Decision details

Councillor Reeve returned to the room 9.20pm.

Councillor Coote presented the report regarding the Procurement of Housing Repairs, Maintenance and Capital Improvements provision from 2025, which followed the decision by Cabinet on 9th January 2024 not to continue with the Joint Venture arrangement with Uttlesford Norse Services Ltd (UNSL) from April 2025 and instead put in place a new operating model for the delivery of repairs, maintenance and capital improvements to UDC’s council homes. He said the recommended option was to replace the current arrangement with a mixed economy between different providers (Option 11), and he highlighted the report that summarised the 11 options presented to Cabinet on 9th January and to Members on 18th March. He said the rationale for recommending Option 11 was that it would enable UDC to tailor long-term service arrangements per workstream and build relationships with providers, therefore achieving buy-in to social investment and the ability to control costs. He proposed approval of the recommendations set out in the report.

Members discussed the proposal and asked questions.

The Interim Director of Property said he was working to a project plan which was predicated on a collegiate approach with UNSL; it was important that people were kept informed. He said that he expected staff would be disappointed with the mixed economy option but it would not be economical to keep all services in house. He added that most works were already sub-contracted.

In response to a question regarding governance, the Interim Director of Property said governance arrangements would be built into the process. The Chief Executive added that further decisions would be brought before members and there would be further updates on stakeholder engagement. For instance, a “meet the supplier” day would be scheduled in future and a timetable on the process would be brought to members in June.

Councillor Sutton seconded the proposal.

RESOLVED to:

I.                 Cabinet approve the mixed economy operating model (Option 11).

II.               Cabinet give delegated authority to the Interim Strategic Director, Housing, Health and Communities, the Chief Executive, the Strategic Director of Finance, Commercialisation and Corporate Services, and the interim Director of Property in consultation with the Cabinet Members of Housing and Finance, to develop the detailed service specifications/contracts in advance of the

procurement process, to be brought back to Cabinet on 13 June 2024.

III.             Cabinet give delegated authority to the interim Director of Property to manage the procurement process, in consultation with the Chief Executive, Interim Strategic Director of Housing, Health and Communities, Strategic Director of Finance, Commercialisation and Corporate Services, the Council’s Procurement Service and external advisors as required.

IV.            Cabinet note the ‘step-in’ arrangements put in place by UDC (as delegated by Cabinet on 9th January) and the recommendation by officers that it is not appropriate to pursue a legal remedy against UNSL at this stage for service failure.

V.              Cabinet note the ‘next steps’ for the procurement process.

VI.            Cabinet delegate to the Interim Strategic Director, Housing, Health and Communities, the Chief Executive and the interim Director of Property in consultation with the Cabinet Member for Housing the formal consultation process and ongoing engagement arrangements with tenants and leaseholders.