Agenda item

The Cabinet is requested to consider the agenda report and its appendix in the agenda supplement and to make the resolutions and also the recommendation to the Council which are set out below:

A – RESOLUTIONS BY THE CABINET

(1)  That the Project Initiation Document (PID) and timescales set out in the appendix to the agenda report be approved.

(2)  That the preferred option, option 3 set out in section 8 of the PID, be progressed to detailed design stage and a planning application being submitted and, following planning approval, the scheme design be finalised ready for invitation of tenders. 

(3)  That the Director of Housing and Communities be authorised to conduct the procurement, invite tenders and take all steps up to, but not including, award of contract.

(4)  That the contactor bids be presented to the Cabinet following the receipt and analysis of tenders for award of contract.

B – RECOMMENDATION TO THE COUNCIL

That the allocation of £102,000 from the Housing Investment Reserve be approved to enable the scheme design to be finalised and submitted for planning approval.

RESOLVED

(1)  That the Project Initiation Document (PID) and timescales set out in the appendix to the agenda report be approved.

(2)  That the preferred option, option 3 set out in section 8 of the PID, be progressed to detailed design stage and a planning application being submitted and, following planning approval, the scheme design be finalised ready for invitation of tenders. 

(3)  That the Director of Housing and Communities be authorised to conduct the procurement, invite tenders and take all steps up to, but not including, award of contract.

(4)  That the contactor bids be presented to the Cabinet following the receipt and analysis of tenders for award of contract.

RECOMMENDATION TO THE COUNCIL

That the allocation of £102,000 from the Housing Investment Reserve be approved to enable the scheme design to be finalised and submitted for planning approval.

The Cabinet received and considered the agenda report and its appendix, the Project Initiation Document (PID), in the main agenda supplement.

This item was presented by Mrs J Kilby (Cabinet Member for Housing Services).

Miss H Nicol (Housing Delivery Manager) and Mrs L Grange (Divisional Manager Housing) were in attendance for this matter.

Mrs Kilby said that during the preceding six months there had been an increase of more than 13% in the number of people who were homeless contacting CDC, which included many families. The existing emergency accommodation had been operating at full capacity for the past year and there had been problems trying to find suitable accommodation for larger families, with the consequent unfortunate result that it had been necessary to resort to bed and breakfast accommodation, often outside Chichester District. This was far from ideal for those involved, especially for families with young children. In December 2017 CDC had purchased a property adjacent to its existing temporary accommodation, since when it had been bought back into use to provide four one-bedroom flats as temporary accommodation while a full options appraisal to evaluate the most effective use of the property was undertaken. A budget of £15,000 had been approved for the full options appraisal and also a further £10,000 to progress the preferred option to the planning application stage. Since the Cabinet’s approval of the initial PID in February 2017, it had become apparent that there were greater development opportunities on the site than originally anticipated. Following a full options appraisal it was proposed to demolish and rebuild the existing building and to provide a flexible property asset which could provide up to 21 units of additional short-term accommodation for homeless families and single vulnerable people. As a result, consultancy costs to bring a scheme to planning permission had risen to reflect the size and scope of the development: now £40,000 rather than the original estimate of £10,000. The cost to finalise the design after a grant of planning permission was estimated at £72,000. Accordingly it was proposed that the Council should be asked to approve the allocation of £102,000 from the Housing Investment Reserve, which would enable the scheme design to be fully developed to conduct the procurement and take all steps including seeking tenders up to the award of contract stage. Contractors’ bids would be presented to the Cabinet following their receipt and analysis for an award of contract to be agreed. At that stage approval would be sought from the Council for funds to cover the costs of the redevelopment. The preferred option set out in the PID would give CDC an opportunity to provide many more units of flexible temporary accommodation, making it easier to house larger families. This project would make a real long-term difference to homeless families in Chichester District.

Miss Nicol and Mrs Grange did not add to Mrs Kilby’s presentation. 

Members expressed their full support for this initiative to alleviate homelessness, including the provision of flexible units for families of different sizes.

Mrs Grange, Miss Nicol and Mrs Kilby responded to members’ questions and comments on points of detail with regard to:

·       The situation if the grant application to Homes England (HE) (para 8.2 of the report) was not awarded: HE had indicated that the application had a very good prospect of success but if not the scheme was nonetheless financially viable.

·       The contract with the developer would contain appropriate terms such as penalty and compensation clauses to ensure delivery of the redevelopment project in accordance with the timescale and to protect CDC’s interests.

·       The property would not be available to accommodate homeless individuals and families during the reconstruction period of November 2019 to October 2020 (stage 4 in section 10 of the PID). The timescale had been set as realistically as possible; it might be possible to advance the scheduled start date of November 2019 but not by very much.     

·       The risk of future increases in homelessness and how to extend homelessness provision would continue to be addressed as now via the close working relationship between CDC, its registered housing partners and Stonepillow. CDC did a lot more than many local authorities to provide for homeless people and it ensured wherever possible that families were not separated.

Mr A Dignum (Leader of the Council and Cabinet Member for Growth and Place) allowed Mrs L C Purnell (Selsey North), who was present as an observer, to address the Cabinet briefly. She commended the project and emphasised CDC’s very good track record in preventing homelessness as much as accommodating those who were homeless. Mr Dignum endorsed the importance of that point. 

Decision

The Cabinet voted unanimously to make the resolutions and the recommendation set out below.    

RESOLVED

(1)  That the Project Initiation Document (PID) and timescales set out in the appendix to the agenda report be approved.

(2)  That the preferred option, option 3 set out in section 8 of the PID, be progressed to detailed design stage and a planning application being submitted and, following planning approval, the scheme design be finalised ready for invitation of tenders. 

(3)  That the Director of Housing and Communities be authorised to conduct the procurement, invite tenders and take all steps up to, but not including, award of contract.

(4)  That the contactor bids be presented to the Cabinet following the receipt and analysis of tenders for award of contract.

RECOMMENDATION TO THE COUNCIL

That the allocation of £102,000 from the Housing Investment Reserve be approved to enable the scheme design to be finalised and submitted for planning approval.