Issue - meetings

Report of the Director for Placemaking and Housing. To be introduced by the Cabinet Member for Housing Services, Private Renters and Planning.

The report will set out the operation and maintenance contract for the localised communal heating systems also known as energy networks to individual properties and estates, and a separate dormant contract subject to setting up an energy company.

The Cabinet Member Housing Services, Private Renters, and Planning introduced the report which sought approval of operation and maintenance contracts for its portfolios of current and future heating systems provided through DENs.

The Cabinet Member outlined the following:

-       The Council required the support of specialist contractors to deliver operational maintenance and repairs to communal heating systems (also known as localised, decentralised energy networks) programmes. These programmes were critical to the comfort and safety of residents, supporting Haringey in ensuring it meets its duties to provide safe and decent homes for its tenants.

-       Maintenance of these systems required a high level of competency and specialist knowledge as well as access to specialist parts and supply chain. Quality and consistency in service provision was a priority, however the market for provision of this comprehensive service is currently limited.

-       The current arrangements relied on a number of different providers operating under ad-hoc arrangements which are vulnerable to changes in provision and performance as a result of having no long-term contract and/or commitment in place.

-       The Council cannot allow this service to fail due to lack of suitable contracts and competent resources, which at this time must be outsourced. By ensuring there is a suitable long-term supplier in place, the Council would demonstrate commitment to improving the quality of housing provided.

In response to questions from Councillor Cawley – Harrison, the following was noted:

-       The efficiencies in the approach taken to procure two ‘sister’ contracts, was explained to be more attractive proposal to the market given provision of this comprehensive service was currently limited.

-       The contract cost was subsumed in rent costs and not an additional service charge.

-       Residents would continue to report any communal heating issues through the Council process and not through the contract provider.

 Further to considering exempt information at item 23,

RESOLVED

1. To note the contents of Appendix A Exempt Report, and

2. To approve the preliminary award of the main (Housing) call-off contract to Contractor A for the operation and maintenance of existing and future DENs servicing HRA properties, subject to S20 for a maximum value of £10.2m for a 5-year, plus 5-year contract term, (Contract 1) and

3. To approve the preliminary award of a second call-off contract, also to

Contractor A, that would remain dormant, and will only become active if the Council decides to create an Energy Services Company, ESCo, (Contract 2) (see also 4.6 and 6.11 below) but is for maximum value of £10.6m and would co-terminate with contract 1 at the end of its term. Contract 2 will remain dormant subject to any future Cabinet decision whether or not to set up an ESCo. If the ESCo were set up, Contract 2 would be available to be Novated by the Council to the ESCo and then activated.

4. To Delegate authority to the Director of Placemaking & Housing, in

consultation with the Head of Legal Services, to finalise and award both of the contracts following completion of the Section 20  ...  view the full minutes text for item 44