Agenda and minutes

The following declarations of non-pecuniary interests were made:

Ø  Councillor Ashraf - items 10 (Proposed Expansion of Jo Richardson Comprehensive School, Gascoigne Primary School and Marsh Green Primary School) and 11 (Review of School Places and Capital Investment) - Council-appointed Governor of Gascoigne Primary School;

Ø  Councillor Carpenter - item 11 (Review of School Places and Capital Investment) - Council-appointed Governor of the Adult College;

Ø  Councillor Worby - item 7 (Future of Barking Enterprise Centre) - Employee of East Thames Group which has an interest in The Foyer building.

The minutes of the meeting held on 16 February 2015 were confirmed as correct.

The Cabinet Member for Finance introduced the report on the Council’s capital and revenue position for the 2014/15 financial year, as at 31 January 2015.

The General Fund showed a projected end of year spend of £166.6m against the total approved budget of £165.3m, an improvement of £300,000 on the previous month’s position.  The Cabinet Member advised that he remained confident that a balanced budget would be achieved by the year end but added that the measures that had helped to turn the position around, such as the freeze on all non-essential expenditure, should not be seen as long-term solutions.  Following on from that point, the Leader advised that he would like senior officers to give presentations to Cabinet Members over the coming months on the key budget issues and pressures relating to their services.

The Housing Revenue Account (HRA) was showing a predicted breakeven position while capital budgets continued to show some significant underspends in several areas, including the Housing New Builds and Decent Homes programmes.

Officers clarified issues regarding VAT refunds and, in respect of the HRA, the projected revenue contribution to capital of £35.7m.  The Corporate Director of Children’s Services also responded to issues relating to the in-house fostering service, pointing out that it had the highest placement level across all London authorities, and the overspend within the department.  In respect of the latter, the Corporate Director undertook to provide Cabinet Members with the report presented to the Public Accounts and Audit Select Committee earlier in the year on the steps being taken to mitigate the overspend and achieve a balanced budget going forward.

Cabinet resolved to:

(i)  Note the projected outturn position for 2014/15 of the Council’s General Fund revenue budget at 31 January 2015, as detailed in paragraphs 2.1, 2.4 to 2.10 and Appendix A of the report;

(ii)  Note the progress against the agreed 2014/15 savings at 31 January 2015, as detailed in paragraph 2.11 and Appendix B of the report;

(iii)  Note progress against the agreed 2014/15 HRA savings as detailed in paragraph 2.12 and Appendix B of the report;

(iv)  Note the overall position for the HRA at 31 January 2015, as detailed in paragraph 2.12 and Appendix C of the report;

(v)  Note the projected outturn position for 2014/15 of the Council’s capital budget at 31 January 2015, as detailed in paragraph 2.13 and Appendix D of the report; and

(vi)  Approve the inclusion in the 2015/16 Capital Programme of the additional schemes totalling £2m as detailed in paragraph 2.14.2 of the report.

The Leader introduced the performance report for the third quarter period ending 31 December 2014 in respect of the priority projects and performance indicators agreed as part of the Corporate Delivery Plan.

Arising from the discussions, the following issues were highlighted:

·  NEETS (ref. no. 27) - The Cabinet Member for Education and Schools advised that the reduction in the proportion of 16 to 18 year olds not in education, employment or training was encouraging but the issue would continue to be one of her main priorities going forward.  She referred to improvements in data collection and confirmed that the latest information for February 2015 showed that the level of ‘unknowns’ amongst the NEET data set was now lower than the averages for neighbouring Boroughs and also the London and England averages.

·  Looked After Children with up-to-date Health Checks (ref. no. 32) - The Cabinet Member for Adult Social Care and Health commented on the poor performance and undertook to raise the issue with Health partners and, if necessary, at the Health and Wellbeing Board.

·  Housing Re-lets (ref. no. 36) – The Director of Housing advised on the reductions to the specification which had brought the current turnaround of void properties to an average of 35 days.

·  Complaints and Members’ Enquiries (ref. no’s. 50 and 52) – It was noted that the services were going to be the subject of a full review.

·  Barking Riverside (Priority Project) - The Cabinet Member for Regeneration asked for reference to a new railway station to be included.

The Cabinet Member for Children’s Services and Social Care reiterated his wish for a review of the presentation of the performance information and suggested that there should be enhanced narrative, particularly for areas of underperformance, to give a greater understanding of issues and trends.

Cabinet resolved to:

(i)  Note the revised schedule of key performance indicators; and

(ii)  Note the performance for the priority projects and KPIs as at 31 December 2014, as set out in Appendices 1 and 2 to the report.

Appendix C to this report is contained in the exempt section of the agenda.

The Cabinet Member for Regeneration presented a report on a successful bid to the Greater London Authority (GLA) for up to £10m funding towards infrastructure delivery at Barking Riverside.

The funding would deliver 1.2 kilometres of road network which would kick-start the development of approximately 18.7 hectares of brownfield land for new housing, a school campus and retail and leisure developments.  The Cabinet Member also outlined the terms of the proposed funding agreement and repayment arrangements between the Council, the GLA and Barking Riverside Limited.

The Leader took the opportunity to report on the MIPIM conference, the world’s largest property event, which he, the Cabinet Member for Regeneration and the Council’s Group Manager, Economic Development and Sustainable Communities, had recently attended in France.  The conference had provided a platform to showcase the plans and aspirations for Barking and Dagenham and had proved so successful that over 120 potential investors, developers and other organisations were to be invited to a Council-run event later in the year.

Cabinet resolved to:

(i)  Agree the £10m loan from the GLA on the terms set out in the report and delegate authority to the Chief Executive, in consultation with the Head of Legal and Democratic Services, to negotiate and conclude the Grant Funding Agreement;

(ii)  Agree to join and enter into a call off contract under the framework agreement established by the London Highways Alliance Contract (LoHAC);

(iii)  Authorise the Chief Executive, in consultation with the Cabinet Member for Regeneration, the Head of Legal and Democratic Services and the Chief Finance Officer, to negotiate and award the contract and complete the necessary legal agreements associated with the delivery of the new road; and

(iv)  Delegate authority to the Divisional Director of Regeneration, in consultation with the Head of Legal and Democratic Services, to enter into a deed of variation to the Section 106 Agreement with Barking Riverside Limited on the terms set out in the report.

The Cabinet Member for Regeneration presented a report on the proposed future of the Barking Enterprise Centre (BEC) which provided accommodation for around 50 small businesses as well as a base for the Borough’s business start-up and support service for the local community.

The Cabinet Member explained that the BEC, located in Cambridge Road, Barking, had proved very successful since opening in November 2011, to the extent that there was now a waiting list for the small business units.  An assessment of options to enable the BEC to continue to develop while placing it in a self-funding position had identified the opportunity to expand into space within The Foyer building in Wakering Road, Barking, and to establish a Social Enterprise which would run the services from the two locations. 

Discussions with Agilisys, the current provider of the business support services and facilities management at the BEC, had been positive and arrangements agreed in principle regarding the continued involvement of Agilisys until the new Social Enterprise venture was up and running.

The Leader spoke in support of the BEC initiative and the Cabinet Member for Regeneration took on board the suggestion that an all-Member briefing be provided on the BEC and the Dagenham Business Centre.

Cabinet resolved to:

(i)  Agree the proposed establishment of a Social Enterprise to run the Barking Enterprise Centre and Foyer annexe;

(ii)  Delegate authority to the Chief Executive, in consultation with the Cabinet Member for Regeneration, the Head of Legal and Democratic Services and the Chief Finance Officer, to agree the final details of the establishment of the Social Enterprise;

(iii)  Agree to the Foyer Annexe being used for small business space under the management of the Barking Enterprise Centre; and

(iv)  Agree to utilise New Homes Bonus Top Slice funding to meet the cost of the fit out work for the Foyer annexe and for Agilisys’ revenue costs for associated business support between April 2015 and the start of the new service.

Appendix 4 to this report is contained in the exempt section of the agenda.

The Cabinet Member for Finance introduced a report on proposals relating to the procurement of gas and electricity supplies to the Council in anticipation of the expiry of the existing contractual arrangements with LASER in 2016.

The Cabinet Member explained that an options appraisal had identified the appointment of a specialist energy broker, procured through an open tender process, as the most economically advantageous route.  The new contractual arrangements would also give the Council access to additional expertise in respect of the plans to create an energy services company (Minute 115 below).

The Leader spoke in support of the proposals and asked officers to look into the possibility of utilising grant funding from the Department of Energy and Climate Change towards the project.

Cabinet resolved to:

(i)  Agree to the procurement and appointment of an energy broker and to proceed via the broker to procure the Council’s gas and electricity supplies in accordance with the proposals set out in the report;

(ii)  Delegate authority to the Chief Finance Officer, in consultation with the Cabinet Member for Finance, the Director for Housing, the Director of Children’s Services and the Head of Legal and Democratic Services, to negotiate terms and agree the contract documents to fully implement and effect the project for the term, including any options to extend; and

(iii)  Delegate authority to the Director of Housing, in consultation with the Chief Finance Officer and Head of Legal and Democratic Services, to award and execute all of the legal agreements, contracts and other documents on behalf of the Council in accordance with the strategy set out in the report.

Following on from Minute 114 above, the Cabinet Member for Regeneration presented outline plans for the creation of a Council-owned Energy Services Company (ESCO) specifically for the purposes of producing and supplying renewable energy, energy efficiency and related services across the Borough.

The Cabinet Member referred to the key objectives of an ESCO and sought approval to a commitment of £250,000 from the Invest to Save contingency to support the development of the proposals, which would come forward to Cabinet later in the year.  It was also noted that the further report would explore the need for a Shadow Board to oversee any new arrangements.

Members spoke in general support of the proposals, particularly the involvement of the Borough’s schools in the plans, while it was also acknowledged that any plans needed to be ‘future proof’ in view of the long-term investment that would be required.

Cabinet resolved to:

(i)  Approve the principle to establish an Energy Services Company (ESCO) specifically for the purposes of producing and supplying renewable energy, energy efficiency and related services to schools, the corporate estate, housing and the community subject to detailed business planning and due diligence;

(ii)  Approve the interim mission and objectives of the ESCO to frame detailed business planning as follows:

a)  The mission of the ESCO is to help deliver the Council’s energy and carbon reduction objectives;

b)  The proposed objectives of the ESCO will be to:

·  generate savings and surpluses;

·  create and deliver energy related benefits for the corporate estate, housing and schools;

·  identify and deliver affordable energy projects;

·  reduce fuel poverty;

·  reduce carbon emissions;

·  create wider social and economic benefits for the community;

·  develop local energy expertise to support local economic development.

(iii)  Note that a further report would be submitted to Cabinet later in the year setting out a detailed business case prior to the establishment of the ESCO;

(iv)  Approve the allocation of £250,000 from the Invest to Save budget to fund detailed investment programme feasibility studies, business planning and financial and legal advice as set out within the report;

(v)  Approve, subject to satisfactory detailed feasibility studies and availability of satisfactory funding, the procurement of the following investment projects for direct delivery by the Council and potentially through an ESCO, as detailed in paragraph 2.2.3 of the report:

a)  Street lights LED replacement programme (borough-wide);

b)  Photovoltaic (PV) enabled street columns programme (borough-wide);

c)  Wind turbines programme (subject to Cabinet’s agreement to the locations);

d)  River Roding water turbine scheme;

e)  Barking Town Hall renewable energy and energy efficiency works;

f)  Gascoigne renewable energy and combined heat and power facility;

g)  Photovoltaic panel energy programme (corporate estate and initial HRA dwellings);

h)  Combined Heat and Power programme and associated energy efficiency works to Housing Revenue Account properties subject to HRA financing restrictions;

i)  Children’s centres photovoltaic panel programme;

j)  Heat, power and energy services to the borough’s schools.

The Cabinet Member for Education and Schools introduced a report on proposals to formally expand a number of schools to help meet the projected growth in demand for school places in the Borough.

Cabinet resolved to:

(i)  Approve the expansion of Jo Richardson Secondary School from 8 to 10 forms of entry from 1 September 2015;

(ii)  Approve the expansion of Gascoigne Primary School from 5 to 7 forms of entry from 1 September 2016; and

(iii)  Approve the expansion of Marsh Green Primary School from 1 to 2 forms of entry from 1 September 2015.

Further to Minute 124 (30 June 2014), the Cabinet Member for Education and Schools presented the latest report in respect of the progress of various school expansion projects aimed at addressing the demand for school places in the Borough, together with details of the funding allocations from the Department for Education (DfE) and the proposed projects to which the resources would be allocated.

The Cabinet Member gave an update on the latest pupil population projection figures, which included reference to additional pressures as a result of 230 late applications for Year 7 places from September 2015 being received since the national offer date of 1 March 2015.  A number of steps were being taken to mitigate the situation and discussions would continue with Headteachers and Governing Bodies to ensure that the programme of expansions was maintained.

With regard to funding issues, the Cabinet Member referred to the proposed allocations which included the reallocation of previously agreed funding to enable adjustments, agreed with the DfE, to be made to the extent and/or timing of some projects.  The proposals also covered issues such as the relocation of the Adult College, the potential provision of a loan to enable the Riverside School expansion to be delivered on time and the creation of suitable places for two-year olds.

A general discussion ensued regarding the allocation of the DfE grant funding to Academy / Free Schools and whether it was appropriate to, in effect, direct public money to private bodies. The Cabinet Member for Education and Schools referred to a Memorandum of Understanding that had been entered into with all schools in the Borough which sought to address the borough-wide need for additional school places and the Corporate Director of Children’s Services commented that the allocation of funding from the DfE was on the basis that it would be used to support projects across the school estate and not just community schools.  The Corporate Director also clarified issues in relation to the proposed transfer of the Fanshawe site to Sydney Russell School for the provision of a primary school and the proposed relocation of the Adult College to land adjacent to the main Sydney Russell School site, which would continue to be a Council asset.

The Leader acknowledged the concerns expressed by several colleagues regarding the principles associated with Academy / Free Schools and called for a short adjournment, which commenced at 8.33pm before the meeting resumed at 8.50pm.

On reconvening, the Leader suggested that the shorter-term school expansion plans should proceed to enable the immediate demand pressures to be met but that it would be prudent to review some of the longer-term plans, particularly those to the east of the Borough and primarily in Chadwell Heath and Eastbrook wards to ensure that extra capacity was being delivered to the areas experiencing the highest demand.

Cabinet resolved to:

(i)  Approve the Future Planning Programme to meet Basic Need (including SEN places) 2014 to 2020 as set out in section 2  ...  view the full minutes text for item 117.

Further to Minute 36 (24 September 2013), the Cabinet Member for Regeneration introduced a report on proposed highway improvement works at two major road networks to the north and south-east of the Borough.

The Cabinet Member outlined the extent of the proposed works to the Whalebone Lane North and Ballards Road areas which had a combined value of £550,000.  The report also referred to the proposed allocation of the remaining £100,000 from the Transport for London Local Implementation Plan allocation for 2015/16 to support further feasibility work in connection with downgrading / narrowing of the A1306 New Road and further improvements to the Ballards Road area.

Cabinet resolved to:

(i)  Approve the draft proposals for highways improvements to Whalebone Lane North and Ballards Road as set out in the report;

(ii)  Agree the programme of community consultation and engagement with relevant stakeholders in respect of the proposals;

(iii)  Authorise the Divisional Director of Regeneration, in consultation with the Cabinet Member for Regeneration, to agree and implement the final schemes following the public consultation; and

(iv)  Authorise the Divisional Director of Regeneration to refine the outline plans to reconfigure / simplify the Ballards Road/New Road junction and to ascertain the potential for and costs of downgrading the A1306 New Road, in preparation for the submission of a Major Scheme bid to Transport for London in September 2016.

Further to Minute 73 (16 December 2014), the Cabinet Member for Environment introduced a report on the proposed procurement of two contracts to support the in-house Vehicle Maintenance service.

Cabinet resolved to:

(i)  Agree the procurement of a contract for Vehicle Workshop Stores, to be delivered via a tender process in line with EU Procurement Regulations and in accordance with the strategy as set out in the report;

(ii)  Agree the procurement of a contract for the Provision of Tyres and Associated Services, to be delivered through direct appointment using an EU compliant framework contract and in accordance with the strategy as set out in the report; and

(iii)  Authorise the Corporate Director of Adult and Community Services, in consultation with the Cabinet Member for Environment, the Head of Legal and Democratic Services and the Chief Finance Officer, to conduct the procurement and award the contracts to the successful bidders in accordance with the strategy set out in the report.