16. With regards to Option 1, whilst increasing the budget as noted would enable the
scope of the project to be delivered as originally envisaged, offering all of the benefits outlined, investment decisions have to be considered in the context of the affordability of the capital programme and the impact on revenue budgets. It is recognised that this option would require careful consideration as it represents a requirement for significant additional funding and in the context of other budget challenges, pressures and priorities that the Council faces.

17. Option 2 provides a Mechanical and Electrical (M&E) and Information and
Communications Technology (ICT) only upgrade, including improving Chambers
accessibility. It is costed at £4.26m and therefore sits within the currently approved budget of £4.86m. There is no fabric upgrade allowed for in respect of the Chambers or any other part of the building, so employees will experience very little improvement to their working environment. The opportunity costs associated with this option would include:

• It would not be possible to give staff a modern and efficient fit-for-purpose office
accommodation.

• The Council would lose the opportunity to deliver improved flexibility and functionality of the building for all staff located in Eastwood HQ.

• Insufficient meeting rooms and open working areas would inhibit effective service
delivery and impact on collaborative and hybrid working ambitions, through lack of
available and flexible working space. In this option, the layout of the building remains
as current. In the context of additional staff being based in Eastwood HQ following the
exit from Spiersbridge, this would place significant additional pressure on staff welfare
facilities and desk space, and is not felt to be conducive to creating an appropriate
work environment.

• Not improving staff welfare facilities (including toilets and kitchen areas) which are in need of significant modernisation, with many not having been upgraded since the
building opened. In addition, we aim to promote active travel and schemes like cycling
to work, but currently have no shower provision in Eastwood HQ.

• The Chambers would remain as they currently are with no improvement to the fabric
and functionality with the exception of improving the disabled access.

18. Option 3 to defer the works for a period of one year or greater, is technically feasible. There are, however, significant challenges and opportunity costs associated with doing so and these would include:

• The core infrastructure of Eastwood HQ is no longer fit for purpose and has the
potential for failure at any point in time, given that it is past its useful life and that much of it is recommended as in need of replacement. There is, therefore, an increased business continuity risk, should there be a decision to defer any proposed investment. For each year of delay in commencing works, realisation of the savings that would arise from exiting Spiersbridge and our external IT leased site are delayed.

• A delay in progressing the core services infrastructure work at Eastwood HQ will lead
to either significant volumes of staff having to work from home for prolonged periods,
services being split across multiple locations, and/or having to explore the extension
of the lease at Spiersbridge.

• There is a higher risk of cost pressures impacting upon the overall cost of delivery (e.g. increased material costs in line with inflation).

• Decant arrangements for staff will become more complicated if Spiersbridge is not
available to provide alternative touchdown accommodation beyond February 2026,
when the lease expires.

• Were we to seek an extension to the lease at Spiersbridge to accommodate any delay
to the commencement of the Eastwood HQ refurbishment project, there is no
guarantee that the landlord would be amenable to such a proposal either at the current
annual rent charge or for a year only. Any extension of the lease at Spiersbridge would
be an unbudgeted revenue pressure in addition to delaying the realisation of potential
savings.

19. With regards to option 4, this would deliver the full core infrastructure improvements required, including the full M&E and ICT upgrades, and the Chambers accessibility upgrade.

A number of significant environmental improvements for staff, including all kitchen and tea preparation facilities, bathroom upgrades, and shower provision, are deliverable through this option. All external opening windows on all floors will be replaced therefore adding to the thermal efficiency of the building and reducing our energy costs. In addition, the refurbishment of the second-floor workspace where the majority of Eastwood HQ staff and functional spaces are currently located would also be delivered through this option, although to a lesser degree than originally envisaged (i.e. less ability to open up spaces).

This would require an increase to the approved budget by £1.30m to £6.16m to facilitate a reduced scope of works. While this option does not realise all of the working environment benefits across the entire building, there would be significant improvement. In addition, the core infrastructure work carried out throughout the building will allow further upgrades in the future to those areas not in scope with this option.

20. On balance, Option 4, is felt to be a reasonable compromise in delivering many of the
original benefits of the project whilst at the same time reducing pressures on resource that have arisen as a consequence of the significantly higher core building infrastructure investment requirements. Provision will be made in the carrying out of the building infrastructure investment works to allow for further additional upgrades to the work environment on the first and third floors in the future as resources may allow for.

21. Option 4 is therefore the recommended option. Whilst Option 4 incurs a significant
increase in budget of £1.30m, it remains £1.04m below the increased cost of delivering the whole project as originally envisaged. If approved, the increased budget will deliver many of the originally envisaged benefits and will still deliver a positive saving in revenue costs to the Council. In addition, the investment in Eastwood HQ will extend the life of the building for at least the next 20 years and provide a much-improved working environment for the increased number of Council staff that will be based there.

22. Subject to Council approval of the proposal contained within this report, start on site is now estimated to be during the summer of 2025 with a scheduled completion in early 2026.

The programme will be subject to final agreement on designs and any works additionally
discovered as required upon commencement on site and opening of the existing building.

FINANCE, EFFICIENCY AND RISK
23. Additional capital is required to deliver on a scaled down version of the modernisation works originally approved by Council. This will allow for essential works to be carried out throughout the building as detailed and modernisation of office space and improvements to all staff welfare facilities. Whilst this would come at an increased cost of that previously estimated, the proposal will still allow for the relocation and closure of the Spiersbridge office as planned and the relocation of the ICT data centre. This allows the council to realise the already planned £0.45m savings in the revenue budget and it is anticipated that a further £0.05m can now be realised on a recurring basis. Option 4 will provide a significant net saving of £2.3m over a 20 year period, when compared to the status quo. This is based on average loan costs of £0.27m per annum.

24. Within the stated cost estimates given, there is a contingency provision, which is
considered reasonable for projects of this nature. The contingency element gives some
element of protection against general cost pressures including inflation and variation on
construction costs. It will be required to be reviewed prior to start on site and final financial closure and therefore is subject to variation up until that point (estimated Summer 2025).

CONSULTATION AND PARTNERSHIP WORKING

25. Consultation has taken place with the cross-service Eastwood HQ Project Board, as
well as the Corporate Management Team in the production of this report.

26. The modernisation of the Barrhead office has recently been completed and has
resulted in very positive feedback from staff that operate from that office. The improved
kitchen areas, ICT set up, workstations and collaboration spaces have received
overwhelmingly positive and increased satisfaction from staff and services working there. The learnings from those changes will help inform plans for Eastwood HQ.

27. Staff wellbeing surveys have taken place in recent years and those at Eastwood HQ
have strongly indicated in their responses that they do not work in a modern work environment or have access to adequate facilities to support their health and wellbeing e.g. quality of toilets, lighting, kitchen/dining spaces, lack of ventilation in break-out spaces, windows that do not open, heating that is not variable throughout the building and poor power and data connectivity in meeting rooms and key offices. One of the key project outcomes is to enable staff at Eastwood HQ to have better welfare facilities including break-out areas to get away from desks and working and collaborative spaces to use, following the principles established for the Barrhead refurbishment.

IMPLICATIONS OF THE PROPOSALS
28. There are no legal, Subsidy Control, sustainability or equalities implications arising from this report.

29. There are significant financial implications arising from this report, with further capital requested to deliver the project as envisioned. There will be property and ICT implications, with works planned to improve the core infrastructure and working environment at Eastwood HQ, as well as enhancing the Council’s ICT resilience. Building improvements at Eastwood HQ will be developed in a manner that seeks to increase the sustainability of the building, enhancing its useful life; while opportunities for greener solutions will be explored. Improved access to Council Chambers will allow for easier movement for people with a disability or other mobility issues than there is at present.

CONCLUSIONS

30. The refurbishment of Eastwood HQ represents a positive opportunity to develop a
working environment that is fit for both the modern workforce and one that can flex to
accommodate future needs. In addition to the significant benefits for staff morale, working practices and supporting our people vision, previous decisions necessitate that we must make HQ a suitable environment to accommodate additional staff.

31. The existing Eastwood HQ building has not seen any substantial change to its layout
for staff, nor any significant investment in infrastructural services since construction.

It is no longer appropriate nor fit for purpose for the Council and employees have consistently reported that this impacts their wellbeing. Whilst the increase in budget requirements is recognised as a challenge, nonetheless there is still a positive saving over the 20 plus year extended life of the asset. Work is planned to take place across 2025 and into 2026.

32. Further regular updates will be provided to the Governance Board, CMT and Elected
Members periodically to update on progress and advise of any issues or matters of interest.

RECOMMENDATIONS

33. It is recommended that the Council:

a) consider a request to increase the Eastwood Headquarters refurbishment
budget allocation by £1.30m to £6.16m;

b) approve the reduced scope of the works as set out in option 4, and described in paragraphs 19, 20 and 21; and

c) approve that refurbishment works at Eastwood Headquarters proceed.

CAITRIONA MCAULEY
DIRECTOR OF ENVIRONMENT
December 2024

REPORT AUTHORS
Mark Rodgers; Head of Service, Housing and Property
Alastair Ross; Corporate Landlord Manager

20/12/2024

Published Barrhead News On Line

www.barrheadnews.com/

Cost revealed to revamp East Renfrewshire Council headquarters
19th December

By Drew Sandelands
@drewsandelands
Local Democracy Reporter

A revamp of East Renfrewshire Council’s headquarters is set to cost £1.3m more than initially estimated despite being scaled back.

Work to upgrade the Eastwood Park building had been approved last year at £4.6m, but new surveys revealed pushing ahead with that plan would now cost £7.2m.

Instead, councillors agreed with a recommendation to cut back the project — including less work to improve the council chamber — which is now estimated at £6.16m.

Council leader Owen O’Donnell, Labour said the scheme was “vitally important to extend the life” of the building by “at least 20 years”.

“To deliver the original plan in full would cost an extra £2m or so,” he added. “Given the environment we are in, given that we are going to be making budget cuts, I’m not sure it’s appropriate for us to proceed on that basis.”

Work is set to start in summer 2025 and be completed by early 2026.

Cllr Gordon Wallace, Conservative, said: “We are still where we were a year ago, we still have an entire HQ which is not fit for purpose.”

He proposed using money available to the council following a reduction in employer contributions to the Strathclyde Pension Fund to fund the full revamp.

Cllr Wallace added: “That money was going to go to pensions, which is about the welfare of our staff ultimately, so we have an opportunity here to use these funds without putting any pressure on local residents.”

However, after talks between political group leaders, councillors agreed to the reduced scheme. Cllr O’Donnell said there is “disappointment among us all that we weren’t able to deliver on the original vision of this plan from last year”.

He said officials could be asked to look at “alternatives for delivering the original vision”.

Built in 1980, the headquarters has had no “significant investment or upgrades to much of its core infrastructure since construction”, officials reported.

Fittings, such as windows and electrical infrastructure, are “beyond their design life” and “inadequate for today’s workforce needs and digital requirements”.

Last December, councillors approved plans to modernise the offices and council chambers, despite some criticism over “misplaced priorities”. The proposal aligned with a decision not to renew the lease on offices in Thornliebank from February 2026.

However, further surveys found “very substantial investment in the building’s core services infrastructure is now required”, including heating upgrades and rewiring of both the electrical power and ICT cabling.

Under the approved plan, there will be core infrastructure improvements, including ICT, as well as refurbishment of all kitchen facilities and bathroom upgrades.

Accessibility to the council chamber will be included as well as the replacement of all external opening windows. The second-floor workspace, where most staff are located, will be refurbished, although to “a lesser degree”.

Another option had been to continue with the original budget, but officials said staff would “experience very little improvement to their working environment”. Deferring the project was also suggested, with the report stating this would stop the movement of staff from Thornliebank.

Cllr Annette Ireland, independent, said: “I hate to be the person who says ‘told you so’, but I did worry and speak out about the increase in costs.”

She agreed areas of the building are “not fit for the number of staff that will be coming in once we close Spiersbridge”, but added it was a substantial spend at a “time when we are cutting back” on other projects.

Cllr Caroline Bamforth, SNP, said she was happy to agree to the recommendation having “seen some of this building and even our office… the holes in the ceiling”.

She added: “I’m glad we are scaling back on what we do in the chamber. I think the optics of doing the chamber up don’t look good when we’re making cuts.”

The council’s chief executive Steven Quinn said the chosen option allows “us to do all the infrastructure… the electrics, cabling, plumbing, windows etc across the whole building including the chamber”.

He added the council would then be able to decide whether to make “cosmetic” upgrades to parts of the building not in line for improvements at this point in future.

31/1/2025

Posted Cllr Ireland facebook page -

www.facebook.com/CllrAIreland/

Cllr Annette Ireland is at East Renfrewshire Council.
15 h · Giffnock ·
❗️ERC Refurbishment HQ Costs Increase ❗️

The refurbishment costs for East Renfrewshire Council’s HQ building have increased dramatically.

I am still very much against this much being spent on the HQ building but I have to admit my jaw hit the floor when the Tories argued that “we stick to what we agreed” and continue to spend on the Council chamber itself.

Right now, when cuts are happening to jobs and services, this was their priority.

Just ridiculous

The paper can be found at

www.eastrenfrewshire.gov.uk/.../Item_11...

And the webcast of the meeting is at

eastrenfrewshire.publici.tv/...webcast.../913949

With this paper discussed at 30 minutes 30 seconds in

Links -

Read paper on Council webpage Full Council 11 December 2024 Meeting Agenda Item 11 -

www.eastrenfrewshire.gov.uk/council-111224


View meeting on Council webpage here -

Full Council 11 December 2024 With this paper discussed at 30 minutes 30 seconds in

eastrenfrewshire.public-i.tv/core/portal/home