Issue - meetings

As per item 12.

At this point in the meeting, Cllr Chandwani left the room.

The Cabinet noted the exempt information and resolutions as per minute 734.

Cllr Chandwani did not take part in the discussion or voting on this item and re-entered the room at the end of the item.

Report of the Director of Finance. To be introduced by the Cabinet Member for Finance and Transformation.

The Council as landlord is responsible under the leases of all properties sold under Right to Buy legislation for insuring the building in which the property is situated. The Council intends to enter into an agreement for the provision of buildings insurance covering all leasehold properties sold (or to be sold) by the Council under Right to Buy legislation. The insurance premium is then recharged to leaseholders as part of the service charge payable under the terms of their leases.

At this point in the meeting, Cllr Chandwani left the room.

The Cabinet Member for Finance and Transformation introduced the report which sought approval to award a contract for the provision of the Leaseholders’ Building Insurance Service from 1April 2022 for a period of five years with a break clause at the end of year three and year four.

Following consideration of the exempt information, it was

RESOLVED

In accordance with Contract Standing Order 9.07.1(d), to approve the award of the contract for the provision of the Leaseholder Building Insurance Service from 1 April 2022 for a period of five years with a break clause at the end of year three and year four to Insurer 1 (identified in Appendix A to the report).

Reasons for decision

The current insurance contract commenced on 1 April 2017 and was based on a 3-year agreement, with an option to extend by a further 2 years, expiring on 31st March 2022. It is necessary to ensure that the new contract is in place from 1 April 2022, to avoid any gap in insurance cover for the Council and leaseholders.

Alternative options considered

The Council as the freeholder of the property it owns is required to put appropriate insurance arrangements in place. Procurement of stand-alone cover for leaseholder insurance was carried out via Open tender process.

Historically, leaseholder insurance tender was run utilising the Crown Commercial Services framework (Pro 5 Insurance Framework) but this resulted in reduced competition compared to tenders in recent years. As a result, for this tender, the Council decided to use the Open tender process.

Cllr Chandwani did not take part in the discussion or voting on this item and re-entered the room at the end of the item.