A MEETING OF THE HOUSING BOARD
WAS HELD ON 16 JANUARY 2002
The Mayor (ex-officio); Chairman of the Policy and Organisation Board (Councillor Edgar) (ex-officio); Councillors Allen (P), Bartlett (Chairman) (P), Mrs Batterbury (P), Mrs Cully (P), Farr (P), Gill (P), Philpott (P), Rigg (P), Smith (P), and Taylor (P)
7. APOLOGY
An apology for inability to attend the meeting was submitted on behalf of Councillor Edgar.
8. MINUTES
RESOLVED: That the Minutes of the meeting of the Board held on 28 November 2001 be approved and signed by the Chairman as a true and correct record.
PART II
9. A NEW HOUSING STRATEGY FOR 2002/05
The Board gave consideration to a report of the Housing Services Manager (a copy of which is inserted in the Minute Book as Appendix "A") in connection with a new Housing Strategy for 2002/05.
The Housing Services Manager reported that the Council had produced a new Housing Strategy for 2002/05, including 22 individual strategies, with the Housing Strategy itself acting as the "over-arching" document.
These documents, taken together, formed the new Housing Strategy submission, which covered the next three financial years. This new production involved a substantial amount of additional effort and commitment. The Housing Strategy Working Group, working in partnership with lead officers in the Housing Services Unit (who were covering the vacant post of Head of Housing Strategy) achieved the production of this comprehensive document, which was submitted by the 31 July 2001 deadline.
This additional effort and the new approach taken in the production and publication of a new Housing Strategy for Gosport had been recognised by the Government Office for the South East (GOSE). Following their comprehensive assessment, Gosport had moved up one place within the housing performance "league table" and was now ranked in 6th place out of 67 housing authorities that made up the South East region.
GOSE had assessed Gosport as follows:
| Service Area |
Assessment |
| Housing |
Above average |
| Capital Strategy |
Good |
| Asset Management Plan |
Good |
This year, Gosport's Single Capital Pot (SCP) allocation was based on an assessment of our housing service performance, Capital Strategy and Asset Management Plan (AMP). A single Basic Credit Approval (BCA) had been made to each Authority for 2002/03. The majority of the "pot" had been allocated on a "needs" basis and the balance allocated by ministerial discretion based on authorities' performance. The quality of the overall submission and the housing performance of the authority had resulted in the award of an additional £175,000 of borrowing approval.
The total for Gosport was:
| Element |
Amount |
Notes |
| Needs based Annual Capital Guideline (ACG) - 95% |
£928,000 |
Of which housing ACG is £831,000 |
| Less RITA'S taken into account |
£325,000 |
Receipts taken into account |
| Balance |
£603,000 |
|
| Plus 5% discretionary element BCA |
£175,000 |
Comprises of: Reward for Housing Strategy (based on share of regional 5% for performance) £75,000 Reward for Asset Management Plan £50,000Reward for Capital Strategy £50,0000 |
| Total Single Capital Pot (SCP) Basic Credit Approval Allocation |
£778,000 |
Based on 95% on General Needs Index (GNI) and 5% discretionary element |
This year GOSE's assessment of the Housing Strategy submission had changed. In previous years, the distribution of Housing Annual Capital Guideline (ACG) resources between regions was based on 50% of the Generalised Needs Index (GNI) and a 50% discretionary element, based on the quality of a Local Authority's Housing Strategy submission. The Government then announced that the GNI would be increased from 50% to 95%, with a discretionary 5% element for the quality of the Housing Strategy submission. Concerned about the negative impact this might have on better performing Local Authorities, the Government introduced transitional measures.
The Government introduced a dampening effect whereby one third of the formulaic allocation for housing was performance related and two thirds based on the GNI. In addition, limits were introduced to contain the largest reductions and increases. The Housing ACG plus the provisional Major Repairs Allowance (MRA) had been limited to ensure that year on year there would be a maximum reduction of 5% and maximum increase of 20%.
RESOLVED: That -
(i) the contents of the Housing Services Manager's report and the additional Single Capital Pot allocation of £175,000, which the Council had received as a reward for the quality of its 2002/03 Housing Strategy, Capital Strategy and Asset Management Plan be noted; and
(ii) the Housing Services Manager and his Team be congratulated for their best efforts in producing the new Housing Strategy.
10. CONTRACTS UPDATE - ELECTRICAL REWIRING
The Housing Services Manager reported that in accordance with the Council's current Contract Standing Orders and Financial Regulations he was obliged to set out the circumstances of the acceptance of a tender for the Electrical Rewiring Contract for the Board's information.
He reported that for the Electrical Rewiring Contract three fixed priced tenders had been opened on 2 November 2001 as follows:
a) £98,025.93
b) £84,152.26
c) £60,144.76
The priced specification of the lowest tender was arithmetically checked and it became apparent that an error had occurred. The tenderer was informed of the error and was not willing to stand by the tender submitted. Therefore the lowest tender had been withdrawn. The priced specification of the second lowest tender, submitted by Walker Electrical Services (UK) Ltd, was arithmetically checked and showed no errors. This tender was accepted following consultation with the Chairman of the Housing Board.
RESOLVED: That the Housing Services Manager's report on the acceptance of the second lowest tender for the Electrical Rewiring Contract be noted.
11. 2002/03 HOUSING REPAIRS PROGRAMME
The Housing Services Manager reported on the proposed 2002/03 Housing Repairs Programme.
He reported that the proposed programme included a standstill budget allocation for day-to-day repairs and void properties, to reflect the trends in expenditure currently being experienced. The information should be regarded as a guide only. Various factors including the actual level of tender prices and the level of expenditure on unplanned repairs may require adjustments to the proposed programme during the course of the year.
The Housing Services Manager concluded that the prime changes to this year's programme were the inclusions of £500,000 for investigations and essential repairs to the Council's "Steane" houses in Bridgemary, and an additional £100,000 to be spent on essential repairs and health and safety works to lifts following an independent evaluation.
The Repairs programme was detailed as follows:
2002/03 REPAIRS PROGRAMME
|
BUDGET HEADING |
BUDGET |
BUDGET |
| |
ALLOCATION 2001/02 |
ALLOCATION 2002/03 |
|
Day to Day Repairs |
£1,215,000 |
£1,240,000 |
|
Void Properties |
£380,000 |
£390,000 |
|
Repairs to Incentive Move Dwellings |
£30,000 |
£30,000 |
|
OAP Decs Scheme |
£30,000 |
£30,000 |
|
Minor Fencing Works |
£20,000 |
£20,000 |
|
Gas Servicing |
£400,000 |
£410,000 |
|
Lift Service & Repairs |
£40,000 |
£140,000 |
|
Door Entry Checks |
£10,000 |
£10,000 |
|
Miscellaneous Multi-Storey |
£25,000 |
£25,000 |
|
Fire Alarm – Sheltered Schemes |
£10,000 |
£10,000 |
|
Environmental improvements |
£35,000 |
£35,000 |
|
Seafield Estate – security & Environmental Improvements |
£50,000 |
£25,000 |
|
Disabled Aids |
£140,000 |
£180,000 |
|
Disabled Aids – Heating |
£70,000 |
£70,000 |
|
Security Provision |
£100,000 |
£70,000 |
|
Painting & Repairs Programme |
£100,000 |
£150,000 |
|
Stock Condition Survey |
£100,000 |
£0 |
|
Sheltered Scheme security & other Improvements |
£150,000 |
£25,000 |
|
Electrical Rewiring |
£86,000 |
£250,000 |
|
New Planned Maintenance Package |
£750,000 |
£600,000 |
|
Central Heating |
£471,000 |
£330,000 |
|
Central Heating c/fd |
£225,000 |
£0 |
|
Window Replacement contract c/fd |
£0 |
£0 |
|
Professional Fees |
£30,000 |
£20,000 |
|
Asbestos Removal |
£20,000 |
£20,000 |
|
Energy Efficiency |
£10,000 |
£10,000 |
|
Tenant Led Improvements |
£150,000 |
£40,000 |
|
Sheltered scheme Heating |
£300,000 |
£300,000 |
|
Parking Enforcement |
£10,000 |
£10,000 |
|
Retentions/Carry Forward |
£100,000 |
£60,000 |
|
Works to multi storey flats |
£350,000 |
£0 |
|
Barclay House Improvements |
£80,000 |
£0 |
|
Conversion of two dwellings |
£50,000 |
£0 |
|
Steane Houses |
£0 |
£500,000 |
|
Fire Protection Works |
£100,000 |
£0 |
|
Total |
£5,637,000 |
£5,000,000 |
| Budget Based on: |
|
|
| Revenue Contributions |
£3,296,000 |
£2,620,000 |
| MRA |
£2,341,000 |
£2,380,000 |
| Total |
£5,637,000 |
£5,000,000 |
RESOLVED: That approval be given to the proposed 2002/03 Housing Repairs Programme, subject to final approval of the Housing Revenue Account Budget.
12. OPTIONS APPRAISAL
The Board gave consideration to a report of the Housing Services Manager (a copy of which is inserted in the Minute Book as Appendix "B") in connection with an appraisal exercise of the investment options available for the future of the Housing Service.
The Housing Services Manager reported that his report had been prepared following an options appraisal process carried out between December 2000 and March 2001. The review was deemed to be necessary to include the more recent information gathered through the stock condition survey undertaken in the autumn of 2001 and to take account of the Government's new "Decent Homes Standard (July 2001)".
To achieve the Decent Homes Standard Policy Statement commitment, the Government had established a specific target to " ensure that all social housing meets set standards of decency by 2010, by reducing the number of households living in social housing that does not meet these standards by a third between 2001 and 2004, with most of the improvements taking place in the most deprived local authority areas." It was reported that 49% of the Council's housing stock was in the Non Decent/Potentially Non Decent categories. The cost of bringing all the Council's stock up to the Decent Homes Standard by 31 March 2010 (in 8 full financial years time) was estimated at £48.9m. A revised examination of the 2001 HRA Business Plan model predicted that the resources available to the Council during the period 2002/03-2009/10 would be £24m. It therefore appeared that the "Status Quo" would not meet the full requirements of the Decent Homes Standard by the target date of 2010.
However, if the 2010 target of 100% of homes meeting the Standard was disregarded and the Council chose to only replace components that had been assessed as actually needing replacement in the next decade (and not for example bringing forward replacement of items deemed "old but serviceable") the following capital expenditure requirements resulted:
· Total capital expenditure requirement until 31.3.2012 = £38.9m
· Total predicted capital resources available until 31.3.2012 = £31m
It was also reported that at this stage the outcome of the Government's consultation on the possibility of developing a Prudential Code of Borrowing was not known and as a result any benefit in maintaining the "Status Quo" could not be quantified. The scale of the investment gap facing the Council over the next decade and the requirements of the Decent Homes Standard led to the conclusion that the Council needed to decide which option was to be explored at some stage within the next twelve months.
The Review process adopted was the same as that which produced the initial Options Appraisal report considered by the Housing Committee in June 2001.
The first appraisal had identified six options for analysis. They were:
(i) Status Quo
(ii) Private Finance Initiative (PFI)
(iii) Arms Length Company
(iv) Trickle Transfer
(v) Partial Transfer
(vi) Whole Stock Transfer
The Working Group, made up of Members, Officers and Tenants, considered this list and deemed that the new information would make little or no difference to two of them, PFI and trickle transfer, and the previous view was considered to remain an accurate assessment of their position. In addition, the Council's Arms Length Management Organisation submission was not successful and as a result, this option would not be available until 2004/5 at the earliest. Given the nature of the Council's investment gap and the requirements of the Decent Homes Standard, the Working Group felt that this was no longer a viable option. The Working Group therefore considered the remaining available options (the "Status Quo", Partial and Whole Stock Transfer). The resulting Options Appraisal report was enclosed as an appendix to the Housing Services Manager's report.
Board members debated the appended Appraisal report prepared by PCA Management Consultants. Members referred to paragraph 6.6 on page 21 of the 23-page document related to the full stock transfer option. It was emphasised that both the Council and the Tenants Forum had concerns about the legitimacy of this statement that all operational staff transfer with the properties. The PCA Management Consultants' representative at the meeting was requested to formally write to the Council and clarify this statement. It was also emphasised that at this time this option was neither the Council's or the Forum's preferred option.
Although the Option Appraisal process and the Stock Condition Survey had provided the Council with a high quality and definitive analysis of the "financial" situation facing the Council over the next decade and beyond, it should be noted that those "reviews" and the requirements of the Decent Homes Standard were based solely on property needs. As a result, they therefore did not necessarily reflect the aspirations of the Council's tenants.
Given that the Council was required on a regular basis to assess the satisfaction of Council tenants with the condition of their home and the service provided by the Council, it was proposed to use this mechanism to seek the views of tenants on their aspirations for the future of their home and housing service. It was therefore recommended that the Housing Services Manager, in consultation with PCA Management Consultants and the contractor who undertook the Council's 2001 Tenant Satisfaction Survey - Market Research UK Ltd, be authorised to design the appropriate survey and undertake this exercise in June 2002. The outcomes from that survey would be presented to the next available meeting of the Housing Board and following the completion of this Council's democratic process, the 2002 edition of the HRA Business Plan would be produced to reflect the Council's preferred investment option.
RESOLVED: That -
(i) the contents of the Housing Services Manager's report and the attached Options Appraisal Report be noted;
(ii) the Housing Services Manager be authorised, in consultation with Group Housing Spokespersons, PCA Management Consultants and Market Research UK Ltd, to design a tenant satisfaction survey that sought the views of tenants on their aspirations for the future of their home and housing service; and
(iii) the Housing Services Manger be authorised to use the assistance of PCA Management Consultants in the production of the 2002/3 HRA Business Plan.
CHAIRMAN
