Agenda item

This report presents the results of an independent review of the decision to locate the Council’s new headquarters in the city centre, together with an appraisal of potential sites.  It also seeks approval to begin a procurement process to support the development of potential solutions that may come forward for consideration, and proposes a set of high level criteria for the procurement.

RESOLVED:(i) That the content of the report be noted, particularly the conclusions of consultants E C Harris in their assessment of the validity of an earlier decision to locate the Council’s new headquarters within the city centre as opposed to an out of town location;

                        (ii) That the commencement of a procurement process, to support the development of potential solutions that may come forward for consideration, be approved;

                        (iii) That the set of high level procurement criteria listed in paragraph 33 of the report be approved;

(iv)That, to support the need for expedience, delegated authority be given to the Project Champion – Director of City Strategy, to approve a set of detailed criteria within the high level criteria listed in paragraph 33 on which the procurement process will be based;

(v)That the need for more detailed work to be undertaken to inform the preparation of a more detailed accommodation strategy, to enable the Council to examine all relevant factors before making a critical investment decision, be acknowledged.

REASON:      To progress the Council Headquarters project.

Members considered a report which presented the results of an independent review, by consultants E C Harris, of the decision to locate the Council’s new headquarters building in the city centre, together with an appraisal of potential sites for the building.

The consultants had concluded that a city centre location was highly likely to be the only appropriate solution for the Council’s needs, in terms of both accessibility for customers and best practice.  With regard to potential sites, the purpose of the consultants’ report had been to gauge the extent of potential viable interest in providing a solution to the Council’s accommodation needs and to help inform the criteria for procurement.  The aim would be to seek a complete solution from a potential developer, as compared to the previous Hungate solution, where the Council was effectively acting as developer.

The report outlined the current situation in respect of Hungate, together with information relating to two other potential sites; West Offices and Layerthorpe.  It was noted that a reduced scheme could be achieved at Hungate within existing budget provisions; however, this would still leave a shortfall of space, resulting in further costs of around £3-5m.  It was believed that the other two potential sites had the potential to meet the overall needs of the Council within the affordability parameters of the current approved budget.

Paragraphs 29 to 31 outlined the requirements with which the Council must comply under EU procurement law.  These included a competition to achieve the most economically advantageous tender.  A set of detailed criteria for evaluating the outcomes of the procurement process was being developed, based upon the principles outlined in paragraph 33.  It was estimated that the procurement could be streamlined to take about six months.  A proposed timescale, resulting in completion of the construction by late 2012, was set out in paragraph 35.

Members noted that council tax payers would be better off as a result of the project, despite the delays, as well as the benefits it would deliver for staff and customers.  In particular they highlighted that the receipt from the sale of St Leonard’s Place had been invested and that the interest it was generating exceeded the additional year’s rent that had to be paid as a result of the delay to the project.  It was also noted that other funds for the project had been borrowed at low, long term fixed, interest rates and were now generating interest at higher levels.

Having noted the comments of the Shadow Executive on this item, it was

RESOLVED:(i) That the content of the report be noted, particularly the conclusions of consultants E C Harris in their assessment of the validity of an earlier decision to locate the Council’s new headquarters within the city centre as opposed to an out of town location;

                        (ii) That the commencement of a procurement process, to support the development of potential solutions that may come forward for consideration, be approved;¹

                        (iii) That the set of high level procurement criteria listed in paragraph 33 of the report be approved;

(iv)That, to support the need for expedience, delegated authority be given to the Project Champion – Director of City Strategy, to approve a set of detailed criteria within the high level criteria listed in paragraph 33 on which the procurement process will be based;²

(v)That the need for more detailed work to be undertaken to inform the preparation of a more detailed accommodation strategy, to enable the Council to examine all relevant factors before making a critical investment decision, be acknowledged.³

REASON:      To progress the Council Headquarters project.