Agenda item

Report of the Director of Property, Investments and Estates

7.1     The Committee received a report that provided a background of and an update to the Council’s operational property rationalisation strategy and the intended outcomes.

7.2     The committee noted that the paper was an update to the corporate property strategy paper submitted to the committee at its meeting on 18 November 2015 and provided a summary of progress since that meeting.

7.3     The Committee considered the report and asked questions on a range of issues including i) the process for appointing a contractor to work with the operational property team to deliver the strategy, ii) how CityWest Homes’ requirements would be incorporated in the strategy, iii) the areas of the portfolio not included in the scope of the strategy and why, iv) the likelihood of services losing required operational space and the possible effect this would have on service quality and v) how officers envisaged hubs and clusters would work.

7.4     Alan Rhind, Head of Operational Property, explained that BNP Paribas Real Estate was appointed to assist the operational property team to deliver the strategy following a competitive tendering process.  He advised that they were due to be paid £25,000 for Stage 1 (stakeholder engagement) and £40,000 for Stage 2 (developing the strategy and identifying savings).  He further advised that the results of data from Stage 1 could be made available to members prior to a final decision on the strategy.

7.5     With regard to CityWest Homes, Mr Rhind explained that the Council’s housing ALMO was carrying out an on-going review of surplus accommodation in its portfolio and that this will be shared and form an important part of the overarching operational property strategy.  In response to a supplementary question he explained that the while the Council did work with other public sector bodies the disposal of surplus NHS properties and the benefits to the Council of purchasing these fell outside the scope of the strategy.

7.6     Mr Rhind explained that there were parts of the operational property portfolio such as parks and cemeteries that were not included within the scope of the rationalisation strategy.  Whilst opportunities existed in these areas the aim was to examine aspects of the portfolio where it was easiest to combine operational efficiencies and generate income from assets identified as surplus.  He clarified that it is not the intention to sell surplus assets, but to use them to generate income, unless better income generating opportunities are available from use of the capital raised from disposal.

7.7     Hub Strategies, workplace management, service, co- locations and alternative delivery models had yet to be developed as the Council was still engaging with stakeholders regarding their future property requirements.  He clarified that the strategy was being designed to make better use of the Council’s assets.  It was for service areas to determine their operational and property needs from within their budget.

7.8     The committee noted that a more in-depth paper will be submitted to a future meeting of the Committee as the project progresses and details emerge.

7.9     RESOLVED: That the report be noted.