Agenda and minutes

Apologies for absence were received from Councillor Christine Hamilton (Cabinet Member for Community Wellbeing and Public Health) and Ian Davis (Director – Environment).  

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 registered in respect of any items on the agenda.

NOTED, that the reports listed on the agenda had been circulated in accordance with the requirements of the Council’s Constitution and the Local Authorities (Executive Arrangements) (Access to Information and Meetings) (England) Regulations 2012 with the exception of Report Nos. 182 and 187 – Future Arrangements for ICT Delivery. These requirements state that agendas and reports should be circulated at least 5 clear days in advance of meetings.

AGREED that Report Nos. 182 and 187 – Future Arrangements for ICT Delivery, as stated above, be considered at this Cabinet meeting (Minute Nos. 10 and 22 below refer).

NOTED that no requests for deputations (with or without petitions) had been received for presentation to this Cabinet meeting.

To confirm that the following items be referred to full Council:

1.       Report Nos.178 and 186 – Budget 2014/15 and Medium Term Financial Plan 2014-15 to 2017/18 (General Fund)

2.       Report No.179 – Housing Revenue Account (HRA) Estimates 2014/15 and Rent Setting (HRA and Temporary Accommodation)

3.       Report Nos.183 and 189 – Investment in Private Rented Sector (Note: Council report to seek approval to add the required borrowing to the capital works programme)

AGREED that the following items be referred to full Council:

1.               Report Nos. 178 and 186 – Budget 2014/15 and Medium Term Financial Plan 2014-15 to 2017/18 (General Fund)

2.               Report No.179 – Housing Revenue Account (HRA) Estimates 2014/15 and Rent Setting (HRA and Temporary Accommodation)

3.               Reports Nos. 183 and 189 – Investment in Private Rented Sector (Note: Council report to seek approval to add the required borrowing to the capital works programme)

A report from the Director of Finance, Resources and Customer Services is attached. Thisseeks approval, for recommendation to full Council, of the Budget 2014/15 and Medium Term Financial Plan (General Fund). (Report No.186, agenda part two also refers) (Key decision – reference number 3764)

(Report No.178)

(8.20 – 8.30 pm)

Councillor Andrew Stafford (Cabinet Member for Finance and Property) introduced the report of the Director of Finance, Resources and Customer Services (No.178) setting out the Budget 2014/15 and Medium Term Financial Plan 2014/15 to 2017/18 (General Fund).

NOTED

1.               That Report No.186 also referred as detailed in Minute No.21 below;

2.               The significant level of savings that had been achieved by the Council in the previous four years and the proposals for the next four years as set out in the Medium Term Financial Plan. It was anticipated that further savings of approximately £60m would be required. The financial outlook was uncertain despite initial signs of some economic growth.

3.               That it was proposed that there be no increase in the level of Council Tax for 2014/15 as set out in the report.

4.               The extensive consultation undertaken which had included Scrutiny Panels and Area Forums as referred to in section 4 and Appendix 1 of the report.

5.               The budget pressures set out in section 7 of the report.

6.               The recommended capital programme 2013/14 – 2017/18 as detailed in section 9 and Appendix 5 of the report.

7.               The Medium Term Financial Plan as set out in section 10 of the report. In particular Members’ attention was drawn to paragraph 10.10 of the report. The Council was determined to deliver cashable savings that kept Council tax low whilst at the same time maintaining or improving the quality of priority services wherever possible. However, it also recognised that efficiency savings were not inexhaustible and continuing reductions to public sector funding made cuts to services inevitable.

8.               Appendix 8(a) of the report providing a Statement of the Section 151 Officer on the robustness of budget estimates and adequacy of the reserves. The external auditor’s review of the Council’s arrangements had concluded that all areas were assessed as “green” with no cause for concern and that the Council had adequate arrangements in place for achieving financial resilience.

9.               Councillor Charalambous proposed an amendment to recommendation 2.10 of the report. It was noted that not all Wards had spent their complete funding allocations from the Enfield Residents’ Priority Fund for 2013/14. Councillor Charalambous requested that the funds be carried over the next financial year rather than returned to general balances as proposed in the report. The recommendation to Council be amended to reflect this change, as detailed in decision 10 below.

10.           Councillor Orhan expressed concern regarding grant damping, as set out in section 5.6 of the report, and the detrimental effect on the Council’s budget. Enfield was calculated as needing over £134m in 2013/14 but the damping system reduced this to £123m resulting in £11.6m of Enfield’s calculated funding being damped away to finance other authorities. The Council continued to raise this issue with the Government at every opportunity.

Alternative Options Considered: The Council had an extensive budget planning and consultation process during which a wide range of options were considered in detail before recommendations were made. Issues raised and discussed  ...  view the full minutes text for item 6.

A report from the Director of Finance, Resources and Customer Services and Director of Health, Housing and Adult Social Care is attached. This seeks approval, for recommendation to full Council, of the revenue estimates of the Housing Revenue Account (HRA) for 2014/15 and the updated position on the HRA 30 year business plan. (Key decision – reference number 3855)

(Report No.179)

(8.30 – 8.35 pm)

Councillor Ahmet Oykener (Cabinet Member for Housing) introduced the report of the Director of Health, Housing and Adult Social Care and Director of Finance, Resources and Customer Services (No.179) presenting for approval the revenue estimates of the Housing Revenue Account (HRA) for 2014/15 and the updated position on the HRA 30 year business plan.

NOTED

1.               The proposal to increase rents in line with national social rent policy which would result in an average increase of 4.6% for Enfield tenants, as set out in section 5 of the report. This would equate to an average increase of £4.43 per week.

2.               The comparative rent increase levels of 7 other London Boroughs, Enfield was in the middle of the range of increases. The average London rent increase was 4.9%.

3.               The proposed service charges for 2014/15; the sheltered housing cleaning charge; leaseholder service charges; and, heating charges as detailed in sections 6, 7, 8 and 9 of the report.

4.               That the updated HRA business plan was detailed in Appendix 9 to the report. The business plan represented a balanced budget with the proposed rent increases.

5.               The temporary accommodation rents set out in Appendix 6 of the report. The rents had not changed from 2013/14.

6.               The Enfield Homes Management Fee outlined in section 14 of the report.

7.               The capital programme for 2014/15 as set out in section 15 of the report. The capital programme for 2014/15 was £63.3m. The Decent Homes funding levels were also noted.

Alternative Options Considered: Two alternatives had been considered; these were not increasing rents in line with the national social rent policy as recommended by the Government and increasing rents above this guideline. These two options were both discounted. If rents were not increased this would mean significant loss of income and would undermine the business plan in future years. The HRA self-financing settlement was based on the assumption that rents were increased in line with national social rent policy. If rents were increased above this policy this would put additional unnecessary financial pressures on tenants.

RECOMMENDED TO COUNCIL that

1.               The detailed revenue estimates of the Housing Revenue Account for 2014/15 be approved.

2.               The rents be increased in line with national social rent policy. This would result in an average increase of 4.6% for Enfield tenants.

3.               All void properties be re-let at target rent.

4.               The level of service charges as set out in Paragraph 6.1 for those properties receiving the services be agreed for 2014/15.

5.               The proposals for increases in other income as detailed in Appendices 2 and 11 of the report be agreed for 2014/15.

6.               The Temporary Accommodation rents as set out in Appendix 6 be agreed for 2014/15 and that authority for any increase be delegated to the Cabinet Member for Housing and Director of Health, Housing and Adult Social Care and the Cabinet Member for Finance and Property and Director of Finance, Resources and Customer Services.

7.               The total HRA capital programme of £63.3m  ...  view the full minutes text for item 7.

A report from the Director of Finance, Resources and Customer Services is attached. This sets out the Council’s revenue budget monitoring position based on information to the end of December 2013. (Key decision – reference number 3762)

(Report No.180)

(8.35 – 8.40 pm)

Councillor Andrew Stafford (Cabinet Member for Finance and Property) introduced the report of the Director of Finance, Resources and Customer Services (No.180) setting out the Council’s revenue budget monitoring position based on information to the end of December 2013. The report forecast an outturn position of £0.388m overspend for 2013/14.

NOTED the continuing budget pressures faced by Schools and Children’s Services, as detailed in section 5.6 of the report, particularly in relation to the issues of no recourse to public funds; unaccompanied asylum seekers; and, former unaccompanied asylum seeking children now 18+. The issues had been discussed in full at the previous Cabinet meeting and Members took this opportunity to reiterate their concerns. Councillor Taylor had written to the previous Immigration Minister and was awaiting a response. In addition, the issue would be raised again with the Borough’s MPs. The requirement for sufficient Government funding to address these needs; and, for the families’ status to be dealt with as quickly as possible, were reiterated. Appropriate representations would continue to be made. Cabinet noted that without these pressures that should be funded by Central Government, then Schools and Children’s Services would be managing within budget.

Alternative Options Considered: Not applicable to this report.

DECISION: The Cabinet

1.               Noted the £0.388m overspend revenue outturn projection.

2.               Agreed to direct departments reporting pressures to formulate and implement action plans to ensure that they remain within budget in 2013/14.

Reason: To ensure that Cabinet were aware of the projected budgetary position for the Authority for the current year including all major budget pressures and underspends which had contributed to the present monthly position and that were likely to affect the Council’s finances over the period of the Medium Term Financial Plan.

(Key decision – reference number 3762)

A report from the Chief Executive is attached. This proposes the re-organisation of the Regeneration, Leisure and Culture department. (Non key)

(Report No.181)

(8.40 – 8.45 pm)

Councillor Del Goddard (Cabinet Member for Business and Regeneration) introduced the report of the Chief Executive (No.181) proposing a reorganisation of the Regeneration, Leisure and Culture Department.

NOTED

1.               That Neil Rousell (Director of Regeneration, Leisure and Culture) would be retiring at the end of March 2014. Councillor Goddard, on behalf of the Cabinet, extended his thanks and best wishes to Neil for his retirement following nearly 38 years as an employee of the Council.

2.               That economic, social and physical regeneration remained a priority for the Council as reflected in the decisions below.

Alternative Options Considered: Retain current structure. However, this would be counter to the Council’s organisation design principles and would place budget pressures elsewhere within the system.

DECISION: The Cabinet agreed

1.               That the post of Director of Regeneration, Leisure and Culture be deleted with effect from 1 April 2014.

2.               To note the transfer of the Assistant Director, Policy, Performance and Economic Regeneration and their responsibilities to the Environment Department and the Assistant Director Leisure, Libraries and Culture and their responsibilities to the Finance, Resources and Customer Services Department with effect from 1 April 2014.

3.               The post of Director of Environment be renamed Director of Regeneration and Environment to reflect the realignment of functions and illustrate that economic, social and physical regeneration remains a priority for the Council.

Reason: The deletion of the Director of Regeneration, Leisure and Culture post and redistribution of responsibilities would help the Council meet its savings targets, while simultaneously maintaining the delivery of value for money services and a more holistic approach to the regeneration agenda.

(Non key)

A report from the Director of Finance, Resources and Customer Services will be circulated as soon as possible. This sets out proposals for future ICT delivery.(Report No.187, agenda part two also refers) (Key decision – reference number 3708)

(Report No.182)

(8.45 – 8.50 pm)

Councillor Andrew Stafford (Cabinet Member for Finance and Property) introduced the report of the Director of Finance, Resources and Customer Services (No.182) setting out proposals for future ICT delivery.

NOTED

1.               That Report No.187 also referred as detailed in Minute No.22 below.

2.               The proposal to award an extension of the contract for four years to Serco until September 2019 for the reasons set out in full in the report. Members attention was drawn to the corporate and social responsibility aspects of the new contract as set out in section 1.3.7 of the report.

3.               That staff surveys were undertaken on ICT performance and that the overall satisfaction levels were good and had been increasing year on year. There would be on-going performance monitoring. Councillor Orhan praised the service received by Members.

4.               The significant amount of work which had been undertaken over a period of 18 months.

5.               Councillor Goddard noted that three new IT apprenticeships would be created a year, up to 15 positions over the contract period. Members asked whether the apprentices would remain in employment at the end of their apprenticeship and asked that this issue be considered within the terms of the contract.

Alternative Options Considered: NOTED the options which had been reviewed and discounted as set out in section 4 of the report.

DECISION: The Cabinet agreed to

1.               Award extension for full four years to Serco until September 2019.

2.               Agree changes in operational scope and delivery, commencing October 2014.

3.               Approve delegated authority to the Cabinet Member for Finance and Property and Director of Finance, Resources and Customer Services, for procurement and award of transition assurance partner and subsequent internal transition costs.

4.               Note the following proposed key milestones:

·       Transition activity to the new operating model would begin in April 2014

·       New pricing schedule commences October 2014

·       Full operation of the delivery model in place by January 2015

Reason: To secure the core operational ICT support for the next 5 years with Serco (section 5 of the report refers).

(Key decision – reference number 3708)

A report from the Director – Environment and Director of Health, Housing and Adult Social Care is attached. This seeks approval to the award of the Enfield Council Grounds Maintenance Contract and Housing Grounds Maintenance Contract. (Report No.188, agenda part two also refers) (Key decision – reference numbers 3840/3841)

(Report No.183)

(8.50 – 8.55 pm)

Councillors Ahmet Oykener (Cabinet Member for Housing) and Chris Bond (Cabinet Member for Environment) introduced the report of the Director – Environment and Director of Health, Housing and Adult Social Care (No.183) detailing the evaluation exercise for the Enfield Council, and Housing Grounds Maintenance Contracts, which were tendered through London Tenders Portal in November 2013.

NOTED

1.               That Report No.188 also referred as detailed in Minute No.23 below.

2.               That this represented an excellent example of Enfield Homes and the Council working together and it was hoped that there would be further opportunities to do so.

3.               The biodiversity and green waste aspects of the contract specifications.

Alternative Options Considered: None to be considered.

DECISION: The Cabinet agreed

1.               To note and approve the award of the Enfield Council Grounds Maintenance Contract and Housing Grounds Maintenance Contract (G/MD369 and G/MD370 respectively) to the contractor listed in the part 2 report (Minute No.23 below refers), to commence on 1 April 2014 for a five-year term with five year extension or part thereof.

2.               To note that the details of the evaluation exercise were contained in the part 2 report (Minute No.23 below refers).

Reason: To accept the tender that achieved the highest overall combined (financial and quality) evaluation score, in accordance with the tender requirements and evaluation process. 

(Key decision – reference numbers 3840/3841)

A report from the Director of Health, Housing and Adult Social Care and Director of Finance, Resources and Customer Care is attached. This outlines proposals for investment in the private rented sector. (Report No.189, agenda part 2 also refers) (Key decision – reference number 3782)

(Report No.184)

(8.55 – 9.00 pm)

Councillor Ahmet Oykener (Cabinet Member for Housing) introduced the report of the Director of Health, Housing and Adult Social Care and Director of Finance, Resources and Customer Services (No.184) setting out proposals for investment in the private rented sector.

NOTED

1.               That Report Nos.189 and 189A also referred as detailed in Minute No.24 below.

2.               Councillor Oykener took this opportunity to express his thanks and appreciation to Hayley Coates for her hard work in moving this project forward.

3.               The extensive discussions which had taken place and the reasons for the proposals as set out in the report. The demand for temporary accommodation was significant and there were increasing pressures on housing supply for residents of the borough. The financial implications of the proposals were noted. This represented an innovative proposal which was financially viable and represented value for money for the Council and its residents.

4.               An amendment sheet was circulated at the meeting detailing a revision to paragraph 3.18 of the report regarding the initial company structure. Paragraph 3.18 to now read:

“Initially it is proposed that the board membership be as follows:

·       3 x Cabinet Members – one of whom will be the Chair. The Cabinet Members will be determined by Cabinet

·       Director of Finance, Resources and Customer Services – who will also be Company Managing Director

·       Assistant Director of Community Housing

·       Assistant Director Corporate Governance – who will also be the Company Secretary

·       2 Non-Executive Directors (to be remunerated)”

Initially the three Cabinet Members on the board membership would be as follows, as set out in decision 8 below: Cabinet Member for Finance and Property (Chair); Cabinet Member for Housing; and, Deputy Leader of the Council.

Alternative Options Considered: NOTED the alternative options which had been considered as set out in full in section 4 of the report.

DECISION: The Cabinet agreed

1.               The principle of utilising appropriate investment to develop a portfolio of houses (through a wholly owned company), subject to properties meeting the agreed financial criteria.

2.               To establish a company limited by shares, wholly owned by the Council in line with the proposed structure set out in sections 3.16 – 3.20, to own and manage the properties.

3.               Delegate to the Director of Finance, Resources and Customer Services, Director of Health, Housing and Adult Social Care, Cabinet Member for Finance and Property and the Cabinet Member for Housing authority via a portfolio decision to finalise the timing, profile of acquisitions and the detail of the funding arrangements for each phase of the portfolio development, based on the most viable finance stream available, type and level of housing need at that time, and the Council’s best interests, including but not limited to:

·       Approval of the terms of the investment

·       The terms of any guarantee to be provided to support the provisions of the investment

·       The term of any loan agreement between the Council and the Company

·       Such other mattes as are regarded as necessary to enable the provision of the investment and acquisition of  ...  view the full minutes text for item 12.

No issues have been raised for consideration at this meeting.

NOTED that no issues had been raised for consideration at this meeting.

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

Members are asked to consider any forthcoming key decisions for inclusion on the Council’s Notice of Key Decision List.

Note: the next Notice of Key Decision List is due to be published on 28 February 2014, this will be effective from 1 April 2014.

NOTED that the Notice of Key Decision list was due to be published on 28 February 2014, this would be effective from 1 April 2014.

To confirm the minutes of the previous meeting of the Cabinet held on 22 January 2014.

AGREED that the minutes of the previous meeting of the Cabinet held on 22 January 2014 be confirmed and signed by the Chairman as a correct record.

To receive, for information, the minutes of a meeting of the Enfield Residents’ Priority Fund Cabinet Sub-Committee held on 16 January 2014.

NOTED the minutes of a meeting of the Enfield Residents’ Priority Fund Cabinet Sub-Committee held on 16 January 2014.

There are no written updates to be received at this meeting.

There are no written updates to be received at this meeting.

To note that the next meeting of the Cabinet is scheduled to take place on Wednesday 12 March 2015 at 8.15pm.

NOTED that the next meeting of the Cabinet was scheduled to take place on Wednesday 12 March 2014 at 8.15pm.

Councillor Del Goddard (Cabinet Member for Business and Regeneration) extended his apologies for absence for this meeting.

Councillor Doug Taylor (Leader of the Council) took this opportunity to advise Members that the Council was closely monitoring any potential flood risk areas in the Borough. Members noted the flood risk alleviation works which had previously been undertaken by the Council in respect of Salmons Brook.

RESOLVED in accordance with Section 100A (4) of the Local Government Act 1972 to exclude the press and public from the meeting for the item of business listed on part 2 of the agenda on the grounds that it involves the likely disclosure of confidential 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).

A report from the Director of Finance, Resources and Customer Services is attached. This should be read in conjunction with Report No.178, agenda part one refers. (Key decision – reference number 3764)

(Report No.186)

(9.10 – 9.15 pm)

Councillor Andrew Stafford (Cabinet Member for Finance and Property) introduced the report of the Director of Finance, Resources and Customer Services (No.186).

NOTED

1.               That Report No.178 also referred as set out in Minute No.6 above.

2.               That the format of the schedules would be revised for Council in order to clarify those fees and charges for parks and outdoor facilities which were not shown in part two as they already appeared in the part one report. Explanatory text should be added as appropriate.

Alternative Options Considered: As detailed in Report No.178, Minute No.6 above refers.

RECOMMENDED TO COUNCIL that the Pest Control, Commercial Waste, Sports Pitches and Schools Health and Safety Fees and Charges for Environmental Services be agreed as set out in section 3.1 of the report.

Reason: As detailed in Report No.178, Minute No.6 above refers.

(Key decision – reference number 3764)

A report from the Director of Finance, Resources and Customer Services will be circulated as soon as possible. This should be read in conjunction with Report No.182, agenda part one refers. (Key decision – reference number 3708)

(Report No.187)

(9.15 – 9.20 pm)

Councillor Andrew Stafford (Cabinet Member for Finance and Property) introduced the report of the Director of Finance, Resources and Customer Services (No.187).

NOTED

1.               The contents of this report, in conjunction with Report No.182 as detailed in Minute No.10 above.

2.              The terms of the contract and the savings to be achieved as set out in the report.

3.              The assurances provided in respect of Serco and the significant work which had been undertaken in this regard. Members’ attention was also drawn to the written ministerial statement appended to the part one report.

Alternative Options Considered: As detailed in Report No.182, Minute No.10 above refers.

Reason: As detailed in Report No.182, Minute No.10 above refers, and section 5 of this report.

(Key decision – reference number 3708)

A report from the Director – Environment and Director of Health, Housing and Adult Social Care is attached. This should be read in conjunction with Report No.183, agenda part one refers. (Key decision – reference numbers 3840 and 3841)

(Report No.188)

(9.20 – 9.25 pm)

Councillor Chris Bond (Cabinet Member for Environment) introduced the report of the Director – Environment and Director of Health, Housing and Adult Social Care (No.188).

NOTED

1.               That Report No.183 also referred as detailed in Minute No.11 above.

2.               The tender evaluation details and savings to be achieved as set out in the report.

Alternative Options Considered: None.

Reason: As detailed in section 5 of the report.

(Key decision – reference numbers 3841/3842)

A report from the Director of Health, Housing and Adult Social Care and Director of Finance, Resources and Customer Services is attached. This should be read in conjunction with Report No.184, agenda part one refers. Note: Super Part 2 information will be tabled at the meeting under restricted circulation. (Key decision – reference number 3782)

(Report No.189)

(9.25 – 9.30 pm)

Councillor Ahmet Oykener (Cabinet Member for Housing) introduced the report of Director of Health, Housing and Adult Social Care and Director of Finance, Resources and Customer Services (No.189).

NOTED

1.               That Report No.184 also referred as detailed in Minute No.12 above.

2.               Report No.189A containing super part 2 information together with an amendment sheet, was circulated at the meeting and collected in again following consideration.

3.               The detailed financial implications of the proposals as set out in the report. Attention was drawn to section 3.16 of the report, the format of which had been amended and circulated in an amendment sheet at the meeting as part of the super part 2 report. The project was financially viable for the reasons set out in the report. A number of exit strategies had been considered should the model not be appropriate in the future. The model had been reviewed by external financial and legal experts.

4.               That this represented a significant initiative and was an excellent example of the Council working as “one team”.

5.               In response to a query raised by Councillor Goddard, clarification was provided on the sequence of the figures set out in paragraph 1.3 of the super part 2 report.

6.               A discussion took place on the assumed rent levels and clarification was provided by Ray James (Director of Health, Housing and Adult Social Care).

7.               The pressures currently being faced by the Council as set out in full in the report. It was felt that the proposed way forward would be in the best interests of the borough’s residents and tenants.

Alternative Options Considered: As detailed in Report No.184, Minute No.12 above refers and section 4 of the report.

DECISION: The Cabinet agreed

1.               To note that this model offered the opportunity for the Council to realise savings and reduce pressure on temporary accommodation. For every family moved from Nightly Paid Accommodation to the proposed property portfolio there would be a temporary accommodation budget saving estimated at the figure detailed in the report (recommendation 2.1), per unit per annum based on current prices. For every 100 units purchased and used by the Council to discharge its statutory homeless duty, there would be temporary accommodation saving estimated at the figure detailed in the report (recommendation 2.1), per annum (assuming full year effect).

2.               To develop a property portfolio in a phased approach, subject to individual properties meeting the agreed level of financial viability with a review of overall portfolio viability on at least an annual basis. The property portfolio would comprise up to the number of units detailed in recommendation 2.2 of the report, over a five year period with a maximum cost of the figure detailed in recommendation 2.2 of the report.

3.               To agree the financial model and assumption for a percentage, as detailed in recommendation 2.3 of the report, per annum rental increase. Note the prudent assumptions of the percentage (as per recommendation 2.3 of the report) expenditure inflation and capital appreciation, as detailed  ...  view the full minutes text for item 24.