Issue - meetings

This report provides an update on the progress made with delivery of the pilot project to deep retrofit seven properties at Ockford Ridge and seeks Council approval of additional budget to enable completion of the project.

Recommendation

The Executive recommend to Full Council that an additional budget allocation of £784,000 is agreed for Phase 4 of the Ockford Ridge Regeneration Project, bringing the total allocated budget to £1.765m, to enable the deep retrofit of seven homes, piloting the use of green renewable energy sources and enhanced fabric, to proceed according to the previously approved specification as detailed in Exempt Annexes 1 – 4. 

100.1   The Mayor invited the Leader to introduce the report, and reminded Members that they should avoid referring to any matters set out in the Exempt papers whilst the meeting was in open session. The Leader moved the recommendations, which were duly seconded by Cllr Paul Rivers, Portfolio Holder for Housing Operations. The Leader commended the project to Council as one that would not only provide affordable and social housing, but truly sustainable affordable and social housing that would benefit residents and provide a huge amount of learning for the council.

100.2   Cllr Rivers reminded Council that there had been three previous phases of refurbishments with the Ockford Ridge regenerations programme. The concept for Phase 4 was to deliver refurbishments that were to the same standard as the new build homes, but without the demolition. The homes would contribute to the Council’s carbon net zero by 2030 target and benefit tenants directly with reduced energy costs. Inflationary pressure on costs since the original budget was agreed in February 2022 meant that there was a budget shortfall of £784,000 and the Executive was seeking Council agreement to release this sum from the major repairs reserve to enable the project to proceed. Cllr Rivers advised that based on the valuation for each of the seven properties, the retrofit would give an estimated combined increase in value of £595,000. A new valuation would be carried out when the work was near completion.

100.3   Cllrs Cosser, Peter Martin and Mulliner all noted concerns about the robustness of the tender evaluation, and value for money of the scheme. Cllr Anna James and Cllr Jerry Hyman also expressed reservations. Cllr Richard Seaborne noted the responses by officers to questions raised by the Overview & Scrutiny Committee, and that the project should result in seven homes ‘as good as new’ but 20% less cost than a new build of equivalent standard. Whilst the costs were high, and he hoped that they would come down, he did not consider they were out of line for a full energy-efficient retrofit.

100.4   The Leader responded to a number of points made including how the collection of energy data would be part of the tenancy agreement for new tenants, and how the project would cost less if the aims were lowered. The Leader again commended the recommendation to Council.

100.5   The Mayor put the recommendation to the vote, which was carried by 35 votes in favour, 4 votes against, and 1 abstention. Council therefore

RESOLVED that that an additional budget allocation of £784,000 be agreed for Phase 4 of the Ockford Ridge Regeneration Project, bringing the total allocated budget to £1.765m, to enable the deep retrofit of seven homes, piloting the use of green renewable energy sources and enhanced fabric, to proceed according to the previously approved specification as detailed in Exempt Annexes 1 – 4.

Purpose and summary of the report:

·         To update members on the progress made with delivery of the pilot project to deep retrofit seven properties at Ockford Ridge. A pilot project that will contribute to the Council’s environmental and sustainability objectives and aim to become a net zero-carbon council by 2030 through the delivery of affordable homes which are more sustainable and energy efficient than they are at present. At the same time improving quality of life and reduce fuel poverty for future tenants by using renewable energy sources (air source heat pump / photovoltaic cells (PV’s)) and reducing the overall heat demand through the provision of additional external wall and internal floor and roof insulation and modern A+ rated double glazed windows. Electric vehicle charging points will be installed where the properties have off street parking.

·         Advise members on:

o   the outcome of the procurement process to identify a build contractor

o   background to the request for additional budget to complete the proposed pilot and

o   options considered to reduce the costs

·         Seek Executive approval to enter into contract to deliver the pilot project.

Recommendation

The Executive, after considering the report and annexes and comments of the O&S Resources Committee as detailed in the Consultation and Engagement section of this report,

1.            Recommend to Full Council that an additional budget allocation of £784,000 is agreed for Phase 4 of the Ockford Ridge Regeneration Project, bringing the total allocated budget to £1.765m, to enable the deep retrofit of seven homes, piloting the use of green renewable energy sources and enhanced fabric, to proceed according to the previously approved specification as detailed in Exempt Annexes 1 – 4; and

2.            Subject to the agreement of Full Council of the additional budget allocation, approves:

i.             Entering into a contract with the preferred contractor for the delivery of the works;

ii.            Entering into any related contractual documentation (including collateral warranties or agreements) relating to the project; and

iii.          Giving delegated authority to the Executive Head of Legal and Democratic Services to approve the final form of legal agreements.

The Executive RESOLVED,

1.            To recommend to Full Council that an additional budget allocation of £784,000 be agreed for Phase 4 of the Ockford Ridge Regeneration Project, bringing the total allocated budget to £1.765m, to enable the deep retrofit of seven homes, piloting the use of green renewable energy sources and enhanced fabric, to proceed according to the previously approved specification as detailed in Exempt Annexes 1 – 4; and

2.            Subject to the agreement of Full Council of the additional budget allocation, approved the following:

i.             Entering into a contract with the preferred contractor for the delivery of the works;

ii.            Entering into any related contractual documentation (including collateral warranties or agreements) relating to the project; and

iii.          Giving delegated authority to the Executive Head of Legal and Democratic Services to approve the final form of legal agreements.

Reason: The Council has already committed to the delivery of the regeneration of the Ockford Ridge estate which includes both regeneration and refurbishment of homes. To date, three phases of refurbishment have been completed and a budget of £981,000 was approved at full Council in February 2022 to deliver this next phase. The project will deliver modern, safe, and secure, sustainable homes and support delivery of the Council’s Corporate Strategy 2020 – 2025, Climate Change and Sustainability Strategy 2020 - 2030, Carbon Neutrality Action Plan 2020 - 2030 and Housing Asset Management Strategy 2022-2030 commitments and targets. The next phase of retrofit at Ockford Ridge provides the opportunity to implement a pilot which takes the whole house retrofit approach with an enhanced fabric using external and floor insulation and replacement of the use of fossil fuels with green renewable energy sources and technology.

[This matter has already been considered by the Resources O&S Committee and is recommended to Council for decision.]

Cllr Paul Rivers, Co-Portfolio Holder for Housing (Operations), introduced the report on the Ockford Ridge Refurbishment Phase 4 project, and thanked the Overview & Scrutiny Committee – Resources for their observations and recommendations.

The full response to the Overview & Scrutiny was quite lengthy, and he would provide this for the Minutes, but in short he was largely comfortable to accept the recommendations, some of which had now been incorporated into the agenda report. With regard to the project title, and the balance of costs between refurbishment and new technology, Cllr Rivers felt that this ignored the contribution of the refurbished ‘fabric’ of the homes in relation to the green technology pilot. Green technology was not just heat pumps or PV panels. However, Cllr Rivers was proposing a minor change to the project title, to Ockford Ridge Refurbishment Phase 4 – Deep Retrofit with Green Technology Pilot.

Executive Members also noted the thoroughness of the procurement process that had been undertaken which had resulted in two valid tender returns, which were assessed on the basis of price and quality.

The Executive RESOLVED,

1.            To recommend to Full Council that an additional budget allocation of £784,000 be agreed for Phase 4 of the Ockford Ridge Regeneration Project, bringing the total allocated budget to £1.765m, to enable the deep retrofit of seven homes, piloting the use of green renewable energy sources and enhanced fabric, to proceed according to the previously approved specification as detailed in Exempt Annexes 1 – 4; and

2.            Subject to the agreement of Full Council of the additional budget allocation, approved the following:

i.             Entering into a contract with the preferred contractor for the delivery of the works;

ii.            Entering into any related contractual documentation (including collateral warranties or agreements) relating to the project; and

iii.          Giving delegated authority to the Executive Head of Legal and Democratic Services to approve the final form of legal agreements.

Reason: The Council has already committed to the delivery of the regeneration of the Ockford Ridge estate which includes both regeneration and refurbishment of homes. To date, three phases of refurbishment have been completed and a budget of £981,000 was approved at full Council in February 2022 to deliver this next phase. The project will deliver modern, safe, and secure, sustainable homes and support delivery of the Council’s Corporate Strategy 2020 – 2025, Climate Change and Sustainability Strategy 2020 - 2030, Carbon Neutrality Action Plan 2020 - 2030 and Housing Asset Management Strategy 2022-2030 commitments and targets. The next phase of retrofit at Ockford Ridge provides the opportunity to implement a pilot which takes the whole house retrofit approach with an enhanced fabric using external and floor insulation and replacement of the use of fossil fuels with green renewable energy sources and technology.