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PERTH & KINROSS COUNCIL - THE
PROVISION OF OFFICE ACCOMMODATION AND A MULTI-STOREY CAR PARK
Perth and Kinross Council has now signed a PFI contract
with Kinnoull House Ltd, the Consortium comprising Morrison Construction
and the Royal Bank of Scotland to provide Perth and Kinross Council
with serviced office accommodation in the centre of Perth for over
700 of its staff. In addition, a new multi-storey car park facility
adjacent to the offices providing 555 spaces will be provided.
Background
Following local government reorganisation in April
1996, staff providing services for the new Council were accommodated
in a variety of scattered locations. It was believed that there would
be significant economies of scale and considerable improvements in
the quality of service to be provided to the community which could
be achieved through the development of a single office campus to accommodate
the majority of Council staff. The Council was also concerned to maximise
the economic benefit to Perth itself of the development and included
within the project is the provision of a public car parking facility
to meet the need for additional and replacement of street provision
within the city.
Features
The contract features include:
- the provision of a bespoke new build serviced office
accommodation to accommodate in excess of 700 staff for an initial
period of 25 years,
- the service provider will make available a fully
serviced building throughout the term of the contract, except for
furniture and Information and Communication Technology hard and
software which will be provided by the Council itself;
- the accommodation will combine innovative design
with architectural merit with emphasis being placed on environmental
considerations and efficient use of space and energy;
- flexibility and adaptability in design and use
is an essential feature of the project, in recognition of the changing
environment within which local government operates;
- the risk of disposing of a number of properties
currently occupied by the Council which will become surplus to requirements
will be transferred to the service provider;
- the sharing of cost reductions arising from energy
efficiency savings;
- a five yearly market testing of the facilities
management provision to ensure competitiveness and that best value
is achieved;
- availability criteria and payment deductions which
will apply in the event of there being any service shortfall;
- a guaranteed minimum annual payment to the Council
arising from revenue generated from public car parking and a share
of income received above a pre-determined threshold.
Benefits
The benefits which the Council will achieve through
the project include:-
- a single point of service delivery for customer
convenience;
- reduced operational costs;
- strengthening the local economy and enhancing town
business and stimulation of city centre private sector development;
- contributing to the achievement of town centre
plans and enhancing the quality image of the town centre;
- release of properties for inward investment and
economic expansion;
- easing traffic congestion in central Perth and
providing replacement car parking for spaces lost through other
urban initiatives as well as providing much needed additional car
parking spaces.
Timescale
The contract was signed on 30 March 1999 and construction
work on the facilities, scheduled to take 72 weeks, has begun. It
is intended that the new facilities should be operational by September
2000.
Facts
Sponsor – Perth & Kinross Council
Contact:- Ron Jackson, Director of Legal Administrative and Property
Services (Tel 01738 475101)
Contractors – KHL Limited
Signed – 30 March 1999
Capital Value - £20m
Contract Length - 25 yrs
Construction Completion:- End 2000
Advisers to the Council –
Financial – PricewaterhouseCoopers
Legal – Burness, Edinburgh
Technical – Jones Lang Wootton, Edinburgh
Scottish Office Contact – Andrew Clearie (Tel 0131 244 7419)
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