Agenda and minutes

In accordance with the Council’s Constitution, Members are asked to declare any interest they may have in any matter which is to be considered at this meeting.

Councillor Worby declared a disclosable pecuniary interest in respect of items 14 and 18 on the agenda which related to the Gascoigne Estate (East) Regeneration proposals, as she was an employee of East Thames Group, the Council’s delivery partner in the project.  Councillor Worby left the meeting at the appropriate points and took no part in the discussions.

The minutes of the meeting held on 30 June 2014 were confirmed as correct.

The Leader presented a report on the proposed new vision and priorities for the Borough to reflect the changing relationship between the Council, partners and the community, the Council’s role in place shaping and enabling community leadership within the context of a significantly reducing budget and the ambitions of the new administration following the 2014 Local Elections.

The proposed vision for the borough was “One borough; one community; London’s growth opportunity” and the three corporate priorities that would support the vision were:

·  Encouraging civic pride

·  Enabling social responsibility

·  Growing the borough

The Leader elaborated on the key objectives that underpinned each of the priorities and the Chief Executive referred to the work that would be undertaken to publicise and implement the vision and priorities following their presentation to the Assembly for adoption on 17 September 2014.

Cabinet Members spoke in support of the new vision and priorities and made a number of observations which included:

Ø  Local events already taking place across the Borough which encouraged civic pride;

Ø  The need to stress the importance of affordable, high quality homes to all developers wishing to build in the Borough;

Ø  The need to recognise that narrowing the gap in attainment does not apply only to children’s education but to the whole community and across a range of areas;

Ø  The desire to raise aspirations and attract inspirational people to the Borough;

Ø  The need to strengthen the environment for the private sector to help develop the skills base and opportunities for the local community;

Ø  The need for all communications on the new vision and priorities to be adapted to suit the audience to which they are directed.

The Leader advised that each Directorate had been tasked with working with the relevant Cabinet Members over the coming months to consider how the high level objectives could be developed into practical solutions for each service area and be brought together into a detailed Corporate Delivery Plan.

Cabinet resolved:

(i)  To support the refreshed vision and priorities, as detailed in Appendices 1 to 4 to the report, and recommend the Assembly to adopt the vision and priorities following consultation with partners and the community; and

(ii)  To approve the priority projects, as set out in paragraph 3.2 of the report, and the development of a detailed Corporate Delivery Plan to monitor implementation of the vision and priorities, subject to approval by the Assembly.

The Leader introduced a report on the corporate priority performance information for the period to 31 December 2013, which included specific details of several areas where performance had either greatly improved or deteriorated during the year as well as general information on the achievement of targets in relation to the Council’s key performance indicators.

Arising from the discussions, the following issues were raised:

·  Domestic Violence Offences - it was noted that repeat incidents of domestic violence had increased from 21% in 2012/13 to 25% in 2013/14 and the Cabinet Member for Children’s Social Care questioned why the issue had not been identified as one of the selected indicators which merited a detailed narrative.  The Cabinet Member for Adult Social Care and Health commented that the Metropolitan Police may point to the proactive work they have done in the local community to encourage reporting of domestic violence as a major factor for the increase. 

The Cabinet Member for Children’s Social Care also referred to some information that he had seen which suggested that Barking and Dagenham had the highest domestic violence figures in London.  It was noted that OFSTED may have been the source of that information, but the figures quoted were not recognised by the Council as having come from any official source.

The Cabinet Member for Crime and Enforcement advised that Barking and Dagenham was piloting a new Metropolitan Police ‘Domestic Violence Protection Order’ initiative and the first order had already been issued. 

The Cabinet was also pleased to note that the Council’s Youth Offending Service had been selected as runners-up in the Community Sentences - Young People category of the Howard League for Penal Reform’s Community Programmes Awards 2014.

·  Homeless applications - the Cabinet Member for Children’s Social Care referred to the 31% increase in applications accepted during the year and asked for an explanation of the reasons.

·  Household waste recycling - in response to a question regarding the fall in recycling / composting levels, the Cabinet Member for Environment undertook to investigate the issues regarding contamination rates which were being blamed for the ‘red’ rating and also referred to new initiatives relating to the recycling of plastics and mattresses.

·  Processing of Housing / Council Tax Benefit change events - the Cabinet Member for Education and Schools commented on the significant improvement in the number of days taken to process change events, which had reduced from an average of 21 days in 2012/13 to 9 days in 2013/14.

·  Common Assessment Frameworks (CAFs) - in response to a question from the Cabinet Member for Environment, the Divisional Director of Children’s Strategic Commissioning and Safeguarding commented that the number of CAFs initiated by schools compared to children’s centres was now much closer and undertook to provide Cabinet Members with the details.

The Leader invited Cabinet Members to work with their Directorates to review and develop the performance monitoring framework in the context of the greater focus on core services and the new vision and priorities proposals.

Cabinet  ...  view the full minutes text for item 4.

The Leader introduced the report on the Council’s capital and revenue position for the 2014/15 financial year, as at 30 June 2014.

The General Fund showed a projected end of year spend of £167.87m against the total approved budget of £165.32m, which would reduce the General Fund balance to £24.59m at the year end.  The Housing Revenue Account (HRA) was projected to break-even, maintaining the HRA reserve at £8.74m while the Capital Programme showed a projected spend of £152.11m against the total revised budget of £153.97m.

The projected overspend on the General Fund related to a pressure of £2.98m in respect of the Children’s Services Complex Needs and Social Care division.  The Leader advised that the matter was under review and the Chief Finance Officer commented on the potential solutions to bring the budget back into line.  The Cabinet Member for Education and Schools acknowledged the difficulties being caused by the current levels of social care need and pressures on placements but pointed out that the Children’s Services department was delivering on the in-year savings target of £2.964m for 2014/15.  In respect of the latter, the Chief Finance Officer apologised for the omission of any narrative on the Children’s Services savings contained within Appendix B to the report.

Other issues raised during the discussions included:

·  Capital expenditure of £255,000 on the Controlled Parking Zones (CPZ) 2013 to 2015 project - The Chief Finance Officer confirmed that income from CPZ fees and charges would finance the project;

·  The significant under-achievement against the Facilities Management savings target of £300,000 - The Leader raised concerns that only £5,000 was projected when he understood that all staff had been relocated from 2 and 90 Stour Road offices; and

·  The savings target of £9,000 in respect of mobile telephone masts in parks - The Cabinet Member for Children’s Social Care suggested that the income level could be increased through higher charges to the mobile telephone operators.

The report also included a proposal to release £1m set aside for the Asset Strategy programme for inclusion in the 2014/15 Capital Programme.

Cabinet resolved:

(i)  To note the projected outturn position for 2014/15 of the Council’s General Fund revenue budget at 30 June 2014, as detailed in paragraphs 2.4 to 2.9 and Appendix A of the report;

(ii)  To note the progress against the 2014/15 savings targets at 30 June 2014, as detailed in section 3 and Appendix B of the report;

(iii)  To note the position for the HRA at 30 June 2014, as detailed in section 4 and Appendix C of the report;

(iv)  To note the projected outturn position for 2014/15 of the Council’s capital budget as at 30 June 2014, as detailed in section 5 and Appendix D of the report; and

(v)  To approve the inclusion in the 2014/15 Capital Programme of the previously agreed £1m for the Asset Strategy programme, as detailed in paragraph 5.3 of the report.

The Leader introduced the Treasury Management Annual Report for 2013/14 which set out the key areas of performance during the year.  The report also included proposals to vary aspects of the Council’s Investment Policy to enable officers to take advantage of competitive two-year investment rates available from the Royal Bank of Scotland, as well as other amendments that may be required as a result of the Cabinet’s consideration of the Gascoigne Estate (East) Phase 1 and Abbey Road Phase 2 Funding Proposals report later on the agenda.

The Cabinet Member for Education and Schools congratulated officers on achieving an interest return on investments of £1.32m during the year.

Cabinet resolved to recommend the Assembly:

(i)  To note the Treasury Management Annual Report for 2013/14;

(ii)  To note that the Council complied with all 2013/14 treasury management indicators;

(iii)  To note that the Council did not borrow in 2013/14 to finance its capital programme but utilised internal cash in line with its strategy;

(iv)  To agree an increase in the period the Council can invest with the Royal Bank of Scotland (RBS) from one year to a maximum of two years, as outlined in section 4.5 of the report;

(v)  To approve the actual Prudential and Treasury Indicators for 2013/14; and

(vi)  To delegate authority to the Chief Finance Officer, in consultation with the Cabinet Member for Finance, to approve appropriate amendments to the authorised and operational borrowing limits and proportionally amend the counterparty lending limits within the Treasury Management Strategy Statement, to reflect the decisions made in respect of the “Gascoigne Estate (East) Phase 1 and Abbey Road Phase 2 Funding Proposals” (item 18 on the agenda).

The Cabinet Member for Housing presented a report on proposals to amend some of the recent policy changes in respect of the Council’s Housing Allocations Policy.

Two aspects had been reviewed, the first in relation to the length of the residential qualification requirement approved by Cabinet on 8 April 2014 (Minute 106 (i)(a)) and the second in relation to the allocation of Council homes let above social rent levels approved by Cabinet on 18 December 2013 (Minute 76(v)).  The Cabinet Member explained that the 10-year residential qualification requirement due to be introduced from 1 September 2014 had been reviewed in the light of decisions taken by the neighbouring Councils of Havering, Newham and Redbridge to set their residential qualification at three years.  The Cabinet Member also referred to the six key issues covered in paragraph 2.1 of the report that supported a reduction to a three-year qualification, which included reference to the Equalities Impact Assessment carried out as part of the original proposal that had indicated that a residential qualification requirement over five years could have disproportionate impacts within the local community.

In respect of the allocation of Council homes let above social rent levels, it was felt appropriate to extend the criteria to enable working households from outside of the Borough to qualify in the event that there was insufficient demand from those in employment who currently lived in the Borough to, amongst others, help to promote social and economic regeneration.

Cabinet resolved:

(i)  To agree the following changes to the Council’s Housing Allocations Policy, to take effect from 3 November 2014:

(a)  A revised three-year residential requirement for all new applications to be placed on the Housing Register;

(b)  Council homes with rents above social rent levels should be exclusively for working households and not restricted to borough residents if there is insufficient demand within the borough;

(c)  That the policy be reviewed annually.

(ii)  To agree the revocation of the decision made by Minute 106 (i) (a) of the Cabinet on 8 April 2014 to implement, with effect from 1 September 2014, a 10-year residential requirement.

The Cabinet Member for Regeneration presented a report on the opportunity for the Council to bid for funding towards new housing developments under the Greater London Authority (GLA) London Housing Zones (LHZ) programme.

The Cabinet Member referred to the GLA’s criteria for applications and outlined the merits of potential bids in relation to Barking Town Centre, Barking Riverside, Chadwell Heath and Beam Park.  Bids in relation to Barking Town Centre and Barking Riverside were considered to be the most viable at the current point in time and, to that end, draft vision documents for those projects had been developed and were included at Appendix 1 to the report.

Issues which arose during the discussions included:

·  The detrimental impact on the Town Centre of the proposed sale by Barclays Bank of its lease on the landmark premises in the Town Square to a bookmaker.  It was noted that the Local Government Association was lobbying the Government on behalf of local authorities to change the planning regime to give local authorities powers in respect of all new betting office premises, but the likelihood was that any changes would come too late to enable the Council to prevent the current proposal. 

·  The desire for Barking Railway Station to be categorised as a Zone 3 station in line with other re-categorisations approved by Transport for London, particularly in view of the £5m investment recently announced by National Express to implement an improvement scheme to the Grade II Listed station by 2017.

·  The need to learn lessons from previous developments in the Borough to ensure that all new developments were of a high quality and were not compromised by third party deadlines.  To that end, the Cabinet Member for Regeneration referred to the possibility of a visit being arranged to view an exciting development site managed by Grainger plc who were soon to be the first commercial private rented sector (PRS) company to operate a PRS scheme in the Town Centre.

·  The need to deal with the ‘oppressive entrances’ leading into the Barking Riverside area through the Council’s regeneration plans.

·  The role of the Adult College, the Technical Skills Academy and other upskilling initiatives in the Borough should be prominent in the Council’s applications to the GLA.

The Leader advised on a recent positive meeting with the Mayor for London and a number of his advisers to discuss the Council’s regeneration plans for Barking Riverside and a further meeting would take place during the week with the Deputy Mayor for Policy and Planning. 

Cabinet resolved:

(i)  To agree to the development of a London Housing Zone bid for Barking Town Centre and Barking Riverside, as referred to in Appendix 1 to the report; and

(ii)  To delegate authority to the Chief Executive, in consultation with the Cabinet Members for Regeneration and Housing, the Leader and the Head of Legal and Democratic Services, to approve the final bid for submission to the Greater London Authority.

The Cabinet Member for Regeneration introduced a report on proposals to procure a new Framework Agreement for Construction Related Professional Services as the current arrangements were due to expire in March 2015.

Cabinet resolved:

(i)  To approve the procurement of a new Construction Related Professional Services Framework Agreement for the provision of the services, in accordance with the strategy set out in the report;

(ii)  To authorise the Director of Growth, in consultation with the Cabinet Member for Regeneration, the Chief Finance Officer and the Head of Legal and Democratic Services, to conduct the procurement and award the contract to the successful bidders; and

(iii)  That a report on the first year’s performance of the successful bidders and their use of local labour and local supply chains be presented to the Cabinet in respect of this Framework.

The Cabinet Member for Housing introduced a report on proposals for the procurement of separate Framework Agreements for housing refurbishment and new build.

Cabinet resolved:

(i)  To agree the procurement of new Housing Framework Agreements for the provision of the services, in accordance with the strategy set out in the report;

(ii)  To authorise the Director of Housing, in consultation with the Cabinet Member for Housing, the Chief Finance Officer and the Head of Legal and Democratic Services, to conduct the procurement and award the contract to the successful bidders; and

(iii)  That a report on the first year’s performance of the successful bidders and their use of local labour and local supply chains be presented to the Cabinet in respect of this Framework.

The Leader introduced the performance report for the final quarter period ending 31 March 2014 in respect of the debt management function carried out by the Revenues and Benefits Service within Elevate East London, together with details of the debts written-off as uncollectable during the period and comparable information from previous years.

The Leader referred to the above-target performance in respect of Council Tax, rents, leaseholders and general income collection rates and the Chief Finance Officer elaborated on the significant improvement in the leaseholder collection rate over the past few years.  The Chief Finance Officer also explained the background to the build-up of the former tenant arrears which made up the top 10 debts written-off during the final quarter, the process for pursuing arrears and circumstances which may be taken into account when dealing with those in arrears.  In response to a question from the Cabinet Member for Children’s Social Care, the Chief Finance Officer undertook to provide him with details of the processes relating to “Use and Occupation” cases.

Cabinet resolved:

(i)  To note the report as it relates to the performance of the debt management function carried out by the Revenues and Benefits service operated by Elevate East London, including the performance of enforcement agents; and

(ii)  To note the debt write-offs for the fourth quarter of 2013/14 and that a number of those debts would be publicised in accordance with the policy agreed by Cabinet.

The Cabinet Member for Adult Social Care and Health presented a report on the Care City proposals being jointly progressed by the Council and the North East London Foundation Trust (NELFT).

Cabinet Members spoke in support of what was considered to be an exciting and ground-breaking initiative that was primarily aimed at improving the health outcomes of local residents.  Other key outcomes included contributing to the regeneration of Barking Town Centre, creating a high quality research centre for dementia care and other long-term conditions and developing new opportunities for education and employment for local people who wanted to work in the health and social care sector. 

The Cabinet Member for Education and Schools commented that the Adult College would be a willing partner in the Education and Skills Escalator.  The Cabinet Member for Children’s Social Care suggested that Unison should also be approached as a potential stakeholder in the project in view of its considerable work to enhance the care profession.

It was noted that the location and funding proposals for the project were covered in more detail in the “Abbey Sports Centre Site - Future Use” report later on the agenda.

Cabinet resolved:

(i)  To note the partnership agreement and initial funding arrangements entered into by the Health and Wellbeing Board in respect of Care City; and

(ii)  To support the further development of Care City in Barking and its contribution to the wider regeneration of the Town Centre.

(Prior to consideration of the matter, Councillor Worby left the meeting in view of her pecuniary interest as an employee of East Thames Group and took no part on the discussions.)

(The Chair agreed that a report advising on the outcome of the Living and Working Select Committee’s (LWSC) consideration of the call-in could be considered at the meeting as a matter of urgency under the provisions of Section 100B(4)(b) of the Local Government Act 1972.)

The Cabinet Member for Regeneration reported on the call-in that had been submitted by Councillors Tarry and Young in respect of decisions made by the Cabinet under Minute 128 (30 June 2014) in relation to the Gascoigne Estate (East) Regeneration Proposals - Site Masterplan and Phase 1 proposals.

The Cabinet Member advised that the LWSC had upheld the call-in on both matters before it, which related to the proposed tenure mix of the housing redevelopment and the contribution of East Thames Group, the Housing Association partner for the project, towards the provision of decant properties. 

With regard to the proposed tenure mix, the LWSC had concluded that the new proposal was not in line with the Council’s priority of “Invest in Council housing to meet need”, on the basis that the 30 June 2014 report to Cabinet indicated that the overall tenure mix for all four phases of the entire Gascoigne Estate (East) redevelopment would now be 42% private, 33% shared ownership and 25% affordable rent, as opposed to indicative figures of 33% private, 33% social rented and 33% intermediate housing when the matter was considered by the Cabinet on 20 September 2011 (Minute 39).  The Cabinet Member commented that the proposed tenure mix for Phase 1 of the project, which was the only phase of the project that the Cabinet on 30 June 2014 was asked to approve, had an indicative tenure mix of 12% private, 45% shared ownership and 43% affordable rent, which provided more affordable housing than that which the call-in was seeking to achieve.  In respect of the Council’s vision and priorities, the Cabinet Member referred to the vision and priorities document at page 1 of the Cabinet agenda which, in addition to the priority of “Invest in Council housing to meet need” also listed “Widen the housing choice” and “Invest in new and innovative ways to deliver affordable housing”. 

The Cabinet Member questioned, therefore, the validity of the LWSC’s findings as he felt that the decisions taken by Cabinet on 30 June 2014 were entirely in line with those priorities and the main theme of “Create thriving communities by maintaining and investing in new and high quality homes”.  The Cabinet Member also referred to the five main objectives listed in the 30 June 2014 report which the Council had established for the delivery of new mixed tenures of housing and sustainable communities on sites in its ownership which, again, he felt were fully reflected in the Phase 1 proposals.

In relation to the decanting issue, the  ...  view the full minutes text for item 13.

Cabinet resolved to exclude the public and press for the remainder of the meeting by reason of the nature of the business to be discussed which included information exempt from publication by virtue of paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972 (as amended).

Further to Minute 66 (19 November 2013), the Cabinet Member for Regeneration presented a report on the outcome of the initial tendering exercise for the sale of the Abbey Sports Centre site as a mixed use commercial leisure-led development and revised proposals for the site in the light of the desire for the Care City initiative to form part of any future development on the site.

Cabinet Members noted details of the bids received, via the initial tendering exercise, and considered two options for inviting revised tenders from the bidding companies which would include different degrees of provision for the Care City development in addition to commercial leisure uses, such as a cinema and restaurants.  The Cabinet Member for Regeneration also alluded to the likelihood that any housing proposals which formed part of the revised bids would most likely be for private sale only, as a means of making the overall project financially viable from the developer’s perspective, and he commented that the extent of affordable housing as part of other developments in and around the Town Centre may balance that aspect.

The Cabinet Member for Regeneration referred to the opportunity costs from a financial perspective of the new proposals and commented on the key decisions that needed to be taken by NELFT to enable the Care City project to proceed.  In that regard, the Cabinet Member for Adult Social Care and Health confirmed NELFT’s commitment to the project and suggested that the discussions with the bidders could run parallel with the progression of matters through NELFT’s governance structures with a view to a report, giving a more informed position on both aspects, being presented to the Cabinet on 21 October 2014.

Cabinet resolved:

(i)  To agree to ask the three bidders to submit a revised bid on an amended brief which provides space for Care City, as set out in paragraph 6.7 of the report;

(ii)  To authorise the Chief Executive, in consultation with the Head of Legal and Democratic Services and the Chief Finance Officer, to negotiate the sale terms and complete the necessary legal agreements associated with the Care City lease;

(iii)  To agree to enter a Memorandum of Understanding with the winning bidder to leaseback the Care City space to the Council, on the terms set out in the report;

(iv)  To agree to enter into a Memorandum of Understanding with the North East London Foundation Trust (NELFT) offering shell and core space within the development on terms set out in the report, subject to NELFT having an acceptable business plan outlining the capital and revenue funding to establish and run Care City; and

(v)  To note that a further report will be presented to Cabinet on 21 October 2014, which shall include details of the revised bids for the site and an update on the NELFT position.

(Prior to consideration of the matter, Councillor Worby left the meeting in view of her pecuniary interest as an employee of East Thames Group and took no part on the discussions.)

Further to Minutes 123 (viii) and 128 (30 June 2014), the Cabinet Member for Regeneration presented a report on proposals for the financing of the Gascoigne Estate (East) Phase 1 and Abbey Road Phase 2 projects via a Special Purpose Vehicle(s) which would develop, own and be responsible for procuring the management of the new units.

The Cabinet Member referred to the delivery and funding options and the financial modelling which supported those options and advised that the European Investment Bank (EIB) option offered the most economically advantageous solution, acknowledging that alternative funding via the Public Works Loan Board (PWLB) was necessary for the development of private sale properties.  In response to a question regarding the financial modelling, the Chief Finance Officer clarified issues relating to the net present value calculations and confirmed that a range of prudent assumptions had been made which underpinned the detailed modelling.  To that end, the preferred model would realise long-term benefits for the General Fund.

The Cabinet Member for Regeneration commented that one of the other key advantages of funding the projects via the General Fund, rather than the Housing Revenue Account (HRA), was that it would free up funding for Decent Homes and other projects to be funded via the HRA to maintain the current Council housing stock.  A further point clarified during the discussions related to the Council’s current powers to restrict on-letting at a rental profit by Buy-to-Let investors and the Cabinet Member confirmed that appropriate notice would need to be given to prospective purchasers to make them aware of the fact.

Cabinet resolved:

(i)  To agree to borrow £66m from the European Investment Bank within the General Fund to finance the development and ownership of the Shared Ownership and Affordable Rent tenures in the Gascoigne Estate (East) Phase 1 re-development project;

(ii)  To agree to borrow £4.5m from the PWLB to fund 50% of 51 private for sale units to be developed and sold jointly by the Council and East Thames Group via a limited company;

(iii)  To agree that £23m be borrowed from the EIB within the General Fund to finance the development and ownership of the Affordable Rent tenures in the Abbey Road Phase 2 development project;

(iv)  To agree the reallocation of £2m from the Budget Support Reserve to create an EIB Development Period Reserve to meet the costs of interest payment during the development period to enable taking the borrowing at the earliest opportunity and at the lowest rate;

(v)  To agree to develop and own Abbey Road Phase 2 within the Special Purpose Vehicle to be established for the redevelopment of Gascoigne Phase 1, pursuant to Minute 123 (viii) of the Cabinet on 30 June 2014;

(vi)  To delegate authority to the Chief Executive, in consultation with the Head of Legal and Democratic Services,  ...  view the full minutes text for item 16.

The Cabinet Member for Central Services advised that he had withdrawn the report pending further discussions on the future structure of Elevate East London.  The Cabinet Member undertook to keep Cabinet colleagues updated on progress while a revised report to the next meeting was finalised.