Hampshire County Council

Buildings, Land and Procurement Panel Item 7

15 January 2008

Major Projects Update

· Ashburton Court

· Children's Centres

· Merton Rise

· Carfax Site

Report by the Acting Director of Property, Business and Regulatory Services

1.0

Introduction

1.1

This report provides a regular update on the major projects currently being progressed.

The report highlights key issues with the following schemes:

· Ashburton Court

· Children's Centre

· Merton Rise

· Carfax Site, Winchester

1.2

The completion of these major projects will enhance the quality of place and maximise the wellbeing of users of the respective buildings.

2.0

Recommendations:

1. That the Buildings, Land and Procurement Panel notes the positive progress on all the major projects.

2. That the Buildings, Land and Procurement Panel advises the Executive Member for Policy and Resources that approval be given to:

(i) funding the Sherborne Road kickabout works (£110,000) to support the development of the Merton Rise Phase 2 proposals using either developer payments or part of the Merton Rise Infrastructure Works budget (with a subsequent recharge following phase 2 sales);

(ii) the Acting Director of Property, Business and Regulatory Services working jointly with MACE/Construction Futures using the County Council's existing framework agreement to establish the opportunities for the redevelopment of the Carfax site, Gladstone Street, Winchester, to prepare a business case for the preferred development strategy and report back to the Panel.

3.0

Ashburton Court

3.1

The previous report to the Panel on 2 October 2007 summarised progress with the principal construction project, identified the key risks to secure the first phase completion, provided an update on the decanting/move management plans and actions and reported on the financial management plan.

3.2

This update summarises:

· General progress to the main construction project, and the completion of the first phase

· The next stage of the decanting/move management plans and actions

· The management of the overall project and the key risks and opportunities

3.3

The construction project

3.3.1

As previously reported, the works to the first phase - the refurbishment of East Block - were delayed by the discovery and removal of limpet asbestos, but that the contractor had made up significant time.

3.3.2

A mitigation programme provided the basis to achieve the completion of the building works to East Block and avoid any delay to the programme. The commissioning and fit-out of the building is anticipated to take until mid January.

3.3.3

A sectional completion certificate for East Block is targeted for January, with the initial staff occupation commencing in mid January. There may be some adjustments to the moving-in programme should technical issues arise during the final commissioning, and this will be agreed with the Director of Children's Services.

3.3.4

The asbestos survey works and initial stripping out has been completed in North Block and works to West Block are programmed to commence during February.

3.4.5

Recent progress has been very encouraging and the contractor's performance to make up time has been of the highest order. HBG have brought in additional site managers and are working very closely with the design team to achieve the completion date and respect and manage the complexity of the interface regarding the enabling and facilitating works, fit out etc.

3.5

Decanting/Move Management

3.5.1

The work in support of the first phase completion has required a detailed programme of works to organise the necessary decanting and moves of some 650 staff, summarised as follows:

· The move of 35 Environment staff to Sheridan House mid November

· The move of 90 Environment staff to the ground floor of Capital House mid December

· The move of Children's Services from Castle Avenue (approximately 270) to East Block commencing mid January

· Implementation of minor works to Castle Avenue towards the end of January, including furniture and equipment and IT reorganisation (in preparation for Environment move)

· The move of approximately 250 Environment staff to Castle Avenue, commencing the end of January

· Clear and empty West Block for possession to the contractor by mid February (opportunity for earlier survey and investigation work)

3.5.2

The major implications of the interaction between completing East Block and the decanting, is the impact on staff. Children's Services and Environment will be organising and managing flexible working arrangements with their staff affected over this decanting period.

3.5.3

Monument House - installation of the new BT lines and the associated works have been completed enabling the successful transfer of the Urban Traffic Control systems to the new location.

3.5.4

Sheridan House - the final lease arrangements were agreed on the 19 October 2007, and refurbishment was subsequently undertaken and completed on the 16 November. The moves for 38 staff took place between 16 and 18 November.

3.5.5

Capital House - the ground floor of Capital House was vacated by Recreation and Heritage week ending 26 October and the office refurbishment works were completed during December. Additional works to facilitate disabled access have placed pressure on the budget for these works and the team are working to manage these within the project contingency. Relocation of staff from Ashburton Court (West) and Partnership House was completed during mid-December. Ninety staff will be relocated to the ground floor of Capital House.

3.5.6

Castle Avenue - Environment is due to move from Ashburton Court (West) towards the end of January. These moves will complete the relocation of Environment Group.

3.6

Financial and Management Plan

3.6.1

The approved budget of £40,166,000 approved by Cabinet on 24 July 2006 contained three principal elements - the construction works, the decanting and the related project costs, and professional fees. Further funding has been approved where it is matched by capital receipts from the original development plan, and the relinquishment of leases.

3.6.2

Cabinet on 25 June 2007 approved the implementation of the Data Centre fitout and Winchester City Council's contribution to the car park repairs that need to be instructed through the main contract with HBG. A strategy for the funding of the office furniture and IT desktop is being developed through CMT.

3.6.3

The current financial report for the main construction project is forecasting the contract to be on budget, with approximately £750,000 of the £2m contingency spent.

3.6.4

Progress continues with the value engineering and opportunity targets and there are a number of items still to resolve on the mechanical and electrical installations. A number of decisions will be reviewed in the light of financial pressure, and left until as late as possible eg, the replacement of the basement sprinkler system.

3.6.5

The reconciliation of the decanting costs is being kept under close scrutiny as the programme of works is rolled out. The review of the occupation strategy and consequential decisions have led to the expenditure of additional resources; and the client management required from key senior staff within PBRS to support and enable the project, and to minimise the risks, are greater than anticipated. There will also be an increase in resources to achieve cost savings and efficiencies on the project to keep within the approved budget.

4.0

Children's Centre Strategy

4.1

Design proposals for the various Children's Centres have progressed since the previous report to this Panel in October 2007, with almost all of the feasibility studies now signed-off by the respective host organisations. Progress on the 38 capital works schemes to be procured can be summarised as follows:

· 1 complete

· 2 on site

· 15 progressing designs to tender/negotiating contracts

· 4 awaiting planning permissions/Department for Children, Schools and Families (DSCF) approvals

· 12 preparing for planning/DCSF submissions

· 4 awaiting sign-off/agreement to funding grants to third parties

4.2

Of the 38 Children's Centre projects to be procured, four are proposed to be procured via a funding grant to third parties. Detailed negotiations on these arrangements are underway. A further two Centres are proposed to operate from a mobile Children's Centre, similar to the County Council's mobile library service. Designs for these are also underway and it is intended to tender and procure the new vehicles through Hampshire Transport Management.

4.3

The separate Procurement report to this Panel, confirms the 16 modular buildings being procured through the Framework for Major Schemes, the allocation of 11 projects to the four contractors identified in previous reports to the Panel in June and October 2007 and confirms the procurement route for the remaining projects.

4.4

A pre-construction order has been placed with Brazier Construction, the framework contractor appointed for the 16 modular projects, to develop the detailed designs for the various modular Centres with the selected specialist. This design work is underway. The main contract orders for the first three modular projects are expected to be placed shortly.

4.5

Progress is on programme, with the projects scheduled for completion between March and September 2008. There has been external market pressure on the factory production slots with the modular buildings specialist. Although this has moved back the production date for the first Children's Centre, this change of timing can currently be absorbed within the overall programme.

4.6

The Children's Centres programme remains financially on target.

5.0

Merton Rise and the former John Hunt of Everest Community School site, Basingstoke

5.1

5.1.1

Former John Hunt of Everest School site

Shortly after the transfer to the new site, the County Council completed an unconditional sale of its remaining ownership at the former school site. Basingstoke and Deane Borough Council also sold a smaller area of land located on the southern side of Carpenter's Down/Popley Way junction. The sale(s) were to Taylor Wimpey who have recently submitted a reserved matters application for the combined ownership for approximately 245 units and this will be considered by the Planning Authority early in the New Year. The developer of the Phase 1 land has made good progress with all of the first release now sold. Their gateway scheme is very striking and it will make an important contribution to the regeneration of the Popley Way frontage.

5.2

5.2.1

5.2.2

5.2.3

5.2.4

Merton Rise

There has been steady progress over the past six months on the wider Merton Rise project.

Phase 1:

Alongside the completion of the school, the Phase 1 developers, Miller Homes and Wimpey Homes have made good progress with some occupations of the first units already achieved and many more likely into the New Year. The County Council has procured the Park that forms part of Phase 1using developer contributions and this is also nearing completion. It is to be made available for use in the Spring by new residents of Merton Rise and also existing residents of Popley.

Phase 2:

Following selection of 2 developers for this important phase of the site, which includes up to 300 dwellings and the Neighbourhood Centre, the project team has been working closely with each developer team to develop their schemes of development and it is proposed that reserved matters applications for the various sub-parcels will be submitted in January 2008.

As reported to the Panel on 20 March 2007 meeting, there has been concern for some time of the availability of funding to secure a doctor's surgery as part of the Neighbourhood Centre. The PCT have now confirmed that there is neither funding or a need for a surgery facility within Merton Rise and advise that existing and new facilities at Park Prewett will provide adequate GP provision. Although this is disappointing, without a requirement or funding, the County Council cannot procure a facility independently. We are working with the developer to identify other potential uses for the "former medical building" and these might include premises for a veterinary practice and also accommodation for a number of community office type uses.

5.2.5

In addition, there is an altered market perspective in relation to the size of the proposed supermarket that forms the heart of the Neighbourhood Centre. We are in discussion with the Planning Authority and end users as to the nature and size of this proposed use and how this relates to the planning permission we currently have for the site.

5.2.6

Phases 3-5: Marketing for part of the land to the west of Sherborne Road, Phase 3 (for a further 225 dwellings) has recently commenced and the outcome of this marketing exercise will be reported to a future meeting of the Panel. Marketing of the remaining phases of development on the site will take place during Summer 2008.

5.3

Urban Extension Development

5.3.1

In relation to Merton Rise Urban Extension development in Basingstoke, it is considered appropriate on operational grounds (so as to avoid development and dwelling occupation restrictions set out in the S.106 agreement) for the County Council to procure a further area of strategic open space to support the development of the Phase 2 land. The principle of doing so was approved as part of the composite report to BLPP/EMPR in April 2007 which reported on the outcome of the Phase 2 marketing exercise. It is proposed that the Sherborne Road kickabout works, with an estimated cost of £110,000, be competitively tendered to selected approved contractors. The funding of the works is to be either from Phase 2 developer payments (if the sale(s) have completed) or by making use of a small part of the approved Merton Rise Infrastructure Works Budget (with a subsequent re-charge to this budget following Phase 2 sales), to ensure early delivery of this key area of open space.

5.4

5.4.1

5.4.2

Procurement Update

Following successful applications to GOSE, the diversion works to Chineham Lane and formal closure of Sherborne Road have now been completed. With the school open and the Phase 1 developments well advanced, parts of the newly constructed Spine Road have now been opened for use as public highway.

The construction of last part of the Spine Road (between Sherborne Road and the A340) is due to commence early in the new year as part of a wider improvement scheme being undertaken by the Highway Authority to the A339/A340 Ringway roundabout. These works are due to be completed by December 2008 to support the sale of the Phase 3 land to contribute towards the 2008/9 Receipt Programme.

6.0

The Carfax Site, Winchester

6.1

The Cabinet at its meeting on 25 June 2007 agreed that the Director of PB&R bring forward proposals for the redevelopment of the `Carfax Site'.

6.2

Following initial feasibility work it is proposed, using the County Council's existing Framework agreement, to develop with MACE/Constructing Futures a joint development strategy for the site. The strategic significance of the site being the gateway to Winchester on arrival at the railway station and its excellent transportation links. Adjacent to the sites owned by the County Council and the City Council is land held by the Ministry of Defence. It is proposed to contact the MoD to see if they would be prepared to take part in an overall master planning exercise for the area. The development potential of the site is significant.

LINK(S) TO CORPORATE STRATEGY

Yes

No

Hampshire safer and more secure for all

X

Maximising well-being

X

Enhancing our quality of place

X

This proposal does not link to the Corporate Strategy but, nevertheless, requires a decision because: