Archived decisions

Decision Maker:

Buildings, Land and Procurement Panel

Date of Decision:

31 March 2009

Decision Title:

Major Projects Update

Decision Reference:

574

Report From:

Acting Director, Property, Business and Regulatory Services

Contact name:

Steve Clow

Tel:

7858

Email:

[email protected]

Introduction

2.1.1

The Ashburton Court redevelopment project is now coming to a conclusion during a time of significant change for the County Council.

2.1.2

As Members will recall the project appraisal was approved by Cabinet in July 2006; enabling works commenced late summer that year with the main construction works beginning in April 2007. The first major phase for the refurbishment of East Block was completed in January 2008. The second major phase to complete North Block, West Block and the Podium new accommodation is still on programme for completion on 5 June 2009.

2.1.3

The key achievements and benefits of the project can be summarised:

· The delivery of the construction project to an agreed programme and within the £40,166m budget.

· The movement of 1,100 staff to facilitate the refurbishment works, over a phased programme.

· The management of temporary accommodation and working arrangements to enable the major decanting operation.

· £200,000 per annum saving on running costs for Winchester offices

· 75% more staff occupying the refurbished accommodation (625 before 1,100 after refurbishment).

· 30% more space efficient (staff per floor area).

· 4500m² reduction in Winchester office space.

· 50% reduction in energy costs, on a like-for-like area basis.

· The focal point to develop more effective cross-departmental working and understanding; and the implementation of a corporate Facilities Management (FM) operation.

· A successful demonstration project for Workstyle and for the asset management/office accommodation workstream that the County Council is leading on for IESE across the south east region.

· Provision of additional and more flexible facilities for all Members, staff and visitors.

· The Carbon Trust sponsoring the project as a case study to evaluate reductions in carbon emissions. It will achieve BREEAM excellent rating.

· Creation of more flexible spaces and modern IT infrastructure which will release opportunities for further efficiency and intensification of use over time.

2.2

Project Strategy/Implementation

2.2.1

The construction programme was organised to reflect the operational requirements of the County Council, the enabling decanting arrangements and the risks of a large complex project. It comprised initial enabling works, with two subsequent major phases - the refurbishment and handover of East Block, and the larger phase of undertaking works on the North and West Blocks and the Podium. There is a final phase of residual works comprising a new service lift and the refurbishment of the link between Ashburton Court and Elizabeth II Court. This will mean that this link will be out of action for a period over the summer 2009.

2.2.2

Initial works to provide a temporary park and ride facility at Bar End were undertaken during the summer of 2006. It was also intended to complete the limpet asbestos removal to the soffit of East Block prior to commencing the main works; however, this proved impossible owing to the delay associated with the removal of asbestos, which meant the work could not begin until the beginning of 2007. This subsequently delayed the works to East Block, which were completed in mid January 2008.

2.2.3

The contractor is projecting sectional completion for North, West and the Podium by 5 June 2009. Although some activities are two to three weeks behind (the kitchen/restaurant and the auditorium), there is scope to make up this time. These areas are not critical to the move management programme and the commencement of the final phase.

2.2.4

The residual works programme has been identified as four months from the beginning of June.

2.3

Client Management Arrangements/Reoccupation

2.3.1

Organisational arrangements with the four departments who will occupy the refurbished accommodation have been established. The Facilities Management workstream in particular is closely linked with corporate developments and other crosscutting work integrated through the project arrangements. The reoccupation programme, which links with the contractors detailed "closedown" programme identifies the key staff moves as:-

· IT Services in June

· Adult Services early July

· Environment late July/early August

2.3.2

Also this summer, the new main reception area for the County Council in Winchester, the café/restaurant for staff and visitors and new meeting facilities will be ready.

2.3.3

The furniture selected for this building forms part of the flexible working strategy to ensure greater efficiency, making the building 30% more space efficient and enabling increased flexible working. The use of mainly new furniture facilitates near doubling of the occupancy previously achieved, leading to greater savings on the cost of accommodation which would otherwise have had to be retained. The savings in occupation cost/rent will accrue over the next 20 years plus. The chairs were selected to ensure maximum flexibility for use by a variety of people, whilst complying with Health and Safety at work regulations.

2.4

Financial Appraisal

2.4.1

The project appraisal was approved by Cabinet in July 2006 in the sum of £40,166M. This sum included for the construction works, decant/facilitating costs, design fees and project allocated costs but excludes the costs of fitting out the data centre.

2.4.2

The decision to invest in the redevelopment was considered against the estimated cost (both short and long term), practicalities and opportunities for future disposals or alternative strategies. The cost of providing a completely new building, would have been a minimum capital cost of £70-£75m due to the significance of the demolition and its effect on the adjoining infrastructure (roads and services, etc).

2.4.3

The maintenance liability over the short term (five years) would have required planned programmes of work to address the external cladding, top deck car parking, roofing, window replacements, and engineering infrastructure costs (mechanical, electrical, lifts etc), together with upgrading the internal spaces. This cost would have been in the order of £15m with decanting costs considerably adding to this. A maintenance only strategy would not have provided the opportunity to relinquish other, mainly leasehold offices or have facilitated the rationalisation of buildings and their occupation. A corporate approach to facilities management, including reception, printing, postal and maintenance would have been much more difficult to deliver.

2.4.4

The refurbished Ashburton Court will use 50% less energy per square metre of floor area than the original building. A comparison of annual costs before and after the refurbishment, including the redundant properties, is estimated to save approximately £200,000 a year on running costs.

2.4.5

The relocation of the existing Data Centre to the new accommodation is being undertaken at the same time as the major refurbishment project to avoid additional future costs, to mitigate any delays and to integrate the re-commissioning of the building.

2.4.6

Winchester City Council also has a contractual obligation to contribute towards the maintenance costs of the car park.

2.5

Asset Management

2.5.1

The Department of Communities and Local Government's Publication entitled "Building on Strong Foundations, a Framework for Local Authority Asset Management" quotes Ashburton Court as a Best Practice Case Study for rationalising office space and introducing new working practices.

2.5.2

The Hampshire Workstyle report was considered by the Panel in July 2008 and brought members up to date with progress on the re-occupation and asset management strategy, including specifically those buildings earmarked for vacation and ultimate disposal as a consequence of the investment.

2.5.3

The redevelopment of Ashburton Court has already demonstrated the more efficient use of space and the introduction of flexible working. The following Hampshire Workstyle programme will improve the way the County Council works and will be a platform for change in the use of buildings and embrace improved joint working. One of the most notable features of the last two years has been the way in which planning for, and occupying, Ashburton Court has brought departmental collaboration which will reap future efficiencies.

2.6

Conclusions

2.6.1

The project is being successfully delivered to the project objectives; and has provided real opportunities for the County Council in terms of improved asset value; programme of efficiencies through Workstyle; cross departmental working and wider benefits for staff and reduced running costs.

2.6.2

The project has acted as a catalyst for cultural change, with the sharing of experiences and learning across departments.

3.1

The capital works schemes for Phase II of the Children's Centres Strategy are now nearing completion. Progress on the 38 schemes can be summarised as follows:

· 29 projects complete

· 4 projects on site, with 2 vehicles also in manufacture

· 1 project due to start on site late March

· 2 projects due to start on site later in Summer 2009

3.2

All 16 of the modular-built projects are now complete. 4 extension projects are underway: Haselworth Primary and New Milton Youth Centre, together with 3^rd party owned premises at Calmore Community Centre and Winnall Community Centre. Following completion of the necessary legal agreements, a further extension project at Townhill Farm Community Centre is scheduled to commence shortly.

3.3

The two mobile Children's Centre vehicles which are being procured through Hampshire Transport Management will be in operational service in April.

3.4

Planning permission is being sought for the Spring Meadow Children's Centre project at the former Shepherds Spring Infant School, Andover. Initial enabling works, including asbestos removal, are scheduled for April 2009. Additional funding of £500,000 has also been awarded from the Sure Start Early Years Childcare Grant for re-cladding works. The main works are programmed to start on site in July 2009, completing in March 2010.

3.5

3.6

Following feasibility work on alternative locations, the Children's Centre for the Ringwood area is now proposed to be located in the grounds of Ringwood Junior School, as an extension to the recently completed rugby clubhouse. A planning application for this will be submitted in due course.

The combined project appraisal for the Phase II Children's Centres approved in July 2007 included a proposal to extend the Beechdown pre-school in Basingstoke, funded from the capital receipt arising from the former school site. With the capital receipt delayed due to the downturn in the housing market this project has been developed to a stage where it can be held until the market recovers and the sale of the remainder of the site progressed. The pre-school proposals are incorporated into the masterplan for the site as a whole, in conjunction with the Extra Care Housing element.

3.7

In June 2009, the Panel will receive a detailed report setting out the proposed locations, building designs and procurement strategies for approximately 25 projects within Phase III of the Children's Centre strategy.

3.8

The site selection process for the remaining 25 Children's Centres to be established under Phase III is progressing well, with preferred locations now identified for 19 out of 25 Centres. Feasibility work on these locations is underway and is to be presented to each of the host organisations for review and formal agreement in the near future.

3.9

A procurement strategy is being prepared for this emerging workload, based on a series of contract packages with framework contractors. A combined over-arching Project Appraisal for all the Phase III schemes will be reported to the next meeting of this Panel in June 2009, together with Executive Member Policy & Resources.

3.10

Both Phase II and Phase III of the Children's Centres programme remain financially on target.

LINKS TO THE CORPORATE STRATEGY

Yes

No

Hampshire safer and more secure for all

Corporate Business plan link no (if appropriate)

X

Maximising well-being

Corporate Business plan link no (if appropriate)

X

Enhancing our quality of place

Corporate Business plan link no (if appropriate)

X

OR

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

OTHER SIGNIFICANT LINKS:

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Direct Links to Specific Legislation or Government Directives

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Section 100 D - Local Government Act 1972 - background documents

The following documents discuss facts or matters on which this report, or an important part of it, is based and have been relied upon to a material extent in the preparation of this report. (NB: the list excludes published works and any documents which disclose exempt or confidential information as defined in the Act.)

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