Decision details

Ashton Rise – Management Agreement

Decision Maker: Executive Director: Growth and Regeneration

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Purpose:

The first private dwellings for sale within the development are due to be sold and occupied by the end of May 2020 (this maybe delayed due to current Covid 19 restrictions).
A contract with BNS Ltd needs to be in place before the first sale takes place. Otherwise the council will be responsible for providing estate services, which it is not prepared for, and will need to arrange collection and payment of estate charges from private owners.

Decision:

To enter into a 3 year contract with BNS Ltd to provide management services to the Ashton Rise scheme, a development of 80 homes for sale and 53 new council dwellings. BNS Ltd were interviewed, scored and selected by a panel of officers following an informal tender exercise.
The contract appoints BNS Ltd as the council’s agent to undertake certain management duties at the site including maintaining amenity/ecology areas, trees, public open areas/wetlands and car parking on un-adopted areas (Estate Services). The agent will also provide repair and maintenance services to private apartments i.e. communal areas and structure only and administered under a service charge.
The cost of BNS services will be funded by each of the 133 dwellings. As there 53 council dwellings, the council will pay 40% of the estate charge. The remainder being paid by private households. Purchasers of private flats will also pay a service charge for their blocks. Repairs and maintenance to council dwellings will be provided by the council.

Alternative options considered:

Other options included the setting up of a management company (with or without freehold transfer) and setting up of a resident management company were considered . The option of appointing managing agent was agreed for the following reasons:-
•It is the simplest, least complicated and cheapest option
•It does not involve any set up costs such as a separate BCC company or the need to appoint directors or management board or transfer of land
•It can be easily dismantled should the council wish to adopt a different model or change of direction such as use of the local housing company management model.
•It can be implemented fairly swiftly and be in place in time for marketing purposes.

Publication date: 17/06/2020

Date of decision: 15/04/2020