Decision details

Property Maintenance Reserve - Release of Funds

Decision Maker: The Leader and Cabinet Member for Corporate Services and Transformation

Decision status: Recommendations Approved (subject to call-in)

Is Key decision?: No

Is subject to call in?: Yes

Purpose:

To seek approval to release £70,000 from the property maintenance reserve in order to maintain existing general fund Council stock.

Decision:

That approval is granted to the release of funds in the sum of £70,000, from the property maintenance reserve, to maintain existing general fund Council stock as follows:

1.          Carry out essential health and safety works at Barnack Road in Stamford;

2.          Undertake a structural survey on Wharf Road Car Park, Grantham; and

3.          Health and safety works to the Council’s Depot off Alexandra Road, Grantham.

Reasons for the decision:

The spend of the £70,000, on the required works, is fundamental for protecting the Council’s position from a risk and management perspective  and is in accordance with the proposed Asset Management Strategy 2020, which was considered by the Finance, Economic Development and Corporate Services Overview and Scrutiny Committee on the 4th February 2020.

 

Alternative options considered:

Carry out essential health and safety works and to decommission the gas supply at the Council’s industrial site, on Barnack Road in Stamford. This cost is estimated at £35,000.

 

Barnack Road in Stamford was acquired by the Council in March 2019 for the purposes of re-development. The site covers approximately 15 acres and consists of 300,000 sq. ft of employment, industrial and warehouse space. The decommissioning of the gas was originally going to be dealt with at the demolition stage. However, given the potential risk to life, following the number of times that the property has been broken into by unauthorised persons, it is important to, now, switch the gas system off and to release all gas from the pipework. Additional security measures have been put in place, in the interim period, to minimise the chances of any potential risk to life.

 

Obtain a professional structural survey on Wharf Road Car Park, Grantham. This cost is estimated at £20,000. A further £10,000 is also required to receive specific advice from an expert who can give the Council advice relating to future dilapidation costs.

 

Wharf Road car park, which is a multi-storey car park in Grantham, is leased to the Council. The lease is due to expire in the year 2024, where the Council will be liable for reinstating its condition to a reasonable standard, taking into consideration fair wear and tear. The landlord has the ability to serve an interim dilapidation schedule on the Council, due to its current condition and have made known to the Council, their concerns over the structural stability of the building/car park. The Council has a full repairing lease on the upper parts and is responsible for the structure.

 

To enable the Council to assess the condition of the multi-storey car park, a full conditional and structural survey needs to be undertaken, including some investigational work on the reinforced concrete within the building. Car parks, which are similar in age have suffered from concrete cancer, which is the term used to refer to the rusting of steel reinforcements caused by the presence of contaminants or the action of weather, combined with atmospheric properties. It includes rusting of the concrete reinforcement bar and any number of concrete failures. The report will give the Council some comfort that the structure is safe for use, as well as give the Council some direction in terms of reinstatement costs for implementation now, or at the end of the lease.

 

Undertake health and safety works to the Council’s Depot at Alexandra Road in Grantham. This cost is estimated at £5,000.

 

Following a recent health and safety inspection, it became apparent that there were a number of health and safety concerns at the Depot. The funds would be used to address these issues and to reduce future risk. A key area of concern is the traffic and speed of vehicles from occupiers and other business users sharing the site. Speed humps will be introduced to slow down the speed of traffic.

 

Resource Implications:

There is a balance of £298k in the property maintenance reserve which can be used to finance these works.

 

Publication date: 28/07/2020

Date of decision: 27/07/2020

Date comes into force if not called in: 05/08/2020

Call-in deadline date: 04/08/2020

Current call-in Count: 0

Accompanying Documents: