Guide to Obtaining a Cabinet Member Decision

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					                               Cabinet Member Report
                      Date:    8 January 2010

                  Subject:     P133 Scheme and estimate report for the replacement of
                               the individual hot and cold water storage system and
                               boiler plant upgrade at Wharncliffe Gardens Estate.


Summary
This report sets out the detail of the scheme and estimated cost and seeks approval of
the works covering the replacement of the in-flat individual hot and cold water storage
systems, renewal of boiler house and plant room controls and valve replacements at
Wharncliffe Gardens Estate, Cunning Place, London, NW8 8AU.

The budget for this scheme inclusive of works and professional fees is £731,006 and is
included in the approved 2009/14 Asset and Development Capital programme for M&E
schemes.

The spend profile for this project is as follows:

       Financial Year 2009/10 is £53, 589
       Financial Year 2010/11 is £640,867
       Financial Year 2011/12 is £36,550

A detailed breakdown of costs is attached at Appendix 1.

Recommendations

1)     That for the purpose of Financial Regulation B.8 the Cabinet Member for
       Housing approves the scheme and estimate cost of £760,362 for replacing the
       individual hot and cold water storage systems, replacement of boiler house and
       plant room controls, valve replacements and boiler plant upgrade at Wharncliffe
       Gardens Estate, Cunning Place, London, NW8 8AU as detailed in the report.
                            Cabinet Member
City of Westminster         Report
      Cabinet Member:       Cabinet Member for Housing


                   Date:    8th January 2010


         Classification:    For General Release


         Title of Report:   P133 Scheme and estimate report for the
                            replacement of the individual hot and cold water
                            storage system and boiler plant upgrade at
                            Wharncliffe Gardens Estate.


              Report of:    Chief Executive, CityWest Homes


       Wards involved:      Regents Park


         Policy context:    Housing Service Aim 1 – To deliver and maintain
                            Decent Homes, improve energy efficiency and invest
                            in ‘beyond Decent Homes’.


    Financial summary:      The Estimated cost of the proposed work to replace
                            the individual hot and cold water storage system and
                            boiler plant upgrade at Wharncliffe Gardens Estate is
                            £731,006.
                            This figure includes cost of the works and
                            professional fees and will be funded from the
                            Customer Services M&E 2009 -14 Capital Budget.


         Report Author:     Joseph Bedford


        Contact details     Tel: 020 7245 2554
                            Email: jbedford@cwh.org.uk




                                                                                    2
1.    Background Information
1.1   The buildings on Wharncliffe Gardens included in this project are:

                                                Bedspaces
          Address        Year    1     2    3   4   5   6       7     Total
        Ashby *                       15        12                     27
        Birch Vale *                   5        5                      10
        Brackley                       8        6                      14
        Castleford                    13        14                     27
        Cheadle                       26        22                     48
        Elmton                        17        13                     30
        Helsby                        12        8                      20
        Hucknall                       2        14                     16
        Pennyford                                                      33
        Pinner *                 28              1                     29
        Rothley                                                        17
        Court
        Total                                                         271

1.2   The district heating scheme at Wharncliffe Gardens is approximately 40 years
      old and was originally connected to the Lisson Green district heating scheme
      before it was closed down in the mid 1990s. At that time a stand alone boiler
      house was constructed on Wharncliffe Gardens Estate to provide the heating
      and hot water requirements.

1.3   The boiler house provides heating and hot water at 110oC to three plantrooms
      located across the estate (Pinner Court, Birch Vale and Ashby Court) this is
      reduced to a maximum of 80oC prior to distribution within the flats. Within these
      plant rooms the controls, pumping and other equipment are from the original
      installation, are age expired and need replacement in a planned programme of
      work to ensure an ongoing reliable and energy efficient service to residents.

1.4   Externally of the plant rooms the pipe-work, control valves and other equipment
      is also of the original installation however limited examination has revealed that
      the pipe-work is in reasonable condition considering its age.

1.5   The boiler house and associated boilers are approximately 15 years old and
      recent problems have identified that the control system is now defective and
      replacement parts are not available to undertake repairs. In consequence the
      scheme is not energy efficient and there is no interface to enable remote
      monitoring of the scheme for reporting of faults and monitoring performance.
      The boilers are in reasonable condition and it is not considered necessary to
      replace them at this stage.

1.6   Maintenance contractors over a period have had a significant problem in
      keeping the boilers operational. There have been ongoing burner problems for
      which the manufacturer has also been unable to provide a permanent solution.
      This has resulted in poor service delivery to residents. In addition a number of
      isolating valves have seized and there is a need to install equipment to ensure
      the system water is cleared of debris and sludge to improve performance.




                                                                                       3
2.        Detail
2.1       The existing system needs a substantial amount of work to be undertaken in
          order to ensure an effective, reliable and energy efficient delivery of heating and
          hot water to residents.

2.2       The proposed programme of work includes the items identified as needing
          immediate attention.

2.3       It is therefore proposed to undertake the following programme of work to meet
          these requirements:

         The replacement of the individual hot and cold water storage system (Harcopak
          unit) in each flat in order to address the health and safety issues raised by the
          tanks being heavily corroded and not complying to current regulations.

         The replacement of the control panel associated with each boiler, the whole
          system control panel and the installation of a building management system with
          a remote monitoring facility.

         The replacement of the isolating valves within the boiler house.

         The replacement or overhauling of the burners associated with the four boilers.

         Replacement of the control systems in Ashby Court and Burch Vale Court plant
          rooms.

2.4       The work is to be undertaken as a single contract and is programmed to be
          undertaken during the spring of 2010.

2.5       The project timetable is set out below:

          Scheme & Estimate and AMP Report                 19 November 2009
          Approval Contracts Board
          Section 20 Notice of intention issued            27 November 2009
          Scheme & Estimate Approval Cabinet                  8 January 2010
          Member
          CompeterFor Tender                                  18 January 2010
          Tender return                                      12 February 2010
          Tender Acceptance Contracts Board                  25 February 2010
          Section 20 Notice of Estimate                          5 March 2010
          Start on Site                                            4 May 2010
          Practical Completion                                 20 August 2010
          Final Account                                        November 2010
          End of Defects                                       19 August 2011




                                                                                           4
3.     Financial Implications
3.1    The budget for this scheme, inclusive of works and professional fees is
       £731,006 and is included in the Approved 2009/14 Asset and Development
       Capital programme for M & E schemes. The sum of £210.000 is included in the
       Asset and development Capital Programme for the year 2009/10, the remaining
       sum of £521,006 will be funded from the Asset Development Capital
       Programme for the 2010/11 for M & E projects.

3.2    The spend profile for this project is as follows:

       Financial Year 2009/10 is £53 589
       Financial Year 2010/11 is £640 867
       Financial Year 2011/12 is £36 550

3.3    The budget for this scheme has been confirmed.

3.4    The annual Cost for the servicing, maintenance and repair of the existing boiler
       house, plant rooms and internal equipments associated with this project already
       exist in HRA Maintenances budget for the year 2009/2010.

3.5    The current servicing, maintenance and repair cost for the heating and hot
       water services is £19,714 per annum. The proposed works will result in greater
       reliability of the equipment and thus a reduction in the responsive repair
       element of the annual maintenance contract.

3.6    The proposed works could result in a possible cost saving of £9,364 on the
       repair aspect of the works.

3.7    The contract for the works will be tendered using the process as agreed with
       the Procurement Manager using the MF1 form of Contract to ensure value for
       money.

3.8    The tenders will be thoroughly scrutinised to ensure that the quality of the
       equipment being offered complies with the specification, that the installation
       time frame will be achieved, that minimum disruption to the services is given
       high priority and that the contractor has the necessary resources and
       procedures for dealing with the Residents’ concerns.

3.9    The tender will be for a fixed price lump sum contract that will include the
       contractor’s overhead and profits.

3.10   The consultant fees associated with this project is higher than normal however
       this investigation covers not only the current project but future works associated
       with the completed heating and hot waters system.


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.


                                                                                        5
6.    Lessee Implications
6.1   There are lessee implications arising from this report.

6.2   On the basis of the total estimated costs of £731,006 inclusive of works and
      professional fees, but excluding administrative on-costs, the estimated costs
      recoverable from lessees are £416,148.
      Please refer to appendix 2 for lessee breakdowns.

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 Commonhold and
      Leasehold Reform Act, 2002) will be issued following approval of the Scheme &
      Estimate by the Contracts Board.

6.4   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   Consultation is being undertaken with the residents of the Estate regarding the
      effects that the proposed work will have on the day to day operation of the
      estate and on the individual residents, to agree procedures for the loss of
      services and the conduct of the contractor whilst executing the work.

7.2   In general the residents are in favour of the proposed works. They would like to
      see the full extent of the works and have asked if it is possible to install the
      system in a show flat to show the residents.




                                                                                        6
7.3   Resident consultation is outlined in the table below:

                                                 Resident
              Date             Type                                   Actions
                                                comments
          October 2009      Site meeting
                                              To cover the full
           November                            extent of the         JB Project
                             newsletter
             2009                                works and            Manager
                                                programme
                                              Chair suggested
                                               having a show
                                               flat and that it
                                                                     JB Project
           November         Consultation      may be possible
                                                                     Manager &
             2009             meeting             to use the
                                                                     Consultant.
                                              community hall
                                               system for this
                                                   purpose.
           November
                          Notice of intent
             2009
                           Consultation
          January 2010
                              meeting
          February 2010     News letter
                            Section 20
           March 2010
                          estimate of cost
                           Consultation
           April 2010
                              Meeting
           June 2010        Newsletter


7.4   The Ward for this scheme is Regents Park. A briefing note has been sent to all
      ward members advising them of the works and inviting them to make
      comments. No comments have been received to date.

7.5    Copies of the proposed newsletters will also be sent and will advise them of the
      dates of any meetings, to which they will be welcome to attend.

8.    Health and Safety Issues
8.1   This project will be covered by the CDM regulations and will require the
      appointment of a consultant Health & Safety CDM Coordinator.

8.2   The Health and Safety issues to be addressed are:

          Working within the confined spaces of the boiler house and plant rooms.
          Maintaining the existing heating and hot water services whilst the work is
           being undertaken.
          The execution of the removal and installation of the individual hot water and
           cold water storage units within the dwellings whilst residents are in
           occupation.

8.3   The use of the communal areas for the removal and delivery of material and
      equipment.


                                                                                       7
9.     Risk Appraisals & Management
9.1    Risk assessment and Health and Safety management will form part of the
       overall project appraisal process once the exact work to be included in the
       specification has been identified.

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   Access to the plant rooms and boiler house is restricted to competent persons
       only. It is not permissible for the general public to have access to these areas
       and hence the DDA Regulations to not apply.

11.2   The replacement of the individual hot and cold water storage units will
       necessitate the working in the dwellings this would involve the resident and may
       involve other members of the public therefore the DDA regulation will apply. A
       specialist DDA Consultant will be appointed to ensure that the in-flat work is
       compliant.

11.3   All necessary precautions will be taken to ensure that access to and from the
       dwelling is not restricted.


12.    Environmental Matters
12.1   The installation of a building management system (BMS) will improve the
       operating efficiency of the plant and thus a reduction in the energy
       consumption.

12.2   The proposed works will result in a more reliable heating and hot water system
       and a reduction in the water lost due to the stoppage of leaks.

12.3   All scrap and rubbish will be taken and disposed of at an approved tip in line
       with the Waste Management plan.


13.    Reasons for Decisions
13.1   The in-flat hot and cold water tanks (Harcopak) are from the original installation,
       made of steel and corroded and do not comply with the current approved Code-
       of-Practice L8. A number of the tanks have already been replaced due to either
       leakage and/or discolouration of the water. A planned programme of
       replacement is therefore necessary in order to provide a reliable system, to
       comply with the current Code-of Practice and to ensure that then residents
       receive a good quality supply of water.

13.2   The boiler control panel and burner are proving unreliable therefore their
       replacement is necessary in order to improve the reliability of the boilers and
       thus the heating and hot water services.


                                                                                          8
13.3   The installation of new isolating valves will facilitate the servicing and
       maintenance of the equipments without the need to shut down the system and
       thus the lost of services.

13.4   The installation of a Building Management System (BMS) will allow the plant to
       be operating at maximum efficiency at all times, provide an advanced warning
       of any equipment failure and have a remote monitoring facility.

13.5   The execution of the propose works will result in an increase of the operating
       efficiency of the plant and therefore a reduction in the energy consumption. In
       addition there will be reduction in the maintenance and repair cost associated
       with the plant.


       If you have any queries about this report or wish to inspect any of the
       background papers, please contact Joseph Bedford on 020 7245 2554; email
       address jbedford@cwh.org.uk; fax number 020 7245 2001


Background Papers

None


Appendices

Appendix 1 – Financial Breakdown Tables
Appendix 2 – Lessee Implications




                                                                                         9
Appendix 1 – Financial Breakdown Tables

Description
Works Elements – Constructor only

Replacement of the individual hot and cold water storage systems           474,356
Replacement of the Boiler control panel                                      8,000
Replacment of system control panel                                          10,000
Upgrading of plant rooms                                                    41,000
Installation of BMS                                                         30,000
Replacement of Isolating valves within the boiler house                     16,000
Test and Commission                                                          2,500
Operation and Maintenance Manual                                             1,500


Total Works Elements                                                       583,356
Risk Register
Work Elements – Constructor Only
For Example: (please remove or add where appropriate)
                                                                               -
                                                                               -


Total Risk Register                                                         58,336

TOTAL WORKS ELEMENTS & RISK REGISTER                                       641,692

Other Costs
Site specific overheads
Sub Total - Contract Works + Risk Register + Site Specific O/H             641,692
Constructor O/H – x%                                               x%
subtotal                                                                   641,692
Constructor Profit – x%                                            x%
Total Constructor Costs                                                    641,692
CDM Coordinator                                                              3,500
QS                                                                              -
Design – Electrical                                                         20,000
Design - Mechanical                                                         15,000
Lead Design                                                                     -
Contract Admin                                                                  -
Health and safety audit                                                         -
Structural Engineer                                                             -
Asbestos                                                                     5,000
Electrical Engineer                                                             -
Mechanical Engineer                                                             -
CWH Project Fees (includes PM, CoW, RCO)                              5%    32,085
CWH Central On-cost                                                0.75%     4,813
Audit Fees                                                                   1,500
Legal fees                                                                   1,000
CompeteFor fees                                                    0.00%
Party wall surveyors
Provider Fees (covering Resident Consultation)                               6,417
TOTAL S&E / AMP                                                            731,006




                                                                                     10
Spend Profile                                                PO Amount     Spent to
                                                                           date

2009/10 (Actual + Forecast Spend)                                                     -
     Consultant                                                   25,725              -
     CDM Coordinator                                               2,100              -
     CWH Staff Costs & Central Overheads - PO not required        25,764              -
     Insert Constructor Name & PO                                                     -
2010/11 (Forecast Spend)                                         609,607              -
     Insert Constructor Name & PO                                                     -
     Fees                                                         31,260              -
2011/12 (Forecast Spend)                                                              -
     Insert Constructor Name & PO                                 32,085              -
     Fee                                                           4,465
2010/11 (Forecast Spend)                                                              -
RISK REGISTER                                                                         -

TOTAL                                                            731,006              -




                                                                                          11
Appendix 2 – Lessee Implications


P133 - Water storage system replacement and boiler plant upgrade


Lessee liabilities

                                    Bed                     Liability      Total
       Block         No. lessees              Lease %
                                   spaces                      (£)      Liability (£)
Ashby Court              3            2        2.222%      £1,825.05     £5,475.15
Ashby Court              8            4        4.444%      £3,650.10    £29,200.80
                         11                                             £34,675.95
Birch Vale Court         1            2        6.667%      £1,825.32     £1,825.32
Birch Vale Court         2            4       13.333%      £3,650.38     £7,300.76
                         3                                               £9,126.08
Brackley Court           3            2        5.000%      £1,825.23     £5,475.69
Brackley Court           5            4       10.000%      £3,650.47    £18,252.35
                         8                                              £23,728.04
Castleford Court         6            2        1.961%      £1,825.43    £10,952.58
Castleford Court         11           4        3.922%      £3,650.87    £40,159.57
                         17                                             £51,112.15
Cheadle Court            5            2        1.351%      £1,824.76     £9,123.80
Cheadle Court            15           4        2.703%      £3,650.87    £54,763.05
                         20                                             £63,886.85
Elmton Court             3            2        2.222%      £1,825.05     £5,475.15
Elmton Court             9            4        4.444%      £3,650.10    £32,850.90
                         12                                             £38,326.05
Helsby Court             2            2        3.125%      £1,825.23     £3,650.46
Helsby Court             8            4        6.250%      £3,650.47    £29,203.76
                         10                                             £32,854.22
Hucknall Court           6            4        7.692%      £3,650.32    £21,901.92
Hucknall Court           0            0        0.000%        £0.00        £0.00
                         6                                              £21,901.92
Pennyford Court          13           2        1.923%      £1,825.16    £23,727.08
Pennyford Court          19           4        3.846%      £3,650.32    £69,356.08
                         32                                             £93,083.16
Rothley Court            8            2        3.846%      £1,825.16    £14,601.28
Rothley Court            9            4        7.692%      £3,650.32    £32,852.88
                         17                                             £47,454.16
Total leasehold
                        136                                             £416,148.58
units




                                                                               12
Summary                                                   Highest        Lowest         Average

Total number of leaseholders           136               £3,650.87      £1,824.76       £3,059.92
Original leaseholders                   42
Assigned                                94
Sublet                                  33
Section 125 Leaseholders
                                         1
See note1
Pre-1987 Leaseholders
                                        34
See note2

Note1: Section 125
Leaseholders
Leaseholders purchased under the Right To Buy scheme with costed schedule protection
limitation valid for all or part of the contract period. This means that during the first five years
of the lease these lessees cannot be recharged for works which were not listed within their
offer notice and if listed cannot be charged more than the costs advised plus an allowance
for inflation. It is not possible to calculate liabilities at this stage before costs are incurred.
Note2: Pre 1987 Leaseholders
Leases have a restriction that means we cannot recover the cost of improvements from
leaseholders. It is not possible to calculate liabilities at this stage before costs are incurred.




                                                                                           13
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 P133
Scheme and estimate report for the replacement of the individual hot and cold
water storage system and boiler plant upgrade at Wharncliffe Gardens Estate
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 …………………………………………………




                                                                                      14
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.




                                                                                        15

				
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