39.1 The Leader moved the recommendations of the Executive, duly seconded by Councillor Clark, and invited Co-Portfolio Holder for Housing, Cllr Paul Rivers, to introduce the report on behalf of Councillor Palmer.
39.2 Councillor Paul Rivers reminded Members that Council had approved the Business Case for the delivery of 26 new homes at its meeting on 13 December 2022. Following further work in construction design, the receipt of detailed information from the utility companies, and other work to de-risk the project, additional budget was required to ensure that the contingency remained in place prior to entering into contract. The exempt annexe illustrated that the scheme remained financially viable and was consistent with the strategic priority to provide good quality housing for all income levels by delivering twenty-one homes for rent and five shared ownership homes. Members’ attention was drawn to the increase over the past year in applicants on the housing register from 1066 to 1180.
39.3 Councillor Busby spoke in support of the recommendations and thanked local residents for their patience whilst waiting for the redevelopment. The Council was now in a position to enter into contract with Feltham Construction Ltd after the unfortunate and unforeseen delays caused by the previous contractor going into administration. The Business Case remained sound and the homes would contribute to local housing need in alignment with the Neighbourhood Plan.
39.4 Councillors Goodridge and Atkins spoke in support of the recommendations but sought clarification that the development would be funded by the Housing Revenue Account reserve, and whether the revised scheme cost included the cost of the land. Councillor Hyman concurred and cautioned that the Council had to be mindful of the risk of increasing development costs overall and should where possible consult with local residents about developments in their area.
39.5 Councillor Spence expressed concern that the original contractor had gone into administration and sought assurance that the Council had mitigation in place, such as a surety bond, with the proposed contractor. At the invitation of the Mayor, Officers clarified that the previous contractor had gone into administration prior to a JCT Contract being in place. The resolution from the Executive on 1 August 2023 authorised a JCT Contract to be entered into with Feltham Construction Ltd.
39.6 The Leader echoed Councillor Busby’s gratitude to residents for their patience as the national economic challenges caused by the pandemic had led to the failure of the original contractor, and many other similar businesses. Members were assured that the Council would continue to consult and inform residents, and that the resolution would be clear that the development was funded from the Housing Revenue Account Reserve.
39.7 In summing up, Councillor Paul Rivers re-emphasised that the project aimed to increase the number of affordable homes available for those that were in housing need and registered on the Council’s housing register.
39.8 Upon being put to the vote, Council RESOLVED unanimously that an allocation of an additional £402,332 budget from the Housing Revenue Account reserve be approved to enable the delivery of 26 new homes in Chiddingfold.
The Executive RESOLVED to:
i. enter into a contract with the preferred contractor Feltham Construction Limited for the delivery of the works.
ii. give delegated authority to the Executive Head of Legal and Democratic Services to approve the final form of any legal agreements and to Strategic Director (Place) to enter into the JCT Contract.
iii. give delegated authority to the Strategic Director (Place) to approve pre contract agreements with the preferred contractor to enable the development of the project and authorise spend in accordance with the budget.
iv. give delegated authority to the Strategic Director (Place) to enter into any related contractual documentation (including collateral warranties or agreements) relating to the project.
v. give delegated authority to the Strategic Director (Place) to enter into any ancillary agreements related to the project provided that these are within the project budget.
vi. approve the sale of five shared ownership homes to be delivered on the Chiddingfold sites with the Executive Head of Housing Services in consultation with Co-Portfolio Holders for Housing (Delivery, and Operations) authorised to approve the final terms of such sales having regard to market value; and the Executive Head of Legal and Democratic Services authorised to approve the final form of the sale agreements and any ancillary related legal agreements.
vii. give delegated authority to the Executive Head of Housing Services in consultation with the Co-Portfolio Holders for Housing (Delivery, and Operations) to approve the future sale of percentage shares.
The Executive further RESOLVED to recommend to Council that an allocation of an additional £402,332 budget from reserves is approved.
Reasons for the decisions:
1. The Executive and Full Council have previously approved the Business Cases for each of the five sites and the recommended authority is required to enter into the contract with a build contractor and approve additional budget to facilitate delivery of the new homes on these sites through one JCT Design and Build Contract. Through delivery of the project there may be a requirement to enter into project related contractual documents or ancillary agreements.
2. The Waverley Corporate Strategy 2020-2025 sets out the Vision and Strategic Priorities for the Council. One of the strategic priorities is to ‘provide good quality housing for all income levels.’
3. Build More, Build Better, Build for Life Affordable Homes Delivery Strategy 2022 – 2025 sets out the Council’s commitment to build homes to buy or rent for households from all income levels. The strategy has been supported by evidence studies including the Waverley Housing Affordability Study 2021.
4. Delivery of 26 homes at Chiddingfold including five shared ownership homes meets these priorities and commitment
[Overview and Scrutiny Committee – Resources]