Agenda and minutes

The Chief Executive introduced the summary report on the Council’s Corporate Plan 2008?11 and the Revenue Budget 2008?09 and Medium Term Financial Strategy 2008?09 to 2010?11.  He outlined the Council’s vision and how resources would be directed towards achieving and meeting residents’ aspirations.  Accountability would be at the forefront in delivering these aspirations.  He identified the key elements of the Council’s medium term planning process, and the step change for the Council in presenting the Corporate Plan and the Budget together and thanked officers and Members for their contributions and achievements in the area.

The Corporate Director of Strategy and Business Support introduced the Council’s Corporate Plan for 2008?11 setting out the Council’s vision ‘To be recognised as one of the best London Councils by 2012, in a borough that was cosmopolitan, confident and cohesive’. The vision was supported by new corporate priorities for the next three years. The Corporate Plan had been developed as part of the integrated planning and budgeting framework and, more importantly, would direct resources to priorities.

The vision, supported by specific aspirations, would be delivered with the commitment of the Council’s staff and partners.  Within the aspirations, the Council had adopted corporate priorities, which included a number of flagship actions demonstrating what the corporate priorities meant in practice. 

The Corporate Director explained that, in addition to the Corporate Plan, the Council had a detailed Corporate Improvement Plan and each Directorate had a Service Improvement Plan ‘sitting’ below the Corporate Plan. Both of these translated into action through individual staff objectives. These Plans were used to determine priorities and monitor progress throughout the year and which reported to Cabinet through the strategic performance reports.

The Portfolio Holder for Strategy and Business Support also outlined the Council’s vision and the importance of the coming together of the Corporate Plan and the Budget, which was key to directing resources to priorities. This integrated process was a positive move from the previously disjointed approach.

The Portfolio Holder outlined the flagship actions, which were important to the people of Harrow and explained how these would be measured. He identified flagship actions that would make a real difference to the people of Harrow. All flagship action were measurable and would ensure accountability.

Having agreed that the commitments the Corporate Plan 2008-2011 proposed for the Council were compatible with Harrow’s visions, priorities and strategy, it was    

Resolved to RECOMMEND:

That the Corporate Plan 2008?11 be adopted.

Reason for Recommendation:  To outline what the Council was going to achieve in relation to the Administration’s corporate priorities.

(See also Minute 355)

The Corporate Director of Finance introduced the report, which set out the proposed revenue budget for 2008?09 and the medium term financial strategy (MTFS) for 2008?09 to 2010?11.  She referred to the emergency measures that had been put in place in 2005/06, the savings plan in August 2006, the three budget rounds for 2006-07, 2007-08 and 2008-09, which had culminated in a major drive to raise financial awareness and improve financial management in the Council.  Having embedded a stringent culture of financial management in the organisation, the budget before Members was a major achievement on part of both Members and officers to put the Council on a stable financial footing.

The Corporate Director reported that the budget included :-

·                     £1.9m of new investment in priority services, £6.1 for unavoidable growth pressures where the biggest single issues were increasing demand for social care, waste management and disposal;

·                     savings of £9.9m and how these had been achieved. Every effort had been made to maximise efficiency savings and minimise its impact on services;

·                     a detailed analysis of the figures, including an analysis of changes between the draft and final budget;

·                     an impact assessment that had been carried out for each savings proposal and which had been shared with all interested parties. Action necessary to ensure that discrimination and disadvantage did not arise from these potential savings would be undertaken;

·                     proposals for investment in Access Harrow;

·                     assumptions that had been made in relation to the Business Transformation Partnership and future efficiency savings;

·                     the grant increase of 2% in 2008-09, 1.75% in 2009-10 and 1.5% in 2010-11, which equated to around £1m a year and did not cover the pressures facing the Council;

·                     an average increase of 2% for fees and charges. There was no increase at all for some major items such as home care and car parking;

·                     the schools’ budget which was funded through the Dedicated Schools Grant and was set by central government with no local involvement. Education continued to be a priority for central government and schools funding would increase by 4.5% next year;

·                     a reserves policy intended to add £1m to reserves and provisions each year until such time as general balances exceed £5m. This prudent policy would contribute to ensuring a robust budget and deal with unexpected situations;

·                     the medium term Housing Revenue Account that allowed for additional investment in the stock to achieve the decent homes standard by 2010;

·                     an average rent increase for 2008-09 is 5.61%.  The planned average service charge increase for 2008-09 is 4.26%;

·                     Members’ allowance scheme;

·                     a Council Tax increase of 2.74%, which was the combined Harrow and GLA precept increase, reflecting the final GLA budget.

The Corporate Director referred to the consultation undertaken with stakeholders. She stated that a balanced budget was being presented to Council and referred to the funding gaps in future years of £5.4m and £6.9m, which were being addressed. The GLA precept was different to the one in the report; the GLA budget having  ...  view the full minutes text for item

In summing up, the Leader of the Council was positive about the production of the Council’s Corporate Plan and the Budget as a single entity for the first time by the Administration. The Corporate Plan had been developed as part of an integrated process with the Council’s Budget.  It ensured that resources supported the priorities.  The combined process was vital to effective service planning and delivery. He recommended this process to other authorities.

The Leader thanked Cabinet Members for driving the process to develop new priorities and flagship actions, which would be monitored through Improvement Boards. The Administration intended to be clear and transparent and held accountable on these flagship actions. Accountability through public question time would also be welcomed. 

He looked forward to a productive and successful year and on achieving the flagship actions, which were considered to be ‘stretch’ targets.

The Corporate Director of Finance introduced the report, which set out the Council’s Treasury Management Strategy for 2008-2009 and the levels at which the Prudential Indicators should be set for the three financial years 2008-2009 to 2010-2011.  She highlighted the key aspects of the report, including the decision to bring back an external portfolio in-house due to poor management and performance.

The Portfolio Holder for Finance and Portfolio Co-ordination referred to the advice received from consultants and the resultant savings achieved in debt management and borrowing. In recommending the report, he stated that the Council would continue to re-evaluate the position particularly in the current volatile financial market.

Resolved to RECOMMEND:

(1) Approval of the Treasury Management Strategy for 2008?2009, as set out in paragraphs 5 to 17 of the report of the Corporate Director of Finance;

(2) approval of the Prudential Indicators for 2008?2009 to 2010?2011, as set out in paragraphs 18 to 39 of the report of the Corporate Director of Finance, be approved.

Reason for Recommendation:  To promote effective financial management and comply with the Local Authorities (Capital Finance and Accounting) (England) Regulations 2003 and relevant guidance.

(See also Minute 366).

A minute of silence was observed in memory of Councillor Dhirajlal Lavingia.

To receive declarations of personal or prejudicial interests arising from business to be transacted at this meeting from:

(a)               all Members of the Committee, Sub Committee, Panel or Forum; and

(b)               all other Members present.

RESOLVED:  To note that the following interests were declared:-

Agenda Item 9(b) – Harrow Council Corporate Plan 2008-2011

The following Members declared personal interests, as set out below, and remained in the room to participate in the discussion and decision relating to this item:-

(i)                   Councillor Paul Osborn stated that he lived in Vaughan Road, within the vicinity of the Travis Perkins site, a flagship action of the administration.  He added that he had not participated in the discussion relating to the flagship action and would therefore vote on this item;

(ii)                 Councillor Susan Hall stated that her interest related to Wealdstone.

Agenda Item 9(c) - Revenue Budget 2008-09 and Medium Term Financial Strategy 2008-09 to 2010-11

1.                   The following Members declared personal interests, as set out below, and remained in the room to participate in the discussion and decision relating to this item:-

(i)                  Councillor Chris Mote stated that his sister worked part-time as a teacher in Harrow;

(ii)                 Councillor Janet Mote stated that her sister-in-law worked part-time as a teacher in Harrow;

(iii)               Councillor Miss Christine Bednell stated that she was a governor of Whitmore High School.  She had not been party to any discussion relating to the proposals at Whitmore School and would not be speaking on the matter that evening.

2.                   The following Member, who was not a Member of Cabinet, declared a personal interest, as set out below, and remained in the room during the discussion and decision relating to this item:-

Councillor Mrs Margaret Davine stated that her mother received meal on wheels and social care from the Council.

Of the Cabinet meeting held on 17 January 2008 to be taken as read and signed as a correct record.

RESOLVED:  That, subject to the following amendment, the minutes of the meeting held on 17 January 2008, be taken as read and signed as a correct record:-

Minute 345(2), delete reference to ‘1,178’ signatures and replace with ‘1,781’.

To consider whether any of the items on the agenda should be considered with the press and public excluded.

RESOLVED:  That all business be considered with the press and public present with the exception of the following items for the reasons set out below:-

To receive any petitions submitted by members of the public or Councillors.

RESOLVED:  To note that no petitions had been received.

To receive any public questions received in accordance with paragraph 16 of the Executive Procedure Rules.

Questions will be asked in the order notice of them was received and there be a time limit of 15 minutes.

RESOLVED:  To note that the following public questions had been received:-

1.

2.

Fifteen minutes will be allowed for Members of the Council to ask a Portfolio Holder a question on any matter in relation to which the Executive has powers or duties.

RESOLVED:  To note the following Councillor Questions had been received:

1.

2.

RESOLVED:  To note the contents of the Forward Plan for the period 1 February – 31 May 2008.

(if any).

RESOLVED:  To note that there were no reports to be considered.

Report of the Corporate Director of Strategy and Business Support

(See Recommendation I and Minute 355).

Report of the Corporate Director of Finance

(See also Recommendation II and Minute 355).

Having recommended the Revenue Budget 2008?09, the model Council Tax resolution, the Housing Revenue Account for 2008?09 and the Members’ Allowance Scheme to Council for approval, it was

RESOLVED:  That (1)  the Medium Term Financial Strategy at Appendix B to the Corporate Director’s report, be approved;

(2)  the new investment in services be noted, and, in relation to Access Harrow, the performance targets set out in Appendix F to the Corporate Director’s report be approved;

(3)  in relation to revenue income optimisation, the following be approved:

(a)                 the project outlined at Appendix I to the Corporate Director’s report

(b)                 the proposed framework at Appendix J to the Corporate Director’s report;

(4)  an average increase in non-statutory fees and charges of 2% from 1 April 2008 be approved;

(5)  in relation to schools, the budget be approved and that it be noted that no changes to the LMS formula were proposed (Appendix K to the Corporate Director’s report refers);

(6)  the reserves policy be noted (Appendix M to the Corporate Director’s report refers);

(7)  the Medium Term Budget Strategy be approved for the Housing Revenue Account at Appendix P to the Corporate Director’s report be approved.

Reason for Decision:  To publish the final budget proposals and set the Council tax and rents for 2008?09.

Report of the Corporate Director of Finance

Cabinet considered the report of the Corporate Director of Finance, which set out the proposed capital programme for 2008?09 to 2010?11. The Corporate Director stated that the Capital Programme:-

·                     represented an investment of some £84m in 2008-09.  It included projects such as the new leisure centre at Byron Park, the new Whitmore school, a range of education modernisation projects and improvements to the Council’s housing stock to achieve decent homes standard by 2010, the development of the Town Centre and further investment in new technology to drive out efficiencies in the future;

·                     included ongoing investments in social care facilities, highways, lighting, transportation and parks;

·                     £10k for 2008/09 for the Prosperity Action Team in each ward (£210k in total) along with a total of £105k for tree planting across the borough;

·                     The capital programme would be funded through a combination of government grants, capital receipts (from the sale of assets) and borrowing.

The Portfolio Holder for Finance and Portfolio Co-ordination recommended the Capital Programme to Cabinet.

RESOLVED:  That the Capital Programme for 2008?09 to 2010?11 be agreed.

Reason for Decision:  To confirm and ensure that the Council had an approved capital programme for 2008?09 to 2010?11.

Report of the Corporate Director of Finance

(See also Recommendation III).

Having recommended the Treasury Management Strategy for 2008?2009 and the Prudential Indicators for 2008?2009 to 2010?2011, and having considered a confidential paper (Appendix 2), it was

RESOLVED:  That the Council’s lending list, as set out at Appendix 2 to the report of the Corporate Director of Finance, be approved.

Reason for Decision:  To promote effective financial management and comply with the Local Authorities (Capital Finance and Accounting) (England) Regulations 2003 and other relevant guidance.

Report of the Corporate Director of Finance

Cabinet considered the report of the Corporate Director of Finance, which set out the Quarter 3 monitoring statement of Council’s revenue and capital budgets 2007?2008.

The Corporate Director of Finance stated that it remained critical to monitor effectively the Council’s revenue and capital budgets and that the position at quarter 3 showed a net forecast overspend of £200,000. The Council was working hard to contain the expenditure and come in on budget. Savings proposals would be actively monitored and reports submitted to the  Improvement Boards.

The Director highlighted the positive aspects in relation to the Capital Programme, the Housing Revenue Account and the work being done in relation to income collection, details of which were set out in her report. She referred to the risk assessments being carried out and how these were updated quarterly to ensure that potential impacts were assessed regularly.

The Portfolio Holder for Finance and Portfolio Co-ordination referred to the cultural change within the organisation that was being encouraged in order to ensure that the budgets were managed effectively.He added that the Council intended to add £1m to reserves and provisions each year until such time as general balances exceeded £5m. This policy would not be altered. Additionally, the administration was confident that, by March 2008, the Council would hold at least £2.3m of reserves. There was an impetus to build on the reserves position in order to release money for growth in future years.

RESOLVED:  That the current revenue and capital monitoring position at the end of Quarter 3 for 2007?2008 be noted.

Reason for Decision:  To monitor effectively the Council’s revenue and capital budgets.

Report of the Director of Business Transformation and Customer Services

The Portfolio Holder for Strategy and Business support introduced the report on the HARP Programme, which covered projects in Housing, Revenues and Benefits and Planning.  He added that the Programme would help transform some of the existing working processes to improve performance. It was also expected to deliver savings of £1.843m over a 10-year period and improve performance at the same time.

RESOLVED:  That the HARP programme be approved to proceed in line with its agreed Business Case.

Reason for Decision:  To enable the programme to formally start development and implementation. To improve performance and deliver savings.

Report of the Interim Corporate Director of Adults and Housing

Prior to the consideration of items 13?15 (Minutes 369-371), the Interim Corporate Director of Adults and Housing provided an overview of the work being carried out in Adults and Housing with a view to improving service provision to clients and to deliver on efficiency savings.  A report setting out a 3?year transformation programme would be submitted to a future meeting of Cabinet.

The Interim Corporate Director commended the reports at items 13­?15 to Cabinet, which had been developed over a period and were examples of prudent and innovative use of finance.

The Divisional Director of Housing introduced the report, which set out proposals for a West London temporary to permanent housing initiative.  It involved the purchase of properties on the open market that would be let initially at market rents and used as temporary housing.  In the long term they would be converted to permanent housing and let at affordable rents.  An accompanying confidential report detailed the tender negotiations and the procurement process with a further recommendation for Cabinet’s agreement.

The Divisional Director explained that the initiative was driven by the requirement from the government to reduce the number of households in temporary accommodation.  She added that two of the participating authorities had received approval from their respective Cabinets.

The Portfolio Holder for Housing commended the report to Cabinet.

RESOLVED:  That (1) it be agreed in principle to award the contract to the Lloyds Bank consortium to procure, manage and maintain 1400 units of temporary to permanent housing across West London, of which 100 would be under a leasing arrangement with Harrow Council;

(2)  the draft Heads of Terms for the contract, as set out in paragraph 3.6 of the Interim Corporate Director’s report, be noted and it be further noted that the legal documentation would be finalised in conjunction with other participating boroughs and reported to Cabinet for final approval;

(3)  the procurement process followed, which had resulted in resolution 1 above, be noted.

Reason for Decision:  To increase the supply of permanent affordable housing, using the existing housing stock in accordance with national, regional and local housing strategies.

Report of the Interim Corporate Director of Adults and Housing

The Divisional Director of Housing introduced the report, which set out proposals to improve and regenerate the Mill Farm estate, Pinner, following an options appraisal carried out with residents from May – September 2007. She added that authority was being sought to progress to comprehensive redevelopment proposals, details of which would be submitted to Cabinet for final approval in nine months’ time.

The Portfolio Holder for Housing commended the report to Cabinet.

RESOLVED:  That (1) officers be authorised to progress a comprehensive redevelopment proposal for the Mill Farm estate along the principles set out in Option 3 by formally inviting Registered Social Landlords to submit proposals on a competitive basis for consideration and assessment by Members, officers and local residents;

(2)  a resident steering group be set up to work with the Council in taking this project forward and that reports on progress be submitted to the Tenants’ and Leaseholders’ Consultative Forum.

Reason for Decision:  To enable a comprehensive improvement of the Mill Farm estate to meet and exceed Decent Home Standards and provide a better mix of housing to meet existing and future residents needs.

(See also paragraphs 1 and 2 in the preamble to Minute 369)

Report of the Interim Corporate Director of Adults and Housing

The Portfolio Holder for Adult Services introduced the report, which informed Members on the outcome of the Stage 2 approval process of the LIFT/PFI Project for the development of three Neighbourhood Resource Centres (NRCs) at Byron Park (formerly Christchurch Avenue), Kenmore and Vaughan (Projects) for people with learning disabilities.  The report sought approval to conclude the final agreements with the LIFT Company (LIFTCo).

The Portfolio Holder added that the main purpose of this initiative was to ensure a holistic approach to service provision for people with learning difficulties.  It would help support their quality of life, provide flexible day and outreach support, and introduce a positive welcoming environment for users.  The completion dates had been set for June 2009.  This was an exciting and a news worthy initiative.

The Interim Corporate Director of Adults and Housing referred to the desire of his Directorate to play a mainstream role within the Council and provide an integrated service for the benefit of clients.  The report of the recent Learning Disability Inspection was likely to urge further modernisation of the service.  This project was crucial to this aim. 

An officer stated that flexibility would be retained within the buildings.

RESOLVED:  That (1) the Council to enter into the Land Retained Agreement, the Subordinated Credit Agreement, the Independent Tester Contract, the Lenders’ Direct Agreement and all other documents (‘Project Documents’) to finalise and complete the Projects;

(2)  the finalisation and completion of the Project Documents by the Council was necessary and expedient for the purpose of and in connection with the exercise of the Council’s functions;

(3)  to facilitate the closing of the Projects, the Interim Director of Adults and Housing (‘the Authorised Officer’) was hereby authorised by the Council to do all acts or things considered by him to be necessary or desirable in connection with or arising out of the Projects including, without limitation, the following:

(a)                 to negotiate and, finalise the Project Documents on such terms as he (in his absolute discretion) sees fit, and such decision will be binding on Harrow Council;

(b)                 to negotiate, approve any other agreements, deeds, notices, forms, letters or other documents to be entered into pursuant to the Project Documents which he considers necessary or desirable in relation to the Projects, in each case in such manner as he considers necessary or desirable in relation to the Projects;

(c)                 to issue and sign certificates under the Local Government Contracts Act 1997;

(d)                 complete all the Project Documents;

(4)  that all the Project Documents considered by the Director of Legal and Governance Services as requiring the seal of the Council be sealed in accordance with the Constitution and such decision be binding on the Council;

(5)  that the Authorised Officer be and is hereby authorised to execute (whether as a deed or otherwise) such of the Project Documents as the Director of Legal and Governance Services may direct (in his absolute discretion) and such decision be binding on the Council;

(6) the grant of a  ...  view the full minutes text for item 371.