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Sandwell Metropolitan Borough Council

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Sandwell Metropolitan Borough Council Agenda Item 14 Report to Cabinet 28 June 2017 Subject Award of Contract - Children’s Services Trust Accommodation (Key Decision Ref. No. SMBC16164) Presenting Cabinet Core Council Services Member: 1. Summary Statement 1.1 This paper is set in the context of an overall strategy and against what the Council accommodation requirements may look like 2025-30 options have been considered in achieving both a suitable solution for the Children’s Trust and the Council. 1.2 As a result of the statutory direction the Council has re-evaluated its accommodation portfolio to accommodate the request of the Children’s Trust and its desire to establish a Headquarter (HQ). This report sets out the council approach in achieving suitable accommodation. 1.3 Of the various options considered this proposal provides the Trust with an Oldbury based accommodation campus in support of a HQ, separate conferencing facility whilst retaining their Single Point of Contact (SPoC) services within Sandwell Council House (MASH SPoC). Family Contact, Youth Offending Teams and COG’s remain unchanged at present. 1.4 In order to support the Trust moving forward, investment in to the new HQ (Wellman Building) and conferencing/Training suite (Metsec Building) will be required. The funding to undertake these works forms part of the council’s business case to the Department for Education (DfE). 1.5 The funding to undertake these works forms part of the council’s business case to the DFE. However, there could be serious implications for the accommodation proposals subject to funding not being approved by the DFE. 1.6 For a number of years ‘Corporate Landlord’ has engaged in a programme to rationalise the office accommodation estate. This has seen the Council exit a number of leased and council owned buildings, with more rationalisation planned between now and the mid 2020’s. 1.7 As part of this ongoing programme Corporate Landlord had targeted Facing the Future savings by 1 April 2017 to include the Wellman Building (Oldbury). In addition, the Metsec Building was identified for further revenue savings through disposal or potential investment opportunities at a later date. 1.8 The revenue savings combined for both Wellman and Metsec which creates a budget pressure for Corporate landlord. This sum will form part of the council’s business case to the DFE. 1.9 As part of the overall accommodation strategy an investment programme has been identified for the council’s office accommodation to include Sandwell Council House which will not only continue to support all other council services but also the Trust and its Oldbury campus approach. Further details are attached for your information 2. Recommendation That Cabinet; 2.1 Approves the use of the following council assets in order to support the proposed Children’s Services Trust Head Quarters and Training and Conference suite, namely; 2.1.1 Wellman Building (Trust HQ) and, 2.2.2 Metsec Building (Trust Conferencing/Training Suite) for a period, coterminous to the council’s agreement with the provision of services from the Trust. 2.2 approves the proposed refurbishment spend commitment from resources to be identified to refurbish Wellman and Metsec buildings; subject to the Department for Education’s approval of the council’s business case. 2.3 authorises the Director - Regeneration and Planning and the Executive Director - Resources to award contracts over £250k, in conjunction with the proposed refurbishment works to nominated Member/Officer approval. 2.4 authorises that the Executive Director - Resources enter in to a formal contract for the works on terms and conditions set out by Director Regeneration & Planning. 2.5 authorises the Executive Director - Resources enter in to the appropriate lease/license arrangements to regularise the trusts occupation of council accommodation, on terms and conditions set out by Director - Regeneration & Planning, to the following sites; 2.5.1 Wellman Building (Trust HQ) and, 2.5.2 Metsec Building (Trust Conferencing/Training Suite) 2.5.3 Sandwell CH – SPOC/Mash/Assessment 2.5.4 The Hollies – Family Contact 2.5.5 Unity Walk – Tipton – Youth Offending Team 2.5.6 COG’s – various locations; Smethwick Council House, Princes End Neighbourhood Office, Sandwell Council House, Wednesbury Town Hall, Blackheath Neighbourhood Office, Court House- West Bromwich Nick Bubalo Director - Regeneration and Planning Darren Carter Executive Director - Resources Contact Officer: Lee Constable Strategic Lead - Corporate Landlord Services Ext: 3993 3. Strategic Resource Implications 3.1 As part of this ongoing programme Corporate Landlord had targeted FtF savings by 1st April 2017 to include the Wellman Building (Oldbury). In addition, the Metsec Building was identified for further revenue savings through disposal or potential investment opportunities. 3.2 The combined revenue savings for both the Wellman and Metsec buildings are in the region of £225k per annum. If the DFE don’t approve funding for these identified revenue savings there will be a budget pressure for Regeneration & Planning for which alternative savings will need to be identified. This sum will form part of the council’s business case to the DFE. 3.3 In order to support the Trust moving forward investment in to their new HQ (Wellman Building) and conferencing/Training suite (Metsec Building) will be required. Again, this will also form part of the council’s business case to the DFE. 3.4 This report is in line with Councils asset management strategy to make greater use of underutilised assets and to generate a more efficient and effective asset portfolio by disposing of underutilised and or uneconomic assets, wherever possible. 4. Legal and Statutory Implications 4.1 Appropriate lease/license arrangements to regularise the trusts occupation of council accommodation, will need to be undertaken to include all areas occupied by trust; 2.5.1 Wellman Building (Trust HQ) and, 2.5.2 Metsec Building (Trust Conferencing/Training Suite) 2.5.3 Sandwell CH – SPOC/Mash/Assessment 2.5.4 The Hollies – Family Contact 2.5.5 Unity Walk – Tipton – Youth Offending Team 2.5.6 COG’s – various locations; Smethwick Council House, Princes End Neighbourhood Office, Sandwell Council House, Wednesbury Town Hall, Blackheath Neighbourhood Office, Court House – West Bromwich. 4.2 Local authorities have the freedom to dispose of land subject to the Provisions of S123 and S127 of the Local Government Act 1972 (and S32 of the Housing Act 1985 (as amended)) 4.3 Under s123 of the Local Government Act 1972 the council can dispose of any land in any manner they wish, provided it is for the best consideration that can be reasonably obtained. 5. Implications for the Council's Scorecard Priorities 5.1 The provision of specific accommodation to meet the requirement of the Trust will support all aspects of the council’s priorities moving forward; Supporting both children and families through some of the most difficult times in their lives will help support a wider vision for Sandwell as a place that gets things done by focusing on what matters in people’s lives, providing greater opportunities and prospects with the council ultimately providing a high level of service and performance. 6 Background Details 6.1 The options considered provide the Trust with an Oldbury based accommodation campus in support of an HQ, separate conferencing facility whilst retaining their Single Point of Contact (SPoC) services within Sandwell Council House (Mash/SPoc). Family Contact, Youth Offending Teams and COG’s remain unchanged at present. ➢ Wellman Building – HQ ➢ Metsec – Conference and Training Suite ➢ Sandwell CH – SPOC/Mash/Assessment ➢ The Hollies – Family Contact ➢ Unity Walk – Tipton – Youth Offending Team COG’s – Status Quo. various locations; Smethwick Council House, Princes End Neighbourhood Office, Sandwell Council House, Wednesbury Town Hall, Blackheath Neighbourhood Office, Court House - West Bromwich. Source Documents Office accommodation Implementation Plan ‘(OAIP) Plan 2025-2030 Vision’ .
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