Issue - meetings

(1) For the current Private Sector and Housing contract with Orchard & Shipman, the remaining one-year extension for the period 1 April 2023 to 31 March 2024 at an estimated value of £3m be authorised.

(2) For future Private Sector Leasing arrangements with Orchard & Shipman:

(i)  This element be separated from the Housing Management arrangements (as described in paragraphs 3.8 to 3.17 in the report) and the award of a further contract be authorised, via exemption to competitive tendering (as set out in paragraphs 3.48/49), to commence from 1 April 2024 for a period of ten years at an estimated value of £3m per annum (whole life value of £30m).

(ii)  Authority be delegated to the Director of Housing, Planning, Regeneration & Property to vary the contract to secure additional leases/properties from the provider subject to due diligence.

(3) For future Housing Management arrangements:

(i)  Proceeding to procurement be approved in principle via a compliant process, as set out in paragraphs 3.18-3.22 and 3.48 of the report for Housing Management provision for a contract to commence from 1 April 2024 for a fifteen-year term (with the option to extend for a further five years) at an estimated annual value of up to £2m (estimated whole life value of £40m).

(ii)  It is noted that a Gateway 1 report setting out the full detail of the proposed procurement will be presented for decision in early 2023, prior to commencing a tender process.

(iii)  The drawdown £183k be agreed from the Housing Feasibility and Viability Fund earmarked reserve for the resources required in paragraphs 3.28 to 3.36 of the report.

(4) For the Beehive Scheme, the drawdown of £32k be agreed from the Housing Investment Fund earmarked reserve to procure specialist advice to determine options for the best mechanism for future management of the Beehive scheme, as set out in paragraphs 3.23 to 3.27 of the report.

Report HPR2022/050

The report outlined the Council’s current Private Sector Leasing and Housing Management Contract which was provided by Orchard & Shipman (Pinnacle) and set out the options for future procurement.

The current contract ended on 31^st March 2023. A further one-year extension option was available and approval for the extension was sought.

The report set out the commissioning intentions for this requirement beyond the extension period.  It recommended separating the contract into a distinct Private Sector Leasing contract and a separate Housing Management contract.  It recommended entering into a new contract for Private Sector Leasing via exemption to competitive tendering and to commence a compliant procurement process for the Housing Management requirement.

Given the complexities of being a Social Housing Provider and importance of the tender exercise the report referred to the resource requirements required to carry out this procurement exercise and where this would be funded from.

Further reports would come back to the Executive in 2023 as set out in the report, including a report on the skills and resources required for effective long-term management and operations of the Housing Revenue Account.

The report had been scrutinised by the Renewal, Recreation and Housing PDS Committee at its meeting on 4^th October 2022 and the Committee had supported the recommendations.

RESOLVED that

(1) For the current Private Sector and Housing contract with Orchard & Shipman, the remaining one-year extension for the period 1 April 2023 to 31 March 2024 at an estimated value of £3m be authorised.

(2) For future Private Sector Leasing arrangements with Orchard & Shipman:

(i)  This element be separated from the Housing Management arrangements (as described in paragraphs 3.8 to 3.17 in the report) and the award of a further contract be authorised, via exemption to competitive tendering (as set out in paragraphs 3.48/49), to commence from 1 April 2024 for a period of ten years at an estimated value of £3m per annum (whole life value of £30m).

(ii)  Authority be delegated to the Director of Housing, Planning, Regeneration & Property to vary the contract to secure additional leases/properties from the provider subject to due diligence.

(3) For future Housing Management arrangements:

(i)  Proceeding to procurement be approved in principle via a compliant process, as set out in paragraphs 3.18-3.22 and 3.48 of the report for Housing Management provision for a contract to commence from 1 April 2024 for a fifteen-year term (with the option to extend for a further five years) at an estimated annual value of up to £2m (estimated whole life value of £40m).

(ii)  It is noted that a Gateway 1 report setting out the full detail of the proposed procurement will be presented for decision in early 2023, prior to commencing a tender process.

(iii)  The drawdown £183k be agreed from the Housing Feasibility and Viability Fund earmarked reserve for the resources required in paragraphs 3.28 to 3.36 of the report.

(4) For the Beehive Scheme, the drawdown of £32k be agreed from the Housing Investment Fund earmarked reserve to  ...  view the full minutes text for item 65