Agenda item

A report from the Executive Director – Place is attached. Note: Restricted appendix containing exempt information also refers. (Key decision – reference number 5181)

(This item contains exempt information as defined in Paragraph 3 (information relating to the financial or business affairs of any particular person – including the authority holding that information) of Schedule 12A to the Local Government Act 1972, as amended).

Councillor Nesil Caliskan (Leader of the Council) introduced the report of the Executive Director Place seeking approval for the entry by Council into a framework agreement with selected contractors in relation to the delivery of a programme of strategic infrastructure works at Meridian Water.

NOTED

1.            In July 2018 the Cabinet had approved the scope of the Housing Infrastructure Fund scheme and a planning strategy for delivery.  In August 2019 the Council had been successful in obtaining £156m from Central Government for this work.

2.            The Council was now seeking approval to enter into a framework agreement with selected contractors to deliver the projects. 

3.            The Council would be forward funding the works which would then be reimbursed from the Housing Infrastructure Fund. Through the framework, the Council would also be able to call off contractors for other projects, not just those funded through the infrastructure fund. 

4.            Delegated authority would be subject to further assurances that decisions will be taken in consultation with Cabinet members. 

5.            The projects included flood alleviation schemes, bridges and roads which would open up opportunities for further housing development across the site.

6.            The money had to be claimed by March 2024. 

7.            The scheme would include green infrastructure, cycle lanes and bus connections, encouraging active travel.  There was commitment to improving accessibility for local residents.  Eight hectares of biodiverse park land was envisaged and thirty percent of development would be made up of quality green space.

8.            This was good news for the Edmonton area.

9.            Contractors would be on site in 2021.

Alternative Options Considered: NOTED, the alternative options that had been considered: Do nothing – this would leave the Council without the strategic infrastructure and prevent phase delivery at Meridian Water delaying provision of much needed affordable homes. Re-tender – the Council had received three valid tender responses, which had demonstrated a good understanding of the Council’s requirements and value for money (paragraph 90 of the report referred).

DECISION: The Cabinet agreed to

1.            Approve the entry by the Council into a Contractor Framework Agreement with Bidder A, Bidder B and Bidder C (detailed in the confidential appendix to the report, containing exempt information) in relation to the delivery of a programme of strategic infrastructure works at Meridian Water.

2.            Approve the entry by the Council into a pre-construction services agreement (PCSA) (for the first phase or the whole package of works) in accordance with the call-off provisions of the framework and in consultation with all members of the Cabinet. The maximum contract value of the (first) PCSA was set out in the confidential appendix to the report.

3.            Subject to satisfactory performance by that contractor of its obligations under the PCSA and availability of funding from the MHCLG delegate authority to award the NEC4 contract under the framework to Programme Director – Meridian Water in consultation with the Lead Member for Meridian Water, Acting Executive Director Resources and Director of Law and Governance. The estimated contract value was set out in the confidential appendix to the report. Should the Council consider to fund the first part or phase of the works at its own risk in case HIF funding was not available (agreement not unconditional), a separate authority report would come forward to recommend a decision.

4.            Subject to availability of sufficient funds, delegate authority to award subsequent variations to scope, PCSA and NEC contracts under the framework up to a value of £135m to Programme Director – Meridian Water in consultation with the Acting Executive Director Resources and Director of Law and Governance.

5.            Note that the expenditure was to be funded from within the Capital Programme and up to £116m was intended to be reimbursed from the Housing Infrastructure Fund (HIF funding). The Council would be required to forward fund any costs and, until the HIF Grant Determination Agreement was entered into and conditions to funding were satisfied, the Council would b funding at its own risk. The Council would be unable to claim HIF funding for any works completed after 31 March 2024 or for works which did not comprise part of the Council’s HIF bid.

Reason: NOTED, the detailed reasons for the recommendations as set out in paragraphs 8, 9 and 10 of the report. The proposals would facilitate housing development, boost the local economy and employment, and contribute to the health and wellbeing of local communities.

(Key decision – reference number 5181)