Agenda item

1.            That the Strategic Director - Services be authorised to sign up to and use the Southern Construction Framework to seek Tenders to enter into a contract with a building contractor for the construction of the Winnall Flats site.

2.            That price/quality split for the purposes of the mini competition tender to be carried out under a Framework be 50/50.

3.            That the Strategic Director - Services be authorised to prepare and submit a planning application to the Statutory Planning Authority to obtain planning permission for the project.

4.            That public consultation be approved, which includes an advertisement, of the intention to proceed to dispose of the Open Space land.

5.            That disposal of the land and built units to Pocket Living as the preferred partner to acquire the discounted market sale flats be approved, subject to Pocket Living achieving best consideration.

6.            That the Strategic Director – Services be authorised in consultation with the Service Lead to seek the consent of the Secretary of State for Housing, Communities and Local Government for the disposal of the land referred to in recommendation 5, should it not be possible after making enquiry with MHCLG to rely on the 2013 General Consent.

7.            That the Strategic Director – Services be authorised to approve the appropriation of the land to be built upon from HRA to planning purposes or general fund if required.

8.            That the expenditure on the pre-construction costs of up to £800,000 in accordance with Financial Procedure Rule 7.4 financed by Housing Revenue Account Contributions to Capital be authorised and that this work proceeds at a financial risk to the Council.

9.            That it be agreed that a Full Business Case report is brought back to Cabinet in 2021 when the final tender price is known to seek authority to enter into a build contract with the successful Tenderer and the draft contractual heads of terms with Pocket Living.

(CAB3198 and audio recording refers)

Councillor Learney welcomed the proposals which would provide 75 new units of housing by working in partnership with Pocket Living.  Further consultation would be undertaken as part of the planning process.  The final decision as to whether the project would be financed through the new Housing Company or through the Housing Revenue Account would be taken at a later date.

As representatives of TACT, Monica Gill and Michael Fawcitt were invited to the table to participate in discussion regarding this item.  Mrs Gill stated that the proposals were generally supported by TACT however they requested that one of the blocks be designated for social housing.  Mr Fawcitt noted that there were three possible models for revenue for the new development and TACT would wish to know how models other than social housing could be of benefit for tenants.

Councillor Learney confirmed that the TACT request for one block to be social housing would be considered further. 

At the invitation of the Leader, Councillor Lumby addressed Cabinet as summarised briefly below:

Supported the proposals and requested that the decision as to price/quality split was a Member rather than an Officer decision.

The Chief Executive advised that the council procurement rules stipulated a usual price/quality split of 60/40 but this could be amended if there was good rationale for doing so.  The report proposed that a 50/50 split on price/quality be applied.   Cabinet noted that the Southern Construction Framework (SCF) was procured via a process whereby firms and prices for works to be undertaken are accepted at the time of acceptance onto the Framework. The usual price/quality split on the SCF is 30/70. As the Council proposed to use the SCF to enable progression of the Winnall Flats Development, given the pre-accepted prices, cost was not as great a variable consideration as it would be should the Framework not be utilised but best value must still be achieved.  Therefore that a 50/50 split on price/quality was recommended.  Cabinet agreed to this approach.

Cabinet agreed to the following for the reasons set out above and outlined in the Report.

RESOLVED:

1.           That the Strategic Director - Services be authorised to sign up to and use the Southern Construction Framework to seek Tenders to enter into a contract with a building contractor for the construction of the Winnall Flats site.

2.           That price/quality split for the purposes of the mini competition tender to be carried out under a Framework be 50/50.

3.           That the Strategic Director - Services be authorised to prepare and submit a planning application to the Statutory Planning Authority to obtain planning permission for the project.

4.           That public consultation be approved, which includes an advertisement, of the intention to proceed to dispose of the Open Space land.

5.           That disposal of the land and built units to Pocket Living as the preferred partner to acquire the discounted market sale flats be approved, subject to Pocket Living achieving best consideration.

6.           That the Strategic Director – Services be authorised in consultation with the Service Lead to seek the consent of the Secretary of State for Housing, Communities and Local Government for the disposal of the land referred to in recommendation 5, should it not be possible after making enquiry with MHCLG to rely on the 2013 General Consent.

7.           That the Strategic Director – Services be authorised to approve the appropriation of the land to be built upon from HRA to planning purposes or general fund if required.

8.           That the expenditure on the pre-construction costs of up to £800,000 in accordance with Financial Procedure Rule 7.4 financed by Housing Revenue Account Contributions to Capital be authorised and that this work proceeds at a financial risk to the council.

9.           That it be agreed that a Full Business Case report is brought back to Cabinet in 2021 when the final tender price is known to seek authority to enter into a build contract with the successful Tenderer and the draft contractual heads of terms with Pocket Living.