AGENDA ITEM 6
BOROUGH OF POOLE
CABINET
17th JULY 2007
MANNINGS HEATH GYPSY AND TRAVELLER SITE REDEVELOPMENT
1.PURPOSE AND POLICY CONTENT
The purpose of this report is to: -
1.1Request allocation of fees for feasibility funding for redevelopment of the Mannings Heath Gypsy and traveller site.
2.DECISIONS REQUIRED
2.1.Cabinet is asked to agree to allocate £142,000 from Housing and Community Service Approved Capital Allocation to enable design and tender work to take place in advance of the bid for Gypsy and Traveller site funding in September 2007.
2.2.Cabinet is asked to agree that a bid is made in September 2007 for Gypsy and traveller site grant subject to determining that estimated costs for the Council do not exceed £ 79,000.
- BACKGROUND
3.1.Following the Housing act 2004 and the Circular 01/2006 “ planning for gypsy and traveller caravan sites” the Council has an obligation to assess and plan for gypsy and traveller accommodation needs.
3.2.An independent study of Gypsy and traveller accommodation needs has been undertaken across Dorset. This has estimated the need for up to 47 permanent pitches to be made available by 2011. The majority of that estimated demand ( 30 pitches) arose from an estimate of the number of Gypsy and traveller households who are currently housed in bricks and mortar who would move to a good quality site well managed in the locality.
3.3.Community support overview Group considered the proposals to bid for Gypsy and traveller site grant at its meeting on the 15th November . Cabinet considered this and agreed that a bid should be made with final costs to be signed off by portfolio holder on the 5th December 2006. Both decisions were made on the basis that there would be no direct cost to the Council.
3.4.An expression of interest was made to the Communities and Local Government Department in on the 28th February 2007. This was intended to get feedback so that a bid could be made in September 2007. the proposal is to redevelop the site to provide 16 new pitches to the new Government guidance. The current proposal includes stopping up the current entrance to the site from Manning Heath road and providing new access into the site from Yarrow road. It also includes removal of spoil from the site and provision of an amenity building on each pitch including a kitchen, bathroom, separate W.C. ,and a dining area. The estimated cost for each amenity building is currently over £ 40,000.
3.5.The estimated cost of the scheme to redevelop the site and funding is set out below based on current estimates from Property services.
Element / Cost £’000’sTotal cost of works / 1,572
Fees @ 15% / 236
Total scheme costs / 1,808
Financing
Gypsy and traveller grant for cost of works / 1,572
Gypsy and traveller grant for fees @ 10% / 157
Borough of Poole funding / 79
Total finance / 1,808
3.6.The Gypsy and traveller grant will meet 100% of the cost of works. However, it will only meet fees up to 10% of the cost of works. As Property services are suggesting that the project will generate fees closer to 15% the additional 5% fee will fall as a cost to the Council. This equates to £ 79,000. The total gypsy and traveller site grant that will be made available based on these estimates would be £ 1,729,000.
3.7.In addition there will be a need to incur the fees in advance of making the bid. It is suggested that up to 60% of the fee will need to be defrayed on design and consultation and tendering before the bid is made. That equates to £ 142,000. If the bid is not successful those costs will be abortive and fall as a revenue charge to the Council.
3.8.Although it will be possible to make a the bid by the September deadline the tender for the work will not be let until after that date with tender return being towards the end of October- beginning of November.. The CLG have confirmed that they are content to receive the tender prices at a later date although they expect the best estimates to be placed with the bid in September.
3.9.The Council is led to believe that there is limited competition from other Local Authorities in the South West region for the September bid round. If the Council is unsuccessful in the September bid round there will be another bid round in February 2008 which it can bid against.
- FINANCIAL SERVICE COMMENTS
4.1.The potential financial impact on the Council is as follows;
Establishment of a Capital scheme with a gross value of £1,808,000
a)Resource requirement of £79,000 (based on Property Services June 2007 estimate), plus
b) Variations on (a) after receipt of tendered sums, plus
c) Variations on (a) if gap between receipt of tenders and grant award leads to inflationary allowances becoming due and payable, plus
d)Cost of any construction price variance from tendered sums including any contingency items.
e)Benefit of £ 1,729,000 external investment in the Council’s asset.
4.2.In respect of the funding for (a) it is recommended that it is funded from the Housing and Community Services Approved Capital Allocation for the period 2007 to 2010.Currently there are resources of £ 3,054,000 of uncommitted resources nominally programmed to provide affordable housing.
4.3.If the bid is successful and gypsy and traveller households currently housed in affordable accommodation move into the new site releasing their homes the £ 79,000 funding from the affordable housing programme will represent good value for money.
Simon Hendey
Head of Housing and Community Services
17th July 2007
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