Agenda, decisions and minutes

There were no apologies for absence.

NOTED

There were no apologies for absence.

NOTED

The Chair will consider the admission of any late items of Urgent Business. Late items of Urgent Business will be considered under the agenda item where they appear. New items of unrestricted urgent business will be dealt with under Item 9 below. New items of exempt urgent business will be dealt with at Item 14 below.

There were no items of urgent business.

NOTED

There were no items of urgent business.

NOTED

A Member with a disclosable pecuniary interest or a prejudicial interest in a matter who attends a meeting of the authority at which the matter is considered:

(i) must disclose the interest at the start of the meeting or when the interest becomes apparent, and

(ii) may not participate in any discussion or vote on the matter and must withdraw from the meeting room.

A Member who discloses at a meeting a disclosable pecuniary interest which is not registered in the Register of Members’ Interests or the subject of a pending notification must notify the Monitoring Officer of the interest within 28 days of the disclosure.

Disclosable pecuniary interests, personal interests and prejudicial interests are defined at Paragraphs 8.1-15.2 of Section Two of Part 5 of the Constitution  and Appendix A of the Members’ Code of Conduct.

A Member with a disclosable pecuniary interest or a prejudicial interest in a matter who attends a meeting of the authority at which the matter is considered:

(i) must disclose the interest at the start of the meeting or when the interest becomes apparent, and

(ii) may not participate in any discussion or vote on the matter and must withdraw from the meeting room.

A Member who discloses at a meeting a disclosable pecuniary interest which is not registered in the Register of Members’ Interests or the subject of a pending notification must notify the Monitoring Officer of the interest within 28 days of the disclosure.

Disclosable pecuniary interests, personal interests and prejudicial interests are defined at Paragraphs 8.1-15.2 of Section Two of Part 5 of the Constitution  and Appendix A of the Members’ Code of Conduct.

There were no formal declarations of interests.

Councillors Burke and Selman advised that they were Ward Members in the ward where one of the proposed block works were being proposed at agenda item 7 and were advised but the Senior Governance Services Officer  – Mr Hart that it was not necessary for a formal declaration to be made in that respect.

NOTED

There were no formal declarations of interests.

Councillors Burke and Selman advised that they were Ward Members in the ward where one of the proposed block works were being proposed at agenda item 7 and were advised but the Senior Governance Services Officer  – Mr Hart that it was not necessary for a formal declaration to be made in that respect.

NOTED

On occasions part of the Cabinet Procurement Committee meeting will be held in private and will not be open to the public if an item is being considered that is likely to lead to the disclosure of exempt or confidential information as defined in Part 1 of Schedule 12A of the Local Government Act 1972 as amended . In accordance with the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012 (the “Regulations”), members of the public can make representations about why that part of the meeting should be open to the public.

This agenda contains exempt items as set out at Item 12 :

No representations with regard to these have been received.

There were no representations.

NOTED

There were no representations.

NOTED

There were no deputations, petitions or questions.

NOTED

There were no deputations, petitions or questions.

NOTED

To confirm the unrestricted minutes of the meeting of Cabinet Procurement Committee held on 8 June 2020.

RESOLVED

That the unrestricted minutes of the meeting of Cabinet Procurement Committee held on 8 June 2020 be confirmed as an accurate record of the proceedings.

RESOLVED

That the unrestricted minutes of the meeting of Cabinet Procurement Committee held on 8 June 2020 be confirmed as an accurate record of the proceedings.

This report seeks Cabinet Procurement Committee’s approval to the procurement of a group of planned capital works to Hackney Council housing which are non-rechargeable to leaseholders, via a pre-existing external framework.

RESOLVED

i.  That approval be given to the procurement of a group of planned capital works to Hackney Council housing which are non-rechargeable to leaseholders, via a pre-existing external framework, including specific internal, external and fire safety projects, as set out below, having a total estimated value of £40m, and which would allow allow capital delivery to continue, pending the award of a new suite of long term contracts, which has been delayed due to the Covid-19 pandemic.

ii.  That  authority be delegated to the Group Director of Neighbourhoods and Housing, in consultation with the Group Director of Finance and Corporate Resources, to approve direct awards of contracts at Regent’s Estate, Lincoln Court and Seaton Point under this procurement, and note that these awards will be reported as an information item at subsequent meetings of the Cabinet Procurement Committee, and that all other projects will return to Cabinet Procurement Committee for approval of contract award following a mini-tender process.

RELATED DECISIONS

May 2020:  CPC approval of a one year extension, effective from 31 August 2020, to the existing contracts under the ‘Contract 1’ framework for Decent Homes, Planned and Responsive Maintenance Works  to Hackney Council housing.  These include contracts with three service providers; two of which have Project Partnering Contract (PPC) forms of contract, and one of which has both a PPC and Term Partnering Contract (TPC) form of contract.

http://mginternet.hackney.gov.uk/ieListDocuments.aspx?CId=113&MId=4804

June 2019: The Procurement Strategy report approval of a suite of capital contracts for planned works to Hackney the Council’s housing stock.  The contracts cover planned internal, external, fire safety, mechanical and electrical works to Hackney Council homes.  This procurement exercise is, in part, a replacement to Contract 1 which is the subject of this current business case.

http://mginternet.hackney.gov.uk/mgIssueHistoryHome.aspx?IId=37259&optionId=0

25 March 2019: Cabinet approval of the Housing Asset Management Strategy 2019-2027. This provides an overarching framework for investment decision-making across the Council’s homes and estates. It sets out the ambitions that Hackney has for the quality of its homes and the priorities that will be established to ensure that the limited available resources are directed at the greatest need.

http://mginternet.hackney.gov.uk/ieListDocuments.aspx?CId=111&MID=4332#AI32478

  30 March 2015: Cabinet Procurement Committee Approval to award a four year framework agreement to three Main Constructors for a period of up to four years was  ...  view the full decision text for item 7.

The Chair asked for an introduction of the report.

Clerks note – This meeting has been live streamed and the discussion of this meeting can be viewed at the link to this meeting.

The Head of Property and Asset Management – Ms Sinead Burke in stating that the Council’s unprecedented challenge from the current Covid-19 outbreak with frontline staff working to support residents directly affected by the lockdown, and others working to ensure that the Council continued to fulfill its core responsibilities, advised that an important responsibility was the maintenance of the Council’s housing stock to ensure that residents remained safe and secure and homes were decent.

 Ms Burke referred to the decision taken in May 2020 to extend the Council’s   existing main capital delivery framework by one year, and up to a value of £225m, and made in the context of the exceptional circumstances brought about by the Covid-19 outbreak as it initiated significant disruption not only to current programmes but also planned procurement work on replacement contracts. 

  Ms Burke went on to advise that the planned procurement work as detailed was to put in place long term contracts of up to 10 years.  Securing prices for such works required market conditions to be relatively stable.  The current market, and that for the immediately foreseeable future, would be quite uncertain.  As indicated in May an extension to Contract 1 alone may not be sufficient to ensure the delivery of a suitable level of capital investment until new contracts could be put in place.

Ms Burke further advised that the report before the Committee recommended the procurement of a set of essential projects to be delivered to tenanted homes only, which would provide another important route for capital delivery over the next two years. The main benefits of the proposed works would be in improving fire safety, ensuring hundreds of tenants benefitted from new kitchen, bathroom and heating facilities in their homes, and ensuring the significant external works scheme at the Regent’s Estate could be completed, with those residents particular benefitting from new windows. The estimated total contract value was £40m, to deliver the planned capital works. The works (which were non-rechargeable to leaseholders), would be placed via two pre-existing External Framework Agreements, namely South East Consortium and LHC

With regard to the management of the contracts  Ms Burke advised that they would continue to be managed and monitored by Property and Asset Management. A range of enhanced contract management and governance procedures had been put in place in the past two years which focused on five key aspects to contract management: internal governance, payments, processes, project management and clerk of works inspections. These procedures and ongoing developments would be applied to this contract extension, and as reported to the Audit Committee in April 2019.  Ms Burke concluded that one additional benefit of the works would be in allowing continuity of capital delivery, and consequently opportunity to continuously develop those procedures.

In response to questions by the Chair and  ...  view the full minutes text for item 7.

This report provides the outcome of the procurement strategy agreed in the March 2016 by Cabinet Procurement Committee.

RESOLVED

That the outcome of the purchasing arrangements which placed Supply contracts with the Energy companies be noted as follows:

i.  The Half Hourly and Unmetered Electricity Supply contract awarded to Supplier A as detailed in the exempt appendix to the report, with estimated contract values of £1,981k and £ 793k respectively;

ii.  The Non-Half Hourly Electricity Supply contract awarded to Supplier A and B as detailed in the exempt appendix to the report, at an estimated contract value of £68k and £ 3,600k;

iii.  The Gas Supply contract awarded to Supplier C at an estimated contract value of £1,692k as detailed in the exempt appendix to the report, and that some supplies would remain with Supplier D at £278k and that these supplies have not migrated over to the new supplier due to outstanding account debts; and

iv.  the indicative aggregate cost impact for Hackney, including Housing and Schools, from these tender awards to be a 13% decrease against 2019/20’s financial year’s projection, and that the actual impact to be monitored via OFP.

RELATED DECISIONS

Cabinet Procurement Committee approved the Business Case report in its meeting of the 15th March 2016.The reportrecommended the appointment of the Crown Commercial Service as the energy purchasing agent for the Council and also for the Group Director of Finance and Corporate Resources to engage the service provider for future years’ purchases

REASONS FOR DECISION/OPTIONS APPRAISAL.

This report provides Cabinet Procurement Committee with the results of the “risk managed flexible purchasing” exercise carried out on behalf of the Council by Crown Commercial Service (CCS) between Oct 2019 and March 2020 for all gas and large electricity supplies (Half Hourly including public street lighting) to secure a twelve month contract.

The report also provides the outcome of the purchase carried out by CCS who were also appointed to purchase the Council’s small electricity supplies (NHH supplies) based on the delegated authority provided by Cabinet Procurement Committee to the Group Director of Finance and Corporate Resources in March 2016.

The current contract prices for all supplies include those large (HH) Half Hourly electricity supplies including Unmetered (UMS) public street lighting, all gas and small (NHH) Non-Half Hourly electricity supplies for the year commencing 1st April 2020 to 31st March 2021 were presented to the Council during April and May 2020. 

This year’s contracted prices (pence per unit) for the NHH electricity supplies are estimated at 12% less than last year’s prices. The prices include 3rd party costs, commodity rates, renewable levies as well as transmission and distribution costs.  At the very end of 2019, COVID-19 has had a dramatic effect on markets around the world and the prices have reacted to this change.

An increasing proportion of the delivered electricity cost relates to non-energy costs that support providing reliable, secure, low carbon energy to the UK as part of the Government's Electricity Market Reform. Transmission and Distribution costs are pass-through costs charges set by National Grid and Distribution Network Operators. These charges are  ...  view the full decision text for item 8.

The Chair asked for an introduction of the information report.

The Energy Manager – Ms Mary Aladegbola advised the Committee that the report before it provided the outcome of this 2020/21 purchasing round for energy used within Council offices, Hackney Housing and in Schools,  where such Schools were part of the corporate contracting arrangement. The year’s contract prices showed an estimated 13% average decrease on the bottom line against the previous financial year’s prices.  Ms Aladegbola also advised that notwithstanding the level of pricing achieved, the Council and in particular the Energy Management Unit would continue to work with other departments to pursue the delivery of energy conservation measures, some of which were highlighted in other parts of the report.

Ms Aladegbola went to comment that the London Borough of Hackney, in common with many other local authorities, relied heavily on the supply of gas and electricity from the market to deliver essential services to residents. As part of the Mayor and Council’s commitment to rapidly decarbonising the full functions of the local authority, the Council switched to 100% renewable electricity on 1 April 2020. The next step which the Council was actively working towards would see the Council secure 100% renewable electricity through the Power Purchase Agreements (PPA). Whilst this was a very challenging target it was believed that it would contribute towards reaching the net zero target,

Ms Aladegbola  further reported that in October 2018, the Intergovernmental Panel on Climate Change issued its starkest warning yet, through the Special Report on Global Warming of 1.5C, regarding both the timescales and level of action required to drastically reduce greenhouse gas emissions in order to avert catastrophic warming and subsequent climate change. The report concluded that “limiting warming to 1.5C was possible within the laws of chemistry and physics but doing so would require unprecedented changes" and that “the next few years were probably the most important in history.” The deep decarbonisation programme that Hackney Council was undertaking in respect of its consumption of energy, both on the supply and demand-side, could not be more timely.

Ms Aladegbola further advised that in June 2019, the Council further strengthened its commitment to playing a full role in the transformation of the energy system through the agreement of a Climate Emergency motion at Full Council. This motion committed the local authority to a 45% reduction in emissions against 2010 levels by 2030 and net zero emissions by 2040, in-line with the most stretching targets contained within the IPCC 1.5C report.

Ms Aladegbola further commented that   REGO certificates were a major step forward for the Council in delivering against the 2018 manifesto commitment to transform the way Hackney purchased wholesale energy to increase the generation of renewable energy beyond Hackney’s borders by using its corporate spending on gas and electricity to increase investment in sources of clean energy. The natural next step in the process beyond 1 April 2020 would  be to explore the potential for a Power Purchase Agreement  ...  view the full minutes text for item 8.

There were no items of unrestricted urgent business.

NOTED

There were no items of unrestricted urgent business.

NOTED

Meetings will be held at 5.00pm on:

7 September 2020

5 October 2020

9 November 2020

7 December 2020

18 January 2021

8 March 2021

12 April 2021

10 May 2021

NOTED – meetings of the Cabinet Procurement Committee commencing at 5.00pm for the remainder of the Municipal Year 2020/21 as follows:

7 September 2020

5 October 2020

9 November 2020

7 December 2020

18 January 2021

8 March 2021

12 April 2021

10 May 2021

NOTED – meetings of the Cabinet Procurement Committee commencing at 5.00pm for the remainder of the Municipal Year 2020/21 as follows:

7 September 2020

5 October 2020

9 November 2020

7 December 2020

18 January 2021

8 March 2021

12 April 2021

10 May 2021

Note from the Governance Services Manager

Item(s) 12 & 13 allows for the consideration of exempt information in relation to items  respectively.

Proposed resolution:

THAT the press and public be excluded from the proceedings of the Cabinet Procurement Committee during consideration of Exempt items 12-13 on the agenda on the grounds that it is likely, in the view of the nature of the business to be transacted, that were members of the public to be present, there would be disclosure of exempt information as defined in paragraph 3 of Schedule 12A to the Local Government Act 1972 as amended.

RESOLVED

THAT the press and public be excluded from the proceedings of the Cabinet Procurement Committee during consideration of Exempt items 12-13 on the agenda on the grounds that it is likely, in the view of the nature of the business to be transacted, that were members of the public to be present, there would be disclosure of exempt information as defined in paragraph 3 of Schedule 12A to the Local Government Act 1972 as amended.

RESOLVED

THAT the press and public be excluded from the proceedings of the Cabinet Procurement Committee during consideration of Exempt items 12-13 on the agenda on the grounds that it is likely, in the view of the nature of the business to be transacted, that were members of the public to be present, there would be disclosure of exempt information as defined in paragraph 3 of Schedule 12A to the Local Government Act 1972 as amended.

To confirm the exempt minutes of the meeting of Cabinet Procurement Committee held on 8 June 2020.

RESOLVED

That the exempt minutes of the Cabinet Procurement Committee held on 8 June 2020 be confirmed as an accurate record of the proceedings.

RESOLVED

That the exempt minutes of the Cabinet Procurement Committee held on 8 June 2020 be confirmed as an accurate record of the proceedings.

Item 8 refers

Appendix 1 is exempt from publication under para 3 of Part 1, Schedule 12a of the Local Government Act 1972 (as amended).

RESOLVED

That exempt appendix 1 in relation to agenda item 8 be noted.

RESOLVED

That exempt appendix 1 in relation to agenda item 8 be noted.

There were no exempt items of urgent business.

NOTED

There were no exempt items of urgent business.

NOTED