Agenda item

Report of the Executive Director, Growth, Planning and Housing.

4.1       Councillor Tim Mitchell, Cabinet Member for Finance, Property and Corporate Services, introduced the item and explained that the proposals were the culmination of a large piece of work that had included a comprehensive procurement process.

4.2       Guy Slocombe, Director of Property Investments and Estates, then presented the report and began by stating that the proposed recommendations had resulted following a previous Cabinet decision on 25 May 2016 to approve option 2 of a previous report to pursue a refurbishment of City Hall through self-development. Since then, temporary accommodation had been secured at 5 Strand and Portland House and the decanting from City Hall to these two locations had been completed. The design for the refurbishment of City Hall and a stage one tender for the construction works and the Pre-Construction Services Agreement for the refurbishment had also been completed.

4.3       Guy Slocombe advised that the Outline Business Case that had been submitted to the 25 May 2016 Cabinet meeting had been reviewed and it had been updated to form the Full Business Case, which had Gate 2 approval. There had also been substantial levels of governance overseeing the programme, including the City Hall Refurbishment Programme Steering Group chaired by Councillor Robert Davies MBE DL, a task group chaired by Councillor Brian Connell and an officer group chaired by the Chief Executive. The report sought the approval to award the building contract to the preferred contractor as set out in the confidential Part B report.

4.4       Steven Mair, City Treasurer, confirmed that all activities undertaken were within the City Hall Refurbishment Programme’s agreed budget which included a contingency and that it was proposed that flexible capital receipts be used to fund qualifying revenue costs.

4.5       Councillor Antonia Cox enquired whether there had been any financial changes since the last assessment undertaken. Councillor Angela Harvey asked whether there were any plans to advertise letting opportunities on the building wrap to go around the City Hall building.

4.6       In reply, Guy Slocombe advised that rent levels had increased for higher floors bur had remained around the same for lower floors. He confirmed that space would be made available at the City Hall Building hoardings to advertise letting opportunities.

4.7       RESOLVED:

1.    That the award of the contract to the preferred contractor within the approved budget as detailed in the Part B report be approved.

2.    That authority be delegated to the Director of Property, Investment and Estates and the Director of Law to award the contract and execute works.

3.      That the use of flexible capital receipts to fund qualifying revenue costs up to a value of £27.1m be approved.

4.8       Reasons for Decision:

Approval of the recommendations contained within this report will enable the City Hall Refurbishment Programme to continue as planned and:

·           Upgrade a building that is not compliant with current environmental legislation in order to support a more sustainable building in the future;

·           Provide professional office accommodation more appropriate to the Council discharging its responsibilities;

·           Improve the Council’s ways of working for staff by encouraging modern working practices, in turn providing efficiencies and cost savings for the Council;

·           Generate income from letting high quality surplus accommodation to support the Council’s revenue budget;

·           Reduce the environmental footprint of the Council’s working practices;

·           Reduce energy costs associated with the building;

·           Increase staff satisfaction with their working environment;

·           Improve the quality and function of Westminster City Hall.