Item 12 - Depot Rationalisation Project Delivery Phase 2
West Dunbartonshire Council · 24 May 2023
Back to Infrastructure, Regeneration & Economic Development Committee — 24 May 2023 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer : Supply, Distribution & Property Chief Officer : Roads & Neighbourhood Infrastructure Regeneration and Economic Development Committee: 24 May 2023 ___________________________________________________________________ Subject: Depot Rationalisation Project Delivery Phase 2 1. Purpose 1.1 The purpose of this Report is to update IRED Committee on the current status of the Depot Rationalisation Project and to seek approval to progress with Phase 2 which would see the delivery of refurbished depot accommodation across two sites. 2. Recommendations 2.1 It is recommended that the Committee: (i) Note the Depot Rationalisation Project update; (ii) Agree proposals as set out within the Report to progress with the refurbishment of depot accommodation across two existing sites; (iii) Agree proposals as set out within the Report to agree new Recycling Reuse and Resource Centre (Waste Transfer Station) on existing Poplar Road site in Dumbarton; 3. Background 3.1 Discussions around the depot provision had been put on hold during 2020 to assess service provision and to review the impact of Covid 19. 3.2 Prior to this, the Depot Rationalisation Project Board last met in June 2019 where it was agreed the Project Board would meet again in the Autumn of that year once the status was known on the options for a future Depot location, as well as the potential impact of service delivery implications on future depot requirements. 3.3 Further to the above, as a result in changing legislation within the Waste Environment, there is a requirement for the Council to consider options to develop and implement a Recycling, Reuse & Resource Centre (Waste Transfer Station). This requires to be considered in conjunction with the development of the Depot Rationalisation Project due to interdependencies. ITEM 12
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3.4 A paper was presented to the Strategic Assessment Management Group in December 2021 providing an update on the current status of the Depot Rationalisation Project and an indicative timeline to conclude the Business Case.. In addition it was noted that the implementation of a salt dome should be delivered as Phase 1 of the project. 3.5 The Depot Rationalisation (DRP) Project Board met in January 2022 and agreed to progress with: a. Phase 1 - Procurement and installation of the salt dome; and b. Options appraisal to be considered and full Business Case developed. 3.6 Options appraisal considered : The options involved comparing the Business Case scenarios against the existing estate baseline of ‘do- nothing’ for the following proposed alternatives: • Demolish and rebuild facilities on Elm Road Dumbarton in a phased/tandem build approach to accommodate continuity of existing services delivery. Remodel Richmond and Stanford Street areas retaining Waste Transfer station and providing satellite base and welfare facilities for Greenspace, Roads, Waste, Fleet and Building Services; and • As above but include all Depot provision currently split over both the Dumbarton and Clydebank ends of the authority into one existing site footprint. 3.7 A procurement exercise has undertaken for long term waste contractor and tenders received were unaffordable. Feedback was assessed and it was identified that a Waste Transfer station was required. A feasibility study was commissioned to determine the size location requirements and sites were then assessed by officers for viability. 4. Main Issues 4.1 Phase 1 of the Depot Rationalisation was approved by Committee on 16 February 2022 which was the requirement to progress with the provision of a new salt storage area. 4.2 A Royal British Institute of Architects (RIBA) Stage 1 report was produced in September 2022 which indicated costs are outwith the existing budget provision of £8.4m and will therefore make the continuance of the project for a new build facility no longer financially viable. 4.3 An alternative option to refurbish the existing depot estate with the existing £8.4m budget set aside in the capital plan has been reviewed.
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4.4 This alternative option would be to rationalise the existing Depot sites in Dumbarton and Clydebank. These sites would be redesigned and improved for this purpose (Appendix 1). 4.5 These new improved sites would provide capacity for a cohesive workforce in the two existing locations whilst endeavouring to reduce ongoing revenue costs for satellite offices. They would also provide services and employees with a fit for purpose, high quality working environment. 4.6 Refurbishment work would be carried out whilst the sites remained operational and will be programmed accordingly using existing facilities where appropriate. Detailed discussions will be held with the workforce and trade unions in advance of any temporary decants which may be required. 4.7 It is anticipated that the depot refurbishment works would be carried out by Building Services incorporating specialist contractors where appropriate with the Recycling, Reuse & Resource Centre (Waste Transfer Station) being subject to a future procurement exercise. 4.8 With the revised proposal we would be able to retain the economic benefits that the two areas currently experience by having WDC in these locations. This would reduce the general running costs for the services by providing a refurbished depot that is more energy efficient and requires less maintenance 4.9 The proposal would look at retaining Building Services functions across both Dumbarton and Clydebank, with Waste, Greenspace, Roads and Fleet being split across both locations which supports the fit for the future service delivery model. 4.10 The strategic service delivery review will determine the operational requirements but it is anticipated Roads and Grounds would be predominately in Dumbarton with Waste and Fleet in Clydebank with small satellite bases. 4.11 It is also anticipated that a number of smaller satellite sites will be surplus assets which would be available for disposal as a result of this new proposal. Workstyle returns will also feed into what appropriate office accommodation is now required across both locations. 4.12 Initial visual surveys have been completed but detailed condition surveys will be required with architectural input in terms of efficient layouts and traffic management around both the two main locations and any satellite provision. 4.13 WDC require to meet Government targets to reduce biodegradeable waste going to landfill by 95% as of 2025. The Council also require to be compliant with the landfill tax ban due for introduction in December
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2025. Following an unsuccessful procurement exercise for a long term waste solution it was identified that a waste transfer station was required. A feasibility study has been completed and following the identification of a site, detailed design can commence. This will provide detailed costs for consideration. 4.14 As both the future waste transfer station project and depot rationalisation share a number of interdependences, incorporating both projects into one would realise economies of scale and ensure that both projects are in line with each other. 4.15 A number of sites within WDC ownership have been reviewed by officers from Waste, Greenspace and Asset Management with the current site at Poplar Road being the proposed option for a transfer station (Appendix 2). Operationally it is far more cost effective to start and finish refuse collection from the same base as the transfer facility and it would therefore be proposed that waste operations are moved to this site to retain flexibility in the service design. 4.16 Waste transfer stations are designed specifically to aid the sorting and storing of materials before they are moved on to larger sites for disposal or treatment. Our waste transfer site will be able to house recyclable material, general household waste, food waste, and green waste, before it is treated or disposed of at an Energy from Waste facility, or to a processor that will ensure our waste is suitably reused or recycled in accordance with regulations. 4.17 Disposal of Poplar Road is part of a savings option by Citizens Culture & Facilities and it is anticipated being vacant in March 2025. Utilising this site would be an effective use of a surplus asset and ensure maximum occupancy of Broadmeadow Industrial Estate with income coming into Common Good Fund. 5. People Implications 5.1 There are no significant people implications other than the resources required by officers within Supply, Distribution and Property and Roads and Neighbourhood. 6. Financial and Procurement Implications 6.1 The Depot Rationalisation project has a budget of £8.4k with spend to date at £119k and an additional £2m allocated for the Recycling, Reuse & Resource Centre. The anticipated spend for installation of new salt dome has not been achieved due to the project being delayed as a result of site conditions. The construction will commence Summer 2023. 6.2 The cost for the refurbishment works are currently unknown but it is anticipated that full budget will not be required. This will be reported via the normal capital reporting via BCR process going forward.
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6.3 There are no procurement implications arising from this report. 7. Risk Analysis 7.1 Should any unforeseen issues arise in terms of the existing buildings which affect the refurbishment design and deliverables the project may require to be redefined. 8. Environmental Sustainability 8.1 The repurposing of existing assets will improve service efficiencies by reducing duplication of work and allow for the sharing of resources. 9. Equalities Impact Assessment (EIA) 9.1 Screening and impact assessments will be carried out on specific activities as required as the project progresses. 10. Consultation 10.1 All Services involved with the Depots will be consulted during each key stage of the project development and delivery. 10.2 Procurement, Legal and Finance colleagues have been consulted and are members of the Project Board. 10.3 Joint Trade Unions have been consulted and are members of the Project Board. 11. Strategic Assessment 11.1 A full Strategic Assessment was not required for this Report but will be included in any future assessment. Angela Wilson Chief Officer: Supply, Distribution and Property Gail MacFarlane Chief Officer: Roads & Neighbourhood 11 April 2023 Person to Contact: Michelle Lynn, Asset Coordinator. Email: michelle.lynn@west-dunbarton.gov.uk Appendices: Appendix 1 – Current Depot Sites Appendix 2– Draft Layout of Future Waste Transfer Station
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Background Papers: Report to Infrastructure, Regeneration and Economic Growth Committee: 16 February 2022 - Depot Rationalisation Project Delivery Phase 1 : Salt Storage Wards Affected: All