REPORT TO DIRECTOR AND LEAD MEMBER HOUSING SERVICES SUBJECT: OUTCOME OF CONTRACT NEGOTIATIONS WITH HOMELINK TECHNOLOGIES IN RELATION TO THE PROVISION OF HOUSE ALARMS PREPARED BY: NIGEL SEDMAN 31ST AUGUST 2001. BACKGROUND For a number of months Salford Housing Services has been attempting to conclude an agreement with Homelink Technologies to provide House Alarms for the Valley Estate in Swinton and for the Littleton Road Estate, There have been a number of areas of the contract where Salford could not agree to the terms proposed by Homelink as this would subject the Authority to unnecessary risk. In addition, due to the fact that Homelink are a new company without accounts or assets it was considered necessary that they should provide a performance bond. This would protect the Authority and guarantee the performance of the service in case Homelink went into liquidation and also cover any resulting costs. PRESENT SITUATION Progress has now been made in relation to the items outlined above as follows: The contract conditions have now virtually been agreed between the City of Salford and Homelink Technologies. The content of the contract is fair and reasonable for both parties. Homelink appear able to provide a performance bond and this fact has been confirmed in writing by their bankers. Due to the requirement to provide a bond Homelink have submitted revised prices for the alarm. Generally the bond requirement has added 80 pence per alarm per week. Also the alarm specification packages to be offered to tenants have been clarified and defined in detail. The content of the packages and the associated prices are set out in the table below: PACKAGE CONTENT Control panel. 2nr fobs. Communications box. Dummy external box. 2 PIR’s. 2 door contacts. HOMELINK PRICE PER WEEK PRICE WITH MONITORING CHARGE CHARGE FOR 48 WEEK RENTAL PERIOD 3.20 3.70 4.01 As the above package but with additional panic wrist alarm. Communications box. Dummy external box. 3.35 3.85 4.17 2.30 2.80 3.03 Julie Dodd of benefits has been consulted over the above prices and considers that the charges will satisfy the conditions for eligibility for housing benefit. It is proposed that after 2 years the financial standing of Homelink will be assessed and if they are in a stable trading position we may remove the requirement for a performance bond which will in turn reduce the charges to tenants. RECOMMENDATIONS That we move forward based on the above packages and prices. This process will involve: 1. Confirming with Law and Administration that the final content of the contract is acceptable. 2. Sending out the consultation letter to the tenants on the Valley and Littleton Road estates. 3. Waiting 21 days to receive comments from tenants, and incorporating any amendments to the proposed service contract as necessary. 4. Signing the contract with Homelink. 5. Homelink will start fitting alarms 2 weeks after item 4 and complete the process of fitting to the 990 properties in question within a 6 week period. Signed ..........................................………Dated................................... Director Signed .............................................……. Dated ...................................... Lead Member Signed .............................................……..Dated………………………….. Deputy Lead Member Contact Officer: Nigel Sedman Tel: No: 925 1290 * This decision is not subject to consideration by another Director.