MIDLOTHIAN SCHOOLS STRATEGIC ASSET MANAGEMENT
PRIMARY AND NURSERY

Following local government reorganisation in 1996, Midlothian Council inherited an education estate in need of improvement and renovation. From the beginning, the Council has strived, within its capital funding, to bring modest improvements to its school estate. This has taken the form of replacing temporary accommodation and the building of nursery and special needs classrooms. The Council has recently completed one new primary school, St Andrew’s in Gorebridge.

Whilst this strategy has improved our schools, the growing maintenance backlog is not being addressed. Nor is our goal of providing schools with the quality learning environment that our pupils and staff deserve. Our community facilities, whilst continuing to deliver a service to their local areas, do not meet the expectations necessary to attract more adults and young people into lifelong learning.

The success of the Dalkeith Schools Community Campus Public Private Partnership (PPP) has focused our strategy on improving the whole of our education estate and bringing it up to the standard that has been specified for the new campus schools. To bring equality to the Council’s schools, much will need to be done to achieve the high standards that have been set for the campus.

Unlike many other Scottish Councils Midlothian is expected to see a substantial rise in population of around 12% over the next few years. This will bring new housing developments into the area and the Council is working with the housing developers to take forward a strategy for developer contributions to provide new schools and extend others.

Currently there exists the opportunity to secure long-term revenue support from the
Scottish Executive for a second PPP project. This will enable the Council to commence implementation of the improvement strategy for the whole school estate, earlier than would otherwise be possible by using traditional funding.

Following the award of feasibility funding from the Scottish Executive in 2001, Midlothian Council commissioned a strategic review of its school estate. The aim of the study was to establish a long-term strategy for the provision and management of school accommodation, to ensure a systematic and co-ordinated approach to asset management, improve local decision making, prioritise investment and co-ordinate standards applied to the existing school estate and for schools to be provided through developer contributions.

Using the above funding the Council has carried out a rigorous review of its school accommodation, which highlights that the majority of the school estate is functionally and economically obsolete and so significant improvement to the school estate is a pre-requisite to supporting the delivery of education, now and in the future.

The analysis identified that over 65% of the Council’s school estate pre-dates the 1970s and that over 25% of the school estate was built prior to 1950. Combined with poor quality buildings, built in the 1970s and 1980s, a maintenance timebomb has been inherited that has started to impact on the delivery of education and, in the absence of significant well planned investment, will be a drain on scarce resources. In essence a large number of Midlothian schools are no longer fit for purpose and are expensive to run.

A Schools Property Strategy has been developed in order to guide the scope of the work required to improve the school estate. This strategy aims to move the estate towards a two stream model of primary schools, with integrated nursery and community accommodation, in order to improve the space utilisation and achieve more efficient, modern primary school provision. The secondary school sector will be based on the current complement of 6 secondary schools, two of which have already been replaced via the Dalkeith Schools Community Campus PPP. It is proposed that a further 3 will be refurbished and remodelled and one rebuilt. This current paper refers only to aspects of primary, nursery and community provision.

The Midlothian Schools Strategic Asset Management Plan has been developed by an internal project team which comprised representatives from Education, Finance, Legal and Property and was project managed by the Council’s Strategic Services Division. The internal project team was augmented by representatives of Headteachers, individual school Headteachers and external consultants.

Additionally Midlothian Council appointed a team of consultants, led by the Turner and Townsend Group as overall project managers and comprising of PricewaterhouseCooper (financial), Turner and Townsend (cost management) and Cooper Cromar (architects) to undertake the study, which included a review of the following aspects of the school estate:

• The educational context; aims, objectives and strategies
• Demographic projections; anticipated demand
• The existing school estate;
• Whether it is fit for purpose
• Building condition
• Accommodation suitability
• Location
• Key areas for change in the estate
• The preferred solutions for change
• The cost of change
• Implementation of the preferred solutions for change

Midlothian Council is committed to the use of the Public Private Partnership (PPP) procurement method, as demonstrated by the Dalkeith Schools Community Campus PPP Project, which is now completed. The award of further revenue support by the Scottish Executive for a second PPP project would permit the Council to bring a further significant proportion of Midlothian’s primary and nursery school accommodation up to a required standard. Additionally it is proposed that refurbishments of schools be carried out by borrowing and the use of developer contributions.

As indicated above, it is proposed that the Council move towards, where appropriate, providing two stream primary schools of approximately 14 classes for 7 primary stages with nursery provision, integration of pupils with additional support needs and community use facilities.

The provision of two stream primary schools will allow the Education Division to maximise the social, curricular and management benefits associated with schools, each with approximately 14 classes.

The social benefits:

The curricular benefits:

The management benefits:

4.2 GOREBRIDGE area:

Borthwick Primary School is situated on the edge of the small community of Borthwick, which is approximately two miles south east of Gorebridge. The school was built in 1870 and is a stone structure with slate covered pitched roofs which need renewed. The school has been refurbished internally in recent years but continues to have a restricted layout and lacks space for a number of curricular areas including physical education, music and learning support. The school office, staff facilities and Headteacher’s facilities are constrained. The school has two classrooms and a small general purpose area which is also used for dining. The school has no PE facilities. There is no community use of Borthwick Primary School. All catchment area pupils are transported to the school.

The current roll of Borthwick PS is 31 with a capacity factor of 62%. It is proposed that Borthwick Primary School be closed and that pupils be relocated to Stobhill Primary School for August 2004.

Stobhill PS currently has a roll of 118 with a capacity factor of 56%. The school has a planning capacity of 189 pupils and a theoretical capacity of 210. The school therefore has spare capacity to accommodate Borthwick PS.

Temple Primary School is situated on the main street of the village of Temple two miles south west of Gorebridge. The main school building was built in 1880 and has stone walls and a pitched slated roof. A timber framed extension was erected in 1920. The school is in need of refurbishment with particular needs identified for the renewal of windows, doors, heating system and roof repairs.

The school has a restricted layout and lacks space for a number of curricular areas such as physical education, music and learning support. The school office, staff facilities and Headteacher’s facilities are constrained. The school has two classrooms and a general purpose area which is also used for dining. There is no community use of facilities at Temple Primary School.

The current roll of Temple PS is 38 with a capacity factor of 76%. It is proposed to relocate pupils attending Temple Primary School to Stobhill Primary School for August 2004.

Stobhill PS currently has a roll of 118 with a capacity factor of 56%. The school has a planning capacity of 189 pupils and a theoretical capacity of 210. The school therefore has spare capacity to accommodate Temple PS.

Thornybank Nursery is located next to Woodburn Primary School and was built in 1975. The building is timber framed with a pitched felt roof.

The nursery, which accommodates 60 children morning and afternoon, had a minor refurbishment 6 years ago. The heating and hot water system is in need of replacement and the outside play surfaces are in need of renewal. The present nursery accommodation would limit the expansion of a wraparound- care service.

The proposal would be to relocate the nursery as a new extension on a refurbished Woodburn Primary School, funding coming from the Capital Programme.

Pathhead Primary School is situated at the south end of the village. The original building was erected in 1903 and extended in 1960 by the addition of two toilet blocks. Midlothian Council added a nursery class in 1999 and combined the nursery provision for Pathhead, Cousland, Cranston and Temple into one nursery class. The school roll has risen in recent years and the 4-classroom school is at capacity. The school lacks PE and other facilities and has serious restrictions in accommodation. The school building itself is in need of refurbishment with the replacement of windows and doors. The site is restricted and the play area very limited.

The opportunities for expansion are limited unless further ground is bought. It is therefore proposed that Pathhead PS be replaced with a new build school procured under PPP funding with an approximate completion time of 2006.

Cranston Primary School is situated on the outskirts of the village of Edgehead, two miles south east of Dalkeith. The school is on a small site with limited play area. The school buildings were erected in the early 1900s and have been added to with a free standing classroom extension.

This prefabricated building is isolated from the main building and presents security problems. The school is limited in size with 3 classrooms and a small hall. The buildings in common with the rest of the estate require refurbishment and the internal layout is restricted for the ancillary accommodation required by the curriculum, ie library, tutorial rooms, IT spaces etc. The Headteacher has no dedicated office accommodation or meeting room. Cranston PS currently has 57 pupils and capacity factor of 76%. Cranston is used by the WRI, the local guides and infrequently for other purposes. It is proposed that pupils attending Cranston Primary School should be relocated to Pathhead Primary School for August 2004 and additional temporary accommodation be provided at the school.

Cousland Primary School is situated in the village of Cousland approximately four miles east of Dalkeith. The school, which was built in the late 1960s, is on a small site with a playground in need of renewal. The roofs are flat and felt covered and are in need of renewal. External windows and doors are in need of replacements in the near future. The internal aspects of the school require refurbishment and as the layout is split level the buildings are not Disability Discrimination Act (DDA) compliant. Cousland PS currently has a roll of 37 with a capacity factor of 76%. Cousland has no community use of its facilities.

It is proposed that Cousland PS be closed and pupils relocated to Woodburn PS for August 2004. On completion of a new primary school at the Dalkeith Schools Community Campus the Cousland catchment area should be rezoned to this school.

Eastfield Primary School is located just north of the town centre in an area of public housing. The school was built in 1956 in two blocks with the main school building a 3 storey block. Both blocks have flat felt covered roofs. The school requires extensive maintenance including replacement of windows and doors, re-roofing and internal refurbishment. The school is not Disability Discrimination Act (DDA) compliant and would present difficulties in making it so with a 3 storey block.

It is proposed to build a new Eastfield/Ladywood 2 stream primary school on the site of one of the schools using PPP funding with an approximate completion time of 2006.

Howgate Primary School is located in the centre of the village of Howgate. The premises occupy a very small site with limited play area. The original building was erected in 1910 with an extension added in later years with a flat roof. The school has 2 classrooms and a current roll of 16 pupils. There are no PE facilities and limited space to meet new curricular demands. The building needs replacement of the windows and doors and repair to the external walls of the extension. The roof also is in need of repair and rot treatment to the roof joists is required. Like all the small schools there are limited opportunities to provide facilities for music, IT and physical education due to space restrictions. It is proposed to close the school and relocate pupils to Cuiken Primary School for August 2004. Howgate PS currently has a roll of 16 and a capacity factor of 32%. There is no community use of facilities at Howgate PS.

Cuiken PS has a roll of 294 with a capacity factor of 70%. The school has a planning capacity of 378 and a theoretical capacity of 420. The school therefore has the capacity to accommodate Howgate PS.

Cuikenburn Nursery School is located on a small site adjacent to Queensway Leisure Centre near the centre of Penicuik. The nursery school was built in 1979 and is a single storey timber framed structure with a pitched concrete tiled roof. The external windows and doors to the premises are showing signs of wear and will need replacement. The external tarmac areas need resurfacing and work needs to be carried out on some aspects of the electrical installations. The present accommodation would limit the expansion of the wrap-around-care service.

The proposal would be to relocate the nursery as a new extension on a refurbished Cuiken PS, funding coming from the Capital Programme.

In addition to schools identified earlier in this report, it should be noted that further new schools and extensions will also be built across Midlothian using developer contributions as set out in the Midlothian and Shawfair Local Plans. This is where housebuilders creating developments within Midlothian will pay for the necessary extensions to schools or for new schools as required as part of planning consent. The exception to receiving cash contributions will be Bonnyrigg where the school will be provided to the Council on a turnkey basis by the developer.

The precise timing of contributions received and expenditure incurred is difficult to predict and will be influenced by the speed of new housing development. It is expected that new primary schools will be required at the following venues in the future:

It should be noted that developer contributions are excluded from any PPP programme.

6 FINANCIAL POSITION

The above Table shows the changes the project has gone through. The original Outline Business Case was submitted in December 2002 with an affordability gap of over £1 million in the first year. The Executive responded in March 2003 with a letter which capped our capital spending at £43 million. When the financial model was produced for this size of project, the affordability gap had fallen to £723,000. In discussions with the Executive on how to fill this gap, they advised reducing the project still further to £35 million and five new build schools. This has reduced the affordability gap to £244,000 in the first year. Further revisions have taken place internally which has boosted the capital spend to £38.5 million and 7 new build schools. This option is cost neutral over the 30 year period. The 7 new build schools included in the Table are as set out in Section 4 above.

To explain some of the features of the Table:-

In terms of the outstanding funding gap, negotiations to seek a dispensation from the Local Government Finance Division of the Executive to use capital receipts have been successful. Before the concession, it had been intended to use the Schools Fund to help bridge the affordability gap but this is no longer necessary.

The Council will now be able to apply £4m of capital receipts as a one off up front payment to the contractor which will make the project affordable. It should be noted that this figure excludes the £3m of receipts from the school amalgamation.

7 TIMESCALES

A number of options are available to the Council to take forward the development of its schools estate. Clearly in relation to any PPP programme the Council will have to grant formal approval for its officers to negotiate a financial package with the Scottish Executive. Formal approval is also required to commence public consultation on school closures and subsequent relocations.

The Council’s programme for developing its schools estate falls into four parts:

1. School closures and mergers.
2. Those new build schools which can be provided under a PPP2 programme.
3. Refurbishment and redevelopment of schools funded from borrowing.
4. New schools built using developer contributions.

The above development routes can either be progressed individually or simultaneously. It is therefore suggested that the Council progress its PPP and borrowing in parallel and utilises developer contributions to build additional schools when new housing is approved and timescales agreed. Given there is approval for the above, the Council must decide timescales for progressing its PPP and refurbishment programmes.

It is proposed that closures of some schools proceed for August 2004 and that the mergers of Ladywood/Eastfield and Bryans/Langlaw are scheduled for 2006. The closure of some nursery schools would be fixed to tie in with the completion of the relevant replacement or refurbished primary school.

8 CONSULTATION

Section 6 of the Education (Scotland) Act 1981 amended the Education (Scotland) Act 1980 by addition sections 22A and 22D. Regulations were issued following the above amendment (1981 No 1558 The Education (Publication and Consultation etc) (Scotland) Regulations 1981).

In terms of the above the Council must consult on any closure etc programme and have regard to any representations made. With regard to those schools which are over 80% full (or over five miles from the nearest school), closure etc requires the consent of Scottish Ministers. For Roman Catholic schools reference to the Archdiocese is required.

Consultation may be in writing and/or by public meeting. The normal process is that both methods are used. The minimum period for consultation is 28 days. This is the period used for a single closure etc.

Requirements:

9 RECOMMENDATIONS

It is recommended that Cabinet agrees:

1. that Stobhill Primary School be replaced by a new building procured under a Public Private Partnership
2. that Gorebridge Primary School be replaced by a new building procured under a Public Private Partnership;
3. that Borthwick Primary School be closed with pupils relocated to Stobhill Primary School for August 2004;
4. that Temple Primary School be closed with pupils relocated to Stobhill Primary School for August 2004;
5. that Woodburn Primary School be refurbished using Capital funds;
6. that Thornybank Nursery School be relocated to a refurbished Woodburn Primary School;
7. that Bryans and Langlaw Primary Schools be merged and located in a new building procured under Public Private Partnership;
8. that Bonnyrigg Primary School be refurbished using Capital funds;
9. that Cockpen Nursery School be relocated to a refurbished Bonnyrigg Primary School;
10. that Loanhead Primary School be replaced by a new building procured under a Public Private Partnership on a shared campus with St Margaret’s Primary School;
11. that St Margaret’s Primary School be replaced by a new building on a shared campus with Loanhead Primary School procured under a Public Private Partnership;
12. that Eastfield and Ladywood Primary Schools be merged and replaced by a new building, procured under a Public Private Partnership;
13. that Strathesk Nursery School be relocated to the merged Eastfield/Ladywood Primary School;
14. that Cuiken Primary School be refurbished using Capital funding;
15. that Cuikenburn Nursery School be relocated to a refurbished Cuiken Primary School.
16. that Howgate Primary School be closed with pupils being relocated to Cuiken Primary School for August 2004;
17. that Pathhead Primary School be replaced by a new building procured through a Public Private Partnership;
18. that Cranston Primary School be closed and pupils relocated to Pathhead Primary School for August 2004;
19. that Cousland Primary School be closed and pupils relocated to Woodburn Primary School for August 2004 and then included in the new catchment area for a Primary School scheduled to be built at the Dalkeith Schools Community Campus;
20. that in respect to (i) to (xix) above that consultation is put in place in accordance with appropriate statutory legislation.

DONALD S MACKAY
Director, Education

23 February 2004