Agenda item

(Housing Portfolio Holder) To consider the attached report (C-040-2015/16).

(1)        That, subject to planning permission and contracts exchanged for the planned redevelopment at St Johns Road in Epping, a new Repairs and Maintenance Hub be constructed on Council-owned land at Blenheim Way, North Weald to enable the Housing Repairs and Maintenance Services to be co-located, thus freeing up land at the existing Epping Depot site for the planned redevelopment at St Johns Road and free up office accommodation at the Civic Offices, Epping;

(2)        That Contract Standing Order C6 (Contracts in Excess of £50,000) be waived and that Pellings LLP be appointed to undertake the architectural and all other multidisciplinary building consultancy services for a fee of £170,000, subject to:

            (a)        a presentation by Pellings LLP confirming their experience, expertise and   proposed approach to the delivery of the project  to all members of the Cabinet; and

            (b)        following which the Housing Portfolio Holder be authorised to confirm or     otherwise the formal appointment of Pellings LLP;

(3)        That Mears be appointed to act as Project Managers to deliver the relocation/co-location project, as a “Key Deliverable” under the terms of their existing Repairs Management Contract, at their tendered rate;

(4)        That the capital costs, estimated to be around £3.3million including construction costs and fees, associated with the new Repairs and Maintenance Hub be funded from the Housing Revenue Account (HRA);

(5)        That a Supplementary Capital Estimate in the sum of £300,000 to cover fees and works in 2015/16 be recommended to the Council for approval, with the balance of £3million being included in the Capital Programme for 2016/17;

(6)        That the required HRA funding be provided through either revenue contributions to capital outlay (RCCO) and/or further borrowing from the Public Works Loan Board (PWLB);

(7)        That the Director of Resources be authorised to determine:

            (a)        the most appropriate form of capital funding; and

            (b)        if further borrowing was required then the most appropriate PWLB loan to secure and obtain;

(8)        That the transfer of the land from the General Fund to the Housing Revenue Account be recommended to the Council for approval, with an appropriate adjustment being made in the balances due between the funds;

(9)        That a planning application be submitted for the new Repairs and Maintenance Hub; and

(10)      That the provision of land for a play area to be provided by North Weald Bassett Parish Council not be included as part of the development, unless a formal request was received from the Parish Council in advance of the submission of the planning application.

The Housing Portfolio Holder presented a report on the proposed Housing Repairs and Maintenance Hub at North Weald.

The Portfolio Holder stated that the Council needed to re-locate its Housing Repairs Service from the Epping Depot, to enable the proposed re-development for the St Johns Road area of Epping to proceed. Having searched for alternative vacant buildings around the District and other potential development sites to relocate to, and with none found to be suitable, agreement was being sought to the construction of a new Repairs and Maintenance Hub on a Council-owned vacant brownfield site at Blenheim Way, North Weald. This would also create the opportunity for the Housing Repairs team to be co-located with the Housing Assets Team, currently based at the Civic Offices, which would not only result in operational benefits but, more importantly, free up accommodation at the Civic Offices – on the ground floor, close to Reception – to assist with the Council’s Accommodation Strategy. It was proposed to fund the new Hub, at an estimated cost of approximately £3.3million, from the Housing Revenue Account through Revenue Contributions to Capital Outlay (RCCO), further borrowing from the Public Works Loan Board, or a combination of both.

The Portfolio Holder reported that, in order to meet the very tight deadlines necessary to build a new facility and thereby vacate the existing Depot before the date that the Council was required to give the developer vacant possession, a waiver to Contract Standing Orders was required in order to quickly appoint the Architects, Building Consultants and Project Manager. It was proposed  to appoint Pellings LLP as the Architects and Building Consultants, and Mears  as the Project Managers. A planning application would also be required and authority was being sought to make an application.

The Portfolio Holder commented that the Council had become aware that the Parish Council had been seeking to provide a play area in the vicinity of the recently completed residential development adjacent to this site. Therefore, it was proposed that a play area be provided at the site if the Parish Council formally made such a request prior to the submission of the planning application and agreed to fund the cost of the play area. If no such request or undertaking was received then the space would provide further parking for the proposed Hub.

In response to questions, the Portfolio Holder added that the Council needed to vacate the current depot site in Epping as soon as possible to allow the redevelopment of St John’s Road to proceed; it was estimated that it would take four months for the planning application to be submitted and considered. North Weald Airfield was considered too costly as a potential site for a temporary Hub, and there was currently no alternative plan since no other sites were available. It was confirmed that the Building Control work would be performed by the Council’s own Officers.

The Leader of Council suggested an amendment to Recommendation 1, that the Hub be built subject to not only planning permission being granted, but also contracts being exchanged for the planned redevelopment of St John’s Road in Epping. 

Decision:

(1)        That, subject to planning permission and contracts exchanged for the planned redevelopment at St Johns Road in Epping, a new Repairs and Maintenance Hub be constructed on Council-owned land at Blenheim Way, North Weald to enable the Housing Repairs and Maintenance Services to be co-located, thus freeing up land at the existing Epping Depot site for the planned redevelopment at St Johns Road and free up office accommodation at the Civic Offices, Epping;

(2)        That Contract Standing Order C6 (Contracts in Excess of £50,000) be waived and that Pellings LLP be appointed to undertake the architectural and all other multidisciplinary building consultancy services for a fee of £170,000, subject to:

            (a)        a presentation by Pellings LLP confirming their experience, expertise and proposed approach to the delivery of the project  to all members of the Cabinet; and

            (b)        following which the Housing Portfolio Holder be authorised to confirm or    otherwise the formal appointment of Pellings LLP;

(3)        That Mears be appointed to act as Project Managers to deliver the relocation/co-location project, as a “Key Deliverable” under the terms of their existing Repairs Management Contract, at their tendered rate;

(4)        That the capital costs, estimated to be around £3.3million including construction costs and fees, associated with the new Repairs and Maintenance Hub be funded from the Housing Revenue Account (HRA);

(5)        That a Supplementary Capital Estimate in the sum of £300,000 to cover fees and works in 2015/16 be recommended to the Council for approval, with the balance of £3million being included in the Capital Programme for 2016/17;

(6)        That the required HRA funding be provided through either revenue contributions to capital outlay (RCCO) and/or further borrowing from the Public Works Loan Board (PWLB);

(7)        That the Director of Resources be authorised to determine:

            (a)        the most appropriate form of capital funding; and

            (b)        if further borrowing was required then the most appropriate PWLB loan to secure and obtain;

(8)        That the transfer of the land from the General Fund to the Housing Revenue Account be recommended to the Council for approval, with an appropriate adjustment being made in the balances due between the funds;

(9)        That a planning application be submitted for the new Repairs and Maintenance Hub; and

(10)      That the provision of land for a play area to be provided by North Weald Bassett Parish Council not be included as part of the development, unless a formal request was received from the Parish Council in advance of the submission of the planning application.

Reasons for Decision:

In July 2014 the Cabinet agreed the Heads of Terms for a development agreement for the development of a site in St John’s Road, Epping, which included the current Council’s Housing Repairs Depot, for the purpose of redeveloping the site to create a food store, car park, small cinema, restaurants, ancillary commercial uses and residential development. This required the existing Housing Repairs Depot to be vacated at relatively short notice.

Other Options Considered and Rejected:

To not use Council-owned land, which could be used for another purpose, and to buy land elsewhere in the District to construct a new building. However, the capital costs would be far higher and, in any event, Officers were not aware of any other suitable sites.

To not use the brownfield site in North Weald, and use an alternative Council-owned site elsewhere in the District. However, no suitable site had been identified, and construction needed to commence quickly.

To not construct a new Repairs and Maintenance Hub and instead use an existing building, either in the Council’s ownership or rented from a private landlord. However, in the last 3 years, very few buildings hade been identified and those that had been were not considered suitable.

To fund the construction from the General Fund, as was the case for all other Council assets, and for the HRA to pay a contribution to the General Fund by way of rent. However, there were insufficient General Fund capital resources available in the short and medium turn after taking account of all other commitments the Council had in place.

To not waive Contract Standing Orders and appoint Pellings LLP and appoint the company or an alternative architect and other necessary Building Consultants, either from the Essex Procurement Hub or through a competitive tender exercise instead. However, that would cost considerably more or add a considerable delay to the project, which required a fast track approach; there would also be an additional cost to undertaking a procurement exercise.