1 THE ISSUE

1.1 The overall importance of a long term office accommodation strategy, and the benefits for the Council, have been clearly identified by previous reports to the Strategy Committee and form an integral part of the Authority's Corporate Asset Management Plan. Objectives and criteria for measuring success have also been set out. The Council's current office accommodation is fragmented and variable in quality. Previous reports have recognised the range of benefits which would flow from a single office solution, improving efficiency, flexibility and reducing overall operating costs.

1.2 A significant amount of work was concluded with the provision of the Update Report to the Resources & Customer Service Overview & Scrutiny Panel (February 2003). This was based on a large amount of data on existing office accommodation, and office needs assessment. The O & S panel at that time supported the short term approach to rationalise and use existing property to better effect, and supported the further exploration of modernisation options for the long term. Specific comments were as follows, that Options 2 (the continuing short term rationalisation of the current office stock) and options 3 and 4, (the long term solutions) should be pursued. Further consideration needs to be given to Partnership working. An Exempt copy of the Accommodation Study Background Paper is attached for information.

1.3 The O & S panel commented that it was important that the process is moved on and decisions made.

1.4 Since that time, work has been carried out to identify both the extent of further information needed and the resources needed to develop the project alongside rationalisation of existing buildings. The need now is to agree the project and resource plan to produce a completed and usable strategy, further reporting and decision points, and dependencies of the project. If the project is to develop beyond the rationalisation of existing buildings, decisions to fund this will need to be made.

1.5 Decisions need to be made now to identify and work up proposals for possible sites for any new offices. This will enable possible timescales to be identified and enable the Council to better manage the existing freehold and leasehold properties. There is also the need to fully consider the planning status of the possible sites and if possible to safeguard a use for council offices when the future of these sites is under consideration.

1.6 A version of this report was considered by the July Overview and Scrutiny Panel. Members of the panel agreed to recommend to the Executive that;

1.7 The next stage is to prepare a project and resource plan to deliver the feasibility study (Stage 111 Appendix 1) for decisions on the final options. This report sets out the terms of reference for the project feasibility study.

1.8 The Accommodation Project Board has been working on developing corporate space standards for the use of office space and Corporate policies on flexible use of office space. These draft standards are attached as Appendices 2 and 3. These Policies will be subject to Union consultation. It is considered that agreed policies in these areas are urgently required to ensure that the Council makes best use of this expensive resource in the early stages of the project.

2 RECOMMENDATION

2.1 To reaffirm the decision to proceed on the basis of single new office premises as a matter of urgency.

2.2 To agree that the project will report to the February 2004 Executive on the locational options generally able to accommodate the single office solution, with a review of the issues affecting them. Options may include: Charlotte St Car Park: Western Riverside; Manvers St Car Park and locality: Bath Quays, employment land at Peasedown St John and any other sites that may meet requirements.

2.3 To agree that The Guildhall be retained to provide the political heart of the Council.

2.4 To agree that final plans to proceed will consider such matters as space standards, flexible uses of space, outline policy with respect to existing Council offices, and, where relevant, exit strategies with respect to local economies.

2.5 That, subject to staff consultation, the proposed space standards and corporate policies on the flexible use of office space are to be applied to any future office reorganisations.

2.6 To consider what further input the Executive wish to have in the report and process.

3 FINANCIAL IMPLICATIONS

3.1 Overall financial implications of LTOA have been previously recognised.

3.2 Rationalisation work on existing offices has by and large been within budget estimates, but the work itself is disruptive and time consuming and has led to overspending on the accommodation budget in 2002/03

3.3 The long term solutions are also costly with major capital investment needed by the Council for their delivery. However, revenue savings resulting from efficiencies from both reduced space requirements and more efficient working practices could substantially offset these costs

3.4 The project will require a budget for external fees of £57,500 for 2003/4 to complete up to stage 111. Fee rates for ARW were established by market testing. Actual fees charged will be based on the rates established in the partnering contract, subject to a cap linked to the budget level. These costs and the internal fees identified below will be resourced from the existing long term office accommodation budget.

3.5 Internal staff time will also be charged to the project at a cost of around £30,000.

3.6 Other financial and budget implications will be identified within the business case delivered as a Stage 111 project output.

4 THE REPORT

4.1 Project proposal

4.2 An assessment has been carried out of the requirements to produce a clear and relevant long term office accommodation strategy (LTOA). The extent to which work already carried out has achieved parts of the overall project has also been reviewed. The chart attached (appendix 1) - a flow chart for the overall LTOA project, with progress review percentages indicated in the boxes at the bottom of each column.

4.3 The need now is to address the following:

(1) Business and Operational Objectives - Be clear about the key drivers for the LTOA including business, operational and staff issues, and the goals that need to be achieved.

(2) Property Review - Complete the basic data gathering work in a form which can be maintained. Examples include:

a) Assessment of levels of current and forecasted customer access to different locations and services;

b) Conclude/update review and analysis of existing office accommodation including building condition and fitness for purpose;

c) Complete the property register;

d) Benchmark the property portfolio against market norms.

(3) Identify future space requirements, taking account of:

a) Needs of service areas/different functions;

b) Current and any future changes in working practices;

c) Potential relocation/co-location opportunities.

(4) Option Identification and Appraisals -

a) Clarify options with appropriate reflection of related matters - e.g. customer access facilities, human resources and economic development aspects;

b) Assess options both on a financial and non-financial basis using cost/benefit analysis;

c) Introduce measurability to all relevant indicators to support objective assessment of options including qualitative `weighted analysis' which benchmarks each option against how well it meets the Council's business objectives.

d) Arrive at fully supported preferred option for the estate using the Base Case `Status Quo' as a basis for comparison.

(5) Business Case - prepare a fully supported business case for the accommodation strategy which matches the estate to the business and operational objectives. This would be a document which would be used as a decision-making tool capable of presentation to key stakeholders.

4.4 Methodology

4.5 Overall methodology is indicated by the flow chart attached. The LTOA needs to be strongly moved forward to produce a completed and usable strategy so that the implementation phase can commence. Many of the areas in Stages I - III have been addressed to some extent over the past years of the project inception, but due to the age of the work on some areas, a significant proportion of this data needs updating or completion. The team will be able to directly use its previous work, but it is important that if the project continues, further delays to implementation are avoided.

4.6 Whilst significant work on the strategy and approach has been done in the past, no firm decisions to move the project into 'live' status has been made. Previous work has frequently been deferred or diverted whilst short term matters are dealt with. The core team needs to now know whether to focus on the Long Term approach as its priority, whilst maintaining the short term rationalisation project, or whether the rationalisation approach is to be maintained into the medium or long term.

4.7 If approved by the Executive, Project management and the major part of the staff time will be provided by the Council's property partner ATIS REAL Weatheralls (ARW) who are able to call on the specialist skills and experience, and commit sufficient personnel to the project on a sustained basis.

4.8 Timescales and milestones

4.9 The overall period required to carry out the necessary work and produce the report to complete this project up to Stage III is six months from decision date to proceed. It is recommended that monthly progress reports are provided identifying work carried out, updated project plan, project and resource issues and timescale review. Key milestones will be delivery of:

4.10 Decision points

(1) Authority to proceed with feasibility study (project commencement) - Executive decision in October...

(2) Response to project analysis - month two.

(3) Response to draft report - month five.

(4) Identification of preferred option based on business case leading to implementation of Stage IV project work - month six.

4.11 The timescale indicated assumes that workflow is continuous, and is not held waiting response on interim stages.

4.12 Expected benefits

(1) Robust and deliverable strategy for changes to Council's office accommodation in support of key objectives

(2) Needs analysis of Service areas including future expectations

(3) Dynamic strategy capable of review and updating

(4) Possible locations for new office identified with initial feasibility work completed

(5) Business case provided to support critical decision points

(6) Quantification of all relevant criteria

(7) Strong decision making basis for short and medium term office accommodation issues

(8) Identify any areas for improved management processes relevant to office accommodation

(9) Rapid progress to provide usable strategy

(10) Links to key matters

a) Access strategy

b) HR strategy

c) IT provision

d) Financial Plan

Document3

This version was printed 22-Sep-03 12:01

Appendix 2

Space Standards for modern office space.

Office Accommodation Board 25-04-2003

Background.

(Using data as at summer 2002)

The current occupational density assessed as 13 m2 per full time employee (assessed as 1,426 employees) is considered too high for a unitary council. District Audit in their survey of unitary authorities undertaken during 1999/2000 determined that the density of occupation was 12.6 m2 per employee for B&NES and identified from their own national research an average of 10.2 m2. The recommendation made was to adopt a space standard to be applied across the board and that the lower quartile of 9.7 m2 (Gross) was adopted as a target. They further identified a space saving of 714 m2 if this space standard was adopted.

The Audit Commission produced a report in April 2000 titled `Hot Property' aimed at improving asset management by local authorities. It does not indicate a benchmark other than a `cross sector' administrative building average of 10-15 m2 on a gross internal basis compared with their limited study of local authority buildings indicating 26 m2 per employee. The gross internal area of 10-15 m2 could be restated as 8-12 m2 on a net internal basis.

The British Council for Offices Guide 2000, Best Practice in the specification for offices has been considered. The British Council for Offices is a steering group of private sector and public sector occupiers who consider and provide guidance on a range of occupational matters and is well regarded within the profession.

The guidance on office density within the Guide indicates that whilst the accepted norm has been 10m2 per person of net floor area, research has demonstrated that this is not frequently achieved. Good practice is currently considered to be between 12m2 and 17m2 per person. Specific individual space allocation ranges from 6m2 for call center type use to 15m2 where cellular offices are more prevalent.

Finally, the findings of the RICS Foundation/ Gerald Eve Study (June 2001) has been looked at. This is a rolling survey with in excess of 500 participants across all sectors. The national overall benchmark average was 16.3m2 with a median of 14.9m2. The lower quartile identified was 10.6m2. The public sector average was 16.2m2 (including national and local government but excluding not for profit organizations).

As demonstrated, there is considerable variation in the occupation densities quoted with District Audit recommending the adoption of the lowest space density per person. The consultant's advice that, density of occupation is merely a guide to be applied at a macro level and considerable variation can be found between specific users related to task.

The National Health and Safety Minimum standard for office space is based on a Cubic capacity minimum of 11 Cubic Meters of air per person per workroom. This `standard' is very unlikely to be breached.

In space planning offices, Property have adopted various rules of thumb

Regarding the space needed for staff to move around and work safely at their desks. All floor layouts are sent for approval and comment by Health and safety.

The Bath & North East Somerset Corporate Asset Management Plan 2002 identifies a current density ratio of 14.24m2 based on gross internal space per employee. The Plan indicates a target of 11.59m2 per employee for 2002/03 (A.2.2.8), a figure that cannot be achieved by retaining older period accommodation which restricts open plan working and new working practices. It is likely that in the future formal benchmarking standards will be set, that the council will have to meet.

Recommendation

A minimum space density of between 8.0 and 10.5m2 of net internal accommodation per FTE staff to include all circulation space, live filing, support accommodation such as post rooms and copying areas, meeting space, receptions and welfare accommodation. It does not include public reception areas, assembly rooms or debating chambers.

Application

This ratio is set at a macro level to maximise flexibility whilst maintaining accountability; service areas will be asked to apply space ratios as necessary according to work requirements. These standards are compulsory for the `Modern' buildings identified at the bottom of this paper and will be applied on any office reorganisation. Exceptions will be allowed only with the prior approval of the APB which will only be granted if Service Heads can prove a service efficiency saving arising from the exception.

Live Filing and Archive Storage

Each FTE staff member will have access to a maximum of 2.3 linear meters of live filing as a guide (again the provision will be applied at a macro level). Investment in on floor rolling racking would enable the more efficient use of office space. Archive filing is to be provided for all services either by electronic storage means or by off site dedicated storage. Professional and technical staff may require additional library facilities, which can be built into general office areas.

Part timers and Job shares

The standard is based on FTE posts. There is a presumption that part timers and job shares will share workstations. This will be easier in those areas where hot desking has been adopted. In general there are a relatively high % of desks unattended due to leave, training, sickness, etc.

Use of Individual Offices

Partitioned offices will only be available at Heads of Service and Director Level and limited to a maximum of 13 square meters. Heads of Service will have the opportunity of referring this to the Accommodation Board Panel should they deem their service area to have specific needs for individual office space although overall, the space density set above will need to be achieved. Dedicated meeting rooms are to be available rather than shared office/ meeting space.

Furniture

Modular furniture is to be utilised throughout, maximising use of space. Flat screen computer monitors are to be used and where new office furniture is procured, desk sizes are to be a maximum of 1.6m in length and where possible, matched to existing furniture designs.

Current `modern' office buildings

Riverside

Trimbridge

Lewis

Northgate

`New' part of The Hollies

Plymouth House

9/10 Bath St.

Appendix 3

Proposed Corporate Flexible working Policies

Flexibility and Office Utilisation

1. Introduction

2. Providing a modern, efficient office environment

3. Hot Desking

4. Home Working and Working from Home