Issue - meetings

Report ES18032

For the new waste management, street cleansing, and grounds maintenance contracts from April 2019, the Council’s depot provision had been strategically reviewed so that cost-effective, flexible facilities can be provided enabling a contractor to provide modular buildings and storage facilities to reduce ongoing Council costs.

Identified capital works included replacing hard standings and demolishing dilapidated buildings. At larger depots, particularly those associated with waste management, the improvements would help maintain site safety and environmental compliance, sustaining fitness-for -purpose during the contracts.

The review (including a condition survey on each site by Cushman and Wakefield) concluded that a number of existing premises would not be required to support the new contracts and in some cases better use of existing sites would bring operational efficiencies. Report ES18032 briefly summarised improvement works needed to each depot along with estimated costs (with final costs to be provided following design works by appointed consultants). As all sites were unlikely to be ready at the start of the new contracts, the contractors would be able to participate in design and phasing of the works. It was proposed to deliver the project through Amey’s Capital Project Team using multi-disciplinary consultancy services.

Along with Central and Churchfields depots seven smaller sites would be retained with seven existing sites not required after April 2019. It was also proposed to transfer three other sites to the Crystal Palace Trust in 2022.

The anticipated project programme comprised:

The estimated costs of the scheme were also summarised as follows:

With the Council’s capital receipts currently projected to be fully utilised by the end of 2019/20, building up again from 2022/23, it was proposed, where possible, to fund the scheme costs from unallocated capital receipts and internal borrowing. Projections for capital receipts currently included those estimated from depot disposals; should insufficient disposals be identified to fund scheme costs, a future report would include alternative funding options including longer term external borrowing if necessary e.g. from the Public Works Loan Board.

In discussion, Members were advised that in reviewing deports needed for the future, and those surplus to requirements, the existing contractors were consulted on matters such as the effect on operations should certain depots be removed. Bidders for the new environment contracts were also advised of depots proposed for retention. For sites no longer needed, various options would be considered (including a capital receipt for those that can be sold). Such options would be considered in a future report to the Resources Portfolio Holder.

More detail was requested on works related to headings such as hardstandings, concrete slabs and utilities particularly at Central Deport in view of an estimated £2.3m cost. As such officers would circulate a more detailed description of what is covered by such headings.

The estimated costs of the scheme included a 10% construction contingency. Rather than delegate the  ...  view the full minutes text for item 7