The Head of Housing has submitted a reportto seek approval to increase the capital budget envelope for the Floyds Row project; to delegate authority to commission further capital works; and to commission the service contract to operate services from this new project.

Recommendations: Cabinet is recommended to:

1.Recommend that Council revise the capital budget for this project, to take the capital envelope of the project to £1,892,300, including contingencies, as outlined in Appendix 3 Option A, increasing the budget by £1,134k.   Noting grant funding already secured of £275k capital funding from the Ministry of Housing, Communities and Local Government (MHCLG), and £100k from Public Health England, which will reduce the funding requirement from the Council’s 2019/20 capital programme accordingly, and noting that additional external funding  contributions are being progressed from a variety of sources, including the MHCLG; Oxfordshire District and County Councils; the Oxfordshire Clinical Commissioning Group and other charitable sources;

2.Recommend that Council make budget provision for the gross revenue costs of providing Floyds Row in the sum of £1.069 million in 2019-20 funded by grants and contributions;

3.Delegate authority to the Assistant Chief Executive, in consultation with the Head of Finance and Head of Law and Governance, to enter into contracts to complete the full capital works to convert the building (phases 1 and 2), on the basis that in the opinion of the Head of Finance, that this continues to represent best value;

4.Delegate authority to the Regeneration and Major Projects Service Manager, in consultation with the Heads of Housing and Finance, to enter into a lease of Floyds Row for a peppercorn rent, on the basis as summarised in this report;

5.Delegate authority to the Head of Housing, to enter into a Service Contract as set out in this report, for the delivery of services at Floyds Row from 1st April 2020 to 31st March 2021,

6.Note that the current Street Outreach Team contract with the Council will be varied to include the interim service arrangements (worth c.£400k) up to end March 2020 within existing budget and funding envelopes;

7.Delegate authority to the Head of Housing to undertake the re-procurement of the Street Outreach and Floyds Row commissioned services during 2020/21, noting a further report will be brought to Cabinet in late 2020, to recommend the award of contract; and the annual report on rough sleeping and single homelessness commissioning spend, will be brought to Cabinet in March 2020;

8.Agree to provide the grant funding proposed in this report in order to facilitate the initial trial period of operation of the Floyds Row assessment centre; and

9.Note the progress with the development of this venue and new services, as part of a wider transformation programme.  Noting that interim Somewhere Safe to Stay and Winter Shelter services will commence from Simon House from late October 2019, with some services moving to Floyds Row in January 2020, with the current programme expecting the completion of Floyds Row by end March 2020.

The Head of Housing had submitted a reportto seek approval to increase the capital budget envelope for the Floyds Row project; to delegate authority to commission further capital works; and to commission the service contract to operate services from this new project.

Councillor Linda Smith, Cabinet Member for Leisure and Housing, introduced the report. She explained that although the costs had escalated as the scale of the necessary building works became clear the project still provided best value in terms of costs per bed, and the best option for service users and the council.

Dave Scholes, Housing Strategy and Needs Manager, outlined the proposed service provision and the proposed timescale for opening phase 1 and phase 2. The Council was seeking longer term funding from MHCLG but this was not assured. One- and two- year contributions to running costs from Oxfordshire’s county and other district councils were secured.

Cabinet members discussed the build costs; the proposed services and controls on access; funding; and noted that this new model of provision was an addition to other existing services in the city. They supported the recommendations in the report and asked for update reports on the funding and operation of Floyds Row to be provided in spring 2020 and autumn 2020.

Cabinet resolved to:

1.    Recommend that Council revise the capital budget for this project, to take the capital envelope of the project to £1,892,300, including contingencies, as outlined in Appendix 3 Option A, increasing the budget by £1,134k.   Noting grant funding already secured of £275k capital funding from the Ministry of Housing, Communities and Local Government (MHCLG), and £100k from Public Health England, which will reduce the funding requirement from the Council’s 2019/20 capital programme accordingly, and noting that additional external funding  contributions are being progressed from a variety of sources, including the MHCLG; Oxfordshire District and County Councils; the Oxfordshire Clinical Commissioning Group and other charitable sources;

2.    Recommend that Council make budget provision for the gross revenue costs of providing Floyds Row in the sum of £1.069 million in 2019-20 funded by grants and contributions;

3.    Delegate authority to the Assistant Chief Executive, in consultation with the Head of Finance and Head of Law and Governance, to enter into contracts to complete the full capital works to convert the building (phases 1 and 2), on the basis that in the opinion of the Head of Finance, that this continues to represent best value;

4.    Delegate authority to the Regeneration and Major Projects Service Manager, in consultation with the Heads of Housing and Finance, to enter into a lease of Floyds Row for a peppercorn rent, on the basis as summarised in this report;

5.    Delegate authority to the Head of Housing, to enter into a Service Contract as set out in this report, for the delivery of services at Floyds Row from 1st April 2020 to 31st March 2021;

6.    Note that the current Street Outreach Team contract with the Council will be varied to include the interim service arrangements (worth c.£400k) up to end March 2020 within existing budget and funding envelopes;

7.    Delegate authority to the Head of Housing to undertake the re-procurement of the Street Outreach and Floyds Row commissioned services during 2020/21, noting a further report will be brought to Cabinet in late 2020, to recommend the award of contract; and the annual report on rough sleeping and single homelessness commissioning spend, will be brought to Cabinet in March 2020;

8.    Agree to provide the grant funding proposed in this report in order to facilitate the initial trial period of operation of the Floyds Row assessment centre; and

9.    Note the progress with the development of this venue and new services, as part of a wider transformation programme.  Noting that interim Somewhere Safe to Stay and Winter Shelter services will commence from Simon House from late October 2019, with some services moving to Floyds Row in January 2020, with the current programme expecting the completion of Floyds Row by end March 2020.

10.Request update reports from the Head of Housing on the funding and operation of Floyds Row in spring 2020 and autumn 2020.