Agenda item

(Housing Portfolio Holder) To consider the attached report (C-066-2016/17).

(1)        That, subject to the receipt of planning permission, a Pilot Scheme be undertaken at Norway House, North Weald (the Council’s Homeless Persons Hostel) to provide three modular units of temporary accommodation for six single vulnerable homeless people, with shared kitchen facilities, as an alternative to expensive and less desirable bed and breakfast accommodation, together with additional storage facilities and some replacement car parking provision;   

(2)        That authorisation be given to the submission of a detailed planning application for the proposed provision;

(3)        That Section 6.1 of the Council’s Procurement Rules be waived to enable Mac Container Company Ltd, a local supplier of modular accommodation based at North Weald Airfield, to be the Council’s Nominated Supplier of the accommodation units;

(4)        That competitive tenders be invited from contractors based on Constructionline to supply and install the modular accommodation (supplied by the Council’s Nominated Supplier) and to undertake all ground and infrastructure works, through a JCT Intermediate Form of Contract;

(5)        That the estimated £345,000 cost of the Pilot Scheme be funded from the existing Capital Programme budget for the Council Housebuilding Programme, which was currently subject to a temporary moratorium, with 30% of the costs funded from 1-4-1 Receipts;

(6)        That revenue budgetary provision of £5,000 per annum be made (funded from HRA Balances for the first year and incorporated within the HRA Budget in future years) to fund the appointment of a security company to provide security officers to attend Norway House, on an ad-hoc basis as and when required, in order to assist, support and protect staff and other residents on occasions when they feel at risk from residents, particularly out of normal office hours and when lone working;

(7)        That, subject to the success of the Pilot Scheme, consideration of whether or not, and how and where, the provision of temporary modular accommodation could be deployed in the District on a wider scale in the future be undertaken by the Housing Portfolio Holder: and

(8)        That a review of the Pilot Scheme be undertaken after one year, starting from when the pods are first inhabited.

The Housing Portfolio Holder presented a report on a proposed pilot scheme for the provision of modular temporary accommodation for single, vulnerable homeless people at Norway House, North Weald.

The Leader of Council and the Housing Portfolio Holder were interested in considering the feasibility of providing temporary modular accommodation (referred to in the report and these minutes as “pods”) to provide temporary accommodation for homeless households, at a lower cost than traditional-built, permanent accommodation and than the cost of placing homeless households in expensive bed and breakfast hotels.

The Portfolio Holder advised that the report proposed that a Pilot Scheme be provided on an identified site at Norway House, North Weald comprising of 3 pods which would accommodate  6 single vulnerable people with shared kitchens, together with a storage container at a current total estimated cost of around £345,000, with 30% of the costs funded from some of the Council’s unallocated 1-4-1 Receipts.

The Portfolio Holder stated that based on the Council’s £8,280 per person per annum loss of housing benefit subsidy as a result of providing housing benefit to a household in B&B, and taking account of the licence charge to be made for the pods, the payback period for providing one pod would be around 5.3 years (or 3.7 years on the basis that the 1-4-1 Receipts that it was proposed would fund 30% of the costs would otherwise be lost to the Council).

The Portfolio Holder highlighted that there were concerns raised about the heightened risk to staff and other residents about increasing the number of occupants at Norway House with single vulnerable people. A number of ways of mitigating these risks were proposed, including the appointment of a private security company to provide security officers to attend Norway House when required, for which a small budgetary provision was required and selecting appropriate, lower risk, residents from the pool of single vulnerable people in bed and breakfast accommodation at any one time.

In response to questions from the Members present, the Portfolio Holder stated that the single vulnerable homeless people would have support from Social Services and the Mental Health Team when required. She also assured Members that if the budget of £5,000 for the security company was not enough, then further allocation would be made available if needed.  She also acknowledged that a review of the Pilot Scheme should be undertaken after one year, starting from when the pods were first occupied.

Decision:

(1)        That, subject to the receipt of planning permission, a Pilot Scheme be undertaken at Norway House, North Weald (the Council’s Homeless Persons Hostel) to provide three modular units of temporary accommodation for six single vulnerable homeless people, with shared kitchen facilities, as an alternative to expensive and less desirable bed and breakfast accommodation, together with additional storage facilities and some replacement car parking provision;   

(2)        That authorisation be given to the submission of a detailed planning application for the proposed provision;

(3)        That Section 6.1 of the Council’s Procurement Rules be waived to enable Mac Container Company Ltd, a local supplier of modular accommodation based at North Weald Airfield, to be the Council’s Nominated Supplier of the accommodation units;

(4)        That competitive tenders be invited from contractors based on Constructionline to supply and install the modular accommodation (supplied by the Council’s Nominated Supplier) and to undertake all ground and infrastructure works, through a JCT Intermediate Form of Contract;

(5)        That the estimated £345,000 cost of the Pilot Scheme be funded from the existing Capital Programme budget for the Council Housebuilding Programme, which was currently subject to a temporary moratorium, with 30% of the costs funded from 1-4-1 Receipts;

(6)        That revenue budgetary provision of £5,000 per annum be made (funded from HRA Balances for the first year and incorporated within the HRA Budget in future years) to fund the appointment of a security company to provide security officers to attend Norway House, on an ad-hoc basis as and when required, in order to assist, support and protect staff and other residents on occasions when they feel at risk from residents, particularly out of normal office hours and when lone working;

(7)        That, subject to the success of the Pilot Scheme, consideration of whether or not, and how and where, the provision of temporary modular accommodation could be deployed in the District on a wider scale in the future be undertaken by the Housing Portfolio Holder: and

(8)        That a review of the Pilot Scheme be undertaken after one year, starting from when the pods are first inhabited.

Reasons for Decision:

The Council was experiencing an increasing homelessness problem, with increased numbers of households having to be accommodated in temporary accommodation.  The proposed Pilot Scheme would provide an alternative to accommodating single vulnerable homeless people in expensive bed and breakfast accommodation.

Other Options Considered and Rejected:

The main alternative options appear to be:

(a)        Do not undertake a Pilot Scheme – but this would not assist with alleviating the need for additional temporary accommodation, or with reducing the cost of accommodating households in bed and breakfast accommodation.

(b)        Provide more permanent, traditional-built temporary accommodation on the identified site - however, this would cost more to provide.

(c)        Provide more pods as part of the Pilot Scheme – however, there werre no other suitable sites at Norway House.

(d)        Provide less pods as part of the Pilot Scheme – however, this would reduce the provision of additional temporary accommodation and the savings from not using bed and breakfast accommodation, thereby resulting in reduced cost-effectiveness of the Pilot Scheme.

(e)        Do not nominate Mac Container Company Ltd as the Council’s Nominated Supplier – however, this would result in significant officer time and delay in order to seek competitive tenders; in any event, the Procurement Rules support the use of local suppliers and contractors where appropriate.

(f)        Provide pods on another Council-owned site, instead of Norway House – however, it was suggested that Norway House was a suitable location for the Pilot Scheme.

(g)        Accommodate homeless families in the pods, instead of single vulnerable homeless people sharing – however, this would not reduce the use or cost of bed and breakfast accommodation.

(h)        Do not provide a revenue budget to appoint a security company – however, this was considered essential

(h)        Fund 70% of the capital costs of the provision from general capital receipts – although this would reduce the cost to the HRA, it would utilise capital receipts that could otherwise be used for other (non-housing) Council capital projects.