Issue - meetings

Report of Head of Regeneration and Housing

Purpose of report

To update on the progress being made in respect of completing works and achieving a resolution to issues impacting on the delivery of schemes contained within the Solihull Partnership arrangements approved in January 2016.

Recommendations

The meeting is recommended:

1.1       To note the progress being made towards achieving completion of the maximum number of projects between December 2016 and 31 March 2017.

1.2.      To note the management intervention taken and request that Executive support the implementation of an intensive project management approach in respect of those schemes being completed by SMBC and the revised programme.  And further note that costs are intended to be recovered, although the split between utilising elements of the management fee previously allocated to SMBC for the original programme and those additional procurement costs to complete schemes through CDC resources have yet to be finally agreed.  These negotiations should be concluded at the Commercial Meeting on 17 January 2017.

1.3       To support a “mixed approach” to the delivery of remaining schemes so that those schemes not being completed through SMBC can, if necessary, be procured through CDC’s own resources and delivered within budgets approved.

Resolved

(1)          That the progress being made towards achieving completion of the maximum number of projects between December 2016 and 31 March 2017 be noted.

(2)          That the management intervention taken be noted and the implementation of an intensive project management approach in respect of those schemes being completed by Solihull Metropolitan Borough Council (SMBC) and the revised programme be supported and it be further noted that costs are intended to be recovered, although the split between utilising elements of the management fee previously allocated to SMBC for the original programme and those additional procurement costs to complete schemes through CDC resources have yet to be finally agreed.  These negotiations should be concluded at the Commercial Meeting on 17 January 2017.

(3)          That a “mixed approach” to the delivery of remaining schemes be supported so that those schemes not being completed through SMBC can, if necessary, be procured through CDC’s own resources and delivered within budgets approved.

The Head of Regeneration and Housing submitted a report to update on the progress being made in respect of completing works and achieving a resolution to issues impacting on the delivery of schemes contained within the Solihull Partnership arrangements approved in January 2016.

Resolved

(1)          That the progress being made towards achieving completion of the maximum number of projects between December 2016 and 31 March 2017 be noted.

(2)          That the management intervention taken be noted and the implementation of an intensive project management approach in respect of those schemes being completed by Solihull Metropolitan Borough Council (SMBC) and the revised programme be supported and it be further noted that costs are intended to be recovered, although the split between utilising elements of the management fee previously allocated to SMBC for the original programme and those additional procurement costs to complete schemes through CDC resources have yet to be finally agreed.  These negotiations should be concluded at the Commercial Meeting on 17 January 2017.

(3)          That a “mixed approach” to the delivery of remaining schemes be supported so that those schemes not being completed through SMBC can, if necessary, be procured through CDC’s own resources and delivered within budgets approved.

Reasons

The series of projects allocated to SMBC should have been more intensively managed. Lessons however have been learnt and the actions indicated above in this report are now aimed at delivering the maximum number of schemes and therefore expenditure of approved budget by 31 March 2017.

Officers have jointly agreed with SMBC the most effective approach to maximise delivery and a critical review of projects to complete has been undertaken. This combined with the improved governance, member oversight and increased reporting process should enable effective and transparent monitoring of progress.

Overall, the stated objective of delivering these projects and keeping costs within the approved capital programme is still the primary objective. The final arrangements with SMBC in terms of reviewing the management fee etc. will be concluded at the Commercial meeting on 17 January 2017. A full detailed financial breakdown of how all costs are to be met to complete delivery of schemes will then be available for members’ scrutiny.

The final legal position will be concluded after clarification of roles and responsibilities and again this will be subject to Member scrutiny once agreement has been reached.      

Alternative options

The information contained within the report aims at realistically achieving the best outcome in terms of scheme delivery through to 31 March 2017.