To seek approval to release capital funds set aside in the approved budget for the financial year 2018/19 and undertake replacement of defective roofs over units 1 – 6 Tarsmill Court, Rotherwas via an appropriate contractor procured and appointed through the council’s competitive tendering process.

That:

(a)        replacement of defective roof over units 1 – 6 Tarsmill Court, Rotherwas  be undertaken within a budget of £400k; and

(b)        the works are procured from an appropriate contractor via open tender to ensure that best value is obtained.

1.              Do nothing.  The existing roofs leak extensively and are causing significant disruption and damage to the two business tenants of the units.  Both have threatened to leave and to sue the council for financial loss caused by water penetration damaging machinery and goods and loss of business.  If the tenants leave, current rental income of £61k will be lost, the units will be difficult to re-let in their current condition and the value of the council’s investment property portfolio will be reduced.

2.              Dispose of the freehold interest in the units, selling as seen in their current condition. This would shift responsibility for improving the units to the new owner but the capital value achievable would be depressed due to the condition of the roof.  It would also lead to the loss of the regular rental income stream which the council invests in delivery of local services. 

3.              Use existing contractor to carry out work. The cost estimate is higher than the threshold for both the existing Integral maintenance contract or the new BBLP contract so open tender is the most appropriate method of procurement and will be managed by the design and maintenance team