Agenda item

RESOLVED:

that Cabinet:

a)    Agree to the proposed new capital budget of £2 million to carry out Stage 1 of the Office Optimisation project and recommend to Council that the Capital budget is amended to reflect the proposed change.

b)    Authorise the Assistant Director Assets & Environment to procure and award the contracts to deliver the Stage 1 works.

c)    Authorise the Assistant Director Assets & Environment in consultation with the Executive Director Finance and Cabinet Member for Finance to dispose of the Lodge Road offices, in whole or part, by leasehold or freehold, for the best consideration reasonably obtainable.

d)    Agree that the Lodge Road offices be vacated by 31st March 2023 in order that the revenue savings and/or capital gains be achieved as quickly as practicable thereafter. 

REASONS RESOLVED:

To provide an effective accommodation solution, and best value for the residents of West Northamptonshire in consideration of service operating models and Council objectives.

To provide a fit for purpose facility to replace the Lodge Road offices for Council services which enables the wider objective to provide cost effective accommodation.

To reduce the Council’s energy use and carbon emissions.

To ensure timely delivery of financial improvements 

ALTERNATIVE OPTIONS CONSIDERED:

The choices on the budget open to the Council are as follows.

a.    Do nothing. This would not enable the closure of Lodge Road to Council services, retain a high level of under-used office space, not contribute to savings goals or the development of a unified ‘one Council’ culture.

b.    Approve the proposed budget. This would enable the work to proceed and the new Daventry hub to be created.

c.    Instead seek to purchase or lease office accommodation elsewhere in central Daventry. This is unlikely to provide suitable accommodation and location, and would not optimise use of the Abbey. It would involve new lease rent or purchase costs.

Given the time required to deliver the Stage 1 works, procurement will need to commence as soon as possible. For this reason, formal Cabinet authority for procurement is recommended to be granted now, and in advance of Council approval of the budget.

It is undesirable for the Council to hold vacant or partially vacant Lodge Road offices any longer than necessary. This incurs costs, leaves the building vulnerable, and does not make any economic or social contribution to Daventry. It is therefore recommended that authority is granted to enable its disposal for the most economically advantageous outcome.

However, it is also possible that the building might deliver greater benefits from other Council uses. These will also be tested prior to any decision to dispose.

To supplement the published report and in order to aid clarity, the Chair advised that an information sheet had been circulated summarising the savings which would result from office optimisation.

Councillor Longley explained that the office optimisation programme was seeking productivity gain by better utilisation of assets.  The estimated cost of upgrading the Abbey centre would be £1m.  All current voluntary sector partners would be retained.  £306k was the saving that would be made by exiting the Lodge Road premises.  There were two options – to lease or sell and the estimated annual savings from each option were outlined - £507,909 for lease and £343,749 (plus £4.5m capital receipt) for sale.

Plans for the Leisure Centre were a work in progress and would only proceed if financially viable. 

The office optimisation programme would result in a substantial productivity gain – including that from the Planning team’s move to Towcester.

At the Chair’s invitation, councillors made the following comments:

·        Local residents were unhappy about the closure of Lodge Road – would it be possible to retain the office and move other organisations in to the surplus space?

·        Had a building survey been carried out on the Abbey and Leisure Centre?

·        Voluntary organisations felt they had not been consulted about the plans.

·        The impact of the closure on staff needed to be considered.

·        The briefing note should be made available on the WNC website.

·        Work on the Abbey building should be undertaken in line with the net zero pledge.

·        Outreach sessions should be increased so that residents can access support and services.

·        The rationale of one council culture was accepted, but this should be balanced across West Northamptonshire.

It was explained that the first phase of office optimisation had looked at the model of support and the model of using hubs to deliver local services was being used.  There was too much office space for modern ways of working.  Consultation with voluntary organisations had taken place and each one had been spoken to.  Consultation with staff had also been undertaken.

Councillor Adam Brown noted that the plans represented a great step forward in productivity.  The public wanted the council to work in their interests with the best use of buildings and retention of public facing services.  He proposed an amendment to the recommendation (recommendation d) below) which was agreed by Cabinet.

Councillor Rebecca Breese advised that a key part of transformation was to improve resilience and productivity.  Staff would be supported, including financially.

RESOLVED: that Cabinet;

a)     Agreed to the proposed new capital budget of £2 million to carry out Stage 1 of the Office Optimisation project and recommended to Council that the Capital budget is amended to reflect the proposed change.

b)     Authorised the Assistant Director Assets & Environment to procure and award the contracts to deliver the Stage 1 works.

c)     Authorised the Assistant Director Assets & Environment in consultation with the Executive Director Finance and Cabinet Member for Finance to dispose of the Lodge Road offices, in whole or part, by leasehold or freehold, for the best consideration reasonably obtainable.

d)     Agreed that the Lodge Road offices be vacated by 31st March 2023 in order that the revenue savings and/or capital gains be achieved as quickly as practicable thereafter. 

However, it is also possible that the building might deliver greater benefits from other Council uses.  These will also be tested prior to any decision to dispose.