Agenda item

This report provides an update on progress with the Council’s corporate accommodation project, including targets and achievements for the period April 2007 to April 2008, and seeks approval for a revised business case for the project in support of the latest design for the new headquarters building at Hungate.

RESOLVED: (i)         That the content of the report, and the progress made on the accommodation project to date, be noted.

REASON:      To enable the Executive to monitor the project effectively.

                        (ii)        That the revised business case for the project in support of the latest design for the new headquarters building at Hungate be approved.  This shows a net present value of savings of £4.768m, an improvement of £2m since the original business case, and the early years revenue deficit of £2.094m, a reduction of £1m from the original business case, as detailed in Table 2 in the report.

REASON:      To ensure that the Council’s corporate imperative to rationalise its current administration portfolio is achieved, together with all the stated aims and outcomes of the project.

Members considered a report which provided an update on progress with the Council’s corporate accommodation project, including targets and achievements for the period April 2007 to 2008.  Approval was sought for a revised business case for the project in support of the latest design for the new headquarters building at Hungate.

The report outlined progress on Stage 3 of the project, which covered the period April 2007 to April 2008.  The targets and outcomes for Stage 3 had all been achieved except for the relocation of the Ambulance Station and subsequent closure of the Haymarket car park.  Positive efforts to resolve outstanding issues in these two areas were continuing.  A planning application for the new headquarters had been submitted in the week commencing 19 May 2008 and the project remained on target for the occupation of Hungate by 2010.  The latest design proposals for the headquarters building had responded to feedback received from consultation with stakeholders and professional bodies. 

Since the last report to the Executive, in July 2007, there had been a number of Project Board meetings where the business case model for the project had been updated as new information became available.  Most of these changes had resulted in an improvement to the affordability of the project and the gross capital expenditure had remained at the approved level of £40.3m.  However, the new design of the building would result in an increased cost of £3.5m and the 12 week delay for further design development had meant factoring in additional inflation costs.  Details were set out in Annex 1 to the report.  The revised affordability position, taking into consideration new accounting rules enabling the Council to defer repayment of debt, was illustrated in Table 2 at paragraph 57 of the report.  It was stressed that the project continued to be affordable and to make sound business sense.

In response to Members’ questions, Officers reported at the meeting that:

• The design incorporated the use of bio diesel as an energy source.  This would be created from waste cooking oil, the additional cost of which would be offset by reduced energy consumption.
• Account was being taken of the needs of special interest groups, including young people, in producing the final design

Having noted the advice of the Shadow Executive on this item it was

RESOLVED: (i)         That the content of the report, and the progress made on the accommodation project to date, be noted.

REASON:      To enable the Executive to monitor the project effectively.

                        (ii)        That the revised business case for the project in support of the latest design for the new headquarters building at Hungate be approved.  This shows a net present value of savings of £4.768m, an improvement of £2m since the original business case, and the early years revenue deficit of £2.094m, a reduction of £1m from the original business case, as detailed in Table 2 in the report.¹

REASON:      To ensure that the Council’s corporate imperative to rationalise its current administration portfolio is achieved, together with all the stated aims and outcomes of the project.