Wigan Community Fire and Ambulance Station PDF 125 KB

GREATER MANCHESTER FIRE
AND RESCUE AUTHORITY
23 APRIL 2015
Subject: WIGAN COMMUNITY FIRE AND AMBULANCE STATION
Report of the County Fire Officer & Chief Executive
Report Author: Geoff Harris, Director of Prevention & Protection
Tel:0161 608 4004 Email: harrisg@manchesterfire.gov.uk
PURPOSE OF THE REPORT
The purpose of this report is to inform Members of
progress towards designing and building a joint Fire and
Ambulance Hub Station on the current site of Wigan Fire
Station. It also seeks support from Members to progress
the development of a full business case and project plan
for delivery.
EXECUTIVE SUMMARY
1.
Greater Manchester Fire and Rescue Service (GMFRS) and North
West Ambulance Service (NWAS) have been working on plans to
design and build a shared Fire and Ambulance Station at the current
site of Wigan Fire Station.
2.
This work has resulted in a design that maximises shared space on the
site allowing for closer working and understanding between our two
organisations. The design could provide a blueprint for greater
collaboration in other parts of Greater Manchester.
3.
High level costs and models for funding the project have been
developed with the NWAS Board considering and approving an outline
business case for progression at their meeting on 25 March 2015.
4.
To progress the potential scheme further it will now be necessary to
develop a full business case and supporting project plan for
consideration by Members and the NWAS Board
5.
In the event of a failure to agree or gain approval from either Members
or the NWAS Board, the original plan to build a replacement station for
fire only will be reinstated.
6.
This paper seeks the approval of Members to invest in the
development of a full business case and project plan.
INTRODUCTION/BACKGROUND
Background to Collaboration
7.
Through discussion with NWAS it became clear that they are looking to
move to different delivery model involving a ‘hub and spoke’ approach
that would enable them to rationalise their assets.
8.
As a consequence a decision was taken, and approved by Members,
to delay the progress of the project so that a more collaborative
approach involving the development of a joint Fire and Ambulance hub
could be explored.
9.
The objectives of this scheme would be to co-locate the current Wigan
Fire Station and a number of ambulance sites onto one site at Wigan.
The benefits from co-locating include:
Enablement of more effective working between partners, including
improved understanding of each other’s roles
Development of a more collaborative approach to risk reduction
Delivery against some of the objectives set out in the ‘Knight
Review; Facing the Future’
Reduced capital and revenue costs
Potential for NWAS to realise savings through the sale of assets
10.
If progressed the project will also deliver against a number of the key
principles of the Joint Emergency Services Interoperability Programme
(JESIP), which include:
Joint training and exercising
Shared organisational and cultural awareness
Shared information and intelligence
Joint understanding of roles
Joint procurement and sharing of resources
11.
As the approach to the delivery of public services evolves, visible
collaboration with other services, such as this, will assist in changing
the culture and expectation of both staff and the public regarding
greater integration.
Requirements For A New Fire and Ambulance Station
GMFRS
12.
Wigan Fire Station was built in 1964 and, although functional, requires
significant investment annually to maintain it and has running costs that
are significantly higher than those for a modern building. A plan to
replace the current building with a new station similar to those at Bury
and Rochdale was scheduled to commence in June 2014.
13.
An analysis of fire cover requirements in the Wigan area determined
that the most appropriate location for a new fire station is the current
site at Robin Park Road.
14.
With this in mind plans were developed to demolish the existing
building and rebuild on the same site. This included plans to convert
the existing garage space, at the rear of the site, into a temporary fire
station for the duration of the project.
15.
Members will recall that the schemes at Bury and Rochdale were
delivered by Kier Construction Northern. At the time Kier Construction
Northern were only contracted to deliver two fire stations and therefore
could not automatically be used for the delivery of a new station at
Wigan.
16.
As a consequence a procurement exercise to appoint a contractor for
this scheme was commenced using the North West Construction Hub
(NWCH). As part of this process an initial feasibility study was
undertaken by Kier Construction Northern, via the NWCH with design
input from architects Bradshaw, Gass and Hope. The scheme was in
the early stages of selection of a contractor when NWAS expressed an
interest in taking part. The GMFRS only activities were therefore
suspended at that point, and new work was commended based on
revising the scheme to incorporate the requirements of NWAS.
NWAS
17.
Senior NWAS managers expressed an interest in co-locating on the
Wigan Fire Station site in May 2014. The NWAS Greater Manchester
(GM) West group is comprised of 5 ambulance stations, Wigan,
Hindley, Atherton, Standish and Billinge. These stations were built in
the 1960’s and require varying degrees of refurbishment and ongoing
maintenance. The group has 136 operational staff resourcing 20
emergency vehicles.
18.
NWAS are seeking to modernize their approach to the delivery of their
services through the introduction of a ‘hub and spoke’ model that will
enable them to rationalise the number and size of ambulance stations.
GMFRS’ intention to rebuild a fire station on the site at Robin Park
Road, presented an opportunity for NWAS to consider the use of the
site as a hub for their GM North West group.
19.
The introduction of this approach in Wigan will enable NWAS to realise
cashable savings by reducing the size and maintenance costs for their
estate; and through the sale of existing estate assets.
CURRENT POSITION
20.
A multi-agency project board has been established to consider the
options for the development of a joint fire and ambulance hub on the
site. Plans have been developed and both NWAS and GMFRS staff
consulted on the design. Significant progress has been made in
maximising the amount of space that could be shared by both
organisations. The current site footprint will not accommodate all the
requirements and it will be necessary to acquire the vacant land to the
South West of the site, which is currently owned by Wigan Metropolitan
Borough Council (WMBC). Site and proposed building plans are
included at Appendices A and B.
21.
Discussions to resolve the basis on which the vacant land is acquired
are being progressed by financial leads from NWAS, WMBC and
GMFRS.
22.
A number of potential cost models have been mutually explored and
have resulted in development of two financial options that have been
previously presented to Chairs and Corporate Leadership Team and
have now been presented to the NWAS Board. These include:
NWAS to share capital and revenue costs for the new station 50:50
with GMFRS
GMFRS to provide 100% of capital funding, 50% recovered over
the period of a 30 year lease with revenue costs shared on a 50:50
basis.
23.
Due to the potential impact of NWAS’s VAT arrangements the most
cost effective option would be for GMFRS to provide 100% of capital
costs and recover 50% over the period of a 30 year lease. Both NWAS
and GMFRS have sought independent VAT advice, which has clarified
that there would be no adverse impact on GMFRS from such an
arrangement.
24.
At its meeting on 25 March 2015 the NWAS Board approved the
outline business case for this collaboration with a view to a full
business case being developed and presented to the Board in July
2015. Their preference is the adoption of a cost model where GMFRS
provide 100% of capital funding.
OPTIONS/ALTERNATIVES
25.
Whilst a number of options, outside of those considered here, exist to
secure a new station at the Robin Park Road site only three present a
realistic opportunity to progress;
Develop and implement a fully costed project, for final approval by
the Fire Authority and NWAS Board, to demolish the existing
building and rebuild a joint fire and ambulance hub on the same site
with 100% of capital funding provided by GMFRS from reserves.
Develop and implement a fully costed project, for final approval by
the Fire Authority and NWAS Board, to demolish the existing
building and rebuild a joint fire and ambulance hub on the same site
with capital funding shared equally between NWAS and GMFRS.
GMFRS contribution to be provided from reserves.
Revert to the original concept of replacing the existing station with a
new one built for fire only. This option would be progressed
regardless, in the event of NWAS board not providing approval for a
full business case.
PREFERRED OPTION
26.
In the spirit of collaboration and to achieve the positive benefits set out
above, it would be preferable to progress with the design and delivery
of a joint fire and ambulance hub rather than a ‘fire only’ option.
27.
If a 50:50 capital funding arrangement were adopted this would result
in NWAS incurring additional costs for VAT of potentially £0.5million,
significantly reducing the financial benefits to them and potentially
making the project undeliverable.
28.
For these reasons the preferred option is for the design and delivery of
a joint fire and ambulance hub with GMFRS bearing all associated
capital costs. The NWAS contribution towards capital costs to be
recovered through a legally binding agreement over a period of 30
years.
CONSULTATION
29.
NWAS and GMFRS staff have been consulted through the
development of the initial plans and outline business case. As the
project will require support from others in the vicinity of the site
consultation will take place with local residents and businesses, in
particular the ASDA store on Robin Park Road who have already
indicated that they can support the project through the provision of
parking arrangements throughout any demolition and build phase.
RESOURCES IMPLICATIONS
30.
a)
Financial and Procurement
Capital Costs
The estimated capital cost for the revised scheme is £4.5million full details are set out in Appendix C(i)).
This includes for demolition of the current fire station, building
works, external works and associated design fees.
This estimate has been provided by Bradshaw Gass and Hope,
consultant architects used as part of the feasibility stage referred
to in paragraph 16 above and based on the latest design agreed
between both parties.
It is anticipated that additional skills will be required to support
the scheme, in the form of a Quantity Surveyor, Employers
Agent and Clerk of Works. This can be accommodated within
the project budget included above.
Arrangements at the end of 30 year term
A share of any capital receipt at the end of the 30 year term,
(based on valuation at that point by the District Valuer) is
assumed for the 50:50 capital model only.
For the GMFRS capital model it is assumed that there is no
share of any capital receipts at the end of the 30 year term, with
ownership remaining with GMFRS.
Revenue Costs
Revenue costs have been calculated based on the cost per
square metre of GMFRS newest sites at Bury and Rochdale,
with an assumed 50% share of revenue costs for both parties.
Revenue costs included in the models are as follows:
Recovery of 50% of capital costs from NWAS - revenue
only model
Costs of utilities –based on costs at our newest and most
efficient sites at Bury & Rochdale
Rates – based on current cost at Wigan site
Servicing and planned maintenance for the site –
estimated on current costs of services provided for
GMFRS
An estimate for the whole life cost of replacing boilers,
electrical rewires, new lift and re-roofing
Procurement
It is intended that the North West Construction Hub will be used
for selection of a contractor, using their new Medium Value
Framework for contracts with a value between £2m and £9m.
This will be led by GMFRS with input and consultation at all
stages with NWAS.
31.
b)
Human Resources (including Equality & Diversity Implications)
Although staff will share accommodation, there will be no staff
shared between organisations. As a consequence HR issues will
be dealt with by NWAS and GMFRS HR functions in the normal
manner.
The project will result in a significant amount of additional work
within the Estates and Facilities team. It is therefore intended to
recruit an additional bespoke resource within the team to
accommodate the delivery of this and other key projects.
Approval for this will be sought from the Corporate Leadership
Team and Members once a full business case has been
developed.
32.
c)
Legal and Constitutional
The principal legal documents will consist of:
An agreement for a lease during the construction phase
A lease upon completion of the building
The heads of terms for the lease will deal with:
The Term – 30 years
The Property – the areas to be occupied
The Rent
Break Options and consequences
Rent Review
Option to Renew
Rent on Renewal
Landlord and Tenant Act 1954
Permitted Use
Permitted Assignment
Insurances
Running Costs Sinking Fund
Advice and assistance will be sought from the Authority’s
Solicitor throughout the life of the project, and lawyers
specialising in property work will be engaged as appropriate.
33.
d)
Health & Safety
GMFRS and NWAS’s Health and Safety Departments will be
consulted throughout the project.
34.
e)
Sustainability
New buildings offer an opportunity for significant reductions in
environmental
impact
using
the
latest
sustainable
technology. This impact will be managed through the
procurement process, ensuring that sustainability criteria are
built into the specification for the new building. In the case of the
Bury and Rochdale new builds this included a specific
commitment to reach the BREEAM 'Excellent' rating. The
indicative scheme costs allow for a similar standard.
This new technology results in significant savings on running
costs. At Bury there have been savings of up to 90% on heating
and lighting bills. Each new Fire Service building is more efficient
than the last. Rochdale Community Fire Station opened in
December 2013 and achieved an incredible A+ rated energy
performance. It generates more energy than it uses.
RECOMMENDATIONS
35.
Members are requested to:
a)
Note progress to date.
b)
Approve further work to develop a full business case and project
plan; to be approved by the Fire Authority and NWAS Board.
STEVE McGUIRK
COUNTY FIRE OFFICER
& CHIEF EXECUTIVE
There are no background papers to this report within the meaning of Section
100D of the Local Government Act 1972.
S. McGuirk
(Proper Officer)
9.4.15