Part 1
ITEM NO.
_________________________________________________________________________________
REPORT OF THE STRATEGIC DIRECTOR FOR SUSTAINABLE
REGENERATION AND THE STRATEGIC DIRECTOR FOR CUSTOMER
AND SUPPORT SERVICES
__________________________________________________________________
TO THE LEAD MEMBER FOR PROPERTY – 13TH APRIL 2011
__________________________________________________________________
TITLE: Strategic Property - City Council Core Sites Office Accommodation –
Brotherton House refurbishment
__________________________________________________________________
RECOMMENDATIONS: That the Lead Member for Property:
1. Approves the proposed works as detailed in the estimates set out in
this report; and
2. Approves the funding as detailed in this report.
__________________________________________________________________
EXECUTIVE SUMMARY:
The Lead Member for Property approved the refurbishment of Brotherton
House as per the details contained in this report leading to the future revenue,
saving for the council in excess of £156,000 p.a. once accommodation closure
costs are met.
This report outlines the refurbishment proposals for Brotherton House, which
will convert a former library premises to office space, which is an intrinsic part
of the City Council’s approach to accommodation and contributes to the
closure of Halton House, Unwin Court and potentially the Poplars Medical
Centre or an equivalent building. The refurbishment of Brotherton House will
be part funded from the Office Programme, DDA improvement Programme
and contributions from service budgets.
__________________________________________________________________
BACKGROUND DOCUMENTS:
Report of Report to the Lead member for Property of 14th September 2010
Report of Report to the Lead member for Property of 26th October 2010
__________________________________________________________________
KEY DECISION:
Yes
__________________________________________________________________
DETAILS:
1.0
Background
1.1
Housing Connections Partnership (HCP) is part of the Sustainable
Regeneration Directorate and currently occupies accommodation in
Halton House and Crompton House. Due to service improvements
and external funding requirements there is a requirement to co-locate
all HCP teams together in a single location.
1.2
As part of the City Council’s ongoing property rationalisation
programme and as a result of concerns about Health and Safety and
suitability of HCP accommodation at Halton House alternative options
have been considered to accommodate HCP staff in a single location
in Pendleton.
1.3
HCP is partly funded by external ‘Trail blazer’ funding totalling
£250,000 to deliver services. A condition of the continued funding of
the services is to secure and implement more suitable accommodation
in their predominant catchment area, Pendleton. Failure to resolve this
accommodation problem could see funding potentially withdrawn.
1.4
Part budget allocation has been made within the capital Office
Accommodation budget and part will be funded from a service
contribution.
2.0
Information
2.1
HCP Homelessness Team currently has 22 staff on the ground floor of
Crompton House. With an additional 45 staff are located in Halton
House.
2.2
There are limited accommodation options to accommodate circa 67
staff in the Pendleton area of the City. Implementation of the property
rationalisation programme in recent years in support of the City
Council’s overall efficiency drive and in support of regeneration
initiatives has seen reduced Council accommodation in the area. The
Property Shop at 45 Hankinson Way and was transferred to Salix
Homes; various leases in St James House have been relinquished,
and Churchill Way suffered a fire rendering it incapable of occupation
and will be demolished in support of the Pendleton PFI project. The
only remaining of Council office building in the Pendleton area is
Unwin Court which is affected by Pendleton PFI proposals with an
estimated lifespan of 2 years prior to its demolition after relocation of
essential area sensitive teams in the area.
2.3
As a result of the transfer of the Property Shop from the council to
Salix Homes, 8 front facing staff were relocated to Brotherton House,
(former Boardwalk Library), where they are segregated but share
common buildings areas with Reader Services.
2.4
It has now been confirmed that Brotherton House is not affected by
the Pendleton PFI proposals and the building does have a strategic
future. The building is ideally located between Pendleton Gateway and
Salford Precinct on the main footfall between the two.
2.4
Options have been considered by Members and staff to relocate
Reader Services to alternative locations as the service is not area
sensitive but none of the options identified were considered suitable or
costs effective to implement. Discussions with the Service managers
have concluded that the service has could rationalise into reduced
space at Brotherton in the short term with a view to a more permanent
solution being identified, releasing sufficient accommodation for
incoming HCP staff.
3.0
Brotherton House
3.1
To facilitate the relocation of HCP staff to Brotherton House
substantial remodelling and redesign will be required to accommodate
the staff numbers; create an appropriate reception facility; and
address all relevant Health and Safety and DDA concerns. See
proposed design, agreed with service managers, in appendix 1.
3.2
It is estimated that the cost of undertaking the remodelling as per the
design, will be in the region of £225,000 including, remodelling, VOIP
IT infrastructure, all fees and physical staff moves. Furniture will be
recycled from other locations. A breakdown of estimated costs is
attached in appendix 2. Additional investment will be required to
convert the existing Reader Services area to offices further increasing
the capacity of the building.
3.3
In the proposed remodelled accommodation and with the adoption of
Council accommodation standards, Brotherton House will have the
potential capacity to accommodate 80 staff initially with a further 30 to
follow. The initial phase will create enough accommodation for all HCP
staff, with the existing Reader Services accommodation having
capacity to accommodate displaced area based staff from Unwin
Court or other locations subject to Lead Member views.
3.4
Implementation of these proposals will potentially support the
rationalisation of the following buildings which would deliver
operational and financial benefits described in the table below:
Property
Staff Nos
Running Costs Potential
Cap Receipt
Comments
Halton House
45
£49,927
To be advised
Poplars Medical
Centre
Unwin Court
9
£9,120
N/A
77
(Part
staff
to
relocate to
Brotherton)
131
£96,998
N/A
Building H & S
concerns,
£100k+
backlog maintenance
Relinquished leased
property
Site
affected
by
Pendleton
PFI
proposals
Totals
£156,045
Note: Additional capacity created by Reader Services relocation will
potentially support the increased notional capacity of Crompton House
by up to 100 FTE’s.
4.0
Financial Summary
4.1
A recent Office Moves 2010/11 budget review has highlighted that
there are insufficient funds available in the overall programme of
£1.74M to facilitate the refurbishment of Brotherton House. A
discussion with HCP Service Managers has identified funds to
contribute to the refurbishment costs. Additional funding has also been
identified within the Councils DDA building improvement programme.
4.2
Additional funds totalling £85,000 from the insurance claim on
Churchill Way plus support funding from the 2011/12 allocation are
available to support the corporate accommodation budget.
4.3
The initial costs of the Brotherton House Total £225,000 (including all
elements). Proposed funding solution is as follows:
HCP Service contribution
Energy Management Fund
DDA Improvement Programme
Insurance Claim Churchill Way
Accommodation Budget 2010/11+2011/12
Total
4.4
£20,000
£15,000
£10,000
£85,000
£95,000
£225,000
The total budgeted expenditure in 2010/11 is;
Minerva-related works;
£1.113m
Other
£0.633m
Total
£1.746m
(note: Expenditure on Minerva related moves is on programme and
there are sufficient unallocated funds from 2010/11 Programme with
support funding from the 2011/12 allocation fund the Corporate
contribution of £95,000).
5.0
Recommendation
That the Lead Member for Property:
1.
Approves the proposed works as detailed in the estimates set out
in this report; and
2. Approves the funding as detailed in this report.
__________________________________________________________________
EQUALITY IMPACT ASSESSMENT AND IMPLICATIONS:
The review of office accommodation is underpinned by an understanding of
the requirements of the Equality Act 2010 and the promotion of equal access
to work for all existing and potential employees and public. This will include an
assessment of reasonable adjustments for staff with additional requirements.
__________________________________________________________________
ASSESSMENT OF RISK:
High – This is the largest office moves programme undertaken by the Council.
__________________________________________________________________
SOURCE OF FUNDING: Identified in the report
__________________________________________________________________
LEGAL IMPLICATIONS:
Supplied by Tony Hatton (Ext 2904) - Other than reference being made and
due account being taken of the Equality Act 2010, no legal implications.
__________________________________________________________________
FINANCIAL IMPLICATIONS:
Supplied by John Spink (Ext 3230) - Budget provision for the proposed works
are included in the Council's capital programme and other sources as
identified in the report. The savings in running costs will help to contribute
towards the £1m revenue budget savings target for 2011/12.
__________________________________________________________________
OTHER DIRECTORATES CONSULTED:
All Directorates Via One Council Team.
__________________________________________________________________
CONTACT OFFICER: Rob Pickering 2818 / Martin Vickers 3407
__________________________________________________________________
WARD(S) TO WHICH REPORT RELATE(S): Pendleton