Agenda item

RESOLVED:

1.    That Cabinet grants approval to proceed with the design and construction of Extra Care Housing at three identified Council-owned sites in Reigate and Banstead, Runnymede and Tandridge within the capital funding envelope set out in the Part 2 report. The sites are as follows:

·         Former Orchard Court Care Home, East Grinstead Road, Lingfield, RH7 6ET 

·         Former Birchlands Care Home, Barley Mow Road, Englefield Green, Egham, TW20 0NP

·         Colebrook, Noke Drive, Redhill, RH1 1PT 

2.    That Cabinet approves external delivery of affordable Extra Care Housing at the three sites through a tender for a strategic development and housing management partner(s) as the preferred option. This will be in the form of a design, build, fund and operate (DBFO) model.

3.    That Cabinet grants delegated authority for contract award to the following Council officers:

·         Deputy Chief Executive and Executive Director for Resources in consultation with the Cabinet Member for Resources and Cabinet Member for Property and Waste.

·         Executive Director for Adult Social Care in consultation with Cabinet Member for Adult Social Care.

·         Director, Land and Property.

4.    That Cabinet notes that a separate procurement process will be conducted to identify onsite support and care provision to avoid long-term support and care provision being tied into the development and housing management contract. 

Reasons for Decisions:

The development of Extra Care Housing on the three sites set out in this report will represent an important contribution towards the Council’s strategic objective to expand affordable Extra Care Housing provision by 2030.

Tendering for a strategic development and housing management partner(s) to take forwards the development of Extra Care Housing on the sites is consistent with previous decisions made by Cabinet. In October 2019, July 2020, October 2020 and July 2022 Cabinet agreed to identify a strategic partner(s) for the development and housing management of Extra Care Housing at the former Pond Meadow School, the former Brockhurst Care Home, the former Pinehurst Care Home, Cuddington (formerly known as Salisbury Road), Lakeside and Bentley sites through tendering processes.

There are multiple benefits for the Council from developing Extra Care Housing on the sites. These include:

• Accessing economies of scale from delivering Extra Care Housing across more settings, which is likely to lead to a more commercially favourable response for the Council.
• Fulfilling significant resident demand for affordable specialist accommodation in the districts.
• Limiting the capital investment required by the Council and in doing so limiting the costs of borrowing within the Council’s Medium Term Financial Strategy.
• The new Extra Care Housing settings will house residents from existing affordable housing as well as residential care settings, which will free up availability of affordable housing within the local districts and boroughs.

This is consistent with our ASC vision for development of Extra Care Housing, which has been clearly communicated through market and stakeholder engagement.

The other option available is for the Council to directly deliver the Extra Care Housing scheme at the sites. This would involve the Council committing significant capital expenditure and be responsible for the ongoing housing management function of the Extra Care Housing settings. This option is not recommended as it is anticipated to be significantly less financially beneficial to the Council and would likely take longer to deliver given that there is already a well-established approach for the Council tendering for a strategic development and housing management partner on a DBFO basis. Financial modelling for both options is commercially sensitive at this time and is set out in the Part 2 report.

(The decisions on this item can be called-in by the Adults and Health Select Committee)

The report was introduced by the Cabinet Member for Adults and Health who explained that the report being presented set out Surrey County Council’s proposed delivery approach for three sites proposed for Extra Care Housing and will form Phase 2 of the delivery programme. The development of Extra Care Housing on the three sites set out in this report would represent an important contribution towards the Council’s strategic objective to expand affordable Extra Care Housing provision by 2030. Tendering for a strategic development and housing management partner(s) to take forwards the development of Extra Care Housing on the sites is consistent with previous decisions made by Cabinet. The Cabinet Member for Property and Waste provided the Cabinet with an update on the design and build programme for the three identified sites. The Cabinet Member for Environment commented that she was grateful that the Former Birchlands Care Home would be used extra care housing.

RESOLVED:

1.    That Cabinet grants approval to proceed with the design and construction of Extra Care Housing at three identified Council-owned sites in Reigate and Banstead, Runnymede and Tandridge within the capital funding envelope set out in the Part 2 report. The sites are as follows:

·         Former Orchard Court Care Home, East Grinstead Road, Lingfield, RH7 6ET 

·         Former Birchlands Care Home, Barley Mow Road, Englefield Green, Egham, TW20 0NP

·         Colebrook, Noke Drive, Redhill, RH1 1PT 

2.    That Cabinet approves external delivery of affordable Extra Care Housing at the three sites through a tender for a strategic development and housing management partner(s) as the preferred option. This will be in the form of a design, build, fund and operate (DBFO) model.

3.    That Cabinet grants delegated authority for contract award to the following Council officers:

·         Deputy Chief Executive and Executive Director for Resources in consultation with the Cabinet Member for Resources and Cabinet Member for Property and Waste.

·         Executive Director for Adult Social Care in consultation with Cabinet Member for Adult Social Care.

·         Director, Land and Property.

4.    That Cabinet notes that a separate procurement process will be conducted to identify onsite support and care provision to avoid long-term support and care provision being tied into the development and housing management contract. 

Reasons for Decisions:

The development of Extra Care Housing on the three sites set out in this report will represent an important contribution towards the Council’s strategic objective to expand affordable Extra Care Housing provision by 2030.

Tendering for a strategic development and housing management partner(s) to take forwards the development of Extra Care Housing on the sites is consistent with previous decisions made by Cabinet. In October 2019, July 2020, October 2020 and July 2022 Cabinet agreed to identify a strategic partner(s) for the development and housing management of Extra Care Housing at the former Pond Meadow School, the former Brockhurst Care Home, the former Pinehurst Care Home, Cuddington (formerly known as Salisbury Road), Lakeside and Bentley sites through tendering processes.

There are multiple benefits for the Council from developing Extra Care Housing on the sites. These include:

• Accessing economies of scale from delivering Extra Care Housing across more settings, which is likely to lead to a more commercially favourable response for the Council.
• Fulfilling significant resident demand for affordable specialist accommodation in the districts.
• Limiting the capital investment required by the Council and in doing so limiting the costs of borrowing within the Council’s Medium Term Financial Strategy.
• The new Extra Care Housing settings will house residents from existing affordable housing as well as residential care settings, which will free up availability of affordable housing within the local districts and boroughs.

This is consistent with our ASC vision for development of Extra Care Housing, which has been clearly communicated through market and stakeholder engagement.

The other option available is for the Council to directly deliver the Extra Care Housing scheme at the sites. This would involve the Council committing significant capital expenditure and be responsible for the ongoing housing management function of the Extra Care Housing settings. This option is not recommended as it is anticipated to be significantly less financially beneficial to the Council and would likely take longer to deliver given that there is already a well-established approach for the Council tendering for a strategic development and housing management partner on a DBFO basis. Financial modelling for both options is commercially sensitive at this time and is set out in the Part 2 report.

(The decisions on this item can be called-in by the Adults and Health Select Committee)