Issue - meetings

Bromley’s formal contract for the procurement and management of private sector leased properties and management of Council owned temporary accommodation, which formed an important part of the Council temporary accommodation portfolio, was due to expire on 31^st March 2019. The contract allowed for a two year extension and permission was sought to utilise this extension, which would be cost neutral. 

The report had been scrutinised by Executive, Resources and Contracts PDS Committee at its meeting on 5^th September 2018; the PDS Committee had been concerned that there had been no opportunity for the report to be considered at a meeting of the Renewal, Recreation and Housing PDS Committee. The Leader reported that he had since seen correspondence between with the Chairman of the Renewal, Recreation and Housing PDS Committee and officers, accepting the explanation on grounds of urgency, as to why scrutiny at Executive, Resources and Contracts  PDS Committee, followed by the Executive, could suffice on this occasion.

Members raised concerns that the Council was too reliant on one provider of temporary accommodation. Officers reported that the private sector leasing market was small, but that Orchard and Shipman were now A rated, and there was an indemnity in place which helped to insure the Council against any potential financial loss.

RESOLVED that

(1) The contents of the report and the current action being taken to reduce the overall costs and improve the supply of Temporary Accommodation be noted.

(2) The proposal to utilise the extension option in the existing contract with Orchard and Shipman from 1^st April 2019 to 31^st March 2021 at an estimated gross value of £2.2m per annum be agreed; of this sum approximately £1m relates to the management fees for accommodation with the remainder passed directly to private landlords for the private rental charges.

(3) The Housing Division utilises the extension period to review the market in order to undertake a robust tendering process prior to the extension period expiring.

(4) It is noted that the Housing Division will continue to pursue cost effective block contracts for temporary accommodation both in private sector leasing and nightly paid accommodation (NPA).

(5) Authority be delegated to the Deputy Chief Executive and Executive Director Education, Care and Health Services in consultation with Director of Commissioning, Director of Finance, Director of Corporate Services and the Renewal, Recreation and Housing Portfolio Holder to enter into block booking contracts and lease arrangements where offered to the Council where such arrangements provide a saving against current nightly paid rates.