PAPER B

 

 

RESOURCES SELECT COMMITTEE - 7 APRIL 2005

 

OFFICE ACCOMMODATION RATIONALISATION PHASE III

 

REPORT OF THE PORTFOLIO HOLDER FOR RESOURCES

 

 

REASON FOR SELECT COMMITTEE CONSIDERATION

 

To provide the Select Committee with information as to the progress of Council office space rationalisation and improvements including details of Engineering Services’ move to Enterprise House.

 

ACTION REQUIRED BY THE SELECT COMMITTEE

 

That the Select Committee supports the progress being made with the Council’s office space rationalisation.

 

 

 

BACKGROUND

 

1.                  Members will recall that in June 2002 a series of proposals were recommended to the Executive from Select Committee following extensive work by Members and Officers of the Property Task Group.  The acceptance of these recommendations subject to minor variations has been the foundation of the Council’s office accommodation rationalisation.

 

2.                  In the case of Enterprise House further reports dated 21 May 2003 and 21 May 2004 outlined the potential for letting the property which was not concluded and then the taking of a Lease at a reduced rent for the Council’s own use.

 

3.                  All these papers will be available for circulation at the meeting or in advance should Members so require.  Furthermore details of the strategy behind the office changes is  available in a presentation format and this presentation could also be made at the Committee meeting should Members so wish.

 

4.                  Members will also recall that the Select Committee put forward its recommendations including the proposal that the budget for office rationalisation shall be ring-fenced and that outcomes should in effect be self-financing.  The capital balance sheet currently estimated as follows:

 

Expenditure

 

 

Receipts

 

Balance

Somerton Stores

741,000

 

Forest Road

375,000

 

Enterprise House

257,000

 

8A Clarence Road

83,000

 

Jubilee Stores

75,000

 

Parkhurst Library HQ

900,000

 

Westridge

460,000

 

St Nicholas House

850,000

 

Northwood House

117,000

 

17 Quay Street

250,000

 

 

  1,650,000

 

 

2,458,000

808,000

 

 

5.                  Turning specifically to the move of Engineering Services, the whole of the cost is within budget and is covered by the ring-fenced accommodation review receipts.

 

Enterprise House

 

Fibre Optic Network

101,419

ICT Works

89,332

Building adaptations

29,361

Security, floors and blinds

9,495

Stamp Duty

13,386

Design, removal and legal costs

13,392

 

256,385

 

6.                  For Members’ clarification over £100,000 of the costs described under the Enterprise House heading were actually incurred prior to the Engineering Service move and independently of that move.  This cost relates to strategic ICT spending to link the Council’s property and other agencies to the Council’s ICT network.

 

7.                  In detailed terms a situation arose presenting an opportunity whereby with the construction of the new roundabout for B&Q the Council was able to achieve a multi-functional cabling link to various services including County Hall, St Mary’s Hospital, the Supporting People Team, AVT and Enterprise House at a cost of £101,000.  This cost was much less than the quotation by the private BT contractor that amounted to £230,000 for a five year service connection.

 

8.                  Given this saving, heads of service took the opportunity to install the infrastructure at the lesser cost.

 

9.                  Following on later with the Council taking a new lease of Enterprise House once a reduced rent had been agreed then all the ICT costs that support various service users and organisations have been put to the Accommodation Review Budget for funding from capital income.

 

10.              More details of the office rationalisation in terms of revenue and overall floor space will also be available for Members if required.

 

RELEVANT PLANS, POLICIES, STRATEGIES AND PERFORMANCE INDICATORS

 

See Accommodation Review Phase III dated 5 June 2002.

 

CONSULTATION PROCESS

 

The stakeholders in this case include Council services, partner organisations and heads of service, all of whom have been consulted.

 

FINANCIAL, LEGAL, CRIME AND DISORDER IMPLICATIONS

 

The actions taken in this case have been based on operational decisions made by heads of service and within budget.  There are no discernable crime and disorder implications in this case and the link to St Mary’s Hospital has enabled the development of that partnership.

 

APPENDICES ATTACHED

 

None.

 

BACKGROUND PAPERS USED IN THE PREPARATION OF THIS REPORT

 

The following papers will be available for circulation at the meeting:

 

Executive Paper dated 5 June 2002

Executive Paper dated 21 May 2003

Delegated Decision Paper dated 21 May 2004

 

 

Contact Point :            Tony Flower, Head of Property Services, ( 823263, e-mail tony.flower@iow.gov.uk

 

 

 

REG BARRY

Portfolio Holder for Resources