Agenda item

A report from the Executive Director of Regeneration and Environment will be published as soon as possible. (Report No.24, agenda part two also refers) (Key decision – reference number 4298)

(Report No.21)

(8.45 – 8.50 pm)

This report was considered following an adjournment of the Cabinet meeting to allow Members sufficient time to review the report following its circulation at the meeting. Councillor Taylor apologised for the late circulation of the report. All other items on the part one agenda were considered before the adjournment of the meeting.

Councillor Ahmet Oykener (Cabinet Member for Housing and Housing Regeneration) introduced the report of the Executive Director of Regeneration and Environment (No.21).

NOTED

1.               That Report No.24 also referred as detailed in Minute No.18 below.

2.               Councillor Oykener set out in detail the summary of the issues to date and sequence of events, and the proposals for moving forward as detailed in the report. Members were advised of the extensive work and negotiations which had been undertaken to reach this stage and the complexities of the decisions required.

3.               In the light of the events outlined in the report, a review would be undertaken of the use of delegated authority powers in the future. The review would ensure that lessons were learnt in going forward.

4.               In response to questions raised by Councillor Orhan on the reasons for Climate Energy Homes entering into administration in December 2015, Councillor Oykener outlined the impact and detail of the decision of the Government at that time to withdraw renewable energy grants and the impact that this had had on Climate Energy Homes and other companies. It was noted that the Government had not provided sufficient notice of this decision. Councillor Oykener outlined in detail the implications that this had had within Enfield.

5.               In the light of the events detailed in the report, Councillor Oykener outlined the work that had been undertaken in seeking an acceptable way forward. Extensive negotiations and due diligence work had been carried out.

6.               Councillor Sitkin outlined the volatile nature of the construction industry and the need to manage risks whilst continuing to undertake the work required.

7.               Councillor Orhan whilst recognising the volatile nature of the construction industry reiterated her concerns regarding the negative impact of the Government’s change in policy with regard to energy efficiency funding.

8.               Councillor Smith expressed his concern at the late circulation of the report and the delay which had been experienced in moving forward.

Alternative Options Considered: NOTED, the detailed alternative options that had been considered as set out in full in section 4 of the report. Having considered the financial implications of the various options set out in the report, they had been discounted on the basis that they could not achieve a financially viable scheme and would result in significant further losses to the Council.

DECISION: The Cabinet agreed

1.               To recommend to Council to approve the additional budget as set out in the part 2 report (Report No.24, Minute No.18 below refers) to complete the two sites with Kier as set out in Report No.24 and terminate the Development Agreement on terms including to complete Phase 1 for the additional sums set out in Report No.24.

2.               To delegate authority to the Executive Director of Regeneration and Environment and the Executive Director of Finance, Resources and Customer Services to conclude the details of the termination agreement referred to in 1 above. This would take into consideration the revised fixed price contract sum for partial completion of the Development Agreement in respect of completing 47 homes on three sites at St. Georges, Parsonage Lane and Tudor Crescent only (Phase 1) as part of a negotiated commercial settlement.

3.               To recommend to Council, subject to the Development Agreement being terminated with Kier, to approve the recommended procurement options as set out in Report No.24, Minute No.18 below refers, for Phase 2 (Holtwhites Hill, Jasper Close, Forty Hill and Lavender Hill).

4.               To recommend that Council approves the additional budget required for Phase 2, as set out in Report No.24, Minute No.18 below refers.

RECOMMENDED TO COUNCIL

1.       To approve the additional budget as set out in the part 2 report (Report No.24, Minute No.18 below refers) to complete the two sites with Kier as set out in Report No.24 and terminate the Development Agreement on terms including to complete Phase 1 for the additional sums set out in Report No.24.

2.       Subject to the Development Agreement being terminated with Kier, to approve the recommended procurement options as set out in Report No.24, Minute No.18 below refers, for Phase 2 (Holtwhites Hill, Jasper Close, Forty Hill and Lavender Hill).

3.       To approve the additional budget required for Phase 2, as set out in Report No.24, Minute No.18 below refers.

Reason: NOTED, the detailed reasons for the recommendations as set out in section 5 of the report.

(Key decision – reference number 4298)

At this point in the meeting, Members agreed the resolution for the exclusion of the press and public to enable the consideration of the part two report, Minute Nos. 16 and 18 below refer.