Guide to Obtaining a Cabinet Member Decision by TlCG8IO4

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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: annelie@millbank-emo.co.uk
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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