Agenda item

RESOLVED:

1.    That Cabinet approves the total funding of £6.2m. This comprises £4.2m to be transferred from the current pipeline within the Medium-Term Financial Strategy (MTFS) that was approved on 9 February 2021 as part of the capital programme. An additional £2m of capital investment has been identified through this business case to enable a comprehensive rebuild of the site, address significant repair and maintenance requirements and to extend and enhance the site’s facilities which will generate additional income for the Council.

Reason for Decisions:

Capital development at Thames Young Mariners will enable SOLD to realise the potential in the site through a significant increase in service capacity, supporting the Council’s strategic priorities for children, young people, and families by providing bespoke programmes of personal development, appropriate education, skills training and family support. It will further enhance SOLD’s ability to work in partnership with services across the Children, Families and Lifelong Learning Directorate to support vulnerable children and young people including children with a social worker, young people in contact with the criminal justice system and children missing education. Whilst focussing on children and young people, the facilities will also be available for all ages to support the Council’s broader strategic objectives.

Commitment to the £6.2m capital investment would allow TYM to offer an all year-round programme. The lack of year-round residential and day facilities means the site can only operate April – October, with five months of no significant on-site activity. Market testing confirms that post-pandemic there is considerable unmet demand from the customer base for year-round and residential facilities.

The proposed investment will see TYM contribute significantly to the long-term financial sustainability of SOLD as the investment will be self-funding through the net surplus created each year. In addition, site assessments of the current property confirm that the facilities are increasingly unsafe and require urgent backlog maintenance works of £0.4m simply to make the site safe and facilities usable in the immediate term. Site assessments also confirm that in the next five years, a further £0.9m of capital forward maintenance will be required to maintain the facilities at an acceptable, safe standard.

In the mid to long term period, by proceeding with the proposed £6.2m capital investment programme at TYM, the Council will in total reduce its net maintenance liability by approximately £1m over the next ten year period as the current site is in very poor condition and will require significant works to maintain the standards of the building and surrounding site.

In the longer term, should the proposed works not proceed, in addition to the most urgent maintenance requirements, there is also a further requirement of maintenance works over the next 30 years of £1.68m based on an annual estimated cost of £56k for building and external areas. Lack of further investment will also put the achievement of planned revenue generation from TYM (circa £235k per annum by 2025/26) at serious risk.

(The decisions on this item can be called-in by the Children, Families, Lifelong Learning & Culture Select Committee)

The report introduced by the Cabinet Member for Education and Learning asked Cabinet to approve capital investment of £6.2m for Thames Young Mariners, Phase 1 of the Surrey Outdoor Learning Development (SOLD) improvement programme. The site required significant investment to bring it up to current health and safety standards with modern, fit for purpose facilities which will allow SOLD to increase its service capacity and strengthen its commercial operation to generate income for Surrey County Council. The site in question forms part of alternative provision in Surrey. Finance colleagues have concluded the option 3 was the most financially viable option.

There was recognition from members on the benefits of this type of site for young people. The site at High Ashurst was used as an example of great work being done to support young people.

RESOLVED:

1.    That Cabinet approves the total funding of £6.2m. This comprises £4.2m to be transferred from the current pipeline within the Medium-Term Financial Strategy (MTFS) that was approved on 9 February 2021 as part of the capital programme. An additional £2m of capital investment has been identified through this business case to enable a comprehensive rebuild of the site, address significant repair and maintenance requirements and to extend and enhance the site’s facilities which will generate additional income for the Council.

Reason for Decisions:

Capital development at Thames Young Mariners will enable SOLD to realise the potential in the site through a significant increase in service capacity, supporting the Council’s strategic priorities for children, young people, and families by providing bespoke programmes of personal development, appropriate education, skills training and family support. It will further enhance SOLD’s ability to work in partnership with services across the Children, Families and Lifelong Learning Directorate to support vulnerable children and young people including children with a social worker, young people in contact with the criminal justice system and children missing education. Whilst focussing on children and young people, the facilities will also be available for all ages to support the Council’s broader strategic objectives.

Commitment to the £6.2m capital investment would allow TYM to offer an all year-round programme. The lack of year-round residential and day facilities means the site can only operate April – October, with five months of no significant on-site activity. Market testing confirms that post-pandemic there is considerable unmet demand from the customer base for year-round and residential facilities.

The proposed investment will see TYM contribute significantly to the long-term financial sustainability of SOLD as the investment will be self-funding through the net surplus created each year. In addition, site assessments of the current property confirm that the facilities are increasingly unsafe and require urgent backlog maintenance works of £0.4m simply to make the site safe and facilities usable in the immediate term. Site assessments also confirm that in the next five years, a further £0.9m of capital forward maintenance will be required to maintain the facilities at an acceptable, safe standard.

In the mid to long term period, by proceeding with the proposed £6.2m capital investment programme at TYM, the Council will in total reduce its net maintenance liability by approximately £1m over the next ten year period as the current site is in very poor condition and will require significant works to maintain the standards of the building and surrounding site.

In the longer term, should the proposed works not proceed, in addition to the most urgent maintenance requirements, there is also a further requirement of maintenance works over the next 30 years of £1.68m based on an annual estimated cost of £56k for building and external areas. Lack of further investment will also put the achievement of planned revenue generation from TYM (circa £235k per annum by 2025/26) at serious risk.

(The decisions on this item can be called-in by the Children, Families, Lifelong Learning & Culture Select Committee)