APPENDIX 1

Croftamie/Drymen – Property Considerations

Introduction

The Children and Young People Committee instructed officers to undertake further investigation of Option 1 - Nursery provision to remain at Croftamie Nursery Building, and to develop a detailed costed study of the improvements that can be made to Croftamie Nursery (developed as Option 1A below) in order to ensure the fullest possible compliance with the recommendations of Space to Grow.

The Early Years 1140 Expansion programme has the following overarching property objectives for each nursery setting, which was set out in the Committee Report of 26 September 2019 are to:

Provide the best possible nursery environment for children and meet the Care Inspectorate’s best practice guidance on early learning, childcare and out of school care settings “Space to Grow”

Ensure statutory compliance Utilise the Council’s estate in the most effective way to delivery services Improved and longer childcare provision in modern, stimulating surroundings Hot meal provision for children every day Accommodate known future housing growth Energy efficiency and reduced running costs, maintenance and repairs

Croftamie Nursery – Design Brief Accommodation Requirements

The accommodation requirements for Croftamie Nursery as extracted from the Design Brief prepared by Schools, Learning and Education are as follows:

Statutory compliance with Building Regulations Playrooms that meet Care Inspectorate’s minimum space standards for 32 children aged 3-5

years and 5 children aged 2-3 years. Space must be allow for quiet spaces to be zoned Compliant toilet facilities and nappy changing for 37 children aged 2-5 years with facilities

accessed directly off playroom to allow for independent use Connection to outdoors to include views to outside Independent access for children to access external play spaces from playrooms (free-flow) Pupil kitchen for snack and baking activities with compliant hand wash facilities and white goods;

fridge, combination microwave and dishwasher Secure entrance lobby and reception / admin office with secure hatch that opens into lobby

allowing secure communication between reception staff and visitors Admin office providing suitable space for 2 staff workstations, office storage and equipment Cloak facilities that cater for 37 children Management office with 2 workstations Parent room with meeting space for 6 adults Staff workstation Staffroom with kitchen and seating area for 8 members of staff, with lockers and cloaks facilities

for 12 staff Fully compliant receiving kitchen for provision of hot lunches Compliant staff toilet facilities Laundry room with washer / dryer, cupboards and worktops

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Storage for lunch tables - 3 x 12 seater pull down tables Storage for nursery resources - internal cupboards shelved External lighting Secure garden spaces - hard and soft landscaping and cycle track Accessibility and inclusion in line with the Equality Act

Scope of Costed Study

As a part of this assessment, 3 options have been considered:

Option 1 – Remain in Croftamie existing nursery building. This option has previously been presented to the Children and Young People Committee and further investigation of the option was requested by Committee.

Option 1A – Remain in Croftamie with improvements made to the building to deliver the fullest possible compliance.

Option 3 – Relocation to a new build nursery within the grounds of Drymen Primary School.

The alternative new build option within Croftamie village (Option 2) as presented to Children and Young People Committee in September 2019 is no longer being considered and is not within the scope of this costed study.

Option 1 - Remain in Croftamie Existing Nursery Building

The Early Years 1140 design team undertook space planning and feasibility design with the aim of meeting as many of the briefed requirements as possible within the existing building in Croftamie. The conclusion reached was that reconfiguration of internal spaces alone could not deliver all the accommodation required while remaining compliant in playroom space for 37 children. Minimum space standards are set out in both legislation and Care Inspectorate guidance.

With the addition of an extension of 27 sqm, built to the rear of the building on existing external play space to incorporate accommodation including toilet facilities and a compliant commercial receiving kitchen, an improvement is realised with more of the briefed requirements being met.

Due to the shape and design of the existing building and topography of the site, the following briefed accommodation requirements are not be met in this option:

Direct connection to outdoor space from playroom - the main external play space and garden cannot be accessed directly from the playroom to allow free flow access

High windows do not allow children to see out easily and connect with the outdoors The topography of the site doesn’t lend itself to ease of accessibility and the current side

entrance is an adaptation to offer some level of accessibility Parent room not provided Staff welfare facilities limited Staff work space not provided

Figure 1 below shows the feasibility design that has been developed and costed as Option 1:

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Figure 1 – Option 1 Croftamie Nursery

Financial and Value for Money Considerations of Option 1

Capital cost

The capital cost presented at Committee in September 2019 for this option has been refreshed in light of recent changes to construction market conditions and benchmarked against tender returns for similar projects recently returned to Stirling Council. This is now estimated to be £573,800.00 for the construction cost, with a total development cost of £871,837.00, including fees, surveys, risk and inflation.

Cost in £m Option 1

Construction 573,800

Fees/Surveys 91,808

Risk 33,280

Inflation 22,949

Total Construction Cost 721,837

A full decant is necessary for the period of construction and off site temporary accommodation will be required. The cost of this decant is estimated at an additional £150, 000 which is not included in the construction cost above.

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Whole Life Costing

The building is of significant age and will require considerable investment on an ongoing basis to ensure that its condition is maintained. Grant funding from Scottish Government to support the early years 1140 expansion programme cannot be used to address building condition issues. Stirling Council will be required to fund the lifecycle, repairs and maintenance of the building from property revenue budget allocations. The whole life costing summary is provided below:

Costs in £m Option 1

Whole life costs; 25 years 1,814,449

Net Present Value; 25 years 1,488,275

Equivalent Annual Cost 59,531

Table 3

Notes / Assumptions

1 Assumption 2.5% per annum inflation applied to running costs and maintenance costs based on current projections from UK Government CPI 2.4%

2 Assumed site start August 2020 and a completion by January 2021 (18 weeks)3 Current running costs from internal 2018/19 ledger4 Post refurbishment running cost compounded for inflation at 2.5%5 Post refurbishment maintenance costs compounded for inflation at 2.5%6 Refurbishment costs include for dealing with backlog maintenance and compliance issues

plus all professional fees and 10% contingency7 Life cycle replacement costs compounded for inflation at 2.5%8 Costs exclude loose fixed furniture and equipment, and IT9 Final retention release in January 202210 Net present value discount rate is the recommended UK public service discount rate of 3.5%11 VAT is excluded

Option 1A - Fullest Possible Compliance with Space to Grow

The design team were asked to consider further improvements to the building to achieve the fullest possible compliance with Space to Grow.

As noted in Option 1, reconfiguration of the existing Croftamie Nursery building cannot fully deliver compliance with briefed requirements.

The space planning exercise undertaken demonstrates that through a larger extension (125sqm) and reconfiguration of the existing building, the accommodation requirements can be met and compliance with Space to Grow environmental considerations can be broadly achieved. This has been achieved by accommodating all pupil spaces including playrooms and toilets in a new build connected by way of a link corridor and decking, to the existing remodelled nursery building which would then house the ancillary staff and support facilities.

This option does not deliver on the wider aspirations of the early years expansion programme including energy and space efficiency and will require significant investment in the existing, ageing building to address condition based issues and extend the lifespan.

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This feasibility option is shown below:

Figure 2 – Option 1A Croftamie Nursery

The design team has not entered into dialogue with the Planning Authority on any of the options presented but it is the designers’ professional view that the option of a large extension to Croftamie Nursery comes with significant risks particularly with regards to the size in massing and location in relation to the existing building. In addition, the extensive ramped access to the front of the building to ensure accessibility and inclusion may not be acceptable to the Planning Authority due to its impact on the principal elevation.

The alternative level access to the rear of the building does not promote inclusion and accessibility and has not been developed further at this point.

By moving the current main entrance and reinstating the original front door entrance with ramped access, this allows the construction of the extension to accommodate the playroom which will lead directly into the garden space and facilitate free flow access.

Reconfiguration and refurbishment of the existing building has its limitations and does not facilitate an efficient build. There is approximately 24% additional space in this option compared with the new build proposal within the grounds of Drymen Primary School which also complies with all briefed requirements.

The early years 1140 expansion programme seeks to deliver property solutions that are energy efficient and reduce overall operating costs including lifecycle costs, repairs and maintenance.

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Compared with a new build solution, this refurbishment and extension option is less energy efficient, running costs are higher and greater investment in lifecycle costs is required over a 25 year period.

Financial and Value for Money Considerations of Option 1A

Capital cost

Limited investigation into the buildability of the feasibility design has been undertaken however the capital cost of this option has been developed in line with current construction market conditions and benchmarked against similar sized extension projects.

Cost in £m Option 1A

Construction 1,196,100

Fees/Surveys 191,376

Risk 69,374

Inflation 73,930

Total construction cost £1,530,780Table 4

A full decant is required to deliver this build solution and the cost of offsite temporary accommodation is estimated at an additional £170,000, not included above. The increased cost of hired temporary accommodation compared with Option 1 is due to the longer construction period of Option 1A.

Unlike Option 3, where there is potential for sharing of facilities due to the co-location with Drymen Primary School, this option requires a commercial receiving kitchen, storage for lunch tables and a staffroom, which is reflected in the capital cost. In addition, the topography of the site is challenging in Croftamie and impacts upon the build cost.

Whole life costing

Of the 3 options, Option 1A has the highest whole life cost when analysed over a 25-year concession period. Due to the age of the property and the inefficiencies in the layout to function for the use of an early years facility with 1140 compliance, it comes with high operational, maintenance and revenue costs. In order for this building to be maintained for its intended use, a large investment is required not only in the capital costs but also operationally.

Costs in £m Option 1A

Whole life costs; 25 years 2,991,979

Net Present Value; 25 years 2,532,638

Equivalent Annual Cost 101,306

Table 5

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Notes / Assumptions

1 Assumption 2.5% per annum inflation applied to running costs and maintenance costs based on current projections from UK Government CPI 2.4%

2 Assumed site start October 2020 and a completion by April 2021 (26 weeks)3 Current running costs from internal 2018/19 ledger4 Post refurbishment running cost compounded for inflation at 2.5%5 Post refurbishment maintenance costs compounded for inflation at 2.5%6 Refurbishment costs include for dealing with backlog maintenance and compliance issues

plus all professional fees and 10% contingency7 Life cycle replacement costs compounded for inflation at 2.5%8 Costs exclude loose fixed furniture and equipment, and IT9 Final retention release in April 202210 Net present value discount rate is the recommended UK public service discount rate of 3.5%11 VAT is excluded

Option 3 - New Build Nursery in the Grounds of Drymen Primary School

Option 3 has been developed to deliver educational and property benefits through co-location with the school, with a new build in the grounds of Drymen Primary School. The design and benchmark cost is based on the new build nursery for Braehead which is currently at tender evaluation stage. This option delivers the design brief accommodation requirements and Space to Grow guidance in full.

This option delivers an efficient footprint with a design that is in line with best practice in nursery design. Its co-location with Drymen Primary School allows for sharing of dining spaces for the children, thereby removing the requirement for an on-site commercial receiving kitchen and lunch table storage, thus reducing the overall accommodation requirement.

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Figure 3 – Option 3 Drymen Nursery

Financial and Value for Money assumptions of Option 3

Capital cost

The cost for this option has been refreshed in light of market intelligence to ensure accurate financial comparison of all the options.

Cost in £m Option 3

Construction 1,112,832

Fees/Surveys 178,053

Risk 64,544

Inflation 68,783

Total 1,424,212Table 6

This option would not in itself incur temporary accommodation costs as the intention was that the children would remain in Croftamie Nursery until the construction of the new build was complete. However, due to the delay with the build programme, some contingency planning is required which may result in the need for temporary accommodation. This will be required in order to deliver the 1140 operating model from August 2020 for all children currently attending Croftamie Nursery until such time as the new build is ready for occupation.

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Whole Life Costing

Due to this option being a new build, the capital investment required can be funded from the Scottish Government grant available through the Early Years 1140 expansion programme. It can be constructed to have better use of the spaces providing greater flexibility and will be more energy efficient in comparison to an existing building older building where there are limited opportunities to change the use in a way that is affordable.

The revenue, life cycle and maintenance costs equate to £645,084.00 for this option, compared with £942,612 for Option 1 and £1,291,200 for Option 1A over a 25-year operational period (included in whole life costs below).

Costs in £m Option 3

Whole life costs; 25 years 2,069,296

Net Present Value; 25 years 1,834,196

Equivalent Annual Cost 73,368Table 7

Notes / Assumptions

1 Assumption 2.5% per annum inflation applied to running costs and maintenance costs based on current projections from UK Government CPI 2.4%

2 Assumed site start September 2020 and a completion by April 2021 (30 weeks)3 Current running costs from internal 2018/19 ledger4 Post refurbishment running cost compounded for inflation at 2.5%5 Post refurbishment maintenance costs compounded for inflation at 2.5%6 Refurbishment costs include for dealing with backlog maintenance and compliance issues

plus all professional fees and 10% contingency7 Life cycle replacement costs compounded for inflation at 2.5%8 Costs exclude loose fixed furniture and equipment, and IT9 Final retention release in April 202210 Net present value discount rate is the recommended UK public service discount rate of 3.5%11 VAT is excluded

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Project Delivery- Programme Implications

The indicative delivery programmes for the 3 options have been considered and are presented below for consideration:

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The shortest duration to deliver construction completion is Option 1 due to reduced scope in comparison to Option 1A and Option 3, however the benefit in programme is only 4 months and comes with the disruption of requiring a decant to temporary accommodation.

The estimated completion for Option 1 is January 2021 based on decision confirmed at Committee on 9 January 2020.

Options 1A and 3 have a comparable delivery timescales due to the availability of design information from Braehead Nursery offering a net benefit against the extended construction duration.

The estimated handover for Options 1A and 3 is May 2021 and assumes a decision is made by Children and Young People Committee on 9 January 2020.

Summary

The costed analysis shows that there is a high degree of both capital and revenue investment required in order to improve the nursery facilities.

There is limited scope within Option 1 to obtain what is required to meet the minimum standards of the Space to Grow recommendations, therefore, even though investment is put into this option, it still will not meet the briefed accommodation requirements or wider programme objectives.

Option 1A, where a solution to remain at Croftamie is feasible and better meets the Space to Grow recommendations, arrives at both the highest capital and revenue figures out of all of the options that form part of this study. This option is not considered to be value for money and will bring with it the disruption of having to decant from the property whilst the construction works are ongoing.

Option 3, where a new nursery is built to meet the design brief and Space to Grow requirements in full, brings financial efficiencies in terms of initial capital investment and in future running costs, life cycle and maintenance.

Table 8 below pulls together a summary of the considerations:

Briefed Requirements Option 1 Option 1A Option 3

Croftamie Croftamie Drymen

Regulatory-based requirements (Care Inspectorate guidance documents )      

Pupil kitchen for snack and baking activities with compliant number hand wash sinks and white goods (fridges, combination microwave, dishwasher)

√ √ √

Pupil kitchen has sufficient space to accommodate equipment, workspace and tables without impacting on play space

x √ √

Compliant pupil toilets for 32 children aged 3-5 years and 5 children aged 2-3 years √ √ √

Children’s toilets accessible directly off playroom for independent use x √ √

Staffroom with kitchen and seating area for 8 staff and facilities to include space for 12 lockers and coat storage

√ √ √

Staffroom, senior management office and admin / reception office not directly located off playroom reducing negative impact of noise and movement

x √ √

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Free flow access door from playroom to outdoors allowing independent access to all nursery outdoor spaces

x √ √

Provision of a receiving kitchen for receipt, plating up and cleaning up of hot lunches to environmental health and catering standards

√ √ √

Laundry room with washer / dryer and with worktop space with cupboards above and below and some shelving space

√ √ √

Playroom space to at least meet minimum CI child to space ratios and allow in the design for quiet spaces

√ √ √

Best practice requirements      

Staff work area with 1 workstation x √ √

Internal storage cupboards for playroom resources to include shelving and lighting √ √ √

Internal storage for lunch tables 3x12 seater fold down √ √ √

New flooring and decoration throughout √ √ √

Secure entrance lobby and reception with cloaks based on CI registration of 32 (3-5yrs) and 5 (2-3 yrs)

√ √ √

Admin office at entrance with secure communications hatch that opens into lobby and 2 workstations and space for free standing MFD

√ √ √

SMT office with 2 workstations and seating space for further 2 people to meet √ √ √

Parent room with meeting space for 6 adults x √ √

Pedestrian route from carpark to nursery entrance separated by barrier fencing x √ √

Building and directional signage, including for visitors reporting to reception and fire assembly point

x √ √

Carpark line marked bays including for accessible user bays x √ √

Secure main entrance gate x √ √

Hard and soft landscaping in nursery garden to include a children's cycle track x √ √

Sufficient external lighting in garden play areas and on service user access all routes √ √ √

Statutory-based requirements (Legislation, Building Standards)      

Up to date compliance for number and space of children, staff and accessible WCs √ √ √

Building complies with current building standards part part √

Building complies with accessibility regulations under the Equality Act x part √

Condition-based requirements (Condition surveys)      

New roof coverings resulting in minimal maintenance for up to 40 years x √ √

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New aluminium windows resulting in minimal maintenance for 30 years x x √

New aluminium doors resulting in minimal maintenance for 20 years x part √

New energy efficient hot water system x √ √

Increased standard of building fabric insulated make up part part √

New electrical wiring resulting in minimal maintenance for 15 years x √ √

Fully re-surfaced carpark x √ √

Capital cost ( including temporary decant costs) 871,837 1,700,779 1,424,212

Whole life costs; 25 years 1,814,449 2,991,979 2,069,296Estimated Net Present Value 1,488,275 2,532,638 1,834,196

Table 8

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