Decision details

To agree the approach to the new programme.

(1)        That a suitably qualified organisation be appointed to provide a House Building Development Agency Service for the Council, including all development and project management services, and the provision of all professional building services, including (but not exclusively) architectural, employer’s agency, quantity surveying, cost consulting, planning supervision, engineering and surveying, but excluding works construction;

(2)        That a Development Agent be appointed by the Cabinet:

(a)        following a competitive tender process using the EU OJEU Restricted Procedure procurement process;

(b)        based on the most economically advantageous tender (in terms of price and quality) received from at least five suitably qualified organisations, shortlisted through a Pre-Qualification Questionnaire (PQQ) process, in accordance with pre-determined evaluation criteria;

(c)        based on criteria used for both the PQQ stage and Tender stage previously approved by the Cabinet, on the recommendation of the Housing Portfolio Holder;

(d)        having regard to the agreed criteria and on the recommendation of a Selection Panel chaired by the Housing Portfolio Holder, and also comprising the Chairman of the Housing Scrutiny Panel, Director of Housing and Asst. Director of Housing (Property); and

(e)        for a four-year period, with options to extend the contract for three further individual years;

(3)        That the Essex Procurement Hub be requested to undertake the EU procurement process for the appointment of the Development Agent, on behalf of the Council;

(4)        That a suitably experienced Housing Development consultant be appointed to undertake the appointment process for the Development Agent, in liaison with the Essex Procurement Hub, funded from within the existing resources of the Housing Revenue Account’s (HRA) Housing Feasibilities Budget;

(5)        That, through the contract with the Development Agent, all the Development Agent’s consultants be required to provide the Council with collateral warranties, as a safeguard to enable the Council to take legal action against a consultant directly if problems arose in the future due to negligence;   

(6)        That the evaluation of PQQs and tenders be undertaken by the Housing Portfolio Holder, Officers and the Housing Development consultant, in accordance with the pre-determined and approved evaluation criteria;

(7)        That the Housing Portfolio Holder be authorised to agree any other aspects of the appointment process for the Development Agent, not covered by this report or decisions;

(8)        That, once the initial desktop development assessments of garage and other housing sites had been completed by Officers, and the HRA Financial Plan agreed, reports be submitted to the Cabinet on a proposed Council House Building Development Programme, based on the completion of around 20 new affordable homes per annum, and seeking approval to undertake development appraisals and seek planning permission for specific sites;

(9)        That, once the Cabinet had approved the House Building Programme, further reports be submitted to the Cabinet on the required budgetary provision for the Housing Capital Programme; 

(10)      That, in the meantime, appropriate capital provision for the House Building Programme be included within the Indicative HRA Financial Plan, to be considered by the Cabinet at its meeting on 5 December 2011; 

(11)      That appropriate revenue provision be made within the HRA from 2012/13, to fund the associated revenue costs of the House Building Programme, including a budget for abortive fees for developments that did not proceed;

(12)      That Affordable Rents (not Social Rents) be charged for the completed Council properties, in accordance with the Government’s Affordable Rents Framework, with rent levels to be charged for individual properties agreed as part of development appraisals;

(13)      That all financial and development appraisals, any borrowing requirements and the required Housing Capital Programme funding for proposed “development packages” by the Council be approved by the Cabinet on an individual basis;

(14)      That such development packages be funded from the following sources (with full details to be set out in the development appraisals for individual schemes approved by the Cabinet), on the basis that the Council House Building Programme was self-funded, without any financial support from the General Fund:

(a)        HRA surpluses;

(b)        Homes & Communities Agency (HCA) funding (where possible);

(c)        Section 106 Agreement contributions from developers in lieu of on-site affordable housing provision;

(d)        Borrowing (if necessary);

(e)        Cross-subsidy from the sale of other development sites within the House Building Programme on the open market if necessary; and/or

(f)         Capital receipts from future Right to Buy sales, if the Government   introduced its recently-announced policy to increase discounts under the Right to Buy, and replace each property sold with a new affordable home;

(15)      That, once the Development Agent had been appointed, a Development Strategy be formulated setting out the proposed approach to planning and delivering the House Building Programme, for adoption by the Cabinet;

(16)      That a new part-time Senior Housing Officer (Development) post (18 hours per week) be established once the Development Agent had been appointed and appropriate budget provision made within the HRA for 2012/13 when the salary grade had been determined;

(17)      That, once appointed, development partner status for the Council be sought by the selected Development Agent from the HCA, and the Pre-Qualification Questionnaire be completed on behalf of the Council; and

(18)      That the appointed Development Agent be required to procure contractors to construct the properties within the development packages on behalf of the Council, in accordance with the Council’s Contract Standing Orders and EU procurement requirements (if necessary).