Agenda, decisions and minutes

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 XX below. New items of exempt urgent business will be dealt with at Item XX below.

Members are invited to consider the guidance which accompanies this agenda and make declarations as appropriate.

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. In accordance with the Local Authorities (Executive Arrangements) (Meetings and Access to 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. 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  , and  :

No representations with regard to these have been received.

This is the formal 5 clear day notice under the Regulations to confirm that this Cabinet Procurement Committee meeting will be partly held in private for the reasons set out in this Agenda.  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, and  13:

No representations with regard to these have been received.

This is the formal 5 clear day notice under the Regulations to confirm that this Cabinet Procurement Committee meeting will be partly held in private for the reasons set out in this Agenda.

To confirm the unrestricted minutes of the meeting of Cabinet Procurement Committee held on

RESOLVED:

That the unrestricted minutes of the meeting of the Cabinet Procurement and Insourcing Committee held on 23 October 2023be agreed as a true and aaccurate record.

RESOLVED:

To increase the PAYG price per kWh charged by the Electric Vehicle Charge Point Operator (CPO), Zest Eco Ltd as per Table 1 in Appendix 2 ‘Proposed tariff increase’. The variation will take effect from 1 January 2024 until 31 December 2034.

That following the receipt by the Council of grant funding from the Local Electric Vehicle Infrastructure (LEVI) fund pilot scheme, award to Zest Eco Limited a contract for the delivery of 70 fast chargers and dedicated EV Car Club bays for a maximum value of five hundred thousand pounds (£500,000).

Reason(s) For Decision

1.  This report recommends Cabinet Procurement and insourcing Committee to agree to increase the PAYG price per kWh charged by the Electric Vehicle Charge Point Operator, Zest Eco Ltd.

2.  The price would be increased from the previously proposed PAYG price per kWh included in the cost submission from Zest in response to the procurement exercise, carried out between June 2021 and May 2022, to deliver and operate a network of Electric Vehicle Charging Points within the borough. (See Appendix 1 for cost submission). 

3.  The variation will take effect from 1 January 2024 until 31 December 2034.

4.  After 31 December 2034, the PAYG price will be reviewed by the Council and Zest and a new recommendation on price will be agreed in line with the existing contract terms and conditions.

5.  The setting of a new PAYG price will be consistent with the terms and conditions of the concessionaire contract. 

6.  As described in the Cabinet Member’s introduction, the unforeseen war in Ukraine and energy price shocks have redefined the wholesale market for energy and fundamentally affected the operating dynamics for Electric Vehicle Charge Point Operators (CPOs).

7.  Tender bids received in March 2022 required a maximum PAYG price submission that would be maintained for 2 years and then rise based on CPI +3% each year. The Contracting service accepts that there have been fundamental changes to the market and wholesale energy prices that are likely to make the original bids unviable for the CPOs

8.  Resetting the starting price per kilowatt  hour charged to the customer would allow the approved charge point operators to adjust to the current market conditions to ensure business viability and be able to deliver the agreed project outcomes and maintain the assets and service throughout the lifetime of the concession contract.

9.  EV charge point operator Zest has completed the Council’s ‘Variation to PAYG price’ form and provided the requested evidence in support of the request to vary the price per kWh included in the original cost submission. These forms are in Appendix 4 .

10.  EV charge point operator Zest has provided recent benchmarking to underpin their proposed starting price per kilowatt hour (see Appendix 3 for benchmarking). 

11.  The Council’s contract management mechanisms will be used as a way to flag any discrepancies in the current market price and the price per kWh charged to the customer if it is deemed that the CPO  ...  view the full decision text for item 7.

RESOLVED:

To approve the appointment of Bidder D to provide Multi- Disciplinary, Engineering and Technical Consultancy Services to the Council’s New Homes Programme, following a Restricted Tender Procedure under the Public Contracts Regulations 2015

To approve entering into a contract with Bidder D for a duration of three years to a value of  £2,922,650 excl VAT.

Reason(s) For Decision

1.  On 12 December 2022 Cabinet Approval was received for the New Homes Programme, as part of the Council’s ambitious plan to bring forward 1,000 new Council homes for social rent by 2026. The new programme includes 15 anchor site locations on Housing Revenue Account land identified through the Asset Review process as having the potential to accommodate new homes along with surrounding improvements. In order to progress to the design development and planning stages a series of consultant teams providing a full range of design and development professional services must now be assembled.

2.  This new programme of housing delivery is expected to provide over 400 new homes across the borough, enabling the Council to continue to address Hackney’s acute and ongoing crisis of housing affordability.

3.  The professional services included in this report are wide-ranging and in some cases highly specialist, including environmental consultants, mechanical and electrical engineers and specialist technical consultants in relation to building safety, fire engineering, highways and transport, ground conditions, ecology, trees and utilities, amongst other disciplines.

4.  The range of services and specialist expertise required is typical of the contemporary construction and housing development process. Careful consideration has been given particularly to securing appropriate expertise for the rapidly evolving building safety and sustainability contexts, and to maintaining industry best practice and implementing lessons learned from existing and previous regeneration programmes. 

5.  The December 2022 Cabinet approval provided budget and authority to commence design development work on the new sites and to submit planning applications. It requested a further report in due course on the proposed plan for construction delivery. The consultant services for procurement in this report reflect that position by including for services from RIBA Stage 0/1 (Initiation) to RIBA Stage 3+ (Developed Design, Planning and Tender).

6.  Whereas the in-house Asset Review Team and Regeneration Strategic Design (RSD) team have prepared initial project appraisals and capacity options for the sites, much more significant design development, site due diligence and technical work is now required to develop implementable and viable designs and to secure planning permissions. The Council does not have the in-house expertise nor capacity to undertake this specialist work directly therefore the only option is to procure these services from external consultants. This approach also has the advantage of securing the expertise and skills of sector leading designers and engineers to bring forward designs for high quality, sustainable, safe and affordable homes and places in Hackney.

7.  A detailed options appraisal on the structure of the consultant services across the new projects has been carried out, assessing key priorities and risks against a range of consultant team structures and contracting arrangements.  ...  view the full decision text for item 8.

RESOLVED:

To agree the extension of  the current Temporary Accommodation Dynamic Purchasing System for a period of up to four years, from 26th January 2024 to 26th January 2028.

Reason(s) for the Decision

1.  The DPS was procured in 2016, to replace two framework agreements (one each for stage 1 and stage 2 accommodation) which had been the source

of temporary accommodation suppliers for the Council. This model offered

an ineffective solution, as Frameworks are closed after the tender process,

restricting the service to only those providers appointed to the Framework.

The nature of the accommodation needs in Hackney meant that suppliers

were required urgently and this resulted in a large amount of off contract

spend as officers used non Framework providers to meet urgent need, which was either non-compliant (under Council Contract Standing Orders [CSOs], which state spend must be covered by a contract or a STA), or covered by a large number of Single Tender Actions (STAs).

2.  The Dynamic Purchasing System model offered a resolution to this issue, as suppliers can join a DPS at any stage of its duration, and can try again if their application fails. This allows for the service to encourage more suppliers to join the DPS, offering a wider variety of accommodation options, giving a more compliant solution and reducing off contract spend and STAs.

3.  The DPS system was then extended for a further three years. This was to

allow a comprehensive review of systems to take place which had been on

hold due to the resource impact of the Covid19 pandemic. This was agreed

at Cabinet Procurement Committee Meeting on the 7th December 2020.

4.  The DPS is currently divided into 4 categories based on the types of properties required by the Council. These categories are Bed and Breakfast, Hostels, Annexes and Private Sector Leased accommodation. During the 4 years of operation, the current DPS has seen bids from a wide variety of providers, including local small and medium enterprises and larger, national companies.

5.  This model will continue during the extension period. The volume of work under each category is reliant upon the requirements of residents being placed into temporary accommodation.

6.  The comprehensive review of systems that was due to take place has been disrupted by the impact of the cyber-attack. The key systems that were utilised by the Temporary Accommodation Team i.e. Temporary Accommodation Payment to Landlord (TAPL) and Universal Housing (UH)

were lost in the attack.

7.  Work is ongoing to build new systems to replace the manual processes that

are currently in place. Meaning at this time we are not in a position to

integrate any alternative property management system.

8.  The proposal is therefore to extend the current DPS contract by four years

to allow the new systems to be fully built and embedded into the Benefits &

Housing Needs Service.

9.  Following the new systems being embedded this will also allow time for a

further option appraisal to be carried out based on revised  ...  view the full decision text for item 9.

RESOLVED:

To note the update.

Note from the Governance Services Manager

Item(s) X & X 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 x-x 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

.