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Cabinet Member Report Date: 16 December 2009 Subject: Q102 Revised Scheme & Estimate for Repairs and Cyclical Maintenance to Rossetti, Ruskin, Stubbs and Turner Houses for MEMO Summary This report sets out the details of a Scheme and Estimate for External Repair Works and the Cyclical Decoration of Rossetti, Ruskin, Stubbs and Turner Houses, London SW1. The total cost of the works is estimated to be £1,830,336, inclusive of professional fees, excluding VAT. The works are to be funded from Revenue and Capital. The Capital element is estimated as £1,519,492 and the Revenue element, which will be partly met from the MEMO Cyclical Decorations Account, is £310,844. Millbank EMO has the revenue element necessary to enable these works; the works can therefore start in this financial year. The capital funds necessary is sought from the 2010-11 financial year which will enable the anticipated spend in the forthcoming financial year. The financial breakdowns are attached at Appendix 1. Recommendation 1) That for the purposes of Financial Regulation B.8 the Cabinet Member for Housing approves the expenditure totalling £1,830,336, inclusive of professional fees for the works detailed in this report. Cabinet Member City of Westminster Report Cabinet Member: Cabinet Member for Housing Date: 16 December 2009 Classification: General Release Title of Report: Q102 Revised Scheme & Estimate for Repairs and Cyclical Maintenance to Rossetti, Ruskin, Stubbs and Turner Houses for MEMO Report of: Chief Executive, CityWest Homes Wards involved: Vincent Square Ward Policy context: Housing Service Aim 2 – To provide excellent housing management services’. To maintain and improve the stock based on stock condition and residents views. Financial summary: The cost of the proposed work is £1,830,336 inclusive of works, professional fees and contingencies. £1,519,492 funded from the Capital Programme and £310,844 from Revenue. Report Author: Annelie Sernevall Contact details Tel: 020 7976 5788 Email: email@example.com 1. Background Information 1.1 The Millbank Estate Management Organisation is a Tenant Management Organisation (TMO), a managing agent for Westminster City Council. The TMO is provided with funds to undertake the works and employment of consultants and contractors to obtain best possible quality of work at the most competitive price to ensure that the housing stock on Millbank Estate is managed and maintained as necessary. This undertaking of responsibility is outlined in the Modular Management Agreement Chapter 2. 1.2 The Modular Management Agreement outlines the responsibilities of the TMO and the responsibilities of the Council. Chapter 2 schedule 6.2 outlines the procedure in case the allowance made available does not meet the required anticipated cost. 1.3 Rossetti, Ruskin, Stubbs and Turner House are purpose-built blocks of 30, 55, 30 and 60 properties respectively, each comprising a mix of studios, one, two and three bedroom flats. The blocks are four storeys high with solid brick external walls and timber windows and concrete floors. They have tiled pitched roofs with dormers, asphalt gutters and parapet walls. 1.4 The exterior painted elements of both blocks require redecoration. The pitched roofs are in satisfactory condition whilst the parapet walls, dormers and gutters require significant repair, particularly to Ruskin House. Other repairs include timber repairs, renewal of isolated sashes and sills to the windows. 1.5 The asphalt covered parapet gutters are beginning to fail and dampness is penetrating a number of high level flats. All painted surfaces require renewal and the timber windows are rotten in areas and need repair. 1.6 The external decorations to these blocks are overdue. They were last decorated over 10 years ago. The Council has an obligation to ensure that funds are made available to ensure that these blocks are maintained accordingly to ensure that the structure of tenants and lessees properties are kept in a decent state of repairs. 2. Detail 2.1 The objectives are to maintain the building effectively and to comply with landlord’s responsibilities. The works will include the following: Access Remedial works to water ingress affected properties. Window renewals Flat entrance door renewals Joinery overhauling including renewal of draught proofing, installation of window restrictors etc Brickwork repointing Replacement floor coverings Landscaping repairs Miscellaneous repairs Repairs to timber windows Repair of parapet walls, gutters and roof pitches Repairs to render surfaces Repairs to brick surfaces Redecoration of all external painted surfaces Redecoration of previously painted surfaces to internal common areas 2.2 The cost estimates have been provided by consultants. 2.3 The contract period is estimated to 26 weeks. 2.4 Professional fees of 5.75% inclusive of CDM coordinator, 1.5% Frame work fee as well as MEMOs fees of 1% are incorporated in the cost estimate in section 9. 2.5 Works were tendered as part of a larger scheme in November 2007. These were not progressed due to a lack of adequate funds at that time. 2.6 The decision of not proceeding with the works in 2007 is documented and signed on the 14 November 2007 by the contractor who was awarded the contract. 2.7 The programme of works is outlined in the table below. Scheme & Estimate Report Approval 15th October 2009 Contracts Board First Stage Section 20 issued May 2009 Scheme & Estimate Approval Cabinet November 2009 Member Tender Project November 2009 Tender Acceptance Report Approval December 2009 Second Stage Section 20 issued December 2009 Start on Site January 2010 Practical Completion June 2011 Final Account July 2011 End of Defects June 2012 3. Financial Implications 3.1 The budget for this scheme comes from both Revenue (2009/10) and Capital (2010/11 – 2011/12). 3.2 MEMO would like to undertake this work as a single contract with the work proposed to Turner and Stubbs House, funding permitting, proposed to take advantage of economies of scale. The works to Ruskin and Rossetti House will be completed first with the work to Stubbs and Turner following. This will result in value for money with regards to scaffolding in particular. 3.3 There is no budget allocation for the scheme in 2009/10, however the £25k will be funded from savings identified in Contract no M130 Churchill Gardens External works. 3.4 The total cost of the scheme inclusive of the works and professional fees is estimated to be £1,830,336, excluding VAT. The works are to be funded from Revenue and Capital. The Capital element is estimated as £1,519,492 and the Revenue element, which will be partly met from the MEMO Cyclical Decorations Account, is £310,844. 3.5 These blocks need to be incorporated in the 7 year cyclical cycle for external decoration. 3.6 The works will be competitively tendered. 3.7 Works will be procured through either the CWH or the Cyntra (LAPN) Frameworks or through the CompeteFor tender process as agreed with the CWH Procurement Manager. 3.8 Combining the contract for the 4 blocks will enable savings due to economies of scale. 3.9 The appointed consultant has estimated that there would be a saving of £20,000 if the scheme is carried out in one phase rather than phasing it over two years. 3.10 In order to carry out the contract in two phases it would be necessary to remove and re-establish the site based accommodation, additional management charges for sub contract procedures plus potential additional scaffolding cost to remove from site then bring back to site; this is estimated to cost £20,000. 4. Legal Implications 4.1 There are no legal implications arising from this report. 5. Outstanding Issues 5.1 There are no outstanding issues arising from this report. 6. Lessee Implications 6.1 The table below indicates the estimated cost of works per block Block Millbank Estate Nos. of Flats cost 55 (24L/H) Ruskin 403,500 30 (26 L/H) Rossetti 284,000 60 (25L/H) Turner 416,500 30 (14 L/H) Stubbs 297,000 6.2 There are lessee implications arising from this report. 6.3 The Notice of Intention under schedule 4 part 2 as defined by Section 20 ZA of the Landlord and Tenant Act 1985 (as amended by the Common-hold and Leasehold Reform Act, 2002) was issued on 8 May 2009. 6.4 On the basis of the total estimated costs of £1,830,336 inclusive of fees, but excluding non-contract specific administrative on-costs, the estimated costs recoverable from lessees are £1,006,718. 6.5 Details of lessee breakdowns can be found in Appendix 2 6.6 LESSEE PAYMENT OPTIONS The City Council is able to offer a range of options for paying major works bills. Lessees can pay an estimated bill by regular instalments over 1 or 2 years with no interest or administration costs. Owner-occupiers (i.e. excluding landlords) with bills over £5,000 can be repaid over 5 years with interest at 1% over the base rate in years’ 3 to 5. Lessees who are unable to pay their account in full from their income or savings can apply for a loan from the Council if they are unable to obtain a loan privately. Lessees who can demonstrate financial hardship can apply to defer payment of a Council loan. Interest may be waived on the loan where the charge is over £10,000 and the lessee meets certain qualifying criteria. 7. Consultation 7.1 The works will be procured and managed by the TMO with the assistance of Consultants that provides the technical expertise as well as necessary CDM coordination. This provides an excellent example of resident empowerment with residents at the heart of key decision making. Residents will be consulted throughout the development of this project. 7.2 The Section 20 Lessee Consultation process will be applicable to the works under the Landlord and Tenant Act 1985 and will commence on Contracts Board approval of this scheme and estimate report. 7.3 Resident Consultation is outlined in the table below: (Consultation on this project commenced in March 2009 when the scheme was first proposed. This has continued in newsletters since. Further consultation is to be undertaken as outlined below) Date Type Issues Actions Update & invite to March 09 General letter Estate Director open meeting Open meeting – Estate Director & Discuss works to July 09 6.00 pm in Consultant be carried out community hall Surveyor Advising of Bid & Tender Outcome December 09 General letter Estate Director and invite to meet contractor Estate Director, General Details of work, December 09 Surveyor, meeting schedule etc Contractor, Chair 7.4 All the ward members for the area have been advised of the proposed scheme and have been invited to comment. They have been provided with information on the consultation being undertaken and been invited to attend the public meetings and the working group meetings. No comments have been received to date. 8. Health and Safety Issues 8.1 The Construction (Design and Management) Regulations 2007 will apply to this contract. The appointed CDM Coordinator will prepare the Pre Construction Information. The main contractor will develop detailed method statements that will be reviewed. 8.2 The Contractor will complete the City of Westminster Working with Residents in Occupation Charter to include all possible scenarios, which will affect the progress of the works when working with residents in their own homes 9. Risk Appraisals & Management 9.1 The TMOs database and local knowledge will provide the basis of the information of any category of potentially vulnerable residents provided to the contractor prior to work starting on site. 9.2 In addition the Open Housing Management System (OHMS) will be interrogated to identify any additional potentially violent residents as well as residents with special needs such as language or disability, before works start on site. 9.3 Close liaison will be kept with the TMO office during the course of the contract and the TMO office will carry out all programme management and customer liaison duties necessary for this project. 9.4 Contractors will be required to demonstrate suitable experience of working with residents. 10. Crime and Disorder Act 1998 Implications 10.1 There are no Crime and Disorder implications arising from this report. 11. Disability Discrimination Act (DDA) 2005 Considerations 11.1 There are no DDA considerations arising from this report. 12. Environmental Matters 12.1 Consideration will be given to alternative sustainable solutions/products at the appropriate time. However, as the works will primarily be repairs there will be little scope for anything other than traditional materials to match existing. 12.2 Where timber elements are replaced they will be specified from sustainable sources. 12.3 The works will affect energy saving. 13. Reasons for Decision 13.1 The scheme is identified in the five-year capital programme as requiring works. 13.2 The works are required for Westminster Council to comply with repairing responsibilities under the leases. If you have any queries about this report or wish to inspect any of the background papers, please contact Annelie Sernevall annelie@millbank- emo.co.uk telephone 020 7976 5788 Estate Director Millbank Estate Management Organisation Background Papers Feasibility Study Modular Management Agreement Cost Estimates Appendices Appendix 1 – Breakdown of costs Appendix 2 – Lessee implications Appendix 1 – Breakdown of costs Cost Estimate Capital Revenue Total Access 335,475 335,475 Roof Repairs 120,480 120,480 Rain Water Goods 8,460 8,460 Elevational Repairs 33,300 33,300 Joinery Repairs 220,020 220,020 Joinery Overhauling 177,223 177,223 External Decorations 139,047 139,047 Internal Decorations 114,338 114,338 Provisional Window and Door Renewals 135,045 135,045 Flooring Works 33,443 33,443 Miscellaneous Repairs 6,169 6,169 Provisional Sums inc Structural repairs 78,000 78,000 Preliminaries Approx 15% 210,150 210,150 Subtotal 1,611,150 Contingency Sum Approx 5% 80,550 80,550 Total Estimated Cost of Work Element 1,398,703 292,997 1,691,700 MEMO Fee 1% 13,987 13,987 Consultant Fees including CDM 5.75% 80,426 16,847 97,273 Frame Work Fee 1.5% 25,376 25,376 CWH Fees including audit 1,000 1,000 2,000 Total Scheme and Estimate 1,519,492 310,844 1,830,336 Year 09/10 10/11 11/12 TOTAL Capital Revenue Capital Revenue Capital Revenue Audit £1,000 £1,000 £2,000 MEMO fee £13,987 £13,987 Framework fee £25,376 £25,376 Consultants £25,000 £16,847 £38,909 £16,517 £97,273 Works £292,997 £648,947 £669,206 £1,611,150 Contingency £80,550 £80,550 Total £25,000 £309,844 £808,769 £1000 £685,723 Total of Capital & Revenue £1,830,336 Appendix 2 - Lessee Implications MAJOR WORKS BILLING SCHEME AND ESTIMATE REPORT INFORMATION Repair works and cyclical maintenance / decorations CONTRACT:- Q102 TOTAL £1,006,718. HTX CHARGEABLE = 20 ESTATE OFFICE :- 80 Start 05-Oct-09 Finish Date 25-Jun-10 Date Works % Works with ALL costs added £1,807,889.75 Rossetti House Repairs and £284,000.00 20.27% £366,481.58 redecorations Ruskin House Repairs and £403,500.00 28.80% £520,687.73 redecorations Stubbs House Repairs and £297,000.00 21.20% £383,257.14 redecorations Turner House Repairs and £416,500.00 29.73% £537,463.30 redecorations £1,401,000.0 100.00% £1,807,889.75 0 For completion by the Cabinet Member for Housing. Declaration of Interest I have no interest to declare in respect of this report Signed ……………………………. Date ……………………………… NAME: Cllr Philippa Roe, Cabinet Member for Housing I have to declare an interest State nature of interest ……..…………………………………………… ……………………………………………………………………………….. Signed ……………………………. Date ………………………………… NAME: Cllr Philippa Roe, Cabinet Member for Housing (N.B: If you have an interest you should seek advice as to whether it is appropriate to make a decision in relation to this matter.) For the reasons set out above, I agree the recommendations in the report entitled Q102 Revised Scheme & Estimate for Repairs and Cyclical Maintenance to Rossetti, Ruskin, Stubbs and Turner Houses for MEMO and reject any alternative options which are referred to but not recommended. Signed ……………………………………………… Cabinet Member for Housing Date ………………………………………………… For Ward Specific Reports Only (Delete if report affects more than one Ward) In reaching this decision I have given due regard to any representations made by relevant Ward Members. Signed ……………………………………………… Cabinet Member for Housing Date ………………………………………………… If you have any additional comment which you would want actioned in connection with your decision you should discuss this with the report author and then set out your comment below before the report and this pro-forma is returned to the Secretariat for processing. Additional comment: ………………………………………………………………… …………………………………………………………………………………………. …………………………………………………………………………………………. NOTE: If you do not wish to approve the recommendations, or wish to make an alternative decision, it is important that you consult the report author, the Head of Legal Services, the Director of Finance and, if there are staffing implications, the Director of Human Resources (or their representatives) so that (1) you can be made aware of any further relevant considerations that you should take into account before making the decision and (2) your reasons for the decision can be properly identified and recorded, as required by law. Note to Cabinet Member: Your decision will now be published and copied to the Members of the relevant Policy & Scrutiny Committee. If the decision falls within the criteria for call-in, it will not be implemented until five working days have elapsed for any call-in request to be received.
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