Agenda and minutes

Apologies for absence were received from Councillors Mustafa Cetinkaya, Katherine Chibah and Ergin Erbil, and from Tony Theodoulou (Executive Director People) who was represented by Anne Stoker (Director Children and Family Services).

Members of the Cabinet are invited to identify any disclosable pecuniary, other pecuniary or non pecuniary interests relevant to items on the agenda.

There were no declarations of interest.

To note, that no requests for deputations have been received for presentation to this Cabinet meeting.

NOTED that no requests for deputations had been received for presentation to this Cabinet meeting.

To confirm the minutes of the previous Cabinet meeting held on 13 October 2021.

AGREED that the minutes of the previous meeting of the Cabinet held on 13 October 2021 be confirmed as a correct record.

A report from the Executive Director Place is attached.  (Key decision – reference number 5309)

Councillor Nesil Caliskan (Leader of the Council) introduced the report of the Executive Director Place, seeking approval for the implementation of the Meridian Water Estate Management and Place-keeping framework.

NOTED

1.    The need for the framework was outlined, and for the formation of an Estate Management Company.

2.    It was confirmed that consistent standards would be ensured across all the public realm, that the Council would retain overall control of estate management, and there would be appropriate governance in place.

3.    Officers confirmed that the Estate Management Company would be established at the start of next year, and would become operational when the first homes were constructed.

4.    Officers advised how the Council’s sustainability strategy would be supported, including recycling initiatives and a community garden. There were opportunities to be innovative at the estate.

Alternative Options Considered:

1.    Option 1: Do nothing. This is not an option as Meridian Water will require multiple levels of management to ensure a safe and pleasant environment for residents and visitors. A management plan is a contractual obligation with the developer, and the management of the estate as it currently stands sits within the Meridian Water team, therefore a precedent is set.

2.    Option 2: Run all estate management for Meridian Water directly from Enfield, without an EMC in place. As Meridian One and Meridian Two are to be private estates this would require consent from the developer and internal agreements within the Council to deliver services. It is unlikely that Vistry would provide consent for a number of commercial reasons, including the risk to sales.

3.    This is not an option as it runs contrary to the commercial position presented when developers were invited to bid for the opportunity. The establishment of an Estate Management Company was written into the Development Agreement and Head leases.

DECISION:  The Cabinet agreed to

1.    Approve the Estate Management and Place-keeping Framework at Meridian Water, as set out in the report and appendices.

2.    Note the establishment of the internal Meridian Water Estate Management governance board.

3.    Note that a report will be brought back to Cabinet later in 2022 seeking approval for the Meridian Water Estate Management Strategy as well as providing an update on progress.

4.    Approve the formation of an Estate Management Company limited by guarantee for the purposes of mobilising and delivering estate services at Meridian 1 and 2.

5.    Delegate to the Meridian Water Programme Director (in consultation with the Director of Law and Governance) to finalise the constitutional documents of the Estate Management Company and other such matters as are necessary to (i) incorporate and register the company and (ii) facilitate the objectives identified in the report.

6.    Approve the principle of extending a working capital facility estimated at £355k treated as a loan from the General Fund reflecting the estimated costs to be covered until such time as sufficient service charge income is generated and on the proviso a satisfactory Business Plan is submitted to demonstrate the  ...  view the full minutes text for item 5.

A report from the Executive Director Place is attached.  (Key decision – reference number 5252)

Councillor Nesil Caliskan (Leader of the Council) introduced the report of the Executive Director Place providing an update on the progress made to deliver new homes and sustainable neighbourhoods at Meridian Water.

NOTED

1.  The progress at Meridian Water was outlined. Cabinet was asked to support accelerating the delivery of homes within Meridian Four.

2.  A supplementary report amendment was tabled in respect of Meridian Four residential programme and unit mix and is appended to the minutes.

3.  Proposals around Build to Rent provision were clarified.

4.  Officers confirmed that a new health centre would be included in Meridian One and would also serve existing communities at Angel Edmonton.

5.  Officers confirmed that a minimum 10% of the housing would be fitted out for those with mobility needs. More information on specialist housing would be brought to Cabinet in the New Year.

Alternative Options Considered:

1.  As described options for Meridian Four were presented to Cabinet on the 16th September 2020, it is considered optimal that the Council delivers an entirely rented scheme.

2.  A number of scenarios with regard to mix and tenure have been considered. The viability of a number of scenarios have been tested these are set out in Part 2 of the report.

3.  The option that the RIBA 4 technical design does not start until the forward funding from the BtR Investor has been secured has been considered. Whilst it has the benefit that the Council would not have to fund the design work it will result in a delay in the delivery of new homes by some 12 months.

4.  Do nothing – this would result in no new market or affordable homes being delivered on Meridian Four, no regeneration of the area and also no income being received to pay down the existing Council debt.

DECISION:  The Cabinet agreed to

1.    Note the progress to date in delivering Meridian Water, as set out in paragraphs 18 to 49 of the report.

2.    Note that the expenditure and resource estimates are based on the budgets as approved by Council on 2 March 2021 (KD5210).

3.    Note reconfigured capital expenditure from this review of an additional £1.93m and £6.16m in financial years 2021/22 and 2022/23 respectively, to be contained within existing overall approved budgets and reported as part of the Q2 Capital monitoring cycle appearing elsewhere on this agenda.

4.    Note the Council’s role as Master Developer on the Meridian Water Site.

5.    Note the Meridian Four financial update and approve the revised approach to tenure mix and viability as set out in the Confidential Appendix to accelerate the delivery of homes.

6.    Confirm the strategy to progress and accelerate the delivery of circa 846 homes as set out in the Confidential Appendix, noting the positive impact on the Phase 2 financial appraisal and that the delivery cost increase is contained within the Meridian Water approved project capital programme.

7.    Delegate to the Programme Director of Meridian Water in consultation with the Executive Director  ...  view the full minutes text for item 6.

A report from the Executive Director Resources is attached.  (Key decision – reference number 5338)

Councillor Mary Maguire (Cabinet Member for Finance and Procurement) introduced the report of the Executive Director Resources setting out the Council’s revenue budget monitoring position to the end of September 2021.

NOTED

1.  The revenue budget forecast, including the impact of Covid-19 and Government funding, was outlined and particular pressures highlighted.

2.  The underlying budget was resilient and sustainable.

3.  Councillor Mahtab Uddin highlighted the increased demands in children’s social care.

4.  Councillor Alev Cazimoglu reported the stresses in adult social care costs.

Alternative Options Considered:

Not relevant in the context of this report.

DECISION:  The Cabinet agreed to

1.    Note the £0.465m adverse position on the General Fund after the use of £3m contingency and £5.6m overspend in the Dedicated Schools Grant (DSG) forecasted revenue outturn position for 2021/22.

2.    Note the Covid-19 impact of £36.9m which is expected to be funded by Government grants.

3.    Note the progress made on the journey to setting a robust and resilient budget.

4.    Request Executive Directors continue to work with Cabinet Members to robustly manage the underlying budget position and implement savings, whilst managing, mitigating and minimising the Covid-19 financial impact.

5.    Cabinet Members note the forecast level of reserves and implications for 2021/22 and challenging financial position over the life of the MTFP.

Reason:

To ensure that Members are aware of the forecast outturn position, including the level of reserves for the authority, including all major variances which are contributing to the outturn position and the mitigating actions being taken and proposed to manage the financial position for 2021/22.

(Key decision – reference number 5338)

A report from the Executive Director Resources is attached.  (Key decision – reference number 5340)

Councillor Mary Maguire (Cabinet Member for Finance and Procurement) introduced the report of the Executive Director Resources informing Members on the current position of the Council’s 10 Year Capital Programme 2021/22 to 2030/31.

NOTED

1.    The forecast year expenditure for the approved programme was outlined for the General Fund, Housing Revenue Account (HRA) and Enfield Companies, and the programmes with approval to spend and the requested additions.

2.    Councillor Barnes highlighted investments being put forward which would have a positive environmental impact.

3.    The Chair welcomed the borrow to invest programme and the support of residents and businesses.

Alternative Options Considered:

Not relevant in the context of this report.

DECISION:  The Cabinet agreed to

1.    Note the inclusion of the following capital programmes, including updated grant funding, as detailed in Table 3. The programmes listed below, were included as ‘Requested Additions’ in the Council’s 10 Year Capital Programme and have now been granted approval to spend:

a. Corporate Condition Programme-KD5371

b. IT Investment

c. Community safety

d. Housing Adaptations and Assistance-KD5365

2.   Recommend to Council, approval of the following additions to the capital programme as detailed in Table 4:

a. Community Safety – Youth Bus

b. Edmonton Cemetery Mausoleum

c. Housing Adaptations and Assistance

d. Joyce and Snells

e. Tennis Courts at Broomfield Park

f. Healthy Streets

g. TFL-Traffic and Transportation

h. HGL - Enfield Let Equity Investment

3.   Note that Appendix A details the revised 10 Year Capital Programme including all programmes with approval to spend. The total budget is £1,730,629k.

4.    Note that Appendix B details requested additions, that are subject to further approval.

5.    Note that Appendix C details the total revised 10 Year Capital Programme. The total budget is £2,691,468k.

Reason:

The Council’s Capital Programme is regularly reviewed, and monitoring reports are submitted to Cabinet on a quarterly basis

(Key decision – reference number 5340)

A report from the Executive Director Resources is attached.  (Key decision – reference number 5341)

Councillor Mary Maguire (Cabinet Member for Finance and Procurement) introduced the report of the Executive Director Resources to inform Cabinet of the current forecast outturn position of the Housing Revenue Account (HRA).

NOTED

1.  The forecast revenue budget monitoring position and the current position (as at the end of September 2021) of the HRA’s 10 Year Capital Programme were outlined.

2.  Budget pressures and re-profiling were highlighted.

3.  Investment in the fire safety programme was welcomed.

4.  Officers confirmed that the Exeter Road and Upton and Raynham project would be reaching the final planning process stages soon and a report would be submitted to Cabinet in the mid-term future.

Alternative Options Considered:

Not relevant in the context of this report.

DECISION:  The Cabinet agreed to

1.    Note the Quarter 2 HRA forecast outturn position for 2021/22 for both revenue and capital.

2.    Note the revenue Covid-19 impact of £0.315m.

3.    Note the reduction in the 10-year HRA capital programme of £94.8m made relating to reconfiguration of Joyce & Snells scheme approved by Cabinet 15th September 2021 (KD5343)

Reason:

The Council’s Capital Programme is regularly reviewed, and monitoring reports are submitted to Cabinet on a quarterly basis. The Council continually strives to maximise external grants and contributions and attract new income streams to fund projects wherever possible and minimise the need to borrow.

(Key decision – reference number 5341)

A report from the Executive Director Resources is attached.  (Key decision – reference number 5342)

Councillor Mary Maguire (Cabinet Member for Finance and Procurement) introduced the report of the Executive Director Resources reviewing the financial assumptions in the Housing Revenue Account (HRA).

NOTED

1.  The update on the HRA 30-year business plan position and the main changes were outlined.

2.  The main points of the Development Programme were summarised in para 28 of the report, noting the 3,500 new home starts over the next 13 years and the funding mechanisms.

Alternative Options Considered:

Not relevant in the context of this report.

DECISION:  The Cabinet agreed to

1.    Note the updated HRA Business Plan and financial assumptions on which we will ensure an affordable and viable 30-year plan.

2.    Recommend to Council the revised 10-year HRA Capital Programme budget, including reduction of £94.8m in the overall budget requirement.

3.    Note the reduced HRA borrowing requirement from £656.2m to £622.6m over the next 10 years.

4.    Recommend to Council to approve the updated hurdle rates and build costs on development schemes as a result of adverse market conditions which will enable us to continue to build new homes during this period.

5.    Recommend to Council to approve acceptance of successful GLA grant bid of £166.5m as part of the AHP 21-26 programme and entering into of grant agreement for starts from 2023-2028. This secures funding for the first phases of the Joyce and Snells regeneration scheme.

6.    Note September CPI of 3.1%, which increases the social and affordable rents levels in April 2022 by 4.1%, approval will come forward as part of the HRA rent setting report recommended to Council on 23rd February 2022.

7.    Note the reduction in borrowing interest rates for 2021-22 and 2022-23, approval will be recommended to Council as part of the Treasury Strategy update report on 23rd February 2022.

8.    Note the outline criteria to be used when assessing lease propositions from external investors as a means of increasing supply without entering into any binding commitment until all aspects, including Treasury Management, have been fully considered.

9.    Recommend to Council to approve entering into of a Deed of Variation to the Development Agreement for the Ladderswood project for costs accrued in earlier phases and adjustments to overage income projections.

10. Recommend to Council to approve Deed of Variation to the New Avenue Development Agreement to increase the number of homes from 408 to 503, subject to planning and all relevant consents.

11. Note that there is no additional funding available to meet the Fire Safety Act 2021, made law in April and the Building Safety agenda and that additional staffing resources to meet these new functions is included in the business plan on a phased basis from April 2022.

12.  Note the additional investment made in improving the environmental conditions of estates following lifestyle changes as a result of the pandemic.

Reason:

To ensure that a balanced and viable 30-Year HRA Business Plan is approved by Cabinet which meets the strategic priorities of the service.

(Key decision – reference number 5342)  ...  view the full minutes text for item 10.

Attached for information is a provisional list of items scheduled for future Cabinet meetings.

NOTED, for information, the provisional list of items scheduled for future Cabinet meetings.

To note that the next meeting of the Cabinet is scheduled to take place on Wednesday 19 January 2022 at 7.15pm.

NOTED

1.    The extra Cabinet meeting on Wednesday 5 January 2022.

2.    The next scheduled meetings of the Cabinet on Wednesday 19 January 2022 and Wednesday 16 February 2022 (moved from 9 February).

AGREED In accordance with Section 100(A) of the Local Government Act 1972 to exclude the press and public from the meeting for consideration of the Confidential Appendix to Item 6 of the agenda on the grounds that it involves the likely disclosure of exempt information as defined in Paragraph 3 (information relating to the financial or business affairs of any particular person (including the authority holding that information) of Part 1 of Schedule 12A to the Act (as amended by the Local Government (Access to Information) (Variation) Order 2006).

DECISION:  The Cabinet agreed to note the supplementary confidential information to the report Meridian Water Residential Delivery Programme.