Item: 8
Page: 1
MARR AREA COMMITTEE – 14 JUNE 2011
FRONT FACING CUSTOMER SERVICE PROVISION –
OFFICE ACCOMMODATION STRATEGY
1
Recommendation
The committee is invited to consider:
1.1
The Front Facing Customer Service Provision and Office
Accommodation Strategy and agree that their comments are reported to
the Policy and Resources Committee
2
Discussion
2.1
The Council’s Front Facing Customer Service Provision - Office
Accommodation Strategy has been developed to ensure effective and
efficient delivery of front facing customer services for the 21st century.
Coupled with this is the development of an efficient office portfolio which
supports the delivery of these services that is also fit for purpose.
2.2
The strategy identifies recommendations for all offices/facilities covered within
this programme along with key overarching policies and initiatives that require
to be formalised and adopted to enable the rationalisation of office
accommodation to be achieved. A full copy of Asset Management Plan –
Office Accommodation Strategy is contained in appendix 1 of this report.
2.3
The Council’s adoption of the Worksmart initiative has enabled the office
portfolio to be comprehensively reviewed and strategy developed at this
juncture. This ensures that the financial benefits of this programme relating
to property can be realised. The strategy ensures that further introduction of
Worksmart and office relocations are co-ordinated so that the remaining
office portfolio is efficiently utilised.
2.4
The rationalisation of the office portfolio presents the opportunity to
implement and adopt the Service Point strategy which aims to introduce
single access points for our face-to-face customers in key settlements across
Aberdeenshire, which will see staff equipped with the skills, training and tools
to resolve the majority of enquiries from customers at first point of contact.
The three possible settlements in Marr previously identified as areas for these
facilities are included within proposals.
2.5
Office accommodation is to be held and managed centrally by the Property
and Facilities Management Service. This will ensure that the office portfolio is
effectively utilised by adopting a corporate approach to the retention and use
of office space, along with the application of common space standards which
also relate to Worksmart principles.
Item: 8 Page: 2
2.6
With more employees becoming flexible, it is vital that they can easily find
somewhere to work. To facilitate this, there is a requirement for a single room
and desk booking system that includes all meeting, flexible desk spaces and
resources such as mobile video conferencing units throughout the Council.
2.7
The storage of both electronic and hard records is to be addressed and
developed in tandem with the implementation of recommendations within this
strategy.
2.8
Where possible (and where operational requirements permit) co-location of
offices, and other suitable accommodation with partner agencies, is to be
explored in line with the efficient government agenda and best value.
2.9
The proposed strategy recommends the initial reduction in office
accommodation from 98 facilities to 72. Subsequent years will see a further
reduction of 19, as the terms of leased accommodation expire, and the
preferred options for provision within Inverurie and Peterhead are
implemented.
2.10 In Marr the strategy recommends the reduction of 4 offices within years 1-2
from 10 to 6.
2.11
The properties identified to be disposed of/relinquished are:
Phase 1 Reduction
Aberdeen
Marr
Marr
Banff and Buchan
Formartine
Banff and Buchan
Marr
Garioch
Banff and Buchan
Buchan
Kincardine and Mearns
Kincardine and Mearns
Formartine
Aberdeen
Aboyne
Banchory
Banff
Deemouth Business Centre
Aboyne Business Centre
Town Hall Office
Cape House
Winston House
10 Carmelite Street
Ellon
59 Station Road
Fraserburgh 10 Commerce Street
Dover Lodge
Fraserburgh Business Centre
Fraserburgh Hospital
Huntly
7 Castle Street
Jubilee Hospital
Inverurie
Thainstone Business Centre
Axis Business Centre
Crichiebank Business Centre
Unit 5 Blackhall Industrial Estate
Macduff
Berrymuir Road
32 Shore Street
Peterhead 52 Broad Street
54 Broad Street
Burnside Business Centre
Portlethen Badentoy Business Centre
Stonehaven 52-56 Cameron Street
Arduthie Business Centre
Turriff
Municipal Buildings
Item: 8 Page: 3
Phase 2 and Later Reductions
Banff and Buchan
Banff
Formartine
Garioch
Garioch
Buchan
Formartine
Buchan
51 Low Street
4-5 Back Path
Ellon
29-31 Bridge Street or
45-53a Bridge Street
Inverurie
Units 7+8 Harlaw Industrial Estate
Unit 12 Blackhall Industrial Estate
69/71 Market Place
Kintore
Craigearn Business Centre
Maud
Maud Area Office
Oldmeldrum Oldmeldrum Business Centre
Peterhead 60 Broad Street
Arbuthnot House
79 Broad Street
83 Broad Street
Baltic House, Broad Street
88 King Street
16 Prince Street
53 Windmill Street
Glenugie Business Centre
18 James Street
2.12 Currently NHS Grampian is investigating options to develop a new health
facility within Banchory. This project is at an early stage, however possible
opportunities exist for the Council to co-locate its office presence with this
public sector partner on a site at Silverbank. This option would require the
provision of a customer Service Point elsewhere within Banchory. Further
option to be considered, at the appropriate time, is for the Council to utilise
current NHS accommodation at Bellfield.
2.13 Where offices are to be disposed of, their disposal is to be undertaken in a
phased manner to reduce impact on town centres and the commercial
market. All options for disposal, marketing and future use of surplus
accommodation will be addressed to mitigate this impact, with consultations
with Economic Development Agencies and Town Centre Partnerships where
relevant.
2.14 The strategy is to be regularly reviewed to ensure compatibility with services
strategies and requirements, whilst also allowing any future opportunities that
become available to be considered.
2.15
Monitoring Officer and Head of Finance have been consulted and their
comments have been incorporated within the Report
2.16
Management Team, Directorate Management Teams, Area Managers, and
Area Management Teams have been consulted in the preparation of this
strategy and their comments have been incorporated.
Item: 8 Page: 4
3
Financial and Staffing Implications
3.1
Council owned offices identified for disposal will be appraised to establish if
assets should be sold or added to the Council’s investment portfolio to
produce a revenue income stream, with capital receipts generated from the
sale of surplus offices being used to support the Corporate Asset
Management Plan and the Capital Plan.
3.2
Ongoing revenue savings will be generated by the reduction in offices being
used for operational purposes, and to undertake improvements this will
require to be re-invested in the office portfolio for a period of time.
3.3
The outcomes as detailed in 3.1 and 3.2 above were aspired to as part of the
Worksmart Business Case and have been incorporated into the financial
plans of the organisation.
3.4
The approved non-housing capital plan assumes £12.3 million of expenditure
and £5.399 million of capital receipts in relation to this project. Table 1
compares this budget against the forecast costs set out in the strategy and
illustrates a £5.7 million shortfall.
Table 1: Approved Non-Housing Capital Plan - Investment in Office
Accommodation
Total Budget
Worksmart/Office Accommodation
Line
Project
Per Capital
Plan
Budget
Forecast
Difference
£'millions
£'millions £'millions £'millions
Capital
Expenditure
Phase 1
8.715
8.300
9.000
0.700
Phase 2
5.450
4.000
5.500
1.500
Total
14.165
12.300
14.500
2.200
Capital Receipt
Phase 1
Phase 2
Total
Net Impact on
Capital Plan
3.5
(13.899)
(14.000)
(27.899)
(1.399)
(4.000)
(5.399)
(1.800)
(0.100)
(1.900)
(0.401)
(3.900)
3.499
6.901
12.600
5.699
Annually, office accommodation costs the authority approx £6 million. The
strategy set out in this report will realise annual expenditure savings during
phase 1 of £0.55 million (9.1%) rising to £0.92 million (15.3%) at the end of
phase 2. In addition it is anticipated that further revenue income of £0.5
million per annum will be generated from the rental of excess office space.
Item: 8 Page: 5
The Worksmart business case anticipates £1.037 million of savings per
annum by the end of phase 2, therefore there is an excess over the
anticipated savings of £0.38 million.
3.6
The annual cost of the funding £5.7m shortfall set out above in 3.4, will be
£0.37m. This can be accommodated within the revenue saving detailed in
3.5.
3.7
The financial implications as set out in this report will be incorporated into
future reviews of the Capital Plan and Revenue Budget.
3.8
The combined revenue savings of the moves specific to the Marr area will be
approximately £ 17,300 per annum. There will also be further savings
generated by the disposal of 7 Castle Street generating a further potential
income of £ 45,000.
3.9
To facilitate and enable rationalisation of the office portfolio, alterations will be
required to properties being retained. Generally works will be limited to minor
internal alterations, however, common to most locations is the requirement to
improve power distribution and both network and mobile connectivity along
with the provision of wave or bench/beam desking systems.
3.10 The Council’s Front Facing Customer Service Provision - Draft Office
Accommodation Strategy does not change the number of staff nor, generally,
the settlement in which they are based.
3.11
Proposals within the strategy will impact on staff, with bases for many being
redefined within their existing settlements, with the adoption of Worksmart.
Allan Whyte
Head of Property and Facilities Management
Report prepared by: - Andy Moir; Asset Management Officer
31 July 2017