Date 12/12/2011. Date Date Date Date Date. Date. Date

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1 DELEGATED POWERS REPORT NO SUBJECT: West Hendon Regeneration Scheme - Legal Services Procurement Control sheet All of the following actions MUST be completed at each stage of the process and the signed and dated report MUST be passed to the Governance Service for publishing All reports 1. Governance Service receive draft report Andrew Charlwood 12/12/ Governance Service s cleared draft report as being constitutionally appropriate 3. Finance clearance obtained (report author to complete) 4. Staff and other resources issues clearance obtained (report author to complete) 5. Trade Union response received (Staffing issues only) 6. Legal clearance obtained from (report author to complete) 7. Policy & Partnerships clearance obtained (report author to complete) 8. Equalities & Diversity clearance obtained (report author to complete) 9. The above process has been checked and verified by Director, Head of Service or Deputy (report author to complete) 10. Signed & dated report, scanned or hard copy received by Governance Service for publishing 11. Report published by Governance Service to website Officer reports: 12. Head of Service informed report is published and can be implemented. Andrew Charlwood 16/12/2011 Name of Fin. officer Alex Altman / Hayley Woolard Name of Res. officer Craig Cooper/ Name of TU rep. N/A Name of Legal officer Tobenna Erojikwe Name of P&P officer Andrew Nathan Name of officer Julie Pal Name Pam Wharfe Cabinet Member reports: 13. Expiry of call-in period 14. Report circulated for call-in purposes to Business Management OSC members & copied to Cabinet & Head of Service

2 ACTION TAKEN BY CABINET MEMBER(S) UNDER DELEGATED POWERS (EXECUTIVE FUNCTION) Subject: Cabinet Member(s) West Hendon Regeneration Scheme- Legal Services Procurement Leader of the Council of decision 22 December 2011 decision comes into effect Summary Officer Contributors Status (public or exempt) Wards affected Enclosures Reason for exemption from call-in (if appropriate) 22 December 2011 This report sets out the necessary authorisation required by a Cabinet Member under the Contract procedure rules before seeking approval to undertake a mini tender via the London Borough of Bromley led Legal Services Framework Contract to select external legal advisers for the West Hendon Regeneration Scheme. Margaret Martinus, Assistant Director- Legal Abid Arai, Senior Project Manager Angela Latty, Assistant Project Manager Public West Hendon None Not applicable Contact for further information: Angela Latty, Regeneration Service, Environment, Planning and Regeneration, Serial No. 1524

3 1. RELEVANT PREVIOUS DECISIONS 1.1 Cabinet 20 January 2003 (Decision 15), West Hendon Regeneration Project Approved appointment of Nabarro Nathanson as external legal advisers to the Housing Regeneration Schemes. 1.2 DPR 46 (28 July 2006); approved appointment of Paul McDermott and associates as the Council s external legal advisor for Principal Delivery Agreement (PDA) matters on West Hendon Regeneration Scheme. 1.3 Cabinet Resources Committee 15 June 2009 (Decision 5) Appointment of Panel of Legal Advisers Solicitors- authorised the appointment of a panel of solicitors to firms to provide additional legal services to the Council where required 2. CORPORATE PRIORITIES AND POLICY CONSIDERATIONS 2.1 The regeneration of the West Hendon Estate contributes to the delivery of the Corporate Plan priority of a successful London Suburb. Strategic objectives under the above include delivering sustainable housing growth, to support strong and cohesive communities and to ensure residents continue to feel that Barnet is a place where people from different communities get on together including through effective management of our regeneration programmes. 2.2 The West Hendon Regeneration also supports the corporate priority of sharing opportunities, sharing responsibilities. The new development will offer more choice by providing a number of different housing options such as shared equity, shared ownership etc to residents and those in the wider community. 2.3 The re-development also complies with strategic objectives in the Council s Housing Strategy , which include: Increasing housing supply, including family sized homes, to improve the range of housing choices and opportunities available to residents; and Promoting mixed communities and maximising opportunities available for those wishing to own their home. 2.4 The re-development is also supported by the Council s Regeneration Strategy. 3. RISK MANAGEMENT ISSUES 3.1 The availability of external legal expertise and advice in relation to the contractual and related provisions and arrangements are required to advance the West Hendon Regeneration Scheme. This provision is essential to safeguard the Council s interests and objectives. 3.2 The PDA is due to expire on 15 December 2012, and the Council intends to renegotiate the terms of this agreement to allow the scheme to go ahead. Failure to re-negotiate these terms will result in the expiry of the PDA, and the Council would not be able to recover its historic and new legal expenditure from the developers.

4 3.3 I have considered whether the issues involved are likely to raise significant levels of public concern or give rise to policy considerations and it was not considered that the issues would raise significant levels of public concern, or give rise to policy considerations. 4. EQUALITIES AND DIVERSITY ISSUES 4.1 Barnet is committed to improving the quality of life and wider participation for all the economic, educational, cultural, and social and community life in the Borough. The West Hendon Regeneration Scheme will provide a mix of affordable and private sale properties. The new mixed tenure housing will improve the community cohesion in an area with a highly diverse population. It will provide increased choice and opportunity for Barnet residents. This supports the overall aim of the council s Equalities Policy and supports the equality priorities outlined in Barnet s Equality Scheme. 5. USE OF RESOURCES IMPLICATIONS (Finance, Procurement, Performance & Value for Money, Staffing, IT, Property, Sustainability) 5.1 The estimated value of this appointment will be in excess of 156,422 but fees could rise to 499,999 over a period of 5 years this requires the Council to undertake a mini tender exercise in accordance with the procurement rules. 5.2 The Council is using the Bromley Led Legal Services Framework to procure these services. The Bromley Legal Framework was established in accordance with the OJEU regulations. The Council will undertake a mini competition that complies with the requirements of the framework and with the Council s own Contract Procedure Rules. 5.3 It is intended that the contractual arrangements for the delivery of these projects will provide for the recovery of these and other external consultancy costs. In the event that either project does not achieve contractual close and not all the costs can be recovered, these costs will be paid for through the HRA Regeneration budgets. 6. LEGAL ISSUES 6.1 The procurement exercise for the appointment of external Legal advisers for the West Hendon Regeneration Scheme has been carried out in accordance with the Council s Contract Procedure Rules and with due regard to the EC Procurement rules. 6.2 The Local Government (Contracts) Act 1997 provides an express general power for local authorities to enter into express contracts with third parties. 6.3 Section 111 of the local Government Act 1972 provides that a local authority has power to do anything which is calculated to facilitate, or is conducive or is incidental to the discharge of its functions.

5 6.4 Section 2 of the Local Government Act 2000 empowers the Council to, amongst other things, incur expenditure, enter into arrangements and agreements in order to promote and improve the economic, social and environmental well being of its area. 7. CONSTITUTIONAL POWERS 7.1 Council Constitution, Part 3, Responsibility for Functions, Section 3 (Responsibility for Executive Functions) provides that Cabinet Members may discharge the executive functions that fall within their portfolio, whether or not they are also delegated to officers except for matters specifically reserved to Council, Cabinet or cabinet committees. The Leader of the Council has within his portfolio matters relating to regeneration. 7.2 Council Constitution, Contract Procedure Rules Table 5-1 requires that Cabinet Members should authorise contracts with a value of between 156,422 and below 499,999 before tenders are sought. 8. BACKGROUND INFORMATION 8.1 In January 2003, the Council appointed Nabarro Nathanson as external solicitors who provided legal support on the four regeneration schemes. Paul McDermott was leading on the West Hendon commission; it was later advised that Paul McDermott and his team were leaving Nabarro Nathanson for another legal practice, Trowers and Hamlins. This legal practice was and still acts as legal advisors to Barratt Metropolitan LLP. 8.2 The PDA was at a critical stage and signing was imminent. Due to the complex nature of work involved the council were keen to ensure continuity of Solicitors on the scheme, whilst being aware of the potential conflict of interest. 8.3 Following discussions with both practices, an agreement was proposed that Paul McDermott now of Trowers and Hamlins would act as a private solicitor under Paul McDermott Associates in respect of negotiations and drafting of the Principal Development Agreement. 8.4 In view of the major renegotiation required for the West Hendon scheme together with a revision to the Solicitors Regulation Authority Code of Conduct, Paul McDermott has advised the Council that there is a risk of a conflict of interest. This is due to his general role as a partner of Trowers & Hamlins which would apply even if he continues to advise the Council in a personal capacity on the West Hendon renegotiation. Paul McDermott has confirmed that he is willing to assist the Council in ensuring a smooth transfer to new solicitors. 8.5 The provision of a specialist legal practice will also supplement the services provided by the in-house legal team. 9. LIST OF BACKGROUND PAPERS 9.1 None

6 10. DECISION OF THE CABINET MEMBER(S) I authorise the following action: 10.1 That officers commence a mini tender competition via the Bromley Legal Services Framework Contract to select external legal advisers for the West Hendon Regeneration Scheme That the appointment of the selected legal practice is subject to a further Delegated Powers Report by the Director of Environment, Planning and Regeneration for approval. Signed 22/12/11 Leader of the Council