Member Briefing Paper - Lease or purchase of College Office premises
- The College was advised in December 2018 that the lease on the current premises would not be renewed and a termination date for 30 September 2019 was set.
- Members have been communicated with about these changes via the President’s report (December College Courier: https://ripehosting.blob.core.windows.net/anzcvs-prod-media/23383/dec18_college_courier_final.pdf)
- The new College Office must be fit for purpose and meet not only current but future strategic and operational requirements.
- Preliminary work was undertaken by the College Management team to identify suitable alternative arrangements (lease versus purchase) and possible locations.
- This preliminary work was presented to Council in February 2019.
- Council appointed and directed an advisory committee (CEO, College Manager, President and Treasurer) to proceed with further investigation into the alternative options and to present these options for consideration at the earliest possible time and before July to ensure continuity of College operations consistent with an exit date of 30 September 2019.
The advisory committee developed a critical path of key dates for decision making in parallel with the preparation of an options paper for Council to consider.
An analysis of the College’s requirements was undertaken, and a brief was prepared.
Considerations for the proposed office solution included:
- Value for money: with consideration given to transparency of costs, clarity on the total cost of ownership, asset protection, best opportunity for capital gain
- Fit for purpose: Design contributes to a collaborative work environment and maximises staff effectiveness
- Scalability: Flexible spaces that fits with the College’s vision for the future
- Culture / Brand: Consistency with brand promise i.e. Professional, respectful, membership driven, accessible, provides value, looks and feels professional
- Staff / Member amenity: Provides a positive aesthetic and productive environment, accessible
- Visual Appearance: not ostentatious nor over modest
A selection process was initiated, and the options presented to Council. The options included the results of a desk top search of over 12 properties and physical inspections of 5 properties. A further analysis of current and perceived future requirements was undertaken, and recommendations made to Council for the consideration of two alternatives (option A and option B).
An assessment of the costs (including opportunity costs) was undertaken and a comparison of lease, buy, and lease to buy was completed to determine which alternative would achieve the best return on investment for members.
The assessment indicated that purchase of a premise provided the best outcome for Members and the College.
The College is presently in negotiations to purchase Option A, and has determined that if a price to purchase within the valuation range of the property cannot be struck, then arrangements will progress to enter into a contract to purchase Option B. The option to lease has not been taken off the table, if a property purchase is not determined to be feasible in the appropriate timeframe.
Council, working with the CEO and management team, will ensure that the ANZCVS secures an appropriate office space in which to run our operations, in order to best service our Members and continue our work of certifying excellence in the profession.
Zoe Lenard, President
Shane Klintworth, CEO