Agenda item

62.1    The Cabinet Member for Performance and Resources introduced the report and explained that the purpose was to outline viable options for ongoing office accommodation for City Council staff. She confirmed that the report was asking Cabinet to resolve that the option to relocate to the Eastgate Shopping Centre in 2022 be approved and that negotiations were commenced with Gloucestershire County Council as to the current rental levels. She noted that the report outlined 4 options, namely to remain in Shire Hall but negotiate a lower rent, to relocate to the Eastgate Shopping Centre office space, to move to North Warehouse or to relocate to alternative accommodation. It was noted that the option to move to North Warehouse was not available in the short term due to the tenancy agreement with Regus.

62.2    The Cabinet Member for Performance and Resources noted that if the Committee wished to discuss the savings outlined in Appendix 3, the Committee would need to move into private session. She also confirmed that City Council staff had been briefed on the proposed move and that an overwhelmingly positive response had been received. She referred to the narrative at 8.3, and confirmed that elected Member accommodation and parking were under review and that a detailed briefing session could be provided in due course if requested by Members.

62.3    Councillor Wilson noted that he had first read about the proposals in the press. He referred to the Cabinet Member for Performance and Resources’ comments regarding favourable feedback from staff and asked how this feedback was gathered. The Cabinet Member for Performance and Resources confirmed that the matter was raised by the Managing Director during a recent staff Q&A session. The Head of Policy and Resources further confirmed that staff had been invited to take any feedback to the change champions group. He noted that the main concerns raised were changing facilities for staff who cycled to work and parking provision.

62.4    Councillor Wilson requested clarification on the statement in the report that the option to relocate to the Eastgate was a temporary move subject to the review of long-term portfolio and office requirements. The Cabinet Member for Performance and Resources indicated that this wording alluded to the possibility of City Council staff returning to North Warehouse at some point in the future, however there was no option to end the tenancy contract with Regus in the short-term.

62.5    Councillor Pullen thanked the Cabinet Member for her assurances on stability and noted that he felt that the recommendation was sensible in principle. He expressed the view that the location was ideal and that it was sensible for the Council to take an opportunity to make savings. Councillor Pullen referred to a recent press release which described plans to bring the Council into the heart of the city. He noted that although relocating to the Eastgate Shopping Centre would move the Council into the city centre, customer services would still be located at the Gateway on Westgate Street and asked for the Cabinet Members’ comments on the rationale behind this decision.

62.6    The Cabinet Member for Performance and Resources explained that the utilisation of the Gateway had changed as the city emerged from the pandemic and that there was now an appointment system with the vast majority of queries dealt over the telephone or by email. She confirmed that since there were very few appointments taking place, there were no proposals to change the Gateway location at that stage. The Cabinet Member for Performance and Resources indicated that there had been a suggestion to review the position after the new system had been in place for 12 months, which would be July 2022, and that would be the time to determine whether the Gateway needed to be moved. She confirmed that there was no space available at the Eastgate Shopping Centre to accommodate customer services facilities.

62.7    Councillor Pullen expressed the view that the customer services should be more accessible for residents and that there could be grounds for confusion with the different locations. The Cabinet Member for Performance and Resources noted that the City Council website and appropriate signage would be in place to direct residents who needed to access customer service appointments to the Gateway location and it would be down to the City Council and Communications team to raise awareness.

62.8    In response to a further question from Councillor Pullen regarding car parking provision for City Council staff and a request for assurances that there would be no increased charges for staff who continued to drive into work, the Cabinet Member for Performance and Resources confirmed that she had no hesitation in giving those reassurances and that the Council would look at the best options for staff parking provision.

62.9    Councillor Hilton noted that he previously supported the move from the HKP Warehouse as the Westgate Street location was more public. He raised concerns that the Council was shrinking, and by reducing office space, staff might be put off from working in the office and visiting the city. Councillor Hilton felt that the fact that the Council was not yet able to occupy the North Warehouse was an example of the Council retracting. He stated that the report was a disappointing one and that he did not feel that relocating to the Eastgate Shopping Centre was the right decision, expressing concerns that the City Council was a Council with no home.

62.10  The Cabinet Member for Performance and Resources expressed the view that rather than vanishing, the City Council was nimble and could adapt and evolve with the times. She noted her view that the decision should be based on the best value option for residents and how the Council could best meet their demands.

62.11  Councillor A. Chambers expressed the view that the proposal to relocate to the Eastgate Shopping Centre was a good idea and that it was good common sense to use the Council’s own assets to make savings. He asked whether there were any plans to make energy efficiency improvements to the Eastgate office space, such as insulation upgrades or solar panels. The Cabinet Member for Performance and Resources confirmed that any energy efficient improvements would be undertaken as part of the broader regeneration project in the Eastgate area and such options would be considered provided the business case was supportive. She also confirmed that the office furniture currently used by staff belonged to the City Council and that it would be moved into the new office to avoid wastage.

62.12  In response to further questions from Councillor A. Chambers regarding lift access and whether the Council would be using local contractors to assist with the move, the Cabinet Member for Performance and Resources confirmed that there was lift access at the Eastgate Shopping Centre space. She noted that the Council generally did rely on local contractors where possible but would have to follow the appropriate tender processes.

62.13  Councillor A. Chambers referred to the visualisation plans in Appendix 2 and asked whether this was the final design. The Cabinet Member for Performance and Resources confirmed that Appendix 2 was the current indicative design, however the Council would be seeking advice from contractors regarding technical issues such as charging facilities.

62.14  In response to an additional question from Councillor A. Chambers regarding meeting rooms and whether there would be facilities for hybrid or virtual meetings, the Cabinet Member for Performance and Resources confirmed that there were 5 meeting spaces in the Eastgate Shopping Centre office space and that it was possible that one could be used as a Leaders’ Officer. She also confirmed that there was direct access into the Guildhall from the Eastgate Shopping Centre, and that there were multiple meeting rooms at the Guildhall which the Council could look to utilise if necessary.

62.15  Councillor Dee expressed the view that North Warehouse was a more appropriate location for the City Council as it was a prestigious building with direct access to the Council meeting chamber at the Civic Suite. She asked whether it was possible to delay the decision for the ongoing office accommodation beyond March 2022 to establish what Regus’ future plans were. The Cabinet Member for Performance and Resources confirmed that she did not believe that Regus would be looking to vacate North Warehouse in the near future. She noted that in the current climate, the North Warehouse building was too large for the Council as many staff were still working from home. She also confirmed that the open plan office layout in the plans was preferred by officers as it helped promote collaborative working.

62.16  Councillor Durdey stated that he agreed that the Council needed to be agile and expressed the view that where savings needed to be made, the Council should make them to make the best use of resources. He asked what the estimated timeframe for the relocation was. The Cabinet Member for Performance and Resources confirmed that if the option to relocate to the Eastgate Shopping Centre was approved, discussions with the County Council regarding the exit strategy and a potential extension to the lease would commence around mid-December. She confirmed that the current timeline for the relocation was June orJuly  2022.

62.17  In response to a question from the Chair regarding a review period, the Cabinet Member for Performance and Resources noted that any changes to the North Warehouse tenancy agreement between the City Council and Regus would be unlikely to take place before 2028.

RESOLVED that the Overview & Scrutiny Committee RECOMMENDS that:

(1)  The option to relocate to the Eastgate Shopping Centre be approved and that improvements are made to public accessibility by moving the Gateway customer services into the unit as soon as possible, or as and when a suitable alternative unit is available.

(2)  Long-term options for office accommodation for City Council staff are kept under review unless there is a significant change in circumstances.