Agenda item

Briefing Note of the Executive Director, Resources

The Scrutiny Board received a briefing note of the Executive Director, Resources, which provided an update on the progress with the Customer Services Centre (CSC), which was part of the wider Customer Journey programme.

The Scrutiny Board noted that in June 2013, approval was given to kick start the Friargate business district to transform the Council and deliver savings.  The cost of delivering the CSC was estimated to be £1m, which was included in the one off capital cost of £59m for the overall programme.  However, following design development with architects and cost consultants and engagement with all key stakeholders, had provided a fuller picture of the scale of the required works.  This figure is now estimated to be £3m.

The Scrutiny Board raised serious concerns that the associated works which included structural alterations and removal of asbestos were not included in the £1m business case set aside for the scheme.  Members noted that due to the “live” office environment, these surveys and investigations were unable to be carried out.  The Scrutiny Board discussed the different types of asbestos testing that should have been done before the £1m estimated costs were submitted for approval.

The Scrutiny Board were also concerned that the original business case did not include provision for creating a new entrance to the CSC.  Members noted that it was assumed that the Broadgate Square Ramp could provide a compliant route in to the building, but following a number of surveys and investigations it was deemed inappropriate.  A feasibility report had proposed that, as a solution, the provision of a new lift and stair access from Unit 3, The Precinct to the first and second floors of Broadgate House, would be appropriate.

The Scrutiny Board robustly questioned Officers on where the additional £2m would come from to deliver the scheme.  Members noted that the additional capital investment would be funded from any underspend in this year’s revenue and capital investment and if necessary, contribution from reserves.

Despite the additional investment required for the scheme, Members noted that the Council could still achieve the £0.5m per year savings target within the abc programme and further proposed savings of £5m per year associated with the Kickstart programme.

Members discussed the risk register and questioned Officers on the details contained within it and how it related to the initial project plan.  Members raised concern that the same underestimation could happen to the other buildings which are scheduled for development. 

The Scrutiny Board sought reassurances that the issues raised at the meeting would not be repeated in any future development proposals and requested that the Cabinet Member for Strategic Finance and Resources be invited to attend a future meeting early in 2015 to discuss reducing the level of risk on the next phase of property development.

RESOLVED, that the Scrutiny Board –

1.  Noted the content of the briefing note.

2.  Request that the Cabinet Member for Strategic Finance and Resources be invited to a future meeting to discuss reducing the level of risk on the next phase of property development.