The purpose of this report is to approve the expenditure of the 2018/19 accommodation capital budget on the council’s property assets to facilitate the delivery of savings by releasing higher cost rented property, enable more localised working, and to ensure buildings are safe and fit for purpose.

A summary of proposed change and expenditure is as follows:

·       £170k for alterations at 1a St. Owen Street, 33/35 Union Street, Nelson House and the Shirehall, Hereford to enable the relocation of Children’s Services from offices at Bath Street and deliver savings of circa. £120k per annum.

·       £135k for alterations to Multi-Agency Offices at Leominster, Ledbury and Friar Street Hereford to enable more localised working and service delivery.

·       £200k to provide additional emergency evacuation facilities at Plough Lane, Hereford to ensure the property is compliant and fit for future use.

In summary the expenditure is to enable a number of accommodation projects to be undertaken which are provided in the attached business case.

That:

(a)            alteration worksto the following corporate properties be approved:

·       1A St. Owen Street Hereford: £105k

·       33/35 Union Street Hereford:  £20k

·       Nelson House, Hereford: £25k

·       Shirehall, Hereford: £20k

·       Friar Street, Hereford: £30k

·       Leominster MAO: £90k

·       Ledbury MAO: £15k

·       Plough Lane, Hereford: £200k

(b)        the chief finance officer be authorised to take all operational decisions to implement recommendation (a).

1.              Relocating staff from the Media Centre, Bath Street, Hereford to leased premises would neither achieve cost savings nor optimize the use of the council’s freehold assets.

2.              Without adequate expenditure on the alteration of freehold property assets to permit the movement of staff would mean that revenue savings will not be realized and premises would not be fit for purpose.

3.              Failure to carry out alterations to the council’smulti-agency offices will mean that the opportunity to enable more agile and localised working, along with improving utilisation and the delivery of services in the community will be missed.

4.              Not adequately investing in alterations to the estate will mean that changes to the working environment and delivery of services could be negatively impacted.

5.              Property assets require improvement to ensure that changing legislative requirements are met and buildings are compliant. Failure to adequately invest in improvements to emergency evacuation could lead to breaches of statute.

6.              Carrying out improvement works on property assets will satisfy the council’s obligation to comply with its legal requirements under the Health and Safety at Work and Occupiers Liability Act.