Agenda and minutes
PDF 116 KBVenue: Ground Floor Meeting Room G02C - 160 Tooley Street, London SE1 2QH
Contact: Paula Thornton Phone: 020 7525 4395 Email: paula.thornton@southwark.gov.uk
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Apologies
To receive any apologies for absence. Minutes: Apologies for absence were received from Councillors Jasmine Ali and Stephanie Cryan. |
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Notification of any items of Business which the Chair Deems Urgent
In special circumstances, an item of business may be added to an agenda within five clear working days of the meeting. Minutes: The chair gave notice of the following late items:
Item 7: Deputation requests Item 8: Policy and Resources Strategy 2019-20 Item 23: Capital Letters: Procurement of Accommodation for Homeless Households Items 24 and 25: Commercial Property Portfolio: Addition of Income Generating Asset.
Reasons for urgency and lateness will be specified in the relevant minutes. |
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Notice of Intention to conduct business in a closed meeting, and any representations received
To note the items specified which will be considered in a closed meeting. Supporting documents: Minutes: No representations were received in respect of the item listed as closed business for the meeting. |
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Disclosure of Interests and Dispensations
Members to declare any interests and dispensations in respect of any item of business to be considered at this meeting. Minutes: None were declared. |
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Public Question Time (15 Minutes)
To receive any questions from members of the public which have been submitted in advance of the meeting in accordance with the cabinet procedure rules. The deadline for the receipt of public questions is midnight Wednesday 5 December 2018. Minutes: Public Question from Sue Plain
What arrangements are in place with participating boroughs to ensure:
· Equitable and sustained financing proportionate to service access? · Indemnity against future redundancies?
Will the council give further detail about consultation said to have taken place in paragraph 27e?
Response
An inter-agency partnership agreement will be signed by London Borough of Southwark and each participating borough. This will set out the agreed financial contributions and the commitment to ensure these remain sustainable for service provision over time.
The inter-agency partnership agreement will set out the arrangements in the event of any future redundancies to ensure that the risks of redundancy are minimised as far as possible, and that the risk is shared across participating authorities.
The programme manager for Adopt London Regional Adoption Agencies (RAAs), along with Directors of Children’s Services (DCS) representatives have met, and are continuing to meet with representatives from voluntary adoption agencies. The programme manager for Adopt London RAAs, along with representatives of the Heads of HR met with the Greater London Provincial Council on 18 October 2018. Trade Unions undertook to identify a representative for each RAA and engagement will continue regionally, sub-regionally and locally.
(The public questioner was unable to attend the cabinet meeting and it was confirmed that this response would be sent to her). |
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Minutes
To approve as a correct record the minutes of the open section of the meeting held on 30 October 2018. Supporting documents: Minutes: RESOLVED:
That the minutes of the meeting held on 30 October 2018 be approved as a correct record and signed by the chair. |
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Deputation Requests
To consider any deputation requests. Supporting documents: Minutes: The deputation request received on behalf of the Canada Estate tenants and residents was not heard. It was agreed that the chair of the Canada Estate tenants and residents association would meet separately with the leader of the council in respect of the issues that were raised as part of this deputation submission. |
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Policy and Resources Strategy 2019-20
Supporting documents: Minutes: This report had not been circulated five clear days in advance of the meeting. The chair agreed to accept the report as urgent as the council were committed to publishing budget proposals at the earliest possible opportunity to ensure they were available to the public for comments and questions. Presenting the report to cabinet on 12 December 2018 gives the opportunity for debate prior to presentation of budget figures to cabinet on 22 January 2019. Also under the council’s constitution, there is a requirement for the overview and scrutiny committee to review and challenge budget proposals and this is due to take place on 28 January 2019.
RESOLVED:
1. That it be noted that the government’s budget statement was presented by the Chancellor of the Exchequer on 29 October 2018, key headlines being set out in the report (paragraphs 26 – 27 of the report).
2. That it be noted that the provisional local government finance settlement, due to be announced on 6 December 2018, has been delayed until after the Brexit vote on Tuesday 11 December (paragraphs 28 – 29 of the report).
3. That it be noted, as reported to cabinet in September 2018 and recognising continued uncertainty for local government funding, that the intention remains for the council to prepare a balanced one-year 2019-20 budget for approval by cabinet in advance of council assembly in February 2019 (paragraph 19 of the report).
4. That the current budget options proposed to help achieve a balanced budget 2019-20 (Appendices C to F of the report) be noted.
5. That the budget proposals for 2019-20 contained within the report be noted, which include:
· Estimated general grant resources likely to be available arising from the provisional settlement (Appendix A of the report), a reduction of £8.647m from 2018-19 · Improved Better Care Fund resources totalling £15.752m, an increase of £3.168m from 2018-19 · Additional one-off social care grants of circa £4.254m announced in the Autumn 2018 budget · Retained business rates growth of £25.0m (paragraph 41 to 44), an increase of £3.250m over 2018-19 arising from proceeds generated by continued regeneration in the borough; plus an estimated surplus brought forward of £1.158m · Estimated council tax revenue of £107.322m, including £2.476m additional income arising from growth in the tax base and £0.4m from increased premium on long-term empty properties; an estimated collection fund surplus of £3.500m · Planned contingency to be maintained at £4m to mitigate underlying budget risks. (Paragraph 74 of the report).
6. That it be noted that the following savings, commitments and pay and price pressures have been proposed to help ensure the delivery of a balanced budget in 2019-20 (Appendices C – F of the report):
· Efficiency savings of £14.005m · Income generation of £3.050m · Savings impacting on services of £0.900m · Commitments and growth of £14.236m · Pay Award and contractual inflation of £8.450m · Debt financing costs of £3.809m.
7. That it be noted that, in order to ensure that the base budget is on a secure financial footing a ... view the full minutes text for item 8. |
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The Council Tax Base 2019-20
To approve the schedule of discounts and exemptions and agree the council tax base for 2019-20. Supporting documents: Minutes: RESOLVED:
1. That the schedule of discounts and exemptions in paragraph 13 of the report, which remains unchanged, with an exception for long-term empty dwellings effective from 1 April 2019-20 onwards be approved.
2. That it be noted that the council tax reduction scheme (CTRS) for both working and pensionable age claimants shall remain unchanged in 2019-20.
3. That the council tax base for 2019-20 be set at 103,662 (100,884 in 2018-19) band D equivalent dwellings.
4. That it be agreed that the assumed council tax collection level should remain at 97.20% for 2019-20 (97.20% in 2018-19) noting the risks outlined in paragraphs 26, 27 and 28 of the report.
5. That it be noted that the council tax base for 2019-20 for St. Mary Newington parish is set at 12,129 (11,936 in 2018-19) band D equivalent dwellings.
6. That it be noted that the council tax base for 2019-20 for St. Saviour’s parish is set at 1,259 (1,267 in 2018-19) band D equivalent dwellings.
7. That it be noted that:
· any minor and consequential amendments to the CTRS written policy are to remain delegated to the strategic director of finance and governance, in consultation with the monitoring officer.
· no changes were made to the council tax reduction scheme under the council’s section 151 officer’s (strategic director of finance and governance) authority during 2018-19 for 2019-20.
8. That it be noted that, as for 2018-19, the national non-domestic rates (NNDR1) return for 2019-20 showing the national non-domestic rates base will be signed off by the strategic director of finance and governance.
9. That the proposed extension of the current council tax section 13a policy covering discretionary relief* (refer to paragraph 18 of the report) be noted:
· to continue the council tax discretionary relief (0% to 100%) for young people leaving Southwark council's care aged 18 to 24 years, for the period 1 April 2019 to 31 March 2020 (a second year for this scheme).
· to continue foster carers discretionary relief (0% to 100%), for the period 1 April 2019 to 31 March 2020.
(*Southwark Council Tax Section 13a (1)(c) policy for 2019-20) |
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Housing Revenue Account - Indicative Rent Setting and Budget Report 2019-20
To note issues associated with the housing revenue account.
To instruct officers to provide a final report to cabinet in January 2019 on rent setting after consultation with residents. Supporting documents: Minutes: RESOLVED:
1. That a rent decrease of 1.0% for all directly and tenant managed (TMO) housing stock within the housing revenue account (HRA) (including estate voids, sheltered and hostels), with effect from 1 April 2019 be noted on a provisional basis. This is in accordance with the provisions of the Welfare Reform and Work Act 2016.
2. That with regard to other HRA-wide charges, the changes to tenant service charges, comprising estate cleaning, grounds maintenance, communal lighting and door entry maintenance as set out in paragraphs 30 – 31 of the report with effect from 1 April 2019 be noted on a provisional basis.
3. That increases in charges for garages and other non-residential facilities as set out in paragraphs 32 – 33 of the report with effect from 1 April 2019 be noted on a provisional basis.
4. That no increase to district heating and hot water charges as set out in paragraph 34 of the report with effect from 1 April 2019 be noted on a provisional basis.
5. That a commitment to ensure savings proposals are primarily based on efficiencies be reaffirmed, and that where staffing reductions form part of any savings proposal, that due consultation and process be followed with trade unions.
6. That officers be instructed to provide a final report on rent setting and the housing revenue account (HRA) budget for 2019-20 after due consultation processes with residents have been followed for consideration at the cabinet meeting on 22 January 2019. |
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Southwark Schools Standards Report 2017-18
To note the ‘Best start in life - Southwark school standards report 2017-18’. Supporting documents: Minutes: The head teachers of the following schools also presented their comments, feedback and answered questions for cabinet:Simon Eccles, SPAR (special school), Simon Assig, Mayflower Federation (primary school) and Felicity Corcoran, St. Michael’s (secondary school).
RESOLVED:
That the ‘Best start in life - Southwark school standards report 2017-18’ attached at Appendix 1 of the report be noted. |
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Adopt London South, Regional Adoption Agency
To agree to enter into regional adoption arrangements as part of Adopt London South, with ten participating authorities. Supporting documents: Minutes: RESOLVED:
1. That Southwark enter into regional adoption arrangements as part of Adopt London South with ten participating authorities identified in the report.
2. That it be agreed that Southwark is the host for Adopt London South. This means Southwark hosts staff and resources from up to nine other boroughs in South London to deliver a regional adoption agency for South and South West London
3. That the authority to make more detailed decisions around the implementation of this proposal including signing off the inter-authority agreement between Southwark and the other boroughs involved in Adopt London South and the finalisation of governance arrangements be delegated to the strategic director for children’s and adults’ services.
4. That it be noted that the governance arrangements will operate by the other local authorities in Adopt South London delegating adoption functions to the council and that the leader of the council will need to formally accept the delegation of the relevant functions once these have been delegated by the other councils. |
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Gateway 1 - Procurement Strategy Approval: Facilities Management (FM) Contract for the Council's Operational Estate
To approve the procurement strategy. Supporting documents: Minutes: RESOLVED:
1. That the procurement strategy outlined in the report, and as detailed in paragraphs 2 – 5 below be approved.
2. That it be approved to bring the CFM (corporate facilities management) services outlined in paragraph 36 of the report in-house on expiry of the current facilities management (FM) contracts in June 2020, with an estimated annual cost of £1m.
3. That a further competition be undertaken via the Crown Commercial Service (CCS) framework for Hard FM Services (hard FM), which includes small works and capital investment projects, Ref: RM3830 Facilities Management Marketplace (Lot 1b – Total Contract Value £7m - £50m) at an estimated annual cost of £3.6m for hard FM and up to £3.5m for the small works and capital investment projects, for a period of five years with the potential to extend up to a further two years (in increments at the council’s discretion), making an estimated maximum total contract value of £49.8m, with an estimated start date of June 2020.
4. That the award of small works and capital investment projects be directed in line with the council’s contract standing orders, to exempt CFM from obtaining five tenders from the works approved list in respect of project related works procured through this contract in accordance with the methodology specified below;
· all project related works up to £500k will be procured through this contract where the contractor is adequately performing their main contract work, subject to CFM undertaking a pre-tender estimate and the contractor demonstrating value for money against this benchmark · for project related works up to £500k, where the contractor is not a specialist in the area, is not adequately performing the main contract or cannot prove value for money, then tendered from the approved list an open market exercise.
5. That a separate further competition be undertaken, to appoint a second supplier for Soft FM Services (soft FM) Ref: RM3830 Facilities Management Marketplace (Lot 1b – Total Contract Value £7m - £50m) at an estimated annual cost of £5.2m for a period of five years with the potential to extend up to a further two years (in increments at the council’s discretion), making an estimated total contract value of £36.2m, with an estimated start date of June 2020.
6. That it be noted that there is no additional cost to use this framework agreement. |
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Establishment of the Positive Futures Fund
To approve the establishment of the Positive Futures Fund that aims to support community organisations to provide inspiring opportunities for young people that divert them away from crime. Supporting documents: Minutes: RESOLVED:
1. That the establishment of the positive futures fund that aims to support community organisations to provide inspiring opportunities for young people that divert them away from crime be approved.
2. That officers be instructed to develop the detailed criteria and funding processes for the scheme with the intention that the implementation of funded projects commences from April 2019.
3. That officers ensure that £500,000 be included in the budget for the positive futures fund. |
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Southwark Great Estates Programme - Paper 1 - Agreeing the Vision and Approach
To agree the vision and approach for the Great Estates Programme including the principal approach to ‘expand and enrich’ our council estates, while restating the terms and circumstances for a redevelopment proposal. Supporting documents: Minutes: RESOLVED:
1. That Southwark’s vision and approach for the Great Estates Programme as set out in Appendix 1 of the report be agreed, including the principal approach to ‘expand and enrich’ our council estates, while restating the terms and circumstances for any redevelopment proposal.
2. That consultation be undertaken with residents to inform the development of the resident-centred estate improvement plans process and the Great Estate guarantee and commitments.
3. That the process be started of drawing up terms of reference and establishing a Great Estates programme advisory group, made up of local residents and key stakeholders who have knowledge of estate management and regeneration.
4. That officers be instructed to produce further cabinet reports in 2019 to feedback the results of the consultation; develop and launch the Great Estates guide detailing case studies and opportunities from across the borough of initiatives that improve the shared living environment of Southwark estates and bring estate communities together; agree the estate improvement plan process and pilot schemes; and a further report detailing the Great Estate guarantee and commitments. |
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Annual Workforce Report
To note the annual workforce report. Supporting documents: Minutes: RESOLVED:
That the workforce report attached as Appendix 1 of the report be noted and that it also be noted this report:
1. Demonstrates that the council continues to reflect the diversity of the borough in the makeup of its workforce and the levels of change that have taken place have not impacted negatively on the diversity of the workforce despite the level of savings that have been made due to reductions in central government funding.
2. Suggests a picture of a productive and well motivated staff with low levels of sickness, low levels of staff complaints and good rates of staff retention.
3. Suggests that the council is an attractive employer given the high numbers of applications that the council receives.
4. Reinforces our intention to refresh our workforce strategy to take account of our new Investors in People Gold status and highlights areas for us to focus our workforce equality plan on, with certain areas benefiting from new commitments and associated targets, for example career development and in-work progression with a particular focus on under-represented groups. |
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Introducing a Gold Standard to the Private Rented Sector
To instruct officers to consult on the adoption of a Gold Standard and pilot an associated award scheme for the private rented sector and agree criteria to be consulted on to meet the Gold Standard. Supporting documents: Minutes: RESOLVED:
1. That officers be instructed to consult on the adoption of a Gold Standard and pilot an associated award scheme for the private rented sector.
2. That the criteria to be consulted on in order for a dwelling to meet the Gold Standard as shown in Appendix 1 of the report be agreed.
3. That the importance of monitoring and managing the scheme be noted and that officers be instructed to work closely with tenants during the period of consultation in setting up and supporting a Southwark Renters Union that will play an important part in doing this. |
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New Depot
To note the preparatory work done to date on providing a new depot for the council’s in house services and to approve in principle the proposal to develop. Supporting documents: Minutes: RESOLVED:
Decisions of the Cabinet
1. That the preparatory work done to date on providing a new depot for the council’s in house services be noted and the proposal to develop this as set out in paragraphs 14, and 16-20 of the report be approved in principle.
2. That the estimated cost and timing of the proposal be noted and the inclusion of this sum in the capital programme as set out in paragraph 24 of the report be approved.
3. That officers be instructed to report back to cabinet for approval of the project once the legal and financial terms have been negotiated and before the planning application is submitted.
Decision of the Leader of the Council
4. That the authority for the approval of the revised business case and a detailed project initiation document setting out the governance, workstreams and timing of this project be delegated to the cabinet member for finance, performance and Brexit, in consultation with the cabinet member for environment, transport management and air quality. |
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Announcement The leader of the council, Councillor Peter John and cabinet thanked Deborah Collins, strategic director for environment and leisure, for her commitment and hard work for the council over the last 12 years, and wished her the best for her future as chief operating officer of Cardiff University. |
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Gateway 1 - Procurement Strategy Approval for Southwark Highways Works Contracts
To approve the procurement strategy for two separate contracts (works contract and services contract). Supporting documents: Minutes: RESOLVED:
That the procurement strategy outlined in the report for two separate contracts be approved:
Works Contract · Southwark Highways Works Contracts in two lots commencing 1 July 2020 for an initial duration of five years and nine months, with an option for the council to extend for up to two further years.
o Lot A – Maintenance (for small scale reactive repairs) at an estimated maximum total cost of £15.9m (1 supplier) o Lot B – Projects (for planned renewal / improvement projects) at an estimated maximum total cost of £55.4m (1 supplier).
Services Contract · Southwark Highways Professional Services Contract consisting of three lots, commencing 1 January 2021 for an initial duration of five years and three months, with an option for the council to extend for up to two further years.
o Lot A - Structures Inspections and Design at an estimated maximum total cost of £7.3m o Lot B - Highway Design and Management at an estimated maximum total cost of £11.6m o Lot C - Drainage and SUDS (Sustainable Drainage System) Design and Management at an estimated maximum total cost of £3.6m. |
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Allocation of Local Community Infrastructure Levy funding
To commit to spending the funds collected to end of financial year 2017-18 as the 25% neighbourhood portion of the Community Infrastructure Levy within each community council area and approve funding to be released and allocated to the priority projects put forward by community councils within the existing council capital programme. Supporting documents: Minutes: RESOLVED:
1. That the commitment to spending the funds collected to end of financial year 2017-18 (as detailed in paragraph 37 of the report) as the 25% neighbourhood portion of the community infrastructure levy within each community council area in which it was collected be agreed and that this funding be committed on the basis of the cabinet decision made in March 2015.
2. That the submission from each community council be noted and that officers be instructed to undertake further consultation with the community councils.
3. That funding be released and allocated to the priority projects put forward by the community councils for projects within the existing council capital programme as listed in Appendix 1 of the report.
4. That officers be instructed to develop projects that are currently on the council plan but not yet included on the capital programme and report to cabinet in April 2019.
5. That it be recognised that the current system of community infrastructure project lists should be improved in order to make it more transparent and that officers be instructed to work with the community councils to develop community investment plans for each area to prioritise the allocation of funding collected 2018-19 and to allocate unspent CIL generated pre-2017-18.
6. That officers report back to cabinet in April 2019 setting out the proposed process for the consultation and implementation of community investment plans. |
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Southwark Regeneration in Partnership Programme - Lot A Sites Appropriation
To confirm that the land is no longer required for those purposes which they are currently held and to approve the appropriation of the land to planning purposes. Supporting documents: Minutes: RESOLVED:
1. That the area of council-owned land edged red on the plans at Appendix 1 of the report and Appendix 2, and known as 169-179 Manor Place, the former Council Office, Stopford Road, SE17 and Kennington Workshops 42 Braganza Street SE17 be confirmed as no longer required for the purposes for which they are currently held, and that the appropriation of the land for planning purposes to facilitate the development proposals for the area in accordance with section 226 of the Town and Country Planning Act 1990 and section 122(1) of the Local Government Act 1972 be approved.
2. That once the land is appropriated for planning purposes under the statutory provisions detailed above, the completed housing stock should be appropriated to the housing revenue account. |
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Canada Water Social Regeneration Charter
To agree the Canada Water Social Regeneration Charter which includes five emerging priorities. Supporting documents: Minutes: Cabinet reaffirmed their commitment to the living wage element of the council plan and its inclusion in this charter.
RESOLVED:
Decisions of the Cabinet:
1. That the Canada Water Social Regeneration Charter [CWSRC] attached as Appendix 1 to the report which includes the following five Canada Water Place Action Plan [CWPAP] emerging priorities be agreed:
· Mental health - outreach and raising awareness · Projects for young people – ‘things to do’, tackling social isolation · Estate programmes – ensuring the impact of regeneration reaches all · Employment and Skills – training, apprenticeships, jobs for local people · Supporting enterprise – capacity building for local traders.
2. That the effective update and review of the Canada Water Social Regeneration Charter and Canada Water Place Action Plan be facilitated.
Decision of the Leader of the Council
3. That that the future reviews and update be delegated to the cabinet member for social regeneration, great estates and new council homes. |
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Capital Letters: Procurement of Accommodation for Homeless Households
To approve Southwark Council’s membership of ‘Capital Letters’, a new company established by a number of London boroughs to procure and manage accommodation for homeless households. Supporting documents: Minutes: The report had not been circulated five clear days in advance of the meeting. The chair agreed to accept the report as urgent as boroughs were required to confirm whether they intend to participate in ‘Capital Letters’ by the end of December 2018.
RESOLVED:
1. That Southwark Council’s membership of ‘Capital Letters’, a new company established by a number of London boroughs to procure and to manage accommodation for homeless households be approved.
2. That it be noted that the company is to be financed at least initially by support grant from the Ministry of Housing, Communities and Local Government (MHCLG) for a period to be confirmed.
3. That it be noted there are two separate levels of membership open to boroughs; ‘A Membership’ or ‘B Membership’ (the difference is explained further in paragraphs 19 – 27 of the report), and that the council’s involvement as an ‘A’ member be approved.
4. That the council’s obligations as an ‘A’ Member be noted as follows:
· To transfer a proportion of the council’s procurement and housing management activities to the company and · To transfer sufficient resources to the company to fulfil these activities. The majority of participating boroughs intend to meet this obligation through the secondment of existing posts.
5. That the formal incorporation by the council into the company be agreed by the strategic director for finance and governance in consultation with the strategic director for housing and modernisation and the cabinet member for housing and modernisation.
6. That the decision on a separate gateway 1 procurement strategy be delegated to the strategic director in consultation with the lead cabinet member. This gateway report would formally authorise the transfer of some procurement activities from the council to ‘Capital Letters’. (This delegation will be subject to a notice of variation to the executive scheme of delegation from the leader).
7. That it be noted that the gateway report will refer to a small proportion of the council’s total procurement activity, at least during the company’s first year of operation.
8. That it be noted that the council’s participation in the scheme is dependent on the secondment of officers from the housing and modernisation department, or the payment of staff in kind, where this is not covered by grant funding and that any decision for officers to undertake a secondment is voluntary.
9. That it be noted that an evaluation report will be presented to cabinet within the first 12 months of operation, giving cabinet the opportunity to consider the council’s continued level of involvement in ‘Capital Letters’. |
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Commercial Property Portfolio: Addition of Income Generating Asset
To note the circumstances leading to the proposed acquisition and approve the acquisition of the freehold interest in the property and all associated costs. Supporting documents: Minutes: The report had not been circulated five clear days in advance of the meeting. The chair agreed to accept the report as urgent as the vendor had stipulated a timeframe that required cabinet approval on 11 December and legal formalities completed by 19 December. Therefore the proposal could not be deferred to the next cabinet meeting. Failure to meet the timeframe would result in the vendor withdrawing from the transaction and the investment opportunity being lost to the council.
RESOLVED:
1. That the circumstances leading to the proposed acquisition of the freehold interests, and actions and investment due diligence being undertaken by officers and their advisors be noted.
2. That the acquisition of the freehold interest in the property and all associated costs be approved.
3. That the fees & costs of approx. 6.8% of the purchase price (professional fees, Stamp Duty Land Tax and VAT) associated with the process leading to completion of the purchase be noted.
4. That authority be delegated to the chief executive, advised by and in consultation with the strategic director of finance and governance and head of property to:
· Complete the purchase of the freehold interest in the asset
· Agree detailed transactional terms pursuant to the Heads of Terms
· Agree the financing structure to be adopted to fund the acquisition of the assets.
(Note: This decision was subject to an urgent implementation request which has been agreed by the chair of the overview and scrutiny committee. The decision will therefore not be subject to the scrutiny call-in process.) |
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Exclusion of the Press and Public That the press and public be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information as defined in category 3 of paragraph 10.4 of the access to information procedure rules of the Southwark Constitution.
The following is a summary of the decisions taken in the closed part of the meeting. |
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Commercial Property Portfolio: Addition of Income Generating Asset
Supporting documents: Minutes: The cabinet considered the closed information relating to this item. Please see item 24 for the decision. |