Agenda and minutes

It was noted that Mrs M Carter, the co-opted Panel member who had been the Chair of the Tenant’s and Leaseholder’s Federation had stepped down from the Federation and had been replaced by Mr S Hyde, who had sent his apologies to this meeting.

(Assistant to the Chief Executive)  To report the appointment of any substitute members for the meeting.

There were no substitute members at the meeting.

To agree the notes of the last meeting of the Panel held on 19 July 2011.

RESOLVED:

That the notes of the last meeting of the Panel held on 19 July 2011 be agreed.

(Assistant to the Chief Executive). To declare interests in any items on the agenda.

In considering whether to declare a personal or a prejudicial interest under the Code of Conduct, Overview & Scrutiny members are asked pay particular attention to paragraph 11 of the Code in addition to the more familiar requirements.

This requires the declaration of a personal and prejudicial interest in any matter before an OS Committee which relates to a decision of or action by another Committee or Sub Committee of the Council, a Joint Committee or Joint Sub Committee in which the Council is involved and of which the Councillor is also a member.

Paragraph 11 does not refer to Cabinet decisions or attendance at an OS meeting purely for the purpose of answering questions or providing information on such a matter.

Pursuant to the Council’s Code of Member Conduct, Councillor D Stallan declared a personal interest in the following item of the agenda by virtue of having been the Housing Portfolio Holder at the time when the decision involved was made. The Councillor had determined that his interest was not prejudicial and would stay in the meeting for the consideration of the item concerned:

• Item 8 Fire Safety in Common Parts of Flat Blocks

(Chairman/Lead Officer) The Overview and Scrutiny Committee has agreed the Terms of Reference of this Panel and associated Work Programme. This is attached. The Panel are asked at each meeting to review both documents.

(1)        The Panel’s Terms of Reference were noted.

(2)               The following was noted from the Work Programme:

(a)        Item 12 HRA 30-Year Financial Plan in Preparation for HRA Self-Financing

A special meeting was being convened on 28 November 2011.

(b)        Item 27 Outcome report on the implementation of new licences for park home sites

It was advised that the postholder dealing with the new licences had resigned and that the Environment Health Officer who had been assisting him was also leaving. Officers were meeting with resident’s representatives and site owners of Park Homes in November to discuss some issues that had arisen and it was intended to report to the meeting of the Scrutiny Panel in January 2012.

(Director of Housing) To consider the attached report.

The Panel received a report from the Director of Housing regarding the proposed Council Housebuilding Programme.

The Cabinet had agreed in principle that the Council undertake a modest Council Housebuilding Programme, and had asked this Panel to consider the detailed issues of implementing the programme and make recommendations to the Cabinet.

The last Council property was built in June 1985. Since 1977, the Council had sold around 6,160 properties, predominantly through the Right to Buy. Currently, the Council owned and managed around 6,500 properties. Since the 1980s, councils had been discouraged by successive governments from building new social housing themselves, and encouraged to act as “enablers,” by facilitating housing associations to build new social housing. However, the polices of the previous and current Governments had changed and, mainly as a result of the collapse of the property marker in 2008, local authorities had more recently been encouraged to build once again. In August 2009, the previous Government introduced new regulations which removed major financial disincentives.

The Council had a number of difficult-to-let garage sites and other sites that could be developed to provide an estimated 120 homes over a 6 year period. The proposed approach was to appoint an existing housing association, through a competitive tender process, acting as a Development Agent, and providing all the required development and project management services, rather than the Council employing its own professional team of staff. Development appraisals for each of the identified sites would assess whether or not they had development potential, the costs and anticipated income.

It was proposed that rents charged for the new developments would be at the new “Affordable Rent” levels up to 80% of market rent levels.

Grant funding from the Homes and Communities Agency (HCA) may be available in the future, but it was suggested that any shortfalls in capital funding for developments should be met through the sale of some development sites on the open market, without any financial support from the General Fund.

It was proposed that the Cabinet would adopt a Development Strategy and approve the budgetary requirement for the Housing Capital Programme. It was currently estimated that capital funding of around £2.5 million per annum would be required for the construction of 20 properties each year, and that a programme of 120 properties over 6 years would cost around 16 million.

The Chairman explained that he would be unable to present the Scrutiny Panel’s report to the Cabinet on the 5 December 2011 himself, due to an important work commitment. However, after consulting the Vice Chairman of the Scrutiny Panel, he had asked Councillor D Stallan to present the report on the Panel’s behalf and asked for the Panel’s endorsement of this proposal which was given.

RECOMMENDED:

That the following recommendations are made to the Cabinet:

(1)        That a housing association be appointed to provide a Housebuilding Development Agency Service for the Council, including all development and project management services, and the provision of all professional building services including architectural, employer’s agency,  ...  view the full minutes text for item 20.

(Director of Housing) To consider the attached report.

The Panel received a report from the Assistant Director of Housing regarding Solar PV to Council Housing.

The Climate Change Act 2008 had been established as a long term national framework tackling Climate Change, it aimed to reduce carbon emissions by at least 34% in 2020 and 80% in 2050. Local authorities and housing associations were seen as having a vital role in reducing carbon dioxide emissions. The reduction of carbon emissions was inextricably linked to reductions in energy consumption and consequently in individual energy costs.

According to USwitch energy prices were likely to increase 4-fold by 2020. one way of tackling the rise in energy costs was to generate free use electricity, using renewable energy such as harnessing energy generated by the sun through Solar Photovoltaic (Solar PV) panels fixed to roofs. This was relatively new technology and cost was quite high. Although over time costs were expected to reduce.

To encourage the use of renewable technology, the Government had introduced a grant linked directly to the amount of electricity generated. The grant was payable through a scheme known as the “Feed In Tariff.” This was available to anyone that owned a renewable electricity system and was payable for energy kilowatt hour that was generated. Whilst the FIT would reduce over time, the rate was applicable at the time the system was installed and registered, and that rate was locked for a 25 year period but then index-linked to RPI. The intention was for these tariffs to cover the initial capital cost of installation and according to the Government, earn a return to the system owner up to 8% p.a. In practice, the Council should earn back the initial capital cost by at least two to three times over the duration of the 25 year tariff if the Council was to fund the full cost of the installation itself.

Procurement Options

The FIT was only available to the owner of the Solar PV installation, which did not necessarily have to be the building owner. The Council paid for, and therefore owned, the installation outright. A third party installed the systems onto the roofs of Council properties and rents the roof space, meaning the Council did not have to pay for the installation. A shared arrangement whereby the Council and a third party jointly funded and jointly owned the systems.

Initial Feasibility Study

(a)        Of the 6,500 Council dwellings, around 5,250 properties could benefit from Solar PV. Around 19% of all Council properties would not benefit from some free electricity.

(b)        If all 5,250 properties were to have Solar PV, the capital outlay needed to install the systems would be in the region of £50 million.

(c)        If all 5,250 properties were to have Solar PV, collectively over 10,500 MW hr of electricity could be generated, which over a 25 year period could qualify for £155 million in FIT.

(d)        In addition to the FIT, £26 million worth of free electricity could be generated.

(e)        If the Council was to  ...  view the full minutes text for item 21.

(Director of Housing) To consider the attached report.

The Panel received a report from the Assistant Director of Housing (Property) regarding Fire Safety in Common Parts of Flat Blocks.

Following consultation with the Housing Scrutiny Standing Panel, in January 2011, the Housing Portfolio Holder agreed a policy on fire safety in flat blocks. Personal belongings, fitted or loose long carpets, mats and other items stored in common parts of flats were prohibited and removed with the exception of certain concessions agreed with the Workplace Fire Safety Officer of the Essex Fire and Rescue Service.

Letters were sent to all tenants and leaseholders in the blocks advising them of these changes. However a small number of residents requested that a further review should be undertaken as they felt the policy was too risk adverse and prevented the common parts of flat blocks becoming more homely. In response in January 2011 the Housing Portfolio Holder temporarily suspended the policy relating to carpets in the common parts only, until a further feasibility was carried out.

The former Portfolio Holder wrote to the Housing Minister in March 2011 expressing concerns about the lack of clarity and guidance for local authorities when assessing fire safety in flat blocks. A response from the Parliamentary Under Secretary of State was received in July 2011 which made reference to the Local Government Improvement and Development (LGID). It was a clearer document helping local authorities inform their risk assessments.

Fire Safety Guidance

The fire safety guidance issued by the Local Government Group advised that few deaths occurred as a result of fire in a neighbour’s flat or in common parts, most deaths occurred in the flat where the fire started. The most dangerous fires were those within the common parts as these were the areas which facilitated escape. There should be a clear policy on whether common parts must remain completely sterile or subjected to managed use.

Officers advised that they had received guidance from Essex Fire and Rescue which suggested that the previously agreed policy should be implemented. However Councillor J Knapman commented that he had received a letter from Essex fire and Rescue service that suggested that carpets could be allowed within communal areas of blocks for flats if managed properly. Councillor J Knapman offered to provide a copy of the letter to the Housing Portfolio Holder for her to consider.

Under the circumstances, it was agreed that this part of the report should be deferred for further consideration at a future meeting of the Panel, to enable officers and the Housing Portfolio Holder to consider the contents of the letter and provide further guidance to the Panel.

Feasibility Study – Smoke Alarms

In line with a request from the decision of the previous Housing Portfolio Holder in January 2011, a feasibility study had been carried out into the cost of providing mains wired smoke detectors in individual flats, maisonettes and common parts of flat blocks. The feasibility study revealed the following options and costs:

Option 1 – Smoke alarms in individual flats and maisonettes  ...  view the full minutes text for item 22.

(Director of Housing) To consider the attached report.

The Panel received a report from the Director of Housing regarding the Housing Revenue Account Business Plan Key Action Plan (2011/12).

In March 2011, the Council’s latest Housing Revenue Account (HRA) Business Plan (2011/12) was produced, incorporating the Repairs and Maintenance Business Plan. This set out the Council’s objectives, strategies and plans as landlord in relation to the management and maintenance of its own housing stock.

An important section of the HRA Business Plan was the Key Action Plan. This set out the proposed actions the Council would be taking over the next year. It was good practice that the progress made with the stated actions was monitored, one of the Panel’s Terms of Reference was to review progress during the year.

RESOLVED:

That the Housing Revenue Account Business Plan Key Action Plan (2011/12) – Progress Report be noted.

In April 2012, the Government will be introducing a major, long term change in the way that local authority Housing Revenue Accounts (HRAs) are funded. This will involve a change away from the current “HRA Subsidy System” to a new “HRA Self Financing System,” under which this Council will need to make a one-off payment to the Government in excess of £180 million (instead of making annual payments to the Government – currently in excess of £11 million per annum), for which we will need to borrow a substantial proportion.

There are two key aspects to this process from the Council’s point of view. The Council needs a well-thought out robust 30 Year Financial Plan for the HRA, setting out all expected housing income and expenditure to meet the Council’s housing objectives, and the right treasury management solution for borrowing the money in order to meet the cost of the payment to the CLG, and ensure that we receive the best terms.

Following informal consideration by Cabinet members and in view of the introduction and importance of HRA Self Financing, the Chairmen of the Housing and Finance and Performance Management Scrutiny Panels have agreed that a Joint Meeting of the two Scrutiny Panels should be held with officers and the Council’s HRA Business Planning Consultants CIHConsult – chaired by Councillor Stephen Murray, to discuss CIHConsult’s draft report before the Indicative HRA Financial Plan is adopted by the Cabinet on the 5 December 2011. Attached is a Proposed Timetable, which sets out the approach to the formulation and adoption of the HRA Financial Plan, together with dates.

The Joint Meeting of the Housing and Finance Scrutiny Panels will be held at 7p.m. on Monday 28 November 2011 in the Council Chamber, and all members of the Council are invited to attend the meeting to discuss this important issue.

In April 2012 the Government would be introducing a major, long term change in the way that local authority Housing Revenue Accounts (HRAs) were funded. This would involve a change away from the current “HRA Subsidy System” to a new “HRA Self Financing System,” under which the Council would need to make a one-off payment to the Government in excess of £180 million, instead of making annual payments to the Government, currently in excess of £11 million per annum. This would require the Council borrowing a substantial proportion.

The Council needed a well thought out robust 30 Year Financial Plan for the HRA, setting out all expected housing income and expenditure to meet the Council’s housing objectives, and the right treasury management solution for borrowing the money in order to meet the cost of the payment to the CLG, and ensure that the Council receive the best terms.

Following informal consideration by the Cabinet and in view of the introduction and importance of HRA Self Financing, the Chairmen of the Housing and Finance and Performance Management Scrutiny Panels had agreed that a Joint Meeting of the two Scrutiny Panels should be held with officers and the Council’s HRA Business Planning Consultants CIHConsult – chaired by Councillor S Murray - to discuss CIHConsult’s draft report before the Indicative HRA Financial Plan was adopted by the Cabinet on the 5 December 2011. The Joint Meeting of the Housing and Finance Scrutiny Panels would be held at 7.00p.m. on 28 November 2011 in the Council Chamber, and all members of the Council were invited to attend the meeting.

To consider which reports are ready to be submitted to the Overview and Scrutiny Committee at its next meeting.

There were no reports being submitted to the next Overview and Scrutiny Committee by this Panel.

The next programmed meeting of the Panel will be on Tuesday 31 January 2012 at 5.30p.m. in Committee Room 1, and thereafter on Tuesday 13 March 2012 at 5.30p.m. in Committee Room 1.

The next scheduled meeting of the Panel was 31 January 2012 at 5.30p.m.