Agenda item

AGILE OFFICE ESTATE STRATEGY UPDATE REPORT

Purpose of the report: Update on Surrey County Councils Agile Office Estate strategy, a work stream of the Councils Agile Organisational Programme.

Minutes:

Witnesses:

Natalie Bramhall, Cabinet Member for Property and Waste

Leigh Whitehouse, Deputy Chief Executive and Executive Director of Resources

Simon Crowther, Director Land and Property

Matthew Pizii, Head of Strategy and Planning

Dominic Barlow, Assistant Director Property, Strategy and Planning

Brian Boundy, Strategic Advisor Facilities Management

Key points raised during the discussion:

The Chairman asked what the extent of discussions with Land and Property in relation to recent work at Quadrant Court was.

The Cabinet Member for Property and Waste summarised the previous uncoordinated approach to the Councils office estate. It was felt that the estate was unaffordable and previously not fit for purpose. The Agile Office Estate Strategy had been addressing these issues by adopting a strategic approach to transforming the Councils office estate with the move out of County Hall in Kingston being the catalyst. The Council was evolving to become a more agile and sustainable organisation delivering a reduced estate footprint with essential transformational investment delivering fit for purpose workspaces across the county as well as delivering a reduction in costs. The Select Committee’s focus on the Northwest Quadrant and Quadrant Court was appreciated, however offering context at this time was appropriate. With regard to Quadrant Court and the Greener Futures work, the Cabinet Member for Property and Waste said she had not been made aware of the appointment and contractual relationship. These regrettable circumstances and the fact that Land and Property should have been more involved have been raised with the Director for Environment and the Cabinet Member for Environment. Costings for the flood damage caused by a compression joint to a hot water tank that had not been sealed adequately were expected to be more than £1 million.

The Chairman asked if the building was back in use. The Strategic Advisor, Facilities Management confirmed that the building was back in full use except for some meeting rooms.

The Chairman queried if contractual discussions around the fault were taking place. The Strategic Advisor, Facilities Management confirmed that an investigation was taking place adding that claims that the workmanship of the joint had resulted in the malfunction were yet to be substantiated. A report would be made available at the end of October 2002 following the investigation and would include the expected costs for remedial works. The Chairman requested that the Resources and Performance Select Committee be updated when that information was received. Action: The Strategic Advisor, Facilities Management

The Vice Chairman, in reference to recommendation three of the report, asked if bringing the timescale for bringing the report back to Cabinet should read Q2 2023, instead of Q2 2022. This was confirmed.

The Vice Chairman queried why Quadrant Court and other properties had been allowed to run into disrepair with minimum investment, as referenced in the report. The Cabinet Member for Property and Waste said that Quadrant Court had not been allowed to run into disrepair, however it was evident that historically, minimal maintenance and investment had been inadequate. The current Land and Property team were working under strong management to develop improved maintenance across the estate. The Vice Chairman, in reference to the report noting that minimal levels of maintenance and investment have been undertaken historically, asked why that was the institutional reaction to the buildings owned by the Council. The Deputy Chief Executive and Executive Director of Resources challenged this interpretation of the report noting that the report stated that the ‘minimum’ amount of maintenance had been undertaken, which is different from ‘minimal’, it being what was adequate rather than less than that. From 2010 onwards during the period of austerity, some decisions were made to balance the budget which may have been expedient in the short term but provided challenges medium to longer term.

The Vice Chairman asked why the Council continues to work in silos resulting in the Cabinet Member for Property and Waste to be unaware of a contact that sits within their portfolio. The Cabinet Member for Property and Waste was not aware how this situation had been allowed to happen and had been given assurances by Greener Futures that it would not be repeated.

A Member asked for reassurances that all contractors and works would be carried out under the correct warrantees and insurances. The Strategic Advisor, Facilities Management gave assurances that future contracts would have the required warrantees and insurance.

A Member reiterated that any contract let by the Council should be checked against compulsory guidelines and governance. The Cabinet Member for Property and Waste confirmed that any contracts let by the Land and Property team go through a process of confirming warrantees and insurances.

The Chairman, in noting a previous contractual issue considered by the Resources and Performance Select Committee, reiterated that it had previously been recommended that all contract specifications be regarded carefully at the appropriate level.

A Member, considering significant increases in energy costs asked if buildings were being assessed in terms of energy cost implications. The Cabinet Member for Property and Waste confirmed that urgent assessments were taking place with a new Energy Management Task Force focusing on operational, behavioural and technological initiatives.

A Member asked if the disposal of underutilised buildings would be considered. The Strategic Advisor, Facilities Management confirmed that it was part of the wider estate strategy to look at the utilisation of buildings with the property and strategy team and occupancy was being considered as part of the corporate office estate to identifying opportunities to reduce energy costs. The Member requested that the Resources and Performance Select Committee be provided with more detail around the performance of building and occupancies. The Cabinet Member for Property and Waste confirmed that these points were being addressed as part of the whole Agile Office Strategy.

A Member was concerned to learn that Land and Property were responsible for energy costs across the organisation rather than departments. The Deputy Chief Executive and Executive Director of Resources explained that this was consistent with the corporate landlord model currently in place. Land and Property were custodians of the buildings rather than the services residing within them to avoid fragmented decision making around building use. Risks would continually be monitored and mitigated. The Director for Land and Property added that sharing clear reporting data broken down by building and service would encourage the right behaviour.

Resolved:

The Resources and Performance Select Committee:

1. Supports the Agile Office Strategy which seeks to reduce costs and environmental impact.

2. Notes the ambitious timetable provided in the report and is concerned that this timetable may not be achievable.

3. Requests that the Select Committee continue to be kept updated on the progress of Agile Office Strategy decision-making and delivery.

4. Asks the Deputy Chief Executive and Executive Director of Resources to ensure:

a. Robust financial regulations (contracting arrangements) are in place.

b. Proper due diligence regime for contractors is followed.

c. That the occupancy ratio figures across the Council’s office estate; and a briefing on the Energy Management Task Force be provided to the Select Committee.

AGILE OFFICE ESTATE STRATEGY [Item 9]

[Part Two discussion internal record only, not for publication]