Meeting documents
Cabinet
Tuesday, 21 October 2008
ITEM CA15
DETAILED PROJECT APPRAISAL APPRAISAL NO: R4
Name of Scheme: Better Offices Programme – Central Offices - Refurbishment of County Hall
Basis of Estimate: Refurbishment budget Costs provided by framework contractor & 4th floor actual costs Furniture costs provided by preferred supplier Other cost estimates produced by Mouchel
Start Year: 2008/09
1. Introduction
On the 16 January 2007, the Cabinet authorised the implementation of the Better Offices Programme (BOP) and agreed the required funding subject to a project appraisal for the necessary capital expenditure being approved by the Cabinet. A Project Appraisal for the refurbishment of County Hall was approved on 16 December 2007.
This Project Appraisal supplements the previous approval for £2.018 million and is required due to:
· the proposed replacement of ceilings due to asbestos contamination found in the ceiling voids in County Hall and the need to improve lighting and aesthetic appearance · an increase in staff numbers and the wish to improve reception and meeting room facilities · increases in costs now that the actual costs of the 4th floor refurbishment are know
Replacement of ceilings will increase the project duration and the revised project timetable shows completion by September 2009.
2. Justification for increased expenditure
Ceiling and lighting Replacement
During the planning phase for the County Hall works, an intrusive asbestos survey identified damage to asbestos firebreaks, which has left debris in the ceiling voids on the 3rd and 4th floors. It is a requirement of Health & Safety legislation to remove asbestos debris and ensure that any asbestos remaining in the building is safely encapsulated and any future disturbance is managed. As a consequence the decision has been made to replace the ceilings on the 4th and 3rd floors to avoid any delay to the programme.
In addition the lighting which is integrated with the ceiling is beginning to fail, does not provide lighting to current standards, is not energy efficient and is becoming expensive to maintain. It is not possible to replace the lighting without replacing the ceilings. There would also be significant aesthetic benefits from replacing ceilings and they are reaching the end of their useful life.
Replacement ceilings and lights on all floors will cost an additional £350,000.
Increased Staff Numbers and Improving Reception
There are also additional costs arising from increased staff numbers. The project appraisal approved by Cabinet in December 2007 anticipated occupancy by 650 staff, a 150 increase on previous numbers, meaning that there would be 7.6 desks for every 10 staff.
Currently 716 staff will need to be accommodated (an increase of 66), meaning 7 desks for every 10 staff. This includes an allowance of 106 (equivalent of 15%) for vacancies and growth.
It is reasonable to conclude that there is a capacity problem, even if only some of the identified growth takes place and some vacancies are filled. It would also be inappropriate to invest substantial sums in refurbishing County Hall and it be overcrowded from the outset.
CCMT and the BOP Programme Board have considered this position and concluded that some staff should be moved from County Hall, both to ensure sufficient capacity and also to allow for improved reception and meeting room facilities on the ground floor. It has been concluded that Trading Standards would be the most appropriate team to move out as being based at County Hall causes operational difficulties and they are a relatively self contained team.
It has been considered whether it would be possible to move them to the existing accommodation in Unipart House but concluded that it would be too high a risk to try and move them in to Unipart House in the time available as this would require a move to flexible working and as Quest and Food with Thought Staff need to be moved there as a priority. However it could be possible over the longer term as numbers at Shared Services reduce and more effective use of space is made. Property Services has provided some resource to start working on making more effective use of space by introducing flexible working.
The preference is therefore to seek temporary accommodation for Trading Standards for a 2 year period, if possible by taking additional space at Unipart House until they can be incorporated in the existing space. This will result in an additional revenue cost of approximately £120,000 per year and some capital costs which will be kept to a minimum and both of these costs will be funded by BOP and will be the subject of a report to and approval by the BOP Programme Board.
Whilst works to County Hall are taking place the opportunity has been taken to consider improving reception and meeting room facilities on the ground floor. A proposal has been drawn up which has the support of CCMT and the BOP Programme Board. It gives a much larger reception area, providing waiting areas and a reception desk that is more visible from the entrance and allows the general office and hallkeepers office space to be open to reception, providing the opportunity for more flexible use of these resources.
A meeting room suite would also be provided giving improved facilities for all users of County Hall.
The additional cost is anticipated to be £120,000 plus an allowance for new furniture.
Increased Costs following completion of the fourth floor
The 4th floor has now been completed and revised and final costs are known. These show an increase over budget costs and the need to carry out some works which were not included in the original budget, including additional kitchen capacity, refurbishment of toilets, additional staff moves and additional meeting room and reception furniture. These items give a total additional cost for all floors of £205,000.
3. Recommendation
Cabinet is recommended to approve additional expenditure of £675,000 for replacement ceilings, improved reception and other increased costs giving a total capital cost of £ £2,693,000.
4. Policy Context
Provision of suitable and effectively used office space makes a significant contribution to the provision of high quality services and therefore the project will support the corporate objective of Value for Money, and the strategic priority of Better Public Services.
Improvements to County Hall are linked to the Council’s values (CHOICE), specifically providing a customer focus and assisting with the delivery of more efficient and effective services with greater team integration within and between services.
5. Justification
Rationalisation of city centre accommodation in Oxford is a major component of BOP. Refurbishment of County Hall will provide fit-for–purpose accommodation. There will be an improvement in energy performance as lighting will be more energy efficient. Co-location of teams will enable operational efficiencies and facilitate better work patterns. The project will enable the sale of Macclesfield House.
Refurbishment is justified on the following grounds:
· The modern work-style approach requires office space to be open-plan, with a better planned layout and providing an attractive work environment · An open-plan layout is necessary in order to use the space in the most effective way · Environmental conditions will be improved by removing partitions and increasing natural ventilation · Replacing all desks will allow the most efficient use of space, improve the appearance of the offices and give better working conditions · Improved reception and meeting room facilities will greatly improve visitor and staff experience of using County Hall and provide facilities more appropriate to a headquarters building
6. Financial Implications
The original approved appraisal showed estimated costs of £2,018,000.
Ceiling and lighting replacement on all floors will cost £350,000. The cost of a new reception is estimated to be £120,000 and the cost of additional items is £205,000 giving a total additional cost of £675,000 and a revised total capital cost of £2,693,000.
£50,000 of funding will come from the R&M budget as there will be maintenance savings arising from the refurbishment and some of the cost of toilet refurbishment will be funded from the repair and maintenance budget. It is proposed that the remainder of the increase will be funded from BOP programme contingency. Many of the major financial risks to the programme have been dealt with, although risks remain around capital receipts. This risk has been mitigated by using cautious capital receipt estimates.
The approval of this additional expenditure would reduce the programme contingency to £1,446,000. This represents approximately 15% of the remaining capital spend on the Programme which is considered to be a reasonable level of contingency.
7. Staffing Implications
There are no direct staffing implications. The project team will be working closely with managers, UNISON and other representative bodies to ensure that staff are consulted, accommodation needs are properly addressed and information is effectively communicated.
NEIL MONAGHAN SUE SCANE Head of Property Transformation & Chief Finance Officer Environment & Economy Corporate Core
Contact Officer: Mark Tailby, Property Services, Tel: (01865) 816012
October 2008 |