. A site survey will be undertaken at the earliest opportunity and any works identified as a result of the survey will be factored into the Full Business Case.
The Head of Function (Resources)/Section 151 Officer said that the project above is funded from the resources allocated for Band B by the Welsh Government. Welsh Government will fund the costs up to a specified cost per square metre as well as the abnormal costs in accordance with what it deems reasonable. Any costs above that limit which it deems not to be reasonable will fall to the Local Authority. Should the Welsh Government accept the abnormal costs as reasonable and as costs which the Authority has to pay then that is likely to affect the amount of Band B funding which the Authority draws on for the project meaning there is potentially less resources for other projects in the Authority’s Band B funding envelope. However, it could be possible to transfer some projects to Band C for which funding is yet to be confirmed. An alternative funding option made available by Welsh Government is the Mutual Investment Model whereby a private partner builds and maintains the school with the Local Authority making an annual payment for use of the building for an agreed period. Welsh Government makes a contribution to the annual fee.
• The Committee noted that there is a need to provide additional schools places to accommodate the increasing number of pupils at Ysgol y Graig. The Committee sought clarification of whether it would be reasonable to consider reviewing the catchment area to enable pupils from the area to attend the proposed new school to replace Ysgol Corn Hir and Ysgol Bodffordd. Consequently a smaller extension to Ysgol y Graig might then be sufficient thereby reducing the cost of the project and potentially allowing the extension to be sited closer to the school.
The Head of Learning said that from a capacity perspective, both the extension to the Ysgol y Graig and a new school for Ysgol Corn Hir and Ysgol Bodffordd are required as planned. If the catchment area was changed to allow pupils from the area to attend the new school to replace Ysgol y Graig and Ysgol Bodfordd and the extension to Ysgol y Graig were to be reduced in size as a result, the new Ysgol y Graig school would have to be larger to accommodate the additional pupils which would drive the cost upwards offsetting any savings from reducing the size of the extension to Ysgol y Graig.
The Architectural Services Manager said that the capacity issues in the eastern and western parts of Llangefni means that changes need to be made to both the existing Ysgol y Graig and the existing Ysgol Corn Hir. Should the new school to replace Ysgol Corn Hir and Ysgol Bodffordd be completed sooner, it is possible that parents will chose to send their children to the new school. In any case proposed developments linked to the Coleg Menai campus mean that changes still need to be made to Ysgol y Graig.
• The Committee noted that at a time when the Council is facing a challenging programme of budget efficiencies over the next three years at least it is committing itself to a scheme of unsupported borrowing. The Committee sought clarification therefore of how affordable are the proposals in the combined SOC/OBC on top of the other schools modernisation schemes to which the Council has already committed itself.
The Head of Function (Resources)/Section 151 Officer said that it has been recognised from the outset that the school modernisation programme would entail costs to the Council. The increase in the Welsh Government’s contribution to the costs of each project in Band B from 50% to 65% is of great help to councils in implementing school modernisation schemes. Although there will be costs to the Revenue Budget in the form of the Minimum Revenue Provision (the minimum amount which the Council must charge to the Revenue Budget each year to cover the cost of borrowing and interest charges) the proposal does generate annual savings and the capital receipts from the sale of Ysgol Talwrn can be used as part of the Council’s contribution towards the costs thereby reducing the amount it needs to borrow to fund the project. It is unlikely that a capital programme to invest in schools whereby 65% of the costs of projects is borne by the Welsh Government will be made available again making it essential that the Council takes advantage of this opportunity to bring its school stock up to 21st Century standards; otherwise it is simply postponing the issue of modernising schools to a future date when it is probable the Council would have to fund the modernisation costs in full itself. The Twenty-First Century School programme is a long term investment programme whereby local authorities take out long-term borrowing to fund their school modernisation projects with the costs being spread out over a long term period/ the period during which a new school will operate.
Having scrutinised the SOC/OBC, the Corporate Scrutiny Committee resolved to recommend to the Executive that subject to its noting the Committee’s concerns regarding traffic, the siting of the parking provision and the challenge of making the existing Ysgol y Graig and the new Foundation Phase Block work as one school entity, it approves –
• The combined Strategic Outline Case and Outline Business Case (SOC/OBC) to expand Ysgol y Graig by building a new Foundatin Phase block and closing Ysgol Talwrn.
• Forwarding the combined Strategic Outline Case and Outline Business Case (SOC/OBC) to expand Ysgol y Graig by building a new Foundatin Phase block and closing Ysgol Talwrn to Welsh Government. (Councillor Lewis Davies abstained from voting).
NO ADDITIONAL ACTION WAS PROPOSED