Issue - meetings

The Herbert Ave scheme is also known as site 10 (of 24) that is in the Council New build Housing and Acquisition Strategy (CNHAS)  Programme approved by Cabinet on the 29^th September 2021.

At that time officers were undertaking a new construction tender process for Herbert Ave and therefore it could not be incorporated within the CNHAS paper.

The decision by the preferred bidder from the original 2019 procurement process, not to execute the agreement offered to them by withdrawing in January 2021 - has determined the need to engage the marketplace again.

The results from this new 2021 procurement activity generates the necessity for a revised Cabinet approval in respect of an increase in said construction costs - from that which was approved previously.

This paper therefore brings forward the recommendation for the award of a contract to the new preferred bidder for the delivery of critical works at Herbert Ave.

These works will deliver the construction of 24 new temporary accommodation units for families,relieving to a significant degree, the existing Bed and Breakfast reliance.

They will be built using Passive House design principles which the planning approval requires, to ensure they provide high levels of thermal efficiency and minimise the need for expensive space heating systems.

The report also provides the background to the market procurement constraints that have previously impacted on the delivery of this development project and presents the evaluation outcome of the recent competitive market procurement exercise for the selection of preferred bidder and award of contract for the construction of the temporary accommodation buildings.

The Portfolio Holder for Development, Growth and Regeneration presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'I' to these Minutes in the Minute Book.

Cabinet was advised that the Herbert Avenue scheme is also known as site 10 (of 24) that is in the Council New build Housing and Acquisition Strategy (CNHAS) Programme approved by Cabinet on the 29^th September 2021, and that at that time officers were undertaking a new construction tender process for Herbert Ave and therefore it could not be incorporated within the CNHAS paper.

Further to this Cabinet was informed that the decision by the preferred bidder from the original 2019 procurement process, not to execute the agreement offered to them by withdrawing in January 2021 - has determined the need to engage the marketplace again, and that the results from this new 2021 procurement activity generates the necessity for a revised Cabinet approval in respect of an increase in said construction costs - from that which was approved previously.

Cabinet was advised that this paper therefore brings forward the recommendation for the award of a contract to the new preferred bidder for the delivery of critical works at Herbert Ave, and that these works will deliver the construction of 24 new temporary accommodation units for families, relieving to a significant degree, the existing Bed and Breakfast reliance.

In relation to this Cabinet was informed that the accommodation will be built using Passive House design principles which the planning approval requires, to ensure they provide high levels of thermal efficiency and minimise the need for expensive space heating systems.

In addition, Cabinet was informed that the report also provides the background to the market procurement constraints that have previously impacted on the delivery of this development project and presents the evaluation outcome of the recent competitive market procurement exercise for the selection of preferred bidder and award of contract for the construction of the temporary accommodation buildings.

RECOMMENDED that Council: -

1.          Approve the proposed £3.486m temporary accommodation scheme budget required to deliver the development:

a.      supports the increase in previously approved budget of £ 2.508m (Cabinet Oct 2018) plus sum of £0.28m (ODR approval June 2020) By a further £0.698m. (As detailed under paragraph 54 of the report)

b.      approve the financial strategy for the scheme as set out in paragraphs 33 to 47 with specific approval for:

i)       £2.440m of prudential borrowing to be repaid over 50 years used to finance the Housing Revenue Account (HRA).

ii)     The capping of rental income to Affordable Rent levels and Local Housing Allowance.

c.      award the contract for the construction of the new temporary accommodation development to the preferred bidder.

Voting: Unanimous

Portfolio Holder: Development, Growth and Regeneration

The Portfolio Holder for Development, Growth and Regeneration presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'I' to these Minutes in the Minute Book.

Cabinet was advised that the Herbert Avenue scheme is also known as site 10 (of 24) that is in the Council New build Housing and Acquisition Strategy (CNHAS) Programme approved by Cabinet on the 29^th September 2021, and that at that time officers were undertaking a new construction tender process for Herbert Ave and therefore it could not be incorporated within the CNHAS paper.

Further to this Cabinet was informed that the decision by the preferred bidder from the original 2019 procurement process, not to execute the agreement offered to them by withdrawing in January 2021 - has determined the need to engage the marketplace again, and that the results from this new 2021 procurement activity generates the necessity for a revised Cabinet approval in respect of an increase in said construction costs - from that which was approved previously.

Cabinet was advised that this paper therefore brings forward the recommendation for the award of a contract to the new preferred bidder for the delivery of critical works at Herbert Ave, and that these works will deliver the construction of 24 new temporary accommodation units for families, relieving to a significant degree, the existing Bed and Breakfast reliance.

In relation to this Cabinet was informed that the accommodation will be built using Passive House design principles which the planning approval requires, to ensure they provide high levels of thermal efficiency and minimise the need for expensive space heating systems.

In addition, Cabinet was informed that the report also provides the background to the market procurement constraints that have previously impacted on the delivery of this development project and presents the evaluation outcome of the recent competitive market procurement exercise for the selection of preferred bidder and award of contract for the construction of the temporary accommodation buildings.

RECOMMENDED that Council: -

1.          Approve the proposed £3.486m temporary accommodation scheme budget required to deliver the development:

a.       supports the increase in previously approved budget of £ 2.508m (Cabinet Oct 2018) plus sum of £0.28m (ODR approval June 2020) By a further £0.698m. (As detailed under paragraph 54 of the report)

b.      approve the financial strategy for the scheme as set out in paragraphs 33 to 47 with specific approval for:

i)        £2.440m of prudential borrowing to be repaid over 50 years used to finance the Housing Revenue Account (HRA).

ii)      The capping of rental income to Affordable Rent levels and Local Housing Allowance.

c.       award the contract for the construction of the new temporary accommodation development to the preferred bidder.

Voting: Unanimous

Portfolio Holder: Development, Growth and Regeneration