Agenda item

Report DRR16/023

Members considered Operational Building Maintenance for 2016/17, Report DRR16/023 outlining criteria used to assemble each maintenance programme based on the draft budget proposals. The report also addressed strategic assessment and business justification for the programmes, along with the preferred procurement option for completing them.

The proposed planned maintenance programme was appended to the report and officers endeavoured to ensure that buildings remained safe and suitable for use within the budget and programme. Twelve projects, having a priority grading of C/D1, with a total estimated cost of £455,125, had been identified for inclusion in the programme.

Subsidence at Anerley Business Centre and Public Hall appeared to have stabilised and a reduced value of subsidence works in the region of £60k was now anticipated for the building. It was therefore proposed that £75k of the underspend from the original sum allocated for the matter be vired to Operational Property to cover a 2015/16 shortfall linked to an overspend (the overspend resulting from school conversions to academies and a resulting reduction in 10% management fee recharged to capital schemes).  

The maintenance programme also included a reserve project concerned with re-constructing brickwork at the Central Depot. There was, however, a shortfall in funding of £53k for the project and Report DRR16/023 requested that this amount be drawn-down in 2016/17 from the Infrastructure Investment Fund earmarked reserve. In this regard, Members noted a recommendation from the Executive and Resources PDS Committee that should spend be less than expected, the proposed draw-down should not take place.

Details of procurement procedures to be used for the Planned Maintenance Programme (according to the value of works) were also outlined as were arrangements for procuring works for the Reactive and Cyclical Maintenance Programmes.  

In noting that the redecoration programme at operational buildings had been suspended, it was suggested that this action was short-sighted in view of water ingression and damage that could be caused to buildings. A regular and ongoing programme of exterior maintenance was instead advocated as a prudent approach. However, it was highlighted that funds could be drawn-down from the Infrastructure Investment Fund when needed to mitigate risks arising from a reduced building maintenance budget. Effectively, the budget savings to be made would be kept in contingency and it was not necessarily intended to make savings on outside decoration - flexibility was instead needed and resources were available as and when necessary.  It was also necessary to consider disposing of assets where there might be a long term liability for the Council, with a corporate view needed soon on properties surplus to requirements.      

Background was provided on the reserve project at Central Depot and the need for hot and cold water pipe replacement at various premises.

Cllr Angela Wilkins (Crystal Palace) suggested that there could be a risk to staff should proper maintenance not be undertaken, requesting copies of reports for some of the properties listed in the planned maintenance programme. She referred to commentary in the list highlighting a high risk of exposure to legionella bacteria from work activities and water systems at a number of the premises. Cllr Wilkins suggested that management control is key and she was unclear how overall risk is evaluated.  

It was explained that additional monitoring had been undertaken. The operational property maintenance team were undertaking what is necessary to ensure the matter is managed. Records and systems existed but there had been a concern for proper communication. It was an important matter which officers would address. The system was good enough and the necessary works would be undertaken. A further report would be provided on progress.

RESOLVED that:

(1)  subject to Council agreeing the budget, an overall expenditure of £1,928,930 be approved for the Building Maintenance budget in 2016/17, as set out at paragraph 5.1 of Report DRR16/023;

(2)  the planned maintenance programme at Appendix B to Report DRR16/023 be approved;

(3)  the proposal to carry forward any underspend in the sum set aside for works to Anerley Business Centre, as outlined at paragraph 3.11 of Report DRR16/023, be approved;

(4)  authority be delegated to the Director of Corporate Services to vary the planned programme to accommodate any change in the approved budget, or where such action is considered necessary, to either protect the Council’s assets, or make the most effective use of resources;

(5)  the criteria used to assemble the planned maintenance programme be approved along with the proposed procurement options as set out at paragraph 10 of Report DRR16/023;

(6)  authority be delegated to the Director of Corporate Services to select the most economically advantageous tender for any individual item of expenditure under the approved programme referred to at (1) to (5) above;

(7)  the Director of Regeneration and Transformation be authorised to submit planning applications where appropriate in respect of schemes set out in Report DRR16/023;

(8)  a sum of £75k be vired to the Operational Property budget as detailed at paragraph 5.3 of Report DRR16/023;

(9) a sum of £53k be drawn-down from the Infrastructure Investment Fund earmarked reserve as detailed at paragraph 5.4 of Report DRR16/023; and

(10)  if spend is less than expected, the proposed draw-down from the Infrastructure Investment Fund earmarked reserve at (9) above should either not take place or correspond with any lower amount needed.