To consider a report on the Office Accommodation Strategy Options Appraisal.

The Leader, in introducing the report, proposed amendments to the recommendations as follows (amendments underlined):

·         Recommendations a-c remained unchanged.

·         Recommendation (d): ‘the Chief Executive be delegated authority to proceed with the preparation of a detailed design specification, subject to a satisfactory business case, and the development thereafter of shared office accommodation at Plough Lane’.

·         Recommendation (e): ‘the overall Accommodation Strategy, which should include the retention of the Shire Hall and Town Hall, be brought to cabinet by the end of 2009.

·         Recommendation (f) ‘proposals for the long term use of the Shire Hall and Town Hall to be brought back to Cabinet in four months time.

The Cabinet Member Resources welcomed the amendments to the recommendations which emphasised the importance of the Shire Hall and Town Hall as valued iconic buildings to be retained in the Council’s portfolio.  Members were reminded of the original decision in 2005 to progress the purchase of the Plough Lane site as part of the then current accommodation strategy, which due to changing circumstances was not implemented.  Following the recommendations of the Strategic Monitoring Committee, the consultants Knight Frank (KF) were appointed to carry out a full options appraisal on a number of specific sites, the outcome of which supported the Plough Lane site as the most beneficial in financial and deliverability terms.  Knight Frank’s options appraisals had been revised by the Council’s external financial consultants (Capital) who had deemed the KF report reasonable.  The Cabinet Member Resources stated that the Plough Lane option for shared office accommodation would provide many benefits including; improvement in service delivery, long term revenue savings, reduce carbon footprint and provide a catalyst for regeneration.  Members were advised that the current owners of the Plough Lane site had expressed an in principle agreement to sell the site (which comprised of a larger area than that discussed in 2005).

The Leader stated that local government needed to address carefully how it was going to provide quality public services in the future when government cuts in public finance occur from 2010 onwards. He said a preferred course of action would be to seek savings through efficient administration of services in the first instance before making cuts in valued public services and facilities. Cabinet was informed by the Leader that the evidence presented in the open report was substantially backed up by both the exempt and the consultant’s reports.  He expressed his thanks to the Chairman of SMC who had been made aware of the progress with the negotiations.

In discussion the following points were raised and clarified:

·         The benefits to the environment of a shared office accommodation at Plough Lane were articulated and it was stated that the wider business case for its purchasing was strong.  Procuring a site with an existing suitable office accommodation was considered to be a positive contribution to reducing the possible carbon footprint impact.

·         It was emphasised that the decision before Cabinet would be to add to the Council’s asset portfolio during a strong buyers market and did not relate to the disposal of any Council assets. 

·         The rationalisation of the Council’s office accommodation had been a long standing issue to resolve, with the option for Plough Lane taking account of flexible ways of working, including peripatetic working and touch down desks. 

·         On the point of purchase, the lease on the current Plough Lane building would cease which would secure the current office building beyond 2010.  It was stated that for the duration of the development of additional accommodation, employees would remain in their current locations.

·         In recognising that the Plough Lane site did not rate highest in the consultant’s assessment criteria (at appendix 2 of the report) the Head of Asset Management and Property Services stated that in his view, the Plough Lane site should have scored higher on the criteria.

RESOLVED that:

a)      progress made in the development of a business case supporting an integrated back office accommodation strategy for the council and NHS Herefordshire be noted;

b)     Plough Lane be endorsed as the preferred option;

c)      the decision taken by Cabinet in 2005 to purchase Plough Lane be reaffirmed in light of the findings of the recent options appraisal, and authority be delegated to the Chief Executive to conclude negotiations for the property acquisition;

d)     the Chief Executive be delegated authority to proceed with the preparation of a detailed design specification, subject to a satisfactory business case and the development thereafter of shared office accommodation at Plough Lane;

e)     the overall Accommodation Strategy, which should include the retention of the Shire Hall and Town Hall, be brought to Cabinet by the end of 2009; and

f)       proposals for the long term use of the Shire Hall and Town Hall be brought back to Cabinet in four months.