Agenda and decisions

Salford City Council - Record of Decision

I, Councillor John Merry, Deputy City Mayor, in exercise of the powers contained within the Salford City Council constitution do hereby:

1.    Note that the number of installations of air source heat pump systems under PSDS 3 has reduced to 2 sites to ensure Salford City Council’s continued participation in the ‘Supporting Greater Manchester Regional Heat and Energy Decarbonisation Delivery’ Scheme – PSDS 3.

2.    Note the requirement to accept and sign an amended Grant Funding Agreement Letter for PSDS 3, once it has been received, including the increased match funding requirement.

3.    Approve Salford City Council’s involvement in the PSDS 3b bid and the requirement to accept and sign a Grant Offer Letter for the further round of funding (PSDS 3b) and the match funding requirements should we be successful.

The Reasons are that Salford City Council was part of a consortium, led by the Greater Manchester Combined Authority (GMCA), to deliver installation of heat decarbonisation and energy generation technologies across the public estate and this the above actions allows access to funding available through H.M. Government’s Public Sector Decarbonisation Scheme (PSDS)

Assessment of Risk:

The main risks to the proposal are as follows:-

• Procurement of necessary specialist contractors to deliver the installations
• Disruption to Council Services during site works
• Timescales for installation

All of which have been evaluated and actions to mitigate them formulated.

The source of funding is:

·         Public Sector Decarbonisation Funding - Grant

·         USB Capital 22/23 – Low Carbon & Property (PSDS 3)

·         USB Capital 23/24 - Low Carbon & Property (PSDS 3b) – Subject to USB Capital Bid

·         Invest to Save Funding (PSDS 3b) - Secured

Legal Advice obtained: Yes - Shared Legal Service                                                   

Financial Advice:  Alison Woods, Interim Commercial Finance Manager

Procurement advice: Heather Stanton, Category Manager

This contract has been procured as a further competition under the Procure Plus Framework.  This is a compliant route to market which complies with PCR’s 2015 and SCC standing orders.

HR advice obtained: n/a

Climate Change advice: The proposals meet the aims of:

·         Five Year Environment Plan for Greater Manchester

·         Salford City Council’s Great Eight - Tackling the Climate Emergency

·         Salford’s Climate Change Strategy - Creating a City prepared for the Future

·         Climate Emergency Declaration

The following documents have been used to assist the decision process:

Report submitted to Property/Regen on 12 December 2022

Contact Officers:

Hayley Nixon - Commercial Project Manager

Majid Maqbool - Energy Manager

This decision was published on Monday 12 December 2022.

This decision will come in force at 4.00 pm on Monday 19 December 2022 unless it is called-in in accordance with the Decision-Making Process Rules.

The following items are for the primary purpose of providing members of the public with all relevant information on the respective matters, other than those elements, which in accordance with the relevant sections of the Local Government Act 1972, remain confidential and require that any arising decision is taken in Part 2 of the agenda.

Salford City Council - Record of Decision

I, Councillor John Merry, Deputy City Mayor, in exercise of the powers contained within the Salford City Council constitution do hereby:

1          Approve the letting of 27,056 sqft (2,514 sqm) of space on the part 6^th and 7^th Floors, 2 New Bailey on a new 10-year lease from 9^th January 2023 on the agreed terms.

2          Delegate authority to the Strategic Director Place in conjunction with the S151 officer to negotiate, agree and finalise the detailed terms of the transaction.

3          Authorise the Shared Legal Service to prepare all necessary documentation and to take all steps which are required to give effect to the above recommendations.

The Reasons are that this will secure a substantial letting to a government covenant and generate a significant rental income to the Council. The letting shows the ongoing market confidence in 2 New Bailey. The letting is subject to a strict commercial confidentiality agreement and further details of the occupier and the letting cannot be released at this time.

Assessment of Risk: Low 

The source of funding is: The letting will generate a rental income stream, service charge income and business rates for the City Council

Legal Advice: Rebecca Maddison, Head of Commercial and Strategic Development (Legal)                                                   

The Council is under an obligation pursuant to section 123 Local Government Act 1972, in respect of a disposal, to obtain best consideration reasonably obtainable taking into consideration all monetary and commercial factors. 

There are no adverse legal implications with regards to the proposed disposal provided that the disposal is at market value and accords with the requirements of Section 123 of the Local Government Act 1972.

Financial Advice:  Alison Woods, Interim Commercial Finance Manager

The letting proposal represents a good margin on the cost paid, and a competitive rate given the pressure within the local market.

Procurement advice: Anthony Hilton, Strategic Head of Procurement

There are no additional procurement implications within the detail of this report

HR advice obtained: n/a

Climate Change advice: This is a CAT A building and is fully compliant with all current Building Regulation requirements.

The following documents have been used to assist the decision process.

Public briefing report submitted to Property/Regen on 12 December 2022

Contact Officer: Stephanie Mullenger, Strategic Asset Consultant               

Tel: 07810158682

This decision was published on Monday 12 December 2022.

This decision will come in force at 4.00 pm on Monday 19 December 2022 unless it is called-in in accordance with the Decision-Making Process Rules.

Salford City Council - Record of Decision

I, Councillor John Merry, Deputy City Mayor, in exercise of the powers contained within the Salford City Council constitution do hereby:

1          Approve the letting of 19,847 sqft (1,844 sqm) of space on the 6^th Floor, 100 Embankment on the agreed terms.

2          Approve the payment of a capital sum by Salford City Council to facilitate the letting

3          Delegate authority to the Strategic Director Place in conjunction with the S151 officer to negotiate, agree and finalise the detailed terms of the transaction.

4          Authorise the Shared Legal Service to prepare all necessary documentation and to take all steps which are required to give effect to the above recommendations.

The Reasons are that this will secure a substantial letting and associated  covenant and generate a significant rental income to the Council. The letting shows the ongoing market confidence in 100 Embankment and further reduces the vacant space within the building . The letting is subject to a confidentiality agreement and further details of the letting cannot be released at this time.

Assessment of Risk: Low 

The source of funding is: The letting will generate a rental income stream, service charge income and business rates for the City Council

Legal Advice: Rebecca Maddison, Head of Commercial and Strategic Development (Legal)                                                   

The Council is under an obligation pursuant to section 123 Local Government Act 1972, in respect of a disposal, to obtain best consideration reasonably obtainable taking into consideration all monetary and commercial factors. 

It is proposed that a new effective Full Repairing & Insuring lease is to be entered into.

There are no adverse legal implications with regards to the proposed disposal provided that the disposal is at market value and accords with the requirements of Section 123 of the Local Government Act 1972.

Financial Advice:  Alison Woods, Interim Commercial Finance Manager

The letting proposal represents a good margin on the cost paid, and a competitive rate given the pressure within the local market.

Procurement advice: Anthony Hilton, Strategic Head of Procurement

There are no additional procurement implications

HR advice obtained: n/a

Climate Change advice:

This is a CAT A building and is fully compliant with all current Building Regulation requirements.

The following documents have been used to assist the decision process:

Public briefing report submitted to Property/Regen on 12 December 2022

Contact Officer: Stephanie Mullenger, Strategic Asset Consultant               

Tel: 07810 158682

This decision was published on Monday 12 December 2022.

This decision will come in force at 4.00 pm on Monday 19 December 2022 unless it is called-in in accordance with the Decision-Making Process Rules.

Salford City Council - Record of Decision

I, Councillor John Merry, Deputy City Mayor, in exercise of the powers contained within the Salford City Council constitution do hereby:

1          Approve an additional capital payment of £0.920m to X and Why by Salford City Council for internal building improvements to enhance the flexible office space lettings offer at 100 Embankment.

2          Delegate authority to the Strategic Director Place in conjunction with the S151 officer to negotiate, agree and finalise the detailed terms of the transaction.

3          Authorise the Shared Legal Service to prepare all necessary documentation and to take all steps which are required to give effect to the above recommendations.

The Reasons are that this additional allocation  will allow the full delivery of a flexible workspace offer at 100 Embankment. It responds to the increase in cost due to the increased size of the flexible workspace and increased costs.. Once completed the flexible workspace will provide animation, activity and vibrancy to the reception, ground floor and roof terrace of the building, and will support and secure more traditional office occupiers in the remaining floors of the building. Interest in the remaining space within the building is high and all lettings including the X and Why arrangements will help generate substantial income for the Council.

Assessment of Risk: Low 

The source of funding is: Capital funding on an invest to dave basis .  The space and the wider Embankment lettings will generate an income stream, for the City Council

Legal Advice: Rebecca Maddison, Head of Commercial and Strategic Development (Legal)                                                    

The Council is under an obligation pursuant to section 123 Local Government Act 1972, in respect of a disposal, to obtain best consideration reasonably obtainable taking into consideration all monetary and commercial factors. 

There are no adverse legal implications with regards to the proposed disposal provided that the disposal is at market value and accords with the requirements of Section 123 of the Local Government Act 1972.

Financial Advice: Alison Woods, Interim Commercial Finance Manager

Date: 12^th December 2022

It is proposed that the further fit out costs estimated at £0.914m, will be funded from further borrowing on a self-financing basis, to be supported by the additional income generated from the uptake in floorspace, which equates to £0.186m per annum. 

It may also be possible to fund some of this cost from the use of provision for tenant incentives within the projected portfolio cashflows/use of the New Bailey Reserve.

Procurement advice: Anthony Hilton, Strategic Head of Procurement

There are no additional procurement implications.

HR advice obtained: n/a

Climate Change advice: The scheme has been worked up and will have the highest sustainability ratings within the Manchester and Salford city centre region.

This is a CAT A building and is fully compliant with all current Building Regulation requirements.

The following documents have been used to assist the decision process:

Public briefing report submitted to Property/Regen on 12 December 2022

Contact Officer:        Stephanie Mullenger                                  

Telephone number:07810 158682