The Cabinet Procurement and Insourcing Committee of Hackney Council met on Monday 6 January 2025 to discuss several key procurement decisions. The committee approved the award of a contract for the operation of a cafe at Clissold House, the procurement of a Void Utility Management provider, and a variation to the Leisure Management Contract with Greenwich Leisure Limited (GLL) to operate leisure centres as an agent. They also noted a report on the Hackney Light and Power Residential Solar PV Pilot.

Clissold House Cafe Procurement

The committee approved the award of a concessions contract and lease for the operation of the Clissold House Cafe to Operator A. The contract will be for a period of 5 years, with an option for the Council to extend it by a further 2 years, commencing in February 2025. The cafe was previously operated by Deep Beat Entertainment, which went into administration in Spring 2024. The new operator is expected to generate a turnover of approximately £700,000 per annum, with potential rental payments to the Council of around £60,000 per annum, which will be reinvested into parks and green spaces. Operator A was selected due to their winning score in quality and financial proposal, their substantial industry experience, and their commitment to localism, sustainability, and health and safety.

Voids Utility Management Provision

The committee approved the procurement of a Void Utility Management provider under a concession contract, at no cost to the Council. This service will manage utility accounts for void properties, aiming to reduce the time properties are unoccupied and return them to the market more quickly. The provider will also be expected to offer support to vulnerable residents struggling with gas and electricity costs and upgrade meters to smart technology. The contract is estimated to have a whole-life cost of approximately £8.9m, with the provider benefiting financially from marketing their services to new residents. It is anticipated that this could lead to a reduction in void duration by one week per property, generating an estimated additional £70,000 per annum in rental income.

Hackney Leisure Management Contract Variation

The committee approved a variation to the Leisure Management Contract with Greenwich Leisure Limited (GLL) for GLL to run the leisure centres as an agent rather than a principal for the remainder of the current contract term. This change is driven by recent HMRC policy updates following a court ruling, which allows local authorities to treat leisure services as 'non-business' for VAT purposes. Under the Agency Model, GLL will act as the Council's agent for income collection, allowing them to reclaim all input VAT incurred on attributable expenditure. This is expected to result in significant ongoing financial benefits to the Council through reduced costs, without impacting service quality or increasing costs for users. Authority was delegated to the Group Director - Climate, Homes & Economy to agree the terms of and enter into all necessary legal documentation.

Hackney Light and Power Residential Solar PV Pilot - Contract Award for Noting

The committee noted the report regarding the Hackney Light and Power Residential Solar PV Pilot. This pilot project aims to install 1MW of solar PV generation on Council-owned housing estates, promoting local renewable energy generation, creating green jobs, and reducing carbon emissions. The project involves contracting Emergent Energy for solar and microgrid installation works, with an estimated contract value of £1.96m for 24 months, and a concession contract for the operation of the microgrid asset and supply of electricity to residents, valued at approximately £2.639m for an initial 7 years with an option to extend for 3 years. The project is funded through £0.5m of Section 106 funding and £1.46m of prudential borrowing. The pilot is expected to deliver significant cost savings for residents, estimated at 10-20% on their energy bills, and contribute to Hackney's net-zero carbon goals.

Minutes of Previous Meeting

The committee approved the unrestricted minutes of the previous meeting of the Cabinet Procurement and Insourcing Committee held on 4 November 2024.

Exclusion of the Public and Press

It was resolved that the press and public be excluded from the proceedings during the consideration of exempt items 12, 13, and 14 on the agenda, on the grounds that it was likely to involve the disclosure of exempt information as defined in Schedule 12A to the Local Government Act 1972.