Matters referred to the Cabinet (whether by the Policy and Performance Advisory Committee or by the Council) for reconsideration by the Cabinet in accordance with the provisions contained in the Policy and Performance Advisory Procedure Rules or the Budget and Policy Framework Procedure Rules set out in part 4 of the Council's Constitution.

HRA Capital Programme - Housing Delivery Update

Report of Call-in Panel held on 6 July 2020 (to follow)

To accept the following recommendation from the Call-in Panel held on 6 July 2020 for the Cabinet decision made at its meeting on 11 June 2020 in relation to the HRA Capital Programme – Housing Delivery Update report.

(1)  That should the Cabinet proceed with the revised scheme proposal for Saxonbury it considers the option of a fixed price contract with the chosen contractor.

Cabinet considered the report of the Call-in Panel in relation to the decision made by Cabinet at its previous meeting on the HRA Capital Programme – Housing Delivery Update report.

The report was presented by visiting member, Councillor Joe Miller, Chair of the Panel.

It was commented that advice was currently being sought with regards to the potential risk of delay to the delivery of the contract as a result of Covid-19.

Cabinet unanimously agreed to accept the Panel’s recommendation and this was detailed below.

Resolved:

To accept the following recommendation from the Call-in Panel held on 6 July 2020 for the Cabinet decision made at its meeting on 11 June 2020 in relation to the HRA Capital Programme – Housing Delivery Update report.

(1)  That should the Cabinet proceed with the revised scheme proposal for Saxonbury it considers the option of a fixed price contract with the chosen contractor.

Reason for decision:

To provide financial assurance to the Council and to mitigate any changes in internal or external conditions.

Report of Director of Regeneration and Planning

Lead Cabinet member: Councillor William Meyer

(This report contains an exempt appendix. Any discussion of this must take place at item 13 following exclusion of the public.)

(Key decision):

(1) To approve the S106 acquisition proposals outlined within Appendix A (exempt) enclosed as part of the HRA Capital Programme for housing delivery subject to contract, valuation, legal advice and the usual due diligence. The overall project costs will be covered by a combination of sales receipts, Right to Buy (RTB) receipts and borrowing as required in accordance with the HRA Business Plan

(2) To approve a waiver to the Contract Procedural Rules (CPR), as set out in Para. 2.4.1(a) of the CPR to allow the direct selection of the contractor(s) associated with any S106 proposals due to the developer(s) already owning the site(s) and being the only party with whom the Council could contract.

(3) To approve the revised scheme proposal for Saxonbury including the change in budget from £1.5m to £1.8m, the change in tenure and the use of RTB receipts to support the financial viability and delivery of new Council rented homes.

(4) To approve a waiver to the CPR, as set out in Para. 2.4.1(a) of the CPR to allow the direct selection of a main contractor for Saxonbury, due to the lack of 4 competitive tenders received in response to the Invitation to Tender.

(5) To authorise the Director of Regeneration and Planning to carry out all necessary actions to facilitate the proposals outlined at Recommendations 1) and 3) including feasibility, development and determining the terms of all necessary documentation and to subdelegate those actions as required. To also authorise the Director of Regeneration and Planning to authorise the signature of all necessary documentation to allow the purchase and development of the sites for residential housing as proposed and to let the homes to new tenants and dispose on shared ownership terms as required.

(6) To approve the increase to the existing feasibility revenue budget as implemented in June 2017 to a total amount of £350,000 to enable the development of the new housing delivery project pipeline as part of the HRA Capital Programme and to delegate authority to the Director of Regeneration and Planning to approve all expenditure, to be sub-delegated as required.

(7) To authorise and delegate authority to the Director of Regeneration and Planning, in consultation with the Lead Member for Housing and Chief Finance Officer, to carry out all necessary actions to progress and approve all acquisitions (including S106 acquisitions) as part of the HRA Capital Programme and to authorise the signature of all necessary documentation to allow the purchase(s) and further development of S106 sites subject to the development of a sound and financially viable business case presented in accordance with the HRA Business Plan and to let the homes to new tenants and dispose on shared ownership terms as required.

(8) To note the continued progress of the Council’s housing infills programme.

The Cabinet considered the report of the Deputy Chief Executive and the Director of Regeneration and Planning providing an update on the Housing Revenue Account (HRA) Capital Programme for housing delivery to bring forward new affordable homes to the District.

Referrals from an informal meeting of the Policy and Performance Advisory Committee (PPAC), held on 2 June 2020 was presented by Councillor Joe Miller, Chair of PPAC and considered by Cabinet during their discussions.

Councillor MacCleary responded to the recommendations made by PPAC. In addressing recommendations (2) and (3) it was clarified that Lewes Town was a difficult location to deliver affordable homes but with now certainty over costs, it is financially viable to proceed with this important scheme. It was believed that investing in affordable homes at Saxonbury would be cost effective. In terms of PPAC’s recommendation to re-tender, Councillor MacCleary responded that the current tender was in line with market expectations and any further delay would increase the risk of costs rising.

In addressing recommendation (4) from PPAC, Councillor MacCleary advised that Cabinet were keen to empower officers to deliver within the framework set however he would ask officers to review the Officer Scheme of Delegation. Existing safeguards were already in place within the Council’s Contract Procedure Rules.

Finally in addressing recommendation (5) from PPAC, Councillor MacCleary concluded that Directors could only exercise delegation, in consultation with the Lead member for Housing and Chief Finance Officer. The recommendation as set out in the report provided financial and political oversight to progress the scheme in a timely matter.

Visiting member and Leader of the Opposition, Councillor Linington addressed the Cabinet in relation to officer recommendation (3) and asked that they revisit the proposal for Saxonbury.

Cabinet also considered the exempt appendix that accompanied the report but did not make reference to the named sites contained in the proposals.

The Cabinet agreed to unanimously accept the officer recommendations as set out in the report.

Resolved (Key decision):

(1) To approve the S106 acquisition proposals outlined within Appendix A (exempt) enclosed as part of the HRA Capital Programme for housing delivery subject to contract, valuation, legal advice and the usual due diligence. The overall project costs will be covered by a combination of sales receipts, Right to Buy (RTB) receipts and borrowing as required in accordance with the HRA Business Plan.

(2) To approve a waiver to the Contract Procedural Rules (CPR), as set out in Para. 2.4.1(a) of the CPR to allow the direct selection of the contractor(s) associated with any S106 proposals due to the developer(s) already owning the site(s) and being the only party with whom the Council could contract.

(3) To approve the revised scheme proposal for Saxonbury including the change in budget from £1.5m to £1.8m, the change in tenure and the use of RTB receipts to support the financial viability and delivery of new Council rented homes.

(4) To approve a waiver to the CPR, as set out in Para. 2.4.1(a) of the CPR  ...  view the full minutes text for item 78