Agenda item

Report of Director of Property, Investments and Estates.

4.1       Guy Slocombe, the Director of Property, Investments and Estates, introduced the report. 

4.2       The Leader, Councillor Robert Davies and Councillor Tim Mitchell expressed the view that whilst the financial investment was large the proposed refurbishment as recommended was the only realistic way forward, given the current state of the building and need to save money in the longer term.

4.3       The Cabinet confirmed that they had considered the Part 2 report which contained the detailed financial implications following which they adopted the recommendations as set out in the report.

            Resolved:

1.            That the proposal for the refurbishment of City Hall under Option 2 as set out in paragraph 7.5 of the report be approved subject to planning consent.

2.          Responsibility be delegated to the Director of Property, Investment and      Estates within the approved budget and in consultation with the City      Hall Refurbishment Steering Group to approve:         

2.1       the concept and detailed design;

2.2       submission of a planning application;

2.3       any variations required to the design/specifications a result of                      any planning conditions and/or tenant variations.

3.         The procurement of consultants be approved and building contractors for the City Hall refurbishment with delegated responsibility to the Director of Property, Investment and Estates within the approved budget and in consultation with the City Treasurer and the City Hall Refurbishment Steering Group and to:

                        (a)       appoint consultants via an approved framework to market test                                   the scheme.

                        (b)       Progress the appointment of a building contractor in consultation with the City Hall Steering Group.  This will be followed by a further report to Cabinet at the stage of approval to contract.

4.         That expenditure against the capital budget, as detailed in the current 5 year capital programme is approved.  This is funded by (a) the capital programme and (b) borrowing financed through future revenue savings as detailed in paragraph 9.3 and 9.4 of the confidential report.  This is subject to regular progress reports to the Programme Board and the Capital Review Group.

5.         Noted the revenue pressure estimated over the next 5 years due to the decant costs plus potential rent free and void periods post refurbishment.

6.         The use of reserves referred to in paragraphs 9.14 – 9.17 of the confidential document be approved on the basis that all future years savings against the budget be repaid back into reserves until this has been replenished.

7.         Note that the estimated use of reserves will be as referred to in paragraph 9.13 – 9.16 and table 6.  The annual draw down amount is to be delegated to the City Treasurer in consultation with the Cabinet Member for Finance and Corporate Services and the Chief Executive subject to the cap referred to in paragraph 9.15 – 9.16 of the confidential document.

8.         Noted that capital and revenue costs are estimated and will be reviewed further over the design and development period.

9.         Approved that the budget as set out in “Table 6: Revenue Implications” in the confidential document be approved remains unchanged until the full repayment of the reserves.

10        Delegated authority for the lettings strategy for the scheme to the Director of Property, Investment and Estates in consultation with the City Hall Refurbishment Steering Group.  Such strategy to be reported back to Cabinet at the time of the report approving the contractor appointment.

11        That the strategy to decant to temporary accommodation as set out in the report be approved, in accordance with the timeframes for refurbishing City Hall and within the approved budget including:

            (i)           to delegate the authority to the Director of Property, Investment       and Estates for negotiation of appropriate terms and entering    into the leases as long as this remains within the budget                 outlined.

            (ii)          To delegate authority to the Director of Property, Investment & Estates to identify and commit to alternative properties in consultation with the City Hall Refurbishment Steering Group in the unlikely event that the properties outlined are not secured.

2.         Reason for Decision

            Approval of the recommendations contained within the report will enable the        City Hall Refurbishment Programme to commence as planned and:

·         Reduce the running costs associated with City Hall;

·         Generate income from letting high quality surplus accommodation to support the Council’s revenue budget;

·         Upgrade a building that is not compliant with current environmental legislation in order to support a more sustainable building in the future;

·         Provide professional office accommodation more appropriate to the Council discharging its responsibilities;

·         Improve the Council’s ways of working for staff by encouraging modern working practices, in turn providing efficiencies and cost savings for the Council;

·         Reduce the environmental footprint of the Council’s working practices;

·         Reduce energy costs associated with the building;

·         Increase staff satisfaction with their working environment;

·         Improve the quality and function of Westminster City Hall