Report of Deputy Chief Executive and Director of Regeneration and Planning
Lead Cabinet member: Councillor Zoe Nicholson
Decision:
(Key decision):
(1) That Cabinet approves the proposals set out in paragraph 2.6.1 to 2.8.1 of the report regarding the Council’s wider office estate.
(2) That the Director of Regeneration and Planning, in consultation with the Leader and Cabinet member for tourism and devolution be given delegated authority to:
- conclude negotiations for the grant of a lease of Southover House to Charleston; and
- enter into a lease of Southover House on the terms agreed, including all ancillary documents.
(3) That the Director of Regeneration and Planning, in consultation with the Leader and Cabinet member for communities and customers, be given delegated authority to:
- conclude negotiations for the taking of a lease by the Council of premises at County Hall for temporary office and reception space; and
- enter into a lease of premises at County Hall on the terms agreed, including all ancillary documents.
(4) That in respect of the proposed granting of a lease to Charleston, Cabinet waives compliance with the Council’s Contract Procedure Rules in the event that the agreed rent exceeds £25,000 per annum, for the reasons set out in paragraph 2.4.2 to 2.4.9 of this report.
(5) That questions raised by Policy and Performance Advisory Committee, at its meeting on 27 January 2022, be addressed through Strategic Property Board and communicated to members where possible.
Minutes:
The Cabinet considered the report of the Deputy Chief Executive and Director of Regeneration and Planning, asking them to consider future office space rationalisation resulting in more economic and sustainable use of assets and improved customer contact facilities.
Southover House in Lewes offered office capacity for around two hundred staff, but with new working arrangements for Council staff in place and proving successful, the building remained under-utilised throughout a working week. To make best use of its assets, the Cabinet were proposed to move out of Southover House and consider an exciting opportunity with Charleston, to turn Southover House into a cultural centre. In the short term the council would share the reception area within County Hall in Lewes and make use of offices within the building. The longer-term ambition as set out in the report would establish a new customer contact centre in Lewes town centre and permanent office space as part of a wider public hub at the former UTC building in Newhaven, that also offered significant community wealth, training and commercial opportunities.
The Policy and Performance Advisory Committee (PPAC) at its meeting on 27 January 2022, made the following recommendation to Cabinet:
· The Committee resolved (unanimously): To not support the recommendations in the report at this time, for the following reasons:
- The Committee agreed its support in principle to vacating Southover House in recognition of its underuse, but that additional information was required before the decision could be made.
- It is recommended that a report be brought back to Policy and Performance Advisory Committee and Cabinet to include a full and detailed business case for:
- A full and clear proposal for a suitable customer-facing space in central Lewes (to include a space for private meetings between residents, councillors and officers);
- A rental market appraisal of Southover House, and Charleston rental agreement proposal details, to assess the best value of the proposal;
- The costs to the Council of moving locations both to County Hall and to the former University Technical College, Newhaven; and
- The additional costs associated with leasing space at County Hall (including for Committees and Officer/Councillor meetings) in addition to the basic rental cost
Councillor Linington, was in attendance to present PPAC’s discussion. In addressing the questions raised by PPAC, the Cabinet unanimously agreed to an additional resolution, and this was detailed below. In order to extend the consultation to include additional Cabinet members, minor amendments were made to resolutions (2) and (3) and these were detailed below. It was also requested that a process be implemented to review the meanwhile use arrangements within a period of 12-18 months.
Resolved (Key decision):
(1) That Cabinet approves the proposals set out in paragraph 2.6.1 to 2.8.1 of the report regarding the Council’s wider office estate.
(2) That the Director of Regeneration and Planning, in consultation with the Leader and Cabinet members for tourism and devolution, be given delegated authority to:
- conclude negotiations for the grant of a lease of Southover House to Charleston; and
- enter into a lease of Southover House on the terms agreed, including all ancillary documents.
(3) That the Director of Regeneration and Planning, in consultation with the Leader and Cabinet member for communities and customers be given delegated authority to:
- conclude negotiations for the taking of a lease by the Council of premises at County Hall for temporary office and reception space; and
- enter into a lease of premises at County Hall on the terms agreed, including all ancillary documents.
(4) That in respect of the proposed granting of a lease to Charleston, Cabinet waives compliance with the Council’s Contract Procedure Rules in the event that the agreed rent exceeds £25,000 per annum, for the reasons set out in paragraph 2.4.2 to 2.4.9 of this report.
(5) That questions raised by Policy and Performance Advisory Committee, at its meeting on 27 January 2022, be addressed through Strategic Property Board and communicated to members where possible.
Reasons for decisions:
The pandemic has resulted in a fundamental shift in the location of where staff work and how customers access the Council and resolve queries. Southover House is no longer the nearest office space for most staff and customer visits have reduced by 50% as residents are resolving more queries via online services. As a result, Southover House is under-utilised.
It is prudent for the Council to consider options for its future office space and customer reception functions to make best use of the Council’s assets, meet the needs of customers, reduce costs, increase flexibility for the organisation, and support the Council’s net zero carbon 2030 commitment.
Supporting documents: