Issue - items at meetings - Provision of the Commercial Portfolio’s Estate Management Consultancy Contract

Report of the Strategic Director, Resources (copy attached).

(1)         That Cabinet authorises:

(a)         The retendering of the Estate Management consultancy service for the commercial Urban portfolio, for a 5 year period, with an option for up to a 2 year extension. The timetable and process, are set out in paragraph 3.13 and Appendix 2.

(b)         The granting of delegated powers to the Strategic Director, Resources in consultation with the Cabinet Member for Finance and Central Services to, a) award the contract following the recommendations of the evaluation panel and the results of the tendering process and b) approve an extension of up to 2 years to the contract if required dependent on performance.

(c)         That the tender specifications be reviewed to ensure a quality service monitored by specific performance indicators with a positive attitude to income generation.

(2)         That Cabinet considers the options of continuing to outsource or agrees to bringing in-house the estate management of the Downland Estate as set out in the body of the report, and agrees on a way forward.

(3)         That in the event that Cabinet decides on the outsourcing option for the estate management of the Downland Estate, Cabinet grants the corresponding authorisations as per 2.1 a), b) and c) above for the retendering of the Estate Management consultancy service for the Downland Estate.

44.1         The Cabinet considered a report of the Strategic Director, Resources concerning a review of the method of service provision of the Estate Management consultancy contract for the council’s Commercial portfolio.

44.2         Councillor J Kitcat explained that the council’s commercial portfolio was currently managed in two parts with separate external consultants managing the Urban and Downland Estates portfolios respectively. He advised that the Cabinet was seeking to bring the estate management of the Downland Estate in-house to enable increased control and allow the council to have greater influence in implementing a revised Downland Initiative policy.

44.3         Councillor West stated that the advent of the South Downs National Park had brought many new opportunities, including the potential to improve access, increase eco-tourism and provide new employment prospects.  By bringing the Downland Estate management in-house the council would be able to achieve closer  management of such opportunities.

44.4         Councillor Peltzer Dunn requested that the meeting move into confidential session as he wished to request more detailed financial information, which could be commercially sensitive.

44.5         Councillor J Kitcat stated that adequate financial information had been included in the report and explained that the Cabinet was seeking to agree to tender for management of the Urban portfolio and not to tender for the management of the Downland portfolio; a decision on how to proceed with the structures for management of the Downland portfolio was not included in the report.

44.6         In response to a question from Councillor Peltzer Dunn, Councillor J Kitcat advised that a seafront surveyor had already been employed, but that the council would need to recruit staff to ensure that it had the necessary expertise available in-house.

44.7         Councillor Mitchell raised concerns about the decision to bring the management of the Downland portfolio in-house based on the information in the report and the risks posed to the Council; she advised the Cabinet to be mindful of its duty to its tenant farmers. She stated that it was unsafe to make such a decision while the costs remained unclear and that the benefits must be demonstrated to the taxpayer before proceeding.

44.8         Councillor Peltzer Dunn queried the lack of a strategy for the in-house management of the Downland portfolio and the need for more detailed financial information.

44.9         The Chair stated that the Administration felt it necessary to bring the management of the Downland portfolio in-house to make the most of the opportunities presented by the South Downs National Park and that he was confident it would be successful. He stated that  the necessary financial information was included in the report and that a detailed strategy would be drawn up.

44.10    Councillor J Kitcat explained that closer control of the Downland portfolio was key to the Administration’s plans to create a biosphere reserve and that it would bring significant opportunities for external funding and benefits for the city. He reiterated that the Cabinet was simply agreeing not to tender for the management of the Downland portfolio and that structures for the in-house management would be considered by the Cabinet at a future meeting.

44.11    In response to comments from Councillor Peltzer Dunn, the Head of Legal & Democratic Services advised that recommendation 2.2 presented the Cabinet with two options and that Councillor J Kitcat had moved a motion to bring management of the Downland portfolio be in-house. He stated the revised wording of recommendation 2.2, to reflect Councillor J Kitcat’s motion, would be: “That Cabinet agrees to bring in-house to bring the estate management of the Downland Estate as set out in the body of the report”  and advised that recommendation 2.3 had become obsolete.

44.12    Councillor J Kitcat noted that a revised version of Appendix 2 had been circulated.

44.13    The Chair put the recommendations, including the revised wording of paragraph 2.2 to the vote.

44.14    RESOLVED – That, having considered the information and the reasons set out in the report, the Cabinet accepted the following recommendations:

(1)         That Cabinet authorises:

(a)         The retendering of the Estate Management consultancy service for the commercial Urban portfolio, for a 5 year period, with an option for up to a 2 year extension. The timetable and process, are set out in paragraph 3.13 and Appendix 2.

(b)         The granting of delegated powers to the Strategic Director, Resources in consultation with the Cabinet Member for Finance and Central Services to, a) award the contract following the recommendations of the evaluation panel and the results of the tendering process and b) approve an extension of up to 2 years to the contract if required dependent on performance.

(c)         That the tender specifications be reviewed to ensure a quality service monitored by specific performance indicators with a positive attitude to income generation.

(2)         That Cabinet considers the options of continuing to outsource or agrees to bringing in-house the estate management of the Downland Estate as set out in the body of the report, and agrees on a way forward.

(3)         That in the event that Cabinet decides on the outsourcing option for the estate management of the Downland Estate, Cabinet grants the corresponding authorisations as per 2.1 a), b) and c) above for the retendering of the Estate Management consultancy service for the Downland Estate.