PART 1 (OPEN TO THE PUBLIC) ITEM NO. REPORT OF THE LEAD MEMBER FOR HOUSING SERVICES TO THE CABINET ON 6 February 2001 TITLE : Proposed Renewal Areas in Broughton – Appointment of consultants RECOMMENDATIONS : That members approve the appointment of consultants other then those submitting the lowest tender price for the work. EXECUTIVE SUMMARY : Consideration is being given to the declaration of one or more Renewal Areas within the Higher Broughton area under the provisions of the Local Government and Housing Act 1989. The Act requires the City Council to carry out a detailed assessment of the area and extensive consultation of residents and other stakeholders before it can declare such Renewal Areas. The contract to carry out this work on the Council’s behalf was put out to tender in compliance with the provisions of Standing Orders and a shortlist of three firms of consultants were invited to make presentations to a panel of senior officers chaired by the Director of Housing Services. The bids were as follows Consultant A - Penningtons FMCS Ltd - £49,400 Consultant B – David Adamson and Partners - £68,250 Consultant C – Rodney Dykes Housing Services Ltd - £107,000 Following these presentations it was felt that the bid by Consultant B, although not the lowest priced, represented best value to the City Council. D:\219513310.DOC BACKGROUND DOCUMENTS : Tender Brief for the appointment of consultants to carry out a Neighbourhood Renewal Assessment within Higher Broughton. (Available for public inspection) CONTACT OFFICER : John Wooderson, Head of Private Sector Housing WARD(S) TO WHICH REPORT RELATE(S) Broughton, Kersal. KEY COUNCIL POLICIES Housing Strategy, Regeneration Strategy, SRB II DETAILS (Continued Overleaf) Consideration is being given to the declaration of 2 Renewal Areas in Broughton, subject to the outcome of neighbourhood renewal assessments to be carried out by consultants. These assessments are a pre-requisite and are carried out to identify the circumstances and needs of the areas, in order to establish whether the declaration of a Renewal Area would be appropriate. The declaration of one or more Renewal Areas would allow the Local Authority greater flexibility to spend money from the Private Sector Housing Capital program, including the ability to offer more attractive terms to participants in Group Repair Schemes. It would also allow the Authority to make use of additional Compulsory Purchase and Clearance powers under the Local Government and Housing Act 1989. Although the declaration of a Renewal Area does not automatically result in additional Government funding, such a declaration does clearly identify an area as a strategic priority for the Authority and would act as a focus for corporate working and investment. In addition, it is anticipated that Renewal Area status would attract private investment to the area and serve as a focus for a corporate response to the relevant issues. The extent of the work involved in carrying out the statutory process leading to the declaration of a Renewal Area is lengthy, complex and staff intensive. In order to facilitate the completion of the work within a reasonable timescale it was felt that the appointment of consultants was appropriate. Therefore, the contract for carrying out the required work was put out to tender in accordance with the provisions of the City Council’s Standing Orders. As part of the selection process resulted in three firms of consultants being invited to make presentations to a panel of senior officers chaired by the Director of Housing Services. The panel included officers from Development Services, Social Services and Education directorates in addition to the Housing D:\219513310.DOC Staff present. Each company was given the opportunity to make a short presentation followed by a number of questions from the panel, they were then assessed against the following criteria: price/value completeness of bid experience quality of bid deliverability technical ability. Consultant A was the most expensive by a considerable margin, this resulted in a very poor score for price/value which precluded their appointment despite an otherwise good quality submission. Consultant C, although the least expensive, performed poorly both in terms of their presentation and responses to questions from the panel. This lead in poor scores being achieved for completeness of bid, quality of bid and deliverability. These reflected the concerns of members of the panel that, although strong on technical and physical issues, the consultant to had failed to fully address the wide range of social and economic challenges facing Broughton. It was felt that Consultant B’s written submission, presentation and responses to questions from the panel demonstrated an understanding of the challenges facing the area as well as the technical ability to complete the necessary processes together with a cost that was acceptable. The members of the panel therefore recommended the appointment of consultant B on the ground that although their tender is not the lowest it does represent best value to the City Council. Members should be aware that consultant B has recently been awarded the contract to carry out a citywide survey of house conditions in private sector. There are areas of potential savings due to overlaps between the two pieces of work which would be the subject of negotiations should the recommendations of this report be approved. Officers would seek to secure either a reduction in costs to the City Council of the Renewal Area study or additional value, such as the preparation of limited urban design proposals for parts of the area, within the current tender price. D:\219513310.DOC